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SEC warns vs online Ponzi schemes

THE Securities and Exchange Commission (SEC) has warned the public against so-called online “paluwagan” schemes that collect money from investors with the promise of high returns within a short period of time.
In an advisory posted on its website, the country’s corporate regulator listed 30 social media accounts which it described as a Ponzi scheme, or a fraudulent investment operation where old investors are paid off using payments from new investors instead of real cash-generating business activities.
Administrators of the social media accounts were found to follow a scheduled collection of money from their respective members through remittances, wire transfer, and cash deposits, among others. The SEC noted that the social media accounts were also widely used for the promotion and operation of the scheme.
In exchange, members are promised high returns ranging from 10% to 757% in a span of one to ninety days, based on their payout schedule.
“Unfortunately, many of their respective members incurred huge loss of money and the administrators were reportedly unable to refund their investments. In view thereof, the public is hereby advised to stop investing in these kinds of activities and to take necessary precaution in dealing with these groups or their representatives,” the SEC said.
The SEC has continuously been tracking down investment schemes without prior registration with the commission. People found to act as salesmen, brokers, dealers, or agents in such schemes may face fines of up to P5 million, or jailed for a maximum of 21 years, as per the Securities Regulation Code.
People found to be inviting the public to join these illegal investments may also be held criminally liable or be sanctioned in accordance with the law.
In addition, the SEC noted that the names of people involved in illegal investments will be submitted to the Bureau of Internal Revenue for the proper assessment of their penalties and/or taxes. — Arra B. Francia
The social media accounts are as follows:
1. Road To Stockmarket/Dream Builders — Rtsm 2;
2. Steady Money Onpal;
3. G-Funds;
4. Team Amazing Grace;
5. Donatos Team — Gig;
6. Team Donatos;
7. Building Bridge;
8. Gbs New Hope;
9. Gbs Trust Traders;
10. Whilmz Team International;
11. Whilmz International Online Paluwagan;
12. Rosca — Money’s Worth Onpal;
13. Warriors Team Onpal;
14. Team Warriors;
15. Xplosion;
16. Red Packet;
17. Elite Savers Club;
18. Share Ko Profit Ko;
19. Sutm & Boj;
20. Real Team Angel International;
21. Original Team Angels;
22. Return Of The Comeback Team Angels Internationals;
23. Cone Weekly Investment;
24. 2do Marketing Services;
25. Power7 M2g;
26. Onpal Adhoc;
27. Swift Earners Guild;
28. Exclusive Circle Of Earners;
29. Old Tbc; and
30. Lover’s Profit Sharing.

More Filipinos flocked to overseas job markets in 2017 – PSA

How PSEi member stocks performed — April 30, 2018

Here’s a quick glance at how PSEi stocks fared on Monday, April 30, 2018.

Inflation accelerates in Q1 for low-income households — PSA

INFLATION, as experienced by low-income households, accelerated to a three-year high in the first quarter of 2018 on account of higher prices for food and utilities, the Philippine Statistics Authority (PSA) reported yesterday.
Consumer prices for the bottom 30% of households saw inflation rising to 5.3% in the first quarter, up from 3.5% logged in the fourth quarter of 2017 and 2.8% a year earlier. The first-quarter reading was the highest reading since 6.8% posted in the third quarter of 2014.
For all households, the PSA is scheduled to report April inflation data on Friday.
The Consumer Price Index for the bottom 30% income segment reconfigures the model basket of goods to reflect a heavier weighting for food, beverages and tobacco (FBT) index. This and other weightings are thought to more accurately capture the spending patterns of the poor.
“Higher excise taxes on selected sweetened beverages led upward prices of these items in most of the regions. Price gains in kerosene and cigarettes also contributed to the uptrend. On the other hand, lower charges in electricity rates were observed in many regions including NCR (National Capital Region) during the quarter,” the PSA said in a statement.
The fuel, light, and water index led the uptick in prices as inflation in this segment rose 6.1%, which was slower than the 6.3% recorded in the fourth quarter and 6.2% a year earlier.
Meanwhile, the FBT index rose 5.9% in the first quarter from 3.6% in the fourth quarter and 2.8% a year earlier.
The food index increased 5.3% from 3.4% in the fourth quarter and 2.7% a year earlier.
The PSA said rice prices rose 3.1% from 1.3% in the fourth quarter. Also rising were prices for corn (8.5% from 5.5%); cereal preparations (2.1% from 1.7%); dairy products (1.6% from 1.1%); eggs (2.1% from 1.6%); fish (11.5% from 9.4%); fruits and vegetables (6.5% from 3.4%); meat (7.3% from 5.8%); and “miscellaneous foods” (0.60% from minus 0.10%)
Inflation for the bottom 30% segment in the NCR was 5.9%, accelerating from the 4.7% recorded in the fourth quarter of 2017. Those outside the NCR saw a price pickup of 5.3% from 3.4% in the previous quarter.
“The lower 30% were actually previously tax-free or did not necessarily pay taxes because of their meager incomes in the first place. This segment of the population is supposed to be the target of unconditional cash transfers that were rolled out past March,” Ruben Carlo O. Asuncion, chief economist at the Union Bank of the Philippines, said.
Still, the economist noted that “[d]efinitely, they are not at an advantage” with regard to the price upticks seen in necessities such as utilities and food.
“I hope the safety nets work,” he added.
Moving forward, Mr. Asuncion noted that inflationary pressures for the bottom 30% “are starting to slow,” but are still expected to “remain elevated in the next coming months, mirroring overall inflation.” — Jochebed B. Gonzales

DBM hopeful of credit rating upgrade in 2018

THE DEPARTMENT of Budget and Management (DBM) is confident the Philippines can secure a credit rating upgrade within the year, noting this would be favorable for the government’s plan to increase the share of borrowed funds from abroad.
“We are confident that sustaining our fiscal reform agenda, primarily with Tax Reform and Budget Reform, will lead to a credit upgrade within the year,” Budget Secretary Benjamin E. Diokno said in a statement yesterday.
S&P Global Ratings last week raised its outlook on the Philippine economy to “positive” from “stable,” signaling a stronger chance of getting a rating upgrade in the next six months to two years.
The Philippines currently holds a “BBB” rating from S&P, which is a notch above minimum investment grade. The rating has been on a “stable” outlook since April 2015 prior to this revision.
A higher credit rating allows a country to borrow funds from foreign sources at cheaper rates.
S&P said it is watching if the Tax Reform for Acceleration and Inclusion (TRAIN) law will generate lower-than-expected fiscal deficits and if it drives down government debt.
“The encouraging news is especially relevant in the purview of the government’s medium-term financing program,” said Mr. Diokno.
The Development Budget Coordination Committee (DBCC) in its meeting on April 24 raised its revenue program, taking into account Package 1B of TRAIN that consists of separate bills pending in legislation covering the general tax amnesty, estate tax amnesty, the easing of bank secrecy restrictions, and the Motor Vehicle Users Charge increase.
The two tranches of the first package of the tax reform program are expected to yield P124.9 billion this year, growing to P215.8 billion in 2022. This is larger than the P82.3 billion it first expected for 2018 and P153.6 billion for 2022, which only factored in Package 1A, or the lowering of personal income tax rates, while hiking levies for cigarettes, cars, coal, minerals, and sugary drinks, among others.
The Budget Reform bill, meanwhile, seeks to institutionalize the shift to a one-year validity of appropriated funds that would speed up disbursements.
The DBCC also revised the borrowing program this year to a 65-35 mix, in favor of local sources, from the 74-26 ratio earlier set for 2018 and the 80-20 portfolio programmed last year.
From 2019 to 2022, this will be revised to 75-25 ratio.
“The adjustment is owing to the government’s strategy of diversifying its investor base and tapping new markets to meet its financing requirements,” Mr. Diokno said.
“A potential credit upgrade will only maximize the benefits of this revised financing program. The economy stands to benefit greatly as it will potentially translate to lower borrowing rates to finance our priority programs and projects,” the Budget chief added.
However the government’s fiscal position has been beating targets in the first quarter.
The fiscal deficit stood at P162.2 billion in the first quarter, 96% wider than the P83 billion logged in the same period in 2017, although lower than the P219.1 billion expected.
Overall revenue for the January-March period grew 16% to P619.8 billion, beating the P536.7 billion target while total government disbursements surged 27% to P782 billion, surpassing the P755.8 billion goal.
The government programmed a P523.7-billion budget shortfall for 2018 — equivalent to 3% of Philippine gross domestic product — with P2.846 trillion in revenue and P3.37 trillion in expenditure.
“We are only motivated to work harder given the international recognition with our fiscal reform agenda. But we will not stop here as our ultimate aim is to expand economic opportunities and uplift the lives of our constituents,” Mr. Diokno said. — Elijah Joseph C. Tubayan

DAR says ready to process Boracay plots for land reform turnover

THE DEPARTMENT of Agrarian Reform (DAR) said it will begin talks with the Department of Environment and Natural Resources (DENR) on the turnover of agricultural land on Boracay island.
Agrarian Reform Secretary John R. Castriciones told BusinessWorld that both departments will be discussing the turnover at the next interagency meeting on the Boracay rehabilitation.
“As of now, there’s no marching orders yet to subject the agricultural land to a land reform program,” Mr. Castriciones said during the panel discussion.
“But we are anticipating that if the president so orders, we will immediately implement a land reform program on Boracay […] because there is valid and legal grounds for us to implement land reform.”
Once the Palace gives the order, Mr. Castriciones said DAR can award land to beneficiaries within 121 days, which excludes demolition and clearing out by other agencies if necessary.
However, Undersecretary for Policy, Planning and Research David D. Erro said that the DENR needs to formally hand over agricultural land to DAR.
Citing two executive orders, Mr. Erro said that all agricultural land owned by government agencies and unused land should be turned over to DAR for land reform.
“There has to be a positive act coming from DENR to turn over the land for us to place it under agrarian reform,” he added.
“Until DENR transfers the land to us, we have no jurisdiction even if those are agricultural.”
The DAR on Monday said 15.5 hectares (ha) of agricultural land can be immediately processed for land reform after Mr. Castriciones and other DAR officials conducted an inspection last week.
Another 408.51 ha can also be repurposed for farming after government clears out all illegally built structures.
President Rodrigo R. Duterte last month said that he wants Boracay island to be turned over to land reform beneficiaries.
Mr. Erro during the briefing said that by virtue of presidential proclamation 1064, the 628.96 ha. of land in Boracay island is considered as “alienable and disposable,” which can be used for agriculture, while 377.68 ha. has been classified as forest land.
Mr. Erro said proposed farmer beneficiaries are mostly indigenous Atis who used to farm the island before being driven off to make way for development.
Assistant Secretary for field operations Lucius G. Malsi told BusinessWorld that the search for beneficiaries has turned up 48 Ati families composed of 165 individuals.
“Out of 165 [individuals], 70 to 80 were above 15 years old. One way to qualify as a farmer beneficiary is to be at least 15 years old,” he added. — Anna Gabriela A. Mogato

BCDA issues invitation to bid for Clark airport O&M

THE BASES Conversion and Development Authority (BCDA), with the Department of Transportation (DoTr), is inviting bids for the Clark International Airport operations and maintenance (O&M) contract.
BCDA released a project primer yesterday containing general information on the procedures for bidding on the O&M contract.
Bid documents will be available on May 7, and will cost a non-refundable P1 million. The documents will include the Invitation to Bid, the Instruction to Bidders and Annexes, and the O&M Concession Agreement.
In a statement, BCDA said it hopes to award the contract by August.
“Upon award, the O&M Concessionaire will take over the management and operations of the existing passenger terminal, and the new terminal building upon its completion and successful commissioning,” the agency said in a statement.
The BCDA also invited interested parties to a pre-bid conference on May 21.
Clark International Airport in Pampanga is being positioned as an alternative gateway to decongest the Ninoy Aquino International Airport. Clark’s upgraded terminal is expected to be operational by the first half of 2020.
“It’s on track. We have no indications of delay. It’s moving full speed ahead and I think we can even gain more momentum as we move towards the next phases of construction,” BCDA President Vivencio B. Dizon was quoted as saying.
In December, listed company Megawide Construction Corp. and airport operator GMR Infrastructure Ltd. won the engineering, procurement, and construction (EPC) contract for Clark International Airport’s new terminal, and signed a contract with the BCDA in February. — Denise A. Valdez

DTI hopes to recover top 100 ease-of-doing business ranking

THE Department of Trade and Industry (DTI) is hoping to return to its top 100 ranking on the World Bank’s Ease of Doing Business (EDB) list for 2019 after falling 14 places in 2018.
In a briefing at the Board of Investments, DTI Undersecretary for EDB Rowel S. Barba said Monday that a team from the World Bank arrived last week to validate some of the country’s reform programs in preparation for the 2019 EDB ranking.
Mr. Barba said he would be “happy” to recover the 2017 ranking of 99th.
“We hope to improve on the rankings and that the reforms are institutionalized,” he added.
The reforms include adopting automating business-registration transactions and one-stop shops for business permits.
Pending EDB legislation requires all government offices and agencies, including local government units, to reduce processing time for business permits and official documents.
“We’re confident that it will be passed by Congress this year,” Mr. Barba told reporters.
However, he said Congressional approval may miss the next World Bank ranking cycle, which covers the period June 2017 to May 2018.
The EDB bill calls for the reduction of processing time of “simple” transactions to a maximum of three days; “complex” transactions have a seven-day deadline; and “highly-technical” applications 20 days.
Failure to do so will be punished with suspensions of 30 days without pay for a first offense and a three-month suspension without pay for a second offense.
A third offense carries the penalties of dismissal and disqualification from holding public office; forfeiture of civil service eligibility and retirement benefits; and one to six years’ imprisonment.
Mr. Barba noted that the government continues to target a top 20% EDB ranking by the time it steps down.
In the World Bank’s Doing Business 2018 report released in October, the Philippines was 113th among 190 economies, down from 99th in 2017 — although the report noted that changes in method for compiling the list made it impossible to directly compare the two reports. — Janina C. Lim

BIR revised guidelines and procedures in registering new businesses

People today are more geared towards being entrepreneurs. With the availability and accessibility of different online platforms for business opportunities, people can have their own business without having to own or lease a physical storefront. However, many are unaware of the regulatory requirements of starting a business. For those who are aware, they are sometimes too impatient to register their business first before starting their operations, because of the impression that the registration process takes a long time and is very complicated. Hence, many businesses, especially home-based businesses, are not registered with the Bureau of Internal Revenue (BIR).
Over the years, the BIR has sought to simplify and minimize the processing time of registering taxpayers. However, there have been reports that the old procedures and requirements (e.g., lease agreements for self-employed individuals) are still being followed and required by some Revenue District Offices (RDOs), resulting in delays in the issuance of the Certificate of Registration (COR). The inconsistent requirements of the RDOs is causing confusion among the taxpayers. In light of this, the BIR issued Revenue Memorandum Order (RMO) No. 06-2018 on Jan. 18, to improve frontline services and further streamline the process by introducing the implementation of a single-window policy in receiving and releasing documentary requirements for business registration. The single-window policy is implemented by establishing a counter or special lane specifically to accommodate new business registrants.
On April 25, the BIR issued RMO No. 19-2018, which provided revised guidelines and procedures for registering new businesses. Following is a summary of the procedures to be followed by registrants under the said RMO:
1. Prepare requirements provided in the Checklist of Documentary Requirements (CDR) before going to the RDO having jurisdiction over the place of business or residence of the taxpayer.
The CDR attached as Annexes A1 to A3 of RMO No. 19-2018 is the same as the requirements provided under Revenue Memorandum Circular No. 137-2016, with the following amendments:
a. Adding of Special Power of Attorney (SPA) and ID of authorized person, in case of authorized representatives who will transact with the Bureau (for individuals and international organizations);
b. Adding of Board Resolution indicating the name of the authorized representative and Secretary’s Certificate, in case of authorized representative who will transact with the Bureau (for non-individuals); and
c. Removal of new sets of permanently bound books of account.
2. Secure a queuing number for the New Business Registrants Counter (NBRC).
3. Submit duplicate copies of the following, together with the complete documentary requirements per CDR:
a. Signed CDR;
b. Filled out Application for Registration (BIR Form No. 1901/1903, whichever is applicable), and;
c. Accomplished BIR Form 0605 for payment of registration fee.
4. In case the taxpayer has an existing TIN, but is not registered with the RDO, the taxpayer shall apply for a transfer of registration by accomplishing BIR Form No. 1905.
5. Once called for payment, pay the registration fee and/or other tax liabilities or penalties on registration to the NBRC or New Business Registrant Officer.
Registrants with existing TIN have the option to pay the registration fee before going to the BIR through any of the following payment channels by accomplishing the BIR Form 0605 under ATC-RF:
a. Authorized Agent Banks (AABs);
b. ePayment channels of AABs; and
c. Mobile payment through GCash.
6. Claim the Certificate of Registration (COR), auto-approved Authority to Print (ATP), and “Ask for Receipt” Notice from the NBRC upon approval together with the eReceipt as proof of payment of the Registration Fee and/or other tax liabilities or penalties.
After securing these documents, new business registrants may proceed with the registration of books of account within 30 calendar days from date of registration.
7. Sign the log sheet provided to confirm receipt of the COR and ATP.
8. Accomplish the Standard Taxpayer Feedback System, and drop at the designated drop box.
9. Attend the scheduled taxpayer’s initial briefing to be conducted by the concerned RDO for new business registrants in order to know their rights, duties/responsibilities, and tax compliance.
RMO No. 19-2018 also enumerated the various officers assigned and their corresponding duties and responsibilities in implementing the Single Window registration processes.
Two main goals of RMO No. 19-2018 are to make the registration process more convenient and to improve taxpayer satisfaction. With these goals in mind, we hope that taxpayers can expect an efficient and consistent implementation of the above-mentioned RMOs throughout all RDOs. This will encourage more taxpayers to register, which will benefit both the BIR and taxpayers. For the BIR, more business registrants mean more revenue collection. For taxpayers, it will open more business opportunities, since many companies only transact with legal businesses that issue BIR-approved official receipts/invoices for purposes of claiming input tax and expenses.
Despite process improvements, it is still not going be a walk in the park with the many requirements, especially for first time registrants. Hence, seeking professional help in setting up their business may be a good investment.
 
Juvy de Jesus is a senior of the Tax Advisory and Compliance of P&A Grant Thornton. P&A Grant Thornton is one of the leading audit, tax, advisory, and outsourcing services firms in the Philippines.

How about Labor Day on a different date?

Today is Labor Day in the Philippines as it is in many countries. Labor Day is synonymous with, or linked with International Workers’ Day, which occurs on May 1. The date was chosen to commemorate the 1886 Haymarket Affair in Chicago. A general strike for the eight-hour workday began on May 1 that year.
Three days later, the police were dispersing the crowd supporting the strike when someone lobbed a bomb at the police. The police responded by firing on the workers, resulting in the death and wounding of a large number of police and civilians. A similar incident took place in Milwaukee the following day.
In 1889, a congress of labor leaders from various countries held a meeting in Paris to call for international demonstrations on the anniversary of the Chicago protests. In 1904, the International Socialist Congress held in Amsterdam called on “all Social Democratic Party” organizations and trade unions of all countries to demonstrate vigorously on the First of May for the legal establishment of the 8-hour day, for the class demands of the proletariat, and for universal peace. The congress made it “mandatory upon the workers’ organizations of all countries to stop work on May 1. Eventually, it was decided to formally recognize May 1 or May Day as an annual public holiday in countries affiliated with International Workers.
In other countries, Labor Day is celebrated on a different date, often one with special significance for the labor movement in that country. In Canada, Labor Day has been celebrated on the first Monday of September since the 1880s. This tradition can be traced back to December 1872 when a parade was staged in support of the Toronto Typographical Union’s strike for a 58-hour work-week.
In the Bahamas, the traditional date of Labor Day is June 7, in commemoration of a significant workers’ strike that began on that day in 1942. However, Labor Day is celebrated in the Bahamas on the first Friday in June in order to create a long weekend for workers.
In Jamaica, Labor Day has been celebrated since 1961 on May 23, in commemoration of a labor rebellion that began on May 23, 1938 and that led to the independence of Jamaica from the British Empire.
Labor Day in Australia is a public holiday on dates which vary between states and territories. It is the first Monday in October in some states, the first Monday in May in others. Labor Day is celebrated on different days in March — the first, second, and fourth Mondays — by still other states and territories.
In the United States, Labor Day is on the first Monday of September, marking the end of the summer season and the students’ return to school.
Most countries celebrate Labor Day with assemblies where the leaders voice the labor sectors’ demands for supportive legislation and policies from government and their pleas for higher wages and better working conditions from private enterprises. In the United States the typical activities include parades, fireworks display, and big sports events.
In communist countries such as the People’s Republic of China, North Korea, and the former member countries of the Soviet Union, May Day celebrations feature grand parades complete with awesome display of military might, with the top leaders of the country in attendance.
In the Philippines, Labor Day activities do not differ much from those in other countries. Labor union members assemble in large plazas, the union members delivering speeches that clamor for higher wages, more fringe benefits, and better working conditions. Non-union members simply take a break from work, either resting at home or spending the day in fun places.
May 1 in the Western world is spring time. Temperature ranges from 10 degrees Celsius to 20 degrees Celsius. But May 1 in the Philippines is almost always a hot day, temperature usually around 36 degrees, making it unpleasant both for passionate rallies and for simple marches and peaceful assemblies.
Perhaps a change in the date of Labor Day is in order.
After all, Labor Day being observed on May 1 can be traced back to an event that occurred in a distant place in the distant past. The event has no significance to the labor sector in the country.
A significant day for labor in the Philippines is June 17. On June 17, 1953, president Elpidio Quirino signed the Magna Carta of Labor. As president Quirino said: it “was designed to secure industrial peace in the country, defining the rights, duties, and obligations, as well as privileges of both the laborers and management.” But June 17 is five days after June 12, a national holiday to celebrate Independence Day.
Another significant date for Labor Day is Jan. 20.
On Jan. 20, 1872 an incident similar to an incident in Jamaica that led to its independence took place in Cavite. On that day, about 200 soldiers and workers in Fort San Felipe in the port town (now known as Cavite City) of Cavite Province staged a mutiny when they received their pay and realized the personal taxes, from which they had been previously exempt, as well as the falla, the fine one paid to be exempt from forced labor, had been deducted from their salaries. The taxes required them to pay a monetary sum as well as to perform forced labor.
The rebel soldiers and their allied workers believed that their uprising would incite Filipino nationalists into joining them and spur the growing nationalist movement into a national revolution. However, no other group joined the rebel soldiers. The Spanish forces in the fort routed them quickly.
Many of the participants in the failed mutiny were executed. Nationalist Filipinos, suspected of instigating the uprising, were rounded up. Some were exiled, others executed. Among them were Filipino secular priests Mariano Gomez, Jose Burgos, and Jacinto Zamora.
While the mutiny itself failed to incite a revolution, the execution of the three priests and a number of nationalist movement leaders, none of whom had anything to do with the mutiny, drove many Filipinos to turn against the Spanish colonial government. The hostile sentiment intensified into belligerent Filipino nationalism and culminated in the Philippine Revolution of 1896.
If Jan. 20 is too close to other national holidays — Jan. 1 or New Year’s Day and Feb. 25, anniversary of the EDSA Revolution — another date that has some significance to the labor sector in the Philippines is Oct. 26.
In the 1930s, farmers in Central Luzon frequently came to bloody encounters with the hacienderos.
Although born to a wealthy family in San Fernando, Pampanga, Pedro Abad Santos, a physician and lawyer (he topped the board exams for both professions) espoused land reform and protection of the toiling masses from landlord abuses. On Oct. 26, he founded the Socialist Party of the Philippines. He was the eldest brother of chief justice Jose Abad Santos, designated acting president of the Philippines before president Manuel L. Quezon went into exile.
But most non-union affiliated workers, and they constitute the great majority of the work force, do not like to be associated with socialism or socialist groups. They may not entirely accept Oct. 26 as an appropriate day to celebrate Labor Day.
Then maybe Dec. 31 would be a suitable day for Labor Day. After all, it is always declared a national holiday for no reason other than its falling between two holidays, Dec. 30 or Rizal Day, and Jan. 1, New Year’s Day. It would be appropriate to call it Labor Day and consider it a holiday as it marks the end of a full year of labor.
 
Oscar P. Lagman, Jr. is a member of Manindigan! a cause-oriented group of businessmen, professionals, and academics.
oplagman@yahoo.com

Memories of UP ‘masa’ dorm

Yakal is a dorm in UP Diliman. It was a “masa” [for the masses] dorm as it had double-deck beds good for four. It was known for the bed bugs that inhabited the mattresses. Bathrooms were common.
Yakal hosted many interesting, and later well-known personalities. It was a microcosm of Philippine society in the late 1960s to early ’70s. Those were years of activism, of Diliman commune, and Marcos regime. It was the time when the Philippine history textbook was Agoncillos’s book.
At Yakal, the opposing ideological factions treated each other civilly, or often just ignored one another. There were teach-ins from Kabataang Makabayan and related leftist groups. There were also fraternities and “tribal” groups galore: Beta Epsilon, Beta Sigma, Epsilon Chi, Sigma Rho, Upsilon Sigma Phi, Knights of Palaris of Pangalatoks, Hamili of Ilonggos, and Filipinos of the Bisayans.
Residents were diverse. They came from the north (Cagayan, Ilocos Norte, Nueva Ecija, and Pangasinan) to the south (Agusan, Cotabato, Davao and Sulu). Many were products of public high schools.
From my recollection, here are some.
Jose “Pepe” Perez from Batangas, retired Supreme Court justice. He had the loudest laugh in the territory.
Fortunato de la Peña, president Duterte’s secretary of the Department of Science and Technology, and a UP engineer.
Francisco Viray of Pangasinan, former dean of the UP College of Engineering, and president Ramos’s secretary of Energy, 1994-1998. His room was beside mine.
Franklin Drilon, current senator and past Senate president and past secretary of three departments under Corazon Aquino and Fidel Ramos (Executive, Justice, and Labor and Employment).
Ericson Baculinao, chairman of the UP Student Council, martial law exile to China, and NBC Beijing Bureau Chief.
Nelson Navarro, editor of the Philippine Collegian, martial law exile, and, of late, Juan Ponce Enrile’s biographer.
Mukhtar Muallam, ambassador to Libya.
Rafael Baylosis, political science, cum laude, when Latin honors were very scarce. He later became secretary-general of the Communist Party of the Philippines.
Melito Glor of Sariaya, Quezon and my roommate for one summer, whose name is immortalized in the Quezon NPA command.
Lawyers. Alfonso Reyno, Jr., CEO of Manila Jockey Club; Luis “Chito” Veracruz, counsel of ACCRA Law; Rafael Morales, managing partner of his law firm and UP law class of ’74 valedictorian; Paraja Hayudini, partner of his law firm, and Dave Simon, assistant GM, Philippine Ports Authority.
Doctors: Eduardo Firmalo, Romblon governor; Copernico Villaruel, Philippine General Hospital orthopedic surgeon; Luisito Maano, former head of National Orthopedic Hospital; Gene Abis, a well-known eye specialist; and Jesus Baylon, former top executive of United Laboratories.
Engineers. Edgardo Paynor, CEO of Telmarc Cable; Antonio Ng, former CEO of Clark Development Corp. and managing director of Amkor Technology Philippines; Epifanio Lopez, UP engineering professor; Cesar Iñiguez, international water resources consultant; Lawrence Tumaneng, metallurgy/mining consultant; Alberto Selorio, Australia-based logistics manager; Cesar Monzon, LA-based engineer, Carlos Tiongco, retired from General Motors Michigan; Jun Papelleras of the University of Asia and the Pacific; Catalino Corpuz, community organizer; and Jose Albano, San Francisco-based; Victor Jaranilla; Tony Tañada, the Cimagala brothers; and Pete, my New Jersey-based brother.
Bankers. Edgardo Lorenzo and Samuel Basiao.
Luis Fullante, a working student, completed PhD in English at University of California, Los Angeles; Toronto-based Efren Marcos; and Davao activist Ray Quitain.
Jobs were easy to find then after graduation. I joined the government’s Metal Industry Development Center. I commuted to Taguig City via Highway 54 (now EDSA). Many overstayed at Yakal dorm as it was really cheap. When we were asked to leave, we moved to an apartment in UP Village.
When martial law was declared in September 1972, there was a lot of uneasiness on the campus. Military intelligence agents were all over, some taking graduate studies at UP. The left lost hope in a democratic struggle. By then, Marcos was ready to unfold his long-term ascendancy.
Those were the halcyon days of the ’60s, but later disturbed days of the early ’70s.
Parenthetically, China was ruled by the Gang of Four during the so-called Cultural Revolution in 1966-1976. The Cultural Revolution crippled the economy, ruined millions of lives and thrust China into 10 years of turmoil, bloodshed, hunger and stagnation. The Cultural Revolution’s official handbook was the Little Red Book, a pocket-sized collection of quotations from Mao Zedong. It was not until 1978 that Deng Xiaopeng launched a wide-ranging market reforms that led to a rapid 40-year economic growth and lifted hundreds of millions out of poverty.
The left was idealistic then. Perhaps, many students were naïve about how difficult it was to change society. Maybe, they did not realize that ASEAN neighbors — Indonesia, Malaysia, Thailand and Singapore — were moving in the right direction without revolution.
But since they were hunted down for their ideas, many went underground and joined the NPA. Many were killed. One was friend Antonio Tagamolila.
Times have changed. Contrast this idealism with the extortion and burning of agriculture assets by the NPA fronts today. They have discouraged investments in the countryside. Some 800 workers lost their jobs with the burning of Lapanday plant and Macondray plastics plant in Davao last year. Recently, a small aircraft pilot was killed in Tagbina, Surigao del Sur. He was only doing his job: spraying fungicides over banana farms.
I wonder whether my generation (those who graduated in the late ’60s and early ’70s), whether left, right, or center, made a difference in the country’s development in reducing the high poverty and income inequality. Philippine poverty incidence at 21.6% is very high and several multiples that of Indonesia (10.9%), Thailand (10.5%), Vietnam (7%) and Malaysia (0.6%). It’s nothing to be proud of.
Or whether they just went with the tide as family concerns overrode past idealism or absorbed by the “system.”
This article reflects the personal opinion of the author and does not reflect the official stand of the Management Association of the Philippines or the MAP.
 
Rolando T. Dy is the Vice Chair of the M.A.P. AgriBusiness and Countryside Development Committee, and the Executive Director of the Center for Food and AgriBusiness of the University of Asia & the Pacific.
map@map.org.ph
rdyster@gmail.com
http://map.org.ph

No more ‘business as usual’ for electricity in the Philippines

By Eddie O’ Connor
AS the economy in the Philippines continues to grow, energy demand races ahead. Recent analysis by the Asia Development Bank and the International Renewable Energy Agency (IRENA) suggests that energy consumption will grow by 40% by 2025, with an 85% increase in energy demand for electricity.
The question for the Philippines is how to deliver these very large amounts of new electricity without exposing the country to increased energy insecurity and environmental pollution. On a “business as usual” track, where coal remains the dominant fuel in the country’s electricity mix, the Philippines will become a net importer of energy over the coming decade. At the same time, the impacts of pollution, driven by this fossil fuel use, continue to grow. External costs, including health care, will rise inexorably, amounting to some $225 billion across the ASEAN region by 2025.
Thankfully, the Philippines has an alternative pathway which will enable it to meet its growing energy demand while increasing energy security and reducing the costs of, and exposure to, pollution. This pathway also sees a reduction in the cost of energy, as coal and gas are replaced by less expensive alternatives, which can also be brought onto the grid faster and deliver electricity with reliability and in meaningful amounts.
Renewable energy is already cheaper than new coal fired generation and it is quicker to install. In markets around the world, new solar and new wind energy is beating coal in auctions for new capacity.
As the costs of these technologies continue to fall, the cost of coal remains stubbornly high, even without factoring in the price of pollution and security of supply.
Both wind and solar power plants can be built in a year to eighteen months, irrespective of the size of the unit. This is in contrast to building a new coal fired power station, which can take the better part of five years.
In short, coal is neither a quick nor cheap solution to the Philippines’ ongoing demand for energy. The country has plentiful supplies of renewable energy and God doesn’t charge for sunlight or wind.
The energy industry is a major employer, and renewable energy is expected to deliver very significant numbers of new jobs over the next decade. IRENA estimates that the region could sustain a 9.5% employment growth rate in renewable energy. Many of these jobs will come in the design and manufacturing of renewable energy components, as well as in the development, construction, and operation of the plant.
If the Philippines sets out an ambitious medium-term strategy for wind and solar energy, it will like Morocco, South Africa, and Brazil attract the design, manufacturing, and servicing operations to support these growing industries. Wind turbine towers and blades, along with power electronics and operations monitoring work could all be attracted to the Philippines if it set its target to become the regional hub for Southeast Asia, as well as servicing its own demand.
The Philippines has built a global position in the business services and outsourcing sectors in a comparatively short space of time.
By investing in renewable energy, the country also has the opportunity to do the same again by developing the energy systems of the future, which will use smart technology to run the power plant, grids, and transport needs of tomorrow.
While this prize awaits the Philippines, it is clear that the alternative — coal — will not deliver such economic opportunities. The components and the fuel for any new coal fired power stations will come from overseas, bringing energy insecurity and exposure to price volatility along with pollution and greenhouse gases. Coal will not deliver an energy system of the future for the Philippines, just business as usual.
The Philippines has set out its ambitions in its 2030 National Road map.
But, a road map can only describe a destination.
If the country is to truly steal a march on its competitors and unleash the nation’s renewable energy potential, it needs to significantly increase the amount of renewable energy capacity to be procured by local utilities under the new Portfolio Standard. If this doesn’t happen, and we take an incremental approach, then the country will continue to be exposed to fossil fuel price risk, the growing costs of environmental pollution and the prospect of its neighbors grabbing the clean energy investment and jobs that would otherwise come here.
This is a moment for action; business as usual, or a new pathway to growth and economic development powered by our own resources. It’s not a difficult choice to make.
 
Eddie O’ Connor is the executive chairman of Mainstream Renewable Power, an independent developer of utility-scale wind and solar power plants.

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