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PLDT to appeal DoLE order to regularize workers

PLDT, Inc. on Wednesday said it will appeal anew the Department of Labor and Employment’s (DoLE) order for the telecommunications giant to provide regular employment to around 7,000 contractual workers.

In a statement, PLDT said it has received its copy of the Jan. 10 Resolution issued by Labor Secretary Silvestre H. Bello III, which rejected the company’s appeal of a July 3, 2017 order to regularize employees and settle their unpaid benefits.

PLDT said it will file a motion for reconsideration within the 10-day prescribed period.

“The Resolution reduces (a) the number of workers ordered to be regularized by PLDT to 7,416 (from 8,720 previously); and (b) the monetary liability of PLDT and its contractors to P66.3 million (from P78.2 million),” the company said.

However, PLDT noted the resolution failed to address the  “fundamental jurisdictional and due process issues raised by PLDT and 41 of its contractors in their Appeals to the Office of the Secretary.”

In its July 2017 order, the DoLE ordered PLDT regularize employees of 17 companies found to be engaged in labor-only contracting. These companies included SPi CRM, Inc., Activeone Health, Inc., Archon Consulting and System Services, Inc., and Hibizcom Corp.

The DoLE order also asserted that PLDT and 48 of its contractors did not fully pay monetary benefits to some workers totaling around P78.6 million, and noted PLDT violated DoLE Order no. 18-A on contracting-out, which means the telco giant should issue regular employment positions to around 8,720 contractual workers.

In its appeal, PLDT questioned what it says was an absence of evidence and the use of “template findings” by the DoLE for these conclusions; DoLE’s disregard of PLDT’s and its contractors’ evidence; and “erroneous computation” of the P78.6-million monetary award; and DoLE’s “violation of PLDT’s and its contractors’ due process rights.”

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a stake in BusinessWorld through the Philippine Star Group, which it controls. — Patrizia Paola C. Marcelo

Disgruntled Cavs

The news that the Cavaliers are disgruntled comes as no surprise. The news that not a single one of them wants to go on record to say they’re disgruntled also comes as no surprise. In each of the last seasons, the wine and gold have faced adversity. And in each of the last seasons, they’ve gone on to secure Finals berths, even coming up a championship via the biggest come-from-behind campaign in National Basketball Association history. So to publicly argue that they’re not as confident in their capacity to hurdle obstacles this season is tantamount to admitting their Hyde side is winning, and perhaps for good.

Confidence can be fleeting. Through a long, arduous regular season, any team not named the Warriors will have ups and downs, and the key to success is to understand that the forest is more important than the trees — and to therefore not be too high after wins and not too low after losses. Since James came back to the fold in 2014, the Cavaliers have learned to digest this fact. It’s why they managed to run roughshod over the rest of the East, and why, their underdog status notwithstanding, they’ve put up respectable stands with the Larry O’Brien Trophy on the line.

This year, though, the Cavaliers are hard-pressed to stay the course. A roster overhaul has negatively affected their competitiveness on the court and camaraderie off it. Established glue guys are gone, and in their place come new faces who admittedly bring unique sets of pluses, but who nonetheless need time to adjust. A pronounced predilection for experience over youth and injuries to key players haven’t helped. In the face of such upheaval, the current swoon has resulted in burdened bodies, overactive minds, and frayed emotions.

Still, the Cavaliers know they’ve got a trump card. Through all the tumult, LeBron James has been their one most important constant. It’s why their fingers are crossed they can once again right the ship. And it’s why they will not let their doubts permeate beyond off-the-record whispers in back rooms. Because to do so would be to cast aspersions on his capacity to lead. Because to do so would be to give up.

Make no mistake. The Cavaliers know their problems are real. The win streak that raised their profile was built through pronounced dogfights against supposed easy pickings. Meanwhile, they’re now being blown off stadiums by the very opponents they’re slated to see in the playoffs. Which has led them to be afraid, to be very afraid, of their immediate future. They still have time to change, but, given the way they’re thinking, they can easily get worse as get better.

 

Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994. He is the Senior Vice-President and General Manager of Basic Energy Corp.

The Titanic and underwater wine aging

WHEN CHAMPAGNE from the infamous sunken Titanic was recovered in 1985 — 73 years after the luxury ship went down on April 15, 1912 in the North Atlantic Ocean — wine enthusiasts and professionals were all excited to see how the wines survived.

The Royal Mail Ship (RMS) Titanic was the British luxury passenger liner that sank during its maiden voyage en route to New York City from Southampton, England, killing about 1,500 passengers and crew members. The Titanic is perhaps better known among our generation because of James Cameron’s disaster movie, the Oscar-winning box-office hit that catapulted the then relatively unknown actors Leonardo DiCaprio and Kate Winslet into Hollywood stardom.

THE 1907 AND THE 170+-YEAR-OLD VEUVE CLIQUOT CHAMPAGNES
The champagnes that were said to have been recovered in good shape from the shipwreck were the 1907 Heidsieck Gout Americain (or “American Taste,” a phrase used at that time to mean that it was a much sweeter version) champagnes. No published report had stated how many good bottles were recovered, but in 2004, six bottles of this batch were rumored to have been sold to a rich Asian collector for an undisclosed and presumably sinful amount. The secret of these champagnes’ drinkability would have been lost forever, but by coincidence, the same 1907 Hiedsieck champagnes were discovered and recovered from another sunken ship in 1998. The Swedish vessel Jonkoping, shipwrecked in 1916, carried a few thousand bottles of the same champagne, of which some hundred were retrieved by divers. These are from the very same champagne lot I saw being sold at the Atlas Bar in Singapore for a whopping S$190,700 (P7.6 million) per bottle, and which are also said to be available in other glitzy places like the Ritz-Carlton Hotel in Moscow for $275,000 (P13.75 million).

The ridiculous price tag is obviously because of its rarity and historic value, but these champagnes, when opened and tasted by wine experts, were astoundingly not only drinkable, but very much alive, and — incredibly — still have the fizz inside, but with more complex flavors, developed presumably from its underwater aging.

In 2010, as reported by National Geographic magazine, divers found some 168 bottles (another source said 79 bottles) of 19th century Champagne in a ship which had sunk to a depth of over 50 meters deep in the Baltic Sea. Markings visible on the corks showed that these Champagnes were produced by Champagne houses Veuve Clicquot Ponsardin, Heidsieck, and Juglar (already shut down in 1830s).

Not long after this discovery, Dominique Demarville, cellar master for Veuve Clicquot, was able to get his hands on some of their very old 19th century-made Champagnes. And trusting his impeccable knowledge of Champagnes and their Cliquot house style, and having read his comments that these 170-year-old Champagnes were still “sweet and fresh” made a convincing case that perhaps there is indeed aging potential underwater, not only for champagnes, but for still wines too.

True enough, Veuve Cliquot started experimenting with what it calls “Cellar in the Sea,” submerging 300 regular 750-ml. bottles and 50 magnums into the same Baltic Sea in 2016. This move was both symbolic of the 2010 discovery of its old vintage from the same site, but also for experimentation on the potential of underwater aging. Wine experts believe in the theory that consistent low temperature of below 5°C, constant pressure, and dark surroundings constitute near perfect conditions for wines to evolve slowly. Veuve Clicquot Ponsardin plans to monitor the underwater aging of these newly submerged wines for the next 40 years.

FAD OR NEW METHOD?
Champagnes were not the only bottles recovered from the many shipwrecks that happened throughout history — several still wines have been discovered too, but many were of less significance in terms of how old the recovered wines were, and from divers simply not reporting their underwater loot.

Veuve Clicquot Ponsardin was not the first winery to try this underwater aging (Raul Perez from the Rias Baixas DO in Spain may be the first winery to have done so in 2003, using wines made from the Albarino grapes), but they certainly were the most visible adopter such that it may push this small trend into a wider scale. Already a handful of wineries, small and medium sized ones, have been experimenting with this aging method and all were perhaps inspired by the Titanic discovery.

One of the most aggressive wineries to try underwater aging is Napa Valley’s Mira Winery. It is credited with being the first to use the term “aquaoir” — a portmanteau created from aqua (water) and the French viticultural term terroir. Aquaoir means the aging condition of the submerged wine and the ensuing effects of underwater temperature, depth, pressure, light or lack of it, stability, motion, etc. that come in this form of aging wine. The same Napa Valley Cabernet Sauvignon that is land-aged in a regular cellar is sold at $55 a bottle, while the underwater aged version (submerged for three months in Charleston Harbor in South Carolina), if available, is being sold for 10 times more or over $500. The press releases from a 2013 blind tasting of two Mira Cabernet Sauvignon 2009 vintage wines — comparing the underwater aged wine against the all-ground aged version — showed that the underwater aged wine seemed to have accelerated its evolution by around two extra years, making the wine more approachable than the all-ground cellared counterpart. Whether this was gimmickry or a real discovery of a new aging method, the higher price seemed justified.

Other than the perceived improvement in wine taste, the underwater aged wine’s price is quite hefty for a few other reasons — consider the labor intensive nature of dunking the wines (one has to hire professional divers), the correct use of metal cages and partitions and other equipment, and, of course, the huge risk and potential for losses due to salt water contamination and other foreseen and unforeseen damages. After all, we are still in the very early stage of studying the so-called aquaoir.

So many questions still need to be answered about underwater cellaring, like: If Mira wines accelerated with underwater cellaring, how could the Champagnes recovered from the shipwrecks survive for over a century? Do these two findings not contradict each other? Therefore, is underwater aging more for wine evolution or for wine preservation? So many unknowns still need answers.

Aside from the underwater cellaring done in France, Spain, and the US, it has also been done in Italy, Greece, and Croatia. Regulations — which really do not exist for this aging method — may also come in as political, social, and environmental groups may also soon be dipping their fingers into this subject. Will underwater aging become a norm? Only time can tell.

First I need to get my hands on some of these underwater-aged wines and taste them for myself. But on the theory alone, I am extremely tempted to do my own underwater cellaring with some of my younger wine collections. Perhaps in nearby Taal Lake where depths can reach 150 meters and be ideal for the positive effect of aquaoir. Retrieving these wines though may be another challenge…..

 

The author has been a member of the Federation Internationale des Journalists et Ecrivains du Vin et des Spiritueux or FIJEV since 2010. For comments, inquiries, wine event coverage, and other wine-related concerns, e-mail the author at protegeinc@yahoo.com. He is also on Twitter at twitter.com/sherwinlao.

Big push for halal products in Gulf states

THE Export Marketing Bureau (EMB) of the Department of Trade and Industry (DTI) will be developing more halal food products for export to markets like the Middle East.

Trade and Investments Promotion Group (TIPG) Assistant Secretary Abdulgani Macatoman told BusinessWorld that the country’s top halal export is processed tropical fruits to markets like Malaysia, Indonesia and Brunei — which along with the Philippines are members of the East ASEAN Growth Area (BIMP-EAGA).

Some exports also find their way to the Middle East.

The DTI is expecting halal exports of P1 billion this year, compared with P800 million in 2017.

“[Right now], we are developing pili nuts, desiccated coconut [for export] in the Gulf countries, the oil-rich countries in the Middle East. Those are who were targeting,” he added.

“[We’ll also do] halal textiles and fashion, like hijabs and leather goods.”

The DTI, which leads the Philippine Halal Board, has also set up the 100-hectare Asian Halal Center in Zamboanga City to further promote halal certification and trade.

Within BIMP-EAGA, the Philippine halal market has room to grow, Trade Secretary Ramon M. Lopez said.

“[Our halal market] is not that small and it’s not that big either but we’re developing it,” Mr. Macatoman said. — Anna Gabriela A. Mogato

InstaPay platform rollout seen within next quarter

THE PUSH for electronic payments is expected to accelerate this year after industry players formalized arrangements with the Bangko Sentral ng Pilipinas (BSP), while work is under way for a new clearing house for real-time fund transfers.

BSP Governor Nestor A. Espenilla, Jr. said that banks and financial technology (fintech) players are working to roll out the InstaPay platform within the second quarter, which would be dedicated to processing real-time and small-value transactions across banks and e-money wallets.

The central bank targeted a first-quarter rollout for InstaPay, but this had to be pushed back amid technical issues that needed to be smoothed out for interbank transactions.

“We’re putting out a lot of our moral suasion and our prestige to get people who don’t normally want to talk each other because they are mortal rivals in the market,” Mr. Espenilla told reporters in a recent ambush interview.

“You (players) can cooperate in the clearing and settlement, but in the products space you can do your own thing — that’s the dialogue we are having.”

The InstaPay will clear electronic fund transfers (EFT) across banks and e-wallets in real time, focusing on low-value transactions worth below P50,000.

This would be the second automated clearing house after the Philippine EFT System and Operations Network (PESONet) was rolled out in November, which will process fund transfers in batches.

Meanwhile, the central bank announced that the BSP has entered into an agreement with the Philippine Payments Management, Inc. (PPMI) to serve as the industry-led body to facilitate clearing operations for digital payments.

The central bank signed a deal last Friday to recognize PPMI as the payment system management body for automated clearing houses, while the BSP will serve as the “primary overseer” of the platforms.

“The BSP and PPMI agreed to have a shared responsibility in monitoring new or emerging trends in the retail payment industry and to notify each other of any relevant information that would warrant appropriate action from either party,” the central bank said in a statement sent yesterday.

The deal also requires all financial firms to undertake “direct clearing activities” via the automated clearing houses under the PPMI’s watch, which will facilitate interbank payments and fund transfers.

All these efforts fall under the National Retail Payment System (NRPS) led by the central bank, with the goal of shifting cash-heavy transactions on to digital avenues.

The BSP targets to lift the share of digital payments to 20% of total transactions by 2020, coming from a measly 1% recorded in 2013. — Melissa Luz T. Lopez

Harbour Center sets aside P700-M capex for 2018

HARBOUR Centre Port Terminal, Inc. (HCPTI) said it is initially allocating P700 million as capital expenditures this year, mostly for facilities and information technology upgrade.

In a statement, HCPTI said the 2018 capex will be internally funded.

The port operator was on track to see a 16% increase in gross revenues in 2017, after seeing a 7% jump in vessel throughput and a 3% rise in cargo volume.

HCPTI Chairman Reghis M. Romero II was quoted as saying this would bring its total domestic and foreign cargo volume to 6.5 million metric tons by end-2017.

Mr. Romero attributed the strong growth to HCPTI’s “sound operating efficiencies and fiscal management, making the employees perform well to increase volume completion while reducing vessel turnaround time.”

“Driving HCPTI’s much-improved operating systems are strict adherence to global standards in all management aspects, real-time cargo and documentation processing and monitoring, compliance with government-enforced international security protocols, and a continuing equipment refleeting program,” he said.

As part of HCPTI’s refleeting program, the company last year acquired seven 15-tonner forklift to boost cargo-handling capacity.

HCPTI holds a 65% stake in the Manila North Harbor Port, Inc. (MNHPI). MNHPI signed the 25-year contract to operate, manage and maintain the North Harbor in November 2009.

Subway, road loan deals signed with Japan this month

THE PHILIPPINE and Japanese governments will sign this month a loan agreement for the first phase of the Metro Manila Subway and the Plaridel Bypass Road, the Department of Finance (DoF) said in a statement.

 “The contract for the first tranche of the 104.5 billion yen or about $929.1 million loan for the first phase of the subway project and the 9.399 billion yen or $89 million loan accord for the third phase of the Plaridel Bypass Road Project in Bulacan, are both targeted to be signed on the last week of January 2018, once the Philippine government secures the approval of the Monetary Board and the Special Presidential Authority for these agreements,” the DoF said.

“The 15.928 billion yen ($142 million) loan agreement for the flood risk management project in the Cavite industrial area, meanwhile, is targeted for the Monetary Board’s final approval, with the effectivity of the loan targeted on the first week of February 2018,” it added.

President Rodrigo R. Duterte and Japanese Prime Minister Shinzo Abe witnessed the exchange of notes for the Metro Manila Subway and the Plaridel Bypass Road Project between Foreign Affairs Secretary Alan Peter S. Cayetano and Japanese Ambassador Kojie Haneda on the sidelines of the 31st ASEAN (Association of Southeast Asian Nations) Summit on Nov. 13.

At the summit, the heads of state also witnessed the ceremonial exchange of the signed loan agreements of the Cavite project between Finance Secretary Carlos G. Dominguez III and Japan International Cooperation Agency (JICA) Chief Representative to the Philippines Susumu Ito.

The first phase of the Metro Manila Subway project will run from Mindanao Avenue in Quezon City through the FTI complex in Taguig City, ending at the Ninoy Aquino International Airport in Parañaque City. The subway will help decongest EDSA and connect major business centers in Metro Manila to the country’s premier international gateway.

The Plaridel Bypass Road Project involves the construction of a 24.61 kilometer arterial road that will link the North Luzon Expressway in Balagtas, Bulacan with the Philippine-Japan Friendship Highway (Maharlika Highway) in San Rafael, Bulacan to help alleviate the perennial congestion in the town centers along the highway. The exchange of notes signed on Nov. 13 involves the project’s third phase.

The flood control project in Cavite, a region that hosts economic zones and residential communities, will benefit about 8,000 households as well as manufacturing plants in the cities of General Trias and Imus and the municipalities of Kawit, Noveleta and Rosario.

It involves the construction of flood protection measures along the San Juan River and Maalimango Creek Drainage Area of Imus.

The fourth Philippine-Japan Joint Committee Meeting on Infrastructure Development and Economic Cooperation will convene on Feb. 12 according to the DoF.

In the previous meeting, both countries agreed to speed up project implementation procedures.

The loans were offered by Mr. Abe during his trip to the Philippines in January 2017, when he pledged some 1 trillion yen, or $9 billion in Official Development Assistance (ODA) throughout the current administration’s term.  Elijah Joseph C. Tubayan

YouTube toughens rules regarding which videos are eligible to get ads

SAN FRANCISCO — YouTube on Jan. 17 announced ramped-up rules regarding when it will run ads with videos as it scrambled to quell concerns by brands about being paired with troublesome content.

“There’s no denying 2017 was a difficult year, with several issues affecting our community and our advertising partners,” YouTube vice-president of display, video and analytics Paul Muret said in a blog post.

“The challenges we faced in 2017 have helped us make tough but necessary changes in 2018.”

Channels at YouTube will need to have at least 1,000 subscribers and 4,000 hours of watch time within the past year to be eligible for ads, according to Mr. Muret.

Previously, channels could be eligible for ads as part of a YouTube Partner Program by racking up 10,000 views or more.

“We want to take channel size, audience engagement, and creator behavior into consideration to determine eligibility for ads,” Mr. Muret said.

YouTube will closely watch for spam, abuse flags and other signals to make sure channels are remaining within the Google-owned video-sharing platforms policies regarding content, according to the post.

Mr. Muret said that manual reviews of video will be added to a Google Preferred system that brands use to place ads with popular YouTube content to better vet videos.

YouTube is also providing advertisers simpler controls regarding where ads appear and transparency including safety checks by outside parties, says Mr. Muret.

The changes were expected to affect “a significant number” of channels that can get ads.

The moves came as YouTube strived to assure companies their ads would not appear with offensive or inappropriate videos.

“While we took several steps last year to protect advertisers from inappropriate content, we know we need to do more to ensure that their ads run alongside content that reflects their values.” — AFP

HK democracy leader Joshua Wong jailed a second time for 2014 protest

HONG KONG — Democracy activist Joshua Wong, 21, was sentenced to a second jail term of three months on Wednesday for what a judge said was his “leading” role during some of the 2014 pro-democracy “Umbrella Movement” street demonstrations.

Mr. Wong and 19 other demonstrators were found guilty of criminal contempt of court because they refused to obey a court injunction order to leave a protest zone in late November 2014.

The protest was part of the biggest populist uprising for decades in Hong Kong and posed a spirited challenge to Beijing’s Communist Party leaders in demanding full democracy.

For more than two months, tens of thousands of mostly student and young demonstrators camped out in tents on major highways, defying government, police and Chinese demands to leave. Umbrellas became a symbol of defiance after protesters used them as shields against police pepper spray and batons.

High Court Judge Andrew Chan said that even though Mr. Wong stayed in the protest area for only 90 minutes on the day in question, “his involvement in obstructing the clearance operation was deep and extensive.”

“He played a leading role on that day,” Mr. Chan said, adding: “In view of his overall involvement, I am of the view that the only appropriate punishment… will be one of immediate imprisonment.”

Another activist, Raphael Wong, was also jailed, while the remaining protesters, including former student leader Lester Shum, received suspended sentences.

“Thank you your honor for your ruling. Our determination to fight for genuine universal suffrage will not waver,” stated Raphael Wong in the courtroom before being taken away.

Lawyers for both the Wongs said they would appeal, but they were denied an immediate request for bail. — Reuters

Stocks decline anew, tracking global markets

By Arra B. Francia, Reporter

LOCAL STOCKS dropped on Wednesday, tracking the generally negative close of international markets.

The Philippine Stock Exchange index (PSEi) gave up 0.18% or 16.14 points to finish at 8,848.99 yesterday.

The all-shares index also shed 0.11% or 5.78 points to 5,121.47.

“Philippine market followed the trajectory of its regional counterparts before closing in a weak fashion. A negative finish was expected due to Wall Street’s leads, with the market taking a breather after outstanding performances this whole month,” Regina Capital Development Corp. Managing Director Luis A. Limlingan said in a mobile phone message.

Resumption of trading in American markets following its break for the Martin Luther King Jr. holiday ended mostly on a negative note, with analysts predicting volatile trading days ahead.

Wall Street paused its rally on Tuesday, weighed down by weakness in General Electric shares and as lower oil prices dragged down the energy sector.

The Dow Jones Industrial Average fell 10.33 points or 0.04% to 25,792.86; the S&P 500 lost 9.82 points or 0.35% to 2,776.42; and the Nasdaq Composite dropped 37.38 points or 0.51% to 7,223.69.

“It was more of a profit taking, considering most regional markets were down. It’s just been 10 days of trading session, and we’re already up by around 300 points. It’s just right for investors to go on profit taking,” Diversified Securities, Inc. equities trader Aniceto K. Pangan said in a phone interview.

Most Southeast Asian stock markets were muted on Wednesday in line with broader Asia as Wall Street took a breather after its record-setting run, dampening momentum in global equities.

Sectoral counters were split between gainers and losers. Financials saw the largest decline at 2,247.32, lower by 1.88% or 43.16. This was pulled down by the performance of Metropolitan Bank & Trust Co. stocks, which lost P8.30 or 7.76% to end at P98.70 following its disclosure of a stock rights offering to fund its acquisition of the remaining shares of Metrobank Card Corp.

Property followed with a decrease of 0.54% or 21.96 points to 4,032.30, while mining and oil shed 0.39% or 47.99 points to 12,135.17.

On the other hand, services gained 0.61% or 10.08 points to 1,638.75; holding firms added 0.54% or 49.06 points to 9,095.54; and industrials climbed 0.35% or 41.73 points to 11,809.72.

With 942.72 million issues changing hands, volume was valued at P9.64 billion yesterday, rising from Tuesday’s turnover of P7.41 billion.

Decliners trumped advancers, 120 to 92, while 49 names were unchanged.

Foreign investors continued their buying spree for the fourth day, logging P1.26 billion in net purchases yesterday from P698.79 million on Tuesday. — with Reuters

To maintain relevance, WHO must go back to basics

By Philip Stevens

AS one of 34 executive board members of the World Health Organization (WHO) meeting in Geneva next week, the Philippines shares a pivotal role in setting the global health agenda for the next year.

The WHO’s work has never been more important to address serious and evolving international health threats. It is only a matter of time before there is another global influenza pandemic to match the devastating outbreak of 1918, and, as recent outbreaks of Ebola and Zika have shown, new and deadly diseases can emerge at any time.

As a UN organization to which almost every country in the world belongs, the WHO should make strengthening national health systems and coordinating defenses against transnational disease its priority. But it’s often hard to know if the organization has any priority.

Superficial involvement in a ballooning number of health areas has made it a directionless, ineffective, and inward-looking player in an increasingly crowded global health scene.

The WHO’s tendency to do a lot poorly has seen it fail in its core business of leading international action on transnational disease outbreaks.

Take the organization’s response to the West African Ebola crisis of 2014.

An expert panel convened by Harvard Global Health Institute and the London School of Tropical Medicine criticized the WHO for its “catastrophic” delay in declaring a public health emergency.

The worry is that WHO will fail to handle the next inevitable global pandemic, leading to needless loss of life.

Funding is part of the problem: The WHO spent just 5.7% of its 2014-2015 budget on disease outbreaks, a 50% drop on the previous two years.

The WHO’s core budget, paid by member governments, fell from $579 million in 1990 to a feeble $465 million this year. To put this in context, this is considerably less than the Philippines receives each year in foreign aid earmarked for health.

The WHO has topped up its budget with project-based donations from countries and big charities, which now constitute 80% of its overall income. But that has cost the WHO its strategic independence.

Alongside global health staples like tropical diseases and immunization, the WHO now publishes recommendations on subjects from adolescent health and headaches to traffic safety and prisons.

Jeremy Farrar, director of the UK-based global health research charity the Wellcome Trust, argues the WHO is being undermined by its inability to focus on a few core issues.

“It’s so thinly stretched,” he told Reuters. “There’s arguably no organization on earth that could cover all those (topics) at sufficient depth to be authoritative.”

This lack of focus and mission creep will be on full display at next week’s WHO executive board meeting. Bizarrely, large parts of the agenda are dedicated to discussion of how to dilute the intellectual property (IP) protections that drive discovery of new health technologies.

Given the scale of today’s global health challenges, it’s not clear how repeating a tired and long discredited debate about IP and access to medicines will help. The vast majority of treatments prescribed in both developing and developed countries are off-patent and therefore unaffected by IP rules, yet far too many still do not have reliable access to them.

The real reasons for this have been well known for decades. There are too few doctors and clinics, and a lack of social and health insurance to protect people from the cost of health care expenditures (something WHO itself implicitly recognizes in its efforts to promote universal health care). In many places, weak supply chains and poor infrastructure separate people from the treatments they need.

A narrow and divisive focus by WHO on IP may tick political boxes, but it does nothing to improve health and will only lead to more unproductive debate. It looks like a power grab by WHO staff to intervene in areas that are best left to national governments.

In 2017, former Ethiopian foreign minister Tedros Adhanom was elected as new director general on a mandate to reform and consolidate the WHO. Almost immediately, he appointed no fewer than 14 assistant director generals to oversee a huge number of program areas. This is not the work of a reformer.

Next week is the first executive board meeting under Tedros’s leadership. The Philippines and other member states need to steady the ship. To maintain its relevance, WHO must get back to basics and do a few things well, not many things poorly. It must therefore unite nations around practical solutions, not divide them in pointless debates.

 

Philip Stevens is director of Geneva Network, a UK-based research organization focusing on international trade and health issues.

Gov’t to launch promised Overseas Filipino Bank

THE Overseas Filipino Bank will be launched this afternoon in Manila — fulfilling President Rodrigo R. Duterte’s campaign promise.

The Department of Finance (DoF) said in a statement that the bank will be launched at the PostBank Center, Liwasang Bonifacio, Manila.

This comes about four months since Mr. Duterte directed through Executive Order No. 44 the transfer of Philippine Postal Bank (PostBank) shares from the Philippine Postal Corporation and the Bureau of the Treasury (BTr) to Land Bank of the Philippines (Landbank).

PostBank will perform functions of the Overseas Filipino bank, now a Landbank subsidiary — an acquisition approved by the Philippine Competition Commission last week and the central bank’s Monetary Board in December.

The lender is “dedicated to provide financial products and services tailored to the requirement of overseas Filipinos,” and will focus on delivering “quality and efficient foreign remittance services.”

“All obstacles to the opening of the bank that will cater to the needs of all overseas-based Filipinos have now been removed following last week’s approval by the Philippine Competition Commission (PCC) of the acquisition by the Landbank of Postal Savings Bank (Postbank), which will be converted into this financial institution for overseas Filipinos,” Finance Secretary Carlos G. Dominguez III was quoted in the statement as saying.

“It’s just a matter of the administrative integration of the bank. It’s an administrative thing and all the approvals have been cleared away for the acquisition,” he added.

The Finance chief said the move to acquire PostBank also saved it from bankruptcy.

Landbank President Alex V. Buenaventura said earlier that the lender’s first representative office would be located in Dubai, and the second one in Bahrain.

Moreover, Mr. Dominguez said the Department of Finance and Landbank, which he also chairs, are planning to secure licenses in other countries with large concentrations of overseas Filipinos so the lender can provide wider financial advisory services to the beneficiaries.

He said a loan package would also be made available for Filipinos planning to return to the Philippines to start their own businesses or build their homes.

Initially, the bank was planned to only cater overseas Filipino workers, but the DoF proposed to provide services to all foreign-based Filipinos to make it more inclusive, in keeping with the government’s financial inclusion agenda.

“You know, we are just fulfilling his (Mr. Duterte’s) campaign promise one by one. First, tax reform, then this new bank,” said Mr. Dominguez.

Mr. Dominguez said that the Landbank and the BTr are also exploring ways of mobilizing the savings of overseas-based Filipinos for them to invest in the country’s capital markets. — Elijah Joseph C. Tubayan