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First Gen nets $54.5 million in July-September

FIRST GEN Corp. reported a third-quarter net income of $54.56 million, down 17.6% from $66.18 million a year ago, despite an increase in the company’s revenues from the sale of electricity.

Revenues during the quarter hit $506.98 million, down 1.5% from $499.67 million a year ago. The Lopez-led company uses the US dollar as its functional currency when reporting its financial figures to the stock exchange.

In the nine months to September, attributable net income grew by 45.9% to $220.3 million, with the increase due to the “higher electricity sales of its clean fuel platforms, foreign exchange gains, lower interest expense, and benefits from deferred income taxes.”

The Lopez group‘s energy company reported a 21% increase in recurring net income attributable to equity holders of $217 million from the operations of its 3,492 megawatt (MW) clean and renewable portfolio.

First Gen subsidiary Energy Development Corp. (EDC) contributed recurring earnings from its geothermal, wind, and solar platform of $67 million, higher by 28.8% from $52 million a year ago.

“EDC’s Leyte and Negros geothermal plants performed better due to lower outages and higher average selling prices. Recall that a portion of EDC’s operating assets in Leyte was damaged by Typhoon Urduja in December 2017, which was fully restored in the third quarter of 2018,” First Gen said.

The company said its natural gas-fired power plants delivered increased recurring earnings for the period.

“While the two newer gas plants — the 420 MW San Gabriel and 97 MW Avion — generated higher electricity sales from their respective customers, it was Avion that provided a larger increase in earnings as the merchant plant enjoyed higher dispatch and higher selling prices in 2019,” it said.

“The two older plants — the 1,000 MW Santa Rita and 500 MW San Lorenzo — continue to perform steadily,” it added.

Meanwhile, Lopez Holdings Corp. reported a nine-month net income attributable to equity holders of the parent of P6.061 billion, up 54% from a year ago.

“The energy group under associate First Philippine Holdings Corp. (FPH) continued to perform strongly. Meanwhile, investee ABS-CBN Corp.’s advertising revenues continued to recover, boosted by political placements,” the holding firm said.

Unaudited consolidated revenues rose 9% to P99.767 billion from P91.188 billion.

FPH recorded a 35% rise in net income attributable to equity holders of the parent while recurring net income was higher by 21%, as electricity sales increased by 10%. ABS-CBN reported a 53% rise in net income as advertising revenues increased by 15%.

As of end-September, Lopez Holdings owned 51% of FPH and 56% economic interest in ABS-CBN.

On Thursday, shares in First Gen climbed by 1.44% to P24.70 each, while those of Lopez Holdings slipped by 0.24% to P4.15 each. Shares in FPH also decreased by 0.06% to P78.35 each. — Victor V. Saulon

Banks urged to go into microfinance

THE BANKING INDUSTRY should tap the large microfinance market despite the challenges it poses as it is seen to contribute to the development of other sectors which use financial services and ultimately help boost economic growth.

Speaking to delegates and top officials of banks around the world during the 36th Asian Bankers Association Conference held in Makati City yesterday, Rizal Microbank President Raymundo C. Roxas said there is a huge market to tap for microfinancing in poor and low income households and micro-enterprises which belong to the D and E classes.

“We have to remember that most of the end-users are consumers that patronize the products and services of the large companies we serve belong to the base of pyramid and there are a quite number of them. If we do our part in ensuring that these market segments are made part of inclusive growth and development, then we are also ensuring the fate and future of other customers and clients, and ultimately, the fate and future of our own organizations,” Mr. Roxas said.

However, he cited the challenges in venturing into microfinance, including the market’s lack in financial literacy, having minimal real estate properties and fixed assets to offer as collateral, as well as clients having labor-intensive work who are mostly intimidated to go to banks.

“Microfinance clients are geographically dispersed and mostly are found in rural areas, they have no financial records or credit history with formal institutions, they have minimal savings or none at all, and they have limitation in producing valid IDs,” he added.

In fact, Rizal Microbank, the microfinance arm of Yuchengco-led Rizal Commercial Banking Corp., took eight years “to attain a significant portfolio to post a profit” as its loan book needed time to grow since loan sizes are relatively small, he explained.

“With more available technology, the challenge of pursuing the unbanked and the underserved market segments due to the unintended high costs, can now be better addressed and improved,” Mr. Roxas said.

For Philippine National Bank President and CEO Jose Arnulfo A. Veloso, it is up to the industry to “aid the unbanked” and service those who borrow from informal sources from the risks of exploitation, even though he himself admitted that this task is challenging.

As applicants find it difficult to acquire required documents, especially those in the provinces, Mr. Veloso said a national ID system will improve banks’ assessment of applicants and help them process and approve credit faster.

“The road to digital has never been a smooth ride — more so in the Philippines. Friends and colleagues — the digital divide is real and is a serious issue in our country. Inter-connectivity remains to be an issue and price of telecommunications is still relatively expensive for many Filipinos,” he said in his speech in the same forum.

He said that of the country’s total population of over 100 million, 15% still live in municipalities without financial services, while 34% have bank accounts and “a very small number” of 2.6% of the population have borrowed from a bank. — Beatrice M. Laforga

Your Weekend Guide (November 15, 2019)

Manila Pop Culture Convention

TABLETOP games are one of the attractions at the ManiPopCon this weekend at the Solaire Tent.

THE Manila Pop Culture Convention, or ManiPopCon, hosts different geekdoms under one convention on Nov. 16 and 17 at the Solaire Tent, Solaire Resort and Casino, Pasay City. There will be tabletop games, collectible card games, Dungeons and Dragons (D&D), miniature wargames, geek sundries, toys, Funko Pops, adult collectibles, comic books, science fiction, eSports, VR games, midway games, cosplay, mascots, tabletop ’70s and ’80s displays and memorabilia, and celebrities one didn’t know were geeks. There will be also an after-party called “ManiPopCon After Dark” at 10:30 p.m. on Saturday, at the Waterside restaurant, featuring stand-up comic Mike Unson, disco music by DJ Boyet Sison, and spoken word by the artists of Collaboratory Ph. ManiPopCon’s doors open at 10 a.m. Tickets (P400 for adults, P250 for teens with student IDs, children below 10 get in for free) are available at the entrance or through www.ticketworld.com.ph.

TLC Festival at Boni High Street

ANGIE KING, Pam Pastor, Anton Amoncio, Rico Blanco, and IV of Spades join TLC’s international talents for a day of fun at TLC Festival on Nov. 16 at Bonifacio High Street, BGC, Taguig. Attending are Janet Hsieh, host of TLC’s Fun Taiwan, and Rikki-An Quiapon, eSports shoutcaster. The festival will have music, food, and art. Hosts from TLC and Asian Food Channel Sarah Huang Benjamin, Anton Amoncio, Matthias Rhoads, and May Yacoubi will hold cooking demos. There will be live basic culinary technique and food styling lessons at C1 park and live creative arts and crafts activities at One Bonifacio High. Rock out with funk rock band IV of Spades and rock icon Rico Blanco as they round off the night at the main stage. Admission is free.

Caroling at The Peninsula

AS PART of The Peninsula Manila’s Christmas celebration, there will be Caroling at The Lobby every Friday from 6:30 to 7:15 p.m. Performing today is the Far Eastern University Bamboo Band. Upcoming performers are the Jose Rizal University Ukelele Band (Nov. 22), St. Theresa’s College Sinag Primary Chorale (Nov. 29), 92AD (Dec. 6 and 13), and St. Theresa’s College Sinag Intermediate Chorale (Dec. 20). There is minimum consumption at The Lobby during the show of P1,200 for adults and P600 for children under 12.

Neocolours’ reunion concert

THE 1980s vocal group Neocolours will be holding a reunion concert, Tuloy Pa Rin Ang Banda, at the Music Museum, Greenhills Shopping Center, San Juan, on Nov. 16, 8 p.m. They will perform old favorites: “Tuloy Pa Rin,” “Maybe,” “Kasalanan Ko Ba,” and “Hold On,” and more. Directed by Frank Lloyd Mamaril, the show includes special guests Nicole Asensio, Jett Pangan, and Jamie Rivera. Tickets are available at TicketWorld (891-9999, www.ticketworld.com.ph).

Christmas Animated Display

ARANETA CENTER’s Christmas Animated Display at the Times Square Food Park is centered around the stories of five important figures of the Yuletide season. The Christmas Animated Display will have 15-minute shows from 6 to 10 p.m. on Sundays to Thursdays, and from 6 to 11 p.m. on Fridays to Saturdays until Jan. 5. Admission is free to the public.

MSO Pas De Deux

CONDUCTOR Darrel Ang teams up with MSO’s Concertmaster, Juillard-trained violinist Diomedes Saraza, Jr., and Korean cellist Kim Yeinjin for MSO Pas De Deux on Nov. 16, 4 p.m., at the Meralco Theater, Ortigas Ave., QC. The concert features Brahm’s Double Concerto as well as well-loved ballet scores from Tchaikovsky. Tickets are available at TicketWorld (891-9999, www.ticketworld.com.ph).

Cats the Musical

THE latest international tour of the award-winning Andrew Lloyd Webber musical is running until Dec. 1 at The Theater at Solaire. The show stars Joanna Ampil as Grizabella. For more information, visit www.catsthemusical.com. Tickets are available at TicketWorld (891-9999, www.ticketworld.com.ph).

Van Gogh Alive

A MULTI-SENSORY exhibition about the Dutch painter’s life told through his works and letters is ongoing at the 4F of One Bonifacio High Street in BGC, Taguig City until Dec. 8. For information, visit the official website at www.vangoghalive.ph. Tickets are priced at P750 (adult) and P450 (student) and are available onsite and at The Mind Museum ticket booth.

The Quest for the Adarna

REPERTORY Philippines’ Theater for Young Audiences presents a musical retelling of the Philippine folk tale “Ibong Adarna.” The Quest for the Adarna has performances until Jan. 26, 2020 at Onstage Theater, Greenbelt 1, in Makati. In the kingdom of Berbania, the king falls mysteriously ill and can only be healed by the song of the mythical bird, Adarna, which can be found in its mountain home. His three sons take turns attempting the dangerous journey to help their father. Tickets are available through TicketWorld (www.ticketworld.com.ph, 891-9999).

SF9 in Manila

SF9 is returning to Manila for a concert on Nov. 16, 7 p.m., called 2019 SF9 Live Fantasy #2 Unixerse in Manila, at the New Frontier Theater, Araneta City, Cubao, QC. Tickets range in price from P3,000 to P8,000 and are available at
Ticket Prices/Categories: WWW.TICKETNET.COM.PH and all Ticketnet outlets. Depending on the ticket prices, fans may get guaranteed Hi-Touch, photo op (20 pax per group), VIP passes with official tour lanyard, a raffle for signed posters and signed Polaroid.

First Jan Ki Yong fan meet in Manila

K-DRAMA fans will have a chance to meet Korean actor and international model Jang Ki Yong who is coming to Manila for the first time on Nov. 17 at the Samsung Hall of SM Aura, BGC, as part of his 2019 Jang Ki Yong 1st Fan Meeting [Filmogtaphy] Tour. On-site activities and up-close interactions await his fans said concert and live events promoter Wilbros Live. Jang Ki Yong is known for his supporting role in “Go Back Couple”, a hit Korean drama series that aired on ABS-CBN last year. Tickets are still available via SMTickets.com and all SM Tickets outlets nationwide. Call SM Tickets at 470-2222 for more information.

Filinvest Land earnings dip in third quarter

PROFITS of Filinvest Land, Inc. (FLI) slipped 6% in the third quarter, weighed down by higher costs.

In a regulatory filing yesterday, the listed real estate arm of Filinvest Development Corp. said its net income in the three months to September stood at P1.39 billion. This came amid an 8% increase in total revenues to P5.8 billion, including equity in earnings of an associate and other income.

Real estate sales inched up 5% to P3.76 billion as rental services grew 22% to P1.75 billion.

Costs, operating expenses and interest and other charges amounted to P4.19 billion, 17% higher than last year.

For the nine months to September, FLI’s attributable net income increased 7% to P4.44 billion as total revenues rose 15% to P18.43 billion. Total expenses stood at P12.8 billion, climbing 19% from last year.

In a statement, FLI President and Chief Executive Officer Josephine Gotianun-Yap said the company is expecting its residential trading and office rental businesses to grow further in the remaining months of 2019.

“We look forward to the growth coming from both the traditional and BPO offices, co-working spaces, as well as the entry of new locators and the expansion of existing clients,” she was quoted as saying. — Denise A. Valdez

United Auto Workers union unveils ethics reforms after US investigation into payoffs

DETROIT — The United Auto Workers (UAW) on Wednesday announced a series of ethics reforms in answer to a spreading US federal corruption probe that has resulted in charges or convictions for a number of former leaders of the union.

The UAW said those reforms will include the appointment of an independent ethics ombudsman who will not be an employee of the union; increased financial oversight by the union’s accounting department; and creation of an ethics hotline.

“I’m committed to putting in place the right mechanisms to safeguard our union, regaining the trust of our members, and ensuring the misconduct that has recently come to light will never happen again,” acting UAW president Rory Gamble said in a statement.

To date, 10 people have pleaded guilty in connection with the criminal investigation into illegal payoffs. Just last week former UAW vice president and former GM board member Joseph Ashton was charged with conspiracy to commit money laundering and wire fraud.

Earlier this month the UAW said that its president Gary Jones, who had been linked to the ongoing corruption probe, was taking a paid leave of absence.

Last week acting UAW president Gamble said he would scrutinize every department in the union in response to the probe and that the UAW would have to prove it could run itself in order to avoid a possible US government takeover of the labor organization.

In 1988, the US Justice Department sued to force out senior leaders at the International Brotherhood of Teamsters union and appoint a trustee because of the union’s connection to organized crime.

The government oversaw the union from March 1989 until 2015, when it agreed to a five-year transition period that will end in February 2020. — Reuters

Visa, Mastercard draw FTC inquiry over debit card transactions

THE FEDERAL Trade Commission has reached out to the card issuers.

VISA INC. and Mastercard Inc. are once again in the crosshairs of US antitrust regulators over policies that can prohibit merchants from routing card transactions over alternative debit networks.

The Federal Trade Commission (FTC) has been reaching out to large merchants and their trade groups over the issue as part of a preliminary inquiry, according to people with knowledge of the matter. At issue is whether Visa and Mastercard and large debit card issuers are blocking retailers from routing some mobile wallet payments and tap-to-pay transactions over alternative networks such as Pulse, NYCE and Star, said the people, who asked not to be identified because the inquiry isn’t public.

Representatives for Visa and the FTC declined to comment. Seth Eisen, a spokesman for Mastercard, said the network will cooperate with the FTC’s request.

A 2010 law known as the Durbin amendment — named for Senator Dick Durbin, an Illinois Democrat who ushered it into existence — limited the amount the largest US banks could collect for debit transactions and required that merchants have at least two options for routing them. When chip cards began arriving in the US roughly five years ago, they carried so-called application identifiers, or AIDs, which allow merchants to route debit transactions to their preferred network.

FTC investigators have asked questions about transactions made with mobile wallets, said the people. Such transactions can automatically route to the global AID, which uses Visa and Mastercard networks.

FTC investigators are also looking into whether the country’s largest debit card issuers are prohibiting transactions that don’t require a personal identification number from being routed over the alternative networks.

The FTC has examined issues with debit routing in the past. Visa amended its rules in 2016 in response to an FTC inquiry, clarifying that retailers wouldn’t be required to ask cardholders to choose a network for their debit card transactions. — Bloomberg

What to see this week

6 films to see on the week of November 15 — November 21, 2019

Charlie’s Angels

The Angels put their lives on the line when a systems engineer blows the whistle about dangerous technology. Directed by Elizabeth Banks, this reboot stars Kristen Stewart, Naomi Scott, Ella Balinska, Sam Claflin, and Elizabeth Banks. The Hollywood Reporter’s Beandrea July writes, “Banks peppers in the action-movie sequences that fans of this genre have come to expect, and they are well plotted and paced. (The final comeuppance stands out as expertly choreographed and executed with ballet-like precision.)”

MTRCB Rating: PG

Doctor Sleep

BASED ON the Stephen King novel of the same title, the film follows the events after The Shining. Dan Torrace is now grown up and meets a young girl whom he discovers has the same powers as his. He tries to protect her from the child predator, The True Knot. Directed by Mike Flanaga, it stars Rebecca Ferguson, Ewan McGregor, and Carel Struycken. The Washington Post’s Michael O’Sullivan writes, “Doctor Sleep will by no means make you drowsy, but it won’t keep anyone up at night either.”

MTRCB Rating: R-13

Countdown

YOUNG NURSE Quinn Harris downloads the Countdown, an app which predicts when a person will die. Demons come after her when the app tells her that she has only three days to live. Directed by Justin Dec, the film stars Elizabeth Lail, Jordan Calloway, and Talitha Eliana Bateman. The Wrap’s William Bibbiani writes, “Countdown starts out embarrassing but gets progressively more entertaining as time goes on, to the extent that you start to wonder if it was ever actually bad to begin with.”

MTRCB Rating: R-13

Ford v Ferrari


AMERICAN car designer Carroll Shelby and British-born driver Ken Miles battle corporate interference to design a race car for Ford Motor Company which overtook the popularity of cars by Enzo Ferrari at 24 Hours of Le Mans race in France in 1965. Directed by James Mangold, the film stars Christian Bale, Matt, Damon, and Caitriona Balfe. The New Yorker’s Anthony Lane writes, “Ford v Ferrari is directed by James Mangold, and it may be his strongest film.”

MTRCB Rating: PG

Red Shoes and the Seven Dwarfs

TWO PRINCES were turned into dwarves and they seek the red shoes of a lady to break the spell. Directed by Sung-ho Hong and Moo-Hyun Jang, this animated film features the voices of Chloë Grace Moretz, Sam Claflin, and Gina Gershon.

MTRCB Rating: G

The Annulment

A COUPLE faces challenges that may end their marriage. Directed by Mac Alejandre, the movie stars Lovi Poe and Joem Bascon.

MTRCB Rating: R-13

Employee attrition: The good, the bad, and the ugly

I’ve just received a campaign flyer about a public management seminar on “how to avoid attrition.” In the war for talent, a seminar like this is interesting piece, except I believe there’s something good about having attrition in any organization. Could you help me understand both sides of the coin? — Pink Torpedo.

Just like religion and atheism, we are forced to think of the advantages and disadvantages of two opposing positions. In doing so, we have to use our head and not rely on “tales” to come up with the best judgment. With this in mind, let me tell you that there are more than two sides of the people management coin. Hence the title of this article: the good, the bad, and the ugly sides of attrition:

One, the good side. As long as the turnover rate is maintained not higher than 5% per year, then your organization need not worry about attrition. If organizations can maintain that level of turnover, they can use it to welcome new blood and fresh ideas with the help of those who want to remain loyal. An organization may also choose not to replace a resigned employee at this level of turnover.

Instead, the work to be left unattended by the resigned worker could be distributed to the remaining workers. For example, if Andy who is receiving P35,000 a month has resigned, then the best approach could be to not replace him but instead distribute his tasks to his junior colleagues like Boy (receiving P20,000 salary), Cris (P18,000), and Danny (P16,000).

At this point, your company has already saved P35,000 a month, except you don’t consider it a windfall or a development that adversely affects operations. It might be better to increase the basic pay of Boy, Cris, and Danny by P2,333 each, to preserve the internal equity based on meritocracy and seniority.

So, how did I arrive at the pay increase for the three survivors?

My rule of thumb is 80-20. Twenty per cent is P7,000 out of the P35,000 salary of Andy. Divide the P7,000 into three equal portions and that should be your basis for the salary increase of the three loyalists who are required now to share in the load left by Andy. This also means an 80% or P28,000 monthly savings for the organization. That’s how you should be able to improve morale and productivity.

Two, the bad side. At 6-9% annual turnover over the last three years, prepare to review your empowerment and engagement programs. This includes a review of your salary structure if it is within industry standards. Or, if you’re not sure about the cause or causes on the steady increase in voluntary resignations, then better conduct a morale or satisfaction survey at the soonest possible time.

It could be that while you have a sophisticated engagement program and your salary package is above the industry average, the attrition rate could mean other things like the toxic management style of your frontline supervisors and other people managers. Or it could that your working facilities have degenerated into something bordering on violating labor standards.

Don’t guess why you have an increasing turnover rate. Do something right away.

Last, the ugly side. The worst thing that could happen is double-digit turnover rates. I’ve seen and heard of organizations with more than 25%, placing undue stress on its recruiters to deliver fresh candidates, failing which operations will suffer.

At times, trouble comes in with excessive, if not unnecessary praising of people. “Praise” here means many people have become comfortable with their work situation that they have degenerated into average performers who will not be kicked out of their jobs.

A case in point is the perfect attendance award. Some organizations use it to recognize workers who have logged zero absences and tardiness without looking at their actual tangible work performance. Chances are, you’ll discover that these people with perfect attendance routinely go with the flow without contributing any tangible accomplishments for the organization.

If this happens, many people who are not happy with the set-up would look for alternative employment in a more dynamic organization. It’s counter-intuitive, but just the same, I believe that organizations that don’t value meritocracy would often drive fast-trackers elsewhere.

In summary, having a low or high turnover rate is not good for any organization. Both extremes at some point could be harmful. Having an extremely low or zero attrition rate is bad, in the same manner as that of having a double-digit resignation rates. Let’s accept that. The only thing that we can do is to manage every resignation and make it a learning point for everyone.

The exit interview may not help management discover the reasons behind voluntary resignations. It’s too late for anyone in people management to do just that. The employee has resigned and it’s not a good idea to make a counter-offer, unless you want to establish a bad precedent.

Therefore, the best approach for managers is make sure they always have a finger on the pulse of their workers and respond with reasonable strategies to reconcile the interests of the workers with the vision, mission, and value statements of the organization.

ELBONOMICS: A painful resignation is often without a clear reason.

 

Send anonymous questions to elbonomics@gmail.com or via https://reyelbo.consulting

8990 Holdings’s 3rd quarter income rises by 36%

MASS HOUSING developer 8990 Holdings, Inc. reported 36% increase in its net income in the third quarter, driven by rising sales from its affordable housing development.

In a regulatory filing, the listed property developer said it booked a net income of P1.389 billion in the three-month period ending September from P1.018 billion a year ago.

Revenues grew 33% to P3.498 billion during the July to September period. Broken down, real estate operations went up 29% to P3.4 billion, while earnings from hotel operations reached P98.063 million.

Under real estate, revenues from low-cost mass housing grew 28% to P1.731 billion, medium-rise condominiums units contributed P129.033 million. Revenues from high-rise condominium units soared to P1.539 billion from P27.806 million.

For the first nine months, 8990’s profit went up 23% to P4.208 billion, on the back of a 21% rise in revenues to P10.508 billion. Most of the revenues came from real estate sales, which jumped 18% to P10.204 billion. Urban Deca Homes Manila accounted for 43% of 8990’s top line.

“Our results this quarter and for the year demonstrate the strong demand for housing. But, more importantly, it underlines the importance of not only building houses but developing new communities like what we accomplished at Urban Deca Homes Manila,” 8990 Acting President and Chief Executive Officer Alexander Ace Sotto.

Urban Deca Homes Manila is 8990’s P20 billion affordable housing complex, which offers more than 13,000 units.

Urban Deca Homes Ortigas, which will offer 19,046 low-cost condominium units, was launched in July. Two months after its launch, the company’s sales reservations reached P1.5 billion.

Shares in 8990 ended flat at P14.84 each on Thursday. — Vincent Mariel P. Galang

How PSEi member stocks performed — November 14, 2019

Here’s a quick glance at how PSEi stocks fared on Thursday, November 14, 2019.

 

The Philippines’ english proficiency erodes

The Philippines’ english proficiency erodes

Outmaneuvering themselves

It has taken on a life of its own, but it was evident that President Rodrigo Duterte’s only purpose was to stop Vice-President Maria Leonor “Leni” Robredo’s criticism of his so-called “war on drugs” when he dared her on Oct. 31 to take charge of it for the next six months.

The Vice-President had declared that the brutal Duterte anti-drug campaign was a failure and has to be “tweaked,” by which she meant re-studied and re-oriented. Mr. Duterte conveniently forgot that he himself had admitted early this year that he has failed to fulfill his 2016 campaign promise to put an end to the drug problem within six months.

Apparently on the assumption that Mrs. Robredo would refuse to take the Duterte dare seriously, Presidential Spokesperson Salvador Panelo went as far as to announce that if she accepted the post of “anti-illegal drugs czar,” the Vice-President would “have under her command all offices, bureaus, agencies or government instrumentalities involved in the enforcement of the law on prohibited drugs,” that they would be under her direct supervision, and that “to ensure her effectiveness in combatting the drug menace, she would have a Cabinet Secretary portfolio.”

Mr. Duterte himself then said that the post he was offering would last till the end of his term in 2022 and not just for six months, which was the length of time he had earlier said he was giving the Vice-President to address the drug problem.

Panelo in effect withdrew his earlier announcement when, despite her spokesperson’s statements to the contrary, Vice-President Robredo took Mr. Duterte’s dare in stride and accepted his so-called offer. Instead of repeating what he said before Mrs. Robredo accepted responsibility for the anti-illegal drugs campaign, Panelo then told the media that she should talk to Mr. Duterte first so she can be told what her powers and duties are as Co-Chairperson of the Interagency Committee on Anti-illegal Drugs (ICAD).

Mrs. Robredo’s acceptance of that post was apparently more than what the regime had bargained for. Because her statement on why she accepted the post despite reservations by her Liberal Party colleagues, human rights groups, and critics of the Duterte regime’s bloody and selective “war on drugs” was intelligent, sober, and statesmanlike, it immediately gained her widespread support. The next public opinion surveys will very likely confirm a boost in her approval ratings.

The Duterte dare was all too obvious in its intentions. If she had ignored the dare, it would have given regime allies, trolls and media hacks the opportunity to dismiss her as all talk. If she accepted it — which, judging from their earlier statements, Mr. Duterte’s accomplices thought was unlikely — the agencies involved, among them the Philippine National Police (PNP) and the Philippine Drug Enforcement Agency (PDEA) whose head would be her co-chairperson, could throw all sorts of obstacles in her path to make sure she would fail.

The political consequences of being perceived as just a nitpicking fault-finder or a failure are obvious enough. Among others, it would write off Mrs. Robredo as a possible opposition candidate for the Presidency in 2022, and, by validating Duterte regime claims that she and the opposition are incompetent, would help pave the way for the victory of Mr. Duterte and company’s candidate in the elections that year.

But what are at stake are far beyond what’s obvious. It is not only Mrs. Robredo’s and the opposition’s political future in the next eight years till 2028. On the block as well would be the fate of what’s left of Philippine elite democracy and the further entrenchment of the incompetent provincial despotism that has hijacked the political system, weaponized the law against its critics, and brought corruption to unprecedented heights while the rest of the country falls deeper and deeper into the pit of poverty, injustice, violence, and mass misery.

Mrs. Robredo had no choice but to accept under these circumstances. But she has wisely refused to be lured into issuing any declaration that she would succeed in the next two-and-a-half years in ridding the country of the drug problem that the Duterte regime has failed to eradicate in the more than three years it has been in power. Instead of making any such claim, she has pledged only to save as many lives as possible by redirecting the anti-drug campaign away from the wanton killing of suspected drug users and pushers to looking at the drug problem as both a public health and human rights issue.

The mindless assumption that the multidimensional drug problem — it is an economic, social as well as political, psychological and cultural issue — can be solved overnight by simply killing or jailing users and pushers has time and again been disproven. What the experience of other countries shows is that it will require both time as well as a multi-pronged, multi-disciplinal approach to even begin to address it.

Launched by then President Richard Nixon nearly 50 years ago in 1971, the United States’ own “war on drugs” has failed to curb drug abuse. Instead “it has ruined lives, filled prisons and cost a fortune,” said a New York Times op-ed piece in 2017.

The US is in fact still among those countries with the highest rates of drug use among their populations. Not original to the Duterte regime, but a phrase first coined by the US news media, the “war on drugs” is focused on making access to prohibited substances difficult. To combat their influx into its borders, the US spends billions in military aid to help Colombia — whose drug lords are among the main sources of the cocaine and other drugs that flood the US — stop the drug cartels. Drug abuse continues, however, and has led to the exponential growth of the US prison population as more and more young drug users end up in jail.

Closer to home, Thailand’s 2003 anti-drug campaign has similarly failed, despite the government of then Prime Minister Thaksin Shinawatra’s focus on killing drug dealers and users — a policy that by 2004 had cost over 3,000 deaths. Most of those killed, it later turned out, were not at all involved in the drug trade. Thailand’s drug problem has since worsened rather than abated.

Given these lessons from the experience of the US and Thailand, Mrs. Robredo wisely steered clear of promising the end of the drug problem under her watch. It isn’t only because her getting the full cooperation of the agencies involved is at least uncertain. It is also because the drug problem is rooted in, among other factors, poverty and the runaway corruption in some of those very agencies, among them, as the Senate hearings last September found, the PNP.

Meanwhile, the trap the regime set for Mrs. Robredo has backfired into a public relations disaster for it. It has enabled the Vice-President to focus on stopping extrajudicial killings (EJKs), while at the same time alerting the public to the imperative of holding Mr. Duterte to his pledge that the agencies under his command and control will provide Mrs. Robredo all the cooperation, support, information, and help she needs between now and 2022. By the end of his and her terms that year she could emerge the winner in the short-sighted attempt to silence and destroy her politically. Mr. Duterte and company have very likely outmaneuvered themselves.

 

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

www.luisteodoro.com