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PCC flags franchise contracts that dampen competition  

OFFICIALGAZETTE.GOV.PH

THE Philippine Competition Commission (PCC) said some provisions of franchise contracts may be anti-competitive, including pricing restrictions and the imposition of geographic territories on franchise holders.

At a webinar organized by the Philippine Franchise Association (PFA), PCC Chairman Arsenio M. Balisacan said the industry faces “challenges” in sustaining a competitive environment.

“The franchising industry… requires balancing competition enforcement with maintaining contractual limitations that protect intellectual property rights and trade secrets of franchisors. For this reason, the PCC wants a proactive approach to ensure that the sector remains competitive as it grows,” he said.

He said franchisees are bound to follow a limited set of formats or supplies offered by the franchisor to remain in compliance with brand standards, though the pricing and geographical clauses in their contracts may not pass competition review.

“Franchising is a popular gateway for starting businesses and an established track of bringing in international brands to the country. As the antitrust regulator, the PCC recognizes PFA’s important role in ensuring that pro-competition practices are observed in the sector,” Mr. Balisacan added.

He said the challenge lies in enforcing Section 15(e) of Republic Act No. 10667 or the Philippine Competition Act, which forbids the imposition of restrictions on the contract for sale of goods or services, but deems franchising, licensing, merchandising, and distributorship agreements acceptable business practices.

“The PCC is strengthening competition awareness in the growing franchising sector as it sees the industry gaining popularity and fast becoming an important contributor to the Philippine economy,” it added. — Revin Mikhael D. Ochave

Energy-efficiency inspections of government agencies kick off

THE Department of Energy’s (DoE) Energy Utilization Management Bureau (EUMB), has launched a series of spot checks of government agencies to ensure their compliance with energy efficiency and conservation policies.  

The first spot checks took place on March 30 to monitor compliance with the Inter-Agency Energy Efficiency and Conservation Committee’s advisory on the “Mandatory Implementation of Energy Efficiency and Conservation Programs, and the Strict Observance of the Government Energy Management Program (GEMP) Guidelines” dated March 14.

GEMP sets a target for all government entities (GE) to reduce their electricity and fuel consumption by 10% via more efficient use of existing equipment.

The prescribed practices include operating air-conditioning systems for six hours a day, which can be extended to eight hours during the hotter months, at a temperature setting not lower than 24 degrees Celsius.

Each GE will be issued a star rating to be posted at its entrance, with a one-star rating being the lowest. Ratings will signify the degree of compliance.

Projected savings for GEMP amount to P550 million from this year’s electricity and fuel budgets of P2.8 billion and P2.7 billion, respectively.

The first agency to be spot-checked was the Department of Science and Technology-Industrial Technology Development Institute (DoST-ITDI) which showcased its solar streetlights and solar cell installations, aside from the use of LED lamps and inverter air-conditioners.

The DoE deemed the DoST-ITDI offices fully compliant with the GEMP, and issued an agency rating of five stars.

The National Housing Authority and the Public-Private Partnership Center likewise received five-star ratings, while the Department of Agriculture received a rating of three stars.  

The EUMB said it will be continuing the inspections nationwide to strengthen the public sector’s commitment to energy efficiency and conservation. — Ram Christian S. Agustin 

ILO, Japan complete 11 water projects in Mindanao

ELEVEN water sub-projects were completed in Mindanao following a three-year partnership between Japan and the International Labour Organization (ILO).

“This may be the last of our 11 water system sub-projects with the ILO, but the assistance of the people of Japan to the Bangsamoro region will not end here. We are determined to keep our active contributions going until we see a very peaceful and progressive region that the Bangsamoro people truly deserve,” Japanese Ambassador Koshikawa Kazuhiko said in a statement.

The program is the ILO-Japan Water and Sanitation Project signed in 2019 and funded by Japan. Beneficiaries of the water project are estimated at nearly 12,000 households in remote areas of Lanao del Sur, North Cotabato and Maguindanao.

“Despite the challenges brought by the pandemic, what matters is the immeasurable and lasting impact of the project to the people. The project not only provided potable water but also a decent source of income during the pandemic,” Mr. Koshikawa said.

On April 5, a level II ground source electric water pump system in Tenorio, Datu Odin Sinsuat, Maguindanao was turned over to the local government.

This sub-project in Tenorio also includes a treatment facility and four tap-stands.

The facility serves around 70 households of mostly indigenous families, retired military personnel and other residents. — Luisa Maria Jacinta C. Jocson

Covered period vs validity period in VAT refunds

Over the past few years, policymakers have taken measures to streamline the filing process of VAT refund applications with the Bureau of Internal Revenue (BIR) to ease the burden on taxpayers. For instance, perhaps one of the more significant amendments to the Tax Code introduced by the TRAIN Law is the 90-day period within which the BIR should act on such applications. Another example is the BIR’s issuance of Revenue Memorandum Order No. 47-2020, which significantly reduced the required supporting documents for VAT refund or tax credit applications.

Previously, the requirement to provide voluminous documents and the protracted period for resolution of refund claims have led many taxpayers to veer away from even attempting to pursue this course of action, lest they endure incurring considerable time, administrative costs, and continuously testing the limits of their patience, only to be faced by a grim outcome: the denial by the BIR of their claims. With the 90-day limit and streamlined documentary requirements, taxpayers will arguably feel more confident in filing claims with the BIR.

But one might wonder: are these measures enough? Granting tax refunds or issuing tax credit certificates will result in reduced revenue. Thus, while the resolution period of the claim has become considerably shorter, the BIR is still more inclined to deny applications of this nature, considering that taxes are the lifeblood of the government. The denial will then prompt the aggrieved taxpayers to seek recourse from the Court of Tax Appeals. What follows next is an entirely different battle altogether — one that is fraught with providing not just copious legal bases but sufficient supporting documents and evidence to prove the taxpayer’s entitlement to the refund claim. But while this process may understandably be tiring for taxpayers, perhaps they can find comfort in the fact that court decisions, more often than not, serve as a guide on how they can be more vigilant in their compliance. One such case is the Supreme Court (SC) case involving a tax refund that was penned in September 2020 (G.R. No. 236325).

In that case, the taxpayer classified its sales to a buyer during the third and fourth quarters of the fiscal year (FY) 2010 as zero-rated sales and applied for a tax refund of the related input taxes that it was not able to utilize. To support the VAT zero-rated sales, the taxpayer submitted a Certification from the Board of Investments (BoI) dated Jan. 27, 2010, which states that the buyer is a BoI-registered entity that exported 100% of its total sales volume from Jan. 1 to Dec. 31, 2009. The Certification indicates that it is valid from Jan. 1, 2010 to Dec. 31, 2010, unless sooner revoked by the BoI.

Denying the refund claim, the SC held that the BoI Certification merely showed that the BoI-registered entity exported 100% of its total sales in 2009. However, nothing in the Certification showed that the buyer exported its products for the third and fourth quarters of 2010, or from Jan. 1, 2010 to June 30, 2010, which is the period subject of the refund claim.

The decision’s rationale is that it is not enough that zero-rated invoices or official receipts are issued. The taxpayer must prove that such issuances are valid based on the existence and validity of the underlying zero-rated sales to be entitled to a refund or tax credit. Hence, the BoI-registered buyer must furnish its suppliers with a copy of the BoI Certification attesting that it exported 100% of its products to enable the supplier to confirm the zero-rated sales treatment.

While the BoI Certification issued to the BoI-registered entity allowed the seller to accord VAT zero-rating status to its sales during the validity period of the certification or until Dec. 31, 2010, this is pre-empted by the condition that the BoI-registered entity must actually and eventually export such products. Notably, the BoI Certification was issued on Jan. 27, 2010. Since the BoI can only attest to actual exports after the end of the taxable year, at that point in time, it could only certify the export sales for the calendar year 2009. Thus, the Certification failed to prove that the BoI-registered entity exported all its in 2010. For the taxpayer’s 2010 sales to qualify as zero-rated sales, the BoI must certify that the buyer actually exported all its products from Jan. 1, 2010 to Dec. 31, 2010.

From the ruling, what is controlling to qualify as zero-rated sales is the confirmation of the period of actual export sales in the BoI Certification and not its validity period. As the Court explained, the certification’s validity period is only meant to accord zero-rating status to sales made during the extended period to avail of this benefit. It is not proof that the relevant sales were, in fact, entirely exported during the same period.

While appeal to courts may give taxpayers another window of opportunity to prove their claims, the ruling nevertheless highlights how important it is for taxpayers to be more prudent in demonstrating their entitlement not just in their legal defenses, but in their supporting documents as well.

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.

 

Jericho Valencia is an assistant manager at the Tax Services Department of Isla Lipana & Co., the Philippine member firm of PricewaterhouseCoopers global network.

jericho.valencia@pwc.com

Phoenix Suns deal final blow to Los Angeles Lakers’ postseason hopes; LeBron James sits out

DEVIN Booker scored 32 points and made six 3-pointers in three quarters on Tuesday night to help Phoenix post a 121-110 victory over visiting Los Angeles, a triumph that eliminated the Lakers from the play-in berth race as well as providing the Suns with a franchise-record 63rd victory.

LeBron James sat out with an ankle injury for the fifth time in seven games as Los Angeles (31-48) lost its seventh straight game. The setback stomped out the Lakers’ final hope after the San Antonio Spurs defeated the Denver Nuggets earlier in the night.

Deandre Ayton added 22 points and 13 rebounds and Chris Paul recorded 12 assists as the NBA-best Suns (63-16) snapped a two-game slide. Phoenix surpassed the 62 wins put together by the 1992-93 and 2004-05 teams.

Russell Westbrook scored 28 points and Anthony Davis registered 21 points and 13 rebounds for Los Angeles, which dropped to 11-28 on the road. Phoenix is an National Basketball Association (NBA)-best 32-8 at home.

Cameron Johnson had 12 points and Mikal Bridges added 10 for Phoenix, which shot 49% from the field and was 14 of 39 from 3-point range. Cameron Payne contributed 11 assists for the Suns, who went 4-0 against the Lakers this season.

Austin Reaves tallied 18 points and Carmelo Anthony and Dwight Howard added 10 points apiece for Los Angeles, which shot 45.3% and was 9 of 29 from behind the arc.

The Suns led 63-58 at half time before dominating the first 9:23 of the third quarter. Crowder and Booker drained 3-pointers during a 12-0 burst to give Phoenix an 84-65 lead. The advantage reached 20 when Booker connected on another trey to make it 87-67 with 5:30 left in the period.

Booker hit his third 3-pointer in a span of 89 seconds to increase the lead to 90-68 with 4:46 remaining.

Ayton finished off the quarter-opening 33-12 burst with a turnaround jumper to boost the margin to 96-70 with 2:37 to go.

Booker completed a 16-point third quarter with a layup with 9.1 seconds left as Phoenix took a 98-80 lead into the final quarter.

The Suns led by 25 midway through the final stanza before Los Angeles scored 12 in a row to cut into the margin.

Booker scored 16 first-half points as the Suns held the five-point lead at the break. Westbrook had 18 in the half for the Lakers. — Reuters

Tiger return at Augusta National has Masters buzzing

AUGUSTA, GA. — The Masters is always something special but add in a Tiger Woods comeback and the end of coronavirus disease 2019 (COVID-19) restrictions and the year’s first major is poised to be turned into a golfing celebration.

After COVID-19 limited the number of spectators allowed onto the grounds over the last two years, the galleries are back in full force and so is the unmistakable Augusta National buzz amplified by the presence of Woods on the manicured fairways.

Everyone entering stately Augusta National can sense the difference.

The Azaleas seem to smell a little sweeter, the Pimento cheese sandwiches a little tastier and the traffic a lot busier.

“You can feel it,” said Spain’s Jon Rahm, the world number two and betting favourite to walk away with the coveted Green Jacket on Sunday. “A lot of it is Tiger.

“I was playing with Tony Finau on the front nine yesterday.

“We were on seven, and they (Woods group) were walking down on two, and I’ve never seen a mass (of spectators) this big, even on a Sunday in contention, on those two holes.

“There’s a lot more electricity in the air in that sense, and you have Tiger being there, yeah. Monday felt like a Saturday in a regular event.”

TIGERMANIA RETURNS
The first day of official practice on Monday offered a glimpse of what to expect from the week ahead.

Tigermania is set to return after Woods confirmed on Tuesday he will play the Masters 14 months after a car crash that nearly resulted in doctors amputating his right leg, setting the stage for what could go down as one of sport’s greatest comebacks.

“It was unbelievable,” said Justin Thomas, who joined Woods on his Monday practice round along with Fred Couples.

“I had a couple of buddies send me some pictures last night, and that’s probably more people than have ever watched me play a round at Augusta National and they weren’t there to watch me.”

If returning from a devastating injury was not enough Woods upped the ante by putting himself in an even bigger spotlight, saying not only is he ready to play but capable of winning a sixth Green Jacket.

Not even his fellow golfers are betting against him.

“I wouldn’t be surprised,” said Rory McIlroy, who will be hunting a first Masters title that would see him complete the career Grand Slam of all four majors. “He’s hitting it well. He’s chipping well. He’s sharp.

“It’s just the physical demand of getting around 72 holes here this week.

“So would I be surprised? No, I’m not surprised at anything he does anymore.”

GREAT THEATER
Woods has not competed on the PGA Tour since the November 2020 Masters, his decision to return this week ensuring great theatre to bring the curtain up on the majors season.

Certainly the 15-time major winner could pick no better place for a coomeback than Augusta National.

Woods has made 23 Masters appearances and has a locker packed with Green Jackets, the last coming in 2019 when after years of surgery and personal problems against all odds he managed to end an 11-year majors drought.

“Delighted to hear Tiger is going to give it a go at the Masters,” tweeted Jack Nicklaus. “While he’s in a different place in his life, Tiger wouldn’t tee it up if he didn’t think he could compete and win.

“Tiger knows this golf course like the back of his hand and, in 2019, once in position, he remembered how to win.

“If his body holds up, could he do it again?” — Reuters

Vintage cars

PEXELS-GEORGE SULTAN

Should vintage cars, or those at least 40 years old from the date of manufacture, still be allowed on Philippine roads just like any other motor vehicle? The Senate seems to think so, thus its decision to pass in early February its Senate Bill 2493, or the proposed law regulating the use of vintage, historical, classic, and collector motor vehicles.

It remains uncertain whether the approved bill will soon be enacted. However, there doesn’t seem to be any strong opposition to it from lawmakers, regulators, Malacañang, or even the motor vehicle industry itself. Numerous hearings on the bill were held, and most issues raised early on appear to have been already resolved.

I, for one, support the bill, being the owner of a 1975 model car. And while I don’t fully agree with all the provisions of SB 2493, I deem it a fair regulation in encouraging the “preservation, maintenance, occasional use, and registration” of vintage vehicles — “a motor vehicle, whether powered by an internal combustion engine, electricity, a combination of both, or other means, that is at least 40 years old reckoned from the date of manufacture, whose chassis, engine, steering assembly, and suspension assembly are either original or authentic and whose body has not been altered in general appearance…”

The more significant provisions of the bill, in my opinion, cover vehicle registration and allowable use, as well as exemptions from certain standards. While the latter may not sit well particularly with environmental groups, who may legally question the exemption as possibly contrary to the Clean Air Act, I still believe the bill’s compromise is a fair and realistic approach to regulation.

Section 5 of SB 2493 states that, “in recognition of their small number, their expected limited use, and the historical fact that the technology available at the time of their manufacture will not permit them to meet modern standards, vintage vehicles registered under this Act shall not be required to meet clean-air, anti-pollution, safety, road-use, and other standards that were not in force at the time of their manufacture, either as a condition for their registration and use on public roads or otherwise, the provisions of the Clean Air Act (RA 8749) and any other law or regulation notwithstanding.”

Section 5, however, also states that “vintage vehicles manufactured after Dec. 31, 1967 must be fitted with safety belts as mandated by Republic Act No. 8750 or the Seat Belts Use Act of 1999.” Meantime, the registration of vintage vehicles is proposed to be valid for at least three years. Such vehicles will also be issued special plates that indicate the vehicle’s year, model or date of manufacture.

But the bill also states that vintage vehicles are still “subject to inspection… in compliance with the minimum safety and roadworthiness guidelines established by the Land Transportation Office (LTO) in consultation with stakeholders. In no event shall the standards for safety inspection for vintage vehicles registered under this Act exceed or be more stringent than those that were in force at the year the vehicle was manufactured.” The LTO can also “random inspection of registered vintage vehicles on public roads and highways.”

Personally, I would have preferred that vintage vehicles are still made to comply with current emission, anti-pollution, and safety standards and conditions. However, recognizing as well that many vehicles aged 40 years or older are unlikely to meet or strictly comply with such standards, then a blanket exemption may be a better approach.

Anyway, the exemption is conditioned on “limited use” of such vehicles on roads. After all, for most owners of vintage cars, their special vehicles are collectibles and not daily drivers. As such, given the value of their vehicles, particularly those fully restored, and considering that these are generally not insurable, then these vehicles actually spend more time in the garage than on the road.

Registration of a motor vehicle as vintage, and thus exempt from certain standards, is subject to certain conditions. For one, “a vintage vehicle registered or otherwise benefitting under this Act shall be preserved and maintained in a historically correct condition, which… shall mean that its chassis, engine, steering, and suspension shall not have been replaced or modified except with original or authentic components, and its body has not been changed in general appearance.”

Also, a vintage vehicle that is “imported after the effectivity of this Act, or is registered under this Act, or otherwise benefits from any exemption or privilege under this Act shall be used only for personal purposes and/or leisure driving. A vintage vehicle shall in no event be used for commercial purposes, except only for motion pictures, advertisements, pictorials, weddings, and motorcades.”

I believe SB 2493 is a practical legislation in recognizing the “limited use” of vintage vehicles as a matter of circumstance, rather than having to actually legislate limitations on their use. After all, a well-maintained and well-running vehicle, despite being vintage in age, may in fact be more roadworthy than a newer but poorly maintained vehicle.

In the case of India, for instance, a new law on vintage cars approved last year requires a vintage vehicle to be at least 50 years old, counting from the day of its original registration. Moreover, vintage vehicles are allowed only limited use of public roads, for the purpose of exhibition, refueling, maintenance, and participation in vintage rallies.

At the end of the day, however, the proof of the pudding is in the eating. Thus, while SB 2493 covers the broad strokes, the proposed law’s implementing rules and regulations will spell out and detail the actual terms and conditions for the registration and use of vehicles aged 40 years and older. One can only hope such rules will be just as practical, realistic, and fair as their enabling law.

 

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

matort@yahoo.com

Changing healthcare through the treatment of children with cleft conditions

WWW.OPERATIONSMILE.ORG

FORTY YEARS after its beginnings in the Philippines, Operation Smile aims to treat 1,200 children with cleft conditions in 2022.

In 1982, Dr. Bill Magee, a plastic surgeon, and his wife Kathy, a nurse and clinical social worker, traveled to the Philippines for a medical mission to repair children’s cleft lips and cleft palates. However, an overwhelming response awaited them upon their arrival in Naga City. Hundreds of families came, hoping their children would receive surgery, way more than the team could treat at the time.

As the mission prepared to leave, the Magees promised to return to help more children. They gathered equipment, raised funds, and put together a team of volunteer healthcare professionals for their own medical mission to the Philippines. That was when Operation Smile was born.

Our country holds a special place in the history and future of Operation Smile. It was here where eyes were opened not only to the realities of cleft conditions in the country, but also to larger issues surrounding Philippine healthcare. In a World Health Organization (WHO) study conducted on the state of the country’s health system, said that while significant improvements have been made, with infrastructure and human resources concentrated around Metro Manila and other key cities, certain roadblocks to access remain — especially for communities residing in far-flung areas.

The regional and socioeconomic disparities that impede access to quality healthcare impact the quality of life enjoyed by many of our countrymen, the effects of which manifest in different ways. In one out of every 1,000 live births, a patient with a cleft condition is born. Without access to surgery, cleft patients may struggle to eat, breathe, and speak. On top of all that, they may have to shoulder the weight of low self-esteem brought about by fears of embarrassment or social stigma due to their condition. If surgery was made available to every child born with cleft conditions, how many lives could be changed for the better?

Together, we strive for a world where no parent has to tell their child that there is no hope for them to live happier, healthier lives — especially when it’s possible for them to do so. This belief has guided our work at Operation Smile Philippines, rallying to provide reconstructive surgery and comprehensive care for children and young adults lacking access to health, speech, and developmental services.

Now building on 40 years of success, Operation Smile is entering a new era as a global network driving access to high-quality healthcare. The problems we seek to solve go beyond treating cleft conditions. By doing so, we take steps towards achieving large-scale change in the way surgeries are delivered and made accessible across the country.

This is made possible by creating programs designed to address longstanding healthcare issues through collaboration. Through partnerships with government units, hospitals, and other nongovernment organizations, local health systems are strengthened — empowering local medical professionals with training and education to provide quality care for the communities they serve.

The activation of stakeholders is one of key vision of Operation Smile Philippines. Alongside the development of online Zoom therapy sessions and innovative approaches to care in response to the pandemic, efforts continue to erase the backlog of children with cleft conditions in the country. With a goal to successfully treat around 1,200 patients in 2022, Operation Smile Philippines works towards achieving zero cleft palate patients in the country. The operation will be a mix of Weekly Surgical Programs in our Centers in Manila, Pampanga, Davao, and more.

They say that it takes a village to raise a child, and to this day, that saying rings true. Entire communities have a hand in creating an environment where children can grow up safe and healthy. From our surgeons, partners, and volunteers, Operation Smile helps transform the lives of children for the better — giving more Filipinos across the country another reason to smile.

 

Donald Lim is the president of the Board of Trustees of Operation Smile Philippines, a nonprofit, volunteer service organization that provides free reconstructive facial surgery for children with cleft lips. Mr. Lim is also DITO CME’s chief operating officer and concurrently chief innovation officer of its parent company, Udenna Corporation.

How will Elon Musk change Twitter?

S7AKTI-PIXABAY

JUST A DAY after it was revealed that Elon Musk had bought $3 billion of Twitter, Inc.’s stock, making him its single largest shareholder, the company’s chief executive officer took to Twitter to announce how the world’s richest man had decided to exercise his leverage.

“I’m excited to share that we’re appointing @elonmusk to our board!” tweeted CEO Parag Agrawal on Tuesday. “Through conversations with Elon in recent weeks, it became clear to us that he would bring great value to our Board.”

Wait a minute. What’s this “conversations with Elon in recent weeks” stuff? Musk disclosed on Monday that his investment in Twitter was “passive,” meaning he had only stopped by to invest in the company and not to do any of the things “active” stakeholders do — such as taking a board seat or offering significant corporate guidance that other shareholders have to vote on. Now Musk has a board seat and Agrawal, who succeeded Jack Dorsey only last November, has let everyone know that the two men had been chatting for weeks.

That all sounds suspiciously active, despite Musk clothing his maneuver in passivity. Add it to the list of issues for the Securities and Exchange Commission (SEC) to sort out, along with the other potential conflicts raised by Musk’s investment in Twitter. I have written that Musk, who fashions himself as a defender of free speech but has a history of stifling his critics, might pose a danger to how Twitter approaches free speech. Now that he’s officially on the board, it’s worth weighing some of the possible pluses and minuses of his presence.

Agrawal himself synopsized the virtues of having Musk on board: “He’s both a passionate believer and intense critic of the service which is exactly what we need on @Twitter, and in the boardroom, to make us stronger in the long-term. Welcome Elon!”

Musk, the steward of Tesla, Inc. and founder of Space Exploration Technologies Corp., is a bona fide visionary and innovator. He’ll bring that mojo to Twitter, a company born from innovation but short on vision. Twitter, founded in 2006, has never been particularly well managed, and Dorsey’s departure from the company was long overdue. Agrawal, who is 37, is a career technologist with no previous experience running a company. Musk could offer insight about how to cultivate and empower talent at Twitter.

Musk could also help Twitter stretch. The platform is a favorite haunt for journalists, celebrities, political leaders, and influencers, but not a lot of regular folks use it, and it has never outgrown its early role as a forum for debate, analysis, promotion and self-expression. There’s a case to be made that it doesn’t need to — but even so, Musk could lay out alternative missions and possible partnerships for Twitter that would allow it to become more popular and influential.

Twitter’s functionality has always been kludgy. Search, editing, and sharing tools, for example, have improved at a painfully slow pace. That hasn’t served the company’s users or investors well. Twitter still hasn’t fully figured out how to manage advertising and marketing on the platform, either. Musk could bring fresh thinking to these problems.

Perhaps Musk’s most valuable contribution would be to change Twitter’s metabolism and culture — forcing it to move faster and take bolder risks. That could be exciting for everyone working there and would be fun to watch.

Now for the downsides.

For one, it’s still not clear how serious Musk is about bringing authentic institutional change to Twitter. He could just be trying to rattle Twitter’s cage and air his grievances that the company inhibits free speech — despite the fact that he has been able to wander across the platform, unconstrained, as a world-class troll.

The SEC had to order Tesla and Musk to appoint someone at the electric car company as a Twitter babysitter, empowered to monitor Musk’s irresponsible, questionable, and market-moving tweets about Tesla’s operations. Musk reveled in thumbing his nose at the SEC, the SEC filed contempt charges against him, and it was all so unseemly and frequent that it led my colleague Liam Denning to ask why Musk didn’t just stay off Twitter.

It’s a good question, even as it’s also clear that Musk is on Twitter because he likes the spotlight. Whatever his motivation for publicly airing inside information — some of it inaccurate or misleading — his tweets help erode the expectation that executives of public companies should be judicious and law-abiding.

Now Musk is a shareholder and director of a public company (Twitter) with a platform he has used in the past to promote his own company (Tesla) and his financial holdings (cryptocurrencies). Will he be live-tweeting Twitter’s board meetings or sharing non-public information about its finances? That’s likely. Will Agrawal be Musk’s sock puppet instead of his protégé? Also likely. In that context, Agrawal’s tweets about Musk’s arrival smack of Stockholm syndrome.

And how does Musk want to shape Twitter’s overall voice? He’s used the platform to wage vendettas against his critics and enemies, and his rants about speech being curtailed on Twitter seem to be more informed by his libertarian leanings than reality. Despite a stated preference for a hands-off approach to free speech, does he actually see himself as Twitter’s gatekeeper?

No one familiar with Musk’s track record expected him to be a passive presence at Twitter. It only took a day to reveal how active he intends to be. It will take a little longer to find out whether his involvement in Twitter is for the better — or for the worse.

BLOOMBERG OPINION

The most controversial World Cup of Football

0FJD125GK87-PIXABAY

The 2022 FIFA World Cup in Doha, Qatar, is probably the most controversial world cup in the history of modern sport, or of, at the very least, soccer history.

The tournament has drawn attention to the tiny Arab country which is about 25 times smaller than the Philippines. Qatar has a land area of about 11,486 square kilometers while the Philippines’ land area is about 300,000 square kilometers. Issues of corruption, culture, human and labor rights, the status of Qatar as a football power, weather, laws and political system have surrounded the award and the actual hosting of the tournament.

Controversy erupted as soon as FIFA (Federation Internationale de Football Association, the sole governing body of football) awarded the 2018 and 2022 World Cup hosting rights to Moscow and Doha, respectively, particularly with respect to the Arab country.

The announcement was met with undisguised surprise since the other bidders for the 2022 world championship were Australia-New Zealand and the United States, among others. As early as December 2010, writers like Kevin Hough stated that the “choice seems bewildering on a number of levels.”

Critics of the choice of Qatar point out that the country had never qualified for a World Cup. They have never made it past the quarter finals of the Asian Cup.

In the summer months of July to August — the traditional months that the FIFA World Cup is held — temperatures in Qatar may hit 112° Fahrenheit or about 44° Celsius. The Qataris however promised that all World Cup venues would be air conditioned. We had a chance to go to the Aspire sports complex in Doha in 2019 and the spectators’ area at the outdoor track and field oval was air-conditioned. This, of course, does not solve the oppressive heat to which athletes are exposed. There are, however, so-called rules for hot days on a soccer field based on heat index: a heat index of 85°-89° calls for mandatory two-minute water breaks per half with running time. As a final solution, the World Cup was moved to the months of November to December, with the opening day scheduled for Nov. 21. The tournament ends on Dec. 18.

Hough also takes issue with Qatar’s small population, about 2.7 million. He says that with that small population, equal to Quezon City’s, he wonders how Qatar will be able to dedicate enough indigenous support to make an event like the World Cup as atmospheric as it should be. Hough says that “attendance would surely be at an all-time low and cast serious aspersions on the tournament as a whole.”

Laws and political beliefs also serve as a damper toward the full enjoyment by the crowd of the games, Hough points out. Qatar’s rules include restrictions on the sale of alcohol which means that “fans expecting the traditional party atmosphere at the 2022 World Cup are unlikely to be enamored.”

With about eight months to the opening of the biggest soccer festival in the world, what is the present situation in Doha and the soccer world?

To begin with, investigations were continuing as late as June 2021, into how a small country with no football pedigree, as pointed out by Simone Foxman, managed to win a secret vote to become host. To be fair however to Qatar, it is ranked 51 while, for purposes of comparison, the Philippines is at number 111, as of March 31.

Human rights groups continue to decry the treatment of foreign workers which include Filipinos, while Qatar insists that the event is a catalyst for learning best practices or for improving labor laws.

The issues on human rights abuses were detailed in a Guardian expose in 2013. These abuses were related to the extreme heat and workplace accidents that led to deaths.

The Guardian report revealed that 6,500 migrant workers from India, Pakistan, Nepal, Sri Lanka, and Bangladesh have died since the Persian Gulf country was awarded the World Cup and embarked on construction projects. The total death toll is significantly higher according to the Guardian Report, as these figures do not include deaths from a number of countries which send a large number of workers, including the Philippines and Kenya.

Deaths that occurred in the final months of 2020 are also not included.

In 2019, the United Nations assailed Qatar for racial discrimination, saying a worker’s nationality plays an “overwhelming role” in how he or she is treated.

Other controversies include policies on homosexuality and Qatar’s position on LGBTQ rights.

Since 2010, Qatar has launched an unprecedented building program, largely in preparation for the 2022 tournament. The Report states that in addition to seven new stadiums (which could create the unintended second-generation problem of congestion), dozens of major projects have been completed or are underway.

Going back to the investigations, Foxman, in her June 21, 2021 article, states that “ever since FIFA, soccer’s ruling body awarded in 2010 to Russia and Qatar the rights to each host a World Cup, allegations of vote-buying have swirled. (Two members of the 24-man FIFA executive committee cast votes for World Cup hosts were suspended before the 2010 ballot after being filmed offering votes for cash). While a FIFA probe into their bids cleared Russia and Qatar of wrongdoing, investigations continue in Switzerland and France, and a 2020 US indictment accused three FIFA executive members of receiving payments to back Qatar’s bid. Qatar denies allegations of vote buying. FIFA said awarding the event to the emirate was based on the organization’s strategy of “expanding soccer into new regions.”

What is driving Qatar to host the World Cup (and other sporting events)?

According to Foxman, Bloomberg Intelligence reports that Qatar is on course to complete $300 billion in infrastructure projects to support the world’s most-watched television event. Russia reportedly spent $11 billion on the 2018 tournament which attracted 3.6 billion television and online viewers. Qatar, on the other hand, expects the World Cup to add $20 billion to the economy, equivalent to about 11% of the country’s gross domestic product in 2019.

What about Qatar’s position on the Russian invasion of Ukraine? Qatar has publicly made the “obligatory call for a peaceful settlement” but in reality sees the conflict in business terms as the conflict means increasing gas sales for the oil rich emirate.

 

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.

Change of management

PEXELS-ANDREA PIACQUADIO

THE BOARD of the Businessman’s Lunch Restaurant (BLR) is still evaluating a short list of candidates for CEO. The incumbent is retiring without leaving a clear succession plan or giving any clear endorsement of his preference.

The list of possibilities has been trimmed down to two, including the incumbent COO.

The outgoing chief was obsessed with ridding the place of rats as it became almost a single-minded strategy… until the food poisoning scandal kept the patrons away for a long time. They’re starting to come back after the drop in cases made the whole issue moot. Finally, “heard” immunity to rumors has taken hold.

The board is due to make its decision on a new CEO soon.

The newcomer, who is the son of a former chef in the restaurant, has declared through his agent that he will not subject himself to any face-to-face job interview. His CV is enough, including his college credentials. Enough for him to lay down his strategy of unity and accepting all types of cuisine, with a big nod to Cantonese fare. The restaurant next door offering this menu is already poaching customers from BLR — why not merge with or sell to the competition?

As to the old chef’s indiscretions and rumors of poaching beef stock and secretly acquiring the supply chain company? Those controversies have all been raised and come to an inconclusive judgment when the chef flew off to Honolulu to introduce pork rind and vegetables popular in his region. Does he still have unpaid taxes? The job applicant refuses to tackle that question—the culinary sins of the father should not be applied to the son.

Is his too-visible agent also applying for the job? Does he really speak for him on all points? Even these simple questions are shrugged off by the applicant. He can’t be bothered. One director asked why he is even looking for a job. (The other directors ignored this.)

And what of the survey of customers who still remember the old chef? They seem to put their trust in the son now. They claim that anyway he won’t be in the kitchen.

Is the COO too well known to the board already? Not really. The CEO made sure she was relegated to the warehouse and invisible to the patrons, and even to management. What did she do in the warehouse? The auditing group found no anomalies in requisitions and storage of supplies. The COO got high audit ratings, even if her role was marginal.

Insiders are supposed to have a clearer understanding of the situation. And the COO has some ideas on handling competition. She is not for accommodating the neighboring restaurant. The Restaurant Association of Manila (RAM) already ruled on the unethical practice of the Cantonese outfit, putting up tables and stalls infringing on the dotted line separating the two establishments. The COO wants to assert the spatial integrity of the sidewalk — this is our restaurant, and we will fight for its space — “No to Cantonese cuisine.” (Even if it has a bigger kitchen.)

There are patrons supporting the COO in food festivals that promote Filipino cuisine and highlighting its under-appreciated dessert offerings like macapuno cobbler and watermelon seeds dipped in mango sauce.

One stockholder voiced his concern over the selection process that allows one of the applicants to dodge interviews and answer questions. There are also tax issues that need to be addressed.

And do the patrons have a say on what kind of restaurant they want BLR to be? Of course, they can just switch restaurants and go for Maine lobsters and steak, or even kangaroo meat pie which is supposed to have small pockets, just as good as pork cracklings.

Where a CEO intends to bring a company is a matter of concern. The very survival of the enterprise and its continued ability to employ waiters, receptionists, chefs, and bookkeepers affects the whole street.

A change of management should highlight priorities and programs. As to the question of integrity and transparency of operations, who can argue with the importance of those? The fate of one restaurant seems to be a minor hiccup in the scheme of things.

What if this leadership issue involved a whole country?

 

Tony Samson is chairman and CEO of TOUCH xda

ar.samson@yahoo.com

Second booster shields elderly from COVID but protection wanes quickly

A FOURTH DOSE of the Pfizer/BioNTech vaccine lowered rates of coronavirus disease 2019 (COVID-19) among the elderly but the protection against infection appeared short-lived, a large study in Israel has found.

The second booster’s protection against infection dwindled after four weeks, Israeli researchers showed in their study published on Tuesday in the New England Journal of Medicine.

Protection against severe illness did not wane during the six weeks after the dose but more follow-up study was needed to evaluate its longer-term protection, the researchers said.

The study on 1.3 million people aged 60 and older looked at data from the Israeli Ministry of Health database between Jan. 10 and March 2, when the Omicron variant was predominant.

It comes ahead of a meeting by the US Food and Drug Administration on Wednesday to discuss the need for additional boosters, a week after the United States authorized a second booster shot for people aged 50 and older amid a spread of the Omicron sub-variant BA.2.

European health ministers have also urged the bloc’s governments to back a fourth dose for people over 60.

In Asia, South Korea started giving out fourth doses of COVID-19 vaccines in February and Singapore has said a second booster dose is planned for those aged 80 and older.

Another study from Israel showed last month that seniors who received a second booster of the Pfizer, Inc. /BioNTech SE COVID-19 vaccine had a 78% lower mortality rate than those who got just one.

Israel started offering a second booster in January. — Reuters

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