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Instilling integrity into the corporate DNA

IN BRIEF: 

• Nearly half (49%) of global respondents believe that compliance with their organization’s standards of integrity has improved over the past two years, marking a 7% increase from 2022.

• Unethical mindset is more dominant in the upper echelons of organizations, with 67% of board members admitting they would consider unethical actions for their own benefit compared to only 25% of employees.

• Recent research indicates that corporate fraud shaves approximately 1.6% off a company’s equity value each year. In monetary terms, that equates to a staggering $830 billion.

The current climate of persistent macroeconomic, geopolitical, and market volatility, coupled with stringent regulatory scrutiny, continue to put the moral compass of organizations to the test. These global conditions underscore the critical importance of the values businesses uphold, particularly trust and integrity.

Trust serves as a significant competitive advantage, particularly when market unpredictability challenges business resilience. Without trust from employees, customers, suppliers, and investors, an organization’s future viability is jeopardized.

At the same time, companies rooted in integrity ensure long-term sustainability by adhering to ethical practices, which reinforce their brand and operational stability. A lack of integrity erodes trust, leading to significant operational and strategic challenges.

The interplay between these two raises a critical question: “How can trust endure without integrity?” This query forms the crux of the EY Global Integrity Report 2024, which surveyed over 5,400 respondents across 53 countries and territories.

On the upside, 49% of global respondents believe that compliance with their organization’s standards of integrity has improved over the past two years, marking a 7% increase from the EY Global Integrity Report 2022.

However, 38% of global respondents acknowledge a willingness to engage in unethical behavior to advance their career or remuneration. This pervasive mindset creates substantial risks that could lead to various adverse impacts within an organization.

The cost of low corporate integrity is high. Specifically, corporate violations in the US and the UK incurred penalties totaling $1 trillion, as a result of half a million infractions between 2010 and 2023. 

This article explores actionable insights from the EY Global Integrity Report 2024 and identifies human-centered approaches that leaders can use to build an integrity-first culture within their organizations.

THE CURRENT STATE OF INTEGRITY
Despite improved perceptions of organizational standards of integrity, companies continue to grapple with significant incidents and violations. The EY report highlights that 20% of companies acknowledge experiencing major integrity breaches, such as fraud, data privacy or security incidents, or regulatory compliance violations, within the past two years.

Notably, among those reporting significant integrity incidents, over two-thirds indicate the involvement of third parties.

An analysis of over 500,000 corporate violations from 2010 to 2023 reveals that certain financial and employment violations, including accounting deficiencies, AML deficiencies, tax violations, labor standards, workplace safety, and consumer privacy issues, have become 2 to 10 times more frequent since 2010.

Conversely, there has been a notable decline in violations related to employee compensation, public safety, banking, and environmental issues. However, progress remains limited in addressing anti-competitive behavior, discrimination, and whistleblower retaliation.

EMPLOYEES’ APPROACH TOWARD INTEGRITY
Although a majority of employees (58%) take a principled approach to integrity, there remains a substantial proportion (42%) who may compromise these standards under certain conditions.

In this dichotomy, the report shows that potentially compromised employees have a more negative view of their organization’s compliance environment. They are nearly three times more likely to say that unethical conduct is ignored within their teams, and more than five times more likely to say that unethical conduct is ignored within their organization’s supply or distribution chain.

LEADERS’ INTEGRITY DILEMMA
An unethical mindset towards career or pay is predominant in the upper echelons of organizations, with 67% of board members admitting they would consider unethical actions for their own benefit compared to only 25% of employees.

Moreover, 47% of board members and 40% of senior management have observed actions within the past two years that could damage their organization’s reputation if made public, yet no internal response was taken. This lack of action highlights a critical gap in ethical oversight and accountability.

WHAT BREEDS MISCONDUCT
The survey identifies several root causes of integrity incidents globally, including failure of financial processes and controls (27%), lack of internal resources to manage compliance and integrity activities (27%), employees not understanding policy and requirements (26%), and lack of appropriate tone from senior leadership (25%).

Equally significant, 45% of global respondents who reported integrity incidents attribute them to poor leadership tone or management pressure. This issue is compounded by the apparent reluctance among leaders to address misconduct.

Such factors contribute to an environment conducive to misconduct, emphasizing the need for robust controls, resources, and leadership commitment to foster a culture of integrity.

HIGH COST OF LOW INTEGRITY
Misconduct is an unpleasant reality, surfacing even within the most ethical organizations. Corporate infractions come at a high cost — not just in resources spent on internal investigations and remediation but also in fines and penalties paid to government regulators.

For instance, recent research indicates that corporate fraud shaves approximately 1.6% off a company’s equity value each year. In monetary terms, that equates to $830 billion in 2021 alone.

But the costs extend beyond the financial. A top-down, all talk, no walk mentality erodes trust both within the organization and in the public eye, placing the company’s reputation and financial health in jeopardy.

BUILDING AN INTEGRITY-FIRST CULTURE
Embracing the following integrity-first approaches — which put the right programs in place to drive behavior to create a strong culture and a strong belief in their commitment to integrity — can help organizations keep pace with evolving regulations and increasing societal expectations:

Lead from the top. Integrity can’t be built or sustained with all talk and no action. Organizations need to focus on preventing and addressing misconduct by starting from the top. Moreover, leaders need to listen and practice what they preach to instill integrity further down the line. Words alone won’t inspire integrity; leadership action is a must.

Design and implement a structure to execute strategy. To prevent unethical actions from the top down, organizations must implement robust governance structures within their integrity programs and strategies. Breaking down silos is also crucial to encourage a “speak up” culture against any misconduct.

Strengthen a culture of integrity across the organization. Organizations must recognize that integrity is a collaborative endeavor, not merely a stand-alone function. Embedding compliance directly into operations—from new business development to vendor payments—transforms corporate policies into actionable workflows.

Boost awareness, training and communication. The report indicates that fewer than 47% of management teams frequently communicate to their employees the importance of behaving with integrity. Making the rationale behind policies crystal clear fosters a resilient organization capable of thriving in both good and bad times.

Create a virtuous circle of integrity. In times of rapid change and difficult market conditions, maintaining, let alone enhancing, corporate integrity can seem daunting. But it is precisely in these challenging times that integrity must not only be preserved but also prioritized.

This article is for general information only and is not a substitute for professional advice where the facts and circumstances warrant. The views and opinion expressed above are those of the author and do not necessarily represent the views of SGV & Co.

 

Roderick M. Vega is the Forensic and Integrity Services Leader of SGV & Co.

Cheng steps down as manager of PHL women’s football team

JEFFERSON CHENG — PWNT

BUSINESSMAN JEFFERSON CHENG, a key piece of the recent success of the Philippine women’s football team program, has stepped down as team manager of the Filipinas.

Mr. Cheng, the Filipinas’ chief backer and manager in their rise from minnows to a FIFA Women’s World Cup competitor, cited differences in priorities and goals with unnamed parties, presumably the current Philippine Football Federation leadership, as primary reason.

“For several months, we tried our best to make things work, under new and very different circumstances. Unfortunately, the situation is not workable,” Mr. Cheng said in a statement on Sunday.

“Our priorities and goals do not align, and the PWNT (Filipinas) organization that we worked hard to develop in the past years is incompatible with current methods,” he added.

Under Mr. Cheng’s management, the Filipinas made history after history on the international stage.

The Pinay booters, boosted by the entry of topnotch recruits and regular high-level training camps and tournaments overseas, reached the semis of the 2022 AFC Women’s Asian Cup in India, which served as their ticket to the following year’s Women’s World Cup (WC).

A few months later, they netted a bronze medal in the 31st Southeast Asian Games in Vietnam — the country’s first football medal in the Games since 1985 — then followed it up with a milestone gold in the Asean Football Federation Women’s Championship on home soil.

They reached the pinnacle of success by scoring a historic 1-0 upset of host New Zealand in their WC debut in 2023.

“I want to thank all of you for the support and kindness that you have shown me. It is through you that our efforts have not gone unnoticed and I am grateful to have shared some of the best football experiences with all of you,” said Mr. Cheng.

It’s not immediately known whether Marc Torcaso, whom Mr. Cheng hired after the departure of the team’s World Cup mentor Alen Stajcic, will continue to coach the Filipinas following his departure. — Olmin Leyba

Watanabe assured of Paris Games berth — Carter

KIYOMI WATANABE — PHILSTAR FILE PHOTO

GOOD as in.

Philippine Judo Federation Secretary-General Dave Carter recently said Kiyomi Watanabe is virtually assured of a berth in the Paris Olympics set next month as a recipient of one of the two continental quotas allotted for Asia.

“Kiyomi (Watanabe) is good as in but the official announcement will come from the IFJ (International Judo Federation),” said Mr. Carter.

The IFJ announcement will come Tuesday.

The four-time Southeast Asian Games gold winner is currently ranked No. 92 in the women’s -63-kilogram Olympic qualifying ratings where the top 17 get the Paris ticket.

Although the Filipina-Japanese judoka has ranked lowly, she should still book a berth since only one per country can make the Olympic cut per weight category and gender.

Also, 10 quota places for each gender for Asia will also be given in each weight division.

Ms. Watanabe should be one of them.

Mr. Carter said Ms. Watanabe is currently training and is scheduled to fly to the French capital on July 22, or five days before the judo event, which is slated July 27 to Aug. 3.

It will be the second Olympics for Ms. Watanabe after making the cut in Tokyo three years ago.

“Kiyomi (Watanabe) is training hard and will proudly represent the country,” said Mr. Carter. — Joey Villar

Nike introduces new ’24 Gilas Pilipinas basketball team kit

JUNE MAR FAJARDO

IN a moment to celebrate a summer of sport, Nike reveals the 2024 Gilas Pilipinas national team kits for the men’s, women’s, 3X3, and youth basketball teams. Players will be wearing the most athlete-informed, data-driven, and visually unified team kit that the brand has ever produced.

To create the kit, Nike design teams first listened to the voice of the athlete, finding out their needs and preferences, then obsessed about every detail. The goal was to offer options that met athletes’ desires for choice, comfort, and performance.

Based on 4D motion-capture data algorithmically honed with pixel-level precision and engineered specifically for each competition, the kit was inspired by the distinct identity and diverse community that the country and the sport represent. The result was team kits that sport an entirely new chassis designed to answer the athletes’ preference for mobility and breathability and engineered to the exact specifications of the body in motion.

Gilas Pilipinas women Under 18 starts bid for Division A promotion against Maldives in China

Game Monday
(Futian Sports Park, Shenzhen, China)
4:30 p.m. — Philippines vs Maldives

GILAS PILIPINAS women begin its quest for Division A promotion against Maldives in the opener of the 2024 FIBA Under 18 (U18) Women’s Asia Cup Division B at the Futian Sports Park in Shenzhen, China.

Game time is at 4:30 p.m. with the Filipina ballers eyeing a flying start to their qualification bid in the bigger stage among the Asia’s titans. The wards of coach Julie Amos brim with confidence in getting the job done following a dominant performance in the Southeast Asia Basketball Association (SEABA) Qualifiers marked by an average winning margin of 37.6 points.

Ava Fajardo, Gabby Ramos, Alicia Villanueva, Tiffany Reyes, Maria Lapasaran, Ashlyn Abong and Margarette Duenas will spearhead Gilas, which clobbered Thailand, 103-58, Malaysia, 100-68, and Indonesia, 73-37 en route to Division B qualification.

In the Division B, Gilas will also duke it out against Lebanon on Tuesday and Syria on Wednesday in Group B with hopes of finishing in the top two for an automatic semifinal ticket.

Group A in the second-level Asian tourney running until the weekend features Iran, Samoa, Hong Kong and Kyrgyzstan.

Only the champion team from Division B will gain a promotion to Division A, where Australia, Japan, China, South Korea, New Zealand and Chinese Taipei as well as former Division B winners Indonesia and Malaysia will also slug it out simultaneously in China for Asian supremacy.

The Gilas U16 team had already achieved the feat in its age bracket, ruling the Division B via sweep last year to barge into the Division A as the newest squad.

Under the overall guidance of program director and women’s national team head coach Patrick “Pat” Aquino, that dream for the U18 team this time around is for the taking in Shenzhen. — John Bryan Ulanday

Pagdanganan slips to joint 25th place in KPMG tilt

BIANCA PAGDANGANAN’S title bid in the KPMG Women’s PGA Championship hit a major snag as she struggled with a two-over 74 in the third round Saturday in Sammamish, Washington.

After back-to-back rounds of 72, Ms. Pagdanganan managed only three birdies against five bogeys at the challenging Sahalee Country Club this time to slip seven places down to joint 25th.

Just six shots off the pace after two rounds, the 26-year-old Pinay, with her 218, now trails Korean leader Amy Yang (209 after a 71) by nine strokes going to the last 18 holes of the prestigious major.

ICTSI-backed Ms. Pagdanganan actually had a promising start on moving day as she gunned down two birdies in the first six holes. But she lost steam, dropping a shot on Nos. 8, 9, 12 and 13 before closing with a birdie-bogey in the last two holes.

Filipina-Japanese Yuka Saso, the reigning US Women’s Open titlist, had it worse as she coughed a five-over 77.

Ms. Saso, who barely made the weekend cut of five-over 149, fell to 67th with her 54-hole card of 226.

Mmess. Pagdanganan and Saso hope to finish strong in the final round to boost their confidence and create momentum for next week’s major, the Evian Championship in France, and ultimately the Paris Olympics.

Ms. Yang, meanwhile, is up by two against American Lauren Hartlage (69) and Japanese Miya Yamashita (70) who are at 211. One stroke back is second-round co-leader Sarah Schmelzel, who went two-over on moving day for 212. — Olmin Leyba

Portugal coasts into Euro 2024 last 16 with victory over Turkey

DORTMUND, Germany — Bernardo Silva’s first goal at a major tournament, a calamitous own goal from Samet Akaydin and a Bruno Fernandes tap-in gave Portugal a comfortable 3-0 win over Turkey on Saturday to guarantee qualification for the last 16 as Group F winners.

Silva gave Portugal the lead in the 21st minute, rifling home after Nuno Mendes’ cross deflected kindly into his path before Mr. Akaydin failed to look and passed the ball beyond onrushing goalkeeper Altay Bayindir seven minutes later.

Mr. Fernandes effectively ended the contest after 56 minutes when Cristiano Ronaldo — who could have become the oldest goalscorer in European Championship history — selflessly passed to his former Manchester United teammate to tap home.

The victory secures Portugal’s progress while Turkey must avoid defeat on Wednesday to the Czech Republic, who drew 1-1 with Georgia earlier on Saturday, to be certain of qualifying for the knockout rounds.

Portugal started sharply and were unfazed by the deafening whistles from Turkey’s supporters when in possession, with Ronaldo drawing an easy save from Mr. Bayindir inside two minutes.

Turkey — who had lost all three of their previous European Championship games against Portugal without scoring — set up more defensively after they gave up multiple chances to tournament debutants Georgia in their opening match.

They nonetheless often played out from the back and the gamble almost paid off after 20 minutes, but 41-year-old defender Pepe’s last-man challenge stopped Orkun Kokcu from breaking clear.

Portugal scored shortly after through a quick break down the left, when Mr. Mendes played a dangerous ball across goal which Silva turned home for his first major tournament goal in his 15th game at either the World Cup or European Championship.

A defensive mix-up doubled their lead when Mr. Bayindir, who was in the side for Mert Gunok, wandered out of his goal to collect a misplaced pass from Joao Cancelo towards Mr. Ronaldo.

But, as Mr. Ronaldo and Mr. Cancelo remonstrated, Mr. Akaydin played a no-look backpass which rolled past Mr. Bayindir in slow motion and evaded Zeki Celik’s desperate slide to cross the line.

Kerem Akturkoglu forced a great save from Diogo Costa almost immediately after, but Turkey otherwise created precious few chances.

Turkey pressed late on for a goal that would not have changed the result but would have improved their goal difference. — Reuters

Brilliant Belgium back on track with 2-0 win over Romania

COLOGNE, Germany — A goal by Youri Tielemans after 73 seconds and a late one for Kevin De Bruyne gave Belgium a 2-0 win over Romania in an incredible, action-packed game on Saturday that set up a final round showdown with all four teams in Group E on three points.

It was a Euro 2024 Saturday night special played in an astonishing atmosphere in Cologne, with the only mystery being how there were only two goals.

It meant that, for the first time in European Championship history, all four teams in a group are on equal points after two rounds, following Ukraine’s 2-1 win over Slovakia on Friday. All outcomes are now available on the final night on Wednesday when Belgium play Ukraine and Slovakia play Romania, where four points could be enough to top the group but could also see a team eliminated.

Romania and Belgium have the advantage with a plus-one goal difference. Slovakia are on zero and Ukraine on -2 — with those goal differences the deciding factor should both games end level.

Lukaku thought he had got the second after an hour, slotting home confidently from a De Bruyne through ball, only for VAR to rule it out for offside — five days after he had two goals chalked off against Slovakia.

The incredible end-to-end action continued with Dennis Man clean through for Romania only to shoot wastefully straight at Casteels and then, incredibly, it was the Belgian keeper who set up the second 10 minutes from time with a Sunday league, route one goal.

He launched a goal kick that evaded everyone and the ever-switched on Mr. De Bruyne seized on it to tuck the ball home for what could prove a priceless goal should the calculators be needed to split the teams next week. — Reuters

Rookie coach Redick

If the grapevine is to be believed, the Lakers have finally hired JJ Redick to be their head coach. Considering that they were first linked to the broadcaster shortly after their elimination from the playoffs in early April, it’s fair to note that they did their due diligence. Along the way, they also touched base with the Pelicans’ James Borrego and went so far as make the Huskies’ Dan Hurley a $70-million offer that the latter subsequently rejected to great fanfare. In the end, though, their search led them back to their initial target.

Only time will tell if the Lakers and Redick were fated to be together, and if their partnership will reap success. To contend that he needs to exceed himself given the outsized expectations would be to understate the obvious. For one thing, he has absolutely no bench experience to tap; he will have to rely on 15 years and 1,050 games’ worth of burning rubber “in between the four lines,” as top-dog-to-be LeBron James likes to say, to make them competitive. For another, they don’t exactly have a well-constructed roster capable of rubbing elbows with the National Basketball Association elite.

Not that Redick won’t try. While he may be relatively wet behind the ears, there’s no question that he will be putting in the work required for him to make a good accounting of himself in the hot seat. He’s a hoops lifer armed with the brains and the temperament — and, yes, communication skills honed as a former player — to sell his vision. The process the Lakers went through may have been clunky at best, but it figures to have a significant upside should other pertinent factors likewise fall into place.

It’s a glass-half-full or glass-half-empty situation, to be sure, and the Lakers are banking on no small measure of hope to meet a favorable outcome. On the other hand, any and all alternatives they had, including that presented with Hurley on board, were no less uncertain. They’ve had seven hires prior to his since 2011, so who’s to say their eighth won’t pan out? Maybe it’s time they went outside the box.

 

Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994. He is a consultant on strategic planning, operations and human resources management, corporate communications, and business development.

Philippines not in business of starting wars, President Marcos tells soldiers

PHILIPPINE STAR/KJ ROSALES

By John Victor D. Ordoñez, Reporter

PRESIDENT Ferdinand R. Marcos, Jr. said on Sunday the Philippines is not in the business of instigating wars and would always aim to settle disputes peacefully, amid worsening confrontations with China at sea.

“In defending the nation, we stay true to our Filipino nature that we would like to settle all these issues peacefully,” he said in a speech to troops of the Western Command unit in charge of overseeing the South China Sea.

The Chinese embassy in Manila did not immediately reply to a Viber message seeking comment.

The Philippine military chief last week said bolo-wielding Chinese Coast Guard (CCG) men were behind the June 17 aborted resupply mission for Filipino troops stationed at Second Thomas Shoal in the South China Sea.

Second Thomas Shoal has been a flashpoint in recent months between the countries. The atoll lies within the Philippines’ 200-nautical mile maritime zone, which China also claims as its own.

Combined forces from China’s People’s Liberation Army Navy, coast guard and maritime militia worked together to stop the delivery of food and other supplies, with Chinese rigid hull inflatable boats ramming the rubber boats of the Armed Forces of the Philippines (AFP), military chief Romeo S. Brawner, Jr. said.

He added that Chinese forces aboard the inflatable boats were holding bolos while they were going after two AFP rubber boats trying to deliver supplies to BRP Sierra Madre, a World War II-era ship that Manila grounded at the shoal in 1999 to bolster its maritime claim.

A Filipino sailor lost his thumb, and vessels were damaged during the encounter, he said.

China has disputed the Philippine account, with a Foreign Ministry spokesperson saying on Thursday that lawful measures had been taken.

Mr. Marcos, who did not name China in his speech, commended the troops for exercising restraint “amidst intense provocation,” and said his country would always exercise its freedoms and rights in line with international law.

“In the performance of our duties, we will not resort to the use of force or intimidation, or deliberately inflict injury or harm to anyone,” he said. “We stand firm. Our calm and peaceful disposition should not be mistaken for acquiescence.”

Recent maritime run-ins between China and the Philippines, a US treaty ally in Southeast Asia, have made the highly strategic South China Sea a potential flashpoint between Washington and Beijing.

The United States has condemned China’s actions and reaffirmed its ironclad defense commitments against any attack on Philippine aircraft or vessels in the South China Sea under their Mutual Defense Treaty.

But the Philippines on Friday said there was no reason to invoke the treaty because China’s actions, which security officials have described as escalatory, could not be classified as an “armed attack.”

China claims almost the entire South China Sea, a conduit for more than $3 trillion of annual shipborne commerce, including parts claimed by the Philippines, Vietnam, Indonesia, Malaysia and Brunei.

COMMUNICATION LINES
In 2016, a United Nations-backed tribunal in the Hague voided China’s claims for being illegal.

“We are not in the business to instigate wars, Mr. Marcos said. “Our great ambition is to provide a peaceful and prosperous life for every Filipino. We refuse to play by the rules that force us to choose sides in a great power competition.”

Mr. Marcos should meet with Chinese President Xi Jinping to look for solutions to worsening tensions said Chester B. Cabalza, founder of Manila-based International Development and Security Cooperation.        

“Presidents Marcos and Xi should sit down and talk about mechanisms on how to de-escalate the tension in the West Philippine Sea and lay down a mutual agreement to halt further escalation of war,” he said in a Facebook Messenger chat.

He also said the Philippines should continue pushing joint resupply missions with its international allies if China refuses to cooperate.

Relations between the Philippines and China have soured under Mr. Marcos, who has pursued closer security ties with the US and other allies amid China’s growing assertiveness at sea.

US Secretary of State Antony Blinken last week spoke with Philippine Foreign Affairs Secretary Enrique A. Manalo on the phone to discuss Chinese actions in the South China Sea, which Manila and Washington have called escalatory.

Mr. Blinken said China’s actions “undermine regional peace and stability” and reaffirmed Washington’s commitment to its Mutual Defense Treaty with Manila.

“Dialogue is always going to be part of the policy of engagement between Manila and Beijing,” Don Mclain Gill, who teaches international relations at De La Salle University, said via Messenger chat. “What matters is that we continue and do not leave any gaps in our missions.”

“The Philippines has always stressed keeping all lines of communication with Beijing open,” Mr. Gill said. “However, China is becoming increasingly intolerant of any form of resupply.” — with Kyle Aristophere T. Atienza and Reuters

Security analysts advise vs announcing Manila’s SCS resupply schedules

AN AERIAL VIEW of the BRP Sierra Madre at the contested Second Thomas Shoal on March 9, 2023. — REUTERS

By Kyle Aristophere T. Atienza, Reporter

THE PHILIPPINES should not give in to Chinese aggression and should actively secure South China Sea (SCS) areas within its exclusive economic zone (EEZ), political analysts said, after a proposal to publicize the schedule of its resupply missions.

A recent standoff at Second Thomas Shoal, where Chinese forces towed and looted Philippine rubber boats trying to deliver supplies to a Navy outpost there was caused by Beijing’s calculated move and was not a misunderstanding, said Raymond M. Powell, a fellow at Stanford University’s Gordian Knot Center for National Security Innovation.

“Manila should be aware of this and look to avoid falling into the trap in which one side attempts to deescalate while the other exploits the opportunity,” he said in an X message at the weekend.

“One needs only to go back to 2012 and the Scarborough Shoal incident, and remember how this playbook was used before.”

The Chinese Embassy in Manila did not immediately reply to a Viber message seeking comment.

Executive Secretary Lucas P. Bersamin told a news briefing on Friday the National Maritime Council had proposed for the Philippines to announce the schedule of its rotation and resupply missions to avoid tensions.

“We don’t know if the reason for this (recent tension) is there was no prior knowledge on the part of China,” he said. “In the best interest of all parties, I think it’s a wise decision for the President to accept our recommendation to publicize the schedule [of] activities without giving up anything.”

Philippine Coast Guard (PCG) spokesman Jay Tristan Tarriela on Saturday said the council’s proposal had yet to be approved by President Ferdinand R. Marcos, Jr.

Chinese Coast Guard men with bladed weapons on June 17 boarded Philippine rubber boats and looted several rifles, actions that Philippine military chief Romeo S. Brawner, Jr. said only “pirates” do.

China’s Coast Guard also deployed tear gas, “blinding” strobe lights and sirens.

“The Chinese Coast Guard personnel had bladed weapons and our personnel fought with bare hands,” he told a news briefing last week.

A Filipino Navy officer on a rubber boat lost his right thumb when the Chinese Coast Guard rammed it, he said.

Mr. Bersamin has said China’s acts were not a reason to activate Manila’s defense’ treaty with Washington, noting that the encounter was probably a “misunderstanding or accident.”

“We are not yet ready to classify this as an armed attack.”

‘ILLEGAL USE OF FORCE’
Mr. Powell said Beijing does not look at situations such as the June 17 encounter as crises to be deescalated, “but rather as opportunities to be exploited.”

“Manila’s use of words like ‘accident’ or ‘misunderstanding’ will be exploited by Beijing’s active propagandists as ‘evidence’ that Beijing has the high ground,” he said.

He added that the Philippines should consult with the US under their Mutual Defense Treaty to assess “very clear threats to its sovereignty and territorial integrity.”

The PCG last year launched a transparency campaign that seeks to expose China’s aggressive acts within the Philippine EEZ including the use of water cannons and dangerous maneuvers.

“Publicizing the resupply and rotation missions’ schedule is not a way forward for any sovereign state,” Joshua Bernard B. Espeña, vice president at International Development and Security Cooperation, said in a Facebook Messenger chat. “That negates any changes made with the Philippine transparency initiative.”

He said the June 17 encounter was “far from being an accident,” adding that it was similar to the 2020 standoff between Chinese and Indian forces over a border dispute in which China used unconventional weaponry to avoid international attention.

The 1951 Mutual Defense Treaty between the Philippines and US compels both sides to help each other in case of an armed attack.

American officials including President Joseph R. Biden have repeatedly said that an armed attack on Philippine troops, vessels and other assets anywhere in the South China Sea would trigger the defense pact.

“We can expect the Chinese side to be more wieldy in using illegal use of force to test the mettle of Filipino security objectives,” Mr. Espeña said.

He urged the Philippines to speed up its rotation and resupply missions whether through airlifts or patrol boats. These should remain “unscheduled and unannounced.”

“The aim here is to keep the Chinese guessing whether Manila would escalate or use the Mutual Defense Treaty,” he added.

“Remember: Beijing is also anxious about Washington’s ability to build a coalition strike force in the region given how precision strike capabilities and amphibious and air forces are being put into place.”

Michael Henry Ll. Yusingco, a fellow at the Ateneo de Manila University Policy Center, said China uses “dangerous and unprofessional maneuvers because they know we can’t stop them.”

“Military hubris is evident in the way they operate and explain away their incursions in the West Philippine Sea,” he said in an e-mail. “Simply put, they are aggressive and overpowering because they can be.”

“So clashes with our ships and vessels can never ever be characterized as a mere misunderstanding or an accident,” he added.

This should compel the Philippine government to focus all its efforts on establishing a self-reliant defense force, he said.

“The most challenging aspect of this effort is to ensure the funds allocated for our military modernization do not end up in the pockets of corrupt public officials,” Mr. Yusingco said.

Cutting overreliance on the US for external defense is a “long arduous path” that calls for a “whole-of-nation effort,” he added. “The different sectors of civil society should now bring their full attention to what they need to contribute to this effort.”

Philip Arnold P. Tuaño, dean of the Ateneo School of Government, said in an e-mail the international community should realize that it’s in their best interest to push China to deescalate.

PHL told to adopt human rights-based approach in anti-illegal drug strategy

PHILIPPINE STAR/ MIGUEL DE GUZMAN

By Kenneth Christiane L. Basilio

THE GOVERNMENT should look at revising the country’s Criminal Code by integrating harm-reduction strategies, ensuring a human-rights-based approach to curbing the illegal drug trade, according to human rights groups.

Harm reduction strategies should focus on addressing the health aspects of drug use, Karapatan Secretary-General Cristina E. Palabay said in an e-mail.

“There should be a comprehensive review and revision of laws under the Revised Penal Code and comprehensive drugs legislation, considering harm-reduction strategies to ensure public health and human rights approaches are considered,” she told BusinessWorld.

More than 20,000 drug suspects died from July 1, 2016 to Nov. 27, 2017 in the Duterte government’s anti-drug operations, according to a 2017 year-end accomplishment report from his office.

Congress should also look at providing prosecutorial power to the Commission on Human Rights (CHR) so it could hold into account human rights violators, Carlos H. Conde, a senior researcher at the Asia division of Human Rights Watch, told BusinessWorld in a separate e-mail.

“The CHR needs to be given teeth, specifically prosecutorial power, and to ensure it has all the resources it needs to carry out its mandate,” he said.

The House of Representatives committee on human rights is investigating extrajudicial killings and human rights violations under ex-President Rodrigo R. Duterte’s deadly drug war.

But Mr. Conde said the committee is “not entirely clear” about what it wants to achieve.

“Do they want amendments to existing laws? Do they have other specific proposed laws in mind?” he asked.

The hearing into the alleged human rights violations committed during the previous government could be a result of the spat between President Ferdinand R. Marcos, Jr. and Mr. Duterte, he added.

“Given the characters involved in the hearing, this looks like all for show,” he said. “This is quite possibly the result of the political infighting between the Duterte and Marcos camps.”

“The issue of extrajudicial killings in the drug war has become a convenient political weapon and is clearly being used as a leverage against the Dutertes,” Mr. Conde added.

The House committee could help hold the perpetrators of alleged human rights violations during Mr. Duterte’s drug war accountable if it’s being pursued with “genuine intent,” Ms. Palabay said.

“The inquiry can bolster the results of the preliminary examination of the International Criminal Court (ICC) and thus should result in not only pushing for the ICC’s investigation, but for the Philippines’ re-entry to the ICC,” she said.

The Philippines withdrew from the ICC in 2019 after the tribunal signaled its intent to investigate Mr. Duterte’s drug war.

The House committee will continue its hearings on Tuesday and Wednesday.

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