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In Mexico, a reporter published a story. The next day he was dead

THE MEXICAN FLAG flutters during the National Flag Day event in Iguala, Guerrero State, Mexico, Feb. 24, 2021. — REUTERS

MEXICO CITY — Just after sunset on Thursday, Feb. 10th, two men in a white Dodge Ram pickup pulled up in front of Heber Lopez Vasquez’s small radio studio in southern Mexico. One man got out, walked inside and shot the 42-year-old journalist dead. Mr. Lopez’s 12-year-old son Oscar, the only person with him, hid, Mr. Lopez’s brother told Reuters.

Mr. Lopez was one of 13 Mexican journalists killed in 2022, according to the Committee to Protect Journalists (CPJ), a New York-based rights group. It was the deadliest year on record for journalists in Mexico, now the most dangerous country for reporters in the world outside the war in Ukraine, where CPJ says 15 reporters were killed last year.

A day earlier, Mr. Lopez — who ran two online news sites in the southern Oaxaca state — had published a story on Facebook accusing local politician Arminda Espinosa Cartas of corruption related to her re-election efforts.

As he lay dead, a nearby patrol car responded to an emergency call, intercepted the pickup and arrested the two men. One of them, it later emerged, was the brother of Espinosa, the politician in Mr. Lopez’s story.

Ms. Espinosa has not been charged in connection with Mr. Lopez’s killing. She did not respond to multiple requests for comment and Reuters could not find any previous comment she made about her role in corruption or on Mr. Lopez’s story.

Her brother and the other man remain detained but have yet to be tried. Their lawyer did not respond to multiple requests for comment.

“I already stopped covering drug trafficking and corruption and Heber’s death still scares me,” said Hiram Moreno, a veteran Oaxacan journalist who was shot three times in 2019, sustaining injuries in the leg and back, after writing about drug deals by local crime groups. His assailant was never identified. “You cannot count on the government. Self-censorship is the only thing that will keep you safe.”

It is a pattern of fear and intimidation playing out across Mexico, as years of violence and impunity have created what academics call “silence zones” where killing and corruption go unchecked and undocumented.

“In silence zones people don’t get access to basic information to conduct their lives,” said Jan-Albert Hootsen, CPJ’s Mexico representative. “They don’t know who to vote for because there are no corruption investigations. They don’t know which areas are violent, what they can say and not say, so they stay silent.”

President Andres Manuel Lopez Obrador’s spokesman did not respond to a request for comment about attacks on the media.

Since the start of Mexico’s drug war in 2006, 133 reporters have been killed for motives related to their work, CPJ determined, and another 13 for undetermined reasons. In that time Mexico has registered over 360,000 homicides.

Aggression against journalists has spread in recent years to previously less hostile areas — such as Oaxaca and Chiapas — threatening to turn more parts of Mexico into information dead zones, say rights groups like Reporters Without Borders and 10 local journalists.

Mr. Lopez was the second journalist since mid-2021 to be murdered in Salina Cruz, a Pacific port in Oaxaca. It nestles in the Isthmus of Tehuantepec, a skinny stretch of land connecting the Gulf of Mexico and the Pacific that has become a landing spot for precursor chemicals to make fentanyl and meth, according to three security analysts and a DEA source.

Mr. Lopez’s last story, one of several he wrote about Ms. Espinosa, covered the politician’s alleged efforts to get a company constructing a breakwater in Salina Cruz’s port to threaten workers to cast their vote for her reelection or else be fired.

The infrastructure was a part of the Interoceanic Corridor — one of Mr. Lopez Obrador’s flagship development projects in southern Mexico.

Jose Ignacio Martinez, a crime reporter in the isthmus, and nine of Mr. Lopez’s fellow journalists say since his murder they are more afraid to publish stories delving into the corridor project, drug trafficking and state collusion with organized crime.

One outlet Reuters spoke to, which asked not to be named for fear of reprisals, said it had done an investigation on the corridor, but did not feel safe to publish after Mr. Lopez’s death.

President Lopez Obrador’s spokesman did not respond to a request for comment about corruption accusations related to the corridor.  

THE MECHANISM
In 2012 the government established the Mechanism for the Protection of Human Rights Defenders and Journalists.

Known simply as the Mechanism, the body provides journalists with protections such as panic buttons, surveillance equipment, home police watch, armed guards and relocation. Since 2017, nine Mechanism-protected reporters have been murdered, CPJ found.

Journalists and activists may request protection from the Mechanism, which evaluates their case along with a group of human rights defenders, journalists and representatives of nonprofits, as well as officials from various government agencies that make up a governing board. Not all those who request protection receive it, based on the analysis.

At present there are 1,600 people enrolled in the Mechanism, including 500 journalists.

One of those killed was Gustavo Sanchez, a journalist shot at close range in June 2021 by two motorcycle-riding hitmen. Mr. Sanchez, who had written critical articles about politicians and criminal groups, enrolled in the Mechanism for a third time after surviving an assassination attempt in 2020. Protection never arrived.

Oaxaca’s prosecutor at the time said Mr. Sanchez’s coverage of local elections would be a primary line of investigation into his murder. No one has been charged in the case.

Mr. Sanchez’s killing triggered Mexico’s human rights commission to produce a 100-page investigation into authorities’ failings. Evidence “revealed omissions, delays, negligence and breach of duties by at least 15 public servants,” said the report.

Enrique Irazoque, head of the Interior Ministry’s department for the Defense of Human Rights, said the Mechanism accepted the findings, but highlighted the role local authorities played in the protection lag.

Fifteen people within government and civil society told Reuters the Mechanism is under-resourced given the scope of the problem. Mr. Irazoque agreed, though he noted its staff of 40 increased last year to a staff of 70. Its 2023 budget increased to around $28.8 million from $20 million in 2022.

In addition to the shortage of funding, Mr. Irazoque said that local authorities, state governments and courts need to do more, but there was a lack of political will.

“The Mechanism is absorbing all the problems, but the issues are not federal, they are local,” he said in an interview with Reuters.

More convictions are what Mr. Irazoque believes are most needed, saying the lack of legal repercussions for public officials encourages corruption.

Impunity for journalist killings hovers around 89%, a 2021 report from the Interior Ministry, which oversees the Mechanism, showed. Local public servants were the biggest source of violence against journalists, ahead of organized crime, the report found.

“You would think the biggest enemy would be armed groups and organized crime,” said journalist Patricia Mayorga, who fled Mexico after investigating corruption. “But really it’s the ties between those groups and the state officials that are the problem.”

Many Mexican journalists killed worked for small, independent, digital outlets that sometimes only published on Facebook, noted Mr. Irazoque, saying their stories dug deep into local political issues.

Mexico’s National Association of Mayors (ANAC) and its National Conference of Governors (CONAGO) did not respond to requests for comment about the role of state and local governments in journalist killings or allegations of corrupt ties to crime groups.

President Lopez Obrador frequently pillories the press, calling out reporters critical of his administration and holding a weekly segment in his daily news conference dedicated to the “lies of the week.” He condemns the murders, while accusing adversaries of talking up the violence to discredit him.

Mr. Irazoque says he has no evidence the president’s verbal attacks have led to violence against journalists. Mr. Lopez Obrador’s spokesman did not respond to a request for comment.

“What type of life is this?,” journalist Rodolfo Montes said, eyeing security footage from inside his home where the Mechanism, in which he first enrolled in 2017, had installed cameras with eyes on the garage, street and entryway.

Years earlier, a cartel rolled a bullet under the door as a threat, and he has been on edge ever since. An entire archive box of threats spread over a decade sat in the corner. Looking down at his phone after a cartel threatened his 24-year-old daughter just a few days before, he said, “I’m living, but I’m dead, you know?” — Reuters

China reports almost 13,000 new COVID-related deaths for Jan. 13-19

REUTERS

BEIJING — China reported almost 13,000 deaths related to COVID-19 in hospitals between Jan. 13 and 19, adding to the nearly 60,000 in the month-or-so before that, as its experts say the wave of infections across the country has already peaked.

The death toll update, from China’s Center for Disease Control and Prevention, comes amid doubts over Beijing’s data transparency and remains extremely low by global standards.

Hospitals and funeral homes have been overwhelmed since China abandoned the world’s strictest regime of COVID controls and mass testing in early December, which had caused significant economic damage and stress.

That abrupt policy U-turn, which followed historic protests against the curbs, unleashed COVID on a population of 1.4 billion that had been largely shielded from the disease since it emerged in the city of Wuhan in late 2019.

The death count reported by Chinese authorities excludes those who died at home, and some doctors have said they are discouraged from putting COVID on death certificates.

China on Jan. 14 reported nearly 60,000 COVID-related deaths in hospitals between Dec. 8 and Jan. 12, a huge increase from the 5,000-plus deaths reported previously over the entire pandemic period.

Spending by funeral homes on items from body bags to cremation ovens has risen in many provinces, documents show, one of several indications of COVID’s deadly impact in China.

Some health experts expect that more than one million people will die from the disease in China this year, with British-based health data firm Airfinity forecasting COVID fatalities could hit 36,000 a day this week.

As millions of migrant workers return home for Lunar New Year celebrations, health experts are particularly concerned about people living in China’s vast countryside, where medical facilities are poor compared with those in the affluent coastal areas.

About 110 million railway passenger trips are estimated to have been made during Jan. 7-21, the first 15 days of the 40-day Lunar New Year travel rush, up 28% year-on-year, People’s Daily, the Communist Party’s official newspaper reported.

A total of 26.23 million trips were made on the Lunar New Year eve via railway, highway, ships and airplanes, half the pre-pandemic levels, but up 50.8% from last year, state-run CCTV reported.

The mass movement of people during the holiday period may spread the pandemic, boosting infections in some areas, but a second COVID wave is unlikely in the near term, Wu Zunyou, chief epidemiologist at the China Center for Disease Control and Prevention, said on Saturday on the Weibo social media platform.

The possibility of a big COVID rebound in China over the next two or three months is remote as 80% of people have been infected, Wu said. — Reuters

Centeno bows to Fisher, 9-7, in quarterfinals of world pool

SOUTHEAST ASIAN GAME gold medalist Chezka Centeno. — PHILSTAR FILE PHOTO

CHEZKA Centeno’s bid to become the country’s first world women’s champion came to a complete stop as she fell to pool titan Allison Fisher, 9-7, in Saturday’s quarterfinals in Atlantic City, New Jersey.

The 23-year-old reigning Asian titlist gave it her best but it was the mighty, battle-scarred 54-year-old Brit, who owns the most world 9-ball crown with four, who prevailed in the end.

The Southeast Asian Games gold medalist came in their quarterfinal showdown oozing with confidence following a morale-boosting 9-3 triumph over Belarus’ Margaret Fefilova in the round-of-16 a couple of hours before.

But she ran into the rock-solid and indomitable Ms. Fisher, who came through with all the answers when needed.

On her way to the knockout playoff round, Ms. Centeno hurdled Ms. Fefilova (7-6), American Dawn Hopkins (7-4) and countrywoman Ruben Amit (7-5).

Ms. Amit, a two-time world 10-ball titular whose best finish in this annual event was second less than a decade ago, did not make it past the eliminations after succumbing to Korean Seoa Sep, 7-3.

It was stinging both for both Philippine bets as they came here eyeing to claim that historic world crown. Maybe next year. — Joey Villar

VSCT turning Philippines into an international cycling powerhouse

THE VICTORIA SPORTS PRO CYCLING TEAM is presented before the media and the public during its launch Saturday at the Victoria Sports Tower in Quezon City. From left: Jay Oconer, Jerry Aquino, Marcio Barbosa, Pedro Paulinho, Andrei Cardoso, Jose Mendes, Daniel Carino, Pako Ochoa, Ean Cajucom, Luis Krog, Kelvin Mendoza, Micael Isidoro (Sports Director), Jobert Catina (Rider Care and Mechanic) and Rayzon Galdonez (Asst. Sports Director). — PHILSTAR FILE PHOTO

VICTORIA Sports Cycling Team (VSCT) has finally introduced itself as the country’s newest king of the road, ready to fly the flag higher in major international races and further elevate the local cycling scene.

Composed of a mix of seasoned and young home bets with reinforcements from Portugal, the 11-man VSCT pro team hit the road running over the weekend — starting with the official team launch at the Victoria Sports Tower and community ride in Quezon Memorial Circle.

“What we built today is a combination of young Filipino and experienced Portuguese talents. We have a good chance of not only getting in the Top 5 or Top 10 but the top spot in international races,” said leader Pako Ochoa of the VSCT owned by the New San Jose Builders, Inc.

Joining him in the stacked team are compatriots Jhay Oconer, Kelvin Mendoza, Luis Krog, Ean Cajucom, Daniel Cariño and the veteran Jerry Aquino with Portuguese stalwarts Márcio Barbosa, Pedro Paulinho, José Mendes and André Cardoso, who boast a stacked resume highlighted by a bevy of stints in European world tour races.

Another Portuguese Micael Isidoro, a world pro cyclist himself, is at the helm as the sports director with Atty. Franco Lacandalo (Team Representative), Jobert Catina (Rider Care and Mechanic) and Rayzon Galdonez (Assistant Sports Director) serving as Filipino officials.

VSCT has set its sights on conquering roads overseas starting with a planned stint in Dubai this month followed by races in Portugal, Taiwan, Japan and Malaysia, all sanctioned by the International Cycling Union (UCI).

But more than that, VSCT with the backing of San Miguel Corp., Banco De Oro, SM, Grab Philippines, and Kevin Wong, is up for a mountainous challenge of turning the Philippines to a cycling powerhouse.

“One of our main goals is to elevate Philippine cycling. We want to bring in new technology and knowledge from other countries. We’re trying to push the limit of our athletes, that will eventually push the standard of Philippine cycling,” added Mr. Ochoa.

VSCT is also backed by Gruppo Innovare Corp.-Specialized Philippines, Neo Zigma Cycle Corp.-Shimano and PRO, Cofides Competição, Cebu Pacific, Rudy Project, Manuel L. Quezon University, Las Casas Filipinas de Acuzar, VS Hotel, and Schroeder’s Deli. — John Bryan Ulanday

Patrick Mahomes returns to lead Chiefs past Jags, into AFC championship

PATRICK Mahomes was badly limping around on his right ankle early in the second quarter and Kansas City Chiefs coach Andy Reid had a message for him: Either go to the locker room for examination or sit out the rest of the game.

Mr. Mahomes threw his helmet down to the ground in response, but it turned out the headgear slam wasn’t his last toss of the day.

Mr. Mahomes returned from the ankle injury for the second half and Travis Kelce caught two touchdown passes as the Chiefs recorded a 27-20 victory over the visiting Jacksonville Jaguars on Saturday to advance to the AFC Championship Game for the fifth straight season.

The top-seeded Chiefs will face either the second-seeded Buffalo Bills or third-seeded Cincinnati Bengals in the AFC title game. The Bills and Bengals meet Sunday.

Mr. Mahomes missed most of the second quarter due to the ankle injury but X-rays were negative. He completed 22 of 30 passes for 195 yards and two touchdowns, and backup quarterback Chad Henne also threw a scoring pass.

Mr. Kelce’s 14 receptions (for 98 yards) tied for third most in NFL postseason history and Marquez Valdes-Scantling added a touchdown catch for Kansas City. Nick Bolton (fumble recovery) and Jaylen Watson (interception) each had key takeaways in the fourth quarter.

The five straight visits to the conference championship game match the Oakland Raiders (1973-77) for the second-longest streak in AFC title game history. The New England Patriots hold the record of eight straight from 2011-18.

Trevor Lawrence was 24-of-39 passing for 217 yards, one touchdown and one interception for the fourth-seeded Jaguars. Travis Etienne rushed for a touchdown, Christian Kirk had a scoring reception and two-time NFL tackles leader Foyesade Oluokun had 14 stops.

Jacksonville was one of the final four AFC teams after being 4-29 over the previous two seasons. The Jaguars posted the third-largest postseason comeback in NFL history in last weekend’s wild-card round when they recovered from a 27-0 deficit to beat the Los Angeles Chargers 31-30.

Mr. Lawrence, in his second season, was balancing the pain of the setback with the team’s stunning rise.

Jacksonville trailed by 10 entering the final quarter but traveled 75 yards on seven plays to move within 20-17 on Etienne’s 4-yard run with 11:49 remaining.

Mr. Mahomes countered with his own 75-yard touchdown drive. On the 10th play, he tossed a 6-yard scoring pass to Valdes-Scantling to push the lead back to 10 with 7:08 left.

Mr. Lawrence guided the Jaguars on another drive but Jamal Agnew fumbled the ball at the Kansas City 4-yard line with Mr. Bolton recovering with 5:29 remaining.

On Jacksonville’s next drive, Mr. Lawrence was intercepted by Mr. Watson with 3:48 left. Riley Patterson later kicked a 48-yard field goal with 25 seconds remaining but his ensuing onside kick was recovered by Kansas City’s Kadarius Toney.

Mr. Mahomes was hurt late in the first quarter on a play in which he was tackled by Jacksonville’s Corey Peters and Arden Key. Mr. Mahomes fell awkwardly to the ground as Mr. Key landed on Mahomes’ right lower leg.

Mr. Henne replaced Mahomes with 9:59 left in the second quarter and drove the Chiefs 98 yards on 12 plays for a touchdown.

But Mr. Mahomes returned at the outset of the second half with the ankle heavily taped. He didn’t appear overly hindered. — Reuters

Top seed Swiatek knocked out by Wimbledon champ Rybakina

MELBOURNE — World number one Iga Swiatek crashed out of the Australian Open on Sunday with a 6-4 6-4 defeat by Wimbledon champion Elena Rybakina on Rod Laver Arena.

Kazakhstan’s Ms. Rybakina advanced to the quarter-finals of the season’s opening Grand Slam for the first time with an impressive display against the misfiring Pole.

Ms. Rybakina, seeded 22nd, will face Latvia’s Jelena Ostapenko in the quarter-finals. Jelena Ostapenko stunned Coco Gauff 7-5 6-3 to reach the quarter-finals of the Australian Open on Sunday after putting on a power-hitting clinic.

Latvian Ms. Ostapenko has struggled to reach the heights of her French Open-winning days but the 17th seed simply overpowered the American at Margaret Court Arena.

Ms. Swiatek, the reigning French Open and US Open champion, got off to a rough start, surrendering her opening service game after receiving a warning from the chair umpire over the time she took for her pre-match preparations.

She fought back to level the scores by the fourth game but Ms. Rybakina would break again, clinically punishing the Pole’s second serve to take the opening set.

Ms. Swiatek looked to have recovered after she rattled off three straight games at the start of the second set behind a more aggressive forehand, only for Ms. Rybakina to haul herself level with another break of serve.

The Russia-born right-hander broke Ms. Swiatek again at 4-4 in the second set before holding her own serve in convincing fashion to close out the match.

Ms. Rybakina’s win sees her progress to a third Grand Slam quarter-final having also reached the last eight at the 2021 French Open before winning Wimbledon last year. — Reuters

Boston Celtics run winning  streak to nine by edging Raptors, 106-104

JAYLEN Brown scored 27 points and the visiting Boston Celtics defeated the Toronto Raptors 106-104 on Saturday to extend their winning streak to nine games, matching their longest of the season.

Reserves Grant Williams added 25 points and Malcolm Brogdon scored 23 for the Celtics. Payton Pritchard scored all 12 of his points in the fourth quarter.

The Celtics were without Jayson Tatum (wrist), and the Raptors did not have Fred VanVleet (rib).

Boston lost two players during the game. Marcus Smart (sprained right ankle) was helped off the court with 9.7 seconds left in the first half and did not return; Robert Williams III (knee) did not return for the second half. Each had two points.

Toronto’s O.G. Anunoby (ankle) left the game during the third quarter and did not return. He scored 12 points.

Pascal Siakam had 29 points, nine rebounds and 10 assists for the Raptors, who have lost three straight. Gary Trent Jr. added 22 points, Precious Achiuwa had 17 points and 11 rebounds and Scottie Barnes scored 10 points.

Boston opened the fourth quarter with a 9-0 run for a 90-85 advantage.

Mr. Pritchard’s 3-pointer gave Boston a 101-93 lead with 5:53 to play in the fourth. Trent had a steal and a 3-pointer to trim the margin to three with 3:50 to play. Mr. Trent tied the game at 103 on a 3-pointer with 2:23 left. Pritchard hit a go-ahead 3-pointer with 1:30 to play. Reuters

For love of the game

Disappointment was evident in Andy Murray’s face as he went about dissecting his third-round exit from the Australian Open yesterday. He had no illusions about hoisting the Norman Brookes Challenge Cup, and not because of the lengths unseeded competitors typically face in major championships. That said, he looked forward to making the second week of the year’s first Grand Slam tournament. He figured the work he had put in as he prepped for his stint Down Under set him up for a fruitful outcome.

As things turned out, Murray did not have enough in his tank to meet his quarterfinal-round objective. Perhaps he was simply too bushed to be at his best against Roberto Bautista Agut, what with his previous two matches both going the full route and keeping him on the court for a combined 10 hours and change. Arguably, he had no business even being at the Margaret Court Arena; he was a match point down against Matteo Berrettini in his opener, and two sets and two games down with hometown favorite Thanasi Kokkinakis serving for the win. For a survivor of two hip operations, it may have been a stretch to expect him to once again snatch victory from the throws of defeat.

Four years ago, Murray was given a farewell video tribute by Australian Open organizers who believed him ready to put his racket to storage. And as he bid goodbye to spectators at the John Cain Arena, he himself deemed his one-and-done appearance to be his last. Ironically, Bautista Agut was also who sent him packing then. This time, around, though, there are no thoughts of retirement coming with the defeat. His metal covering has held up well: It was supposed to help him walk pain-free; instead, it has enabled him to compete at the highest levels of the grueling sport anew.

That said, it’s fair to contend that Murray is closer to the end of a storied career. He has long had nothing left to prove, and if he’s still around, still plodding on, it’s because of sheer love of the game. And for his first two contests of 2023, the game loved him back. As he said, “I have a big heart.” Fans can only hope it continues to beat proudly for some time to come.

 

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.

The political cost of the Maharlika Investment Fund

SASUN BUGHDARYAN-UNSPLASH

I was discussing the recently approved third reading version of House Bill No. 6088 “Establishing the Maharlika Investment Fund, Providing for the Management, Investment, and Use of the Proceeds of the Fund, and Appropriating Funds Therefor,” the supposedly revised, “clean,” and upgraded version of the bill submitted by the economic managers, with some friends from the Foundation for Economic Freedom.

My friends’ conclusion is that the revisions, such as removing the Social Security System and Government Service Insurance System (SSS and GSIS) as funding contributors and reinstating legal review by the Office of Government Corporate Counsel, don’t fundamentally alter our objections to the creation of the Fund on the principles of fiscal prudence, additionality, Bangko Sentral ng Pilipinas (BSP) independence, and role of government in the economy. In other words, there’s no fiscal surplus to manage and no need for another institution to do what the Land Bank of the Philippines (LANDBANK) and Development Bank of the Philippines (DBP) are doing now. It will also weaken and compromise the BSP and strengthen the role of government in the economy where it has a record of failures and mismanagement.

As one of them quaintly put it, those revisions are just like “putting lipstick on a pig.”

I told my friends, however, that no matter how solid are their arguments, the politicians won’t listen to them. Politicians never listen to economic arguments. They think politically.

Proof, I said, is that after widespread protests and objections, the Congressmen removed the SSS and GSIS as funding sources. Not only did they remove them from the proposal, but codified the prohibition in Section 11: “Under no circumstance shall the GOCCs (government-owned or -controlled corporations) providing the social security of government employees, private sectors, workers and employees, and other sectors and subsectors, such as but not limited to the Government Service Insurance System, Social Security System, and Home Development Mutual Fund, be requested or required to contribute to the MIF. To protect the retirement and other social security benefits of their members, no part of the funds of said GOCCs shall accrue to the MIF.”

However, if we are to believe the cheerleaders and authors of the Maharlika Investment Fund (MIF), the MIF will yield fantastic returns, whether invested in infrastructure projects or in bonds and equities abroad. These returns are practically guaranteed, according to its supporters.

If that is so, then what’s the logic of excluding the SSS and GSIS members from participating in the supposed bonanza?

The answer is simple. It was politically toxic to be using SSS and GSIS funds. The Congressional retreat was due to political reasons. Politicians acting and thinking politically.

Those bright boys who came up with the MIF idea didn’t do their homework when they included the SSS and GSIS as major contributors to the Fund. There’s a reason why former President Ferdinand Marcos, Sr., for all his omnipotence, never touched SSS funds during his dictatorship. It was politically toxic and politically radioactive for him to have done so.

How do I know this? My driver, who hardly speaks to me about political matters, suddenly blurted out to me: Bakit nila pinakailaman ang aming pondo sa SSS? Pang-retirement namin ’yan. (Why are they using our funds in SSS? That’s for our retirement.)

I smiled because the incident confirmed to me what I knew all along. If the SSS and GSIS aren’t removed, the administration would burn in political hell early. It won’t be just employees like my driver who will loudly protest but also employers like the thousands of owners of micro-, small- and medium-sized enterprises (MSMEs) who contribute to the pension fund.

SYSTEMIC RISK
Therefore, the Congressmen turned to the hapless LANDBANK, DBP, and BSP to be the major contributors to the Fund. The question is, will this version be easy-peasy politically for the administration?

I contend that there will be a serious political cost to passing the MIF bill, the magnitude of which is dependent on the final version that’s passed into law and on the performance of the fund.

Where will the political cost come from?

It will come from the systemic risk that the MIF poses to the banking system in general and to the degradation of the banking regulator, BSP, as an independent and professionally run monetary authority.

How does the MIF pose a systemic risk to the banking system?

First, the capital which will be contributed represents 25% of the capital of LANDBANK and 33% of the capital of DBP. Any devaluation of the Fund, either through mismanagement, corruption, or just plain market timing and bad luck, will send shockwaves through the DBP and LANDBANK to the entire banking system. Don’t expect the rest of the banking system to remain unaffected if the two government financial institutions (GFIs), LANDBANK and DBP, become wobbly.

As former BSP Deputy Governor Diwa Guinigundo wrote: “Those behind the Maharlika bill may not realize it but they are undermining the financial system. If the GFIs fail because their funds are earmarked for Maharlika, it is likely that the other banks in the system could also catch fire. That will trigger contagion among the banks, especially those with shaky balance sheets following the two-year pandemic crisis.”

We must remember that the banking industry is sensitive to contagion. Savers sometimes act irrationally due to asymmetric information (savers don’t know what banks are doing with their money). It will be easy to spread negative rumors, especially since the MIF is a politically conceived and organized entity. Negative rumors, partly politically driven but with some basis in the MIF’s malperformance, can spread financial panic to the financial system.

Since the banking industry plays a vital role in the economy, matching savers with investors, the tremors in the industry will undermine macroeconomic stability.

Even assuming that the MIF is professionally run, it can’t insulate itself from market volatility. Reports state that all Sovereign Wealth Funds (SWFs), including the mighty Norwegian SWF, suffered market losses last year. Moreover, no stock is insulated from market volatility. Even a blue chip and professionally run PLDT saw its stock plummet by more than 20% when overspending on its capital budget was revealed. Because the MIF is essentially funded by debt from the banking system, its performance can transmit tremors to the entire banking industry.

Moreover, under the MIF, the BSP is a weaker and compromised institution in ensuring price and financial system stability. First, Section 11 mandates the BSP to give the financial institutions DBP and LB “regulatory relief.” This means that the BSP is supposed to look the other way when it comes to regulating DBP and LANDBANK but be strict with private banks. This creates a moral hazard.

Second, while it’s true that the country’s forex reserves won’t be used, the BSP is mandated to declare 100% of its cash dividends in the first two years of the Act to fund the MIF, effectively delaying the increased capitalization of the BSP as mandated by RA 7653 and further amended by RA 11211. In the succeeding fiscal years, BSP is required to remit 50% of its declared dividends to the Fund.

That the BSP will be used as a regular funding source for the MIF will undermine the mission and integrity of the monetary regulator. Income objectives, rather than price and exchange rate stability, will dominate BSP policy and regulations. There may come a time when the BSP loses money to defend the peso from appreciating too much (as had happened in 2012 when it lost billions) or when it must incur interest expenses to sterilize pesos used to buy dollars or when it does open market operations. But now under its new mandate to fund the MIF from its dividends, will it?

THE ERAP EXAMPLE
So what if the banking industry is at risk and the BSP is compromised, you say? Politicians hardly care if their own money isn’t at risk.

The oligarchs will care. They are heavily invested in the banking industry. Also, their non-bank companies’ financing depends on a stable and healthy financial system.

Let us recall the Estrada presidency and EDSA Dos. The oligarchs didn’t care a whit when former President “Erap” Estrada was pocketing money from jueteng, the illegal numbers game. They started caring, however, when Erap started intervening in the financial markets, facilitating the takeover of PLDT with the assistance of Mark Jimenez, and, more importantly, intervening in the merger between Equitable and PCI Bank. Those interventions in the financial markets on top of creating a port monopoly, criminal extortion, and other shenanigans alarmed the oligarchs. Thereafter, they seized the opportunity provided by Chavit Singson’s revelations about jueteng to have Erap impeached and ultimately deposed by people power under EDSA Dos.

The threats posed to the oligarchs by the crony capitalism of Erap will pale in comparison with the MIF. With its funding and its tax-free privileges, the MIF will become a financial behemoth. It can be used to threaten the oligarchs with a takeover or take substantial positions in their companies. Because it’s owned by the government and doesn’t have to pay taxes, whomever it chooses to partner with or bestow its favors on will have an undue advantage over whatever project it is involved in. Or, it can bail out cronies at inflated prices, but this will infuriate the non-cronies. With its financial firepower, it can be used to bully oligarchs and bend them to the will of the powers that be.

Furthermore, the country may get a ratings downgrade with the MIF. Under the bill, all debts of the MIF from the GFIs will be guaranteed by the National Government. This will tremendously increase the government’s contingent liability and may lead to a ratings downgrade. This will lead to increased borrowing costs for the government and private sector.

The political cost of the MIF is a less stable, rockier presidency.

There are political forces just waiting for President Bongbong Marcos (PBBM) to stumble and he may stumble badly with the MIF. There are the Yellow-leftist anti-Marcos diehards, waiting to launch another People Power revolt. They can still mobilize the urban professionals and the elite, as shown in the crowds that showed up at opposition candidate Leni Robredo’s rallies. There’s former President Rodrigo Roa Duterte, who is still extremely popular and who has never been comfortable with the candidacy of PBBM. With the MIF, PBBM will be tying his political fate to factors that will be beyond his control.

PBBM can’t rest easy just because he won handily. Campaigning is one thing, governing is another. His continuing failure to tackle food inflation will surely erode his lofty poll numbers. His handling of the police and military may seed discontent that can be used to destabilize him. More troubles may lie ahead but this will all pale in comparison should the MIF be misused or cause instability in the banking system.

His team isn’t thinking strategically. They could have conceptualized a different investment fund, perhaps funded by the privatization of the Philippine Amusement and Gaming Corp. (PAGCOR) or the sale of government prime properties such as the national penitentiary site in Muntinlupa or the land occupied by the NAIA 2 (Ninoy Aquino International Airport Terminal 2), with none of the risks to the financial system that the MIF will bring and with more flexibility for the political powers that control the fund.

The fall of former President Erap Estrada should serve as a cautionary tale to PBBM. Before PBBM, Erap enjoyed the largest electoral mandate and got afflicted with hubris. Like PBBM, Erap surrounded himself with technocrats but nobody dared speak truth to power. In the end, Erap behaved badly and made gross political miscalculations that eventually led to his downfall.

About the only presidential adviser speaking truth to power now is Presidential Legal Counsel Juan Ponce Enrile (JPE). He is a wizened and experienced politician-technocrat (He was Secretary of Finance and Commissioner of Customs at one time). He cautioned the President to review the MIF carefully. He says he does not want Marcos to be historically damaged, and even suggested that it is “safer” for the MIF to be created out of the general fund.

Yes, please, Mr. JPE, tell the President the MIF is not worth it politically.

(Note: Last Saturday, Rep. Joey Salceda indicated that Malacañang will endorse a radically different version of the MIF bill in the Senate, perhaps in recognition of the fundamental flaws of HB 6608. This, we must see.)

 

Calixto V. Chikiamco is a member of the board of IDEA (Institute for Development and Econometric Analysis).

totivchiki@yahoo.com

Hidden casualties: The impact of  COVID-19 on marginalized Filipinos

PHILIPPINE STAR/RUSSELL PALMA

As we approach three years since COVID-19 was declared an international emergency, we ought to examine how the pandemic has affected those at the margins, for whom the pandemic has taken a different toll than those at the center.

The past three years have taught us that no one experiences a global health crisis the same way. It’s by now a general agreement that while the virus itself may not discriminate, it has had a disproportionate effect on minoritized people.

An example of this is the alarming statistic which circulated early in the pandemic that Filipino nurses constitute only 4% of registered nurses in the US but accounted for nearly a third of COVID-related deaths among them.

Here in the Philippines, the uneven outcome, with the marginalized people being burdened most, is stark. The World Bank said that based on community surveys conducted in 2020 and 2021, “COVID-19 has taken a heavy toll on rural livelihoods. Loss of income and job opportunities were overarching challenges in poor communities in the Philippines.”

In mid-2022, I embarked on a year-long joint study sponsored by Action for Economic Reforms and the Samdhana Institute (a regional non-profit developmental organization based in Indonesia) to evaluate how the pandemic has affected marginalized people. The project involves two case studies of far-flung coastal local government units in disaster-prone Eastern Samar.

One insight I gained from the ongoing study is that for some Filipinos, the measures taken to curb the pandemic have been more devastating than the virus itself.

The coastal municipalities of Guiuan and Arteche, two of the most remote areas on Samar Island with populations of 53,000 and 16,000, respectively, had some of the lowest rates of infection in the country, with some barangays recording no cases at all. Despite this, local governments imposed many of the same protocols that were imposed in densely populated urban areas like Metro Manila, resulting in hunger and loss of livelihood for the farmers and fisherfolk of these towns.

Some protocols, such as only being allowed to fish at night, were confusing or disorienting to the fisherfolk. The local people found other pandemic measures, such as being forbidden by police to step outside their homes, oppressive.

But perhaps no pandemic measure has caused such long-term harm as distance learning has had on the young people of Guiuan and Arteche. Arguably, the children and youth from similarly situated municipalities across the country went through the same experience. Effective distance learning presupposes the presence of appropriate technologies like strong and consistent internet connectivity.

Guiuan, a second-class coastal municipality in the southernmost tip of Samar Island, suffers from a particularly weak cell signal. Internet connectivity is rare and expensive for the people of this town. Unlike Metro Manila, there are no online classes in Guiuan. Instead, “modular learning” was accomplished by teachers distributing worksheets for parents to take home to their children. Elementary and high school students would then accomplish these on their own (though some mothers reported accomplishing these for their children) by searching the answers online or sharing answers among themselves.

Parents reported higher costs since they had to pay for their children’s schooling as well as the added cost of internet and school supplies. Mothers, who bore the burden of care work, were affected by having to divide their time between their work and their children’s lessons. The lack of instruction caused by two years of distance learning has been particularly disadvantageous for younger children, some of whom still cannot read at grade four.

Meanwhile, in Arteche, a third-class coastal municipality in the northern end of Samar, students who attended university in Borongan (nearly three hours from Arteche) dropped out of college due to the difficulty of distance learning, compounded by the limited cell signal and internet connectivity. Some students found it impossible to learn without instruction and left their hometown to find work in Manila instead. Some older students received failing grades for being unable to turn in submissions on time.

Younger students devised a method around this: One student would buy mobile data, search for answers to their homework online, and share their answers with the rest of the class. As one barangay captain said, in his native Waray-Waray, “no one learned a thing.”

While distance learning was necessary and suitable for densely populated urban areas, it is difficult to say whether this was the correct course for geographically isolated rural towns like Guiuan and Arteche. Because of the peculiarities of their situation, such as the absence of cell signal in some barangays, the pandemic measures imposed on them have permanently altered the lives of many and worse, significantly set back the lives of others.

The conditions in these remote rural municipalities might be outliers, but they serve as a reminder that a one-size-fits-all approach to policymaking can impede the very same people it aims to serve.

It is easy to understand how leaders or policymakers, amid pandemic panic and unprecedented circumstances, are drawn to drastic options and general solutions without considering the peculiarities of the local situation. Our policymakers, national and local, have to imagine better ways for better outcomes especially for those at the margins.

 

Isabel Rodrigo is a Manila-based researcher working for Action for Economic Reforms.

The Game of the Generals

PHILIPPINE STAR/KRIZ JOHN ROSALES

Much has happened that has changed the Philippine military since Ferdinand E. Marcos, Sr. declared martial law in September 1972. One of the first things that Marcos Sr. did was to revise the order of battle for the military in the Bagong Lipunan (New Society) that was to be the gameboard of autocratic rule. (Ominously, Game of the Generals was a strategy board game designed and made popular during Martial Law.)

In 1972, the Armed Forces of the Philippines (AFP) was reduced by the retirement of the World War II-era officers and soldiers, and even the last 1942 graduates of the Philippine Military Academy who had completed their mandatory 30 years of service. It was a natural mandate to reorganize and expand the armed forces, from a force of 57,100 in 1971 to 113,000 personnel in 1976 — a significant 97.89% increase over a five-year period.1

“Marcos (Sr.) carried out the ‘largest reshuffle in the history of the armed forces’ when he forcibly retired 14 of the AFP’s 25 flag officers, including the AFP Chief of Staff, the AFP Vice-Chief of Staff, the commanding general of the Philippine Army, the Chief of the Philippine Constabulary (PC), the commanders of all four Constabulary Zones, and one third of all Provincial Commanders of the PC. Generals loyal to Marcos were allowed to stay in their positions past their supposed retirement age or were rewarded with civilian government posts.” Since the declaration of martial law until 1980, there were 349 officers and 830 enlisted personnel, or a total of 1,179 detailed outside the AFP.2

“This led to a loss of morale among the middle-ranks of the AFP, because it meant a significant slowdown in promotions and caused many officers to retire with ranks much lower than they would otherwise have earned.”3

“The abolition of civilian institutions like Congress, the weakening of the judiciary, and the outlawing of political parties, left the military as the only other instrumentality of the National Government outside of the Presidency. The military had been called to save the Republic and restore confidence in the ‘democratic traditions’ cherished by the Filipinos. In a country with no militaristic tradition — and where the military was traditionally low key — the AFP became very visible, performing a more expanded mission, such as security, law and order, administration of justice, greater management and administrative functions, and developmental, political and miscellaneous roles.”4

The system of patronage born of the dictator which seduced the top echelon of the armed forces was an unwanted child in the erstwhile close-knit military organization. Low morale festered, especially among the young officers who perhaps felt confused that the principles of Courage, Loyalty, and Integrity drilled into their brains and hearts at military school did not quite match and fit into the reality that they were experiencing in Martial Law.

“During the traditional PMA Alumni Parade at graduation time on 21 March (1985), some 300 young officers, mostly from Classes 1971 to 1984, broke away from the long line at the parade ground to display a banner marked ‘Unity Through Reforms.’ They wore T-shirts that said ‘We Belong.’ It was the day before the customary Commander-in-Chief’s address to the graduating class, thus marking the first public protest of the military during the Marcos regime.”5

“We Belong” (together, in democratic love and service to the country) versus “We bulong” (literally translated as “We whisper” and kowtow to the dictator-leader) divided the military like broken glass, never to be repaired. “We Belong” was formally organized as the “Reform the Armed Forces Movement” (RAM) that spearheaded the ousting of Ferdinand E. Marco, Sr. in the EDSA Revolution in February 1986. Defense Minister Juan Ponce Enrile, who sought refuge at Camp Aguinaldo because of an alleged assassination plot by a rival Marcos bigwig, and Chief of Staff Gen. Fidel Ramos then called on the people (through Cardinal Sin) to converge at EDSA, and history wrote the awesome victory of the return of democracy in the country.

It is utterly devastating to the collective consciousness that the EDSA Revolution seems to be losing its importance in history, as attempts are observed at revising history and decimating the passionate heroism of the people for freedom and rights. In succeeding leaderships after EDSA I, the military seems to still be considered as the key support for being in full control, and this is reinforced by the executive prerogative of the president to choose the Chief of Staff of the AFP.

But what might be a benign administrative act has degenerated into some sort of an unashamed reward system where retired generals are appointed by the president to top positions in the civilian government. The administrations of Corazon Aquino, Fidel Ramos, Joseph Estrada, Gloria Macapagal-Arroyo, and Benigno Aquino III named former men in uniform to key government agencies.

But the undisputed champion is Rodrigo Duterte, who appointed 59 retired military generals, police directors, admirals, and colonels to the Cabinet and other agencies, including government-owned corporations.6 Duterte also appointed 11 Chiefs of Staff who retired successively within months of each other, serving an average 202.5 days each among them. Before the end of Duterte’s term, Republic Act 11709 was enacted, directing that the AFP chief of staff, vice-chief of staff, deputy chief of staff, heads of the major services (Army, Navy, and Air Force), unified command commanders and inspector general will have a three-year term of office “unless sooner terminated by the President.”7

Some military men might bristle at insinuations that the “point system” of appointments (tongue-in cheek for “the lucky guy that the political power points his finger at… and chooses”) is instantly branded as unqualified and incompetent for the civilian position. Observers might caution not to judge unfairly and instead give the appointee a chance to prove himself. But there’s significant and exclusive work experience in the military which sets retired officers and soldiers apart from the ordinary citizen who understandably has self-centered priorities of survival and quality of life through the facility of a career. Soldiery has the mental set of altruistic service towards country and fellowmen — that working philosophy might be tested when the terms of engagement, as in a civilian appointment by a benefactor who would expect loyalty above all. To be more direct — should a retired general accept a position of power and influence, with generous compensation, and risk losing his independence and principles to pay for his debt of gratitude (utang na loob) towards his benefactor? For that is the quid pro quo of patronage.

What for must a retired officer further involve himself in politics? A retired (full) General can get lifetime pension of up to P190,975.88 per month, computed on 85% of highest base pay plus longevity pay for the maximum number of years served. (The pension lowers as the rank lowers, with the lowest, Brigadier General, still getting about P100,000 per month pension or close to this. The AFP retirement pension rates for all military ranks down to Private [who get close to P20,000 per month] are publicly displayed at the AFP Finance Center bulletin board in Camp Aguinaldo.) A military retiree does not have to forfeit or suspend receipt of pension if he/she would accept employment and compensation in another government office or agency. Perhaps the double compensation from government can be too tempting to refuse.

The pension paid to more than 137,000 eligible military retirees is P14,025,351,666 per quarter, or P4,675,117,222 per month.8 Because the AFP pension plan is unfunded (insufficient capital funding ab initio), this is taken directly from the 2023 General Appropriations Act, as it is funded from the national budget yearly, and shouldered directly from the current year revenues (from taxes and borrowings). The annual military pension of P56 billion is roughly 1% of the P5.268-trillion National Budget for Fiscal Year (FY) 2023.

Comes now the thought: might the retired generals co-opted to continue in high civilian government positions think of the country, and inhibit themselves from availing of more economic benefits and the indubitable opportunities of extended power and influence in government? In the US and other countries like France and Japan, there are ethical codes prohibiting certain retired government officials from working for civilian government offices or private enterprises for some years after government service.

Perhaps it can be inserted in the amended RA 11709 or a new law can be made that a retirement waiver is to be signed by those top brass who have been endowed with secured three- or four-year tenures, that they cannot accept civilian positions in government for at least two years after retirement from the military.

That should weaken the patronage culture in the military. A good move for all in the Game of the Generals.

1 Official Gazette of the Republic of the Philippines, Oct. 3, 1990

2 Ibid.

3 “The Davide Report: Political Change and Military Transition in the Philippines, 1966-1989: From the Barracks to the Corridors of Power.” Official Gazette of the Republic of the Philippines via the Republic of the Philippines National Government Portal (gov.ph)

4 Ibid.

5 Official Gazette citing Col. Hector M. Tarrazona, After EDSA, Vol. 1

6 newsinfo.inquirer.net, June 27, 2017

7 pna.gov.ph, May 17, 2022

8 pna.gov.ph, Jan. 13, 2023

 

Amelia H. C. Ylagan is a doctor of Business Administration from the University of the Philippines.

ahcylagan@yahoo.com

Jacinda Ardern’s resignation is the ultimate flex

NATO-FLICKR

THE corridors of power in both business and politics were designed by, and for, a very specific kind of leader: men.

That’s why it can feel particularly devastating when we see a woman like New Zealand Prime Minister Jacinda Ardern — who has managed to successfully navigate through what often seems like an impenetrable boys’ club — decide that she’s had it.

Ardern’s announcement that she just didn’t have “enough in the tank” to keep doing the job could be read as a concession that those unbalanced power dynamics had finally gotten to her. Not only did she face sagging opinion polls and a tough election battle ahead of her, but one in which she would likely have to endure the kind of misogynistic slights and outright attacks that have marked her time in the office.

And yet in the aftermath of her announcement, I keep returning to something former Xerox Corp. CEO Ursula Burns said to me for a 2021 article I wrote for Fortune about the ways the pandemic was altering the landscape for working women. Burns, who was the first Black woman to run a Fortune 500 company, was ready to see a world where women play by their own rules rather than follow ones that had been forced upon them. “I want them to actually have the chance to articulate out loud, ‘I don’t want to do this. Thank you for offering,’” she told me. “That’s true equity, that’s true equality — when you get the chance to turn the goddamn thing down.”

I prefer to think about Ardern’s departure through this lens. Stepping away from the big job, or adjusting your ambitions because the old ones don’t work with the life you want for yourself, is the ultimate power flex. And for Ardern, it really is not that surprising a move considering she has always seemed comfortable defying the mold of what we expect a leader to look and sound like: the youngest female head of government at age 37, only the second ever to give birth while holding office, and even now in how she’s framing her departure. It is difficult to picture a man in the same position admitting to some level of burnout.

Ardern’s decision feels different than the kind of “opting out” we used to talk about in the past. It’s also in keeping with some of the trends we’re seeing in the business world. Increasingly women are choosing to leave their jobs in order to create a new path, rather than just endure their current environment or disappear from the workplace altogether. McKinsey & Co.’s annual Women in the Workplace report from late last year found that “women are demanding more from work, and they’re leaving their companies in unprecedented numbers to get it.” Those in leadership roles were switching jobs at the highest rate in the history of the survey, and at higher rates than men.

New Zealand’s political climate may very well have made Ardern’s future as prime minister impossible and her departure inevitable. But by stepping down on her own terms, she’s rebelling against the status quo rather than simply falling victim to it. As Burns said, true equity and equality may be as simple as having the option and privilege of saying no to what’s expected of us. In a barrier-breaking run as prime minister, she may as well topple this last one on her way out the door.

BLOOMBERG OPINION