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MWSS says P3.29-B Angat tunnel project now operational

THE Metropolitan Waterworks and Sewerage System (MWSS) said its P3.29-billion Angat Water Transmission Improvement Project (AWTIP) has been commissioned and is ready to complement the agency’s efforts in securing water supply for Metro Manila.

In a statement Monday, the MWSS Corporate Office said that AWTIP, also known as Tunnel 4, runs for 6.3 kilometers and has a diameter of four meters. It is designed to accommodate 19 cubic meters per second of raw water from Angat Dam.

The MWSS said the construction of the tunnel began in June 2016 and was finished in June 2020, three months earlier than its original completion date of September.

The MWSS said the project reduces the risk of a partial or total disruption of water supply in Metro Manila.

“It will provide redundancy and enable the system’s full design capacity to be restored by allowing the upstream tunnels and downstream aqueducts to be sequentially closed, inspected, and rehabilitated or decommissioned,” the MWSS said.

The MWSS said the completed permanent works include intake structure at Ipo reservoir; a new transition basin at Bigte; slope protection works at Ipo Dam; a channel connecting the Tunnel 4 outlet portal to the existing aqueduct; interconnection of the new transition basis at Bigte to the existing Transition Basin No. 3; and modifications to the existing transition basin No. 3 at Bigte.

MWSS Administrator Emmanuel B. Salamat said the completion of the tunnel project clears the way for the rehabilitation of the transmission system’s main components that are 75 years old and are in poor condition.

“These factors could seriously interrupt Metro Manila’s water supply. Minor delays due to the enhanced community quarantine (ECQ) restrictions thwarted our best efforts to place on stream the additional 19 cubic meters per second (equivalent to 1,600 million liters per day) into the delivery system,” Mr. Salamat said.

Mr. Salamat said Tunnel 4 was partially operated in April to help Metro Manila’s water supply problem during the summer months.

Tunnel 4 was built with funding from the Asian Development Bank. — Revin Mikhael D. Ochave

BPO return to office determined by productivity

INTERNET connection quality will determine work-from-home productivity, while data protection needs will influence when outsourcing firms fully return to on-site work, industry officials said.

The transition back to on-site work could be measured in months instead of weeks for companies that remain productive while employees work from home, Information Technology and Business Process Association of the Philippines (IBPAP) Chief Executive Officer Rey E. Untal said in an online interview in late June.

Companies will also assign at least some employees to work from home to maintain physical distancing measures on site.

Some outsourcing companies may accelerate the move back to their offices, especially for areas with poor internet infrastructure.

More employees are able to return to work in areas with more relaxed lockdowns that will allow them to use public transport. In some of these areas, home-based internet infrastructure is also poor, accelerating the shift back to offices.

“There’s no cookie-cutter answer. It varies from company to company,” Mr. Untal said.

As of late June, 81% of outsourcing employees in the Philippines were deemed productive, with 59% working from home and 22% on-site.

At the beginning of the lockdown in March, 40% of employees were working from home while 10% were working on-site. This increased to 58% work from home and 15% on-site by May.

Some companies are shifting to some degree of long-term home-based work.

Singapore-based outsourcing company Everise Philippines announced last month that it was hiring 2,000 Filipinos to work from home.

Everise Chief Executive Officer Sudhir Agarwal said in an e-mail that 50% of its entire workforce will be working from home for the foreseeable future.

This model has an effect on the recruitment process, where prospective employees with reliable bandwidth connection have the upper hand.

“For new hires we test speeds and we have a requirement pre-screening to hire people that meet minimum bandwidth requirements,” Mr. Agarwal said.

The company had spent the last two years developing a work at home and desktop software solution that its workforce transitioned to during the lockdown. Everise moved 90% of its global workforce to home-based operations at the start of the stricter lockdown in March.

“We were in the fortunate position to have the foresight to create a work at home business model. Luckily, we could transition quickly to that model, and to scale up from that model as well, because our business increased after the pandemic started,” Mr. Agarwal said.

“Not all BPOs have been as fortunate. Many of them will have to work hard to put in place a business model that we had already spent two years developing.”

Teleperformance Philippines said 20,000 of its 47,000 employees were working from home at the end of June.

Teleperformance Chief Operating Officer Mike Lytle in an e-mail said that the company is retaining non-voice and lower-bandwidth projects for home-based operations, while “sensitive” projects remain on site.

IBM Philippines Government and Regulatory Affairs Executive Princess Lou M. Ascalon in a webinar in June said outsourcing contracts did not sufficiently cover data protection measures for the shift to work-from-home operations during the lockdown. Some clients have asked for noise-proof workspaces in employee homes to reduce interference.

Outsourcing companies are using data security technologies, with Teleperformance using cloud storage, multi-factor authentication, and other controls.

For now, both Teleperformance and Everise are looking at a “blended model” of both home and office setups.

IBPAP’s Mr. Untal has said that there are limits to what companies can do in a work-from-home setup because of infrastructure and security considerations. He said that the industry is working with government agencies to improve employee transportation and to increase their productivity as the lockdown eases. — Jenina P. Ibañez

Energy consumption reporting deadline moved to April 2021 — DoE

THE Department of Energy (DoE) further extended the deadline for establishments to submit their power consumption reports to mid-April 2021.

The department’s Energy Utilization Management Bureau (EUMB) provided more time for so-called designated establishments from the transport, commercial and industrial sectors to submit their annual energy consumption report due to the impact of the global coronavirus disease 2019 (COVID-19) pandemic on their operations.

Designated establishments, which consume at least 100-megawatt-hours or 100,000-kilowatt-hours of energy, are required by Republic Act No. 11285, or the Energy Efficiency and Conservation Act, to file their annual Energy Efficiency and Conservation reports every April 15.

Due to the strict lockdown imposed in mid-March, the EUMB initially extended the deadline to June 30.

The DoE is encouraging designated establishments to file their reports “as soon as possible,” despite the additional grace period. — Adam J. Ang

NIA launches construction of P893-M dam in Nueva Ecija

THE National Irrigation Administration (NIA) said it launched the construction of the P893-million Balbalungao Earthfill Dam in Lupao, Nueva Ecija.

NIA Administrator Ricardo R. Visaya led the groundbreaking and capsule laying ceremony for the earthfill dam earlier this month. The project is known as the Balbalungao Small Reservoir Irrigation Project.

The irrigation project serves 840 hectares and 562 farmers and their families in the Lupao barangays of Balbalungao, San Isidro, Salvacion, Sto. Niño, and Mapampang.

Mr. Visaya said the reservoir will affect 38.44 hectares of land and will not disturb residential areas.

Mr. Visaya said that once the construction of the dam is finished, it will also supply power.

“There will be a hydropower component to be installed before the irrigation outlet of the dam,” Mr. Visaya said. — Revin Mikhael D. Ochave

Business registration in the new normal

Since the World Health Organization classified COVID-19 as a pandemic on March 11, “the new normal” became the go-to term for describing the new reality. Throughout history, we survived calamities because of our ability to adapt to changing times. With our mobility limited by social distancing protocols, we see a sudden business shift from physical stores to online platforms. Aspiring entrepreneurs taking advantage of new-normal opportunities might ask, “Can I start a new business during the pandemic?”

Coincidentally, Republic Act (RA) No. 11032, also known as the Ease of Doing Business and Efficient Government Delivery Act of 2018 (EDB Law), was approved on May 28, 2018. RA No. 11032 amends RA No. 9485 or the Anti-Red Tape Act of 2007. The EDB Law is third in the current administration’s 10-point socioeconomic agenda. Since RA No. 11032 was enacted, our country’s ranking in the World Bank Doing Business report has risen from 124th in 2018 to 95th place in 2019. Now that we are in a state of a public health emergency, ease of doing business will be beneficial for new and aspiring entrepreneurs.

One of the EDB Law’s salient features is the shortened timeline for transactions with the government. Under the law, simple transactions should take no longer than three working days. Complex transactions should take no longer than seven working days, and highly technical applications should take no more than 20 days. It is important to note that the Anti-Red Tape Authority (ARTA) recently approved Memorandum Circular (MC) No. 2020-03-A, which provides a suspension to the mandated processing times of 3-7-20 working days in areas placed under enhanced community quarantine.

While it is too early to say that government bureaucracy is a thing of the past, we can see improvements and initiatives to ease the conduct of business. This is especially true now that the Bureau of Internal Revenue (BIR), in Revenue Memorandum Circular (RMC) 60-2020, has reminded business owners and online sellers to ensure that their businesses are registered or that their registrations are updated with the BIR. Under RMC No. 60-2020, non-registered business owners have until July 31 to register or update their records. Failure to register by that date will result in penalties for late registration.

Such a pronouncement from the BIR startled new business owners and online sellers, particularly those who are unregistered or unaware of business registration processes. Fortunately, new business owners can register online with the appropriate government agencies.

SOLE PROPRIETORSHIPS
Sole proprietors can register their business name online through the Department of Trade and Industry’s (DTI’s) Business Name Registration System in compliance with Administrative Order No. 18-07, which implements RA No. 3883, or the Business Name Law. Registration fees vary depending on the territorial scope of the business.

CORPORATIONS AND PARTNERSHIPS
Corporations and partnerships can initially register by creating an account with the Securities and Exchange Commission’s (SEC’s) Company Registration System (CRS). A valid e-mail address is required. In the CRS, a person can register and upload the necessary documents for SEC review and approval. In compliance with the EDB Law, the SEC issued MC No. 16 -2020, which provides alternative ways to authenticate the Articles of Incorporation (AoI) when registering new domestic corporations.

Under MC No. 16-2020, the new corporation has two options. One, it can submit its AoI with a Certificate of Authentication signed by all incorporators on the SEC-prescribed form. Through this mode, both the AoI and the Certificate of Authentication do not have to be notarized or consularized. Two, the incorporators can authenticate traditionally by acknowledging the AoI before a notary public.

REGISTRATION WITH THE BIR
After registering with the DTI or the SEC, the next process is registering with the tax authority, the BIR. In RMC No. 57-2020, the BIR revised the checklist of documentary requirements for registering with the Bureau. One of the significant changes is the removal of the mayor’s permit as a mandatory requirement.

The Tax Code, as amended, requires every person subject to any internal revenue tax to register with the BIR Revenue District Office before the commencement of business. Aside from being made liable for deficiency taxes and penalties, taxpayers who fail to register with the BIR are subject to fines of between P5,000 and P20,000, and imprisonment of between six months and two years.

REGISTRATION WITH THE LOCAL GOVERNMENT
While a mayor’s permit is no longer a requirement for BIR registration, it does not mean that registering with the local government unit (LGU) is unnecessary. The Constitution grants LGUs, subject to the guidelines and limitations set by Congress, the right to create their own source of revenue and to levy taxes, fees, and charges.

Although registering with the LGU may still involve manually filing with the city or municipal hall, the EDB Law has promising changes.

One of the EDB law’s features on local government business registration is the establishment of a Business One-stop Shop (BOSS) — Negosyo Center. It is a single location, website, or convergence point for national government agencies, LGUs, and the private sector to promote ease of doing business and to ensure access to government services within a jurisdiction. Within three years of the effectivity of the EDB Law, all cities and municipalities must automate their business permitting and licensing system or set up an electronic BOSS to facilitate a more efficient business registration process.

Under the EDB Law, the new business owner no longer needs to go to the barangay hall, since barangay clearances and permits for doing business shall be applied to, issued by, and collected at the city or municipality. The fees collected for barangay clearance and permits are remitted to the respective barangays.

The Ease of Doing Business Act of 2018 is an important piece of legislation, especially now that we are in the middle of a pandemic. While it is within the State’s power to compel citizens to register their businesses to contribute to nation-building by paying taxes, the State has a concomitant obligation to promote integrity, accountability, proper management of public affairs in government services, and the prevention of graft and corruption in government.

Can I start a new business during a pandemic? The answer is a definite yes — provided that you register.

Let’s Talk Tax is a weekly newspaper column of P&A Grant Thornton that aims to keep the public informed of various developments in taxation. This article is not intended to be a substitute for competent professional advice.

Lorenzo V. Matibag is an associate of the Tax Advisory & Compliance division of P&A Grant Thornton, the Philippine member firm of Grant Thornton International Ltd.

pagrantthornton@ph.gt.com

Making HR relevant

During the past three months, the faculty and administration of De La Salle University have been preparing to transition to e-learning given the ongoing pandemic. Preparation meant learning to optimize our learning management system and understanding the nuances of distance learning. Preparation also meant ensuring that course content, in my case Strategic Human Resource Management, is relevant and takes into account the implications of this pandemic.

HR must be one of the busiest units for most businesses, not just now but since the lockdown was announced. Organizations with existing business continuity plans, work-from-home (WFH) arrangements, and counseling and mental health programs were in a better position to respond. However, many organizations were caught by surprise, and this was and still is a huge HR challenge. Of course, other units in the organization have their roles to play. However, because of the impact on employees, HR has a major role.

The HR group is expected to play a significant role in setting up WFH arrangements. Aside from identifying which types of work can be shifted to WFH, HR needs to guide both managers and employees on how to manage this environment.

On top of being worried about health and safety, employees are concerned about job security. Almost all employers paid the salaries of employees during the first month of the lockdown. However, in the second month, as the lockdown was extended and the business implications of the pandemic became clearer, some employers resulted in commuting leave credits while others gave advances to be offset on an undefined date. Sometimes, they would do these without explaining to employees what they were doing and why they were doing it. HR plays a critical role in supporting top management by informing employees about what the company is doing, addressing their concerns, and checking their wellbeing because not everyone may be coping well with the stress. HR also has to keep abreast of and comply with guidelines issued by the government through the Inter-Agency Task Force on COVID-19 related to employment and occupational health and safety.

For organizations that deliver essential services, HR implements health and safety protocols, possibly extends work hours, arranges transportation and accommodation, and helps employees cope with stress.

The response to the situation includes a shift to online platforms. For many employees, this requires acquiring new skills in a short time. In coordination with the IT people, HR arranges online training on how to work online.

As businesses are slowly opening up, HR is busy scheduling and rationalizing staff rotations, arranging employee shuttles or even accommodations, working with the administration group to ensure that COVID-19-related occupational health and safety standards are implemented, arranging for COVID-19 testing, and dealing with arrangements for regular employees who are deemed to be part of the vulnerable population.

All these are on the assumption that no one in the company and any of the employees’ families has tested positive for or died of COVID-19.

Business owners and higher management of companies severely affected by the pandemic may be thinking of or may already be implementing severe measures such as workforce reduction, temporary suspension of operations, or even cessation of operations. These steps involve HR as well. More than accomplishing the paperwork required to comply with regulations, HR supports management in communicating with employees, and implements the process as smoothly as possible. Ideally, HR should also be looking for ways to help affected employees by providing them with complete and accurate documentation about their employment, and assisting them in finding other jobs or helping them identify alternative livelihood opportunities.

For organizations that continue to operate, HR should be looking at consolidating the lessons learned and preparing for the new normal. Organizations need to recalibrate their systems to operate effectively and efficiently in this new environment, and to continue to deal with the impact of the pandemic not only on the organization but also on its stakeholders. Aside from systems, HR should look at how this new environment is affecting the organization’s culture and should continue to monitor employees’ mental well-being.

If HR plays only an administrative role or is unable to respond appropriately, the response-ability shifts to higher management, who will now need to direct and lead these efforts on top of addressing sustainability issues. This highlights the important role that HR plays in organizations and the importance of having the right people for the job, and that includes people in HR.

As we begin our trimester using e-learning, we have to adjust our content to include the implications of this pandemic to help students acquire knowledge and skills to help them navigate in this new environment, support them as they adjust to this reality, and equip them for the future.

 

Dr. Mary Margaret Que teaches in the graduate programs of the Ramon V. Del Rosario College of Business of De La Salle University. She is also the managing director of ExeQ Consulting Service.

gettque@yahoo.com

Agripreneurs: Experts walk their talk

First of Two Parts

Farming is both a challenging and rewarding endeavor. It involves many factors — land, labor, financing, inputs (planting materials, fertilizers, pesticides), farm machinery and equipment, utilities (water, power), handling, packaging, logistics, market, knowledge of supply and demand in relation to the market, the peace and order situation, the weather, and now, even the pandemic. As a result, success can never be predicted.

But despite that, farming remains an attractive investment option. Many have gone into it — some succeeded, some failed. There are lessons to be learned from those who have tried, regardless of success or failure.

This article provides insights from selected individuals who have ventured into farming (agripreneurs) under varying investments, experiences, farm sizes, technologies, and time devoted to farming.

What makes the stories interesting is that they come from actual experiences of the agricultural experts themselves who have, so to speak, walked their talk. Almost all are members of the Coalition for Agriculture Modernization in the Philippines, Inc. (CAMP), a SEC-registered non-stock and non-profit non-government organization with volunteer members “driven by a patriotic call to contribute their time, expertise and/or resources to champion agriculture modernization in the country.”

START-UP PAINS
Leo Gonzales is experimenting on the integration of a one-hectare vegetable production with his existing banana and papaya agribusiness ventures on his 6.5 ha farm in Calauan, Laguna. He is not a CAMP member but supports their advocacies.

Leo is having a lot of difficulties and, after two months, was able to develop only one third of his area.

There are several issues. Labor is so inefficient, scarce, and expensive. With the heat, labor can only work effectively at five hours a day. Small machines are needed for land preparation and inter-tillage cultivation but there are no service providers. If there are any, they are the large four-wheel tractors that cost P5,000 per hectare per passing. With a need for at least two passing before the land is ready for planting with vegetables, the cost is expensive. Add to that the costs of planting materials (seedlings), fertilizer, plastic mulching materials, etc.

Timing of sequential planting is also a challenge which should be synchronized with market demand. Such is difficult to do, especially if one relies on the wet market as an outlet. Fortunately, he has a captive market due to the enhanced community quarantine. People are forced-to-good to buy his fresh produce because they cannot go out to the market.

PERENNIALS
Pons Batugal recommends planting perennial crops (such as fruits), especially for retirees. He says they can be planted once and visited one to two times a year to check. The third visit would be at harvest time.

Tropical fruits are very profitable given the best varieties and the right strategies. For example, he makes rambutan flower in February and sells the fruit in April for P75/kg. Laguna and Mindanao rambutans flower in June-July and are sold at P25/kg in September. Other perennials which produce high-value products will do as well.

The biggest costs are weeding and fertilizers. But if the crops are grown organically, the two expensive operations would be practically nil.

Mr. Batugal also leads the Farmers Community Development Foundation International. All the farms under the Foundation and his farms are profitable. Their secret — they strategize and use doable, affordable, and sustainable science-based technologies. They always start small and then scale up. The most critical is to initiate action and to do it well.

COCONUT AND MORE
Pablito Villegas was making about 15% to 20% returns per harvest season on coconut since 2003, that is, if there were no typhoons or droughts and pests, like cocolisap and other diseases. He was concerned though that his farm hands continued to live in poverty. So, he shifted to welfare farming wherein he gave his farm hands free use of a portion of his land with all its produce and harvest. He just gets his harvest from coconuts and other long-term crops, like banana, dragon fruit, guyabano, pomelo, mango, cacao and coffee.

His farmhands also receive an additional harvest share of 10% to 15% of sales while paying them maintenance labor wages of P250-P300 per day for contract labor (pakyaw basis), plus free coconuts and bananas and fruits for their home consumption.

Further, through the cooperative which he formed, he also gave the four farmhand families free homes, a motorcycle, two hauling vehicles and a tricycle under their direct maintenance.

In turn, the coop uses them as builders or labor contractors in transforming the organic farms into an eco-tourism farm. The farmhands are now agripreneurs-builders and labor contractors and no longer farm laborers. They have better lives, enjoy good health and are able to send their children to school.

LIVESTOCK AND CROP FARMING
Another expert, Dr. Emil Javier, has a farm in Calauan and Bay, Laguna. He has had experience in raising an extensive array of agricultural products: livestock, fish, and crops — grains, fruits and vegetables.

He made money in almost all of his ventures, except in melons. To his surprise, pechay was the most profitable.

Theft was a recurring problem in the place. But the market is the most problematic area. To bring his vegetables to San Pablo, he has to hire two tricycles at a cost of P1/kg of vegetable (or about P300 per tricycle per trip). The price differential between farm gate and San Pablo was P4-P14/kg, depending on the product and time of the year. He also took the risk of planting off-season.

To be continued.

This article reflects the personal opinion of the author and does not reflect the official stand of the Management Association of the Philippines or the MAP.

Rolando T. Dy is the Co-Vice Chair of the MAP AgriBusiness Committee, and the Executive Director of the Center for Food and AgriBusiness of the University of Asia & the Pacific.

map@map.org.ph

rdyster@gmail.com

http://map.org.ph

A ridiculous requirement of the Insurance Commission

When I advised the insurance company with which my house has been insured for years to renew the cover, I was told to provide them personal information before they issue me a new policy. I demanded an explanation of the unusual requirement. In response, the company sent me the letter below.

“Pursuant to Insurance Commission Circular Letter No. 45 2018, Anti-Money Laundering and Combating the Financing of Terrorism Guidelines for Insurance Commission Regulated Industries, (as authorized under Republic Act 9160, Anti-Money Laundering Act of 2001), all insurance companies are required to collect the following personal information from its clients. Section 24. Minimum Customer Information and Identification Documents when Conducting Customer Due Diligence.

1. Name of customer;

2. Date and place of birth;

3. Name of beneficial owner’ if applicable;

4. Name of beneficiary;

5. Present address;

6. Permanent address;

7. Contact number or information;

8. Nationality;

9. Specimen signature or biometrics of the customer;

10. Proof of identification and identification number;

11. Nature of work and name of employer or nature of self-employment /business if applicable;

12. Source of funds or property; and

13. TIN, SS or GSIS number, if applicable.”

To get my house re-insured, I sent in the information required by the insurance company. I wondered, however, why a person insuring his property could be a potential money launderer as to be required to provide the information above.

Money laundering is generally defined as the illegal process of making large amounts of money generated by a criminal activity, such as drug trafficking or terrorist funding, appear to have come from a legitimate source. The money from the criminal activity is considered dirty, and the process “launders” it to make it look clean.

Dealing in large amounts of illegal cash is risky. For its safety, criminals deposit the money in legitimate financial institutions like banks. But they have to make the money appear to have come from legitimate sources. To do so, three basic steps have to be taken. These are:

1. Placement or movement. This step hides the connection of the funds to the illegal activity by placing the “dirty money” into the legitimate financial system.

2. Layering or disguise. This conceals the source of the money through a series of transactions and bookkeeping tricks, thus obscuring the money audit trail.

3. Integration or return. The “laundered” money is withdrawn from the legitimate financial system and placed back into the economy so that it would look like a legitimate business transaction.

Money launderers usually use a legitimate, cash-based business — a restaurant, a trading company, or an art gallery — as the source of funds. Such establishments are called “fronts.” To disguise the illegally generated funds, the owner inflates the cash revenue of the establishment, the tax payable on the overblown “gross sales” considered part of the cost of the illegal operations.

The “cash revenue” of the establishment is placed in a financial institution in the name of the establishment. Having been “laundered” by the institution, the funds are withdrawn for use in criminal activity.

A bank is a common medium in laundering money. That is why banks are required to report large cash transactions as they could be conduits for money laundering.

This is the reason I find ridiculous the requirement of the Insurance Commission to apply Republic Act 9160, known as The Anti-Money Laundering Act of 2001, to general insurance companies as well.

The money given to the general insurance company by the owner of the property insured is not a deposit. It is in payment of a risk the insurance company assumes. Ownership of the money is transferred to the insurance company. The policyholder cannot layer the funds through a series of transactions and bookkeeping tricks as the funds are out of his control. Besides, the sum (the premium) involved is small change to a money launderer, not the kind of amount he would normally deal with.

I asked a friend who has been in the general insurance business for 60 years if there are ways a general insurance company can serve as a conduit for money laundering. “You can burn down your house. The money you collect from the insurer is considered ‘clean’ as it is legitimate compensation for the loss of your valuable property,” said he. I inferred from his smile and shrug of his shoulders that he considered the idea stupid.

If a money launderer had that much money to build or buy a house whose ruin could mean an indemnification of millions of pesos, he would have had the money laundered in a bank instead of building or buying a house only to burn it down to be able to be compensated a huge sum of money. If he burned down a business establishment, he would lose the “front” for his illegal source of funds. He also risks being found out as responsible for the deliberate destruction of the property, which finding would not only leave him without compensation but would get him into big trouble.

Just in case there are ways by which a general insurance company can be used as a conduit for money laundering that I do not know of, I read up on the subject. I came across an article written by the Insurance Commissioner Dennis Funa. He gave as an example the filing of a claim (demanding indemnification) for valuable property lost.

But as I have shown above, such a scheme is unlikely to be pulled off by a money launderer. In fact, Mr. Funa himself wrote that the risk of money laundering in general insurance is low.

Just recently, my daughter, a graphics designer who works from home, was required to provide the same information specified in the letter above before her personal accident policy would be renewed. I cannot imagine how her PA insurance can be the instrument of money laundering. To be able to collect a significant amount of money from the insurer, the same general insurance company my house is insured with, my daughter has to cause serious injury upon herself. That is much more unlikely to happen than burning down one’s house or business establishment to collect the sum insured.

I maintain, it is ridiculous of the Insurance Commission to require all insurance companies to collect from all their clients a set of personal information for purposes of ascertaining that the clients are not engaged in money laundering.

 

Oscar P. Lagman, Jr. is a retired corporate executive, business consultant, and management professor. He has been a politicized citizen since his college days in the late 1950s.

Xintillating X-deal

By Marian Pastor Roces

THE People’s Republic of China (PROC) under Xi Jinping is not the first country to invade the Philippines, of course.

Each invasion had a different compelling logic. Different technologies of aggression.

Spanish conquest was driven by a triumphalist Islamophobia and expansionism over little-known planetary space. Three hundred years later, brash, newly minted American imperialism re-tooled racism to justify conquest with a democratizing imperative.

Both conquests had evangelical missions: the harvest of souls for, in turn, Christianity and liberal democracy.

Japan had no need to rationalize its occupation of Southeast Asia. It modernized itself by joining global war, as did the United States. But, fighting a kind of Japanese jihad serving a divine emperor, they were compelled differently from the Americans.

The PROC, on the other hand, invaded Tibet and occupies Xinjiang with a cold Sinification project. These conquered peoples are obliged to transform themselves into likenesses of the Modern Han Man, who surrender civil liberties for the permission to build wealth.

Chinese imperialism of the present vintage serves the same territorial thrust of bygone imperialisms. This time, however, invading armies seem superfluous.

No less brutal, trolls replaced the conquering hordes. Wielding virtual blades and throwing incendiaries, they tear into systems of truth. Whatever obstructs PROC interests are routed.

The weapons are outsized loans and consequent debt traps; the promised tourist arrivals by the millions, that can be withdrawn to instantly cripple tourism momentum; magically materializing infrastructure. Private PROC vessels ram Filipino boats, and leave crews for dead at sea, in proxy military provocations.

Online gaming staff transplanted to the Philippines comprise colonial resettlement. Paying bribes instead of proper taxes on the scale of billions, these POGO operations replicate, today, an old and apparently un-exhausted idea of colonizer privilege.

PROC territorial expansion is no longer a debatable discussion point. Given the PROC military facilities built on islands within the country’s Exclusive Economic Zone at the West Philippine Sea, Philippine sovereignty is seriously in question.

And while techniques of annexation changed in the 21st century, the PROC’s imperial spirit remains as Medieval as its dynastic forerunners. Its logic is extractive: sands, trace elements, metals, contraband rare species of fish, echinozoa, molluscs, and small mammals; indeed the entire biomass of the Sulu-Sulawesi Marine Ecoregion.

Impunity is pervasive in the operations Chinese companies let loose in the Philippines. Their rapacious activities can trigger the collapse of ecosystems. In one vessel alone, caught by the Philippine Coast Guard, was found 400 tons of frozen pangolins, the rare mammal whose scales are medicine in China. The haul is not unusual for this animal and other endangered species.

Destruction at the atolls claimed by the PROC in the West Philippine Sea includes crushing hundreds of mature giant clams, Tridacna gigas, which scientists and environmentalists seeded decades ago to rescue the species from extinction.

Entities proxying for the PROC are advancing its interests in the vital Philippine sectors: water supply dam construction, telecommunications, transportation, energy, tourism, road-building, shipping, real estate, and, most insidiously, politics-as-business.

What Xintillating xchange compels the Filipino leadership to welcome de facto invasion? At the very moment that President Xi Jinping leads the PROC in revving up the momentum of its empire-building, are there benefits to being a vassal state?

President Duterte thinks so. He says as much. The principal advantage, according to his dark humor, is not being dead. From Chinese military attack. Either death or rape, he insists. War or vassalage.

Glossing over the feisty resistance of the dozen-some countries with border disputes with PROC, the President keeps to his either/or view of foreign relations and is all but saying: might as well enjoy the rape. The logic is not incompatible with his misogynist’s attitude to actual rape.

Meanwhile, the stay in power of the President and his political heirs is at least in part guaranteed by Xi’s support. Under Xi, the PROC is impatient for single superpower status, and will not camouflage its moves with niceties. PROC global ascendance is performed with no apologies for human rights abuses, environmental destruction, and leadership in cyberwarfare.

Like President Duterte but on a far larger scale, Xi is himself a princeling. Fifth-generation leader (counting from Mao Zedong’ 19th-century-born generation), Xi is among the sons of the Deng Xiao Ping era, the late 20th century, third-generation leaders who relaxed social controls to achieve global economic success.

Xi, removed by 50 years from the horrors of the Cultural Revolution, has of late shown an inclination towards a Mao Zedong ideological revival, and Cultural Revolution revisionism in line with references to it as a “struggle style Rectification Movement.” This rectification justifies the agony China went through in the 1970s.

In both Xi and Duterte, therefore, vintage 1970s authoritarianism trumps the democratizing developments that transpired in either country from the 1980s to the turn of the 21st century.

Xi channels Mao, albeit reformatted for the 21st century; Duterte, Marcos.

Xi and Duterte are resurrecting the centralizing imperatives of the Cold War but without ideological overdrive. The accommodation between the two men, although of course unequal, pivots on a common cultural bent for escalating the cult status around their persons.

Both see development as autocratic rehabilitation. Dissent is tamped down as a matter of course.

However asymmetrical their power relation, President Duterte assumes the role of a Carrie Lam, Hong Kong’s Chief Executive. Like Lam, the Philippine President (or Proconsul) presides over a restive population that takes pride in a history of anti-authoritarian expression.

Duterte and Lam both presided over the enactment of security laws that are nearly identical, at nearly the same time.

The Philippine Anti-Terror Law and Hong Kong’s National Security Law, in equal measure draconian, makes the best sense — and of course scary reading — as a Greater China consolidation episode. The scintillating exchange of a pliant Philippines that President Duterte appears to have made with Xi’s PROC, is for the scintillating prize of cult figure status, perpetrated.

 

Marian Pastor Roces is a cultural theorist, critic, and independent curator.

Even without a crowd, F1 happy to race again

Mercedes’ Valtteri Bottas wins Austrian Grand Prix

MCLAREN’s Lando Norris felt the absence of cheering fans more than most as the Briton celebrated his first Formula One podium finish in front of empty grandstands at Austria’s Red Bull Ring on Sunday.

The COVID-19 pandemic had forced the sport to go behind closed doors for the first time to get the much-delayed season started.

“I think we can all be happy we’re here racing and procedures that are put in place are pretty bulletproof… but it’s a bit different for me,” said the 20-year-old.

“These guys are used to being on the podium quite a bit (but) for me it’s my first time,” added Norris, third behind Mercedes’ race winner Valtteri Bottas and Ferrari’s Charles Leclerc.

“And I think something that makes it so special is always having the crowds there, celebrating there with you, whether they are always your fans or not. It just makes up the atmosphere so much and it adds a lot of excitement.”

The stands at Red Bull’s home circuit have been filled in recent years with thousands of orange-shirted Dutch fans making the trip to cheer on their idol Max Verstappen, winner in 2018 and 2019.

The nearby fields, now with cows grazing in them, are normally campsites for race fans, reverberating with music and the smoke of barbecues.

“I know there are many loyal fans to me watching at home and I know the most important people to me, my family, they’re watching, they’re supporting and they’re living in the moment with me,” said Bottas.

“No doubt we’re lacking a bit of atmosphere — but it is what it is. Better to be racing like this than not racing at all.”

Leclerc, who grew up watching Ferraris race around his native Monaco, said it had been a strange weekend — and one that is set to continue with Formula One’s European races all likely to be without spectators.

“We are lacking the passion of the fans, which is why I love the sport so much, to see the passion of people that are watching you,” he said.

“I actually look in the grandstands during the race. Obviously not today, because there was not much to look at, but yeah, I miss this.

“The podium, normally there’s cheers, people yelling, this time it was not that way, but it’s like this for now and it’s the best we can do.” — Reuters

Barangay Ginebra confident of ‘weapons’ available when league action resumes

By Michael Angelo S. Murillo, Senior Reporter

SURPRISED by the decision of big man Greg Slaughter to “take a break” from the Philippine Basketball Association after helping the Barangay Ginebra San Miguel Kings to the Governors’ Cup title early this year, Coach Tim Cone said the team is still in steady form and that they are confident of the talents they have on hand when the league resumes from the forced hiatus because of the coronavirus disease 2019 (COVID-19) pandemic.

Recently graced Tiebreaker Vods’ Coaches Unfiltered podcast, the PBA’s winningest coach said the decision of Mr. Slaughter to leave the team would have an impact on how the team positions its attack come league resumption but they nonetheless believe they could make the necessary adjustments.

“You know, we still have a lot of weapons,” said Mr. Cone when asked how things would be with the future of Mr. Slaughter, 31, with the team uncertain.

The Barangay Ginebra big man in February announced that he was to take a break. With his contract having expired at the end of last season, he said he would grab the opportunity to step back and work on different aspects of himself.

Interestingly, Mr. Slaughter’s decision came amid talks that he was to be shipped to the Northport Batang Pier for Christian Standhardinger.

“Gregzilla” is currently in the United States where he is reportedly working on his game in the hopes of landing a spot in the NBA G League.

Without Mr. Slaughter, the Kings would turn to its core of veteran players to lead the way with ample support from its young guys, Mr. Cone said.

“We have Japeth (Aguilar), we have Stanley (Pringle), Stanley is somebody who is still very much exploring how to best use his talent and where he fits. We only have him for a conference and a half so there’s a lot still to find out about him, and, of course, LA (Tenorio) and Joe (Devance), you know the whole crew is there,” he said.

“We feel very good about our young guys, some of our younger veterans in Aljon Mariano because he’s just going to continue to improve and be an impact player for us eventually. Of course Art Dela Cruz as well and then our young rookies, we have a lot of fate in Arvin Tolentino, I really like Arvin’s game, me personally. It’s just a matter of whether we could get him to our culture and get him turned on playing how we wanted him to play… We have other options,” Mr. Cone added of his team, which also has Scottie Thompson, Jared Dillinger, Jeff Chan and Mark Caguioa in the roster.

The last time the Kings were seen on the PBA floor they were celebrating their 12th PBA title after defeating the Meralco Bolts, 4-1, in their best-of-seven Governors’ Cup final series.

And winning championships is something the team wants to continue experiencing, along with showing steady improvement collectively, Mr. Cone said.

“Number one it’s never about winning a championship, especially in the PBA where you have the next conference coming quickly. It’s not about winning a championship, so we never talk about winning a championship, it’s always about winning championships with us,” he said.

Adding, “We want to get better from the beginning of the year to the end of the year, if that means we win the All-Filipino at that point, then we’re good. But we’re looking to get better throughout the whole year, not just win each conference I guess that’s why maybe we hold the record for most wins in the third conference ‘cause that’s the philosophy that we take. It’s until you get better.”

The PBA is still shut following its decision to suspend the season on March 11 because of COVID-19. It recently got a break when the Inter-Agency Task Force for the Management of Emerging Infectious Diseases allowed it to resume doing team practices.

PFL girding for return to activities following IATF nod

FOLLOWING the decision of the Inter-Agency Task Force for the Management of Emerging Infectious Diseases (IATF-EID) last week to allow it to resume some activities, particularly the holding of team practices, the Philippines Football League (PFL) is now working on its next moves to take.

In an announcement made on July 3, the IATF approved the administrative order allowing the conduct of health-enhancing physical activities and sports amid the COVID-19 pandemic as recommended by pertinent government agencies.

The decision paved the way for the return to some activities of sports organizations like the PFL and Philippine Basketball Association.

Prior to the decision, the Philippine Football Federation (PFF), which oversees the affairs of the PFL, made representations to the Games and Amusement Board (GAB) for guidance to convince the IATF, the lead body in the country’s fight against COVID-19, to allow sports to return gradually, first with practices and then for matches to resume in different leagues.

Back in May, the PFF submitted the 26-page “PFF Operations Protocol for the Philippines Football League,” which prescribed the steps and protocols for the resumption of training, and eventually playing of matches, following guidelines that can be obtained from issuances of FIFA, the World Health Organization (WHO), and the IATF.

Among those included in the protocol is that training sessions must be conducted with a maximum of 10 people per session with a 30-minute interval in between sessions.

“We thank both IATF and GAB, headed by Chairman Abraham Mitra, for their approval in ensuring that professional sports may push through despite the ongoing pandemic,” said PFF president Mariano Araneta, Jr. in a statement. “The next step now is to ensure the health and safety of the players, as we prepare for the eventual start of training of PFL teams.”

The PFL said the next move is meeting with all the clubs about the approved protocols which need to be observed by all stakeholders.

The league was supposed to start its new season in March but the COVID-19 pandemic pushed it back to a still-to-be-determined date.

In an earlier interview with BusinessWorld, PFL Commissioner Coco Torre shared that they are confident of successfully staging a fourth season of the league despite the pandemic forcing them to adjust here and there. — Michael Angelo S. Murillo