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Panasia Energy wins auction for Bataan power plant site

THE Power Sector Assets and Liabilities Management Corp. (PSALM) said Wednesday that it successfully auctioned the site of a former power plant in Limay, Bataan to Panasia Energy, Inc., which submitted the top bid of P1.02 billion.

In a statement, PSALM said the Limay site consists of 14 lots covering an area of about 139,054 square meters, which it declared suitable for redevelopment for industrial or energy projects. 

The company added that the site is located near the Limay Substation, which converts high-voltage transmission electricity to lower voltages for safe and efficient distribution to homes and businesses.

“Portions of these assets are also suitable for residential development as some areas are generally flat with rolling portions,” the company PSALM added. 

Panasia’s bid is about five times the valuation of the Landbank of the Philippines of P209.29 million, and four times the PSALM floor price of P250.43 million.

Pan Pacific Renewable Power Philippines Corp., Fort Pilar Energy, Inc., Panasia Energy, Inc., and individual bidder Laylani Latina De Vera submitted bids, while Sta. Clara International Corp. and Cordillera Hydro Corp. withdrew from the auction. Bellagio Holdings did not file a bid.

Panasia’s bid is still subject to post-qualification to validate the documents and information submitted by Panasia.

PSALM President and Chief Executive Officer Irene Joy J. Besido-Garcia said the high winning bid “is a major boost for PSALM’s efforts to raise privatization proceeds” which will be used to settle the financial obligations it assumed from the National Power Corp. — Bianca Angelica D. Añago

ADB to develop climate insurance scheme for MSMEs

THE Asian Development Bank (ADB) said Wednesday that it is developing a climate-risk insurance project for micro-, small-, and medium-sized enterprises (MSMEs) in the Philippines.

The project aims to come up with a sustainable business case and model for climate disaster insurance by studying the risk management needs of local MSMEs.

“MSMEs remain underserved and, in some instances, unreached by insurance markets, leaving them highly vulnerable to climate and disaster shocks,” the bank said.

The “climate-smart” insurance project will be supported by the Asia-Pacific Climate Finance Fund, a multi-donor trust fund managed by the ADB. The German government will also help fund the program.

“Small enterprises frequently lack access to effective risk management tools, such as climate risk insurance, to protect against climate and disaster shocks,” German Federal Ministry of Economic Cooperation and Development Director General Jürgen Zattler said.

“Promoting insurance access and adoption among small enterprises provides financial protection that helps to safeguard development gains and avoid reliance on adverse and less effective coping mechanisms.”

The ADB said the project will also explore solutions to the gender-specific impacts of disasters on MSMEs.

The climate-smart insurance project is the first project under the Vulnerable Twenty Group’s (V20) sustainable insurance facility.

V20 is a group of Finance Ministers from economies that are vulnerable to climate change.

The ADB has also partnered with the Philippines and Indonesia to launch an energy transition mechanism that aims to fund the early retirement of coal-run power plants and replace them with renewable energy alternatives. — Jenina P. Ibañez

Shrimp industry confident of meeting demand during holidays

THE SHRIMP industry said it expects production to keep up with demand as the holiday season approaches and with the recovery of the economy.

Christopher G. Co, Oversea Feeds Corp. vice-president, said at a recent virtual briefing at the 13th Philippine Shrimp Congress that farmers are waiting for the economy to pick up after the pandemic.

“Farmers are waiting to increase production because there is no point in trying to produce too much when the markets in the Philippines as well as the global market are having issues with purchasing power,” Mr. Co said.  

Mr. Co said the production has had to be adjusted for weak demand.

“A lot of farmers have reduced their stocking densities to take into account the effect of the lockdown. The industry’s production should be somewhere in the vicinity of 60,000 metric tons (MT) this year,” Mr. Co said.

“As far as the farmgate prices of the shrimp, there has been a quick uptick by as much as P50 per kilogram in the past month to around P270, which is based on ten-gram shrimp. That already reflects the gradual reopening of our economy and that will encourage farmers to… restock their idle ponds,” he added.

For the remainder of 2021, Mr. Co said: “We’re still hoping that December will be good for us. Hopefully, it will continue to next year. It really depends on our economy,” Mr. Co said. — Revin Mikhael D. Ochave

Senate approves microgrid bill bicam report

THE SENATE late Tuesday ratified the bicameral report of a bill seeking to promote the use of microgrid systems for total electrification.

Senator Sherwin T. Gatchalian, who led the Senate panel on the Bicameral Conference Committee to harmonize Senate Bill 1928 and House Bill 8203 or the proposed Microgrid Systems Act, said in plenary that the report introduced specific timelines for tenders to electrify unserved or underserved localities identified by distribution utilities within their respective franchises.

Mr. Gatchalian, who chairs the Senate Energy committee, said: “DUs (Distribution Utilities) that tender a lower, all-in price offer are mandated to electrify the identified area through a DU-operated microgrid system within 18 months from the award by the pertinent body.”

“Should no microgrid services provider or MGSP make an offer to serve a DU-identified area, the DU shall likewise be required to electrify the area within 18 months from the expiration of the period to tender an offer,” he added.

Another feature of the reconciled bill, he said, gives DUs and microgrid system providers to submit a superior offer within seven calendar days after the announcement of the winning MGSP.

The bicameral report also granted DUs and MGSPs provisional authority to start collecting the rates specified in the award while awaiting the final decision of the Energy Regulatory Commission (ERC) on the respective rate fixing applications.

The ERC is required to make a decision determining the final rate within 135 calendar days from receipt of a complete application from a DU or MGSP.

These amendments were made to ensure the speedy electrification of unserved and underserved areas. “This way Filipinos living in communities that are unelectrified and insufficiently powered will not have to wait as long as the lights to turn on,” he said.

The National Electrification Administration (NEA) has said that the government’s 100% electrification target may be achieved as early as June given adequate funding.

Some 12,000 sitios still need to be connected to the grid, the NEA estimates, which will require some P18 billion. — Alyssa Nicole O. Tan

Pandemic highlights need for managers who can balance performance, concern for worker needs

THE PANDEMIC has brought to the fore the importance of managers who can combine a focus on results with responsiveness to employee needs, a consultant said.

Joseph Folkman, co-founder of leadership development consultancy Zenger Folkman, said during the general membership meeting of the Philippine-Swiss Business Council Wednesday: “We found in our studies that the engagement of employees was up during the pandemic because people are getting more attention and they were being given a lot of support.”

Mr. Folkman added that executives need to be able to operate in a collaborative environment because of remote work arrangements, and to engage employees is a manner that unlocks their enthusiasm.

   “It is hard to rally the troops. But employees want their leaders to be inspiring, to give them energy and to get them excited about their work,” Mr. Folkman said.

He said executives should prepare for the resumption of face-to-face work by highlighting the advantages of human connection.

“People will suffer from the lack of collaboration and the lack of innovation” if they remain away from the workplace, Mr. Folkman said. — Revin Mikhael D. Ochave

Year-end payroll tax compliance reminders

As another year draws to a close, employers are once again obliged to pay out the 13th month salaries and to adjust year-end payroll for compliance with withholding tax regulations.

To fully comply with these obligations, employers are reminded of the following procedures:

13TH MONTH PAY AND OTHER BENEFITS
Based on the Labor Code of the Philippines, employees are entitled to mandatory 13th month pay, which must be paid not later than Dec. 24 of every year to all rank-and-file employees, provided they worked for at least one month during the calendar year.

A P90,000 annual tax exemption may be taken against the aggregate 13th month pay and other benefits for the year in calculating the income tax due. Other benefits as defined under Section 2.78,1 (B) (11) (b) includes Christmas bonus, productivity incentives, loyalty award, gift in cash or in kind and other benefits of similar nature actually received by officials and employees of both government and private offices.  

YEAR-END ADJUSTMENT OR ANNUALIZATION
In December, being the last payroll month of the year, employers must carry out year-end payroll adjustments or the annualization as part of their withholding agent obligation. It is the process of determining the annual income tax due of each employee for all the salary and other supplementary income received, including those from any previous employer, and comparing it with the total monthly taxes withheld to arrive at the adjusted withholding tax due.

If the annualization results in any excess withholding tax, the employer should credit or refund such excess to all affected employees on or before Jan. 25 of the following year. On the other hand, if the annualization shows that additional taxes must be withheld in December which can happen particularly for employees with more than one employer for the year, the employer must withhold such amounts from the employees. Some employers remit these taxes in advance for the employees, particularly if the amount is too big, and eventually recover them as a deduction in the succeeding payroll.

It would be wise to do an interim annualization to project the annual tax due of the employees. It helps manage the employees’ cash flow during the holiday season by spreading out the tax deductions/payments equally over the last two months of the year.

SUBSTITUTED FILING
In substituted filing, annual income tax returns need not be filed by individual taxpayers, provided they received purely compensation income from only one employer in the Philippines for the calendar year, regardless of amount, and the corresponding income tax has been withheld correctly by the employer (i.e., tax due equals tax withheld). The BIR Form 2316 (Certificate of Compensation Payment/Taxes Withheld) filed by their employers serves as their Annual Income Tax Return.

However, individuals not qualified for substituted filing are still required to file an annual income tax return and attach the corresponding BIR Form 2316 signed by both employee and employer.

As a good practice, employers may consider sending out a substituted filing survey which serves as their reference when indicating in the alphabetical lists whether or not an employee is qualified.

The employer should distribute BIR Form 2316 to the employees on or before Jan. 31, and have the qualified employees return the signed duplicate copy for submission to the concerned Revenue District Office of the Bureau of Internal Revenue (BIR) no later than Feb. 28 of the succeeding year.

OTHER YEAR-END REPORTING REQUIREMENTS
As for the filing and payment of the taxes withheld through BIR Form 1601-C (Monthly Remittance Return of Income Taxes Withheld on Compensation) for December, including those arising from the annualization calculation, remittance must be made on or before Jan. 15 for manual filers. However, for eFPS filers, the filing of returns based on industry classification shall be staggered, and payment must be done on or before Jan. 20.

Moreover, on or before Jan. 31, the employer should file the annual BIR Form 1604-C (Annual Information Return of Income Taxes Withheld on Compensation) with the attachments in the form of schedules called the alphabetical lists (or alphalist) of employees. The alphalist declares the total amount of compensation income of each employee, the total amount of taxes withheld during the year, and such other information or attachments as may be deemed necessary by the BIR.

It is advisable for the employer to reconcile the salaries and the withholding taxes reported in the BIR Forms 1601-C filed from January to December against the salaries expense recorded in the books and the figures in the attached alphabetical lists. Such practice aids the employer in ensuring that all the benefits of the employees are properly subject to withholding tax on compensation.

The duty of withholding agents/employers to withhold the correct amount of tax cannot be over-emphasized. The Bureau penalizes employers who fail to remit the correct amount of withholding tax with a 12% interest per annum, 25% surcharge, and a compromise penalty not exceeding P25,000. Moreover, for salaries to be allowed as a corporate tax deduction, the corresponding taxes should have been properly withheld and remitted.

I hope the above pointers will help employers with their withholding tax compliance at year’s end. When crunch time kicks in, nothing beats early planning and good old diligence.

The views or opinions expressed in this article are solely those of the author and do not necessarily represent those of Isla Lipana & Co. The content is for general information purposes only, and should not be used as a substitute for specific advice.

 

Maybellyn O. Pinpin-Malayao is a senior manager with the Client Accounting Services group of Isla Lipana & Co., the Philippine member firm of the PwC network.

+63 (2) 8845-2728

maybellyn.o.pinpin@pwc.com

Flavored with plastic

Escherichia coli or E. coli is a bacterium commonly found in the intestines of humans and other animals. In short, it is in all of us. It helps with digestion. But some strains of it can also make us sick, such as those that cause severe food poisoning. E. coli is also the same bacterium that can cause urinary tract infections.

Recent scientific research also show that E. coli can be mixed with discarded plastic bottles to create vanillin, which is used in vanilla flavoring. In an issue of online publication Freethink, it noted that E. coli now raises the possibility of old water bottles becoming ice cream flavoring in the near future.

In a Freethink article by Kristin Houser, she wrote that University of Edinburgh scientists have “engineered bacteria to convert plastic waste into vanillin.” She quoted the study’s first author Joanna Sadler as saying in a press statement that this was the “first example of using a biological system to upcycle plastic waste into a valuable industrial chemical,” and that this development “has very exciting implications for the circular economy.”

Houser noted that Polyethylene terephthalate (PET) is a type of plastic used to make water bottles, food containers, and other consumer goods. And that PET is one of the most recycled types of plastic waste. But the end result of that process is just more plastic products. But the Edinburgh scientists can now recycle used plastic into something else, rather than more plastic.

“Vanillin and a molecule derived from PET — terephthalic acid (TA) — have very similar chemical structures, so, for their study, published in the Royal Society of Chemistry (RSC) journal Green Chemistry, the Edinburgh scientists genetically engineered E. coli bacteria to be able to make the changes needed to convert TA into vanillin,” Houser wrote.

“All they had to do was mix together their engineered bacteria and TA and keep the temperature stable at about 98 degrees Fahrenheit. Within a day, the E. coli had converted 79% of the TA into vanillin,” she added. The next phase of the study is to determine if the resulting vanillin will be safe for human consumption, Houser said.

As I mentioned in previous columns, there are many scientific studies that point to the feasibility and viability of repurposing and making plastic waste productive and useful, and turning them into products other than plastic. Such efforts help keep plastic waste out of our oceans, and, at the same time, allow the more sustainable use of natural resources that plastic products replace.

One school of thought is that public policy should focus on keeping plastic waste out of the environment and accelerating the shift toward a more circular economy where valuable plastics are reused, again and again — to build a more efficient and sustainable world. So, solving the issue starts with having an effective solid waste management system and infrastructure.

The plastic industry is against the ban on single-use plastic, and the tax on plastic production. It believes that banning single-use plastics will just result in the production of substitute materials, which may be even more harmful to the environment. And the tax on plastic bags is regressive, as it affects low-income groups the most. Combined, these two policies can lead to food loss and food wastage, and product safety issues.

I don’t entirely agree with the industry on this, but I support its call for more effective solid waste management. I also support the industry position that plastic waste regulation should be based on sound policymaking and science; should involve all stakeholders in the decision making; and, should accelerate the transition to a circular economy. What we need is a wholistic approach to the issue.

The plastic industry recommendations include plugging holes in the segregation and collection stage so that valuable plastic resources are captured and do not end in landfills or in the environment; mandate the practice of the universally accepted principles of reduce, reuse and recycle; set a national standard to require the use of more recycled content in packaging without compromising on safety; incentivize investments and stimulate the market for recycled products, including welcoming the latest advancements and breakthroughs in the areas of chemical recycling and waste-to-energy; invest in research and technology to foster innovations in product redesign; exert accountability from the private sector through an extended producer responsibility framework; tap the energy, knowledge and expertise of the academe and the scientific community; and, benchmark against best-in-class solid waste management models overseas.

There are several points to consider here. One is the argument that plastic packaging uses only half of cumulative energy demand compared to substitute materials. Also, substitute packaging uses almost six times more water to produce compared to plastic packaging. And substitute packaging will not necessarily address the production of solid waste.

As for the ban on single-use plastic, the present definition of plastic products to be banned appear to include disposable anti-COVID face masks made from polypropylene materials; and disposable blister packs made from thermoformed plastics that are used for packaging medicines. Meantime, a tax on plastic will raise the price of packaging materials, which will impact consumer prices as well.

There are many points to consider in this debate, and one hopes that all sides can be heard. I truly believe we need to rethink how we deal with plastic, and consider options in light of modern science and technology. We need to find a balance between protecting the environment and growing the economy. But while industry and consumers, can find ways to recycle plastic, the initiative towards a greener future still depends heavily on the government setting realistic and practical policies and regulations for plastic production, use, reuse, and recycling.

 

Marvin Tort is a former managing editor of BusinessWorld, and a former chairman of the Philippine Press Council

matort@yahoo.com

Listening to (many) messages and slogans and (few) platforms

MACROVECTOR-FREEPIK

I joined last Thursday’s Rotary Club of Manila (RCM) meeting which had for its guest, declared presidential candidate, eight-time world boxing champion, former Sarangani congressman and now incumbent senator, Emmanuel Dapidran Pacquiao, Sr. or Manny for short. Being the oldest and biggest rotary club in Asia, the RCM has justifiably earned the prestige and stature that goes with being a pioneer and trailblazer. Any serious presidential candidate cannot afford not be invited to speak before the RCM. The same goes for other personalities or celebrities who have something important to say because of an ongoing issue or controversy or simply, in the case of government officials, to propose policy options or to herald accomplishments.

Several weeks ago, the RCM had as guest its Vice-President Maria Leonor “Leni” Gerona Robredo who promptly attracted guests who had helped dictate the agenda of the nation earlier in their lives.

They were among the 1,000 who could be accommodated in the Zoom webinar and, reportedly, thousands more who used other platforms. The count does not include many others who watched the recording of the Vice-President’s 30-minute briefing on how her office has responded to the pandemic, the serious collateral damage it wrought, and her record of service to the poor and marginalized and her simple lifestyle.

For his part, the Pambansang Kamao seemed to have combined the slogans and messages of two successful presidential candidates: the late President Benigno “Noynoy” Aquino III and President Rodrigo Duterte. Having said that Senator Pacquiao seems (the operative word) to have appropriated for himself these slogans and messages, doesn’t mean that he does not believe that these are worthy priority advocacies and that he is just mouthing them in order to play to the gallery like some demagogues and populists we know.

I had the privilege of promoting a number of Pacquiao’s fights early in his career that included a first successful defense via knockout, at the age of 21, of his flyweight crown against Mexico’s Gabriel Mira at the Araneta Coliseum in May 1999. I have therefore seen enough of the man to know he sincerely believes what he says. He lost his second defense in a provincial city in Thailand in the same year in a second-round knockout in a fight where he had already lost his belt even before the opening bell due to his going over the weight limit. Pacquiao was all drained as he vainly tried to make the weight even hours before the fight. His manager, the late Rod Nazario, an amiable fellow could only shake his head in disappointment.

In his RCM speech, Pacquiao stated, in so many words, that “the country is in such a bad economic shape because of corruption.” It sounded very much like the campaign message of then candidate and later, president, Noynoy Aquino of, “walang mahirap, kung walang korap” — “There is no poverty if there is no corruption.” It was a very simple and easy-to-memorize message that appealed especially to those who felt how it was to be poor on a daily basis, like what Pacquiao and his family felt. One of boxing’s greatest Hall of Famers became emotional as he narrated how he and his family went hungry almost every night, satisfying their hunger by drinking water. Noynoy’s message resonated so well with the electorate in 2010 that then senator Noynoy won by a landslide. Pacquiao obviously hopes that his personal message would also lead him to Malacañang.

Pacquiao’s second message sounds so much like Duterte’s bloody war on drugs that gained traction, most especially with the AB socio-economic class that had experienced the drug problem in their own homes since their children had the means to access these illegal drugs. It had come very close to home and the “law and order” campaign of the tough-talking macho probinsiyano Duterte struck familiar chords. Duterte’s handlers embellished his tough stance against corruption with stories of him telling his aides to return money left in his home in Davao City by rich businessmen who had expressed their gratitude “for the Mayor who was simply doing his job.”

Pacquiao’s anti-corruption campaign would be capped, he said, by throwing all these corrupt government officials in the same prison where they can continue their bonding. The message is consistent with the claim of Pacquiao campaign manager, businessman Salvador “Buddy” Zamora who spoke of a meeting between Pacquiao and Vice-President Robredo who was exploring Pacquiao’s thoughts and position on corruption and how far he would go to punish and seek retribution from the corrupt who denied the poor access to many benefits. Zamora said that “the Vice-President failed to get commitments from other candidates about punishing the crooks for the choices they made and it was only Pacquiao who clearly committed to lock them up in jail… and he will do that. He’s serious about that.”

Pacquiao then discussed what could be part of his still-to-be- unveiled platform. He points to corruption as the main reason why taxes are so high, making the Filipino probably the most taxed person in this part of the globe. He then explains his disappointment with “those technocrats with all those degrees prescribing more taxes when all you have to do is not to spend more than what you earn.” Pacquiao adds that running a country and managing its finances should not be too different from running a household: stay within the budget.

Many may have other views on what they call the “home economics approach” which, however, appeals to everyone except the more well-rounded who inevitably say “Hasn’t he heard of deficit spending?” This spending strategy banks on the additional expenditures of government to rev up a sluggish economy during a pandemic — the money raised from the deficit hopefully does not end up again filling up private pockets but goes to activities that result in more productive investments and consumption and eventually more tax earnings for government to finance the deficit. The main challenge in this scenario is to manage the deficit and ensure that it does not extend into prolonged periods which will in turn create more serious slowdowns.

One area where Pacquiao’s messages are stalled is the lack of specific actionable plans and programs that should form part of his platform. Vice-President Robredo has provided valuable glimpses of her platform and stated in no uncertain terms that solving the country’s problems begins with managing the pandemic in a smart, competent and honest way: no kickbacks, no overpricing. Perhaps one way of contextualizing the Vice-President’s prescription is to quote one of the country’s most respected economists, former Secretary for Planning, National Economic and Development Authority (NEDA) Director General and incumbent Monetary Board member, Felipe Medalla who once said in an Archer Talks webinar, “Vaccinate and then stimulate.” He had seen the slow vaccination rates hobbled by bureaucracy and corruption, and stimulus measures that were contradicted by wide-spread lockdowns.

 

Philip Ella Juico’s areas of interest include the protection and promotion of democracy, free markets, sustainable development, social responsibility and sports as a tool for social development. He obtained his doctorate in business at De La Salle University. Dr. Juico served as secretary of Agrarian Reform during the Corazon C. Aquino administration.

The perils of eavesdropping

PIKISUPERSTAR-FREEPIK

“Eavesdropping” comes from the 17th century reference to a person listening “under the eaves,” referring to a gossip-monger catching conversations heard from open windows.

Listening to the private conversation of others without their consent is how eavesdropping is defined. (In online chats, this is called lurking.) There is the element of stealth when dipping into conversation one is excluded from. The waiter serving coffee at the meeting or the minute-taker representing an absent boss are considered part of the furniture even as they soak in the juicy tidbits of whose promotions were rejected. These are really eavesdroppers who partake of the snack but not the discussion.

Picture yourself waiting for a late lunch companion. You busy yourself with your iPhone as you read a newly downloaded book. You are absorbed by the concept of “mission creep” in the Afghanistan war. And then, a snatch of conversation reaches you. You catch a familiar name in a situation being discussed which is somewhat familiar to you. It’s about a new CEO.

Do you proceed to read about the hubris of General Petraeus and the duplicity of Pakistan? Or do you lean back to get a better angle to surf over the sound of piped-in music? (It’s Adele singing “Someone Like You.” You’re tearing up and distracted.)

The unwritten etiquette allows curiosity to trump good manners when it comes to topics of interest to you. And you are a person of varied interests. Here are some tips for the eavesdropper.

Try to project nonchalance. To lean closer to the table where the interesting conversation is taking place invites suspicion, not to mention the possibility of toppling over your chair and breaking a spine. (Headline: Executive drops dead at a restaurant… Sub-Head: Food poisoning suspected.) Although, it’s really a case of “rumor mortis.”

Best to sit still, put down your iPad and pretend to study the menu. This presumes an asymmetry of recognition — you know the ones talking, but they don’t recognize who you are because of your low status in the totem pole. (Sure, you read a lot. So what?)

It is important to look busy and therefore unable to spare any attention to multiple conversations going all around the restaurant. The dine-in capacity has increased. You ask for the special of the day after having exhausted the menu or looking a little too nerdy with your absorption with your iPhone. Your eyes are fixed on the seared tuna and prawns in garlic sauce, as if looking for a coded message from Mars.

You realize that, since the eavesdropped conversation is not actually intended for your ears, you may miss out on key words and not have the luxury of asking the story-teller to speak louder please and repeat the word you missed — “And at that point she… (crash of plates)… his (scraping of chair being pulled)…and his voice has acquired a higher register since.”

It is bad form to be so obviously tuned to a conversation in the next table that you do not notice your lunch mate already seated in front of you and asking to your embarrassment what you think you’re doing… even if it is clear to her what you’re up to. She is doing hand signals to get your attention. Her frantic movements may attract the attention of the other table as they turn their heads to look at you more closely — he looks vaguely familiar. Isn’t he with fleet maintenance?

The curse of the eavesdropper entails hearing his name being discussed and about to meet an unexpected fate — yes, he’s in the list of those being let go. Someone still needs to inform him next week.

Anyway, there are those who don’t mind being overheard. They talk with loud voices as if addressing the congregation at a religious revival. They even pause for appreciative laughter when they deliver worn-out jokes. These uninvited guest speakers attract head-turning intended to shame them into lowering their voices and getting off the pulpit.

It is impolite to continue eavesdropping when you already have someone to talk with. And when you have secrets to bring up at the table yourself, be conscious of the person next to you. Watch that guy who seems to be poring over the menu with his body tilted ever so slightly in your direction.

Some people have no shame.

 

Tony Samson is chairman and CEO of TOUCH xda

ar.samson@yahoo.com

China nears launch of first modern aircraft carrier

REUTERS

CHINA is three to six months from launching its third and most modern aircraft carrier, new analysis shows, in what would be a milestone for President Xi Jinping’s effort to project power into the high seas.

The Jiangnan Shipyard near Shanghai has made “steady progress” this year on the vessel, known for now as Type 003, the Center for Strategic and International Studies (CSIS) said in the report dated Tuesday. The center, a Washington-based think tank, added that satellite imagery shows “that the installation of the carrier’s main external components is nearing completion.”

The ship’s use of catapults “is a major leap forward for the People’s Liberation Army (PLA) Navy,” the report said, because it will be able to “launch fixed-wing aircraft with heavier payloads and more fuel, as well as larger aircraft.” That would put China — whose two active carriers use simpler, “ski-jump” flight decks — into an exclusive club with the US and France.

Mr. Xi has pledged to “basically complete” a decades-long modernization effort of China’s once infantry-dominated military by 2035, with particular focus on building a “blue water” navy. The new carrier would extend the PLA’s effective range further beyond the so-called First Island Chain, including Taiwan the Philippines and Japan.

The shipyard working on the Type 003 carrier is operated by Jiangnan Shipbuilding Group, a subsidiary of China State Shipbuilding Corp., the world’s largest commercial shipbuilder. The CSIS report added that satellite imagery indicates that work on other military vessels at the facility has slowed in recent months.

The foreign capital flowing into Jiangnan and other shipyards on China’s coast may directly and indirectly support the PLA Navy’s modernization, CSIS said, adding that foreign companies may want to consider whether their vessels should be built alongside such warships.

While the Type 003 would be China’s largest and most modern warship, it’s likely to fall short of the capabilities of either the US’s Nimitz- or Ford-class nuclear-powered supercarriers. The vessel is expected to have conventional diesel propulsion and be closer in size to the Kitty Hawk-class carriers built by the US in the 1960s.

China also lacks the global port network needed to support large capital ships on extended missions. And it’s still developing reliable fifth-generation fighter jets to launch from its carriers.

The Type 003 is years away from going into active service considering “the technical challenges of building a modern aircraft carrier,” according to the center’s report. The US Department of Defense said in an annual assessment released last week that the carrier was expected to be fully operational by 2024. — Bloomberg

Billion-dollar solar power Ponzi schemer gets 30 years in jail

REUTERS

THE CO-OWNER of a California-based solar company was sentenced to 30 years in prison for running a $1-billion Ponzi scheme that attracted big-name investors, among them Warren Buffett’s Berkshire Hathaway, Inc.

Jeff Carpoff’s DC Solar built mobile solar generators for sporting events and music festivals. It burnished its image with investors by wildly inflating the number of generators it had produced.

Money poured in through complex deals known as tax-equity funds. Mr. Buffett’s company invested $340 million. Other backers included Progressive Corp., East West Bancorp, Inc., Valley National Bancorp and Sherwin-Williams Co.

But DC Solar manufactured and leased only a fraction of the roughly 17,000 mobile units it claimed were in use, authorities said. Instead, the firm used money from new investors to pay off old ones, according to a statement from the US Attorney’s Office in Sacramento.

“Jeff Carpoff orchestrated the largest criminal fraud scheme in the history of the Eastern District of California,” Acting US Attorney Phillip Talbert said in the statement.

Mr. Carpoff, 50, pleaded guilty last year to conspiracy to commit wire fraud and money laundering, according to court records. At the same time, his wife, Paulette Carpoff, admitted to money laundering and conspiracy. She is scheduled to be sentenced next week.

Five others with ties to the company also have pleaded guilty in connection to the case.

“Mr. Carpoff sincerely regrets his failure to shut down his business when it became apparent that there was an insufficient leasing market for the mobile solar generators it manufactured,” said his lawyer, Malcolm Segal. “He has publicly apologized for his own errors and intends to continue to assist counsel for the investors in pursuing claims against the professionals who ‘found’ ways to avoid market reality.”

The government has recovered about $120 million in lost assets which it intends to return to investors, according to the prosecutors’ statement. 

Mr. Carpoff was required to forfeit many of his assets including his collection of luxury and collector cars. An auction of the cars netted $8.233 million, the U.S. attorney’s office said.

The Carpoffs used some of the money they made from the Ponzi scheme to buy a minor-league baseball team and a NASCAR sponsorship. They also bought luxury real estate in California, Nevada, the Caribbean and Mexico; a subscription private jet service; a suite at a professional football stadium; and jewelry. — Bloomberg

Japan reports first bird flu outbreak of season

BW FILE PHOTO

TOKYO — Japan has detected its first outbreak of bird flu for the 2021 winter season, with confirmation of a case of “highly pathogenic avian influenza” at a poultry farm in the northeast of the country, the agriculture ministry said on Wednesday.

About 143,000 egg-laying chickens are being exterminated at the farm in Yokote city in Akita Prefecture, the ministry said in a statement on its website, adding that restricted zones up to 10 km (6.2 miles) from the site have been established.

“Under the current situation in Japan, we do not believe that there is any possibility of avian influenza being transmitted to humans through the consumption of chicken meat or eggs,” the ministry said.

But an increase in the number of people in China getting infected from bird flu this year is turning into a source of concern among epidemiological experts, especially as the world slowly recovers from the COVID-19 (coronavirus disease 2019) pandemic.

China has reported 21 human infections with the H5N6 subtype of avian influenza in 2021 to the World Health Organization, compared with only five last year, it said, with six dead and many of the others critically ill.

Outbreaks of bird flu have also been reported in recent days and weeks in Europe with farms in Poland the latest locations for infections, totaling 650,000 poultry.

Last winter, Japan had its worst season of winter flu on farms yet, with more than 3 million chickens culled and a quarter of the country’s prefectures affected.

Japan has an egg-laying flock of around 185 million hens and a broiler population of 138 million, according to the ministry of agriculture. — Reuters

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