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WNBL: Paranaque Lady Aces remain unbeaten 

Allana Lim led the Paranaque Lady Aces in their rout of the Taguig Lady Generals, 58-37, on Sunday. — WNBL

The Paranaque Lady Aces blew out the Taguig Lady Generals, 58-37, on Sunday to remain unbeaten in the Pia Cayetano WNBL Season 2021 at the Bren Z. Guiao Convention Center in San Fernando, Pampanga. 

Allana Lim had 23 points and 13 rebounds to lift the Lady Aces to a 2-0 record and close the gap with league-leading Glutagence Glow Boosters, who have a 3-0 card. 

The Lady Aces began with a 7-0 lead, but the Lady Generals tied the game up. Lim scored five of Paranaque’s last nine markers, 16-7, and her team never looked back. Lim already had 11 points in the first half and Paranaque led, 26-15, at the turn. 

The Jayen Cruz-coached squad led by as many as 23 points in the contest even as Paranaque missed Clare Castro, who is with Gilas Pilipinas Women for the FIBA Asia Women’s Cup in Jordan. 

April Siat scored eight points and grabbed seven rebounds, and Angeli Gloriani also chipped in with six points, five rebounds, and two steals. 

Janeth Sison and Tin Capilit had 10 and 8 points, respectively for Taguig.

US date with fate

It’s all over, but the proverbial shouting, of course. Barring the most monumental collapse in Ryder Cup history, the United States will walk away with the hardware for only the fourth time since 1995 (with one of those victories coming on the strength of a final-day comeback from four points down). It headed into the latest staging of the sport’s premier team event as an overwhelming favorite, and not simply because it set up the Whistling Straits Golf Course in Wisconsin to play to its strengths. That said, there’s a reason it won’t be counting on its triumph as a sure thing until it nets the 14 and a half points it requires to win.

Certainly, the US has demons to exorcise. Despite its supposedly ascendant status in just about every meet, it has mostly failed to live up to expectations. And for all the analysis spent on the cause for its continual underachievement, even casual observers need only take a cursory look at results through the years to see why. Its strength has invariably been in fourballs and singles play, as clear an indication as any of its superior talent, but relatively weaker esprit de corps. And, if nothing else, the Ryder Cup has been all about camaraderie; the key is to make the whole greater than the sum of its parts.

To be fair, the US has been making strides in recent memory. The “pod” system devised by captain Paul Azinger in 2008 has proven to be a boon. Ditto for the captain-and-assistants arrangement that fosters continuity through the Ryder and Presidents Cups. The intent is evident: to ensure that it meets its potential. Also adding to its confidence this year, and not without irony: six rookies in name only, boasting of match play experience in other events and tournament wins that underscore their capacity to perform under pressure.

When the US tees off for singles today, it will be in possession of a whopping six-point lead. It needs three and a half of the 12 points on tap to clinch the deal. On paper, the outcome seems inevitable. Then again, golf has a fickle nature, and nothing can be etched in stone for the red, white, and blue — not even on a friendly course in front of cheering fans. Today is the day it meets its date with fate. How it does so remains to be seen.

 

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

Our Brand is Crisis: Controversies, challenges, and opportunities in pandemic procurement

For a nation obsessed with telenovelas, there is nothing more gripping and terribly dramatic as the agony and ecstasy of a Senate Blue Ribbon Committee Hearing on questionable purchases and deficiencies in compliance with procurement audits. Apart from, or maybe because of, the escalating tensions brought about by the upcoming Philippine elections in 2022, corruption inquiries and allegations occupy the headlines and most of the chatter on social media. In the midst of a health crisis, the voting public wants to know one thing — did anyone profit from the pandemic?

Exchanges of vicissitudes, public self-recriminations, and political power-mapping (or matrixing) aside, if anyone did unconscionably profit while people are literally dying on the streets, what is it with the current system that allows this to happen? Is there a means to make government purchases more efficient in an emergency where supply chains are broken, and lockdown restrictions affect suppliers’ ability to implement contracts? Under normal circumstances, the market regulates itself, but in times of crisis such as a global pandemic, the demands for goods and medicines exceed supply causing unprecedented and uncorrected price inflation. Here, the search for the balance between fast-track purchasing through simplified and streamlined processes and post-facto supplier review has begun.

THE LEGAL FRAMEWORK ON GOVERNMENT PROCUREMENT
The Philippines has a single law on procurement — Republic Act No. 9184, otherwise known as the “Government Procurement Act of 2003” (Philippine GPA). The Implementing Rules and Regulations were approved in 2003 and revised in 2009 to address, among others, deficiencies in domestic and foreign-funded procurements in government, and again in 2016, to adopt good practices from development banks to achieve “procurement professionalism.” In 2019, the Philippines went even further and submitted a request to become an observer in the Committee on Government Procurement of the World Trade Organization (WTO), in preparation for potential accession to the WTO Agreement on Government Procurement (WTO GPA). In broad strokes, the Philippines was poised to accede to the WTO GPA as the core principles of the Philippine GPA are in conformity — procurement processes are transparent, competitive, efficient, and there is accountability. The Philippine GPA likewise makes direct reference to the direct application of the WTO GPA as the relevant procurement law in case the Philippines becomes a member.

The Philippine GPA also consolidates and standardizes procurement rules and procedures for all National Government agencies including government owned and/or controlled corporations, local government units, the Senate and House of Representatives, as well as those made by all Courts in the Philippines wanting to purchase goods and services, including infrastructure and consulting services. To ensure implementation, the Commission on Audit (CoA) evaluates the compliance of all government procuring entities with the requirements under the Philippine GPA by reviewing the bidding procedures and the manner by which the bid is awarded to the winning contractor.

EMERGENCY PROCUREMENT IN THE PHILIPPINES
On March 8, 2020, President Rodrigo Duterte signed Proclamation No. 922 declaring a State of Public Health Emergency throughout the Philippines following confirmed local transmission of the COVID-19 virus. On March 16, 2020, Proclamation No. 929 was declared putting the Philippines in a State of Calamity, thereby affording the National Government and the local government units ample latitude to utilize and appropriate funds to contain the spread of COVID-19 and continue the basic services of government. The State of Calamity was extended until Sept. 12, 2021 by virtue of Proclamation No. 1021 and again until Sept. 12, 2022 by virtue of Proclamation No. 1218.

While in a State of Calamity, the Government Procurement Policy Board (GPPB) and CoA confirmed the authority given to procuring entities to use negotiated procurement for the government to timely respond to the public health emergency. These Proclamations and guidelines were further affirmed by the enactment of Republic Act No. 11469 or the Bayanihan to Heal as One Act and Republic Act No. 11494 or the Bayanihan to Recover as One Act.

The Philippine emergency procurement system allows for shortened notices for health supplies, medicines, and vaccine procurement and conferred the authority upon procuring entities to make advance payments to suppliers or winning contractors. Aside from doing away with competitive bidding in some cases and allowing for negotiated procurement, splitting of contracts was allowed and a Notice to Proceed was no longer required for the purchase to be confirmed. The only safeguard in place was that the procuring entity should ensure that the purchase shall not constitute an “irregular, unnecessary, extravagant, excessive or unconscionable use of funds, as defined by existing accounting and auditing rules.”

GAPS IN THE COVID-19 PROCUREMENT POLICY
As evinced from the line of questioning by the Senators during the Senate Blue Ribbon Hearing on public protective equipment procurement, the following bottlenecks are common or faced during emergency procurement:

• Procurement was not coordinated between the National Government and local government units.

• There is no central committee created for COVID-19 procurement; conflict or duplication of purchases was observed between the Department of Budget and Management (DBM), the Philippine International Trading Corp. (PITC), and the Department of Health (DoH).

• There is no formally defined emergency procurement governance structure in terms of accountability, approval requirements, and delegation of authority.

• A complaint handling mechanism for emergency procurement has not been convened or resorted to.

• There is a lack of clarity on the exact volume of procurement needed to meet market demands.

• Aside from CoA, there is no agency or committee responsible for the post-facto oversight or review of the procurement process.

STRATEGIES IN APPROACHING URGENT PROCUREMENT
In the recently concluded study on the “Opportunities and Challenges for Public Procurement in the First Month of the COVID-19 Pandemic: Results from an Expert Survey,” the World Bank Group recommended strategies for an improved emergency procurement system to combat the regression coefficients between efficiency and transparency in procurement:

• Assess the adoption of critical and high-risk procedures for emergency procurement and adjust the latitude on negotiated procurement accordingly.

• Improve on the regulatory framework on emergency procurement by amending the Philippine GPA.

• Strengthen and invest on e-procurement systems.

• Provide clear legal and regulatory guidelines around emergency procurement.

• Build a transparent and accountable procurement system by reviewing the procurement process done through expedited modalities such as direct contracting.

Moreover, and despite the emergency concerns, the Philippine Competition Commission (PCC) can also look into and ensure that competition policy is not disregarded in times of emergency procurement. Procuring entities should opt for competitive tendering; focus should be on building a fast-tracked and simplified competitive procedure and not on negotiated procurement. Existing contracts should not be renewed or extended, and purchases made by direct award should be limited to what is necessary in terms of volume to address the emergency. It is also prudent to start building market intelligence to inform on emergency purchases and be vigilant against suspicious selling patterns or suppliers.

The Philippines should also strongly consider accession to the WTO GPA and allow foreign or more competitors in the government procurement market.

At the core of possible procurement solutions, technology once again occupies a central component. Big data and analytics can and should be used in the supply chain to manage the impact of COVID-19. Organizations, including government agencies that provide basic services, should lean towards data-driven decisions for an effective response to procurement by creating analytic models, building databases, and capturing and predicting the volume of demand for goods and services. Big data and analytics can bring about a new frontier with the premise of transformative changes in procurement such as risk analysis, real time performance outputs or scorecards of suppliers, data mining on price trends, and predictive analytics on forecast spend and pricing. Investment in these technological structures by opening up market access to public services can also boost the nation’s capacity in accelerating growth of industries that can improve on our way of doing business.

The COVID-19 pandemic has tested the legal and administrative framework of Philippine procurement, both in times of plenty and in times of urgency. The gaps in the law and the lack of accountability indicates that procurement can be further strengthened to ensure a more agile and honest response. The quality of institutions and the capacity of the State governance is truly tested in times of contagion and calamity. Responsiveness and accountability can co-exist in an emergency response and the behemoth that is the government, with all its moving parts, can work in both national and granular levels. After all, as Jane Bodine famously ends the movie Our Brand is Crisis, “if you don’t like the road you’re on, start paving one.”

Sources used and recommended for further reading:

• Torino, Jellie M., “GPA and the Philippines: Likely or Unlikely?,” Procurement Law Journal (2016)

• Arrowsmith, Sue et al., “Public Procurement in (a) Crisis? Global Lessons from the COVID-19 Pandemic” (2021)

• World Bank Group, “Opportunities and Challenges for Public Procurement in the First Month of the COVID-19 Pandemic: Results from an Expert Survey” (2021)

 

Kristine C. Francisco-Alcantara is the Managing Partner of Abad Alcantara and Associates and is a Member of the Board of Trustees of the Foundation for Economic Freedom.

AAALaw@tradelawyers.ph

www.tradelawyers.ph

The ‘Leni line’

BW FILE PHOTO

The name Leni and word “line” happen to be anagrams. But what do I mean exactly by the “Leni line?”

Leni, of course, is the nickname of our Vice-President, Maria Leonor Gerona Robredo.

The explanation for “line” is more complex, for it has many dictionary meanings. In this particular discourse, the noun “line” refers to “a general method, manner or course of procedure.” Hence it can be used in a sentence like: “Take a hard line on fascism.” Or: “Follow Leni’s line of compassionate thought.”

Similarly, “line” means “a manner or course of procedure determined by a specified factor.” Thus, we can say that “Leni is pursuing a cause along a progressively reformist line.”

Or the “line” can be “prescribed policy” like the “Leni line” for the forthcoming elections.

I was a youth activist when I was introduced to the term “political line.” In gist, the political line is the expression of a program and objective whose attainment is based on coherent strategy and tactics. The political line is drawn from an analysis of the objective conditions and an assessment of the strength and weakness of different forces — our enemies, our allies, and ourselves.

The political line, I was told then, decides everything. Much later, I would realize that the certitude of the political line predicting success is an exaggeration. For in doing analysis and assessment, we face unknowns and changing conditions. And some conditions we just cannot change.

In the words of Machiavelli, “Fortune is the arbiter of half of our actions, but that she leaves the other half of them, more or less, to be governed by us.” It is this delicate interaction of fortuna and virtù (or leadership qualities) that will determine the outcome of the elections.

Leni definitely has the virtù. But the fortuna remains elusive for the opposition.

Consider the following:

1) The opposition was badly beaten in the mid-term elections. Not a single senatorial candidate from the Otso Diretso slate won.

2) The net satisfaction rating for President Rodrigo Duterte has been consistently high, even during the pandemic despite his administration’s many blunders. The Social Weather Stations’ last survey in June 2021 showed Duterte having a score of +62 net satisfaction (75% satisfied versus 13% dissatisfied, and the rest, undecided).

3) In the last pre-elections survey conducted by Pulse Asia in June, the frontrunner with a wide margin of 14 percentage points was the President’s daughter, Sara Duterte. Statistically tied at second place were Isko Moreno and Bongbong Marcos (whose obsession is to rehabilitate his father, the dictator and plunderer).

This is the dim backdrop that Leni and the forces of change face. Perhaps the situation has significantly changed in the wake of the explosive corruption scandal amid a pandemic. Still, the plausibility of a Duterte retreat has to be backed by data-driven evidence.

Regardless of how the situation unfolds, Leni has to tap her virtù and bend fortuna. How she goes about this is the “Leni line.”

The “Leni line” is not about self. It is not about political ambition. She honestly admits her inclination to follow her daughters’ plea for their mom to return to a calmer life.

But there is a call to duty. There is a struggle for the nation that has to be won.

She has correctly framed the political line. It is a struggle against the Duterte regime. Duterte himself is the face of failure in containing the pandemic. Duterte is the expression of impunity for corruption and violence. Duterte and his anointed candidate for President must be defeated.

So, her call is not “vote Leni.” Her bold call is to end Duterte’s rule and by extension beat the Marcos revenge.

Leni the leader is thus exploring and pursuing the most effective way to attain this objective. Remember that successful struggles necessitate broad and solid coalitions. Politics is about addition. That’s how one can isolate and beat the most dangerous enemy.

But there’s objection from those who claim that principles must come first. They question: Why deal with former Duterte supporters? Why compromise with political opportunists?

But can’t we be kind and grant the possibility that Pinoy Sauls exist in the 21st century? Politicians like Manny Pacquiao, Isko Moreno, and Panfilo Lacson can be accused of supporting Duterte’s murderous campaign against drug users. This is similar to Saul’s participation in the persecution of Jesus’ followers. What matters though is that Pacquiao et al. (and Saul) eventually saw the light.

What about the question of co-habiting with opportunists or trapos? The answer: Nothing wrong with that in terms of tactics. We should not conflate principle and tactics.

The principle is to serve the greater good. To achieve the greater good, we have to employ a variety of tactics including creating temporary alliances to vanquish the common enemy. The inability to distinguish between principle and tactics is what Lenin describes as “an infantile disorder.”

The alliance of Cardinal Sin and Cory Aquino with the treacherous Juan Ponce Enrile and Gringo Honasan was instrumental in the fall of the Marcos dictatorship.

Recently in Israel, a hodgepodge of political parties consisting of archrivals — from independent Arabs to ultra-conservative Orthodox Jews — succeeded in removing Benjamin Netanyahu from power. These parties have little in common but their hostility towards a despicable Netanyahu.

The lesson here is that strategy and tactics, including the building of coalitions, follow the political line and objective. In this conjuncture, the main objective is to have the broadest front against the principal enemy — the forces of Duterte (and Marcos).

Undoubtedly, Leni is the unifying figure. She has the political leverage and the moral ascendancy to unite the opposition of different stripes. This stems precisely from her credibility that she does not harbor any selfish political ambition.

If ever she would run, it is because her being the candidate has become the remaining viable option. This line of action requires courage. This is what virtù is all about.

In the meantime, we await fortuna. And here I quote Rapa Lopa who in turn cites the late Tourism Secretary Mon Jimenez:

“[I]f our rulers think they are all powerful, they must remember that our God of History always makes it a point to intervene when men and women need to be humbled and saved from themselves.”

 

Filomeno S. Sta. Ana III coordinates the Action for Economic Reforms.

www.aer.ph

After 45 years, a Philippine shipping line goes international!

WWW.ROYALCARGO.COM

We can all use a bit of good news at this time.

First, some context. Since the pandemic started, there has been a scarcity of cargo container vans and international shipping lines calling on Philippine ports. This has caused our exporters to default on their delivery schedules. The default, in turn, caused their customers to withhold payments triggering cashflow problems across the industry. Meanwhile, exporters of perishable goods like fresh mangoes and bananas are suffering from rotting inventories due to their inability to leave the ports on time.

The scarcity of cargo vessels calling on Philippine ports has disrupted production schedules of companies that depend on imported components for their production lines (e.g., the electronics industry). It has also caused delays in the importation of the country’s essential goods such as rice, foodstuff, and construction materials.

And here is the good news — the Department of Trade and Industry (DTI) and the Maritime Industry Authority (Marina) have worked decisively to relieve the logistics woes of our importers and exporters. For the first time in 45 years, a container ship under the Philippine flag will make an international voyage to the United States. Not only will this ease the plight of our exporters, it is a precursor for an honest to goodness Filipino international cargo line going international.

Iris Logistics, Inc., a subsidiary of Philippine logistic giant, Royal Cargo, has invested in a fleet of three carrier vessels with a 1,100 TEU capacity, the largest in the country. On Sept. 23, the MV Iris Paoay made its inaugural voyage to Los Angeles.

This is a milestone in Philippine maritime history. Why? Because the prospect of having a Filipino international cargo line will free us from dependence on foreign shipping lines. Shipping costs will significantly drop for Filipino traders thereby improving their margins. More significantly, our exporters will no longer be subjected to oppressive destination charges (exorbitant add-on fees) which are unilaterally levied upon local importers by foreign shipping lines.

What precipitated the shortage of container vans and international shipping lines calling on Philippine ports?

It all stems back to the pandemic. See, lockdowns here and around the world have caused acute disruptions to supply chains worldwide. Now that economies are slowly opening up, there is a mad rush for component and raw material suppliers to ship their goods to manufacturers. Similarly, there is a scramble for importers to replenish their inventories and a need to transport essential products like medical equipment, construction materials, and food across nations.

International shipping lines have taken advantage of the spike in sea cargo demand. With profit as a motivator, shipping lines have decreased their frequencies to low-volume ports and short-haul regional voyages. Instead, they channeled the lion’s share of their vessel capacity to long-haul routes between high-volume trading hubs (e.g., Shanghai to Rotterdam). The high demand allows them to charge premium rates on vessels which are full to capacity.

So serious is the problem that the US Federal Maritime Commission has cracked-down on the unfair trading practices of international shipping lines.

To ensure the stability of frequency and freight cost for Filipino traders, the DTI endorsed the establishment of a Filipino international shipping line for which Marina now seems willing to support.

For those unaware, Marina is the country’s regulator of maritime industries. It’s set of regulations are so antiquated that Marina only registers local shipping lines as either engaged in domestic trade or international trade, never both.

Shipping lines registered for international trade must conform to Philippine cabotage laws. As such, they are prohibited from calling on Philippine ports unless it is an onwards shipment from a foreign destination. Other than that, domestic cargo is exclusively reserved for domestic shipping lines.

The specter of violating cabotage laws is the reason why Marina disallows local shipping lines from plying international routes while concurrently engaging in domestic shipping. This regulation has been the great stumbling block that prevents local shipping lines from going international.

The container crisis we are presently going through has prompted Marina to be more flexible. In a draft memorandum dated June 9 (no memorandum number yet), Marina has softened its stance and is now open to grant permission to certain local shipping lines to ply international routes.

Fortunately, we are not short of shipping conglomerates who are willing to invest in vessels for international routes. Iris Logistics and Chelsea Logistics are among them. The permit granted to Iris Logistics to sail to the US is good only for six months. It is a step in the right direction.

If there is anything this incident has taught us, it is that we must not be dependent on foreign shipping lines. Doing so makes us vulnerable in terms of stability of trade, food security, and national security. The Philippines must have its own shipping lines connecting our archipelago to the rest of the world.

That said, we ask Congress to pass the Philippine Registry of Ships Law so as to provide the legal framework for Philippine shipping lines to concurrently serve domestic and international routes.

We further ask the Chairman of the Committee of Transportation of the House, Congressman Edgar Mary Sarmiento, to consider the following provisions in the legal framework: That we do away with the split between “coastwise license” and “international license” to allow vessels flying the Philippine flag to operate domestically and internationally in one registration; that we establish a one-stop shop for all maritime related permits and licenses with fees made reasonable; that we relax restrictions on bareboat chartering by deleting time restrictions and enabling concurrent domestic and international operation; that foreign-owned ships that are bareboat chartered by a Philippine national be allowed entry into the Philippine Register of Ships; that we apply international crewing standards to domestic shipping as well; and, that Philippine Port Authority guidelines relating to port charges must be respected and not arbitrarily raised by port operators.

The decision of Marina to allow a Philippine registered vessel to sail to Los Angeles without compromising its cabotage privileges is the first step towards breaking our dependence on international shipping lines. MARINA is showing more flexibility than it ever did before. Well done, Marina!

This development is a breakthrough for Filipino traders and the Philippine economy. 

 

Andrew J. Masigan is an economist

andrew_rs6@yahoo.com

Facebook@AndrewJ. Masigan

Twitter @aj_masigan

Whom do you trust?

“Almost everywhere we turn, trust is on the decline. Trust in our culture at large, in our institutions, and in our companies is significantly lower than a generation ago. Research shows that only 49% of employees trust senior management, and only 28% believe CEOs are a credible source of information. Consider the loss of trust and confidence in the financial markets today. Indeed, ‘trust makes the world go round,’ and right now we’re experiencing a crisis of trust.”

It was Stephen MR Covey, author of the bestseller book, The Speed of Trust, who said that, as he worried about the deteriorating credibility of leaders and institutions in the fierce world of global competition (https://www.leadershipnow.com/CoveyOnTrust.html 2019). The foundational principle for trust — whether one is giving trust or receiving trust — is credibility or “believability,” Covey stressed.

Covey, son of Stephen R. Covey, Sr. (author of the iconic business handbook The 7 Habits of Highly Effective People, 1989), was guest speaker on Sept. 13 at the 25th anniversary of the Center for Leadership and Change, Inc. (CLCI), the Philippine partner of Franklin Covey Co. The younger Covey’s focus on trust proceeds from his father’s emphasis on effectiveness above mere efficiency: trust speeds up results and cuts transaction costs, Stephen Jr. says.

Credibility earns Trust in the convergence of Character and Competence. The four cores of Credibility are: Integrity (that you are honest and congruent) and Good Intent (have no hidden personal agenda) — both indicative of Character; Capability (credentials, skills, talents) and Results (what you have delivered/produced) — both proving Competence. Loss of trust because of Character (dishonesty, lies, betrayal) is more difficult to forgive than breaches of trust because of Competence (mistakes, non-delivery of results), Covey points out.

This discussion of Trust resonates eerily but urgingly in this anxious time of the COVID-19 pandemic. Distrust is a deep reverberating foreboding of heightened risks in a cloudy future. The Reliability and Confidence which we intuitively know as sentient human beings to be the bases for trusting anyone and anything are doused in the fear for survival. Only Trust in God in Christian Faith and Hope remains unchallenged for Dependability.

Trust grows in centripetal waves or ripples from a Self-Trust that is the pebble dropped in the pond of relationships. The Covey metaphor shows “5 Waves” growing from Self-Trust to Relationship Trust, to Organizational Trust, to Market Trust, and then, finally, to Societal Trust. Details of the What-Why-How to get from “A” to “E” are neatly laid out in Covey’s book, Speed of Trust. But that might be too much to think about and analyze in this siege by COVID that has limited the concentric ripples of relationships by social distancing and the shrinking of markets, the decimation of organizations, and even the closure of institutions.

Whom do you trust in the greater society, in the claustrophobic limited interaction, and dearth of truthful information or even the fake news that undermine confidence to evaluate personal risks and hopes? A tragic case in point for Philippine society today is the critical decision of whom to trust to be the leaders of the country, in the palpable pernicious culture of graft and corruption, lies, and dishonesty, misrepresentation and manipulation by some in power and those wanting to be in power. We have national elections on May 9, 2022. Whom do we trust? Whom do we vote for?

A good friend, Lirio Ongpin-Mapa, CLCI vice-president and the first accredited facilitator (since 1989) of Stephen R. Covey’s “The 7 Habits of Highly Effective People” in the Philippines offered some test questions (based on Covey’s Cores of Credibility) that one might ask of those who have declared their intentions to run for public office in 2022, to vet their trustworthiness for the sacred role and responsibilities.

On Integrity: “Do you ‘walk the talk’ on fighting for your declared principles, especially in the face of opposition and difficulty? Are you honest in mind and hands, not stealing what is not yours? Are you willing to sacrifice self thereby to lose power and wealth, maybe even well-being and life, to stand for what is right and good? For transparency ab initio, please declare your Vision/Mission Statement.”

On Intent: “What is your agenda? (Purpose, Plans and Programs). How can we be assured that you will think and act for the common good, and not for your interests (Does he/she have business or other organizational/familial connections to help and nurture)? Are you inclined to be autocratic and dictatorial before allowing participative management and inclusive outcomes?”

On Capabilities: “What are your unique, native strengths and past experiences that you can bring into your efficient and effective performance in your aspired role as leader of the country? Do you have training and experience as a leader in high office, to give confidence to the people that you know, understand and believe what the rules and laws of the land are, that you will abide and comply with these, thereby to protect the rights and freedoms of the people?”

On Results: “What is your track record? How have you proven that you deserve the trust of the people as seen in past results (actual performance, fulfillment of promises, delivery of objectives and commitments)?”

We can pose these questions to the six possible candidates for President in the May 9, 2022 national elections. There are no allusions to any of those “wannabe’s” as to their Character or Capabilities, nor judgment on their Integrity based on reputation or track record. We borrow the disclaimer of National Artist for Literature F. Sionil Jose in his novel, My Brother, My Executioner, 1988: “All the events and characters … are real only in the reader’s imagination.”

Best to learn from Stephen MR Covey that the first level of trusting is trusting oneself. “A man who does not trust himself cannot trust anyone else.” Am I credible to myself?

Covey suggests some questions one might ask oneself: “Am I fully clear on my values? Is there sometimes a mismatch between what I think and what I say, or between my actions and my values?”

“Do I really care about other people, except those closest to me? Is it hard for me to think about concerns outside of my own challenges in life?”

“Have I identified and maximized my strengths, the better to be of help and service to others?”

But beyond the merciless self-examination of conscience and the painful care in the judgment of others, we must have Courage to stand for what is right and wrong. Integrity is the basis for Trust, and Trust is the basis of all relationships, while we live in this weary world.

“Trust in the Lord with all your heart and lean not on your own understanding; in all your ways submit to him and he will make your paths straight” (Proverbs 3:5-6).

 

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

ahcylagan@yahoo.com

Manny Pacquiao isn’t the hero the Philippines needs

MANNY PACQUIAO is running to be president of the Philippines. In a country obsessed with celebrity culture, the candidacy of its most famous son feels as inevitable as night following day. That’s reason enough for caution.

Pacquiao, or “Pac-Man,” is rightly regarded as a hero. A lightning-quick boxer of exceptional aggression and bravery, he is the only man to have held titles at eight different weight divisions, and ranks among the greatest of all time in his sport. The 42-year-old also has a compelling life story, having grown up in extreme poverty in the southern Philippines. Pacquiao presents himself as a champion of the poor and has been feted regularly for his philanthropy. What’s not to like?

Plenty, actually. There’s his lack of legislative accomplishment as a congressman and senator; his support of President Rodrigo Duterte’s war on drugs, a campaign of extrajudicial killings in which tens of thousands may have died; his illiberal policy positions on social issues. Whatever the candidate’s personal qualities and good intentions, a Pacquiao presidency would represent an extension of the strongman-savior syndrome that has done much to hold the Philippines back.

A small vignette serves to illustrate the nature of the country’s choice. The news of Pacquiao’s candidacy brought back memories of a pair of interviews that this writer attended during the 2010 campaign, and the contrast they evoked.

The first was with Benigno “Noynoy” Aquino, at the family’s house in Quezon City. Although political royalty, Aquino was a reluctant candidate who entered the race on a wave of nostalgia for his mother, former President Corazon Aquino, following her death from cancer. Better known as Cory, she had toppled dictator Ferdinand Marcos in the “people power” revolution of 1986.

The informal atmosphere and relative modesty of the surroundings were striking. The arrival of a stranger with a suitcase might reasonably have been regarded as a security risk, in a country where political violence is far from unknown (Noynoy’s father, a Marcos critic, was assassinated three years before his mother’s victory). No one seemed bothered. The freshly arrived journalist from Hong Kong was ushered into the living room, suitcase and all. It was a homely space, decorated with still-life pictures of flowers and fruit painted by Cory Aquino.

As an interviewee, Aquino was unimpressive. He didn’t radiate charisma, or demonstrate any notable eloquence. In a follow-up discussion in a back room, after the TV cameras had gone, he appeared more interested in talking about the iniquities of his rival, real estate developer Manuel Villar, than painting a vision for the country he was about to lead.

The second interview was with Pacquiao, who was then supporting Villar. The bureau got word that Pacquiao would be shooting a campaign commercial at one of the tycoon’s properties in downtown Manila, and there might be an opportunity for a brief meeting once they had finished.

The men with guns on the door were the first clue that this was a rather different crowd. Once inside, several dreary hours followed during which there was little to do apart from study the bling adorning the boxer’s entourage. No one was unfriendly, but the vibe was ostentatious. It couldn’t have been further from the relaxed and understated ambience of the Aquino household.

Once free to talk, Pacquiao himself created a positive impression, coming across as softly spoken, humble, and sincere as he outlined his campaign for congress and desire to help the poor.

Pacquiao’s endorsement wasn’t enough for Villar. Aquino won easily, a reputation for probity and decency more than compensating for his unalluring persona, and went on to become a successful president. It isn’t an unblemished legacy, and his failure to improve infrastructure and tackle law and order arguably enabled the turn toward autocratic populism under Duterte. But the Philippine economy performed well during his tenure, the country gained investment-grade status from credit-rating agencies, and its ranking on Transparency International’s Corruption Index improved. Aquino died in June at the age of 61.

There may be a lesson here. Reluctant leaders can sometimes make the most effective ones. Unburdened by obtrusive egos, they may be more inclined to delegate to technocrats, more concerned with the soundness of policies than personal glory, and less dogmatic. More charismatic leaders driven by a sense of mission may all too easily turn into demagogues. At worst, they may prove distractions who satisfy a celebrity-loving people’s need for drama without tackling the more important underlying issues of development. The Philippines has been down this road before with the calamitous, short-lived presidency of Joseph Estrada, a former tough-guy movie actor popular with the underprivileged who was later ousted and convicted of corruption.

Pacquiao isn’t among the frontrunners in opinion polls, but it would be dangerous to discount a candidate with his fame — or the vast wealth that his boxing career has generated. At the same time, he isn’t the only candidate with a rags-to-riches story, as Mark Thompson, a professor of politics and director of the Southeast Asia Research Centre at City University in Hong Kong, noted. Isko Moreno, a former garbage collector and (naturally) movie actor, also has the advantage of a record of accomplishment as mayor of Manila, where he “can point to the competence he demonstrated during the COVID-19 pandemic,” Thompson said.

Having broken with Duterte, the biggest significance of Pacquiao’s candidacy may be to divide the vote of the ruling PDP-Laban party and thereby allow the return to a more progressive political agenda. It’s a split decision that could be the boxer’s greatest service to his country.

BLOOMBERG OPINION

Logistics flaws hurt Indonesia’s vaccine rollout

REUTERS

A SHORTAGE of healthcare workers and logistical flaws are hampering Indonesia’s efforts to inoculate its people against coronavirus disease 2019 (COVID-19), leaving the world’s largest archipelago trailing its neighbors despite being among the first in Southeast Asia to start the program.

Only 17.9% of Indonesia’s 270 million people are fully vaccinated, behind almost every major economy in the region, according to Bloomberg Vaccine Tracker. About 32% have received their first dose, placing the nation among the bottom four on the list.

“Supply at the national level is no longer an issue, getting shots into the arms of the people is,” said Griffith University epidemiologist Dicky Budiman, who is assisting the government in improving vaccination coverage. “Even in East Java, where there are sufficient stocks, there isn’t enough vaccination booths and not enough vaccinators on site to deliver the shots.”

The slow inoculation progress risks Indonesia’s efforts to keep the pandemic under control and sustain the fragile recovery of its $1.1-trillion economy. A new outbreak caused by the more contagious Delta variant forced the government to reimpose its strictest mobility curbs at the start of the third quarter, with the restrictions helping bring down its weekly death count to the lowest since mid-April.

The nation is slowly building up its COVID-19 vaccine stocks after a shaky start earlier this year, and has so far received 273.6 million doses, some in the form of bulks that need further processing, the information ministry said in a statement Friday. The government targets inoculating 208 million people across the country.

The administration is setting up more vaccination centers with help from the police, army, and intelligence personnel, educating those who are still hesitant and improving data tracking via an app, COVID-19 taskforce spokesman Wiku Adisasmito said in an interview on Thursday.

With an aim of administering more than 1 million shots a day, the government expects to reach 70% coverage before the end of the year. — Bloomberg   

A global equity trader’s guide for China Evergrande debt crisis

REUTERS
CHINESE flags are seen near the logo of the China Evergrande Group on the Evergrande Center in Shanghai, China, Sept. 24, 2021. — REUTERS/ALY SONG

CHINA Evergrande Group’s debt crisis might not be China’s “Lehman moment” but it has sent ripples through stocks tied to the developer and the world’s second-biggest economy.

Creditors, investors and suppliers of the embattled firm and its peers are top on traders’ impact list. Next up are companies with sizable revenue from China, also in the spotlight due to the nation’s ongoing regulatory clampdown. Industrial stocks are a key focus for US market watchers while those in Europe are looking at miners.

Fears that an Evergrande collapse might spark financial contagion and curb growth in the Chinese economy roiled global markets on Monday. That anxiety moderated after the developer agreed to settle some local note interest payments but the problem is far from over with dollar bond holders yet to receive a coupon due.

Here are some of the stocks and sectors in traders’ sights:

PROPERTY PEERS
Evergrande’s size coupled with Beijing’s tighter scrutiny of the real-estate sector will continue to have a significant bearing on property developers. The company has about 2 trillion yuan ($310 billion) in assets — equivalent to 2% of China’s gross domestic product, according to Goldman Sachs Group, Inc. calculations, so any disposals could well disrupt the market.

Regardless of what happens to Evergrande, China’s home prices are now at risk of “meaningful downside,” Citigroup, Inc. says.

The Hang Seng Property Index dropped to its lowest in five years earlier this month. The 12-member gauge include Country Garden Holdings Co., which lost 25% since March-end, and China Overseas Land & Investment Ltd., which fell 16%.

LENDERS, INVESTORS
Shares of companies that have lent money to or invested in Chinese real-estate firms will remain volatile as traders mull the potential for a spike in bad loans and asset write-downs.

While policy makers are expected to provide support, some banks may become victims, Citigroup analysts including Judy Zhang wrote in a note on Wednesday.

Citi’s analysis of Chinese banks’ loan exposure to high-risk developers suggests credit risk is highest for China Minsheng Banking Corp., Ping An Bank Co. and China Everbright Bank Co. It sees Bank of Nanjing Co., Chongqing Rural Commercial Bank Co. and Postal Savings Bank of China Co. as less vulnerable.

While Chinese insurers have factored in concerns about potential impairment losses, PICC Group’s enterprise value would be hit most among mainland-listed insurance companies in a worst-case scenario. That’s followed by Ping An Insurance Group Co., according to Citi’s Michelle Ma in a note on Thursday.

ASIAN SUPPLIES
Suppliers of building materials and appliances to Evergrande’s projects will be closely scrutinized to assess how much the indebted property developer owes them and what its rise and fall may mean for recurring earnings. 

Shares of Evergrande units such as Evergrande Property Services Group Ltd. — which have halved this year — and China Evergrande New Energy Vehicle Group Ltd. — which are down over 90% — also remain on watch.

US INDUSTRIALS
Any restructuring that weighs on the world’s second-largest economy will have ripple effects through the most economically-sensitive and globalized stocks in America. Industrial firms, often seen as bellwethers for the US economy’s health, may take the hardest hit.

US industrial manufacturers have an around 10% of sales exposure to China, according to estimates from JPMorgan Chase & Co. analyst Stephen Tusa. Stocks to watch include General Electric Co., Otis Worldwide Corp. and Honeywell International, Inc., as well as heavy construction and equipment maker Caterpillar, Inc.

EUROPEAN MINERS
In Europe, Evergrande’s crisis is reverberating across the basic materials stocks.

China accounts for 62% of revenue at BHP Group Plc., 58% at Rio Tinto Plc, and nearly half at Anglo American Plc and Glencore Plc, according to data compiled by Bloomberg. Cement makers like HeidelbergCement AG, as well as building suppliers including Kone OYJ and Schindler Holding AG, may be directly affected by the Evergrande fallout, according to strategists at Liberum.

Building supplier Kone OYJ’s shares have slumped more than 10% over one month. — Bloomberg

UK gov’t warned temporary visa plan to fix truck driver shortage will not solve crunch

REUTERS
Britain’s Prime Minister Boris Johnson reacts as he visits the headquarters of Octopus Energy, in London, Britain Oct. 5, 2020. — LEON NEAL/POOL VIA REUTERS

LONDON — Britain’s decision to issue temporary visas for 5,000 foreign truck drivers is a short-term fix that will not solve an acute labor shortage that risks major disruption for retailers in the run-up to Christmas, business leaders have warned.

Long lines of vehicles formed at petrol stations for a second day on Saturday as motorists waited in line, some for hours, to fill up with fuel after oil firms reported a lack of drivers was causing transport problems from refineries to forecourts, leading some operators to ration supplies and others to close gas stations.

The fuel supply issues come on the back of warnings from the retail industry that unless the driver shortage was sorted out there would be major problems ahead of the busy festive shopping period.

“After a very difficult 18 months, I know how important this Christmas is for all of us and that’s why we’re taking these steps at the earliest opportunity to ensure preparations remain on track,” transport minister Grant Shapps said in a statement.

The UK’s Road Haulage Association (RHA) says Britain is facing a shortage of some 100,000 drivers, a result of workers leaving the industry, Brexit and the pandemic, which put a stop to driver training and testing for about a year.

Under the government’s plans, 5,000 heavy goods vehicle (HGV) drivers would be able to come to Britain under temporary visas, while another 5,500 visas would be issued to poultry workers “to avoid any potential further pressures on the food industry.”

These short-term visas, which the government had previously rejected introducing despite calls from retail and logistics companies, will expire on Dec. 24.

Additionally, up to 4,000 people will be trained as new truck drivers, letters will be sent out to nearly a million drivers with HGV licenses to entice them back to the industry, and ministry of defense examiners will be drafted in to speed up the testing process.

The government said the visas were not a long-term solution and the long-term solution was to hire more British drivers with better pay and conditions.

“We are acting now but the industries must also play their part with working conditions continuing to improve and the deserved salary increases continuing to be maintained in order for companies to retain new drivers,” Mr. Shapps said.

Andrew Opie, director of food and sustainability at the British Retail Consortium, who warned on Friday the government had just 10 days to solve the driver shortage issue, said the plans were insufficient.

“The limit of 5,000 visas will do little to alleviate the current shortfall,” he said. “Supermarkets alone have estimated they need at least 15,000 HGV drivers for their businesses to be able to operate at full capacity ahead of Christmas and avoid disruption or availability issues.”

Others have cautioned European drivers may not want to work in Britain again anyway.

“I expect many drivers will not return to the UK even if the UK government allows them to,” said Marco Digioia, general secretary of the European Road Haulers Association. — Reuters

Australia’s Victoria state records second-highest daily rise in virus cases

REUTERS

MELBOURNE — Australia’s Victoria state reported 779 new COVID-19 infections and two deaths on Sunday, off the previous day’s record high as the country’s prime minister presses state leaders to be ready to reopen once they meet vaccination targets.

The daily increase was still the state’s second-highest, after the 847 cases logged on Saturday, as officials battle to contain a Delta variant outbreak that has taken root since mid-year.

Australia’s two most populous states, Victoria and New South Wales, have been struggling to contain the highly infectious variant while they ramp up vaccinations to 80% of the population, a threshold that will allow officials to ease strict lockdown measures.

Three-quarters of Australians have had a first dose of vaccine, while just half have had both doses.

Prime Minister Scott Morrison said in an interview aired on Sunday that he expects states to open up borders and ease restrictions once the 80% vaccination threshold has been met.

“We each have a personal responsibility for looking after our own health. And so it’s important that we do move forward,” he told Channel 7’s Sunrise program.

“There comes a time when you just got to move on and get on with it,” he said from Washington, where he held a summit with his counterparts from the United States, Japan and India.

Mr. Morrison said his message to Australians was “that what I’d like them to have for Christmas is their lives back. And that’s within the gift of governments. And that’s a gift I’d like to see us give them.”

New South Wales recorded nine deaths, according to government data on Sunday, while new locally acquired infections fell for a third day to 961, the lowest daily number in nearly a week, raising hopes that cases may have peaked, originally expected in mid-September, as vaccination rates climb.

“Whilst we are extremely encouraged by the downwards trend that we have seen, with Delta you cannot be complacent,” said state Premier Gladys Berejiklian.

The state’s first dose rate has risen to 85.2% of people over 16 years of age, while 59.1% of the population has had their second dose.New South Wales has recorded 288 deaths in the Delta outbreak, accounting for nearly a quarter of the country’s approximately 1,230 deaths.

State government officials are to finalize a roadmap this week for what to do when the 80% target is met, as focus shifts to when to reopen community activities to the unvaccinated.

Sporting events, regional travel, pubs, restaurants and other functions may remain off limits to unvaccinated people until as many as 90% of the state’s adults have had two doses. — Reuters

Crypto exchange giants stop taking China users as ban widens

PIXABAY

TWO of the world’s largest Bitcoin exchanges have halted new registrations for Chinese users, taking one of the first actions to comply with Beijing’s latest crypto ban.

Exchange operators Huobi and Binance have stopped letting traders use mainland China mobile numbers to register new accounts, after the People’s Bank of China said Friday all crypto-related transactions will be considered illicit financial activity. New sign-ups are still available for Hong Kong users on both platforms, but mainland China is no longer an option for new-account creation.

A Huobi spokesperson declined to comment. A Binance spokesperson said the company doesn’t have exchange operations in China and blocks Chinese IPs, without commenting on the mobile registration move.

“Binance takes its compliance obligations very seriously and is committed to following local regulator requirements wherever we operate,” the spokesperson said in an email.

China’s latest pronouncement — issued by the central bank along with nine other government agencies including the public security ministry — is the culmination of years of attempted crackdowns on the rise of Bitcoin and its peers. Friday’s notice specifically called out offshore exchanges targeting Chinese users, banning them from hiring locally for roles from marketing to payment settlement and tech.

In 2017, China told local exchanges to stop hosting trades between fiat money and crypto tokens, forcing Huobi and Binance to set up shops in friendlier jurisdictions such as Singapore and Malta for their main trading platforms. Still, Chinese users have been able to access their services including over-the-counter trading and crypto-to-crypto transactions.

In June, Huobi banned existing Chinese users from trading riskier products such as derivatives, after China’s cabinet called for a renewed clampdown on crypto trading and mining. There is no indication that Chinese users are barred from Huobi and Binance altogether, which are widely regarded as two of the big three crypto exchanges that originated in China, along with OKEx.

Users can still use mainland China numbers to register on OKEx as of Sunday morning in Hong Kong. — Bloomberg

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