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Another People Power in the making?

STOCK PHOTO | Image by Creativeart from Freepik

By now, most Filipinos have seen, if not memorized, excerpts from Senator Ping Lacson’s much-circulated “corruptionary.” Unlike the entries in Merriam-Webster, Lacson’s version doesn’t define words, it defines a system. It is tailor-made for the digital age: short, graphic, and horrifyingly effective in exposing how billions in public funds have been misused, particularly in the Department of Public Works and Highways’ (DPWH) flood control projects. These are not mere accounting errors, they are systematic acts of plunder.

What once seemed unthinkable has now become painfully clear. Taxpayer money has been siphoned off into ghost projects, unfinished infrastructure, and substandard materials. The general public is only now awakening to the grotesque scale of these abuses. We now understand how luxury umbrellas could trigger the sale of Rolls-Royce vehicles, how a single Patek Philippe watch can command over P11 million, and how one extravagant dinner in Bonifacio Global City can cost three-quarters of a million pesos — for just four people. In a country where more than half of all families identify as poor, these revelations are not just obscene — they are potentially explosive.

Such revelations shorten not only the political lifespans of those involved but also their economic and social credibility. The Bible puts it succinctly: “By their fruits, ye shall know them” (Matthew 7:16).

As discussed in last week’s column, these flood control anomalies raise foundational questions, and not merely about legality, but about basic decency. At this point, the issue is not whether guilt can be proven beyond reasonable doubt. The volume of red flags, confessions, and physical evidence is already overwhelming.

We’ve seen a high-ranking DPWH official casually admit in congressional hearings that he gambled two to three times a month while in office. One might ask: on what salary was he funding this vice? One contractor testified to donating P30 million to a senator’s campaign. That senator, in turn, acknowledged receiving campaign funds from a “friend” who held active government contracts despite clear prohibitions under election law. Meanwhile, the children of these contractors, undeterred by public scrutiny, flaunt their wealth on social media — luxury cars, designer goods, and million-peso watches treated like everyday accessories.

Has decorum been entirely abandoned?

Even a basic inspection conducted by the President, followed by Senator Lacson’s own staff, found numerous non-existent projects in vulnerable, flood-prone areas like Bulacan and Oriental Mindoro. Where structures did exist, the use of substandard cement and steel was evident. The deviation between approved designs and actual builds reveals a dangerous pattern: weakened infrastructure at inflated costs. A cursory review of the national infrastructure budget even shows inexplicable uniformity: identical allocations for vastly different projects across disparate terrains.

This goes beyond poor planning; it reflects a fundamental betrayal of public trust. When legislators, contractors, district engineers, auditors, and bidding committee members all appear to operate in concert — with their families openly enjoying the spoils — the public is justified in assuming widespread collusion. Their lifestyles betray their true income sources. Their own testimonies, sometimes unwittingly, reveal their guilt. “Out of the abundance of the heart, the mouth speaketh” (Matthew 12:34).

How do we begin to dismantle such entrenched corruption? How do we reclaim a sense of integrity in public service?

We must first acknowledge that the current investigations in Congress are compromised. The very lawmakers tasked with oversight are, in many cases, implicated in the anomalies under scrutiny. The annual national budgets they passed are rife with “insertions” — pork-barrel allocations that siphon funds away from public health, education, and truly critical infrastructure. This context casts a long shadow over the objectivity of current Senate and House hearings. No amount of political grandstanding can undo this perception. The ties between lawmakers, DPWH officials, and favored contractors appear too strong to ignore.

One immediate step would be for lawmakers and public officials who may be investigated to voluntarily recuse themselves from proceedings related to transparency and accountability. This is not only prudent but necessary if we are to rebuild public trust.

Another promising development is the recent executive order creating an independent anti-corruption commission with a specific focus on the DPWH. As the civic coalition 1Sambayan correctly points out, this could be a critical move towards ensuring proper use of public funds. But for this initiative to succeed, the President must appoint individuals of “unquestionable integrity, competence, and independence.”

Yet, good intentions are not enough. The commission’s mandate must go beyond investigating and recommending cases to the Office of the Ombudsman or the Department of Justice. It must have real authority, legal and administrative, to enforce its findings and hold both public officials and private contractors accountable.

Otherwise, it risks becoming another toothless body, its reports fated to collect dust, as many Senate Blue Ribbon Committee investigations have in the past. One only needs to revisit the Pharmally scandal to see how detailed Senate findings — such as overpriced PPE and substandard medical gear — never translated into concrete legal action. No officials from the Department of Health or Department of Budget and Management were prosecuted, despite clear evidence of wrongdoing.

The call of 1Sambayan to “identify individuals and entities involved in corrupt practices and recommend appropriate legal action” is not merely sound — it is urgent.

And yet, some of those under scrutiny continue to assert their innocence, even as their lavish lifestyles and public spending habits say otherwise. The disconnect is staggering.

Former Supreme Court Justice Adolf Azcuna recently proposed a powerful idea: under Republic Act 1379, the government has the authority to seize properties that are clearly disproportionate to declared incomes, even in the absence of direct proof of theft. This law allows for the forfeiture of ill-gotten wealth and must be used more aggressively starting with our lawmakers and DPWH officials.

Private contractors should also face the full force of the law. Their actions may constitute not just graft and corruption but also fraudulent practices, malversation of public funds, and falsification of documents. By collecting payments for ghost or substandard projects, they violate their legal and contractual obligations and rob the country of infrastructure that could have spurred economic growth and improved lives.

What’s most tragic is the opportunity cost. For every peso stolen, a child goes uneducated, a barangay remains flooded, a road stays broken. Corruption kills development.

We must not wait until Filipinos are driven to the streets in protest, as Indonesians were just last week. According to The Guardian, at least seven people died, and hundreds were injured as protests erupted over lawmakers receiving housing allowances 10 times higher than Jakarta’s minimum wage — all while essential services like education, healthcare, and infrastructure were slashed under austerity. The people also railed against what they saw as a “corrupt elite,” hoarding the nation’s wealth for conglomerates and the military.

We must not allow a similar tragedy to unfold here. The case of the 21-year-old delivery driver in Jakarta — killed as a paramilitary vehicle rammed through protestors — is a chilling reminder of how quickly injustice can escalate into unrest.

Some observers have begun to speak of this moment as a tipping point. Perhaps they are right. It is time civil society becomes bolder in confronting indecent governance. For far too long, our outrage has been muted. Now, with evidence in plain sight, silence is no longer an option.

Let us be reminded once again by Scripture:

“If you do nothing in a difficult time, your strength is limited. Rescue those being taken off to death, and save those stumbling toward slaughter.” Proverbs 24:10–11

Let us begin with truth, and follow it with action.

 

Diwa C. Guinigundo is the former deputy governor for the Monetary and Economics Sector, the Bangko Sentral ng Pilipinas (BSP). He served the BSP for 41 years. In 2001-2003, he was alternate executive director at the International Monetary Fund in Washington, DC. He is the senior pastor of the Fullness of Christ International Ministries in Mandaluyong.

Venice Film Festival: Gaza girl’s desperate pleas in The Voice of Hind Rajab shake Venice

A scene from The Voice of Hind Rajab.

VENICE — The anguished final pleas of a five-year-old Palestinian girl trapped in a car under Israeli fire are retold in The Voice of Hind Rajab, a searing new film that received a rapturous premiere at the Venice Film Festival on Wednesday.

“Hind’s story carries the weight of an entire people,” one of the actors, Saja Kilani, told reporters in a statement she read out on behalf of the whole cast and crew ahead of the screening.

The true-life drama focuses on telephone operators from the Palestinian Red Crescent Society who tried for hours to reassure the trapped Hind Rajab as she begged to be rescued from the car, where her aunt, uncle, and three cousins already lay dead.

“I’m so scared, please come,” the little girl says, with the original recordings of her increasingly desperate calls to the dispatchers used to powerful effect throughout the film.

“The real question is, how have we let a child beg for life? No one can live in peace while even one child is forced to plead for survival. …Let Hind Rajab’s voice echo around the world,” Ms. Kilani said.

After a three-hour wait, the Red Crescent finally got the green light from Israel to dispatch an ambulance to save Hind. But contact with the girl and the rescuers themselves was cut just after the ambulance arrived at the scene.

Days later, the girl’s body was found along with those of her relatives in the car. The remains of the two dead ambulance workers were also recovered from their bombed-out vehicle.

The Israel Defence Forces initially said its troops had not been within firing range of the car. However, independent investigations challenged this assertion and a subsequent UN report said the IDF had destroyed Rajab’s car and killed the two medics who were trying to save her.

Asked about the killings this week, the IDF said the incident, which happened on January 29, 2024, was still under review and declined further comment.

STANDING OVATION
The film received a thunderous, 24-minute standing ovation at its premiere, by far the longest of this festival to date, making it the clear crowd favorite to win the prestigious Golden Lion award, which will be awarded on September 6.

“Free, free Palestine,” people in the audience chanted.

The movie has also attracted some top Hollywood names as executive producers, giving it added industry heft, including actors Joaquin Phoenix and Rooney Mara, who were both in Venice on Wednesday to support the production, as well as Brad Pitt.

Tunisian director Kaouther Ben Hania, who also wrote the screenplay, said Hind’s voice transcended a single tragedy.

“When I heard the first time the voice of Hind, there was something more than her voice. It was the very voice of Gaza asking for help. …It was anger and helplessness that gave birth to this movie,” she told reporters.

The IDF invaded the Gaza Strip after Hamas militants attacked Israel on Oct. 7, 2023, killing 1,200 people and taking 251 hostages. More than 63,000 people living in Gaza have died in the fighting, Gaza health authorities say.

“The narrative around the world is that those dying in Gaza are collateral damage. I think this is so dehumanizing, and that’s why cinema and art are important, to give those people a voice and a face. We are saying enough, enough of this genocide,” Ben Hania said.

The world’s biggest academic association of genocide scholars announced this week that it had passed a resolution saying the legal criteria had been met to establish that Israel is committing genocide in Gaza, something Israel denies.

The actors playing the Red Crescent dispatchers said they only heard Rajab’s recordings when they were on the set, making the filming an extremely emotional process.

“There were two times where I couldn’t keep filming. I had a panic attack,” Palestinian actor Motaz Malhees said. — Reuters

Interest never sleeps

The 2026 National Expenditure Program prepared by the Department of Budget and Management (DBM) and submitted to Congress is set at a record P6.793 trillion. While high expenditures are expected for a growing country like the Philippines, the increasing debt level is concerning, as the government is projected to spend P950 billion on interest payments, with another P1 trillion allocated for principal amortization. Movements in interest rates are significant as interest payments are a function of rates and the principal borrowed.

Between 1986 and 2010, approximately 30% of the national budget was allocated to interest payments, which restricted productive spending on sectors such as social services and infrastructure. These are still areas where the Philippines is falling behind, showing the cumulative effect of underspending in those sectors. This share reached 36.9% in 2004 when the growing budget deficit, rising public debt, and macroeconomic factors led President Gloria Macapagal-Arroyo to declare that the Philippines was in the midst of a fiscal crisis, warning of a potential debt default. The situation has improved, and the Philippines is now in a significantly better fiscal position, but it is our responsibility to sustain this improvement.

Borrowing to finance projects that will bring long-term value to the country is not necessarily a bad thing; however, in the words of J. Reuben Clark, “Interest never sleeps nor sickens nor dies; it works on Sundays and holidays.” The investments the country makes must generate enough return to pay off the debt we incur to finance them. We borrow today with the understanding that future generations will repay it, and each extra peso we pay in interest is one less peso available for priority projects. Whether the projects succeed or not, we still have to pay the principal and interest.

This situation is further aggravated by corruption, which siphons off vital national resources. The World Bank estimates that this amount was roughly 20% of the National Expenditure Program in 2024. These stolen funds translate into debts that future generations will shoulder, not only through monetary payments, but also through the long-term impacts of reduced investments in social services, such as education and healthcare, as well as infrastructure development. Today, we see this playing out in the Philippines’ educational crisis. At the same time, we continue to deal with recurrent flooding and inadequate road networks, all of which hinder progress and deepen inequality.

Imagine the impact if, instead of funding lavish lifestyles for corrupt officials and their associates, those funds were redirected toward genuine national development. Public funds must be used effectively and efficiently, with transparent processes and strict accountability to ensure the projects benefit the broader population. When investments focus on critical sectors like education, healthcare, infrastructure, and social welfare, the country can experience sustainable growth, improved living standards, and greater opportunities for all Filipinos.

As our national debt continues to grow, it becomes even more critical for the government to exercise exceptional care and transparency in how it allocates, disburses, and utilizes public funds. Our national debt has grown tremendously from approximately P6 trillion in June 2016 to more than P17 trillion as of June 2025. Responsible borrowing and prudent fiscal management are essential to prevent debt from perpetuating a cycle of dependency and corruption.

Private citizens can play a crucial role in ensuring accountability by actively participating in the democratic process and engaging in civic discussions to influence policies and shape the actions of leaders. Citizens can also hold public officials and institutions responsible through advocacy, watchdog activities, and demanding transparency in government dealings. Additionally, private individuals lead by example by following laws and regulations, supporting community growth, and promoting ethical conduct. Ultimately, engaged and responsible citizens are the backbone of a strong nation because, after all, it is our tax money funding it. Let us fund a better tomorrow for all.

The views expressed herein are his own and do not necessarily reflect the opinion of his office as well as FINEX.

 

EJ Qua Hiansen is the chief financial officer of PHINMA Corp. and the president of the Financial Executives Institute of the Philippines.

First Gen says Batangas plant to run on Bac-Man geothermal via GEOP

BW FILE PHOTO

TAIWAN FRUCTOSE (Philippines), the local subsidiary of global sweetener supplier Taiwan Fructose Co. Ltd., has tapped Lopez-led First Gen Corp. to procure renewable energy to power its production and logistics facility in Batangas.

In a statement on Thursday, First Gen said it will supply the Taiwan Fructose facility inside the First Philippine Industrial Park (FPIP) in Batangas with electricity sourced from the Bacon-Manito (Bac-Man) geothermal complex in the Bicol region via the government’s Green Energy Option Program (GEOP).

GEOP is a program that allows eligible electricity end-users to choose renewable energy as their power source.

Taiwan Fructose’s facility at the FPIP manufactures various sweetening products for the export market — such as glucose and fructose syrups — and other sweet additives for a wide range of food and beverage products, as well as health supplements.

“Geothermal energy is a renewable energy source that can run at baseload capacity which is ideal for industries that require stable 24/7 power supply with a lower carbon footprint. We are pleased to support Taiwan Fructose in its journey towards sustainability and decarbonization,” said First Gen Chief Customer Engagement Officer Carlo Vega.

The Bac-Man geothermal complex is owned and operated by First Gen subsidiary Energy Development Corporation, the country’s leading geothermal developer.

To date, First Gen has a total of 3,617 megawatts (MW) of combined capacity from its portfolio of plants that run on geothermal, wind, hydro, solar energy, and natural gas.

On Thursday, First Gen closed at P16.50, up 0.06 or 0.36%. — Sheldeen Joy Talavera

Outrage, memes, and amnesia

PHILIPPINE STAR/RYAN BALDEMOR

By Jam Magdaleno

THE RECENT flood control fiasco offers a textbook case of our political cycle of outrage and forgetting. Ironically, the same cycle happens every few months. Last year, everyone seemed to be preoccupied with POGO and Alice Guo. A few weeks back, the same public gaze was turned towards online gambling. While it is understandable that people are enraged, what is concerning is that these events reveal a cyclical pattern in our public discourse.

For one, the endpoint of these issues almost always leads to more government intervention. Once the flood subsides — no pun intended — it is predictable that the result of these hearings will be yet another layer of government oversight. While oversight and fact-finding bodies are important to extract justice in some form, they are merely ex post facto. If we are to have any hope of addressing these decades-old problems, shouldn’t we be more creative? Some proposals, like Ramon Ang’s plan to fix Metro Manila’s flooding, have already been forgotten.

Former Solicitor General Florin Hilbay rightly suggests that perhaps it is time to seek private-sector intervention, given that the cost of government-led flood control projects is often inflated by leakages.

Waiting for the government to carry out a self-inflicted overhaul is like waiting for Godot. No matter how many good-governance officials are in place, the very nature of politics ensures that self-interest trumps the public interest.

To understand why this is the case, we turn to the concept of public choice. Public choice theory, pioneered by Nobel laureate James Buchanan and Gordon Tullock, views politicians, bureaucrats, and voters not as benevolent guardians of the public good but as rational actors driven by incentives, much like participants in a marketplace. Officials seek re-election, agencies seek bigger budgets, and voters often pursue short-term benefits without regard for long-term costs. In this view, politicians and bureaucrats are not moral guardians. If we adopt this perspective, it becomes clear that the next steps must focus on changing the environment rather than moralizing the issue.

What, then, is the problem with moralizing the issue? It pollutes public discourse, reducing it to individual-level fault-finding and “memeing” rather than fostering informed discussion and genuine problem-solving. One way this manifests is through the shaming culture so rampant today. TikTok and Facebook are flooded with memes targeting contractors, politicians, and even their relatives. But does this solve anything? No. Instead, it creates a false sense of action, widening the awareness-action gap. This gap arises because awareness is often easier and more emotionally gratifying than action. Social media makes it especially visible: we get the feeling of having done something by liking, sharing, or memeing, but in reality, nothing changes on the ground. It trivializes complex problems and makes them easy fodder for virality. By this point, the PR directors of these politicians are already busy figuring out how to spin the outrage into their favor for 2028. Once the dust has settled, we will be left only with memes to carry into 2028, being none the wiser.

If outrage and forgetting are the default cycle, the challenge is to design ways of breaking it. Scandals will always come and go, but institutions can be built to outlast the news cycle. One promising model is already here in the Philippines: the Citizen Participatory Audit (CPA) program of the Commission on Audit. Since 2012, CPA has embedded citizens into audit teams alongside state auditors, producing joint reports on flood control projects, health centers, sanitation, and road construction. These audits have exposed irregularities ranging from poor construction to procurement defects, leading in some cases to resignations and legal action. Unlike traditional post-mortems, CPAs keep pressure alive by institutionalizing citizen oversight and transforming outrage into evidence-based accountability.

The temptation is to believe that politics will correct itself if only “good people” are elected. Public choice theory warns us otherwise. Since self-interest is always at play, the real task is to design rules that channel self-interest toward the public good. This means procurement systems where contracts are open and competitive, infrastructure deals with automatic performance benchmarks, and even sunset clauses for programs that require renewal to continue. These may sound boring compared to fiery hearings or viral memes, but boring is exactly what enduring reforms look like.

International models prove that such institutional design works. The Netherlands, for example, entrusts flood control to independent water boards (waterschappen), which have existed since the Middle Ages. These boards raise their own revenues through dedicated local levies and wastewater fees, fund 95% of their own budgets, and are legally required to upgrade defenses every five years to meet strict safety norms — such as preparing for one-in-10,000-year flood events in critical zones. Their financial autonomy and regulatory power mean that flood protection is insulated from electoral cycles and partisan interference. The result: the Dutch have not experienced a catastrophic flood like 1953’s North Sea disaster in over 70 years, despite rising seas and climate risk. These lessons matter for Metro Manila and the Philippines.

Mr. Hilbay is right: massive public works are too prone to leakages when left entirely to the government. A Philippine version of the Dutch model, whether through independent authorities funded by user fees, or through public-private partnerships with contracts tied to measurable results, could help ensure that self-interest works in service of the public good.

But none of this will matter if public discourse itself remains trapped in the cycle of outrage, memes, and amnesia. Social media platforms reward trivialization. This is not a reason to abandon them but to rethink how they can be manipulated for a more mature and sustained social movement. If virality is inevitable, can it be redirected to sustain reform pressure rather than dissipate it? Civic groups have already experimented with digital scorecards, fact-checking campaigns, and “explainers” that keep issues alive well after the headlines fade. The task is to scale these efforts so that memes do not merely mock politicians but pin them down with evidence-based demands.

Ultimately, the larger point is that waiting for politics to correct itself is futile. Scandals will fade, personalities will come and go, and 2028 will arrive whether or not we have learned anything. The only way forward is to redesign the environment, through stronger institutions, smarter contracts, and civic innovations that make accountability harder to dodge. Ostensible outrage without follow-through only guarantees that we will face the same problems again. The real test is whether we can channel outrage into structures that endure after the floodwaters— and the memes — have receded.

 

Jam Magdaleno is a political and economic researcher, writer, and communication strategist. He is the head of Information and Communications of the Foundation for Economic Freedom (FEF), a Philippine-based think tank.

Venice Film Festival: Camus classic The Stranger revitalized

A scene from The Stranger.

VENICE — Adapting a book for the screen is always “a betrayal,” French director François Ozon says, but in bringing Albert Camus’ The Stranger to the Venice Film Festival he hopes to generate fresh debate around a French classic.

Shot in black and white, the film follows Meursault, a detached young Frenchman living in colonial Algeria in the 1930s who kills an Arab on a beach and is put on trial, with a possible death sentence hanging over him.

Mr. Ozon, 57, is one of France’s most prolific filmmakers, known for works such as Swimming Pool, 8 Women, and By the Grace of God. He said his latest project was born after he revisited Camus’ novel, which he had first read in his teens.

“I realized how much the book still resonates with the present day,” he told Reuters. “I launched into this adaptation with a bit of fear, because I’m tackling a masterpiece of French literature.”

Published in 1942, the book was brought to the screen in 1967 by Italian director Luchino Visconti, in a film starring his compatriot Marcello Mastroianni.

Mr. Ozon has said he was very keen to produce a French-language version of Camus’ existentialist classic, although he was aware that not everyone will appreciate his effort.

“Adapting a book always involves a degree of betrayal, but it’s a reinterpretation in another language. It’s not the language of literature; it’s the language of cinema.”

He said the novel’s themes of absurdity, alienation, and colonial injustice remain pressing.

“When you see what’s happening, the wars, the rise of the far right, the misdeeds of colonialism, the destruction of nature, all these philosophical questions are in Camus’ book.”

Actor Benjamin Voisin, who plays Meursault, said it was extremely tough to portray such an emotionally detached and indifferent character.

“It was hard for me to be asked to never ‘act.’ But I had to find a compromise between the role, Camus’ philosophy, and Ozon’s film,” he said.

The Stranger is one of 21 films competing for the prestigious Golden Lion, which will be awarded on Sept. 6. — Reuters

BSP may deliver one last cut in December

BW FILE PHOTO

THE BANGKO SENTRAL ng Pilipinas (BSP) could pause its easing cycle at its next meeting and deliver its final rate cut in December.

“We had expected BSP to cut in August. We also penciled in a pause for October, largely because we feel the BSP will be watching the Fed and what the Fed decides to do. That’s why we actually expect the last cut for this year to come around at their December meeting,” Nicholas Antonio T. Mapa, chief economist at Metropolitan Bank & Trust Co., said on Money Talks with Cathy Yang on One News.

“So, pause in October, wait things out — just see how data plays out, see where the Fed takes policy rates — and then maybe decide by December. With inflation still quite manageable, with growth still needing a bit of a boost, this could give Governor Remolona enough leeway to cut policy rates before the end of the year.”

Last week, the Monetary Board slashed the target reverse repurchase rate by 25 basis points (bps) for a third straight meeting to 5%. It has now slashed borrowing costs by 150 bps since it began its easing cycle in August 2024.

BSP Governor Eli M. Remolona, Jr. said the latest cut puts the policy rate at a “sweet spot” in terms of both inflation and output, signaling that the central bank is nearing the end of its rate-cut cycle.

However, he said one last reduction could be possible this year if economic conditions warrant more support.

The Monetary Board’s last two meetings this year are scheduled for Oct. 9 and Dec. 11.

Mr. Mapa said headline inflation may have picked up slightly last month due to higher prices of electricity, fish and vegetables.

“On the downside, we’re looking at rice disinflation or deflation to continue to weigh or to offset some of the uptick in headline inflation,” he said.

The Philippine Statistics Authority will release August inflation data on Friday, Sept. 15. A BusinessWorld poll of 16 analysts conducted last week yielded a median estimate of 1.3% for the August consumer price index.

Headline inflation sharply eased to a near six-year low of 0.9% in July from 1.4% in June, bringing the seven-month average to 1.7%, below the BSP’s 2-4% annual target.

He added that the impact of the government’s move to halt rice imports for two months on prices is likely to be limited as it coincides with the harvest season.

“September is generally a low import volume month… We also do have quite a bit of domestic rice supply. So, I don’t think the ban would impact prices significantly in the sense because there’s so much rice in our stocks. We’ll likely just see headline inflation tick slightly higher,” Mr. Mapa said.

The 60-day suspension of rice imports began on Sept. 1 and will end on Oct. 30. It covers imports of regular milled and well-milled rice but excludes varieties that are not commonly produced locally. — Katherine K. Chan

PSE launches new partnership to boost global investor outreach

Bloomberg Philippines Head of Sales Charina Evangelista, Bloomberg ASEAN Head of Market & Product Specialists Vignesh R S, Bloomberg ASEAN Head of Sales Kelvin Cen, Bloomberg APAC Head of Market & Product Specialists Manju Sakhrani, Bloomberg APAC Head of Sales Bing Li, Securities and Exchange Commission Chairman Francis Ed. Lim, PSE Chairman Jose T. Pardo, PSE President and CEO Ramon S. Monzon, PSE Independent Director Chief Justice Teresita Leonardo De Castro (ret.), PSE COO Roel A. Refran, and PSE Corporate Secretary Aissa V. Encarnacion. — PHILIPPINE STOCK EXCHANGE

THE PHILIPPINE STOCK EXCHANGE (PSE) and Bloomberg, a global financial data and media company, have announced a partnership aimed at boosting global investor awareness of the Philippine capital markets, through a series of joint outreach initiatives both locally and internationally.

The partnership was launched on Thursday with a bell-ringing ceremony and a panel discussion featuring PSE President and Chief Executive Officer Ramon S. Monzon, Bloomberg’s Asia-Pacific Head Bing Li, and Securities and Exchange Commission (SEC) Chairman Francisco Ed. Lim.

Under the agreement, the PSE and Bloomberg will organize various investor-focused activities such as virtual roadshows and C-suite roundtables. They also plan to explore enhanced training opportunities for Philippine-based investor relations professionals.

During the 40-minute panel discussion, Mr. Monzon noted that the Philippines is home to some of Asia’s most dynamic companies, which are actively pursuing growth, expansion, and sustainability. Mr. Lim, for his part, said that integrity and credibility are vital to the development of the capital markets.

“Our objective really is to be able to leverage the global reach and expertise of Bloomberg so that our companies can reach out to global investors. And hopefully global investors will get to know about our listed companies and invest,” Mr. Monzon said.

Asked about the potential benefits for listed firms, Mr. Monzon said the collaboration provides a platform for companies to share key information — such as earnings, strategic initiatives, and growth plans — with an international audience.

“And because they’re on a global stage, I think it helps them become more transparent. It’s one of the transparency [requirements] of the global market,” he added.

Mr. Monzon expressed hope that continued dialogue with market participants would generate stronger global interest in Philippine-listed companies.

Meanwhile, Mr. Li said the outreach efforts highlight the Philippine market’s openness and growing appeal to global investors, particularly those eyeing Southeast Asia.

“This initiative can start an important dialogue with local market participants about how they can better tell their story to global investors through transparency and data,” Mr. Li said. — Alexandria Grace C. Magno

From sinking streets to carbon solutions

FLOOD SITUATION near the corner of Mother Ignacia and Sgt. Esguerra street in Barangay South Triangle, Quezon City after a heavy downpour on Aug. 30. — PHILIPPINE STAR/MIGUEL DE GUZMAN

By Angela Arnante

WHEN Quezon City streets went underwater after just a few hours of localized rain on Aug. 30, many were shocked. It is unusual for short bursts of rainfall to paralyze a major city in Metro Manila. We can’t predict the next similar downpour, but we know our infrastructure cannot adapt anymore, either due to corruption or the changing climate. And one thing is for sure, we know who pays for it: everyone.

Economists call this kind of spillover damage an externality — costs created by one actor but borne by others. When carbon emissions go unchecked, the rest of society shoulders the impact through stronger storms, disrupted harvests, health risks, and billions spent on response and recovery. Worse, such billions are pocketed and infrastructure — like flood control projects — are haphazardly done or not done at all.

The challenge is that these costs remain invisible in balance sheets. Without rules to make them matter, there is little incentive for firms to change their behavior. The question, then, is how to bring the hidden damage back into the decision-making of those who cause them.

SCARCITY CREATES PROPERTY RIGHTS
The late economist Harold Demsetz offered an answer: property rights emerge when externalities grow too large to ignore. When resources are abundant, there is little reason to define ownership. But when scarcity creates conflict or harm, societies invent property rights to manage them.

That is exactly what carbon credits represent. The atmosphere’s capacity to absorb greenhouse gases safely is limited. Once emissions exceed that capacity, damage multiplies in the form of extreme weather and economic disruption. Carbon markets establish property rights over a scarce global resource by turning each ton of emissions into a tradable credit. Polluters can no longer treat the air — the atmosphere — as a free dumping ground.

BARGAINING MAKES IT CHEAPER
Ronald Coase — later awarded the Nobel Prize in Economics — showed that once property rights are clear, people can bargain to resolve externalities more efficiently. Carbon markets embody this principle. A company that can reduce emissions or remove emissions from the atmosphere can sell credits to one that cannot. The outcome is the same — emissions fall — but at a much lower overall cost to society.

This is why carbon trading has taken root worldwide, from the European Union’s Emissions Trading System to regional initiatives in California and Asia. The point is not to excuse polluters. It is to harness market incentives so that reductions happen where they are most efficient, ensuring every peso or dollar spent on climate action goes further.

CARBON CREDITS AS PERSONAL PROPERTY
For the Philippines, a country highly vulnerable to climate risks, this economic logic carries particular weight. Each storm that disrupts farms, damages infrastructure, or displaces families is a reminder that climate change is not only an environmental problem, but also an economic one. Yet our current system leaves the costs scattered across government budgets, relief operations and ayuda (assistance), and household losses.

Carbon markets offer a different approach: make responsibility visible and tradable. A factory that emits must either invest in reducing its pollution or buy credits. A community that restores mangroves or protects watersheds — natural buffers against extreme weather — can earn credits and sell them. This transforms responsibility into an economic transaction: emitters pay, protectors gain, and society benefits.

For carbon markets to work in the Philippines, carbon credits must be firmly anchored in law. The clearest path is to recognize them as personal property — intangible but transferable, like royalties or intellectual property. This classification matters because it separates the carbon service from the land itself.

Under the Revised Civil Code, whoever owns the land is presumed to own the trees, and by extension, the carbon they store. On government forestlands, this rule means that carbon rights would revert to the State once the 25-year tenure — renewable for another 25 years — contract expires. This leaves communities and project developers without lasting claims. Carbon projects are required to last at least 30 years and ideally until 100 years.

Recognizing carbon credits as personal property breaks this dependency on land ownership. It ensures that those who generate and maintain carbon projects continue to own the credits they produce, even if their land tenure is temporary, even if land ownership changes.

The same principle should apply to projects on ancestral domains and private lands. Carbon credits should still be treated as personal property, distinct from land ownership. The key difference is that tenure limits do not apply: the land and its produce are already privately held. What matters in this case is a fair allocation of benefits and incentives among the stakeholders involved.

Only once credits are firmly recognized as property should they be treated as securities when pooled or marketed as investment products. This sequencing matters: without property rights as a foundation, securitization risks producing fragile paper claims without real ownership behind them.

In short, property first, securities second, if needed. When carbon credits are secured as personal property, ownership is clear, trade is possible, and incentives are aligned for long-term investment in climate action.

MAKING RESPONSIBILITY COUNT
Externalities always impose costs. The question is whether those costs remain hidden and passed on to the public, or whether they are assigned to the actors who create them. Demsetz helps explain why carbon credits had to be invented: because the atmosphere’s capacity to house carbon safely is scarce. Coase explains how trading those rights makes reductions efficient. Together, they point toward a system where responsibility is no longer invisible, but shared and allocated fairly.

Storms will still come, but the way we prepare for them can change. With carbon markets, the burden of climate responsibility need not fall entirely on ordinary Filipinos. It is time to reward activities that cut emissions and absorb carbon — from protecting forests and planting new ones, to generating renewable energy, capturing methane, improving farm practices, and investing in carbon removal technologies. And for carbon markets to succeed, carbon credits must rest on secure and clearly defined property rights.

 

Angela Arnante is a policy consultant at the Foundation for Economic Freedom.

angela.arnante@fef.org.ph

Venice Film Festival: Kathryn Bigelow spotlights nuclear threat in Venice comeback film

Rebecca Ferguson in A House of Dynamite

VENICE — US director Kathryn Bigelow launched her latest movie, A House of Dynamite, at the Venice Film Festival on Tuesday, saying she hoped the tense thriller would sound the alarm over the ever-present danger of nuclear catastrophe.

Her first film in eight years traces the launch of a lone, unidentified ballistic missile towards the United States, triggering a desperate race to find out who is responsible and how to respond.

“This is a global issue, like where we are with nuclear weapons,” said Ms. Bigelow, who in 2010 became the first woman to receive the best director Oscar for her Iraq war movie The Hurt Locker.

“Of course, hope against hope, maybe we reduce the nuclear stockpile someday, but in the meantime we are really living in a house of dynamite,” she told a press conference, alongside some of her stars, including Idris Elba and Rebecca Ferguson.

“How is annihilating the world a good defensive measure?”

The film tracks the 18 minutes it takes for the missile to be launched from the Pacific until it reaches Chicago, unfolding through the eyes of myriad officials — from the US president to an anti-missile crew based in Alaska to military brass working inside US Strategic Command.

“(There are) these incredibly competent people operating on an infinitesimally short timeline, and the fate of the world is at stake,” Ms. Bigelow said.

Ms. Bigelow’s last major movie was the 2017 historical crime drama Detroit. Before that, she dramatized the decade-long hunt for Osama bin Laden in Zero Dark Thirty.

With A House of Dynamite, Ms. Bigelow revisits the sweeping, politically resonant storytelling that defined her most celebrated work.

MUTUALLY ASSURED DESTRUCTION
Defense analysts believe there are up to 13,000 nuclear weapons in the world, in the hands of nine countries — more than enough warheads to destroy life on earth many times over.

“We’ve constructed this weaponry that could end all life, and it’s miraculous, frankly, that something horrific hasn’t happened already. So many of these weapons are on a hair trigger system in countries like ours,” said the scriptwriter Noah Oppenheim, a former president of NBC News.

Cast members said portraying characters caught inside a nuclear crisis was harrowing.

“I learned I don’t have the courage to be in politics,” said Mr. Elba, who plays the US president. Jared Harris, who plays the US defense secretary echoed that sentiment. “I am grateful that I will never be put in that situation,” he said.

A House of Dynamite is one of three films US streamer Netflix is showcasing at Venice. The other two are Guillermo del Toro’s Frankenstein and Noah Baumbach’s Jay Kelly.

All three are competing for the prestigious Golden Lion prize, which will be awarded on Sept. 6. — Reuters

FAO: Almost half of Filipinos can’t afford a healthy diet

Based on the latest The State of Food Security and Nutrition in the World 2025 by the Food and Agriculture Organization (FAO), 44% of Filipinos could not afford a healthy diet in 2024. This means that 51 million Filipinos are short of budget needed for a healthy diet. The FAO defines a healthy diet as one that can sustain a person’s physiological needs and help prevent ailments.

FAO: Almost half of Filipinos can’t afford a healthy diet