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Constitutional amendments needed to boost FDI

THE GOVERNMENT needs to amend the constitution to open up industries currently restricted from foreign participation, to unleash the economy’s full growth potential, economists said.

Cielito Habito
2015 file photo of Cielito Habito — www.ateneo.edu

At a forum, former Socioeconomic Planning Secretary Cielito F. Habito said that efforts to open up new sectors for foreign direct investment (FDI) require comprehensive efforts to amend the charter, noting that current tweaks to redefine “public utilities” to allow more FDI will have only a temporary impact.

“The reason we continue we lag behind our neighbors, in spite of dramatic improvements already made, is still because of these legal constraints to more foreign participation in our industries,” Mr. Habito said during Ateneo de Manila University’s Mid-Year Economic Briefing 2017 in Makati City yesterday.

Asked whether the government’s efforts to remove sectors from the upcoming Foreign Investment Negative List (FINL) will boost the economy, Mr. Habito said: “It will only provide limited relief, in the sense that we will only be able to open it, or even just partially, just public utilities,” in an interview after the forum.

“Big foreign infrastructure companies have already been investing massively in India and Latin America, in railways which, in our law, is considered a public utility. So they can’t come in. They can only come in up to 40% but many of them said, when it’s only 40% why even bother?” Mr. Habito said.

Although the government seeks an aggressive overhaul of the FINL, Finance Secretary Carlos G. Dominguez III said earlier that they are limited to “what is legislated and what is in the constitution,” even noting that they will only review “those things that can be done administratively.”

The FINL defines areas where foreign investors are allowed to fully or partially participate, including those blocked by the 1987 constitution.

Economic managers said they are looking into amending the Public Service Act through House Bill No. 4389, authored by former president and now Deputy Speaker Rep. Gloria M. Arroyo (Pampanga, second district), to redefine what public utilities are, and open it up for external investors — especially in telecommunications sector.

“Public utilities” are defined in the Public Service Act, or Commonwealth Act No. 146.

The government has yet to release the 11th FINL.

Even as increasing investments has been fueling the robust economic growth in recent years, Mr. Habito said that amending the constitution for the entry of more foreign players would expand the country’s investment take, and push economic growth to as high as 9%.

“The hope is we will be willing to amend economic provisions of the constitution because that is what really is holding us back. It is outdated. Many of the restrictions in foreign advertising, mass media, education, are really out of date. Given the technology in recent years, those rationales don’t apply anymore to the information age,” he said.

“We have to sustain the seven to 8% growth for at least 10 years to reduce poverty significantly. But we really have to get to a new growth plane. Without a dramatic change in policy, we will still just be muddling through in the same level we have been in the six to 7% until now. Hopefully we can catapult ourselves to a higher plane of seven to 8% or even eight to 9%,” added Mr. Habito.

Other areas where foreign ownership is completely prohibited by the Constitution or laws are: the practice of all licensed professions; retail; cooperatives; private security agencies; small-scale mining; utilization of marine resources; ownership, operation and management of cockpits; and manufacture, repair, stockpiling and/or distribution of nuclear weapons.

The areas where foreigners can own stakes of up to 25% are: private recruitment for local or overseas employment and construction and repair of locally funded works like infrastructure and foreign-assisted projects. The areas where foreigners can own up to 30% include: advertising; exploration, development and utilization of natural resources; private land; public utilities; education; rice and corn administration; financing and investment companies; firms that supply state-owned corporations and agencies; public utility franchises; and private domestic and overseas construction contracts.

Industries allowing up to 40% foreign ownership include security; defense; those industries that pose a risk to health and morals, such as gambling, bath houses and massage clinics; and small-scale and medium-scale enterprises of a certain size.

Economist Alvin P. Ang said during the forum that the country needs to seek new sources of exports, and maximize the capacity of its food manufacturing sector.

“We are being limited. Electronics is still the largest export product, but still we have to find other export products,” said Mr. Ang.

“The global market is integrated you need to connect to the global value chain. In the region, we have to value that connection. In the Philippines, our food sector is big. How can URC (Universal Robina Corp.), Liwayway [Marketing Corp.] become players abroad? It’s because they have the capacity. We should take that advantage,” he said.

Mr. Ang also noted that the government’s infrastructure gap has capped the tourism sector’s growth, which may limit overall economic growth as he noted that some 12.7% of workers are in tourism-related jobs.

Mr. Ang also noted concerns for the tourism sector over the Marawi City crisis that led Mindanao to be placed under martial law.

“We can’t do anything about multiple travel advisories, but we do have to solve the crisis,” Mr. Ang said. — Elijah Joseph C. Tubayan

Software firm, Philippine banks in talks for cloud-based technology use

INTERNATIONAL software company Oradian is currently in talks with several Philippine banks for partnerships on the foreign firm’s cloud-based technology to be used in the lenders’ core banking business.

Julian Oehrlein
Oradian founder and Chief Operating Officer Julian Oehrlein

Oradian’s chief said they are in discussions with several banks that are interested to use the firm’s cloud technology.

The top executive, however, noted they will only make their digital platform available to financial institutions that seek to close the gap in financial inclusion and whose target sectors are the unbanked Filipinos and small and medium enterprises (SMEs), among others.

“We are in discussions with other institutions right now… It’s both rural banks as well as commercial banks who want to tap that market and are looking for efficient tools to actually serve that market as they’ve realized their existing tools, which they use for their commercial banking space, they’re not efficient enough to serve these SME segment,” Oradian Founder and Chief Operating Officer Julian Oehrlein told BusinessWorld in an interview.

Asked if they are looking at sealing the partnerships by end of the year, he said, “We’ll see what they decide, but yes, we are confident. If we just continue doing what we have been doing, then we’ll be very successful in the Philippines.”

Currently, the Croatian technology company has already been tapped by 13 companies in the Philippines ever since it entered the country a year ago. These firms have been using Oradian’s cloud-based system called Instafin for their core business activities.

instafin
A customer uses Oradian’s Instafin on a tablet device

Under Bangko Sentral ng Pilipinas (BSP) Circular No. 808 or the Guidelines on Information Technology Risk Management for All Banks and Other BSP Supervised Institutions signed in 2013, the regulator mentioned of cloud computing as one of the emerging outsourcing models banks could use in their IT systems.

Cloud computing is a migration from owned resources to shared resources. Client users receive IT services, on demand, from third-party services providers or cloud service providers through the Internet “cloud.”

In July, Cantilan Bank, Inc., a rural bank, announced its partnership with Oradian, under which the lender will use the digital platform for its core banking operations, making it the first bank in the Philippines to use cloud-based technology.

The rural lender had said it sees a drop in its operational expenses as well as growth in its revenues by 2018 after it initially rolled out its cloud-based system in its operations.

Asked if they plan to encourage other banks to adopt cloud computing, Mr. Oehrlein said, “Yes… we’re continuing on the trajectory and continuing on the growth.”

However, he noted: “We’re not looking to work with the core business of Tier 1 banks… If they are planning to open microfinance operations — for example in rural spaces or for SME lending — then we’re open to partner with them for that specific space.” — Janine Marie D. Soliman

A fantastically fun title

By Alexander O. Cuaycong
and Anthony L. Cuaycong

Videogame Review
Prey
PlayStation 4

IN 2006, Human Head Studios released Prey, a run-and-gun shooter, for the PC and XBox 360. Similar in form to titles like Doom and Quake, Prey was praised for its outstanding gameplay and its beautiful graphics, portraying a dirty, mysterious and dangerous ship populated by thousands and thousands of aliens who would like nothing more than to grind your bones to dust. Amid the positive reception, it garnered and spawned a cult following, with fans eagerly awaiting the next release.

Fast forward 11 years later, and gamers get their wish. The rights to Prey have been passed off to Arkane Studios, and the development team responsible for the Dishonored series does not disappoint. The franchise is in good hands, with the latest iteration for the PC, PlayStation 4, and XBox One clearly a marked improvement. To be sure, the Prey of 2017 isn’t a true sequel to its 2006 namesake. As marketed, it’s a reimagining of its roots; it has very little to do with the original in either gameplay or plot. All the same, there can be no denying its inherent value. It may be confusing, even frustrating, at times, but it’s nonetheless a romp worth going through.

In Prey, you play as either a male or female Morgan Yu, starting the game by exploring your apartment. You go through books, listen to audio logs, and suit up for your first day of work, only to realize that something dreadfully wrong is happening. Your interviewer is killed, and after getting knocked out, you see yourself back in your apartment again. Things have changed. You’re trapped in your apartment unable to get out, and after discovering the desiccated corpse of a mechanic outside your door, your only way out is through the window of your flat. You smash it, and then find out that your life is a lie. You’re in a simulation run by scientists observing you – but why, and for what? Something happened in this place, and with no memories, no notion of what’s happening in the world around you, and no clear goal in sight, it’s up to you to piece together what exactly happened, and why.

This, arguably, is when Prey is at its best. As you wander and try to make sense of your situation, you cannot help but be overcome by a sense of wonderment and awe at the game’s gorgeous visuals. Each of the many levels has its own style and aesthetic, varying greatly from place to place – from the cold, metallic feel of Psychotronics to the warm, inviting colors of the Crew Quarters. It helps create a distinct feel to each location, segmenting each part of the map into places that are not just fun to explore but also easy to remember.

Couple that with the mystery that surrounds your character, and your exploration becomes utterly compelling. The answers to “What is this place?” “Who are these people?” and “What am I doing here?” are all found in the environment, by way of voice recordings or e-mail in computers you run across. And when you’re not exploring the many corridors and hallways Prey has to offer, you get to fight off aliens called the Typhon, who pose a great threat not only to you, but to the entire human race. The Typhon vary in size and in behavior, and each type requires a specific strategy to beat, by using either guns or their own powers against them.

That said, the combat does feel a bit barebones. The weapons in the game don’t pack a lot of oomph, and some enemy types feel like downright bullet sponges at times, taking upwards of 10 to 15 pistol shots before being neutralized. The same holds true for the Typhon powers, which, while enjoyable, can be absolutely broken at times compared to conventional weaponry.

It’s around this point near the end that Prey starts to fall apart. The game is truly at its best when you take your time, making sure to explore each room, running through places unknown, wondering what dangers await you next. Precisely because it’s open-ended, however, it can suffer greatly from back-tracking and tedium. A lot of the wonder that the game produces goes straight out the window when you are forced to explore the same area twice, maybe even three times, in one playthrough. And that’s saying nothing about the ending of the story, which feel more like sequel bait than anything else.

Make no mistake, though. In spite of its obvious flaws, Prey is a wellspring of enjoyment. It is a fantastically fun title, and is best taken slowly and enjoyed to its fullest. Players who rush ahead with no strategy and expect to brute-force their way through the game will miss most of what it has to offer. Meanwhile, those willing to take their time, consider each of its plentiful areas separately, and explore its every nook and cranny will find themselves at the edge of their seats more often than not.

Game Review

Prey
PlayStation 4

THE GOOD:

• Heavily atmospheric, with beautiful level designs accentuated by good voice acting and nice sound design.

• Exploration and player choice is heavily rewarded.

• Typhon powers are fun to use.

• Mimics are best due to their special ability.

THE BAD:

• Combat can feel frustrating until mastered.

• Running back and forth between areas can feel tedious.

• Audio tends to fade in and out abruptly.

• The ending is an acquired taste.

RATING: 8.5/10

Women on the verge of a nervous breakdown

Forgive the title. It’s just clickbait, borrowed from a Pedro Almodovar film that starred Carmen Maura and introduced to an international audience a young Antonio Banderas.

Women on the verge of a nervous breakdown

The article really is about the Google memo. Yes. That memo.

“Have you heard about the Google memo?” asks Bloomberg’s Megan McArdle.

“James Damore, an engineer at Google, wrote a memo suggesting that maybe there weren’t so many women at Google because women are less interested in sitting around and staring at code all day. The internet erupted.”

“Erupted” could actually be a euphemism because social media went nuts.

And the aforementioned Mr. Damore was fired by Google.

As The Federalist reported, people had their different takes on what Damore wrote:

“He said women may be genetically unsuited for tech jobs,” barked The Washington Post.

“That guy didn’t want any women near a computer,” proclaimed CNN.

When Google CEO Sundar Pichai finally addressed the controversy, he stated, “to suggest a group of our colleagues have traits that make them less biologically suited to that work is offensive and not okay.”

Only, that’s not what James Damore said.

Lee Jussim (professor of social psychology at Rutgers University and a Fellow at Stanford University, writing for Quillette Magazine, 07 August 2017) actually read the memo:

“The author of the Google essay on issues related to diversity gets nearly all of the science and its implications exactly right. Its main points are that: xxx 2. The social science evidence on implicit and explicit bias has been wildly oversold and is far weaker than most people seem to realize; 3. Google has, perhaps unintentionally, created an authoritarian atmosphere that has stifled discussion of these issues by stigmatizing anyone who disagrees as a bigot and instituted authoritarian policies of reverse discrimination.”

In short, Damore didn’t say that women are inferior to men.

What he said was that men and women have differences, and that each exhibit differing areas of strengths and weaknesses, and that women (frankly, rightly) prefer to avoid high stress jobs or jobs with high inanimate components.

Of course, the response would be is that there are perfectly good number of women who succeed in high stress corporate technology-oriented environments, of which Sheryl Sandberg is given as example. But such is a fallacy by exception (i.e., making a conclusion about a group based on information culled from an individual).

Consider the abovementioned Megan McArdle, having worked as a technology consultant, agreeing with Damore, particularly regarding preferences.

Women on the verge of a nervous breakdown

Remembering once coming to work on a Monday, a male colleague asked her what she did during the weekend and her reply was of being with a friend and going to a concert.

Her male colleague said he set up a fiber-channel network in his basement.

Upon hearing that, the other men in the room got excited and spent the next several minutes talking about the intricacies of fiber-channel technology.

As Ms. McArdle recounts, “No one told that guy to go home and build a fiber-channel network in his basement; no one told me I couldn’t. It’s just that I would never in a million years have chosen to waste a weekend that way.”

Psychiatrist Scott Alexander agrees: “This is exactly what the researchers cited above are saying about sex differences accentuating in more gender-equitable countries. If we were less gender-equitable now, women would take whatever they could get. Now that we’re more gender-equitable, they take things which correspond to their gender-specific interests, like veterinary medicine, and we observe larger sex differences.”

“If we continue to insist that, no, women really want to do tech, but stereotypes and sexists are pushing them out, we’ll end up with constantly increasing social engineering to prevent stereotypes (see Slate Star Codex, 07 August 2017).”

And so really: what actually constitutes a fair distribution between the sexes? Would forcing a 50-50 proportion be reasonably equitable?

Also, what about transgenders?

But, as Alexander points out, women dominate the following fields without accusations of discrimination: “men make up only 10% of nurses, only 20% of new veterinarians, only 25% of new psychologists, about 25% of new pediatricians, about 26% of forensic scientists, about 28% of medical managers, and 42% of new biologists.”

Medicine and (from my own experience) law are increasingly being dominated by women.

The hypocrisy of all this manufactured outrage is best exemplified by Google itself.

First, Susan Krashinsky reported in 2015 that: “Google’s policies allow advertisers to target ads by gender,” thereby acknowledging impliedly and implicitly that gender differences do exist.

Finally, the Daily Wire’s Amanda Prestigiacomo had this observation, “some women” from Google “stayed home … because the memo made them ‘uncomfortable going back to work.’”

This “women too upset to work” because of a science or evidence-backed memo, Ms. Prestigiacomo notes, ironically plays “into the worst gender stereotypes of all — the overly-emotional and irrational woman — and inadvertently proving what they are so fiercely attempting to deny: men and women are different.”

Jemy Gatdula is a Senior Fellow of the Philippine Council for Foreign Relations and a Philippine Judicial Academy law lecturer for constitutional philosophy and jurisprudence.

jemygatdula@yahoo.com

www.jemygatdula.blogspot.com

facebook.com/jemy.gatdula

Twitter @jemygatdula

Still relevant 60 years on

By Zsarlene B. Chua, Reporter

Theater
West Side Story
Ongoing until
Aug. 27
The Theatre, Solaire
Resort and Casino,
Parañaque City

SIX DECADES AGO, a musical opened on Broadway tackling the issues of racism and gang violence wrapped in a tragic romance and decorated with snappy dance moves. At the time it premiered in 1957, news of gang violence abounded as the US was still grappling with the changes brought about by WWII.

Sixty years later, West Side Story is as relevant as ever in light of one of the most divisive times in the Land of the Free and the Home of the Brave.

“Maybe we haven’t learned any lessons,” mused Donald Chan, musical supervisor and principal conductor of the Manila leg of touring production during the media call shortly before the gala performance on Aug. 11.

This, he said, is what makes the musical relevant and a must-see, especially for the younger generation. He noted that one of the difficulties of mounting a half century-old musical is how it will interest the young as its lyricist Stephen Sondheim, and the estates of Jerome Robbins (book, director, and choreographer) and Leonard Bernstein (music) insist that everything from the music to the dances remain the same.

“People have flocked to this story and they see love in the show and they can see the hate in the show and they can see how people can get along, so it’s an idea that we hope is carried through,” he said.

A re-imagining of Shakespeare’s classic Romeo and Juliet where the fair town of Verona translated into the concrete jungle of New York – the story opens with the conflict between two gangs, the Jetts, a white gang with Polish roots headed by Riff, and the Sharks, a Puerto Rican gang headed by Bernardo.

Tensions rise as the Puerto Ricans arrived chasing the American Dream as the Jets saw the PRs (as they call them) as intruders. Along the way, the former Jets member Tony falls in love with Bernardo’s sister Maria, and tragedy ensues.

“The more I do the show, the more I realize [the character I’m playing]. If he didn’t start it, it would never have happened,” said Lance Hayes, who plays Riff. “If he just made time to really know the person, and I’m hit with the realization that this person (Bernardo) just got here and he (Riff) already hates him.”

While many might get distracted by the amazing dances that set this musical apart from others – the performers said they had to undergo months of intense dance classes – or the romance between Tony and Maria, what the audience is reminded of many times in the story, usually through the monologues of Lieutenant Schrank (played by Michael Scott), is that the entire issue here is racially motivated conflict.

In fact, “Somewhere” – the song which paints a dream paradise where everyone gets along set against the backdrop of the gang deaths – is more poignant in the light of the recent news of violence which erupted in Charlottesville, Virginia on the night of Aug. 11 when hundreds of white supremacists staged a rally protesting the removal of the statue of Confederate army icon Robert E. Lee from Emancipation Park. The violent rally, where the alt-right clashed with the anti-racist protesters, left a woman dead and dozens injured after a car rammed into a crowd of anti-protesters.

“This is one [show] that’s always going to be relevant… in the show, the message is you can handle the [differences] like the Jets and the Sharks do and let your fear of the unknown translate into violence or hatred, or do things the way Tony and Maria do and see the differences and embrace them,” said Jenna Burns who plays Maria.

“If we can touch a single person and the message gets passed on, then we’ve done our job,” she noted.

That alone makes West Side Story worth watching a few times over.

West Side Story’s ticket prices range from P1,500 to P7,000 and are available through TicketWorld (www.ticketworld.com.ph).

Mondelez calls P10/liter sugar tax ‘unfair’

SNACK COMPANY Mondelez has expressed “serious concerns” about the government’s proposed P10 per liter tax on sugar-sweetened beverages, calling the proposal premature and unfair.

cadbury
http://ph.mondelezinternational.com

“As Mondelez, and as an industry, we have serious concerns about the bill that the Senate is reviewing right now and we have real concerns about how that is structured on its taxation rate proposal, which is per volume liter,” said Shanahan Chua, head for corporate affairs and government affairs for the Philippines, Indonesia, Taiwan, Hong Kong and Singapore.

Mr. Chua was referring to the tax reform measure recently passed by the House of Representatives, which includes a provision that imposes a P10 excise tax on every liter of sugar-sweetened beverages containing locally made sugar, while others will be taxed P20 a liter.

 He made the statement when asked about the company’s stand on the tax proposal during the launch of a new product, Oreo Thins.

“As a member of BIAP (Beverage Industry Association of the Philippines), what we want is to urge the government to take a step back and have a dialogue and continue the dialogue with us to look at this, and to really take more time to have a fairer taxation system,” he added.

The group has a number of beverage lines like Tang but also owns brands like Cadbury’s, Nabisco and Toblerone

Senator Juan Edgardo M. Angara is looking into imposing excise tax depending on the sugar content of the beverage, instead of taxing at P10 per liter. He said a P10-excise tax might be too high, as this would raise the prices of some drinks by 50%.

“What we are looking at as an industry is to echo what Sen. Angara was saying,” Mr. Chua said.

Aishish N. Pisharodi, Mondelez country head for the Philippines, said the company is not against taxation but what it is against is the way the bill is currently drafted.

“There are ways to achieve objectives and still pay tax and that’s what we are discussing right now — how to make it constructive, how to make it sustainable and at the same time contribute to the goals of the government,” he said.

He said the company and the industry want to hold more “constructive talks” with the government because they feel that imposing the tax is premature.

“Not enough discussion and dialogue have happened to be able to implement the tax within the timeline that is currently proposed,” he said.

With the proposed measure a sachet of Tang at P9 would rise to P20, which makes budgeting a “nightmare” for homemakers who “may not even have any benefit from the changes from the tax reform package.”

He said the company is willing to pay its fair share of tax, but the proponents of the measure should also look into the problem they are trying to solve and the ill-effects they were trying to mitigate to make the measure sustainable.

“We want to continue to invest here, and it’s good for our consumers, so it’s good for the government and the people. And therefore our position is the current implementation timeline is very premature. There’s a lot of work that needs to be done,” he said.

He said the way the tax measure is structured “is not fair, it’s regressive and it’s unimplementable. There are ways to achieve objectives and still pay tax and that’s what we are discussing right now — how to make it constructive, how to make it sustainable and at the same time contribute to the goals of the government,” he said.

 Mondelez, which has been in the country for 54 years, enjoys market leadership in products such as powdered beverages and cheese.

Its parent, Mondelez International, Inc., is listed on the Nasdaq.

In the Philippines, Mondelez has a manufacturing facility in Parañaque City and employs about 400 people. — Victor V. Saulon

26 killed in Manila as drug war geared up

AT LEAST 26 people died overnight in police operations in the Philippine capital of Manila, police said on Thursday, a second night of heavy bloodshed this week in an intensification of President Rodrigo R. Duterte’s fierce war on drugs and crime.

The killings across Manila followed 32 deaths in near-simultaneous police raids on Monday night in Bulacan province, which borders the capital.

Together, they mark the deadliest period of a drugs-focused crackdown that has killed thousands of Filipinos, and caused international alarm, since Mr. Duterte took office over a year ago.

Col. Erwin Margarejo, spokesman for the Manila police, described the raids that started late Wednesday in Manila as “one-time, big-time” operations, the same term used by police in Bulacan who said the victims died because they put up a fight.

“This is ‘one-time, big-time’ operations, so it is not focused only on drugs, we are operating also against other street crimes, like robbery, but these people could also be under the influence of drugs,” Mr. Margarejo said. “If they resisted violently, our police have to defend themselves.”

Mr. Duterte unleashed his crackdown the day he took office on June 30 last year after a convincing win in an election in which he campaigned heavily on a promise to use deadly force to wipe out crime and drugs.

It was not immediately clear what was behind the step-up in the number of coordinated police operations this week, but Mr. Duterte gave a clear indication on Wednesday that it had his blessing.

He said it was good that 32 criminals had been killed in Bulacan, then added: “Let’s kill another 32 every day. Maybe we can reduce what ails this country.”

MYSTERIOUS MURDERS
Mr. Duterte also chided human rights groups for getting in the way of his anti-drugs campaign and said police should shoot them if they obstructed justice, a remark the New York-based Human Rights Watch said puts activists “in grave danger.”

Its deputy Asia director, Phelim Kine, described the comments as “like painting a target on the backs of courageous people working to protect the rights and upholding the dignity of all Filipinos.”

The exact number of people killed during the war on drugs is difficult to quantify, with no independent statistics available and police providing comprehensive data only for deaths during anti-drugs operations, where official accounts typically say suspects resisted arrest.

From the start of the drugs war to the end of July, police said over 3,400 people were killed in their operations. Police said about 2,100 deaths among some 13,500 murders over the same period were drugs-related, attributed to turf wars, informants being silenced, or vigilantes killing drug users.

A total of 65 policemen have been killed on the job in this time. Critics maintain that members of the Philippine National Police (PNP) are executing suspects and say it is likely they have a hand in thousands of unsolved murders of drug users by mysterious vigilantes. The PNP and government reject that.

Although the violence has been criticized by much of the international community, Filipinos largely support the campaign and domestic opposition to it has been muted.

Several Senate hearings into allegations that Mr. Duterte operated a death squad when he was a city mayor and was now using the same approach on a national scale have been inconclusive, while an impeachment complaint filed earlier this year was dismissed by Congress.

Meanwhile, his spokesman said of the Bulacan operations there will be “a fair and impartial investigation.”

“The Bulacan raids, we have to underscore, are not the result of a single action, but a wide-ranging simultaneous police operations against illegal drug offenders conducted in the whole province of Bulacan. Local authorities were met with violent resistance as evidenced by the recovery of firearms, grenades and live ammunitions,” Presidential Spokesperson Ernesto C. Abella also said.

PHL ‘NOW NARCO-STATE’
Speaking to cops in a Mindanao city where a mayor allegedly involved in the narcotics trade was killed in a deadly raid, Mr. Duterte on Thursday said the country is now a narcotics state despite the violence in the course of his drug war.

“Now, mag-tanong kayo (If you would ask), ang Pilipinas, are we or are we not a narcotic country? Yes, we are,” Mr. Duterte told cops stationed in Ozamiz City, contrary to his previous warnings that the Philippines is “on the brink” of becoming a narco-state.

The firebrand leader said the critics of his drug war were right for criticizing his six-month deadline in eradicating the narcotics trade, adding that he was not aware of the depth of the nation’s drug problem until he became president.

He then explained that his anti-drug campaign in Davao City, where he was mayor for more than two decades, was his “template” when he took the bloody crackdown on a national level.

“Eh Davao, makita naman. Nakapunta na kayo lahat doon. May droga. Pero sabi ko sa’yo, maglaro ka doon patay ka talaga,” he said.

(If you’ve been to Davao, yes, there were drugs there. But I tell you, if you play with drugs there, you will be killed.)

Mr. Duterte earlier admitted that it was a “miscalculation” on his part when he promised during the election campaign to end the drug scourge in three to six months.

Just recently, he said the Philippines cannot control the narcotics trade and that the problem would not be solved by a chief executive in just one term.

In the same speech in Ozamiz, Mr. Duterte, after showing his thick list of suspected drug personalities, assured the police force that while narco-politics in the city would “stay for a while,” he would free the country from illegal drugs before his term ends.

He added, apparently in jest, that there was no need for him to shoot all the people in his drug list when he could just ship them to the South Pole and drown them there.

“Dahan dahanin ko lang naman sila (I will slowly kill them),” he said.

Reynaldo O. Parojinog, Sr., mayor of Ozamiz City whose name was among those in Mr. Duterte’s drug list, was shot dead at his home last month along with his wife, his brother and nine others in a dawn raid, police said.

Following the raid, police arrested Mr. Parojinog’s daughter, Nova Princess Parojinog-Echavez, the city’s vice-mayor, and said she would face charges. Several others were also arrested.

Mr. Duterte had offered a P2-million reward for each policeman caught and proven to be involved in the burying of bodies in a compound in Ozamiz City that was allegedly used as dumping ground for the remains of rivals of the Parojinog family in the narcotics business. — Reuters, with Ian Nicolas P. Cigaral

3 suspected members of Abu Sayyaf face inquest

By Kristine Joy V. Patag
Reporter

THREE SUSPECTED members of the Abu Sayyaf Group (ASG) were brought to the Department of Justice (DoJ) to undergo inquest proceedings on rebellion complaint against them.

Alleged Abu Sayyaf members Salip Ismael Abdulla, Isa Ukang and Marvin Ahmad arrive at the Department of Justice in Manila on Aug. 17 for the inquest proceeding for rebellion charges they are facing following their arrest in Sulu last August 10. MIGUEL DE GUZMAN/PHILIPPINE STAR

Salip Ismael Abdulla, Isa Ukang, and a 17-year-old male whose name was requested withheld by their counsels at the Public Attorney’s Office (PAO) are facing rebellion raps filed by the Office of the Command Judge Advocate of the Armed Forces of the Philippines, Western Mindanao Command (AFP-WestMinCom).

The three waived their rights for a preliminary investigation on the complaints against them. The DoJ, through Assistant State Prosecutor George H. Yarte, Jr., ruled to wrap up the probe and submit the case for resolution.

Mr. Yarte gave the PAO until 10:00 a.m. today to present the birth certificate of the youngest arrested to prove his claim that he is a minor.

The three were arrested by members of the military last Aug. 10 at about 4:00 a.m.

An encounter between members of the Philippine Marines and 30 fully armed members of the ASG ensued in the village of Pang in Kalingalan Caluang, Sulu.

The government forces were then conducting an operation when they were engaged in a firefight with the bandit group.

Five members of the bandit group were killed in the operation, while two members of the government forces were killed and one was wounded.

Several firearms and guns were also seized by the military and brought to the DoJ.

LTFRB: Uber motorists may operate in other platforms

By Patrizia Paola C. Marcelo

THE LAND Transportation Franchising and Regulatory Board (LTFRB) yesterday allowed Uber Philippines (Uber Systems, Inc.) operators accredited by the company to transfer to the two other transport network companies (TNCs), Grab Philippines (MyTAXI.PH Inc.) and UHOP during the month-long suspension of Uber.

In Board Resolution No. 19 series 2017, the LTFRB said that accredited transport network vehicle service (TNVS) may transfer to Grab or UHOP, but must provide proof of accreditation issued by Uber, and proof of insurance coverage as TNVS.

TNVS who wish to transfer to Grab or UHOP during the month-long suspension of Uber must be in the accredited list of Uber submitted to LTFRB and are not required certificates of public convenience (CPCs) or provisional authorities (PAs).

LTFRB also requires Grab and UHOP to submit a list of TNVS operated daily, to ensure coverage of the affected TNVS under the terms and conditions of Grab and UHOP, including incentives and similar benefits.

“The decision of the Board is based on the urgency of the matter for public service, particularly the riding public for their convenience and benefit, as well as the TNVS who were displaced because of Uber’s irregular conduct,” Board Member Aileen Lizada said in a statement.

HEARING ON UBER SET
LTFRB is also set to conduct a hearing on the manifestation and motion filed yesterday by Uber, offering to pay a P10-million fine in lieu of the issued month-long suspension.

Uber said it has filed a second pleading urging the LTFRB to accept a fine rather than a suspension. LTFRB on Tuesday denied the motion for reconsideration filed by Uber as regards the suspension.

“We are also offering financial assistance to driver partners, as we work to urgently resolve this matter, and hope to be able to serve the Philippines again as soon as possible,” the company said in a statement.

Ms. Lizada said that in addition to the prayer, Uber also submitted folders of the TNVS with proposed financial assistance, and requested that a hearing be conducted on Aug. 23.

“Just like in any other hearing, we will be…hearing Uber’s side and if there is a need to hear the TNVS of Uber as well, as regards financial assistance, we will do the same. We will not be pressured to fast-track everything,” Ms. Lizada said in a statement.

ARCADE CITY
In another development, LTFRB wrote to the Department of Information and Communications Technology (DICT) yesterday, seeking assistance to shut down Arcade City, a ride-sharing app that calls itself the “Uber alternative.”

In a letter addressed to DICT Secretary Rodolfo A. Salalima, LTFRB Chairman Martin A. Delgra III said his agency has requested “the possibility of disconnecting the operations” of Arcade City, a US-based company that launched its app in the Philippines this month.

LTFRB warned Arcade City on Tuesday to “cease all operations,” saying it is a transportation network company (TNC) which has not coordinated with the agency.

Arcade City, however, released a statement yesterday saying: “We forgive the LTFRB for ordering Arcade City to ‘cease operations’ before they understood what Arcade City is and is not, specifically how Arcade City is different from Uber.”

The statement said further: “Driver entrepreneurs may freely identify as Arcade City drivers, but Arcade City does not require payment from riders or drivers.”

“Arcade City will continue recruiting and activating drivers all across the Philippines to provide service in the gap left by Uber’s abrupt withdrawal yesterday.”

Arcade City in its statement also said it “embraces a new peer-to-peer model of ride-sharing. Instead of controlling drivers from a corporate headquarters, Arcade City frees drivers to build up their own transportation businesses like true entrepreneurs.”

“Drivers are free to set their own rates, build their own recurring customer base, and offer additional services like deliveries or roadside assistance. Riders can review driver profiles in advance and choose the driver they prefer,” the statement added.

Emma Stone tops Forbes list of best paid actresses

LOS ANGELES – Oscar-winning Emma Stone capped a perfect 12 months on Wednesday as she knocked Jennifer Lawrence off the top spot on Forbes’ 2017 list of the world’s highest-paid actresses.

ACTRESS Emma Stone poses on arrival for the AFI Life Achievement Award Gala honoring Diane Keaton in Hollywood, California on June 8. – AFP

Stone, 28, who won best actress for her role as a struggling performer in La La Land, made $26 million in pre-tax earnings in the year up to June, according to the magazine’s annual chart.

Friends star Jennifer Aniston, 48, also leapfrogged Lawrence, grabbing the runner-up spot with earnings of $25.5 million, with residual income still coming in from the television sitcom Friends and endorsement deals with brands such as SmartWater and Emirates Airline.

Lawrence’s $24 million was enough for third spot but a shadow of the 27-year-old’s earnings in the last Forbes list.

The star, who took the best actress Oscar for 2012 comedy-drama Silver Linings Playbook, topped the 2016 chart for a second successive year with $46 million.

The actress, who has spoken out on equal pay for women in Hollywood, saw her earnings dip this year after the conclusion of the Hunger Games franchise, but continues to make money from movie deals and an endorsement deal with fashion brand Christian Dior.

Forbes compiles its annual celebrity earnings lists from box office and Nielsen data, as well as from interviews with industry insiders.

Melissa McCarthy and Mila Kunis – on $18 million and $15.5 million respectively – rounded off the world’s five highest-paid actresses.

The top 10 – also including Emma Watson, Charlize Theron, Cate Blanchett, Julia Roberts, and Amy Adams – made a combined $172.5 million, down 16% from last year’s $205 million total, said Forbes.

The actors’ list due to be published later in the week is expected to show once again men banking far more than their female counterparts.

The issue of pay disparity grabbed headlines in 2014 after a leak of stolen e-mails from Sony Pictures Entertainment showed that Lawrence was paid less than her male co-stars in the hit movie American Hustle.

Last year, Dwayne “The Rock” Johnson topped Forbes’ list of highest-paid actors at $64.5 million, more than double Stone’s total this year.

It has been an incredible few months for Stone, who completed a clean sweep of Hollywood’s major prizes in February with an Oscar for her performance as an aspiring actress in La La Land.

She had already picked up trophies at the Golden Globes, British BAFTAs and Screen Actors Guild Awards.

Born Emily Jean Stone in Scottsdale, Arizona to a homemaker mother and businessman father, Stone began acting in youth theater in Phoenix.

At the age of just 14, she made a PowerPoint presentation entitled “Project Hollywood” to persuade her parents to allow her to drop out of school and pursue a movie career.

She has appeared in more than 20 movies since her 2007 debut in Superbad but really came to the fore as a major talent in The Help, Tate Taylor’s 2011 drama about the racism faced by black maids in 1960s Mississippi.

A string of hit films followed, including two Spider-Man movies and Alejandro Gonzalez Inarritu’s Birdman, which earned Stone a best supporting actress nomination. – AFP/Reuters

China reasserts ‘indisputable sovereignty’ over South China Sea, pushes for ‘joint development’

By Ian Nicolas P. Cigaral
Reporter

THE CHINESE government’s position regarding its “indisputable sovereignty” over the South China Sea is “consistent,” Beijing’s foreign ministry said on Wednesday, as it evaded questions regarding its supposed assurance to the Philippines that it would stop expanding the areas it occupies in the disputed waters.

Spratly
An aerial photo taken though a glass window of a Philippine military plane shows the alleged on-going land reclamation by China on mischief reef in the Spratly Islands in the South China Sea, west of Palawan, Philippines, in this May 11, 2015 file photo. REUTERS

Philippine Defense Secretary Delfin N. Lorenzana said in a congressional hearing last Monday that China and the Philippines had reached a “modus vivendi” in the widely contested sea that forbids encroachment and new occupation of reefs.

Asked to confirm Mr. Lorenzana’s comments, Chinese Foreign Ministry Spokesperson Hua Chunying, in a press conference, did not give a categorical answer, but reiterated that China had sovereignty over the Spratly Islands, a South China Sea chain, and nearby waters.

She added that China remains dedicated in settling the dispute peacefully among countries “directly” involved.

China claims most parts of the strategic waterway, where trillion dollars’ worth of ship-borne goods pass through annually. But the Asian power’s maritime ambitions were challenged by the Philippines, another claimant nation, in the Permanent Court of Arbitration in the Hague, which issued a ruling last year in Manila’s favor.

The tribunal, in its July 2016 verdict, said China violated the Philippines’ sovereign rights by blocking fishing and oil exploration as well as by building artificial islands there.

Taking office shortly before the legal victory against China, Philippine President Rodrigo R. Duterte set aside the landmark ruling in pursuit of friendlier ties with Beijing, which also involves billions of dollars in Chinese aid and investment.

‘BROADER OPTIONS’
Meanwhile, Philippine Foreign Secretary Alan Peter S. Cayetano said early this week that the Philippines is working on a «commercial deal» with China to explore and begin drilling oil in contested parts of the sea within a year.

Commenting on Mr. Cayetano’s statement, Ms. Hua said in the same news conference that China had set a proposal to the Philippines in the 1980’s to “shelve differences and seek joint development” in the sea.

“Over the decades, China has been implementing this proposal in handling the relevant disputes in the South China Sea and developing the bilateral relations with the littoral countries of the South China Sea,” she explained.

“The relevant cooperation and joint development shall not impair each other’s own position and the final delimitation of boundary,” she added.

“China believes that as long as we follow the spirit of mutual trust and win-win results, China and the Philippines surely have the wisdom and ability to find a way of joint development that is acceptable to both sides, which will bring benefit to the two peoples and make the South China Sea a sea of peace, friendship and cooperation.”

The Department of Energy (DoE) announced last month that a moratorium on oil and gas exploration in the South China Sea is expected to be lifted before December. The Philippines suspended explorations at Reed Bank in late 2014 as some contract areas fell within the scope of the arbitration case filed by the Philippines against China.

In a statement issued on Thursday, Presidential Spokesperson Ernesto C. Abella said that while the Philippines is open to “broader options for partnerships”, any energy deal with “foreign entities” must be constitutional.

“We are not limiting ourselves to exclusive economic relationships,” Mr. Abella said.

Road Warriors, Bolts look to pad PBA cards

By Michael Angelo S. Murillo
Reporter

TOP half teams NLEX Road Warriors and Meralco Bolts look to fortify their win-loss cards in the Philippine Basketball Association Governors’ Cup when they take on separate opponents in the resumption of festivities today at the Smart Araneta Coliseum.

Road Warriors, Bolts look to pad PBA cards
The Meralco Bolts play the Phoenix Petroleum Fuel Masters in the return of the PBA Governors’ Cup today. — ALVIN S. GO

Took a break on Wednesday to give way to the campaign of Gilas Pilipinas in the 2017 FIBA Asia Cup in Beirut, Lebanon, the season-ending PBA tournament returns today with NLEX (5-1) and Meralco (4-1), currently second and third in that order in the standings, taking on the Blackwater Elite and Phoenix Petroleum Fuel Masters, respectively.

The Road Warriors engage the Elite in the 7 p.m. main game while the Bolts battle the Fuel Masters in the curtain-raiser at 4:15 p.m.

NLEX returns to action after a gutsy win over Meralco in its previous game, 100-94, on Sunday.

It relied on a late charge to get the victory that effectively halted Meralco’s erstwhile unbeaten run while also padding its own push to the top.

Import Aaron Fuller led the Road Warriors to the win with 25 points, 18 rebounds and two blocks while Kevin Alas and Larry Fonacier scored 21 and 16 points, respectively.

JR Quiñahan was the other NLEX player in double digits with 10 points.

“We passed a difficult test tonight against Meralco. Hopefully we get to sustain this in our upcoming games,” said NLEX coach Yeng Guiao, whose team is expected to parade newly acquired player Cyrus Baguio.

Out to spoil NLEX’s thrust is Blackwater, which finally broke through the win column in its last game.

After opening their campaign with three straight losses, the Elite (1-3) won their game against Phoenix, 92-86, on Aug. 6, getting a major lift from new import Henry Walker, who had 32 points, 15 rebounds and five assists.

Not new to the game in the local pro league, having had previous stops in the PBA in the past, Mr. Walker did not waste much time proving his worth as a replacement for original import Trevis Simpson.

“Special thanks to our new import, who gave the inspiration for everybody for us to come out winners of this game,” said Blackwater coach Leo Isaac of Mr. Walker postgame.

“Going to the last nine minutes of the fourth quarter he was suffering from cramps so he was challenging the locals to take charge. Not being able to move properly, he was shouting at his teammates to ‘take the shot’ or ‘play defense.’ That’s a great sign of a proven winner, to challenge his teammates to be on top of the situation when he was not 100%,” the coach added.

Meanwhile, in the first game, Meralco looks to bounce back after absorbing its first defeat in the conference last time around against NLEX.

Import Allen Durham is bannering the Bolts with averages of 24.4 points, 18.6 rebounds and 7.2 assists.

Meralco, though, will be without guards Baser Amer and Mike Tolomia for some time as they play for the national team seeing action in the 29th Southeast Asian Games in Malaysia.

On the part of Phoenix (2-3), it tries to wiggle out of a three-game losing skid following a strong start of 2-0.

Eugene Phelps is the top man with 27.6 points, 16 rebounds and 3.4 assists per game for the Fuel Masters, who are to play today with new players Jeff Chan and Dylan Ababou, two players they got in separate trades recently.

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