Lex Talionis: in a time of a shooting war
President Rodrigo Duterte’s order to the Armed Forces of the Philippines (AFP) to give the New People’s Army (NPA) tit for tat” is notable on several levels. It is perhaps the first time in the Philippines since American General Jacob Smith and Japanese Geneneral Masaharu Homma were here, that a commander-in-chief or a military commander has ordered “tit for tat,” “Do it to them also,” and “give them what they deserve” against the enemy. Whatever way this is interpreted and implemented by the military, and counter-attacked by the NPA, the result can only be an unfortunate further escalation of the armed conflict and (counter-)insurgency-related killings.
It actually conjurs something the President wants to avoid per his last State of the Nation Address, although said in a different context: “A shooting war is grief and misery multiplier. War leaves widows and orphans in its wake. I am not ready or inclined to accept the occurrence of more destruction, more widows and more orphans, should war, even on a limited scale, break out.” The thing is, the NPA probably feels the same way as he did when he also said — but again in a different context — “It is also exasperating that there are times when I think that perhaps it is blood that we need to cleanse and rinse away the dirt and the muck that stick to the flesh like leeches.”
The sad reality is that both sides of our shooting war already made a decision in late 2018 to primarily pursue such a kind of a war. The Duterte administration has decided on what it calls a “paradigm shift,” embodied in Executive Order No. 70, not to negotiate with the Communist Party of the Philippines (CPP)-NPA-National Democratic Front of the Philippines (NDF) top leadership but to instead defeat or neutralize it politically and militarily at sub-national levels — ironically, based on the security establishment’s assessment of the CPP-NPA-NDF’s strategy with the peace negotiations “not to pursue real peace but to meet their objective of overthrowing the legitimate government.”
Given what it considers to be the “US-Duterte fascist regime,” the CPP-NPA-NDF strategy under his remaining term is to reprise the largely successful CPP-NPA-NDF armed resistance against the “US-Marcos dictatorship.” CPP founder and NDF Chief Political Consultant Jose Ma. Sison said last April: “There can be no genuine peace negotiations… while Duterte remains in power… It is obvious to the Filipino people and their revolutionary forces that they have no choice but to concentrate on intensifying the people’s war for a people’s democratic revolution.” So, a shooting war it will be for at least three more years. But even war has its limits — believe it or not — though easier said than done.
President Duterte appears to recognize this, even with his order to the AFP to give the NPA “tit for tat.” This is reflected in his statement to the NPA referring to its apparent torture and summary execution of four captured police intelligence operatives on July 18 in Ayungon, Negros Oriental, which has become his casus belli (an event justifying war): “You have gone too far… You cannot do it unrestrained, unbridled, uncontrolled… I will not allow it.” Neither should he allow, much less order, it to be done by his security forces. And with more reason for any legitimate government with professional military and police forces. The President seems to have caught himself in time by also saying “Maybe we wanted [to] as a revenge. But since we are government and you have to have morals to prop us up. Otherwise, we are no different from the barbarians like them.”

Well, President Duterte is not a “barbarian” but a fratman (some say, the real barbarians), a member of Lex Talionis Fraternitas, Inc. Sodalitas Ducum Futurorum of the San Beda College of Law (today’s politically correct law school). It is uncanny because Lex Talionis happens to be “the law of retaliation” developed in early Babylonian law, particularly the Code of King Hamurabbi (1792-1750 B.C.), and present in both biblical and early Roman law that punishment should resemble the offense committed in kind and degree. It is referred to in the Bible’s Old Testament three times as “An eye for an eye, and a tooth for a tooth,” but is repudiated by Jesus in the New Testament. It is so obviously morally wrong because you cannot right a wrong by committing another wrong. It is also morally and legally wrong to follow illegal orders — like an order to torture and summarily execute (extra-judicially kill, or “salvage”) captured enemy combatants. There is an arguable right for soldiers or even rebels to refuse to obey any illegal military orders of their commanders.
There is no place for Lex Talionis or “tit for tat” in the modern world. What we already have instead is international humanitarian law (IHL) or the law of armed conflict or war, the core of which is the 1949 Geneva Conventions, the 70th anniversary of which we commemorated on Aug. 12. The President is aware of this, as shown when he referred again to the NPA: “They are not fighting a conventional war. They are not obeying the Geneva Convention.” While the NPA is not fighting a conventional but instead a guerrilla war, it is still bound by IHL, particularly on non-international armed conflict, just like the AFP is in its counter-guerrilla war. As it is, both sides are on record to say they adhere to IHL and human rights in general and to the Geneva Conventions in particular. Let your continuing shooting war then be also a contest, if you will, in adherence in both word and deed, in both letter and spirit, to the Geneva Conventions, in the best interests of the civilian population caught in your crossfire AND of your respective causes.
Stated otherwise, real adherence to IHL serves not only civilian protection but also enhances your military discipline and popular support. Your shooting war is ultimately not about body count but rather about winning hearts and minds. Take to heart and mind this first among The Soldier’s Rules: “Be a disciplined soldier. Disobedience of the laws of war dishonors your army and yourself, and causes unnecessary suffering; far from weakening the enemy’s will to fight, it often strengthens it.” Barbaric, including “tit for tat,” behavior in war is counter-productive and self-defeating.
On the other hand, the renowned IHL scholar Hans-Peter Gasser teaches us: “… humanity in time of war… respect for IHL helps lay the foundations on which a peaceful settlement can be built… The chances for a lasting peace are much better if a feeling of mutual trust can be maintained between the belligerents during war. By respecting the basic rights and dignity of [fellow humans], the belligerents help maintain that trust… IHL helps pave the road to peace.” Ironic though it may seem, following the rules of war is one of the paths to peace.
Soliman M. Santos, Jr. is a Judge of the Regional Trial Court (RTC) of Naga City, Camarines Sur. He is a long-time human rights and IHL lawyer; legislative consultant and legal scholar; peace advocate, researcher and writer, whose initial engagement with the peace process was with the first GRP-NDF nationwide ceasefire in 1986, particularly in his home region of Bicol, a long-time rural hotbed of the communist-led insurgency. He is the author of a number of books on Philippine peace processes, including his latest How do you solve a problem like the GPH-NDFP peace process? (Siem Reap, Cambodia: The Centre for Peace and Conflict Studies, 2016).
An idea for Isko: urban ecozones
Manila Mayor Isko Moreno has been rightly hailed for reclaiming public space by removing illegal vendors plying their trade by occupying streets and sidewalks. However, some critics have pointed out that these vendors are merely trying to earn a living and would suffer tremendously if they were removed or relocated.
It need not be an either-or situation — either the public gets back the spaces it needs or the vendors go hungry. The truth of the matter is that many of these illegal vendors are engaged in a form of disguised underemployed. Since there are few jobs in the city offering formal wages and benefits, they have to make their own jobs by being an informal service worker or entrepreneur. Hence, be an illegal vendor.
Illegal vendors are what constitute most of the jobs in our service-led economy. Although technically they have “jobs,” they live below the poverty line or are skirting its edge. They don’t enjoy secure regular wages and formal benefits like Social Security. Incomes are tenuous and unstable.
This type of worker or self-employed won’t go away. Not until there are enough good jobs where they can enjoy regular wages. In truth, “Endo” workers are in a better place than they are because “endo” workers still get benefits and wages, although only up to six months.
We can expect the number of these illegal service workers or unemployed to increase, perhaps adding to the population in congested slums and crime-infested areas. Why? Because manufacturing in the Philippines is weak, constituting only about 20% of the GDP, having contracted from 24% in another era. Manufacturing is where the good paying jobs are. Not surprising because productivity (and hence pay) in manufacturing is higher than in services in general. While manufacturing enjoyed a brief renaissance under former President Aquino, it’s faltering under President Duterte, for a variety of reasons, from the threats against “endo” to the uncertain tax regime, which is affecting Philippine Economic Zone Authority (PEZA) manufacturers.
The biggest culprit of all, however, is our high entry level or minimum wages (which is close to average wages) and unreasonable and restrictive labor security regulations (“permanency” after a mere six months). We have driven away labor-intensive industries like garments and light manufacturing to other countries such as Vietnam when our unemployed and underemployed represent a quarter of our labor force. In other words, we have a lot of people idle but investors don’t want to hire them because of government-mandated high entry level wages and labor security regulations. Investors go to Vietnam or Bangladesh instead. This is the essence of the contradiction hampering our industrialization.
Back to Isko. Why not adopt the idea of urban ecozones? The idea, if implemented successfully, will: a.) give jobs to the unemployed and to illegal self-employed, such as illegal vendors; b.) raise the city’s tax base; and c.) be a magnet for more investments in the city. In other words, win, win, win.

Start by designating a space within Manila as an urban industrial ecozone, maybe in Tondo. Build the necessary infrastructure for mini-factories to function:, i.e. streets, lights, water. Maybe even build the light factory buildings and investors could just bring in the light machines (like sewing machines) to start operating but charge them rent. Maybe even give them a tax break from city taxes. But here’s the key: to really attract labor-intensive industries, give them some relief from the high minimum wages with some form of wage subsidy. Mayor Isko already got the city to give Manila college students P1,000 monthly. Why not extend the concept to wage workers? After all, wage workers are also learning on the job. The public benefit is even larger: This keeps idle people off the streets, gives workers dignity, and will make investors flock to Manila as a place to put up factories and do business. In other words, it’s a form of CCT or the Conditional Cash Transfer program, only this time, the subsidy is not to the poor to send their children to school, but to the unemployed and underemployed to give them a job so they can support a family.
Wage subsidy is the key because labor-intensive manufacturing won’t thrive given the country’s high nominal minimum wages. (No thanks to noisy labor unions who comprise a mere 3% of the labor force and their grandstanding populist political patrons). The city government could even further improve workers’ welfare by encouraging investors to import and sell cheap rice directly to the wage workers, making use of the recent rice importation liberalization law .
The subsidy could be phased out in time when workers’ productivity has increased, and the capitalists can now shoulder the added wages. Manila can finance this program from a loan from the World Bank or an increase in property taxes.
In order to make factories in the urban economic zone even more competitive, the city government, together with the National Housing Authority, can provide dormitories or public housing so that workers don’t waste money and time commuting to work.
If urban ecozones work, then there’s no more need to relocate squatters to far off areas in Rizal or Cavite where they don’t stay because of a lack of livelihood. Light manufacturing and cottage industries will see a renaissance in Manila, helping to end its blight and pockets of poverty and hopelessness.
Cleaning the city and reclaiming public spaces is a good first step for Mayor Isko to revive the glory of Manila. However, without an economic base, its revival will not be sustainable. Economic vitality can’t be built on tourism alone or on gambling revenues. Only labor-intensive light manufacturing and cottage industries can absorb the hundreds of thousands of unskilled and semi-skilled people leaving the countryside for the city.
Mayor Isko could be the unDuterte. President Duterte built his national reputation by making Davao attractive to investors when he reduced crime and insurgency, albeit allegedly by violating human rights. On the other hand, Mayor Isko, who himself came from the slums, could make Manila attractive to investors with economically innovative and socially progressive policies. If he does so, politically, the sky’s the limit for Mayor Isko.
Calixto V. Chikiamco is a board director of the Institute for Development and Econometric Analysis.
Making Philippine tourism compete at higher levels
Last week, the Department of Tourism (DoT) announced that foreign arrivals breached the 4.1 million mark in the first semester of the year, an 11.43% increase from last year. It expressed confidence that it would meet its whole year target of 8.2 million visitors.
Without taking away from the success of the DoT, we should also look at how our arrival performance compares with that of our neighbors. Doing so will provide context on how well we are doing and a sense of how big the market truly is.
Let us not even consider the region’s big three — Thailand, Malaysia, and Singapore, whose tourism programs are highly developed. They play in the 20 million to 40 million visitor range.
Within our neighborhood are Vietnam and Indonesia since we all share the same infrastructure challenges, albeit to varying degrees. For this year, Vietnam is working towards welcoming 18 million visitors, a 15% increase from its record last year. Indonesia is targeting 20 million visitors, but this is unlikely to be attained since it failed to reach its targets for two years in a row. Analysts believe that 18 million is a more realistic number for them.
The Philippines is 10 million visitors short in comparison. This only means we must grow between 20 to 30% annually to narrow the gap.
For the longest time, infrastructure bottlenecks impeded the development of our tourism industry. The lack of airports and access roads to connect ports to tourist destinations made it too difficult, if not too expensive, to navigate our islands.
The good news is that the infrastructure gap is slowly being filled. In the last three years, 962 kilometers of new roads were built to connect ports to tourism destinations while two brand new international airports were inaugurated in Mactan and Panglao. On top of this, 27 domestic airports were either expanded, renovated, or night rated.
The effects were immediate. Forty new flights have been added to connect Mactan, Panglao, Palawan, Davao, and Clark, directly to cities like Tokyo, Dubai, Guangzhou, Shanghai, Kuala Lumpur, Macau, Singapore, Seoul, and Taipei, among others. This translates to more than 1.6 million inbound seats.
The route development team of the DoT wants to get Australian and New Zealand carriers to call on Philippine airports. They represent a huge, high spending market. Fifth freedom rights (the right to carry passengers from Australia to the Philippines and onwards to a third country) have been awarded to Australian carriers as an incentive.
By next year, a second terminal in Clark and the new Bicol International Airport will come online. This will be accompanied by some 2,250 kilometers of new tourism oriented roads across the country between 2020 to 2022.
With the many developments going on, infrastructure bottlenecks will become less of an issue in the years to come. No doubt, our arrival numbers will improve as a result of it. In fact, to aspire for 10 to 15% growth is too easy. It is already a given as new infrastructure will naturally foster the growth. The DoT needs to stretch its targets.
Growth must accelerate to double the usual pace to play in the same league as Vietnam and Indonesia within a decade. It is possible. But it would require a rethinking our market positioning, marketing strategy, and size of promotional investment.
CULTURAL TOURISM
Without doubt, the “It’s More Fun in the Philippines” campaign put us on the global tourism map. I chalk up its success to four reasons. The first is that the slogan itself was also the brand promise and more often than not, that promise was met. Second, it was a marketing campaign that stood out for its vigor, color and energy. It was a stark departure from the ambiguous campaigns used by our neighbors (eg. Wonderful Indonesia or Amazing Thailand). Third, the Filipino people adopted it as their own and used it in their social media feeds with great frequency. Fourth, promotional budgets were well spent with ads appearing on international cable channels, billboards in key cities, and banners on buses and subway tubes.
The “It’s More Fun in the Philippines” campaign gave us a good kick start. It took us from 4.27 million visitors in 2012 to where we are today. That’s an annualized growth rate of 10%.
But times have changed and so must our marketing campaign. We must now work on distinguishing the Philippines (as a tourism product) from the rest of the region. We must bring to light how the Philippine experience is different from the rest. The prospect of unique experiences is what will compel travellers to choose the Philippines over the likes of Vietnam and Indonesia.
One might argue that the Philippines has the best beaches in region, if not the entire planet. Others may say that the Philippines is fairly competitive in adventure, night life, and eco-tourism. Aren’t these selling points sufficient?
The reality is Nai Harn beach in Thailand and Nusa Pedida beach in Indonesia rate higher than Boracay and Palawan on Trip Advisor. My point is, our beaches, gorgeous as they are, are not the only game in town. Other destinations, like Bali, offers a more holistic product that includes an Indo-Hindu experience on top of beautiful beaches. Hoi An in Vietnam showcases its Kinh, Bach Viet, Han Chinese and French heritage alongside the beaches of Da Nang.
The competition is intense among the tourism products in the region. We must step-up our game if we are to get our fair market share. This is where cultural tourism comes in.
Cultural tourism pertains to a traveler’s engagement with a country’s culture, specifically the lifestyle of its people, its history, its art, food, architecture, religion and other elements that shape its way of life.
I count cultural tourism to be the most powerful sub-category in the tourism spectrum as it provides context to the experiences, sights and sounds of a destination. It is what makes a destination unique, interesting, and remarkable.
The Philippines is unique in that it is the only predominantly Catholic country in the region with a strong Spanish heritage. Our Hispano-Malay culture, with all the frills that come with it, is what makes us different. Unfortunately, this facet of our culture has not been exploited in the way it should on a marketing perspective.
Jose D. Aspiras got it right when he used the arts as his main marketing tool when he was tourism minister back in 1973 to 1986. I still recall how the Madrigal Singers, the Bayanihan Dancers, Pitoy Moreno and his fashions, as well as Nora Daza and Glenda Barretto and their cookeries were made ambassadors of Philippine culture.
The move served three purposes. Not only did it paint a colorful, exotic, and romantic picture of Filipino life to the world, it made the Philippines stand out as a rich cultural destination. More importantly, it gave the Filipino himself a sense of identity. It fostered national pride.
Of course, the use of cultural ambassadors is no longer applicable these days what with the advent of the internet. Still, the principle remains the same. The different facets of our culture should be the main context in which we sell our beaches and other tourist spots. Again, beautiful beaches, without cultural context, are a dime a dozen.
We need to compete at a higher level since our neighbors have all stepped up their game. Not to do so will leave us further behind. Cultural tourism will give us the legs to run the race.
Andrew J. Masigan is an economist.
Mandating public ownership
Last week Commissioner Ephyro Luis B. Amatong announced that the Securities and Exchange Commission (SEC) is now looking at mandating a 20-25% Minimum Public Offering (MPO) range for listed companies, against the November 2017 order for these public companies to hit 15% MPO within three years, then another two years for the final 20% MPO.
It is not three years yet from 2017, and many listed companies have not even climbed up to the 15% intermediate level before settling to 20% MPO. No problem, Mr. Amatong said. “We don’t care how you do it, as long as within five years (until 2024) you’ll have 25%,” he insisted (BusinessWorld, Aug. 13, 2019). There are 68 listed firms to be affected by the increased MPO requirement, with 39 having a public float of less than 15%. Four of the 30 Philippine Stock Exchange Inc. (PSEi) member firms currently have a public float of less than 25%, namely: Aboitiz Power Corp. with 19.15%; Globe Telecom, Inc. with 21.65%; Manila Electric Co. with 20.98%; and San Miguel Corp. with 15.94% (Ibid.).
“The ASEAN standard is 25%… and there’s initial feedback since some companies in their initial offering (IPO) actually go straight to 40%,” Mr. Amatong said to reporters. Listed firms here however, still adhere to the 10% MPO requirement, which has been in place since 2011.
Surely not meant to taunt the announced public float requirement increase but only coincidentally, the next day billionaire Andrew Tan’s casino business, Travellers International Hotel Group Inc. (Travellers), announced on ABS-CBN News that it was voluntarily delisting from the Philippine Stock Exchange (PSE) in October. Travellers, which operates Resorts World Manila (RWM), will hold a tender offer for up to 1.58 billion shares, after which non-public shareholders will hold at least 90% of the total listed and outstanding common shares. Then they will no longer be covered by the SEC order to have 25% public retail investors have a say in their business.
And that is precisely the explanation Travellers gave for the voluntary delisting. “The conversion from a public entity into a private company will allow the company to timely address evolving market demands and rapidly changing customer needs without compromising its business strategies to competition,” Travellers told the stock exchange. Earlier, they reported a 52% drop in net income in the quarter ending June to P600.3 million, as gross expenses rose 89% to P7.37 billion during the same period. Kevin Tan, CEO of holding company Alliance Global, said net income in the January to June period was flat at P12.5 billion as “cost pressures” to address competition shaved margins (ABS-CBN News Aug. 14, 2019). Alliance Global includes property developer Megaworld Corp., liquor subsidiary Emperador Inc., and fast food restaurants under Golden Arches Development Corp., the exclusive franchise holder of the McDonald’s brand in the country.
It was only in May that the PSE warned another casino operator, Melco Resorts and Entertainment (Philippines) Corp., that it will delist the company unless at least 10% of its stock was sold to the public by June 11, a deadline set after the SEC warning of non-compliance with MPO in December 2018. But like the Resorts World case, the City of Dreams owners MCO (Philippines) Investments Ltd. had wanted to voluntarily delist from the PSE since September 2018 and in fact made a tender offer for up to 1.5 billion outstanding common shares held by the public, representing 27.23% of the outstanding capital stock of the corporation, at a tender offer price of P7.25 per share (The Philippine Star, Sept. 11, 2018).
“The listed status was considered as an important tool allowing Melco to raise funds in the Philippine public market, in order to provide capital for expansion and other business plans. However, Melco’s listed status in recent years has not contributed to its ability to raise funds despite considerable efforts and expenses being incurred to maintain its listed status,” Melco said in an e-mail reply to The Philippine Star. The reason for delisting is similar to the reason Travellers gave for unloading its public shares.
The attempt to make Melco private encountered resistance from some 2.1% public stockholders who spurned the tender offer, and the Melco petition for voluntary delisting of the company collapsed in November. By default, Melco Resorts slid below the required minimum public ownership. Thus the PSE warning in May for Melco to up its MPO to at least the 10% original (2011) requirement, and thence to the 20% November 2017 standard, while waiting for the 25% MPO order just given last week.
If Travellers and Melco argue against the MPO since, in their view, the minority public shareholders could be cumbersome to efficient and productive business management, the involuntary delisting proceedings initiated by the PSE against Calata Corp. (CAL) in July 2017 was meant to protect the public shareholders. It will be recalled that just after its listing in 2012, charges were filed against some individuals in Calata for alleged market manipulation (mb.com.ph, July 26, 2017).
Calata’s public ownership report to the SEC as of Oct. 4, 2017 showed the public as holders of 350.935 million CAL common shares, or 61.531%, according to columnist Emeterio SD Perez (The Manila Times, Oct. 13, 2017). Six directors of Calata owned 219.406 million CAL common shares, or 38.469%. Why were public stockholders never allowed to elect their nominees to the board of any listed company (when) they were portrayed as the controlling stockholders in a number of public ownership reports, Perez asked?
The PSE said it found that Calata had 29 violations of Section 13.1 of the PSE Disclosure Rules and 26 violations under Section 13.2. Under the Scale of Penalties, the fourth and succeeding violations of the PSE Disclosure Rules constitute grounds for delisting. A company that has once been delisted cannot apply for relisting within a period of five years from the time it was delisted. Directors and executive officers of a company that has been delisted are disqualified from becoming directors or executive officers of any company applying for listing within the same period counted from the time the application for delisting was approved.
In the midst of Calata’s damning disclosure and black-out violations (insider trading), listed seafood and aquaculture firm Millennium Global Holdings Inc. (MGHI) bought 2.5 billion new shares issued following Calata’s increase in authorized capital stock, giving MGHI 81% of the stocks and making it majority owner of Calata, which continues to function as a private entity.
So many questions come up from the SEC announcement mandating 25% public ownership of listed firms within five years. First of all, do we have to do what the “big boys” do, and stay abreast of the ASEAN in business and economics? Are we ready for this mandated 25% MPO, when listed firms are delisted involuntarily for non-compliance, and even voluntarily for claimed better ease of doing business? Is the mandated MPO helping business or slowing it down? Is it helping the minority retail investors, whose rights are not attended to, contrary to the motivation of the whole exercise of a mandated MPO giving these retail public investors the equal access to high-level investment opportunities?
Perhaps the economists in government should impose less intervention, and let the market and the economy grow, as it will, in the pull of the unstoppable global market momentum.
Amelia H.C. Ylagan is a Doctor of Business Administration from the University of the Philippines.
PHL telcos seen to sustain revenue growth this year
FITCH Ratings expects the two major telco companies in the Philippines to book mid to high single-digit revenue growth for full year 2019, amid stabilizing competition between the two players.
In a statement, Fitch projected continued revenue growth for Globe Telecom, Inc. and PLDT, Inc., although free cash flow may remain negative due to their capital spending in the second half.
The credit ratings agency sees the Philippine telcos spending P141 billion in capital expenditures in 2019, 56% higher year on year, as the companies expand their mobile data capacity and roll out their fixed-broadband network.
The roll out of the 5G network, however, is seen to be limited given it is still in the early stages of global adoption and deployment, especially in a country like the Philippines which is still dominated by the prepaid market.
Fitch cited how Globe’s 8% revenue growth in the first half outperformed that of PLDT’s, which rose 5%. This led to a 0.4% uptick in the former’s share in telecom-service revenue over the six-month period.
“Nevertheless, the return to growth for PLDT’s wireless revenue (up 6% year on year for the first half) underscores that a firmer recovery is underway for the country’s largest telecom operator,” Fitch said.
PLDT is seen to benefit from an acceleration of subscriber take-up in its fiber-broadband services, which has been affected by a regulatory ruling on outsourced services since mid-2018. The agency said this has stalled PLDT’s home-broadband subscribers in the fourth quarter of 2018, but has since returned to growth.
Meanwhile, Fitch said Globe’s service revenues will likely grow at a high single-digit pace because of its “larger post-paid subscriber base and continued market-share gains in mobile.”
PLDT’s service revenues are seen to grow at a slower pace at mid-single digits.
Amid the two companies’ expansion, the entry of the third telco Dito Telecommunity is seen to intensify competition moving forward.
“Competition in the mobile sector is greater than in fixed-line, and therefore, we believe diversification into fiber broadband is advantageous for fixed-mobile convergence and in capturing the long-term demand for fiber backhaul.”
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Arra B. Francia
LIPAD takes over operations of Clark airport
LUZON International Premier Airport Development Corp. (LIPAD) on Friday formally took over the operations and management of the Clark International Airport.
“I tell you LIPAD, paliparin ninyo ang paliparan na ito [flourish this airport]. Make it go, grow, and glow,” Transportation Secretary Arthur P. Tugade said during the turnover ceremony held at the New Passenger Terminal Building of the Clark International Airport.
LIPAD is the special purpose vehicle company formed by the North Luzon Airport Consortium (NLAC) composed of Filinvest Development Corp., JG Summit Holdings, Inc., Philippine Airport Ground Support Solutions, Inc., and Changi Airport Philippines (I) Pte. Ltd., which is a wholly-owned subsidiary of the Changi Airports International.
Formerly known as the North Luzon Airport Consortium, LIPAD was awarded the 25-year O&M contract for the Clark airport terminals in January. It will also develop commercial assets, operate and maintain facilities and fit-out of the new terminal.
Bi Yong Chungunco, chief executive officer of LIPAD, said four international airlines will start their operations at the Clark airport in the next few months, in addition to the 17 airlines.
Moreover, six food and beverage outlets will also operate inside the terminal soon.
“We are also in talks with the airline operators for the possible integration of the terminal fee in the airfares as part of our goal to provide a very seamless travel experience,” she said.
“We will continue towards expanding this network, connecting Clark to more domestic and international points, cementing its position as the premier gateway for Central and Northern Luzon…. We look forward to a close collaboration with DoTr (Department of Transportation), and BCDA (Bases Conversion and Development Authority) for the next 25 years,” she added.
Clark International Airport increased its number of passenger by 63% to 2.1 million passengers in the first half of the year. The airport handles 734 weekly flights from 17 airlines. It currently being developed as the alternative to the Ninoy Aquino International Airport (NAIA) in Pasay City. — Vincent Mariel P. Galang
De Lima co-accused arrested, claims he is police asset
AFTER two years on the run, one of Senator Leila M. De Lima’s co-accused on an illegal drug charge was captured on Friday by the National Bureau of Investigation (NBI) but claimed he was a police asset during the occurrence of the alleged crimes.
Joe Adrian T. Dera, who is also known as “Jad De Vera,” was arrested early Friday morning in Pampanga after remaining at large for two years. Mr. Dera did not surrender to authorities after the Muntinlupa Regional Trial Court (RTC) Branch 205 issued a warrant of arrest for him back in 2017 for violating the Comprehensive Dangerous Drugs Act of 2002.
“He is the only co-accused in the drug case filed against Senator Leila de Lima na hindi pa naaresto (who was not arrested yet),” NBI-Special Task Force (STF) Chief Gerald V. Geralde said during a briefing on Friday.
The NBI also denied that Mr. Dera is related to Ms. De Lima, after earlier reports said that he is the nephew of the detained senator.
“Wala kami na-gather na kamag anak siya (We did not gather any information that shows he is a relative),” said NBI Deputy Director Vicente de Guzman III during the same briefing.
NBI Director Ferdinand M. Lavin also dismissed Mr. Dera’s claims was working with the Philippine National Police (PNP) during at the time that the alleged offense by Ms. De Lima, who was then Secretary of the Department of Justice, happened.
“That’s what he claims but we cannot dwell on that, but as far as the investigation is concerned, it was testified that he has delivered these monies to then (Justice) Secretary De Lima,” he said
Mr. Dera’s legal counsel Raymond Lapad said that his client was really a police asset of the PNP and some of their evidence of this are documents that show his involvement with the PNP at the time.
“Ang position niya (his position) is that he was appointed as alpha or asset or agent by the PNP last Feb. 16. At that time I think De Lima was not anymore the secretary of justice, and we have the papers submitted to the DoJ and NBI confirming that fact that he was an agent, and there was an agreement and there was an oath of loyalty to comply with his duties to the PNP,” he said. — Gillian M. Cortez
12 arrested for investment scams
THE Securities and Exchange Commission (SEC), together with the National Bureau of Investigation (NBI), has arrested 12 people who are allegedly involved in investment scams.
In a statement issued Friday, the SEC said its Enforcement and Investor Protection Department (EIPD) and the NBI caught six people connected with SGP Dragon Trading Corp. and another six people under Requiza Poultry in separate entrapment operations in Quezon City this month.
They are now in the custody of the NBI for prosecutorial proceedings.
“There will be no letup in our fight against investment scams. As we remain firm in our commitment to clamp down fraudsters, we reiterate our advice to the public to exercise caution and discernment when offered an investment opportunity,” SEC Chairperson Emilio B. Aquino said in a statement.
Earlier this month, the commission issued an advisory against SGP Dragon for supposedly enticing the public to avail of purported foreign exchange market products for at least P1,000 in exchange for 1% to 2.5% in interest per day.
Under SGP Dragon’s scheme, “coaches” and “master traders” trade on behalf of investors, with live trading facilitated on its investment platform. The interest income may be withdrawn every 15 days following a lock-in period of 45 to 120 days, based on the package availed.
While SGP Dragon is a registered corporation, the commission noted that it is not authorized to offer, solicit, sell, or distribute any investment contracts or other forms of securities.
Meanwhile, the SEC also warned the public against Requiza Poultry, which was found to be promising investors 50% returns after a minimum investment of P3,500 for the purchase of 35 chicks. Investors in this scheme are made to wait 60 days to earn back their capital plus profit.
Like SGP Dragon, Requiza Poultry has no authority to solicit investments from the public. It is also not registered with the commission as a corporation or partnership.
The Securities Regulation Code states that people acting as salesmen, brokers, or agents of such investment scams may be held criminally liable with a fine of up to P5 million or imprisonment of up to 21 years or both. — Arra B. Francia
Defense Chief annoyed over presence of Chinese navy in PHL waters
DEFENSE Secretary Delfin N. Lorenzana on Friday expressed his annoyance over the continuous presence of Chinese warships in Philippine waters.
“Wala naman sila ginagawang masama na umaatake sa atin or whatever. Nakakainis lang dahil tubig natin at warships sila. Buti sana kung civilian, [pero] pinapatay pa nila yung identification system, so nakakainis lang (They are doing nothing wrong like attacking us or whatever. It’s just annoying because it is our water and their warships. It would be better if they were civilian, [but] they’re still turnign off the identification system, so it’s just annoying),” said Mr. Lorenzana during a chance interview with reporters at Camp Aguinaldo on Friday, Aug. 16.
The Armed Forces of the Philippines (AFP) earlier said that at least five Chinese warships had passed through the Sibutu Strait in Tawi-Tawi province in southern Philippines without notifying Philippine authorities.
He noted that the Philippine Navy allows the passage of foreign vessels along the Sibutu Strait as long as their automatic identification system is turned on.
“For as long as they do not shut off their AIS they can pass through without informing [us] because we allow passage there because it is international passageway,” said Mr. Lorenzana.
Mr. Lorenzana said that he is hoping that this matter will be discussed during President Rodrigo R. Duterte’s upcoming trip to China later this month.
“Sana ma-mention ito para matapos, irritant na kasi ito ngayon e (I hope this is mentioned so it can be finished, as it is an irritant now),” said the Defense chief.
For his part, AFP chief Gen. Benjamin R. Madrigal, Jr. said that they are doing their best to prevent any clashes between Philippine and Chinese ships.
“Naano naman natin ito, na itong mga bagay na ito to be able to prevent ’yung sinasabi nga ’yung, unintended. Halimbawa magkaroon ng unnecessary confrontations, mas maganda kung napagu-usapan ’yung mga coordinations like these at nagpapaalam para masiguro natin na hindi naman nava-violate ang ating territory (we consider these things to be able to prevent the unintended. For example, if there are unnecessary confrontations, it is best to discuss coordination like these and inform them so we can make sure our territory is not violated.),” said Mr. Madrigal in a chance interview with reporters.
He also called for respect of Philippine territory.
“Hindi lamang naman ’yung threat, kasama dyan ’yung respeto sa ating teritoryo, at respeto sa atin bilang kapwa bansa (It is not just the threat, included in this the the respect for our territory, and respect for use as a fellow nation) and all these had to be agreed through, of course, diplomatic arrangements,” said Mr. Madrigal.
On Thursday, Malacañang acknowledged that China is violating international law with the unauthorized entry of its warships into Philippine waters
Presidential spokesman Salvador S. Panelo said that he would discuss the issue with Chinese Ambassador Zhao Jianhua, who has invited him to dinner.
The United Nations tribunal in July 2016 ruled that China’s efforts to assert control over the South China Sea exceeded the law, rejecting its shared claims with Taiwan to more than 80% of the waterway.
China rejected the decision of the international court, and has continued with its island-building activities in areas also claimed by the Philippines, Vietnam, Brunei, Malaysia and Taiwan. — Vince Angelo C. Ferreras
PAO lawyers denounce anonymous report to Ombudsman
OVER A hundred lawyers under the Public Attorney’s Office (PAO) said that a recent report of PAO lawyers calling for the suspension of PAO Chief Persida V. Rueda-Acosta was part of a “demolition job” meant to malign the PAO.
This as the Office of the Ombudsman said in a statement release Friday that it is conducting a “preliminary investigation and administrative adjudication” against Ms. Acosta and forensics team chief Erwin Erfe “on corruption allegations within the agency including the controversial Dengvaxia vaccine issue.”
The statement quoted Ombudsman Samuel R. Martires as saying, “the corruption allegations against the high-ranking PAO officials will be judiciously scrutinized and the cases shall be resolved solely on the basis of the evidence presented by the parties.”
On Thursday, 107 PAO lawyers filed a “Manifesto (Re: Malicious Imputations against PAO Lawyers)” dismissing the claims made in an pleading sent to the Ombudsman on AUg. 8 asking for the preventive suspension of Ms. Acosta and Mr. Erfe for allegedly defrauding the government. The pleading was filed by persons who claimed they are public attorney’s under the Executive Support Staff, Field Operations and Statistics Service, and Legal Research Service departments of the PAO-Central Office, but who did not otherwise identify themselves.
The anonymous statement was an pleading related to the complaint filed in May by Wilfredo M. Garrido, Jr. against the Ms. Acosta and Mr. Erfe for falsification of public documents, malversation of public funds, illegal use of public funds, grave misconduct, serious dishonesty, and grave abuse of authority.
“The undersigned public attorneys herein CATEGORICALLY DENY the alleged subject anonymous manifestation that has become the subject of fake news. We did not write the subject manifestation, nay submitted the same to the Office of the Ombudsman,” the 107 PAO lawyers said in their manifesto.
The lawyers added that the claims made in the anonymous pleading were “fabricated” and that it was meant “to malign the PAO and other named officials therein, and prevent them from independently performing their duties.”
Both the Department of Justice (DoJ) and Malacañang declined to get involved in the complaint against the PAO Chief, adding that they will leave it up to Ombudsman Martires to further investigate the matter. — Gillian M. Cortez
Tourism industry earned P245 billion in first half
THE tourism industry earned some P245 billion during the first semester of 2019, according to the Department of Tourism (DoT).
The DoT on Friday reported that inbound tourism revenue reached P245 billion from January to June this year. The report comes after the DoT said earlier this week that 4,133,050 foreign tourists arrived in the Philippines last semester, 11.43% more than a year ago. That compares to a goal of 8.2 million for this year set under the National Tourism Development Plan 2016-2022.
“The corresponding total receipts from the six-month arrivals increased by 17.57% from the half-year gross revenues in 2018,” the DoT said in a statement Friday.
Revenues in June 2019 alone were an estimated P38 billion, 30.56% higher than that recorded in June 2018. Tourist spending per head increased 30.97% in June 2019 ($1,086.61 or P57,004.10) compared to June 2018.
The DoT also said that according to its visitor sample survey, this June the average tourist’s daily spend was $120.60, 28.64% more than the same month last year. Tourists also stayed 9.01 nights, up 1.81% compared to June 2018.
The DoT statement quoted Tourism Secretary Bernadette Romulo-Puyat as saying, “These economic numbers are exciting but the real purpose of why the government is working hard to push these numbers up year after year is for the Filipino people… At the end of the day, it is the number of lives changed for the better by tourism that would truly count.”
She said that “Tourism in 2018 was responsible for 5.4 million jobs…, contributing 12.7% or P22.2 trillion to the country’s Gross Domestic Product.” — Gillian M. Cortez