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Climate change set to worsen resource degradation

PHILIPPINE STAR/ MICHAEL VARCAS

MADRID — A vicious cycle linking the depletion of natural resources with violent conflict may have gone past the point of no return in parts of the world and is likely to be exacerbated by climate change, a report said on Thursday.

Food insecurity, lack of water and the impact of natural disasters, combined with high population growth, are stoking conflict and displacing people in vulnerable areas, the Institute for Economics and Peace (IEP) think-tank said.

IEP uses data from the United Nations and other sources to predict the countries and regions most at risk in its “Ecological Threat Register.”

Serge Stroobants, IEP director for Europe, the Middle East and North Africa said the report identified 30 “hotspot” countries — home to 1.26 billion people — as facing most risks.

This is based on three criteria relating to scarcity of resources, and five focusing on disasters including floods, droughts and rising temperatures.

“We don’t even need climate change to see potential system collapse, just the impact of those eight ecological threats can lead to this — of course climate change is reinforcing it,” Mr. Stroobants said.

Afghanistan gets the worst score on the report, which says its ongoing conflict has damaged its ability to cope with risks to water and food supplies, climate change, and alternating floods and droughts.

Conflict in turn leads to further resource degradation, according to the findings.

Six seminars including governments, military institutions and development groups last year returned the message that “it is unlikely that the international community will reverse the vicious cycles in some parts of the world,” IEP said.

This is particularly the case in the Sahel and the Horn of Africa, which has seen more and worsening conflicts over the last decade, it said.

“With tensions already escalating, it can only be expected that climate change will have an amplifying effect on many of these issues,” the report said. — Reuters

Medilines IPO: Get to know Chairman Virgilio Villar

Medilines Chairman Virgilio Villar

When news broke about the planned first pure-play healthcare IPO in the Philippines, the investing public wanted to learn more about Medilines Distributors Incorporated and its builder, Virgilio Villar.

Although commonly referred to as the younger brother of real estate tycoon Manny Villar, Virgilio is a successful businessman in his own right who began his career in the medical devices industry more than 30 years ago. While his kuya ventured in entrepreneurship from the get-go, Virgilio is a corporate-bred executive who rose from the ranks and built his own business after an early retirement, based on the skills and network he formed through years of experience.

Career Beginnings

Villar recalls how he started his career in various multinational companies as sales and marketing executive after he graduated from the University of the Philippines with a degree in Bachelor of Science in Industrial Engineering and a degree in Master of Business Administration. He also took Advanced Management Studies in Cologne, Germany.

His introduction to the field of medical devices began when he was hired as the general manager of B. Braun, a German multinational medical device company, in the Philippines in 1987. It was during this time when Villar started to deal with the top management of hospitals and doctors, where he has earned a good reputation through the years. Villar narrates how he would personally talk to clients and explain the functions of medical devices, their impact on the healthcare system and so on; something he continues to do today.

“I am very hands-on. I go out my way to meet my clients because it is important that we establish trust and confidence with them,” Villar says.

Because of his local and international training, Villar’s exposure to the best practices abroad, particularly in Germany, also helped mold him into a more astute businessman. He imbibed the German’s work culture on punctuality, organization, planning, and right execution, which became Villar’s own recipe for success in the corporate world and now, in business.

When he was general manager of B. Braun, Villar recalls how the infant company’s business rose from a million-peso in sales to about a billion before he left in 2008—a testament to his reputation as builder.

Building Medilines

Villar’s exposure through B. Braun prepared him for his eventual take-over of Medilines, which he has steered to greater heights through the years. Once again, he turned a six-year-old company with around P70 million in sales in 2008 to an enterprise with P1.5 billion in revenues as of end 2020. As of June 30, 2021, Medilines recorded sales of P815 million and net income of P102 million.

“I am still very hands on,” Villar says. In business dealings, Villar narrates how he personally talks to most clients, starting with the product and then about the principals he represents.

In fact, he has earned such good reputation and relations with medical professionals, institution heads, and owners, both in the private and public healthcare system, that he knows many of those whom they term as “opinion leaders” in the medical field and in hospital administration.

“Since the medical equipment are expensive, and their technical specifications are mostly complicated, it is important that I am able to meet their demands. We need to establish trust with each other, they need to have trust (with me) because these involve big investments,” he adds.

Villar says he finds a sense of fulfillment in this business because it involves providing quality equipment to the country’s medical facilities. “This involves the health of our countrymen, it’s not just all about the products,” says Villar.

Villar lamented that the Philippine healthcare system remains far behind compared to first world countries, but he notes we are slowly getting there. Hospitals are being modernized and staffed with highly professional medical experts. “Our doctors are among the best in the world; and we are in the right direction in terms of modernization,” says Villar. He adds that our hospitals have improved tremendously in the recent years, with our government facilities being equipped to handle terminal illnesses.

“Medilines with its broad portfolio and quality medical equipment from top global suppliers namely, B. Braun (Germany), Siemens Healthineers (Germany) and Varian (USA), can certainly contribute greatly to our country’s health facility modernization initiatives,” he adds.

Through Villar’s leadership, Medilines is now a leading distributor of medical equipment in the country, focused on three healthcare categories: dialysis, diagnostic imaging, and cancer therapy.

When the COVID-19 pandemic struck, Villar says Medilines’ strengths were fortified because their product specializations involve early diagnosis of critical illnesses from COVID-19, as well as treatment of complications from the virus such as kidney damage. Medilines has been delivering its equipment since the pandemic started in 2020, which has allowed many hospitals in the country to improve their response in terms of urgent services to patients.

“When pandemic struck, we just happened to be in the middle of it. We were able to help respond to the challenges of the pandemic and provide some of the equipment they urgently need,” narrates Villar.

Vision for the Future

“We want to continue providing quality equipment from top brands to ensure that the best healthcare can be accessible to as many Filipinos,” says Villar.

According to a study by Ken Research, the total healthcare market in the Philippines will grow at an accelerated rate of 11.2% in the next five years, despite the pandemic, reaching a forecast of P1.5 trillion by 2025. This is driven by sustained investments in the industry by both public and private medical institutions.

Villar wishes Medilines to make an impact in this growing and priority industry as the company is seeking approval for a maiden initial offering of up to 825-million common shares at P2.45 per share. PSE Listing is expected before the end of the year, subject to regulatory approvals.

Medilines Distributors Incorporated (MD), a leading distributor of medical equipment in the Philippines, has filed application for an initial public offering with the Securities and Exchange Commission (SEC) and The Philippine Stock Exchange, Inc. (PSE) on August 23 2021. A preliminary prospectus for the initial public offering of MD may be obtained from https://www.medilines.com.ph/company-disclosure/sec-filings, which is subject to completion or amendment without notice. Based on said prospectus, MD plans to offer up to 825,000,000 common shares at an offer price of up to ₱2.45 per share. The Company has engaged PNB Capital and Investment Corp. as the sole issue manager, lead underwriter and sole bookrunner. The preliminary prospectus also contains the information required to be stated in any notice, circular, advertisement, letter or other forms of communication that will be published or transmitted to any person after a registration statement has been filed under Rule 8.3.1 of the 2015 Implementing Rules and Regulations of the Securities Regulation Code of the Philippines and which information is incorporated by reference in this communication.

A REGISTRATION STATEMENT RELATING TO THESE SECURITIES HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION, BUT HAS NOT YET BECOME EFFECTIVE. THESE SECURITIES MAY NOT BE SOLD NOR OFFERS TO BUY THEM BE ACCEPTED PRIOR TO THE TIME THE REGISTRATION STATEMENT IS RENDERED EFFECTIVE. THIS COMMUNICATION SHALL NOT CONSTITUTE AN OFFER TO SELL OR BE CONSIDERED A SOLICITATION TO BUY.

 

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AI-enabled building inspections improve infrastructure resilience

WaveScan’s scanner integrated on a robotic arm inspects a spherical tank leg. -- Image courtesy of WaveScan.

AIBy Patricia B. Mirasol 

WaveScan Technologies, a Singapore-based deep-tech startup, is pitching timely maintenance inspections that are data-driven and artificial intelligence (AI)-enabled.  

This kind of maintenance prolongs a building’s life and reduces the need for demolition and reconstruction — the biggest culprits of the construction industry’s carbon emissions.  

“When infrastructure stakeholders have complete information on the condition of a building and its aging process, they can make timely decisions and subsequently prolong the lifetime of that asset,” said WaveScan founder and Chief Executive Officer Kush Agarwal. 

AI-enabled inspection, which uses smart sensor systems and drones, is like an MRI (magnetic resonance imaging) for infrastructure.  

Since its inception in 2018, WaveScan has been developing proprietary technology that it hopes will standardize the AI-enabled inspection of assets such as buildings, aircrafts, and bridges.  

Its non-contact technology uses electromagnetic scanner technology that sees through structures.  

The fact that the sensor doesn’t have to be in physical contact with walls makes it ideal for a pandemic world that often requires a reduced onsite workforce, said Mr. Agarwal. The applications of its see-through feature, meanwhile, is not limited to buildings.   

“The technology is agnostic,” Mr. Agarwal said. “It can also be used for medical or surveillance applications.”  

The startup developed a scanner system that employs millimeter wave imaging that operates in 5G frequencies, and can be used for the contactless detection of parameters such as perspiration and heart rate.  

Mr. Agarwal told BusinessWorld that inspection practices as they currently stand are manual and surface-level, which make it a challenge to nip structural defects such as cracks and voids in the bud.  

Current inspection practices also employ a fix-when-broken mentality, which translates to financial losses as well as an inevitable loss of lives.  

Apart from its advanced sensor systems, WaveScan also taps complementary technologies such as drones and AI to generate data in a fast, economical, and accurate manner. When there is less wear and tear, less repair work is needed.   

The 2017 Global Status Report by the International Energy Agency noted that the building and construction industry contributes 39% of the world’s carbon emissions.  

In his winning pitch at the Asian Development Bank Ventures’ series Climatic, Mr. Agarwal pointed out that the biggest culprit for these emissions are demolition and reconstruction costs.  

Climatic is described as “a series about innovators decarbonizing Asia and the Pacific, entrepreneurs making the region more resilient to climate change, and the corporate leaders partnering with them to scale.”  

In the Philippine context, building a database of relevant information enables local cities to make proactive and timely decisions especially during natural disasters.   

“This also minimizes the downtime of assets,” said Mr. Agarwal.  

A change is mindset is the most important part in the adoption of digital solutions such as non-destructive testing for industrial applications. Spending on this department will have to be spearheaded by industries and governments, as individuals may be initially resistant to change, Mr. Agarwal said.  

“The ecosystem is already building up,” he told BusinessWorld. “We have limited natural resources in the world, and it’s our collective responsibility to minimize our carbon footprint.”  

Wider opportunities beginning July 2022

There is very little doubt that the latest Pulse Asia survey results speak as many volumes about the Duterte administration’s kind of political and economic governance as the opportunities for the incoming administration beginning July 2022.

The space for rectifying the serious slippages in handling the health pandemic and managing the efforts for economic recovery has been reduced to an iota, less than eight months before the May 2022 election and barely nine months before the turnover in June 2022. The Administration picked many battles on so many fronts that it lost the focus required of competent and compassionate leadership. We thought the President burned the ships so that there would be no turning back when he ordered our health authorities to keep the lockdowns unless we contain the pandemic spread to allow business activities to resume. We thought our handling of the health crisis would be strengthened. More vaccine rollout would just be like the icing on the cake. We were wrong.

Some quarters might question our assessment of how the pandemic was managed by our authorities. They wonder how the gorilla in the room could be ignored when the health protocols are constantly sharpened; our testing, tracing and isolating facilities strengthened; more vaccines are being administered; and funding for our pandemic response continues to be secured both by our finance and treasury officials.

Putting it as “ignoring the gorilla in the room” was actually being charitable.

Awarding contracts worth billions of pesos to favored, undercapitalized companies with no track record with the government which delivered overpriced, damaged, and expired health protective gears was not exactly ignoring the gorilla. It is burying the gorilla. Earlier, before the pandemic surged in the Philippines, we needed to restrict international travel in February 2020, but we wavered because that could alienate our foreign visitors. We negotiated early for the supply of US-made vaccines, but we dropped the ball for it took us ages to prepare the documents for reasons only our health authorities knew. We adopted alphabet type of community quarantines with no predictable basis for migrating from one alphabet to another alphabet of a lockdown.

As a result, in the last one year and a half, we had to face the twin crises of health pandemic and economic recession, made worse by bad governance and dissipated energy fighting many other battles. The President also decided to disallow his cabinet from attending the Senate probe on Pharmally. He owes it to the Filipino people to get to the bottom of this anomaly so he should be the first one to show the way to greater transparency and accountability. There is room for encouraging his appointees to cooperate with the Upper House, rather than emboldening them with his protection against any possible Senate contempt and arrest. A constitutional crisis might be triggered in defense of a small private company.

It would be worthwhile for the President to devote his limited time to the big picture of state craft. He can also tweak the composition of the IATF (Inter-Agency Task Force for the Management of Emerging Infectious Diseases) in favor of more medical practitioners, virologists, epidemiologists, and other competent and experienced professionals. If we should co-exist with the virus, having solid database of information about the dynamics of the pandemic to guide both health and economic policies is fundamental.

We are seeing the consequences of a defocused leadership.

The Duterte Administration’s five strongest areas way back in September 2020 were fighting criminality with an approval of 88% of the respondents, followed by both the grant of assistance to those affected by the pandemic and controlling the spread of the virus, 84%; responding to the needs of areas affected by calamities, 82%; and promoting peace, 81%.

What is revealing is that through the next 12 months, with reckoning in November 2020, February 2021, June 2021, and lately, September 2021, the performance of the Administration has consistently dropped in all the 14 areas of governance. Between June 2021 and September 2021, a short three-month period, the decline was a multiple of what we could see between September 2020 and June 2021, a longer nine-month period.

After a year, the ranking of the Administration’s approval rating changed. Still on top was fighting criminality, down from 88% to 74%; responsiveness to calamities, down from 82% to 71%; welfare protection of overseas workers, down from 79% to 66%; and both in fourth, keeping peace and extending assistance to those affected by the pandemic from 81% and 84% to 64%, respectively.

In which areas did the Administration score the lowest approval rating?

The lowest scores were seen in eight areas but we could group them into governance of the economy, territoriality, graft and corruption, environment and health.

With the lowest approval, economic governance includes inflation control, poverty reduction, workers’ pay adjustments and job creation. Within this group, inflation control was lowest, dropping from 63% to only 37%, or the biggest decline of 26 percentage points (ppts). The other areas declined by a high of 25 ppts for workers’ pay adjustments and a low of 23 ppts for job creation.

For the rest, the Administration’s handling of territorial disputes was considered second lowest, with a setback from 65% to only 49% or 16 ppts reduction. Third lowest was fighting graft and corruption with a lower approval rating by 25 ppts, or from 77% to 52%. The environment was next, down from 75% to 56% or 19 ppts. Pandemic management, at first rather reasonably high with a score of 84% a year ago, suffered a big decline of 25 ppts to only 59%.

These areas of governance could easily populate the agenda of the next Administration because based on the experts’ assessment and those of the international financial institutions, we are bound to continue struggling against the pandemic and its economic consequences for at least a couple of years. In the estimate of National Economic and Development Authority (NEDA), “it may take 10 years to catch up to pre-COVID-19 trajectory” in terms of financial investments.

This Administration’s major weaknesses could very well be the next Administration’s operations manual on how not to govern. The reciprocal of lower approval is higher disapproval.

For instance, we see that the declining approval rating of the Government is very much reflected in the latest Nikkei COVID-19 Recovery Index which ranks 121 countries and regions on pandemic management, vaccines rollout, and social mobility at the end of each month. The higher the score and ranking, the closer is each country to recovery. This indicates low confirmed cases, better vaccine administration, and easier social distancing metrics.

For September 2021, the Philippines ranked the lowest at 121st, with a score of 30.5%, topped by higher ranking Laos, Gabon, Vietnam, and Barbados. Best recovering states are first, Malta with a score of 73%; second, Chile and Bahrain with identical score of 72%; and third, the UAE, 71%.

What is appalling is that the ranking of the Philippines actually deteriorated from its August 120th rank, topping only Vietnam’s 121st. Even if the country’s score of 26% in August improved to 30.5%, low-scoring Vietnam, Myanmar, Thailand, and Sri Lanka managed to upgrade their performance by more significant margins.

While the next Administration should build on the exemplary showing of our athletes in the 2021 Tokyo Olympics, it is more important to improve on our performance in health, political and economic governance in this nation of 110 million Filipinos.

There is no need to build more doors of opportunities. We only have to open them wider for our country and our people.

 

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

An epidemic of candidates

PHILSTAR FILE PHOTO

Much of the media reported the low turn-out when it officially began, but that soon changed as the week progressed. The Commission on Elections (Comelec) had received hundreds of filings as the week was ending.

It isn’t for the registration of new voters — the turn-out there has been exceptionally high; despite pandemic fears thousands are in endless queues and even spending the night outside Comelec centers just to get their names in the rolls — but for the filing of Certificates of Candidacy (COC) that began Oct. 1 and ends today, Oct. 8.

At stake in the May 2022 elections are the Presidency and the Vice-Presidency; seats in the House of Representatives and the Senate; governorships; and mayoralty posts, among others.

For the privilege of running for public office, there has never been a shortage of aspirants in this country. Every three years or six, dozens of people file COCs for this or that elective office, including the presidency. Eventually, however, the Comelec disqualifies quite a number for supposedly being “nuisance candidates.”

To be so described, the Omnibus Election Code declares that one has to 1.) put the electoral process “in mockery or disrepute”; 2.) confuse the electorate because he or she has the same name as another candidate; and, 3.) have no real intention of running for public office, and is thus preventing the “faithful determination of the true will of the electorate.”

Some would-be candidates do qualify as nuisances under those three categories. They include those who claim to be in communion with aliens from other planets, who promise to pay off the national debt out of their own pockets, or who’re thinking of air-conditioning the National Capital Region to shield residents from the summer heat.

In addition, however, the Comelec can also disqualify a would-be candidate for not having the means to run a “credible” campaign, which translated simply means he or she doesn’t have the millions or billions needed — the amount depends on what post one is running for — to pay for political advertising and to finance an organized effort to win one’s coveted post. There is as well the unspoken measure of one’s fitness for running for office that consists of whether one has a name that millions recognize and are familiar with.

As a result, although one can argue that at least some of the Comelec-approved candidates could also be accused of mocking the electoral system and putting it in disrepute by cheating and/or bribing voters and intimidating them, the people whose COCs end up being accepted are the very same ones — or their wives, sons and daughters — from among whom every three years the voters have to choose who would govern them.

It isn’t exactly the same as the Nazi occupation of Europe that the Nobel Prize Laureate Albert Camus likened to a deadly pestilence. But the consequences to this country of the plague of already powerful, well-connected, and prominent or notorious dynastic candidates that every three years bedevil it are nevertheless close to those of the Nazi pandemic.

From that motley crew, the uninformed choose — if that is indeed the word — whom to vote for on the basis of name recall or on the say-so of those who’ve either bribed or intimidated them. The more knowledgeable end up choosing the “lesser evil,” meaning those whom they think are likely to do the country the least harm.

From the welter of aspirants for public office, the usual crooks, incompetents, clowns, and assorted ne’er-do-wells are therefore elected to this or that post from which they perpetuate the poverty, injustice, hopelessness, and mass misery that eventually kill millions while they line their pockets with the billions in public funds to which they have gained access. There are of course exceptions, but those are so out of the ordinary as to bewilder the public into condemning rather than celebrating them.

But the built-in advantages of the dynasts don’t start only with the filing of COCs. Even before that undertaking, the moneyed and well-connected are already in the public mind, and way ahead of their less well-endowed rivals. They flood almost every available space with streamers and billboards with their names and faces plastered on them. They take advantage of every flood, earthquake, or volcanic eruption aftermath to distribute relief goods. They arrange through their PR handlers interviews in this or that broadcast network. They record their every act and statement on a public issue in a range of accounts in social media. In addition, in uncritical observance of the news value of prominence/notoriety, the media faithfully report what they say and do. All this occurs even prior to the 90 days before elections that constitute the official campaign period.

The Omnibus Election Code describes campaigning prior to the official campaign period as “unlawful” — which all the above undoubtedly are — and punishable by disqualification from the office one is running for. But the election-relevant laws mandate that no one who has not yet filed a COC can be held liable for such acts, and can be so charged only once the official campaign period has begun. In addition, the Comelec has also ruled that unless one explicitly urges voters to vote for him or her, no one can be held liable for campaigning before the official campaign period.

Again, the result is to give those with huge campaign war chests as well as incumbent officials the edge over those who may not be as blessed but who are nevertheless competent — and, what is even more important, honest.

Leveling the playing field should start with plugging legal loopholes. But the Comelec also has to modify its definition of one’s capacity to run a credible campaign by making it less dependent on one’s possession of huge amounts of campaign funds.

Previous attempts to do the first have failed. A bill by the late Senator Miriam Defensor Santiago would have required those aspiring for public office to file Certificates of Intention to Run for Public Office (CIRPO) before the deadline for the filing of COCs. It would have barred anyone who has filed a CIRPO from endorsing a product, being hired by any media organization, and buying advertising space or time prior to the official campaign period. It was meant to limit the media exposure of the more moneyed candidates, but the bill died at the committee level. The same fate met other bills with a similar intent.

As for the second, that seems hardly likely. The entire electoral process is so completely driven by money that hoping for the opposite is almost like asking for the moon in a political context in which not even civil discourse has become possible.

But something can still be done about this distressing state of affairs. The news media can help the electorate look beyond the money, the power, the connections, and the notoriety/prominence of the dynasts and incumbents by reviewing their track records in government and their competence, honesty, and commitment to this country and its people’s well-being.

What the media need to do as well is to direct their attention to the less moneyed and less well-known, and to look into their backgrounds, their qualifications, and their programs of government.

They may yet be surprised by their findings. Many of the latter do have such programs, are eminently qualified, and have much more to offer than the usual breed of mindless scoundrels this country has been plagued with.

 

Luis V. Teodoro is on Facebook and Twitter (@luisteodoro).

www.luisteodoro.com

Local governments cannot impose mandatory vaccination

PHILIPPINE STAR/ MICHAEL VARCAS

Because if the president can’t force citizens to be vaccinated, then all the more so local government executives.

The foregoing is in response to a recent statement by a top government official that local government units (LGUs) can impose mandatory vaccination “through their legislative organs” via the exercise of “police power.” In fairness, such statement was qualified as something “theoretical.”

LGUs cannot force vaccination because of subsidiarity.

Indeed, local government units act under the constitutional pillar that is subsidiarity, which encourages smaller political units and civil society (LGUs, churches, the family) to take greater responsibility in governance matters. Subsidiarity is reflected greatly in the Constitution’s Article X, declaring that local governments enjoy local autonomy and each LGU is allowed to raise its own revenue.

Nevertheless, like any part of government, local government units can only act within the limits of the Constitution and existing laws, and for the purpose of furthering the general welfare clause, of which a variation is found in the Local Government Code (Section 16): “Every local government unit shall exercise the powers expressly granted, those necessarily implied therefrom, as well as powers necessary, appropriate, or incidental for its efficient and effective governance, and those which are essential to the promotion of the general welfare.”

LGUs cannot force vaccination because of police power.

Mention was made of the local government unit’s ability to act through the police powers of the State. But this comes with severe limitations. One is that under our system of government, the police powers are reserved to the National Government, particularly to the legislative branch (i.e., Congress), the enactments of which are left for the Executive Branch to implement. Local government units can so exercise police powers but only as delegated to it by the Constitution and by Congress. Many of such delegations are found in the Local Government Code.

This is different from a federal form of government, particularly as found in the United States. There’s this persistent misconception about federalism being merely a division of governmental functions: essentially one layer but of two levels. This is not true. That’s what we have right now with the present Constitution and the Local Government Code. It can be mostly top-down or bottom-up depending on how Congress formulates implementing legislation.

Federalism actually creates two competing layers of government. Or to be precise: two parallel authorities each equally exercising sovereign power over the citizenry.

Each “State” or LGU (i.e., province or region) is left to its own devices to generate domestic revenue and develop export markets, and is responsible for providing basic governmental services. It has the capacity to make its own laws, as well as judicial and law enforcement. In the case of the United States, police powers are left primarily to the individual State. The powers of the National (or federal) Government, for example, in dealing with the pandemic is limited. The one with true, sweeping powers to limit citizen’s rights by way of police powers (properly employed) is the individual State. The reverse is true in the Philippines.

Yes, to a certain limited extent, as may be allowed by Constitutional provision and legislative delegation, LGUs may exercise police powers. But even that mitigated ability comes with the condition that the exercise thereof is accompanied by a lawful subject and lawful means.

As for the latter, the Supreme Court described such as “means employed [that] are reasonably necessary for the accomplishment of the purpose and not unduly oppressive on individuals.” Such must also not violate the Constitution, i.e., must not violate due process and equal protection, as well as constitutionally provided rights.

These (Article III) rights include the protection that no law abridging the freedom of speech, of expression, or of the press, or the right of the people peaceably to assemble and petition the government for redress of grievances shall be made; that the free exercise and enjoyment of religious profession and worship, without discrimination or preference, shall forever be allowed; that the liberty of abode and of changing the same within the limits prescribed by law shall not be impaired except upon lawful order of the court; that the right to travel can be impaired only in the interest of national security, public safety, or public health, as may be provided by law; that the right of the people to information on matters of public concern shall be recognized; that the right of the people, including those employed in the public and private sectors, to form unions, associations, or societies for purposes not contrary to law shall not be abridged; that private property shall not be taken for public use without just compensation; and that no law impairing the obligation of contracts shall be passed.

If an LGU or any official thereof violates a citizen’s constitutional right, such citizen can sue such LGU or official, including with a claim for damages, particularly under the provisions of the Civil Code and other related laws.

LGUs cannot force vaccination because of eminent domain.

Incidentally, to compel vaccination or discriminate against the unvaccinated, particularly if it prevents access to business, employment, or property, can be considered a form of “taking” and thus constitutes an unlawful exercise of the power of eminent domain.

In the case of LGUs, eminent domain can only be exercised under limited conditions, as follows: “A local government unit may, through its chief executive and acting pursuant to an ordinance, exercise the power of eminent domain for public use, or purpose or welfare for the benefit of the poor and the landless, upon payment of just compensation, pursuant to the provisions of the Constitution and pertinent laws.” Consequently therefore, any official violating the foregoing provision of the Local Government Code could entail criminal, civil, and administrative liability on his/her part.

LGUs cannot force vaccination because of Executive Branch authority.

LGUs cannot be authorized by the president to implement mandatory vaccination, as the president merely has supervisory (not control) powers over them.

LGUs cannot force vaccination because of absence of Congressional delegation.

No law authorizes LGUs to impose mandatory vaccination. At present, in relation to the pandemic, governors and mayors merely have the power to procure without public bidding (Secs. 366 and 368, Local Government Code), to carry out emergency measures (Secs. 444 and 465), and promote general welfare and health (Sec. 16).

Local legislative bodies (i.e., the various Sanggunian) can only legislate in relation to health matters if such deal with the implementation of primary healthcare, maternal and child care, and disease control services, access to secondary and tertiary health services; purchase of medicines, medical supplies, and equipment needed to carry out the services herein enumerated.

“Emergency measures” and “disease control services” cannot include mandatory vaccination as LGU measures that entail restricting constitutional rights need express (not implied) congressional authorization.

And we know that LGU pandemic powers and responsibilities are envisioned to be limited because the Local Government Code itself points out that “in cases of epidemics, pestilence, and other widespread public health dangers, the Secretary of Health may, upon the direction of the President and in consultation with the local government unit concerned, temporarily assume direct supervision and control over health operations in any local government unit for the duration of the emergency, but in no case exceeding a cumulative period of six months. With the concurrence of the government unit concerned, the period for such direct national control and supervision may be further extended.”

So bottom line…

The LGU clearly therefore just can’t, on its own, compel citizens to be vaccinated. For it to do so would require a law by Congress. And Congress has not made a law expressly authorizing mandatory vaccination.

But even if the latter were to do so, the burden of proving that a mandatory vaccination law is constitutional falls on those proposing the measure (see “Forcing people to be vaccinated is illegal and wrong,” Aug. 5). Thus, they must prove that such is “reasonably necessary” and “not unduly oppressive on individuals.” The scientific facts presently available to us now however indicate that contemplated mandatory vaccination measures categorically fail on both counts.

 

 Jemy Gatdula is a senior fellow of the Philippine Council for Foreign Relations and a Philippine Judicial Academy law lecturer for constitutional philosophy and jurisprudence

https://www.facebook.com/jigatdula/

Twitter @jemygatdula

Posthumous victory for S.Korean transgender soldier as court tells army to annul dismissal

By Sangmi Cha

SEOUL, Oct 7 (Reuters) – A South Korean soldier who committed suicide earlier this year after being dismissed by the army following gender reassignment surgery won a posthumous victory on Thursday, as a court told the army to recognise her as a woman and annul her dismissal.

Staff Sergeant Byun Hui-su had wanted a transfer to the military’s female corps after undergoing the surgery, but was dismissed in January 2020 on grounds that gender reassignment rendered her “disabled” and unfit for service.

Byun went to court seeking reinstatement, but she took her own life in March before the case was resolved. Regardless of her death, the outcome of the case is expected to hold implications for the military’s policy on sexual minorities.

The Daejeon District Court said that as Byun’s changed gender was already legally recognised, the army should have used standards applied to women to determine her fitness to serve.

“When based on standards of women, there are no mental or physical disability grounds for dismissal,” the court said, ruling in Byun’s favour.

The army said in a statement that it respected the court’s decision, but has yet to decide whether to appeal, and it would conduct a comprehensive review before deciding a course of action.

The Center for Military Human Rights Korea advocacy group, which had supported Byun, welcomed the ruling, but said it took far too long to reach such a “natural and common-sense result”.

“I believe this ruling is meaningful as it is the start of the discussion that could pave the way for all transgenders and sexual minorities in South Korea to serve in the military like other citizens,” an activist with Solidarity for LGBT Human Rights of Korea, who uses the name Osori to campaign, told Reuters.

The military has been rocked by multiple sexual abuse scandals this year, prompting lawmakers to pass a law that such cases should be handled by civilian courts.

South Korea requires all able-bodied men undergo at least 21 months of military service, and it has 550,000 troops on active duty and 2.7 million troops in reserve. – Reuters

Tesla’s gigafactory electrifies California-Germany culture clash

By Victoria Waldersee

BERLIN, Oct 7 (Reuters) – With final approval for its German factory potentially just weeks away, Tesla’s Elon Musk will make an appearance in the tiny town of Gruenheide this Saturday to host a county fair.

Despite pandemic-related curbs limiting gatherings in Germany to under 5,000 people, Tesla applied for – and got – a permit to have 9,000 at the Oct. 9 ‘Giga-Fest’, after local authorities agreed the event would be COVID safe.

Coming on the heels of officials allowing the company to break ground on its new site before final approval had even been granted, environmental groups say this is just the latest example of Tesla being given too much leeway to act disruptively in Germany – a pattern they worry will continue.

Tesla did not respond to a request for comment.

The pre-approvals Musk has received from local authorities to build without final permission are legal, but rarely used by German firms because of the associated risk: if final approval is not granted, Tesla must pay to tear everything down.

While some bemoan Musk’s approach as throwing German caution to the wind, others – who say German regulations governing planning, jobs and environmental concerns are unnecessarily restrictive – welcome the influence he could have on the country’s business culture.

“I am fully convinced Tesla can have a positive effect on Germany,” Brandenburg’s economy minister Joerg Steinbach, a prominent advocate of the factory, told Reuters.

“The fundamental idea of taking a close look at current legislation and checking whether it could perhaps be modernised – without risking a loss to legal clout – is in my opinion absolutely worth considering.”

The country’s powerful unions are already gearing up to fight for German-style contracts for Tesla workers, environmental groups are poised to oppose any further expansion plans, and locals wary of Musk’s ‘American’ ways are watching the firm’s every move.

“Tesla has to stick to environmental protection laws, building laws, and of course labour and unionisation laws,” Birgit Dietze, head of the Brandenburg region for union IG Metall and a former member of Volkswagen’s supervisory board, said.

Musk has made his irritation for German laws and processes known, saying in a letter to authorities in April that the country’s complex planning requirements were at odds with the urgency needed to fight climate change.

Once running, the factory will produce 500,000 electric cars a year and generate 50 gigawatt hours (GWh) of battery capacity – more than any other plant in the country.

Conversations between the union and applicants indicate Tesla, whose CEO is known for his rocky relationship with organised labour, is offering pay 20% below the collectively bargained wages offered at other German automakers, IG Metall said.

It is also shaking up conventional German contracts by offering packages with stock options and bonuses rather than predetermined holiday pay.

Driving a harder bargain with its workforce could create a competitive advantage for Tesla, whose choice to set up its first European gigafactory in the homeland of Volkswagen , Daimler and BMW has raised the stakes in the global battle for EV dominance.

Musk has already experienced German union power. When Tesla bought German car parts supplier Grohmann Automation in 2017, it set wages 30% below average, refusing to match collectively bargained pay.

After the firm offered one-off bonuses and stock options instead, unions dropped a threat to strike. Unions say stock options have also been mooted at the Brandenburg factory.

GERMAN CARMAKERS CAN’T DO IT – BUT TESLA CAN

Of the 12,000 positions to be created at the factory, 800-1,200 have been filled so far, according to IG Metall and Steinbach.

Tesla did not respond to a request for comment or questions on how recruitment was progressing. But data from LinkedIn suggest applications are low, with fewer than 10 applicants for most of the factory positions advertised in the past month.

Gruenheide is a 45-minute drive from the Polish border, and Tesla is widely expected to recruit workers from there.

“20% under German wages is still very good pay for Polish workers,” Ferdinand Dudenhoeffer, an expert on the German auto industry, said.

“German automakers couldn’t do it; they’d get into big trouble with the unions. But Tesla can do it.”

Musk had planned on starting production in July in order to deliver the Model Y car to European customers from Berlin – but local opposition and the late addition of a battery plant requiring blueprints to be resubmitted to authorities held up the process.

The delay forced Tesla to deliver the Model Y from Shanghai, prolonging waiting times and increasing costs.

In a document published online in late September containing all 813 objections to the factory filed with local authorities and Tesla’s responses, the company repeatedly reminded its critics that it was creating jobs and bringing Germany closer to its electric mobility goals.

“I understand the concerns. But some of it is selfish. It’s always the same – people want things like wind farms and electric vehicles… just not in their backyard,” said 60-year-old Grunheide local Ralf-Thomas Petersohn, a member of Germany’s official Tesla fan club.

A public hearing scheduled for Sept. 23 for citizens to discuss objections to the factory was moved online due to concerns that it could become a “super-spreader event”, authorities said, a decision which some viewed as hypocritical considering the likely approval of Tesla’s request for a 9,000-person party.

“This isn’t about Tesla. It’s about whether you take citizen participation seriously,” Michael Ganschow of environmental organisation Gruene Liga said. “We can’t just say, ‘You’re making electric cars, so you can do whatever you want’.” – Reuters

Taiwan seeks international support after Chinese incursions

By Ben Blanchard

TAIPEI – Taiwan will ensure regional peace and stability and seeks to work with other like-minded democracies, President Tsai Ing-wen told senior French and Australian dignitaries on Thursday, days after a dramatic spike in tensions with China.

The trips by four French senators and former Australian prime minister Tony Abbott come after four straight days, beginning last Friday, of massed Chinese air force incursions https://www.reuters.com/world/asia-pacific/taiwan-reports-surge-chinese-aircraft-defence-zone-2021-10-04 into Taiwan‘s air defence zone, moves met with concern by Washington and its allies.

Democratically ruled Taiwan has sought support from other democracies, especially the United States and it allies, amid the growing military and political pressure from China, which claims Taiwan as its own territory.

Speaking at the presidential office to the French senators, lead by former defence minister Alain Richard, Tsai thanked France for its concern about the situation in the Taiwan Strait and support for its international participation.

“We will continue to fulfil our responsibilities as members of the international community to ensure peace and stability in the Indo-Pacific region. We also hope to make more contributions to the world along with France,” she added.

Richard discussed the “essential contribution of Taiwan in the important field of human progress” but did not mention the rising military tensions with China in remarks carried live on the presidential office’s Facebook page.

Tsai gave a similar message in later remarks to Abbott, who told her he was in Taiwan to help end its international isolation, praising its democracy and handling of the COVID-19 pandemic.

“Of course not everyone and not everywhere is pleased at Taiwan‘s progress, and I do note that Taiwan is challenged on an almost daily basis by its giant neighbour,” Abbott said.

The French senators arrived in Taiwan on Wednesday, despite the strong objections of China which is always angered by visits of foreign officials.

Richard, head of the French Senate’s Taiwan Friendship Group, was the country’s defence minister from 1997 to 2002 under President Jacques Chirac.

Tsai said Taiwan was “very moved” Richard decided to come, despite what she described as “pressure” – a reference to China.

In March, the Chinese embassy in Paris warned against lawmakers meeting Taiwanese officials, prompting a rebuff from the French foreign ministry, which said French senators are free to meet whomever they wish when they travel.

Tsai did not directly mention the recent Chinese air force activities in public comments at her meetings with the senators or Abbott.

Neither France nor Australia have formal diplomatic ties with Taiwan, like most countries.

Separately, Taiwan‘s foreign ministry said it would pay close attention to a planned summit between U.S. President Joe Biden and Chinese President Xi Jinping, the United States being Taiwan‘s most important backer.

“We will continue to coordinate closely with the United States in Taipei and Washington to ensure that U.S. policy toward Taiwan remains unchanged,” said ministry spokeswoman Joanne Ou.

Taiwan‘s government has denounced China’s moves against it, and says it will defend the island’s freedom and democracy, and that only Taiwan‘s people can decide their future. – Reuters

Amid Facebook fracas, Australia moves to update defamation laws

By Byron Kaye

SYDNEY, Oct 7 (Reuters) – Australia is moving with new urgency to redraft its defamation laws after a court ruling that publishers can be liable for public comments on online forums like Facebook sent shockwaves through the media industry and beyond.

Since the ruling, CNN, which is owned by AT&T Inc, has blocked Australians from its Facebook pages https://www.reuters.com/technology/cnn-quits-facebook-australia-citing-defamation-risk-2021-09-29, while the Australian arm of British newspaper the Guardian says it has disabled comments below most articles posted to the platform.

The leaders of the state of Tasmania and the Australian Capital Territory, home to Canberra, have also turned off comment sections on their Facebook pages, citing the judgement by the country’s highest court.

Federal Attorney-General Michaelia Cash on Wednesday wrote to her eight state and territory counterparts, stressing the importance of an ongoing review of defamation laws.

“I have received considerable feedback from stakeholders regarding the potential implications of the High Court’s decision,” the letter, which was seen by Reuters, said.

“While I refrain from commenting on the merits of the Court’s decision, it is clear from stakeholder reactions … that our work to ensure that defamation law is fit-for-purpose in the digital age remains critical.”

The review, which has been running through 2021, has published 36 submissions on its website, including one from Facebook which says it should not be held liable for defamatory comments since it has relatively little ability to monitor and remove content posted under publishers’ pages.

The ruling has come under fire with defamation lawyers accusing Australia of not keeping up with technological change and noting the contrast with the United States and Britain where laws largely protect publishers from any fallout from comments posted online.

The state and federal attorneys general will meet to discuss possible changes in the next month, although no timeline has been published about when changes to the law could go to parliament.

While media organisations were among the first to criticise the High Court ruling, lawyers have warned all Australian sectors which rely on social media to interact with the public are potentially liable.

“The decision has significant implications for those who operate online forums … which allow third-parties to make comments,” a Law Council of Australia spokesperson said. “It is not limited to news organisations.”

Australian Capital Territory Chief Minister Andrew Barr was among those who have disabled comments from Facebook pages.

The move was made “out of an abundance of caution, as his page is not a Government account, it’s a personal page”, a spokeswoman told Reuters in an email.

Brendan Nyst, director of law firm Nyst Legal, which posts regularly on Facebook, said most businesses would continue allowing comments since “engagement is the primary strength of social media”, but the High Court ruling “establishes the need for appropriate monitoring”. – Reuters

The Keepers Holdings’ net income up by 56.8% during 1H2021

The Keepers Holdings, Inc., the publicly listed wine and spirits distribution company of retailer Lucio Co, reported that its net income climbed 56.8% to P650.7 million in the first half of 2021 compared to the P415.0 million it recorded in the same period last year.

The company saw a 38% year-on-year improvement in consolidated net sales as it posted P4.30 billion in the first six months of the year, or an increase of P1.11 billion.

The Keepers Holdings’ brandy segment, led by flagship brand Alfonso, registered a 58.6% sales growth in the first half of 2021, compared to the same period the previous year. The brandy segment now accounts for 78.1% of the group’s total sales by volume.

IWSR Drinks Market Analysis Limited, the global benchmark for beverage alcohol data and intelligence, had identified leading imported Spanish brandies, such as Alfonso, as among the growth drivers of the imported spirits segment.

Based on its early performance this year, The Keepers Holdings is hopeful that Alfonso will be able to sustain its rapid growth – even surpassing the performance of direct competitors in the wider spirits market in the Philippines – through execution of tailored strategies and by leveraging on the Lucio Co Group’s deep understanding of the domestic consumer market.

The Keepers owns three major players in the Philippine imported liquor, wine and specialty beverage distribution segments, namely, Montosco, Inc., Meritus Prime Distributions, Inc. and Premier Wine and Spirits, Inc.

According to IWSR, The Keepers Holdings controls 74.0% of imported spirits by volume and 66.9% by retail sales value, resulting from pure third-party distribution arrangements and associated businesses with some of the world’s leading and popular spirits brands, such as Alfonso, Johnnie Walker, Chivas, Jim Beam, Jameson, Jinro, Absolut Vodka, Tanqueray, Jose Cuervo, and Baileys.

In July 2021, The Keepers Holdings filed an application for a follow-on offering or a ‘re-IPO’ with the Securities and Exchange Commission (SEC) and Philippine Stock Exchange (PSE). Based on a prospectus dated July 13, 2021, The Keepers Holdings plans to offer up to 3 billion common shares at an offer price of P2.00 to P2.50 per share. The Keepers Holdings has engaged China Bank Capital Corp., PNB Capital and Investment Corp. and SB Capital Investment Corp. as joint issue managers, joint lead underwriters and joint bookrunners.

 

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InLife partners with Lazada to offer protection and accident products

Life insurance has a reputation for being expensive, too technical and hard to understand.

In order to address these concerns, Insular Life (InLife) partnered with the Lazada Marketplace to offer low-priced and easy-to-understand protection and accident products that one can obtain in as fast as a few clicks.

“This pandemic has made many realize that sickness and death may befall anyone anytime. But we also understand the reservation that comes with acquiring life insurance. It’s full of technical jargon and may take several days before it gets approved. At InLife, we want to let people know that LIFE really means Life Insurance is Fast and Easy. And this is what our Lazada products are here for,” said InLife Digital Distribution Head Geraldine G. Pascual.

She added that in order to help Lazada users purchase what could be their first insurance, InLife produced three videos that would explain to them how the products work,”

The videos may be accessed via InLife’s YouTube account. They are about: InLife Lazada Protect Plans, which are term life insurance plans with accidental death and disability benefits, as well as accidental hospital income benefits; the InLife Premium Protect Plans, which are term life insurance plans with hospital income benefits, and the InLife Shield Plans, which are comprehensive group accident plans with medical and surgical expense reimbursement benefits.

“We hope that after watching these videos, our kababayans would gain a better understanding of what life insurance means and why it is essential to own one,” Pascual added.

InLife’s Lazada products may be bought from the Insular Life LazMall Flagship Store.

 

Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by enabling them to publish their stories directly on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.

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