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ERC approves Sacasun’s transmission facility

THE Energy Regulatory Commission (ERC) has approved the application of San Carlos Sun Power, Inc. (Sacasun) to develop, own and operate a point-to-point transmission facility that will connect its 48.6-megawatt (MW) solar power plant to the Visayas grid.

“An approval of the instant Application will redound to the benefit of the consumers as it will translate to continuous, quality, reliable, and efficient power supply,” the ERC said in its decision.

Sacasun is among the solar farms that failed to secure a certificate of endorsement from the Department of Energy (DoE), an approval that would have paved the way for the company to receive a guaranteed rate of P8.69 for every kilowatt-hour it produces for 20 years.

The solar company, which is based in Barangay Punao, San Carlos City, Negros Occidental, plans to construct the dedicated facility along the San Carlos-Guihulngan 69-kilovolt (kV) transmission line.

The point of interconnection will require the construction of two 0.6-kilometer 69 kV lines. The solar plant intends to simultaneously inject power toward the Amlan and the San Carlos substations.

Aboitiz-led Sacasun will be spending around P84.37 million, which was arrived at only for the purpose of computing the applicable permit fee, which the ERC set at P632,797.82.

The company said although it filed for feed-in-tariff (FIT) eligibility with the DoE, the application is yet to be approved. In the event the project becomes FiT eligible, Sacasun said the cost of the limited transmission facility would be considered once the asset is transferred to privately owned National Grid Corporation of the Philippines, the grid operator, and National Transmission Corp., owner of the country’s transmission assets. — Victor V. Saulon

Vox populi vox Dei?

It is a common misapprehension that the essence of democracy is sufficiently defined as the popular will expressed through elections or plebiscites and as implemented by the rule of the majority. Vox populi vox Dei, the saying goes, and on this basis elected representatives believe they have carte blanche to change rules big and small, violate unwritten codes, deviate from customary behavior, and reduce established institutions. Such is the implicit justification cited by those who recently voted to impeach the chief justice (and who also threatened the vice-president, the ombudsman, and the Comelec chair), those who would kill the human rights commission by defunding it, and those who would short-circuit constitutional change in order to place the country under indefinite Dutertian rule.

Given the President’s high approval ratings, it is argued, it behooves everyone to move in lockstep, support his policies, ease his vexations, and disable his enemies. In the words of a senator: “Kung ikaw nagtatrabaho ka sa gobyerno at hindi mo gusto mga polisiya ng namumuno, eh di umalis ka.” The Speaker’s words carry a similar message, appealing to a putative majority: “Kung sinasabi na ng karamihan na hindi niya ginagampanan yung trabaho niya, hindi niya ginagawa, eh dapat mahiya ka na eh.” Either conform — or wither and die.

A similar urge to conformity was present at the beginning of the Nazi era in Germany when Hitler’s star was on the rise.

Following the Nazis’ popular electoral victory in 1933, the demand was for Gleichschaltung (“synchronization”), i.e., the reorganization of politics and society to conform to the victorious party’s ideology and policy. Existing institutions were pressured to prove that they had aligned themselves with the Nazi party line, being required to affiliate with Nazi federations, to change their leadership (especially pressuring Jews to resign), to dismiss problematic members, or simply to dissolve themselves if they were unwilling to adjust. More crucially, the elected parliament, with heavy Nazi representation, willingly surrendered its powers to Hitler as chancellor and president.

Question: were these “democratic” actions? They were after all enacted by an elected government with no doubt a substantial degree of support in popular opinion. Remember, Hitler had won 43% of the popular vote in the last elections. (President Rodrigo Duterte by comparison got only 39% of the vote, though since grown to 82% approval.) If vox populi is indeed vox Dei, then there should be no reason to object to such measures.

So suppose a majority of the electorate (not just 39%) decides to abrogate the present constitution, establish a dictatorship, and never hold elections again. Would that be democratic? That’s like asking: is a man free to sell himself into slavery? Can majority rule justify democracy committing suicide?

Herbert Spencer, the great Darwinian, sought a similar test of the reasonable limits of majority rule and popular opinion when he asked what people would think if parliament — perhaps heeding dire Malthusian warnings — were to pass a law ordering all infants born in the next decade to be drowned. He asked, “Does anyone think such an enactment would be warrantable? If not, there is evidently a limit to the power of a majority.” His example actually hits close to home. Congress only recently considered the president’s suggestion to lower the age of criminal responsibility to nine years (i.e., considered putting grade-three pupils in prison!). It is fortunate they chose not to heed his call — but only just.

In practice many issues are placed beyond the reach of majority rule or public opinion — for good reason. One is simple efficiency. The innocence or guilt of accused persons, the valuation of damages and property claims, people’s tax liabilities, the incidence of poverty and the growth rate of GDP, the actual number drug-users — all these are (or ought to be) decided not by vote or influence but by bureaucrats and judges. Such is the pragmatic solution to a well-known result in public-choice theory — Arrow’s Impossibility Theorem — which implies that a universal application of majority rule in deciding issues is likely to be inefficient, inconsistent, or both. The solution is to remove such decisions from the political realm and leave them in the “undemocratic” care of specialists exercising informed discretion. The political independence and professionalism of the bureaucracy and the courts are part of constitutional design. It is foolish and uninformed of politicians to demand that they conform to political trends and opinions of the day, no matter how “popular.”

There is a deeper reason however for putting some things beyond the reach of majorities and public opinion: to avoid the possible tyranny of the majority. So much the worse if “the majority” is in reality being manipulated by demagogues.

In principle, civil liberties, and the bill of rights are really intended to protect minorities; a majority after all needs no protection from itself. And since none of us knows when and how we might be a minority in the future, such guarantees must be couched in universal terms. Rosa Luxemburg put it best: “Freedom only for the government’s adherents, only for the members of a party — no matter how numerous these are — that is not freedom. Freedom always means the freedom of those who disagree.” [Freiheit ist immer die Freiheit des Andersdenkenden.]

In placing human rights, civil liberties, and the administration of justice — including institutions that guarantee them, such as the Supreme Court, the Ombudsman, and the Human Rights Commission — beyond the pale of politics, society makes a credible commitment that it will not be arbitrary or be swayed by current political opinion and habit, e.g., that drug users are beyond salvation and so may be killed without too much compunction; or that “intelligence reports” are sufficient grounds to publicly denounce and persecute individuals.

To attack the integrity of these institutions is to place in doubt that universal commitment to due process and against arbitrariness. Yet this is exactly what politicians caught up in the hubris of commanding a majority do when they seek to bend independent institutions to their will.

Pushed further, this is bound to end badly. And — since this is a business paper — this also means ending badly economically.

Since the threatened institutions and constitutional guarantees are universal, their erosion is bound to affect business confidence as well. Viewed historically, most investment crises in this country (from Marcos’s original power grab to Arroyo’s desperate attempt at a second term) have mostly been related to attempts to improvise beyond limits set by the Constitution. That remains true today. As proof, we already witness how direct foreign investments, both in pledges and actual flows, have declined relative to year-ago levels under Duterte’s watch. Major fiddling around with the Constitution is bound to worsen investor’s hesitation, and Duterte’s charisma is not enough to offset it.

The point is made: without universal rights that extend to minorities, without autonomous institutions guided by reason and justice, the mere existence of a majority in numbers does not embody democracy. It is still only a mob. It is in this sense we should understand the words of Alcuin, the medieval scholar who was among the first to use the phrase when he advised Charlemagne: “Nec audiendi qui solent dicere, vox populi, vox Dei, quum tumultuositas vulgi semper insaniae proxima sit (Do not listen to those who like to say vox populi, vox Dei, for the noise of the mob always verges on madness).”

Emmanuel S. de Dios is professor at the University of the Philippines School of Economics and a fellow of IDEA Phils.

‘We will kill you all’: Rohingya villagers in Myanmar beg for safe passage

SITTWE, MYANMAR — Thousands of Rohingya Muslims in violence-racked northwest Myanmar are pleading with authorities for safe passage from two remote villages that are cut off by hostile Buddhists and running short of food.

“We’re terrified,” Maung Maung, a Rohingya official at Ah Nauk Pyin village, told Reuters by telephone.

“We’ll starve soon and they’re threatening to burn down our houses.”

Another Rohingya contacted by Reuters, who asked not to be named, said ethnic Rakhine Buddhists came to the same village and shouted, “Leave, or we will kill you all.”

Fragile relations between Ah Nauk Pyin and its Rakhine neighbors were shattered on Aug. 25, when deadly attacks by Rohingya militants in Rakhine State prompted a ferocious response from Myanmar’s security forces.

At least 430,000 Rohingya have since fled into neighboring Bangladesh to evade what the United Nations has called a “textbook example of ethnic cleansing.”

About a million Rohingya lived in Rakhine State until the recent violence.

Most face draconian travel restrictions and are denied citizenship in a country where many Buddhists regard them as illegal immigrants from Bangladesh.

‘COMPLETELY SAFE’
Tin Maung Swe, secretary of the Rakhine State government, told Reuters he was working closely with the Rathedaung authorities, and had received no information about the Rohingya villagers’ plea for safe passage.

“There is nothing to be concerned about,” he said when asked about local tensions. “Southern Rathedaung is completely safe.”

National police spokesman Myo Thu Soe said he also had no information about the Rohingya villages but that he would look into the matter.

Asked to comment, a spokeswoman for the US State Department’s East Asia Bureau made no reference to the situation in the villages, but said the United States was calling “urgently” for Myanmar’s security forces “to act in accordance with the rule of law and to stop the violence and displacement suffered by individuals from all communities.”

“Tens of thousands of people reportedly lack adequate food, water, and shelter in northern Rakhine State,” spokeswoman Katina Adams said.

“The government should act immediately to assist them.”

Ms. Adams said Patrick Murphy, the US deputy assistant secretary of state for East Asia, would reiterate grave US concern about the situation in Rakhine when he meets senior officials in Myanmar this week.

Britain is to host a ministerial meeting on Monday on the sidelines of the annual United Nations General Assembly in New York to discuss the situation in Rakhine.

NO BOATS
Ah Nauk Pyin sits on a mangrove-fringed peninsula in Rathedaung, one of three townships in northern Rakhine State.

The villagers say they have no boats.

Until three weeks ago, there were 21 Muslim villages in Rathedaung, along with three camps for Muslims displaced by previous bouts of religious violence. Sixteen of those villages and all three camps have since been emptied and in many cases burnt, forcing an estimated 28,000 Rohingya to flee.

Rathedaung’s five surviving Rohingya villages and their 8,000 or so inhabitants are encircled by Rakhine Buddhists and acutely vulnerable, say human rights monitors.

The situation is particularly dire in Ah Nauk Pyin and nearby Naung Pin Gyi, where any escape route to Bangladesh is long, arduous, and sometimes blocked by hostile Rakhine neighbors.

Maung Maung, the Rohingya official, said the villagers were resigned to leaving but the authorities had not responded to their requests for security. At night, he said, villagers had heard distant gunfire.

“It’s better they go somewhere else,” said Thein Aung, a Rathedaung official, who dismissed Rohingya allegations that Rakhines were threatening them.

Only two of the Aug. 25 attacks by the Arakan Rohingya Salvation Army (ARSA) took place in Rathedaung. But the township was already a tinderbox of religious tension, with ARSA citing the mistreatment of Rohingya there as one justification for its offensive.

In late July, Rakhine residents of a large, mixed village in northern Rathedaung corralled hundreds of Rohingya inside their neighborhood, blocking access to food and water.

A similar pattern is repeating itself in southern Rathedaung, with local Rakhine citing possible ARSA infiltration as a reason for ejecting the last remaining Rohingya.

Maung Maung said he had called the police at least 30 times to report threats against his village. On Sept. 13, he said, he got a call from a Rakhine villager he knew. “Leave tomorrow or we’ll come and burn down all your houses,” said the man, according to a recording Maung Maung gave to Reuters.

When Maung Maung protested that they had no means to escape, the man replied: “That’s not our problem.”

On Aug. 31, the police convened a roadside meeting between two villages, attended by seven Rohingya from Ah Nauk Pyin and 14 Rakhine officials from the surrounding villages.

Instead of addressing the Rohingya complaints, said Maung Maung and two other Rohingya who attended the meeting, the Rakhine officials delivered an ultimatum.

“They said they didn’t want any Muslims in the region and we should leave immediately,” said the Rohingya resident of Ah Nauk Pyin who requested anonymity.

The Rohingya agreed, said Maung Maung, but only if the authorities provided security.

He showed Reuters a letter that the village elders had sent to the Rathedaung authorities on Sept. 7, asking to be moved to “another place.” They had yet to receive a response, he said.

VIOLENT HISTORY
Relations between the two communities deteriorated in 2012, when religious unrest in Rakhine State killed nearly 200 people and made 140,000 homeless, most of them Rohingya.

Scores of houses in Ah Nauk Pyin were torched.

Since then, said villagers, Rohingya have been too scared to leave the village or till their land, surviving mainly on monthly deliveries from the World Food Programme (WFP). The recent violence halted those deliveries.

The WFP pulled out most staff and suspended operations in the region after Aug. 25.

Residents in the area’s two Rohingya villages said they could no longer venture out to fish or buy food from Rakhine traders, and were running low on food and medicines.

Maung Maung said the local police told the Rohingya to stay in their villages and not to worry because “nothing would happen,” he said.

But the nearest police station had only half a dozen or so officers, he said, and could not do much if Ah Nauk Pyin was attacked.

A few minutes’ walk away, at the Rakhine village of Shwe Long Tin, residents were also on edge, said its leader, Khin Tun Aye.

They had also heard gunfire at night, he said, and were guarding the village around the clock with machetes and slingshots in case the Rohingya attacked with ARSA’s help.

“We’re also terrified,” he said.

He said he told his fellow Rakhine to stay calm, but the situation remained so tense that he feared for the safety of his Rohingya neighbors.

“If there is violence, all of them will be killed,” he said. — Reuters

UST vows thorough probe into student’s death

THE UNIVERSITY of Santo Tomas (UST) on Monday condemned the death of a freshman law student allegedly linked to fraternity hazing rites. Horacio Tomas Castillo III, 22, was found on a sidewalk in Balut, Tondo Sunday morning. He was brought to the Chinese General Hospital where he was declared dead on arrival. “We condemn in no uncertain terms hazing in any form or manner. Violence has no place in an academic institution, particularly in our University that values and promotes charity and compassion,” UST said in a statement. “We will leave no stones unturned to ensure that the perpetrators be meted the appropriate sanctions and brought to justice,” it added. — philstar

See full story on https://goo.gl/oSdvZp

Nike, National Basketball Association highlight renewed partnership with uniform innovations

USHERING their renewed partnership, Nike, Inc. and the National Basketball Association (NBA) recently unveiled three uniform innovations designed to further enhance fan experience.

In an event held in Los Angeles at the weekend that featured players from all 30 NBA teams, the two major global basketball stakeholders showed to the public for the first time the Nike NBA Connected Jersey, Statement Edition uniforms, and the Nike Therma Flex Showtime Warm-up Jacket.

The latest league apparels, officials said, serve to underscore the strong link between Nike and The Association throughout the years while also exploring the potential for continued growth.

“When you think about basketball, you think of Nike and the NBA,” said Mark Parker, Chairman, CEO and President of Nike in a statement during the unveiling of the new and innovative league apparels.

“After helping fuel the sport’s impact for years, we are thrilled to now be able to push the boundaries of what’s possible directly with the NBA. From modernizing the look of the game to revolutionizing how fans can be a part of it, we can’t wait for the season to start,” the Nike official said.

The significance of their partnership and the uniform innovations that have been introduced is not lost to the NBA, seeing how it would only redound on the fans and how they follow the league.

“Our Nike uniforms set a new standard for connecting our most passionate fans with their favorite NBA teams and players,” NBA Commissioner Adam Silver said.

Nike, National Basketball Association highlight renewed partnership with uniform innovations
AFP

Adding, “Nike has once again taken the game of basketball to a new level, this time with one of the most advanced jerseys in sports.”

CLOSER TO THE GAME
Using new NikeConnect technology, each adult-sized Nike NBA Connected Jersey will have an embedded NFC (near field communication) chip that will launch real-time team and player content such as pregame arrival footage, highlight packages and top players’ favorite music playlists — all on the jersey owner’s mobile device. Throughout the season, a wealth of exclusive offers and experiences will bring fans closer to the game they love.

To unlock it all, fans will download the NikeConnect app and tap the jersey with their smartphone.

The Statement Edition uniforms, meanwhile, is inspired by teams’ desire to make a bold statement the moment they step on the court. Nike’s designers worked with the teams and the brand’s roster of athletes to create new and updated uniforms for the third of four core team uniforms after the Association and Icon Edition uniforms. The fourth team edition will be released later this year.

The Nike Therma Flex Showtime Warm-up Jacket, for its part, is the first on-court warm-up jacket with a performance hood. Celebrating the style of the game, Nike designers refreshed a beloved apparel staple into a new performance product for athletes on and off the court.

It is created with new Nike Therma Flex fabric which helps athletes maintain the right body temperature during pregame warm-ups and downtime during a game. The jacket is developed with input from top NBA athletes and features a reimagined hood that allows for optimal vision, hearing and warmth, delivering a greater intersection between performance and style.

The Nike NBA Connected Jersey is available exclusively online starting Sept. 29, and the Nike NBA uniforms and Nike Therma Flex Showtime Warm-up Jacket will debut on-court on Sept. 30, the start of the NBA preseason. All Statement Edition jerseys will be available at retail on Nov. 20, and will begin being worn on-court on Nov. 25. — Michael Angelo S. Murillo

Martin Shkreli’s Wu-Tang album might not be a Wu-Tang album

THE RAPPER Killa Sin didn’t think he was contributing verses to a Wu-Tang Clan record a few years ago when he stood before a microphone in a hotel room in Staten Island, NY. A Moroccan producer known as Cilvaringz had flown in for the sessions because Killa Sin, whose real name is Jeryl Grant, was barred from travel by the terms of his parole.

Like any good clan, Wu-Tang is a network that extends from core members to bit players; it can be hard for outsiders to say with complete confidence who’s in or out at any time. Killa Sin is a gifted lyricist with a different crew, Killarmy, which is part of the Wu-Tang’s extended “family,” but as he understood it, the work he was doing with Cilvaringz wasn’t an official Wu-Tang project.

“The way he presented it,” Killa Sin says of his recording with Cilvaringz, “was it was going to be basically his album, and he wanted me to do some work for him.” He later learned his verses ended up on the Wu-Tang Clan’s Once Upon a Time in Shaolin, the most expensive record ever sold. Virtually nobody has heard the entire recording, perhaps not even the jailed executive who owns the only copy in existence.

Martin Shkreli, who became notorious as the boyish Pharma Bro after he raised the price of a lifesaving drug by 5,000%, paid $2 million in a 2015 auction for the album. He owns the rights to do anything he pleases with it, except sell copies. But interviews with rappers and managers involved in the recording raise questions about its provenance and value: Is Once Upon a Time in Shaolin a true Wu-Tang Clan album? Or did Shkreli pay lavishly for the work of a little-known producer with a peripheral link to the storied rap group?

Shkreli, who currently faces a prison sentence for fraud, may himself have been played.

The 34-year-old founder of the pharmaceutical company Turing Pharmaceuticals, Shkreli took possession of the 31-track double CD and its ornate, hand-carved box around the time he became a public pariah for raising the price on an antiparasitic pill called Daraprim from $13.50 to $750. He would later be convicted in August of defrauding investors, a consequence of his previous incarnation as a hedge fund manager. While awaiting sentencing in that case, he managed to get into more trouble: A federal judge on Wednesday revoked Shkreli’s bail after he offered his Facebook followers $5,000 for a lock of Hillary Clinton’s hair.

Now, as Shkreli sits in a federal jail in Brooklyn, the fate of Once Upon a Time in Shaolin appears to be up in the air again. Shkreli posted the one-and-only copy to eBay, and the online auction for the record is scheduled to end Friday night. (Read Jailed mogul’s Wu-Tang Clan album goes for $1M. – Ed.) “I have not carefully listened to the album,” Shkreli wrote in his description of the auction.

Killa Sin isn’t the only person involved in the mysterious, years-long production of the record who doesn’t see it as a Wu-Tang project. Two charter members of the rap group, through their managers, also described it as an undertaking of Tarik Azzougarh, the real name of Cilvaringz.

“It’s not an authorized Wu-Tang Clan album,” says Domingo Neris, the manager of the rapper U-God, a charter member of the Clan. “It never was.”

“When we did the verses, it was for a Cilvaringz album,” says James Ellis, manager of Method Man, another core member of the group. “How it became a Wu-Tang album from there? We have no knowledge of that.”

Cilvaringz chose not to respond in detail to questions about the record’s genesis. “The album and its concept were an evolutionary process that spanned six years, too complex to explain in a soundbite,” he said in a statement. “All participating Wu-Tang artists were paid in advance while RZA and I bore the financial risk of the project.”

Shkreli also declined to discuss Once Upon a Time in Shaolin. He responded to an e-mail earlier last week with “hahahahahahahahahahahaha” before castigating Bloomberg LP, which publishes financial data and news. “Bloomberg is an overpriced, legacy software system that subsidizes a money-losing media company,” Shkreli wrote. “This state of affairs will soon change.”

The accounts of Killa Sin and the representatives of U-God and Method Man echo a tale circulating on hip-hop Web sites: Once Upon a Time in Shaolin began as an undertaking by Cilvaringz, who later persuaded RZA, the de facto leader of the Wu-Tang Clan, to endorse the project and make the record more valuable. (RZA and his representatives did not respond to interview requests.)

This differs from the story given by RZA and Cilvaringz when they were auctioning the album through Paddle8, an online auction start-up. The two men, who were identified during the auction as co-producers, described the album as an effort by the entire Clan to restore the value of music at a time when listeners can download almost any release without paying. They said members recorded their parts separately and that only the two producers had heard the entire finished product.

“The album was recorded in secret with the members not knowing the exact outcome,” RZA said in March 2015. “But when we announced it to them that this was the plan, everybody agreed that this was a very unique idea.”

Neris, who manages U-God, says the real story is that Cilvaringz gathered verses over the years from Clan members for his own projects and later stitched them together to make Once Upon a Time in Shaolin without the full group’s permission. “We’re very detailed about the quality and how we put our best foot forward,” Neris says. “We would never have authorized anyone to put together a project and call it a Wu-Tang Clan record without us ever looking at it, hearing it, or being in the same room together. That’s just the way these guys work.”

U-God sued Wu-Tang Productions, Inc. and RZA in New York State Supreme Court last year, saying he hadn’t been paid for his work on Once Upon a Time in Shaolin, among other things. His manager says that case is pending.

The rapper Shyheim Franklin, another member of the extended Wu-Tang network whose work has been praised by Jay-Z, tells a similar story. He says he went into a studio on Staten Island with Cilvaringz about five years ago to add verses to one of the producer’s records. “He did mention it being a project he was trying to produce with everyone on it,” Franklin says. “There wasn’t the assumption that it would be a Wu-Tang album.”

Franklin, whose name is on a track list for Once Upon a Time in Shaolin that has circulated online, says he can’t be sure he’s on the record but he’d like to find out. “I’d like my cut of that $2 million,” Franklin says by telephone from Washington Correctional Facility in upstate New York, where he’s serving a maximum sentence of 14 years for second-degree manslaughter.

He also wouldn’t mind having a conversation with Shkreli: “Tell him there is an unreleased Shyheim album he can buy if he wants,” Franklin says, laughing.

For Killa Sin, the experience has been particularly disheartening. He says he had been off the scene for a while and was looking for a way to get back in front of the public. He had previously worked with Cilvaringz, an RZA protégé, and liked his style. When he complained about the low fee Cilvaringz offered, the response underscored that this wasn’t a project affiliated with one of the most beloved rap groups. “He said, ‘I’m doing this all out of my pocket, and I don’t have a big budget,’” Killa Sin recalls.

Killa Sin says he pressed Cilvaringz to let him hear some of the record so he could write better verses and immediately recognized old friends from the Wu-Tang Clan such as Raekwon and Inspectah Deck. “Of course,” he says, “I’ve been associated with those guys for the better part of 20 years.” He figured the Cilvaringz album would be a good one and he’d have more chances to record.

But in 2015, Killa Sin was convicted of criminal weapons possession and received a 16-years-to-life sentence. He’s currently at Sing Sing Correctional Facility in Ossining, NY. Later that same year, RZA and Cilvaringz sold Once Upon a Time in Shaolin to Shkreli, who has kept the album under wraps for the most part, although he did play some of it online after the election of Donald Trump.

In a telephone call from prison, Killa Sin laments that he wasted his verses on an album that may never be heard by Wu-Tang Clan fans. He also resents the way Cilvaringz treated him and the rest of the Clan members and their affiliates.

“It’s an insult,” Killa Sin says. “It’s like f— everybody else. I’m going to get mine. He probably thought, ‘We’re onto something. We can really get some money for this.’ But you got to stop and say, ‘How would my brothers feel?’”

Among Wu-Tang fans, there’s also been the perception of insult around the album – only it’s Shkreli who supposedly denigrated the rap group by withholding the music from the public and using his control over the album to draw attention to himself. A potential juror dismissed from Shkreli’s fraud trial articulated this view. “Your Honor, totally he is guilty and in no way can I let him slide out of anything,” explained Juror No. 59, according to a court transcript. After the judge dismissed the candidate, Juror No. 59 added, “And he disrespected the Wu-Tang Clan.”

Shkreli used the eBay auction for Once Upon a Time in Shaolin to express his own hurt feelings at being misunderstood. His purchase was intended to be “a gift to the Wu-Tang Clan,” he wrote. “[T]he world at large failed to see my purpose of putting a serious value behind music. I will be curious to see if the world values music nearly as much as I have.”

The highest bid so far: $1,006,400. (It finally sold for $1,0025,100. – Ed.)Bloomberg

NFA wants to buy palay at P22/kg in 2018

THE National Food Authority (NFA) is hoping to raise its buying price for palay, or unmilled rice, to allow the agency to increase its purchase volume, though it faces budgetary hurdles in doing so.

“We will recommend a higher buying price from P17 to P22 per kilogram so we can purchase more palay,” NFA Grains Marketing Operations Director Rocky L. Valdez said in an interview with BusinessWorld.

The new purchase price will follow President Rodrigo R. Duterte’s directive to increase palay procurement.

Next year, the state-run grains agency is aiming to purchase about five times its 2017 palay procurement target.

Last month, the NFA during a Congressional budget hearing said its 2018 plan is to procure 1.2 million metric tons (MT) of palay from domestic farmers.

NFA’s palay purchasing target this year is 230,367 MT.

“As of Sept. 14, we have only bought 283,166 bags (or 14,158.3 MT),” NFA Spokesperson Rebecca C. Olarte said in a text message on Monday, noting that the dry-season harvest makes up only 30% of the agency’s annual procurement. 

The proposed 2018 palay procurement suggests a funding requirement of P21.6 billion, though the NFA’s approved budget at the House is only P7 billion.

“With the P7 billion, we will not be able to procure much,” said Ms. Olarte.

Ms. Olarte added that the NFA may submit its proposed increase in palay buying price to the interagency NFA Council after the Senate approves the agency’s 2018 budget proposal.

But NFA’s Mr. Valdez said economic managers may still veto the plan due to the inflationary impact of higher rice prices.

“The share of rice in the food basket is high. I am not certain the economic managers will allow it,” Mr. Valdez added. — Janina C. Lim

Cebu Pacific to launch Davao-Tagbilaran route

CEBU PACIFIC will start operating direct flights between Davao City and Tagbilaran City, Bohol on Oct. 21.

The budget carrier said in a statement that its wholly owned subsidiary, Cebgo, will have four times weekly flights (Tuesdays, Thursday, Saturdays, and Sundays) between Davao and Tagbilaran.

“As part of our efforts to improve the overall customer experience for everyJuan, we have been taking to heart the suggestions and feedback from our guests. We’ve looked at the feasibility of the Davao-Tagbilaran route and are optimistic that this new air link will not only answer the clamor from the local communities, but stimulate trade and tourism in both destinations,” Alexander G. Lao, President and CEO of Cebgo, was quoted as saying in a statement.

Davao serves as the Gokongwei-led airine’s hub in Mindanao. From Davao, Cebu Pacific flies directly to Bacolod, Cagayan de Oro, Cebu, Dumaguete, Iloilo, Manila, Tacloban and Zamboanga, and Singapore.

In July, Cebu Pacific expanded its coverage in Visayas and Mindanao, launching commercial operations of new routes. Cebgo began flying three times weekly between Cebu and Masbate; Zamboanga and Cotabato; and Davao and Dumaguete. Cebgo also started flying four times a week between Cagayan de Oro and Zamboanga; and Davao and Tacloban.

Cebu Pacific in July also began operating evening flights to and from the Dumaguete-Sibulan Airport. It now also operates three additional round-trip flights weekly between Manila and Dumaguete.

Shares for Cebu Air, Inc. remained unchanged on Monday at P112 per share. — Patrizia Paola C. Marcelo

Competing Against Risk: The Challenge for Corporate Governance in the 21st Century

“There is clearly an intense focus on risk today. While risk management has been on the radar — if not a priority — for most companies and boards over the past several years, many are asking whether our current system of corporate governance and strategic decision-making ensures adequate risk assessment and management.”

— National Association of Corporate Directors (NACD)
Blue Ribbon Commission on Risk Governance

The statement above echoes a familiar refrain that we regularly hear today from companies, regulators, investors and the business press. Yet what is surprising is that it was written eight years ago in 2009. Back then, the world was much simpler. Our concept of terrorism involved airline hijackings and shoe bombers, instead of today’s “lone wolf” attackers and ISIS cells. The Y2K threat had passed without a glitch while ransomware was still far into the future. Al Gore’s An Inconvenient Truth had been released 3 years prior and the world was just beginning to wake up to the threat of fossil fuel emissions. Clearly, since then, the risks that we face as businesses (and society as a whole) have multiplied in terms of type, scale, and complexity.

Professor EP Vermeulen of the University of Tilburg has pointed out that the average life-span of an S&P 500 company has dropped from about 60 years in the 1960s to about 20 years today. No doubt, one of the major contributors to this decline has been companies’ inability to cope with emergent risks.

Philippine companies have, for the most part, kept pace with and addressed these growing threats. The 2016 Corporate Governance Survey of publicly listed companies (PLCs) jointly produced by the Good Governance Advocates and Practitioners of the Philippines and Isla Lipana & Co/PwC Philippines, highlighted these accomplishments:

• at least one board member is proficient in the risk management discipline while training in risk management is a top development priority for directors

• 78% of respondents (or 40 PLCs) have adopted and implemented an Enterprise Risk Management (ERM) framework

• 76% of respondents have created a Board Risk Oversight Committee and of these, 82% have independent directors as their chairmen.

Yet the glass is only half-full.

The survey notes that only 41% of respondents consider the display of appropriate risk-taking behavior as a key determinant in director remuneration. Furthermore, when you consider that one-third of survey respondents come from the banking and financial services industries where they are required by regulators to have a separate risk committee with an independent director as chairman, it seems that the remaining nonfinancial companies still have a lot to do. The results also highlight the absence of an ERM framework for 22% of respondents. Considering that all respondents account for 29% of stock market capitalization, it is worrying in the least that some very large firms out there lack a proper framework for addressing risk. And even if these firms have an ERM framework, there remains much to be done in terms of communicating the existence of such frameworks to stakeholders: the survey says that most of the respondents only disclose material risk exposures in required reports to regulators while only two-thirds of them voluntarily use their Web sites to share this information.

The survey ends its discussion on risk with these words: “While a significant fraction of companies have risk management systems in place, the main challenge relevant to this covers the robustness of such systems, and the quality and degree of implementation that influences the Board’s and management’s ability to manage known and emerging risks.”

Clearly, we need to ensure that we are going beyond mere compliance to actually identifying and mitigating the risks that businesses face.

I propose that we need to look at risk in a new way, given the challenges of the 21st century environment. We need to put risks and their management front and center as part of our day-to-day operations. We should always be on the look-out to not only mitigate but even find opportunity to the extent that we are better able to manage and absorb them than others. Remember that risk and reward are two sides of the same coin. If we can do this, we have a better chance of ensuring our company’s short-term profitability and long-term sustainability. This is the ultimate objective of corporate governance.

The first step in competing against risk is to know your enemy.

In this regard, four major business organizations, namely the Financial Executives Institute of the Philippines (FINEX), the Institute of Corporate Directors (ICD), the Institute of Internal Auditors Philippines (IIAP) and the Management Association of the Philippines (M.A.P.) are organizing the 2017 Corporate Governance Conference with the theme of “Competing Against Risk” that will be held on Sept. 26th at the Dusit Thani Hotel in Makati City. For further details, please go to www.icdcenter.org. The whole-day conference features distinguished experts in various types of risks that businesses face today as well as representatives of companies that will share their best practices for dealing with and finding opportunity in these risks.

Specific competitors may come and go but, like death and taxes, our businesses will always face risks. It’s time to give them the proper respect and attention rather than just complying with regulators’ requirements.

Ricardo Nicanor “Ricky” N. Jacinto is a member of the M.A.P. Corporate Governance Committee and the CEO of the ICD.

rjacinto@icdceg.org

map@map.org.ph

http://map.org.ph

Former USeP president, UP professor appointed CHEd commissioners

DR. PERFECTO A. ALIBIN, former president of the University Southeastern Philippines (USeP), and Dr. Lilian A. de las Llagas, former University of the Philippines (UP) professor and veteran health science researcher, were appointed in August as commissioners of the Commission on Higher Education (CHEd). Ms. De Las Llagas also previously served as secretary of UP-Manila and of the UP Board of Regents. Mr. Alibin, on the other hand, was a long-time professor of educational management and public administration apart from heading USeP. Their terms will both end on July 21, 2021. The CHEd’s Commission En Banc is now complete.

Tillerson says US could stay in Paris climate accord

WASHINGTON — The United States could remain in the Paris climate accord under the right conditions, Secretary of State Rex Tillerson said on Sunday, signaling a shift in tone from the Trump administration, which angered allies with its decision to pull out of the agreement.

President Donald Trump is willing to work with partners in the Paris agreement if the United States could construct a set of terms that are fair and balanced for Americans, Mr. Tillerson said on CBS’ Face The Nation.

Asked if there was a chance the United States could stay in the accord, Mr. Tillerson responded, “I think under the right conditions.”

“The president said he is open to finding those conditions where we can remain engaged with others on what we all agree is still a challenging issue,” Mr. Tillerson said.

Mr. Trump’s national security adviser, H.R. McMaster, struck a similar tone in television interviews on Sunday in which he said Mr. Trump had always been willing to consider changes on the climate pact.

“He left the door open to reentering at some later time if there can be a better deal for the United States,” Mr. McMaster said on ABC’s This Week program.

“If there’s an agreement that benefits the American people, certainly.”

The accord, reached by nearly 200 countries in 2015, was meant to limit global warming to two degrees or less by 2100, mainly through pledges to cut carbon dioxide and other emissions from the burning of fossil fuels.

The Republican president fulfilled his campaign promise to pull out of the 2015 accord in June, when he announced tersely “We’re getting out.”

Mr. Trump maintained the pact would undermine the US economy and national sovereignty and his decision drew anger and condemnation from world leaders.

It takes four years for a country to withdraw from the Paris agreement, so the United States will be a party to the agreement until two days after Mr. Trump’s first term ends.

US officials attended a meeting on Saturday of ministers from more than 30 of the nations that signed the climate change agreement.

The Wall Street Journal reported on Saturday that Mr. Trump’s administration officials said the United States would not pull out of the agreement and had offered to re-engage in the deal.

Mr. McMaster dismissed the report as inaccurate. “He’s out of the Paris climate accord,” he told the Fox News Sunday program.

Mr. Tillerson said Gary Cohn, Mr. Trump’s top economic adviser, was overseeing the issue.

“So I think the plan is for director Mr. Cohn to consider other ways in which we can work with partners in the Paris Climate Accord. We want to be productive. We want to be helpful,” he said.

Mr. Cohn has been part of the “stay-in” accord camp, which included Mr. Trump’s daughter Ivanka and son-in-law, Jared Kushner. Former chief strategist Steve Bannon was one of the main opponents of the accord before leaving the White House last month.

Mr. Trump has said the Paris accord is soft on leading polluters like China and India, putting US industry at risk.

But the Republican president has shown flexibility on some campaign promises, and US allies have been vocal on the importance of the climate accord.

At a July news conference with French President Emmanuel Macron in Paris, Mr. Trump held open the door to a reversal of his decision, saying “Something could happen with respect to the Paris accords.”

“Let’s see what happens.” — Reuters

Wesley So enters World Cup last 8

The FIDE World Cup started with 128 players three Saturdays ago and now, after round 4, there are eight players left standing.

Results of Round 4:

Peter Svidler RUS 2756 vs Bu Xiangzhi CHN 2714, 3.0-1.0

Maxime Vachier Lagrave FRA 2804 vs Alexander Grischuk RUS 2788, 3.5-2.5

Vassily Ivanchuk UKR 2727 vs Anish Giri NED 2777, 1.5-0.5

Daniil Dubov RUS 2666 vs Levon Aronian ARM 2802, 0.5-1.5

Wesley So USA 2792 vs Baadur Jobava GEO 2702, 2.5-1.5

Maxime Rothstein ISR 2695 vs Vladimir Fedoseev RUS 2731, 1.0-3.0

Richard Rapport HUN 2675 vs Evgeniy Najer RUS 2694, 2.5-1.5

Wang Hao CHN 2701 vs Ding Liren CHN 2771, 0.5-1.5

Pairings for Round 5

(Quarterfinals):

Top Half

Peter Svidler RUS 2756 vs Maxime Vachier Lagrave FRA 2804

Vassily Ivanchuk UKR 2727 vs Levon Aronian ARM 2802

Bottom Half

Wesley So USA 2792 vs Vladimir Fedoseev RUS 2731

Richard Rapport HUN 2675 vs Ding Liren CHN 2771

Each of the Quarterfinalists are guaranteed a minimum of $35,000. All the winners of this round proceed to the semifinals with a minimum purse of $50,000. After that, for the two finalists, the loser gets $80,000 and the winner $120,000. Not bad.

Remember what I wrote about Baadur Jobava last August?

“Have you ever seen the 2004 Walt Disney Movie Miracle? It is about the United States men’s hockey team which won the gold medal in the 1980 Winter Olympics. One scene sticks to my mind — the coach of that team, Herb Brooks (Kurt Russell) chose Jim Craig as his main goalkeeper during the tryouts in Colorado Springs. The assistant coach, played by Noah Emmerich, was surprised by this choice and said that people he has talked to think that Craig’s game has been off since his mom died. To that Coach Herb replied ‘but have you ever seen him when his game is on?’”

When he is “on” Baadur Jobava is without a doubt among the best in the world. He has won the gold medal twice on board 1 in the Olympiads — an awesome performance rating of 2926 with 8/10 in the 2016 Baku Chess Olympiad and another one from the 2004 Calvia Olympiad, where his score was an even more impressive 8.5/10.

Jobava though would be the first to admit that he is his own worst enemy. “If I am concentrated and working, then I play well. If I give in to b*llsh*t, drinking, gambling…”

Here in the World Cup GM Baadur was aware of his responsibilities — the hometown crowd from Tbilisi with everyone idolizing him as the best player from Georgia, the crowds who would go to the playing venue to wish him well and watch the play. As he said two years ago: “Maybe now my best age is coming. I don’t know. I hope so. But I need to deserve it and work hard. Let’s see.”

Jobava had the upperhand in the first two games (classical) in his match against Wesley So. The first tie-break game (25 minutes with 10 second increment) was what did him in.

* * *
So, Wesley (2810) — Jobava, Baadur (2687) [E17]
FIDE World Cup 2017 Tbilisi (4.3), 14.09.2017

1.Nf3 Nf6 2.c4 b6 3.g3 Bb7 4.Bg2 e6 5.0–0 Be7 6.Nc3 0–0 7.Re1 d5

So now we are in the process of transposing to the Queen’s Indian. In chesspublishing.com, a Web site which I highly recommend if you want to keep up-to-date with opening theory, GM John Emms remarks that “I’m unsure whether White really has any theoretical edge after 7…d5, but the arising positions do seem easier for White to handle.”

8.cxd5 exd5 9.d4 Re8

There is this perpetual question in the Queen’s Indian whether Black should go for …c5 or …c6. In this position for example if Black plays 9…c5 right away his center would come under pressure: 10.dxc5 bxc5 (10…Bxc5 is better but that means the second players is left with an isolated pawn on d5.) 11.Qb3 Qb6 (11…Qc8 12.Ne5 Nbd7 13.Bxd5!) 12.Ne5 Rd8 13.Rd1 White has a 100% score in this line.

10.Bf4 h6

Jobava got this very same position in the World Rapid Championship in Doha last year and quite expertly rolled his opponent: 10…Na6 11.Rc1 h6 12.Ne5 Bf8 13.Qa4 c5 14.Nb5 Nb4 15.a3 Nc6 16.Qc2 g5! Black has grasped the advantage and forcefully pushes it through 17.Bd2 Nxd4 18.Nxd4 Rxe5 19.f4 Re8 20.fxg5 Ne4 21.Nf5 Nxd2 22.Qxd2 Qxg5 23.Qc2 Re5 24.Rf1 Rae8 25.Rce1 Qg6 26.Rf2 Bc8 27.Ref1 d4 28.Bh3? Qh5! White is losing material. 0–1 Lalith,B (2587)-Jobava,B (2702) Doha 2016. The text move is an attempt at an improvement, doing away with his wasted moves with the queen’s knight in the Doha game.

11.Ne5 Nbd7 12.Qa4 Nf8 13.Nc6 Qd7 14.Nxe7+ Rxe7?!

Baaadur should have kept the queens on the board with 14…Qxe7 so that he has chances at developing a kingside initiative. After they are exchanged Wesley gets a position where he can push for a win at no risk.

15.Qxd7 Rxd7 16.Bh3 Re7 17.Nb5 Ng6 18.Be3

[18.Bxc7 Ba6 19.Bd6 Bxb5 20.Bxe7 Nxe7 Wesley has lost his bishop pair]

18…Ne4 19.a4 a6 20.Nc3 Nxc3 21.bxc3 Rae8 22.Bg2 c6 <D>

POSITION AFTER 22…C6

Wesley notes his opponent’s queenside pawn weakness and shifts his pieces to take advantage of this. Watch!

23.Ra2 f6 24.Bc1! Nh8

It is a tempting idea to play 24…c5? before White has gotten in Ba3, but here it loses material: 25.Ba3 Rc7 (if he uses the other rook then 25…Rc8 26.Rb2 Re6 27.Bh3) 26.Rb1 Re6 27.dxc5 bxc5 28.Rxb7 Rxb7 29.Bxd5 and wins.

25.Ba3 Rc7 26.Rb2 b5 27.e4! Nf7

[27…dxe4 28.Bxe4 (Wesley takes over the e-file. Take note that he is threatening to win Black’s e8–rook via discovered check) 28…Rd8 29.Bc5 Rcc8 30.Rbe2 it is only a matter of time now]

28.Re3 bxa4 29.exd5 Rxe3 30.fxe3 cxd5 31.c4!

Taking advantage of the pin along the long diagonal.

31…Rd7 32.Bh3 Rc7 33.Bg2 Rd7 34.Rb6 Nd8 35.cxd5 f5

Black has to give up the pawn as 35…Bxd5 36.Bh3 Rb7 37.Rd6 wins a piece for White.

36.g4 Bxd5 37.gxf5 Bc4 38.Bf1 Bxf1 39.Kxf1 a5 40.Rb5 Nc6 41.Kf2 Ra7 42.Ke2 Kf7 43.Kd2 Nb4 44.e4 Rc7 45.Rxa5 Rc2+ 46.Kd1 Rc4 47.Ra7+ Kg8 48.Rxa4 Rxd4+ 49.Ke2 Rxe4+ 50.Kf3 Re5 51.Rxb4 Rxf5+ 52.Rf4 Ra5 53.Bb4 Rb5 54.Bc3 Rb7 55.Rc4 Rf7+ 56.Ke4 Kh7 57.Be5 Rf1 58.Rc7 Rg1 59.Kf5 Rg5+ 60.Ke6 Kg8 61.Rc3 Rg6+ 62.Kf5 Rg5+ 63.Kf4 Rg1 64.Kf5 Rf1+ 65.Kg6 Rg1+ 66.Bg3 1–0

Jobava resigns in view of the forthcoming Rc8+.

In the finals the winner of the Top Half (see pairings given above) faces off against the winner of the Bottom Half. Coincidentally, this World Cup has become a battle of the “young once” (Peter Svidler, 41 years old, Vassily Ivanchuk at 48, Aronian is 34 and Maxime Vachier Lagrave is 26) vs the “young ones” (Ding Liren 24, Wesley So 23, Fedoseev 22 and Richard Rapport 21). On paper it might look like the Top Half is a lot stronger than the Bottom, but that is misleading. The group of Svidler et al. has been hovering in the 2700s for a while now, but younger players tend to be under-rated since they are still on the upswing. A perfect example of this is GM Vladimir Fedoseev, who is currently rated 2731 but if you look at his ratings over the last 6 months you will see that he has gained 80+ points from recent tournaments. In other words Fedoseev is much stronger than what his rating might indicate.

And, oh yes, Fedoseev is Wesley So’s next opponent, so let us take a look at his blood-thirsty style with which he defeated the Israeli Rodshtein.

* * *
Rodshtein, Maxim (2695) — Fedoseev, Vladimir (2731) [E16]
FIDE World Cup 2017 Tbilisi (4.1), 12.09.2017

GM Maxim Rodshtein is a native of St. Petersburg who moved to Israel in 2007 at the age of 18. He immediately made an impact in his new country when he played board 2 for the Israeli team to the 2008 Dresden olympiad where he was a significant contributor to their silver medal, the first in Israel’s history. GM Maxim is also one of the seconds of Levon Aronian.

1.d4 Nf6 2.c4 e6 3.g3 d5 4.Bg2 Bb4+ 5.Nd2 0–0 6.Ngf3 b6 7.0–0 Bb7 8.a3 Be7 9.b4

Another Queen’s Indian! In Fedoseev’s case though he settles the matter of the …c5 or …c6 debate right away.

9…c5!

This move originated from Rubinstein vs Alekhine, Semmering 1926. Alekhine was awarded the brilliancy prize for winning this game (c’mon guys, you’ve seen Alekhine’s book on his best games, right?)

10.bxc5 bxc5 11.Rb1

The Alekhine game continued 11.dxc5 Bxc5 12.Bb2 Nbd7 13.Ne5 Nxe5 14.Bxe5 Ng4! 15.Bc3 (15.Bb2 Qb6) 15…Rb8 16.Rb1 d4! 17.Rxb7? (17.Bb4 Bxg2 18.Kxg2 Qc7 “reaching a position that would be in Black’s favor too, but hardly in a decisive way”) 17…Rxb7 18.Bxb7 Nxf2! 19.Kxf2 dxc3+ 20.e3 cxd2 21.Ke2 Qb8 22.Bf3 Rd8 23.Qb1 Qd6 24.a4 f5 25.Rd1 Bb4 26.Qc2 Qc5 27.Kf2 a5 28.Be2 g5 29.Bd3 f4! 0–1. Rubinstein,A-Alekhine,A Semmering 1926.

11…Qc8 12.Bb2 Nbd7 13.dxc5 Nxc5 14.Qc2 Nfe4 15.Rfc1 f6 16.cxd5 Bxd5 17.Nd4 f5 18.Nxe4 fxe4 19.Qc3 Rf7 20.Qe3 Qd7 21.Ba1 Raf8 22.f4 e5!?

Sacrificing a pawn to get his queen into position.

23.fxe5 Qg4

The threat is Bg5.

24.Rf1 h5 25.h3 Qg6 26.Kh2 h4 27.g4 Bg5 28.Qc3 Rxf1 29.Rxf1 Rxf1 30.Bxf1 Qf7 31.Nf5 Ne6 32.Kg1 g6 33.Nd6 Qf4 34.Bg2 Bd8!

Relocating his bishop to the g1–a7 diagonal.

35.Nc4?

Allowing the following brilliant combination.

35…e3! 36.Bxd5

[36.Nxe3 Bb6 37.Bxd5 Bxe3+ 38.Kg2 Qf2+ 39.Kh1 Qg1#]

36…Qf2+ 37.Kh1 Qf1+ 38.Kh2 Bg5!

White can only prevent Bf4 mate by giving up major material.

39.Bxe6+ Kg7 40.Qxe3 Bxe3 41.Nxe3 Qxa1 42.Nc4 Qe1 0–1

Bobby Ang is a founding member of the National Chess Federation of the Philippines (NCFP) and its first Executive Director. A Certified Public Accountant (CPA), he taught accounting in the University of Santo Tomas (UST) for 25 years and is currently Chief Audit Executive of the Equicom Group of Companies.

bobby@cpamd.net