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Executive privilege shields President Duterte from inquiries

Joel Ruiz Butuyan wrote in his Inquirer column of March 5: “Malacañang has not explained what the Philippines stands to gain in the President’s pivot to China. Is he using the China card to wangle better terms from Western countries? The substantial decline in foreign direct investments to our country seems to negate this expectation. Or is the President turning to China as a means to neutralize Western criticism of his human rights record? The Duterte administration owes the Filipino people an explanation.”
No congressional committee, no court of law, no one can compel President Rodrigo Duterte to explain his bias towards China. The right of executive privilege shields the President from any investigation or inquiry into his policy, program, action, or decision — thanks to a Supreme Court subservient to the power that be.
Executive privilege is the right of the President and other members of the executive branch of government to keep certain communications confidential because disclosure would be contrary to the interests of the President. Those who are bent on finding out if the advice or opinion given by Executive Secretary Salvador Medialdea to Janet Lim-Napoles’ lawyer Stephen David, who has been seen in Malacañang, was at the prompting of the President, and if the President really upbraided Secretary Aguirre for the exoneration of drug lords or was chastised for letting the exoneration become public knowledge would only be frustrated as the two officials can invoke the executive privilege.
Originally, the right of executive privilege was invoked when the information sought would jeopardize national security, diplomatic relations, or economic stability.
But on March 25, 2008, the Supreme Court ruled that conversation and correspondence between the President and public officials that are integral to the President’s executive and policy decision-making process fall under executive privilege. The ruling was in response to then National Economic and Development Authority Director General Romulo Neri’s invoking executive privilege when asked what then president Gloria Arroyo and he discussed about the National Broadband Network (NBN) project.
In April 2007 Department of Transportation and Communications Secretary Leandro Mendoza and Zhong Xing Telecommunications Equipment (ZTE) Vice-President Yu Yong signed a $329-million contract (ZTE originally offered $130 million for the project) that was supposed to provide landline, cellular, and Internet services in all government offices nationwide. The contract signing, which was done in Boao, China, was witnessed by President Arroyo.
Presidential Spokesperson Ignacio Bunye described Arroyo’s quick trip to Boao thus: “That’s the way things looked like for president Gloria Macapagal-Arroyo in her brief stay in this picturesque coastal town Saturday as she ‘came and went like a thief in the night.’” Witnessing the signing of the contract was so important to her that she left for Boao when her husband Mike was fighting for his life following a high-risk heart surgery.
Shortly after the signing of the contract, coffee shops began to buzz with ugly rumors of alleged bribery, overpricing of $130 million, payment of advances or kickback commissions involving high-ranking government officials, and other anomalies which included the loss of the contract, collusion among executive officials, and political pressures against the participants in the NBN Project. The Senate committees on Accountability of Public Officers and Investigation (Blue Ribbon), Trade and Commerce, and National Defense and Security called for an investigation of the project.
In September, Jose “Joey” de Venecia, who was president of Amsterdam Holdings, the company that lost its bid for the NBN project, testified before Senate committees that he was in China with Commission on Elections Chair Benjamin Abalos, who appeared to be brokering the NBN-ZTE deal, and that he heard Abalos “demand money” from ZTE officials. Later that month, Neri was invited by the Senate Blue Ribbon Committee to attend its hearing on the alleged anomalies in the deal.
executive
He testified at the Senate that Abalos and he were discussing the NBN-ZTE project while playing golf when Abalos told him: “Sec, May 200 ka dito.” Neri took it as a P200-million bribe offer in exchange for Neri’s endorsement of the project. Neri further testified that he had informed Arroyo of Abalos’s bribe offer and that Arroyo had told him to reject it.
When asked by senators 1.) whether or not the Ppresident followed up the NBN Project, 2.) whether or not she directed him to prioritize it, and 3.) whether or not she directed him to approve it, Neri, invoking executive privilege, refused to answer. He snubbed subsequent hearings on the matter. When the Senate Committee cited him for contempt, he petitioned the Supreme Court to nullify the contempt order of the Senate.
On March 25, 2008, the Supreme Court, in a 9-6 vote, upheld Neri’s invocation of executive privilege with regard to the three questions. Nine justices found the information sought to be elicited by the three questions as, first, falling under conversation and correspondence between the president and public officials necessary in the president’s executive and policy decision-making process and, second, that the information sought to be disclosed might impair our diplomatic as well as economic relations with the People’s Republic of China.
The decision was penned by Justice Teresita Leonardo-de Castro and concurred in by Justices Leonardo Quisumbing, Renato Corona, Dante Tinga, Eduardo Nachura, Ruben Reyes, Nenita Chico-Nazario, Presbitero Velasco, and Arturo Brion. Except for Quisumbing, who was appointed by president Fidel V. Ramos, all the concurring justices were Arroyo appointees to the Court. Brion was not yet an SC justice when the Court heard oral arguments on Neri’s petition.
Four other Arroyo appointees to the Court — Justices Antonio Carpio, Conchita Carpio-Morales, Adolf Azcuna, and Alicia Austria-Martinez — dissented with the majority as did Justice Consuelo Ynares-Santiago, an appointee of president Joseph Estrada, and Chief Justice Reynato Puno, who was named to the Court by president Fidel Ramos but named Chief Justice by Arroyo.
In Justice Ynares-Santiago’s opinion, the executive privilege doctrine applies only to information if divulged would be against the public interest. She wrote that Neri failed to show how disclosure of his conversations with Arroyo would affect the country’s military, diplomatic, and economic affairs as he asserted before senators. The deal was with a company, not with the Chinese government.
Justice Carpio-Morales’ position was that executive privilege cannot be invoked when “Congress has gathered evidence that a government transaction is attended by corruption.” Justice Carpio also argued that executive privilege cannot be used to hide a crime. Chief Justice Puno held that while branches of government are independent of each other, they work interdependently as the whole government is constitutionally designed to function as an organic whole.
There is a clause in the decision that says that the president and officials of the executive branch of government can invoke executive privilege during their term of office and afterwards.
So, former president Benigno Aquino and former Health secretary Janet Garin can invoke executive privilege when the Volunteers Against Crime and Corruption bring them to court for the Dengvaxia mess as, first, whatever the two officials discussed was part of the president’s executive and policy decision-making process and second, as it might impair our diplomatic as well as our economic relations with France, home of Sanofi, the Dengvaxia supplier.
 
Oscar P. Lagman, Jr. is a member of Manindigan! a cause-oriented group of businessmen, professionals, and academics.
oplagman@yahoo.com

Should there be ‘independent directors’ in the GOCC sector?

While I was the incumbent Chair of the Governance Commission for GOCCs (GCG), I had a short conversation with Securities and Exchange Commission (SEC) Chair Teresa J. Herbosa who encouraged me to institute within the GOCC Sector the system of independent directors, which she found to be foremost feature of corporate governance reforms in the private sector.
In the “publicly held corporations” (PHCs), independent directors are elected in order to represent the public interests, as distinguished from the regular directors who represent primarily the stockholders’ interest. I had thought deeply on the issue, and eventually came out with the conclusion that in the public corporate sector, the institution of the system of independent directors would by duplicative, if not a surplusage, for the following reasons:
Firstly, unlike private corporations which are set-up to represent private interests, essentially profit-maximization for the benefit of the stockholders, all GOCCs, even the ones created as stock corporations under the Corporation Code, primarily have a “public interests” purpose for their establishment, or are expected to achieve the public ends which the government seeks to achieve. The owner of all GOCCs is essentially the government, which does not seek maximization of profits as its goal in setting-up a GOCC (it can create more income through its taxing powers).
Consequently, all the members of the governing boards of GOCCs take on their role to pursue the public purpose for which the entities were formed which is to pursue the full benefits to the members of the public for whose benefit the entities are established — which is fully in accordance with the Stakeholder Theory.
Secondly, all members of every GOCC governing board, whether ex officio or appointive, take their posts as “public officials” and sworn to serve the public interests. The exercise of their fiduciary duties of diligence and loyalty to the government whose objective it is to serve the public interests and not a maximization of profits, promotes directly the interests of the publics which constitute the stakeholders of the entities they serve in.
In effect, GOCC directors and trustees are sworn to serve the public interests in a deeper sense than independent directors in the private sector, who in the end legally are bounded to fiduciaries duties to the corporation and its stockholders.
TERM OF OFFICE OF DIRECTORS AND ‘HOLD-OVER PRINCIPLE’
The GOCC Governance Act follows the one-year term policy under the Corporation Code for private corporations and provides that notwithstanding the provisions of the charters of GOCCs, “the term of office of each Appointive Director shall be for one (1) year, unless sooner removed for cause.”
The act formally expressed into statutory term the “hold-over principle” that pervades in common law for private corporations, in that in spite of the lapse of the one-year term, “appointive director shall continue to hold office until the successor is appointed.”
The act formally incorporates the “merit system” pervading in PHCs in that the re-appointment of any director shall be based on good performance in office, thus: “An Appointive Director may be nominated by the GCG for re-appointment by the President only if one obtains a performance score of above average or its equivalent or higher in the immediately preceding year of tenure as Appointive Director based on the performance criteria for Appointive Directors for the GOCC.”
The adoption of the one-year term-holdover principles for the GOCC Sector has provided a double-edged sword when it comes to the good governance principles. Indeed, there has been a mild outcry in the public sector against discarding the “fixed tenure” system of directors and trustees as provided in GOCC charters since it would engender short-sighted agenda in GOCC corporate planning, and it undermines the sense of independence and professionalism of Governing Boards against a politically inclined Administration.
Our reply to the alleged “short-termism” mentality that would pervade the GOCC Governing Boards whose members are only given a one-year term is not supported at all by the long-term experience in the private sector, where the one-year term system has been the inflexible system since the adoption of the Corporation Law in the Philippines. Indeed, the Boards of Directors/Trustees of private corporations, are perceived to have achieve the corporate visions of their corporations, since they have to renew their mandates on an annual basis, and their annual performance becomes the basis by which they are able to achieve a fresh mandate for a new one-year term during annual stockholders’ meetings. In the GOCC Sector, all directors and trustees, are mandated to pursue the President’s PDP during the six-year term of his administration, and the one-year term given to GOCC directors and trustees ensures that they will serve during the entire term of the President only when they are able to actively pursue the breakthrough goals that are set out for them that would contribute to the realization of the objectives of the PDP.
On the other hand, we do recognized that the one-year term does present a danger that during an administration where politics and pork-barrel system pervades, that GOCC directors and trustees, to be able to ensure renewal of their terms would be less professional in their work, and become swayed by the political moods pervading the government sector.
In other words, in times where the incumbent administration does not pursue the highest callings of “public service is a public trust,” or worse when corruption and self-aggrandizement pervades the top brass of the administration in power, the one-year term-holder over system becomes a tool that weaken the independence of GOCC Governing Boards, who seek to cater to the demands of the appointing powers to ensure survival in their office.
It is in those times that the professionalism and integrity of the GCG as the key government agency that oversees the GOCC Sector, as well as the integrity and competence of the members of the Governing Boards become the keys to preserving the integrity of public corporate governance in the GOCC Sector.
(The 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).
 
Cesar L. Villanueva is a member of the Management Association of the Philippines (M.A.P.) , the former Chair of the Governance Commission for GOCCs and the Founding Partner of the Villanueva Gabionza & Dy Law Offices.
cvillanueva@vgslaw.com
map@map.org.ph
http://map.org.ph

The demand side of culture

Humanities as a field of academic pursuit or lifelong obsession has been relegated to a quaint addiction, like restoring antique cars or collecting stamps. Interest in culture, if too ardently expressed, is seen merely as an affectation.
In a conversation over dinner with slight acquaintances and newly met (but celebrated) strangers, culture, and its neglect in this part of the world, can sometimes crop up. The take on the subject is usually its lack of attention given (we don’t have a ministry of culture) and the almost envious state of nurturing and embrace in other countries. Coming to the defense of the motherland by taking the opposite view of culture’s rise here and the growing feasibility of expensive tickets to culture, both pop and middle brow, as well as the rise of art auctions seems a hopeless task.
The pronouncement of the self-appointed moderator of table conversations is a statement that no one can argue with — only wealthy countries and socialist ones (think Bolshoi ballet) can actively promote culture, which is subsidized by the state or large corporations to make ticket prices affordable for the middle-income audience, if not the masses. This temporary ceasefire of verbal friction brings the conversation back to how best to promote culture.
The celebrity’s seatmate declares (he is the most senior person in the table) that sports gets disproportionate time and attention in the curriculum that used to rest on three former mandates “education, culture, and sports.” Aren’t the tycoons too besotted with sports at the expense of the arts? Here, the conversation stalls and turns on the sorbet — yes, it is refreshing.
We bring up the matter of audience development, which is the demand side of culture. Of course, nobody at the table picks that up. The conversational train keeps heading towards the comparative advantage of culture in richer economies, even the nearby ones that require no visas to visit. Of course, they add, the talents, including conductors, are all imported to serve the local audience. So imported supply meets local demand for culture.
Maybe, in culture too, such as theater, music, and visual arts, the economists should have a say. Aren’t art and culture products too that need to be marketed? Perhaps, the supply side of culture where the talents such as the ones at our table, two siblings in the world of music and theater, has been getting an unfair advantage. The talent shows on TV and audition sessions from foreign theater groups feed the supply of outstanding artists. The singers, performers, and actors overwhelm the demand for them. Many talents then find their home abroad and bewail the lack of a local audience to sustain them. Ironically, it is when they harvest international acclaim are they finally appreciated by their own country and given the audience they lacked before.
Peter Drucker, our favorite management philosopher, stated that the purpose of business (and culture, perhaps) is to “create a customer.” The demand side of culture needs to be attended to. Not only should audiences be willing to travel to the venue to watch a play or ballet or orchestral performances, they should be willing to pay for it.
Developing an appetite for culture (maybe slightly less voracious than that for food and sex) needs to start early in the individual. When I look back at my own education and the nurturing of my love for the humanities, I realize that all those “must go” events where a reaction paper is required like the school plays (Julius Caesar, Macbeth, Hamlet) contributed to a lifelong affection (or affectation) for the arts. The muscle memory residing in the heart longs for those long-ago habits of sitting in a darkened theater to be moved and jangled out of my mental ruts.
These cultural forays were not exclusively devoted to performances, they extended to a love of books, ease in discussing ideas, and buying art. The development of an audience for art and culture is a kind of ecosystem. It is a self-sustaining sphere that gives talent its proper due, even in terms of material rewards. In a cultured society, cultural work is a sustainable occupation.
Audience development starts with an individual who is moved by art and culture. If there are foodies who love to explore and discover new cuisine, there must be also the “culturati,” a discerning audience that applauds and supports the arts. And there’s work to do for both groups.
 
A. R. Samson is Chairman and CEO, TOUCH xda.
ar.samson@yahoo.com

US stock futures fall after Asia rally fizzles

U.S. stock futures dropped after an early equity rally petered out in Asia, where volume was low as many markets across the world remain closed for the Easter holiday. The dollar edged lower and Treasury yields increased.
American shares look set to start April on the back foot after the S&P 500 Index and Dow Jones Industrial Average posted their first quarterly losses since 2015. Futures contracts for the Nasdaq 100 fell again after President Donald Trump renewed his criticism of Amazon.com Inc. over the weekend, this time tweeting that the online giant “must pay real costs (and taxes) now!” A measure of volatility rose from Friday.
Equities in Japan, China and South Korea declined during late Monday trading, reversing an earlier advance. The yen was steady as traders digested a poll showing improved support for Prime Minister Shinzo Abe’s cabinet. The South Korean won rose to its strongest against the dollar in over three years as tensions in the region showed further signs of easing. The euro was little changed and the pound pushed higher.
Investors are entering the second quarter defensively after the worst three months for global stocks in more than two years. February and March were characterized by a surge in volatility amid a barrage of concerns, from escalating trade tensions to a selloff in technology shares. Focus this week will turn to U.S. manufacturing data Tuesday and labor-market figures Friday, which are expected to show the jobless rate fell to its lowest level since 2000. Traders are also waiting for more details on American tariffs on Chinese imports.
“With interest rates still relatively low, and generating negative real returns, if you remain in cash the yield attraction of equities and the growth prospects still make it look the best alternative,” Stephen Davies, founder and CEO of Javelin Wealth Management, told Bloomberg TV on Monday.
Elsewhere, West Texas crude oil climbed above $65 per barrel after capping a third straight quarterly gain. Bitcoin rebounded back above $7,000.
Here are some key events coming up this week:
Easter Monday is a public holiday in many major markets including the U.K., Australia, Canada, and most of Europe. U.S. manufacturing PMI and ISM manufacturing data due Monday. Reserve Bank of Australia April monetary policy decision due Tuesday. New York Fed debuts the Secured Overnight Financing Rate on Tuesday. Reserve Bank of India April policy decision due Thursday. U.S. employment data due Friday; jobless rate probably fell in March after holding at 4.1 percent for five straight months.
These are the main moves in markets:
Stocks
Futures on the S&P 500 Index fell 0.2 percent as of 11:35 a.m. London time. The Shanghai Composite Index dipped 0.2 percent. The MSCI Emerging Market Index gained 0.4 percent.
Currencies
The Bloomberg Dollar Spot Index fell 0.1 percent. The euro rose less than 0.1 percent to $1.2328. The British pound advanced 0.3 percent to $1.4061, the first advance in a week.
Bonds
The yield on 10-year Treasuries gained two basis points to 2.76 percent, the largest increase in a week.
Commodities
Gold increased 0.5 percent to $1,331.88 an ounce, the biggest climb in more than a week. West Texas Intermediate crude increased 0.4 percent to $65.20 a barrel. — Bloomberg

Peso climbs on continued inflows

THE PESO strengthened against the dollar on Monday as inflows continued to support the currency.
The local unit ended yesterday’s session at P52.035 versus the greenback, 8.5 centavos stronger than Wednesday’s finish of P52.16, data from the Bankers Association of the Philippines (BAP) website showed.
The peso opened stronger at P52.13 against the US currency. Its intraday low stood at P52.18, while its best showing was at P52 per dollar.
Dollars traded slid to $507 million from the $878.5 million logged last Wednesday, the data showed.
A trader said continued inflows supported the peso.
“There is still a continuation of inflows supporting the peso. Our guess is that maybe it has something to do with the rights offer of Metrobank (Metropolitan Bank & Trust Co.),” the trader said in a phone interview yesterday, adding that they saw some banks selling the peso aggressively.
Metrobank is conducting a P60-billion rights offering to raise 799.8 million shares priced at P75 apiece until April 4. The capital raising exercise will fund the bank’s loan growth as well as the acquisition of its credit card arm.
Meanwhile, the trader also noted that the tariff imposition of China on American products did not affect yesterday’s trading, although this may create a risk-off situation.
For today, two traders see the peso moving between P51.90 and P52.50 against the dollar.
Meanwhile, the BAP has assigned Bloomberg as the new calculation agent for the dollar-peso spot reference rate effective last April 1.
In a statement sent to reporters yesterday, BAP said Bloomberg will calculate the USD/PHP spot reference rate “based on trades carried out by BAP member banks.”
Prior to the partnership between BAP and Bloomberg, the Philippine Dealing & Exchange Corp. published the foreign exchange spot summary.
“We are pleased to partner with Bloomberg to provide enhanced solutions to the FX community in the Philippines,” BAP managing director Benjamin P. Castillo was quoted as saying in the statement. — Karl Angelo N. Vidal

Trump tweets DACA deal for young immigrants is off

WASHINGTON/IXTEPEC — President Donald Trump said on Sunday that there will be no deal to legalize the status of young adult immigrants called Dreamers and he said the US-Mexico border is becoming more dangerous.
After tweeting a “Happy Easter” message on Twitter, he said: “Border Patrol Agents are not allowed to properly do their job at the Border because of ridiculous liberal (Democrat) laws like Catch & Release. Getting more dangerous.”
“’Caravans’ coming. Republicans must go to Nuclear Option to pass tough laws NOW. NO MORE DACA DEAL!” he wrote, adding a threat to kill the North American Free Trade Agreement which is being renegotiated with Mexico and Canada.
DACA, or Deferred Action for Childhood Arrivals, is a program created in 2012 under Democratic former President Barack Obama that Mr. Trump sought to rescind last autumn.
Designed for people brought to the United States as children by parents who were undocumented immigrants, the program shielded them from deportation and gave them work permits.
Mr. Trump had said he was open to a deal with congressional Democrats who want to protect DACA in exchange for funding to build a US-Mexico border wall, a campaign trail promise.
He insisted during his 2016 White House run that Mexico would pay for the wall, something the Mexican government has repeatedly rejected.
Mexico’s presidential front-runner, Andres Manuel Lopez Obrador, launched his campaign close to the border on Sunday demanding respect for Mexicans and signaling he may take a harder line toward Mr. Trump if he wins the July 1 election.
“Mexico and its people will not be the piñata of any foreign government,” Lopez Obrador said in a speech in Ciudad Juarez, Mexico, which borders El Paso, Texas. “It’s not with walls or use of force that you resolve social problems.”
Whether Mr. Trump will stick to his guns on DACA is unclear. Mr. Trump last month threatened to veto a spending bill because it did not address the fate of Dreamers and did not fully fund his border wall but he ultimately signed the bill.
In the months after Mr. Trump took office, apprehensions of illegal crossers along the US-Mexico border dropped from more than 42,400 arrests in January 2017 to a low of around 15,700 in April, according to US Customs and Border Protection data.
Since then, the number of arrests has risen and in the first months of 2018 was above Obama administration levels.
“Mexico has got to help us at the border,” the president, who was spending Easter at his Mar-a-Lago resort in Florida, told reporters on his way into an Easter church service.
“A lot of people are coming in because they want to take advantage of DACA. They had a great chance. The Democrats blew it.”
Mr. Trump’s DACA tweets came after a report on the Fox New Channel’s Fox & Friends program, one of his favorites, that a “caravan” of mostly Honduran migrants was crossing Mexico and headed to the United States, “either illegally or by asking for asylum.”
More than 1,000 would-be migrants have passed through Mexico’s southern states of Chiapas and Oaxaca in recent days in a so-called “refugee caravan” organized by US-based immigrant advocacy group Pueblo Sin Fronteras.
In the town of Ixtepec, more than 1,500 men, women and children from Honduras, El Salvador and Guatemala waited in a sweltering warehouse on Saturday, mattresses rolled and bags packed, as local authorities and immigration officials from Mexico’s federal government organized 15 buses to take them to their next stop on the long journey north.
By traveling together, the immigrants hope to protect themselves from the crime and extortion that makes the route through Mexico dangerous. They say some but not all of them will seek asylum if they reach the United States.
Gina Garibo, a member of Pueblo Sin Fronteras traveling with the migrants, said the group would hold a meeting to discuss Mr. Trump’s statements on Sunday and stressed that the caravan’s aim was to protect vulnerable people.
“The main people here are fleeing criminal violence, political violence, in their country and this allows us to save lives,” she said in response to Mr. Trump’s comments.
A guest on Sunday’s Fox & Friends show, Brandon Judd, head of the National Border Patrol Council union, said illegal immigrants benefit from the “catch and release” program that Mr. Trump referenced in his tweet. Under it, they can be freed while awaiting court hearings if detained in the United States.
If recent border crossers do not claim asylum, they can usually be deported quickly. But if they say they fear targeted violence or persecution in their home countries, they can begin the long process of petitioning for asylum in immigration court.
Mr. Trump said on Twitter on Sunday that Mexico is doing “very little, if not NOTHING,” to stop the flow of people across the southern border. “They must stop the big drug and people flows, or I will stop their cash cow, NAFTA. NEED WALL!”
Mexican Foreign Minister Luis Videgaray said the United States and Mexico work together on migration every day. “An inaccurate news report should not serve to question this strong cooperation. Upholding human dignity and rights is not at odds with the rule of law. Happy Easter,” Mr. Videgaray said in a tweet.
Mexico deported some 80,000 people in 2017, down from about 160,000 in 2016, official statistics show. The vast majority were from Central American nations. The drop reflects fewer Central Americans crossing the country last year. — Reuters

China, Vietnam agree maritime row should be settled through talks

HANOI — Chinese Foreign Minister Wang Yi said on Sunday China and Vietnam should settle their disputes in the South China Sea through talks and move to jointly exploit its waters.
“We have agreed that settling the maritime issues is extremely important for the healthy and sustainable development of bilateral relations,” he told reporters after a meeting with Vietnamese Foreign Minister and Deputy Prime Minister Pham Binh Minh in Hanoi.
China claims 90% of the potentially energy-rich maritime territory and has been building on and militarizing rocky outcrops and reefs in its waters.
Brunei, Malaysia, the Philippines, Taiwan and Vietnam also lay claim to parts of it, through which about $5 trillion of trade passes each year. Vietnam is the country most openly at odds with China over the issue.
“The two sides should better manage disputes through talks and refrain from taking unilateral actions that may further complicate and expand the disputes,” Mr. Wang said.
“At the same time, (the two sides) should promote cooperation at the sea, including holding talks on joint exploitation,” he added.
Messrs. Wang and Minh said bilateral relations had seen positive development, with rising trade and investment as the two neighbours further opened up markets to each other. Bilateral trade exceeded $100 billion last year.
Mr. Minh said Vietnam and China shared responsibility to maintain peace and stability in the region, reiterating Vietnam’s stance that the maritime disputes must be resolved peacefully manner and according to international law. — Reuters

Thai editor could face charges over picture of kings wearing masks

BANGKOK — A Thai editor faces possible criminal charges for sharing a student’s “disrespectful” picture of historic kings wearing face masks to highlight air pollution in the northern city of Chiang Mai.
The governor of Chiang Mai told Reuters on Sunday that he believed Pim Kemasingki, editor of the Chiang Mai Citylife magazine, had breached the Computer Crime Act by sharing the picture.
“It is up to the police to gather evidence,” Pawin Chamniprasart said.
In a letter to police, he wrote that the kings are worshipped and respected in Chiang Mai and “using the picture with the three kings wearing masks is disrespectful.”
Thailand’s cyber crime law, which criminalizes defamation and obscenity, has been widely criticized by international rights groups for curtailing freedom of expression.
Mr. Pim, a Thai-British national, said the image of the three statues wearing masks had been shared on a Facebook page publicizing a “Right to Breathe” anti-air pollution rally that had later been cancelled at the request of the governor.
“I shared this picture thinking it was pertinent and powerful,” Mr. Pim told Reuters.
“For decades I’ve been promoting the city and loving it… so it’s quite unsettling that fighting for healthy air for my fellow citizens has turned into me besmerching the city.”
Recently, Thailand has suffered from some of its worst air pollution in years.
Achariya Ruangrattanapong, a lawyer for Mr. Pim, said he was confident that sharing the picture was not a violation of the cyber crime law.
“How can this be a computer crime if it involves a picture that a child drew?” he said.
Mr. Pawin said he was not seeking charges of royal insult against Mr. Pim.
Under Thailand’s strict lese majeste law, those found guilty of insulting the monarchy face up to 15 years in prison. — Reuters

Costa Rica votes in ex-minister as next president

SAN JOSÉ — Costa Rica on Sunday voted for a former minister from the center-left ruling party as its next president, rejecting his rival, an ultra-conservative preacher who had campaigned strongly against gay marriage.
Carlos Alvarado, a former labor minister under current President Luis Guillermo Solis, who was barred from seeking a second term, won a convincing 60.7% of the ballots in the run-off, electoral authorities said, based on returns from more than 90% of polling stations.
“There is much more that unites us than divides us,” he told a cheering crowd in his victory speech, congratulating the defeated candidate. “My duty is to unite this republic, to take it forward, so it is a leading republic of the 21st century.”
The right-wing preacher, Farbicio Alvarado (no relation), garnered 39.3%. He quickly conceded defeat to a crowd of disappointed supporters, thanked God and congratulated Carlos Alvarado on his triumph. “We have not won the election, but we can accept this result with our heads held high,” he said.
Carlos Alvarado highlighted several issues during the campaign — boosting education, reducing the growing deficit, enhancing environmental protections — while incarnating continuity with the outgoing leader.
One of the biggest challenges facing Mr. Alvarado as he takes charge will be trying to cut down the deficit, which has ballooned to 6.3% of gross domestic product.
To do so, he will have to succeed where his predecessors have failed, in pushing through unpopular measures to increase tax collection.
On gay marriage, he has declared himself in favor, aligning with an exhortation issued in January from the Inter-American Court of Human Rights that such unions be recognized. — AFP

Polls: Half of Japan’s voters don’t support Abe Cabinet

TOKYO — About half of Japanese voters don’t support Prime Minister Shinzo Abe’s administration amid suspected cronyism and cover-up, according to results of opinion polls conducted by Japanese media.
The Yomiuri newspaper’s survey issued on Monday showed that the disapproval rating for Mr. Abe’s Cabinet rose to 50% from early March, compared with 47.5% in the Kyodo news agency’s survey published on Sunday.
The support rate for the Cabinet showed a slight rise to 42.4% in the Kyodo poll, while the Yomiuri poll showed a drop of six points to 42%.
Both opinion polls were conducted between March 31-April 1.
The polls followed last week’s testimony by ex-finance ministry official Nobuhisa Sagawa, who said neither Mr. Abe nor his wife influenced the murky sales of state-owned land to a school operator or the finance ministry’s altering of documents about the deal. The slide in Mr. Abe’s ratings has clouded his prospects of winning a third three-year term as president of his Liberal Democratic Party, a victory that would set him on track to become Japan’s longest-serving premier. Mr. Abe has been prime minister since 2012. — Reuters

Oil extends rally after US rigs decline as Iran risks persist

Oil’s rally above $65 a barrel is being propelled by a sign that American explorers have curtailed drilling activity as well as speculation that the U.S. could reimpose sanctions on OPEC producer Iran.
Futures added 0.5 percent in New York after capping a third straight quarterly gain, the longest winning streak since 2011. U.S. drillers idled seven working rigs last week, easing concerns over surging shale production. Meanwhile, analysts from Mitsubishi UFJ Financial Group Inc. and UBS Group AG said there are upside risks to oil prices from the potential resumption of sanctions on Iran, which could disrupt the nation’s crude exports.
Crude rebounded over 5 percent last month, recouping February’s losses, after U.S. President Donald Trump named hawkish officials to his government, signaling the nation may pursue a more hard-line stance toward Iran. Even so, concerns persist that a rapid increase in American production, which has topped 10 million barrels a day each week since early February, could undermine efforts by the Organization of the Petroleum Exporting Countries and its allies, which are trying to balance the market by cutting output.
Trump’s position on Iran and declining production from OPEC member Venezuela are causing supply uncertainties that “provide some underlying support for the price,” said Ole Sloth Hansen, an analyst at Saxo Bank A/S in Copenhagen. “But the question is whether this is enough to take the prices higher.”
West Texas Intermediate crude for May delivery added 18 cents to $65.12 a barrel on the New York Mercantile Exchange at 2:18 p.m. in Dubai. The contract climbed 56 cents to $64.94 on Thursday. No futures were traded in New York or London on Friday due to the Good Friday holiday. Total volume traded was about 45 percent below the 100-day average.
Brent for June settlement rose 38 cents to $69.72 on the London-based ICE Futures Europe exchange. The May contract climbed 74 cents to close at $70.27 before expiration on Thursday. The global benchmark traded at a $4.62 premium to June WTI.
Yuan-denominated oil futures on the Shanghai International Energy Exchange lost 0.9 percent to 416.6 yuan a barrel. The September delivery contract closed 2.6 percent higher on Friday after debuting last week.
U.S. explorers cut the number of rigs by the most since November 2017 last week, bringing the total to 797, Baker Hughes data showed. Still, the count remains near the highest in three years, and with separate data showing nationwide crude inventories climbed 1.64 million barrels in the week ended March 23, jitters over increasing U.S. supplies remain.
Also in the U.S., Trump’s appointment of Iran hawks Mike Pompeo and John Bolton last month increased the chances that Washington will abandon a deal under which international sanctions on the Persian Gulf state were removed in return for a curbing of its nuclear program.
If measures are reinstated, at least 250,000 to 350,000 barrels a day of oil is at risk of being disrupted, according to Ehsan Khoman, head of research for the Middle East and North Africa at Mitsubishi UFJ. UBS’s analyst Giovanni Staunovo boosted his oil price outlook, citing the potential sanctions as making an increase in prices more likely, especially at a time when OPEC and its allies said they will err toward over-tightening in the market.
The encouraging signs for bulls were echoed in money managers’ net-long positions. Hedge funds have increased their bullish WTI bets to the highest level in seven weeks, according to the U.S. Commodity Futures Trading Commission.
Oil-market news:
OPEC’s shipments will fall to 24.25 million barrels a day in the four weeks to April 14, Oil Movements said in its weekly report. Russia’s decision to cooperate with OPEC and its allies on oil-output levels “played a positive role not only in balancing the market, but also in the additional amount of foreign-currency revenue” gained by the country, Energy Minister Alexander Novak said at a meeting with President Vladimir Putin. — Bloomberg

Peso strengthens on China tariff response

The peso strengthened against the dollar on Monday, April 2, as inflows continue to support the local currency.
The local currency ended Monday’s session at P52.035 versus the greenback, 8.5 centavos stronger from Wednesday’s finish of P52.16.
The peso opened stronger at P52.13 against the US currency. Its intraday low stood at P52.18, while its best showing was at P52-per-dollar.
Dollars traded slid to $504 million from the $878.5 million logged last Wednesday.
A trader said that the continued inflows remain supportive to the peso.
“There is still a continuation of inflows supporting the peso. Our guess is that maybe it has something to do with the rights offer of Metrobank (Metropolitan Bank & Trust Co.),” the trader said in a phone interview, adding that they are seeing some banks selling peso aggressively.
Metrobank is conducting a P60-billion rights offering to raise 799.8 million shares priced at P75 apiece until April 4. The capital raising exercise will fund the bank’s loan growth as well as the acquisition of its credit card arm.
Meanwhile, the trader also noted that the tariff imposition of China on American products did not affect Monday’s trading, although this may create a risk-off situation.
“For today’s trading, I don’t think it has affected that, although we don’t discount the fact that we always would be wary of the fact that if and when [President Donald J.]Trump tweets or issue statements, or when China responded to the the tariffs of the US, then definitely that’s a risk-off situation and whenever we see risk-off situation, dollar is usually the safe haven.”
China has increased tariffs by up to 25% on 128 US products including frozen pork, fruits and wine in response to the the imposition of duties on imports of steel and aluminum. — Karl Angelo N. Vidal

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