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Open and affluent societies: Angst in Paradise

Most affluent western societies consider themselves “open societies.” Open societies swear by the values of inclusion in diversity. They shun apartheid or unequal access to social benefits based on race, color, or religion. A central tenet is the celebration of the individual over the group and of the ruled over the ruler embodied in one-man-one-vote. Open borders celebrate the fundamental right of its citizens to opt out or opt in. In the roaring 21st century, most opt in. The most envied of open societies because they are affluent and happiest by many measures, are the Scandinavian countries. Have they found the formula to render the baser human instincts recessive? Have they found the philosopher’s stone on the sustainable marriage of openness and affluence?

Time was when poor Sweden was an émigré country. In 1908, 20,000 young Swedes left for the USA. Times have changed. The Nordic countries have become the destination of choice for migrants. In the past when refugee migration was a trickle, these countries lit the candle of openness for the world, embracing more than their fair share of migrants, especially as guest workers. East Europeans and Latin Americans, fleeing mayhem and looking for work, were amply embraced. These arrivals match the natives in skin and hair color. Culturally, these migrants were largely Judeo-Christian in outlook and were willing to sublimate their identities towards the native identity. Affluent Nordic societies could then easily afford the cost of open borders, keeping its migrants’ footprints occasional and positive, such as with sports icons (Swede Zlatan Ibrahimovic or Dane Caroline Wozniacki) or with minders of jobs natives won’t touch.

The social welfare benefits they accord all insiders are, some say, generous to a fault. The natives pay through the nose for these cradle-to-the-grave entitlements, up to 50% income tax on their legal pay. Natives and migrants also receive the same benefits because open societies could not countenance apartheid. Migrants from poorer and often dysfunctional societies literally win a lottery upon attaining insider status. But that is the past. The trickle has become a tsunami. A thousand migrants is one thing; 163,000 refugee migrants arriving in Sweden in 2015 alone is another.

Scandinavian populations are small by global standards. Sweden is the largest with 10 million. These societies are clearly in the crosshairs of the migration tsunami. Nordic countries now feel rightly threatened. And it’s only partly economic. Population growth of the native Nordics is zero but that of migrants is high. Nordic peoples are realizing that they can lose something more precious than affluence but which did not seem as important when unthreatened, their “identity.” Indeed their affluence may just be the harvest of a deeply rooted “social contract.” The social contract encompasses a universe of privileges and obligations embodied in social norms enforced by a singularly law-abiding homogeneous citizenry. Swedes call this “consensus.” Outsiders see it as a well-nigh improbable “regulation from within.” Over time, the formal institutions of norm enforcement that chased away alien traits have receded into the background as abidance became second nature in the population. As Evolutionary Biology would have it, the trait of disorder has been forced into a recessive exile. Recessive, however, does not mean extinct. And in nature, order in any form tends to dissipate and must be continually be defended from the carriers of disorder welling up from the depth — free riding mutants who enjoy the benefits and don’t pay the cost. So members must also become disorder-minders. Put your garbage out on the wrong day and you will quickly be warned if not fined. Disorder minders are extremely important for the emergence and survival of the social coherence. A society whose members do not mind disorder will quickly drown in it — an apt description of failed states. Under familiar circumstances, disorder minders are “heroes.” In Evolutionary Biology, disorder minders are called “altruistic punishers.” Altruistic punishers effectively lower the cost of enforcement for the society as a whole at their own expense. They are the T-cells of ordered societies.

So the problem is not just the number. The ethnicity, color, religion, and cultures of the new migrants have radically changed. With numbers, these congregate in ethnic communities called “ghettoes,” which for some natives are “no go zones,” the better to preserve their culture from integration. A migrant female who violates tribal norms of marriage can still be killed in some parts of London. As they insist on marching to a different future, they threaten local social harmony, that precious seed of any and every future prosperity. Worse, a few of these ghetto dwellers actually despise the natives as heathens that must be destroyed. The 2017 Stockholm truck massacre and the 2015 Copenhagen shooting testify to this new unsettling reality. No wonder the tribal immune system is starting to hum.

The net economic benefit from the migration may still exceed the overall cost to the society as a whole, but this benefit and cost are very unequally distributed among the different classes of the native society. But to think that economic calculus holds the key is silly. The Brexit electoral victory was built on the fear of identity loss trumping the obvious economic benefit of EU. Secondly, the lower classes will bear the brunt of the cost while the upper classes will reap most of the benefits. A cleavage emerges between the lower classes and the upper classes who, on the whole, decide migration policies. The responses are predictable. A thousand disgruntled members of the native lower classes will manage no more than a cacophony of voices; 100,000 is a voting block. And in jurisdictions of thin pluralitarian majorities, that is enough to trigger what political scientist, Mancur Olson, called the “tyranny of the minority.” The new dissenters now loudly wear on their sleeves their once very private fears — disconcerting in concert-obsessed Scandinavia. The same now vote to punish the mainstream parties who in their minds aid and abet free riders. From the lunatic fringe, the anti-immigration Sweden Democrats won near 20% of the Sept. 9, 2018. Altruistic punishment has now turned more sinister. Anders Breivik, who in 2011 heinously mowed down 71 fellow Norwegians, insists that future Norwegians will consider him a hero.

Reductions in welfare benefits to, and deportations of, migrants are now the norm to assuage the anti-immigrant fever. Denmark is trying to disperse migrants from high crime ghettoes with monetary incentives. If the Kranton-Akerlof observation on identity holds (Identity Economics, 2010), the ghettoes will remain because the migrants’ cultural identities will trump the monetary come-ons; suicide bombers blow themselves up for that identity. Border patrols, previously unknown, now restrict entry into Scandinavia in violation of the European Union convention. Sweden deported 2,500 rejected asylum seekers in 2018. More will follow. “We reserve the right to choose who joins our tribe,” is the new slogan.

Being from outside of Paradise — yes, that side whose intolerance and tribalism reassure the insiders how blest they are — I confess to some schadenfreude, deriving guilty pleasures from the discomfort of others. Angst has touched Paradise and misery loves company. Nordics are having to taste the old Roman potion of self-doubt: Ubinam gentium sumus? (Where in the world are we)? They have become a little bit like us, blemished, threatened and conflicted. Welcome to the human condition!

 

Raul V. Fabella is a retired professor of the UP School of Economics and a member of the National Academy of Science and Technology. He gets his dopamine fix from hitting tennis balls with wife Teena and bicycling.

What will influence the PET?

The recent resolution of the Presidential Electoral Tribunal (PET) requires the parties to the election protest of the loser, Bongbong Marcos, to comment on the PET’s recount of votes in the provinces of Camarines Sur, Iloilo, and Negros Oriental. The outcome of the recount in these provinces even increased the lead of Vice-President Robredo by an additional 14,285 votes. Thus, Vice-President Robredo’s over-all lead is now equivalent to 278,566 votes.

For this reason, two Supreme Court Justices, Senior Associate Justice Antonio Carpio and Associate Justice Alfredo Benjamin Caguioa, dissented from the resolution. Both argued for the dismissal of the loser, Marcos’s, motion, citing PET’s Rule 65. Rule 65 states that when “substantial recovery” is absent, “the protest may forthwith be dismissed, without further consideration of the other provinces mentioned in the protest.”

The rule is unambiguous, as clear as crystal. The loser, Marcos, did not have “substantial recovery.” More to the point, the winner, Robredo, obtained additional votes. It is an open-and-shut case.

A legalist (or a contortionist) will point out the use of the modal verb “may” (“may forthwith be dismissed”) in the PET’s rule. It suggests possibility, not certainty. But what cannot be denied is the essence of the rule — no substantial recovery is a case for dismissal of the Marcos motion.

The PET has nevertheless required both parties to file a memorandum on the motion of the loser, Marcos, to nullify the election results in three Mindanao provinces, namely Basilan, Lanao del Sur, and Maguindanao.

Even here, the PET has to tackle many technical and legal questions, and I doubt if these issues could be resolved before the 2022 elections.

For one thing, where is the evidence to establish fraud? What is the threshold of evidence to form sufficient basis to annul the election outcomes in these provinces? The case of fraud has to be determined in every voting precinct. The loser, Marcos, wants the PET to go on a fishing expedition.

For another thing, claiming general fraud without evidence puts into question the legitimacy of all the winners of national posts in the 2016 elections — including Rodrigo Duterte. This causes political uncertainty, nay, political instability. We, including Duterte, do not want such instability to happen in the last half of the administration’s term.

To be sure, prolonging the case is a cause for grave concern. Nonetheless, I understand the point of view of Associate Justice Marvic Leonen that the recent PET resolution should likewise be seen as a recognition of due process. After all, our legal institutions must protect everyone — including the drug users among the poor, and victims of extra-judicial killings as well as the rich cocaine users, and the progeny of those who committed human rights violations.

Still, the final outcome of this case, to repeat, is clear as crystal. It is an open-and-shut case.

The PET, essentially the Supreme Court, is packed with Duterte appointees, and is perceived to be favoring the loser, Marcos. And the history of decision-making of the Supreme Court on politically related cases, even after the downfall of the dictatorship, tends to favor the administration.

But let us not be pessimistic. Truth favors Vice-President Robredo. Beyond what ought to be, Supreme Court decisions are subject to different variables.

Assume that the majority of the Supreme Court members are beholden to President Duterte. The question is whether it is in the strategic interest of Duterte to have the loser, Marcos, win. Part of his calculation is the political fallout (and indeed a controversial decision will lead to instability). Although Duterte and Marcos may be tactically aligned, they do not have the same strategic interests. Marcos’s concern is his power and glory, not the protection of Duterte.

Further, it is worth citing an article authored by Laarni Escresa and Nuno Garoupa titled “Judicial Politics in Unstable Democracies: The Case of the Philippine Supreme Court, An Empirical Analysis 1986-2010,” published in the Asian Journal of Law and Economics (2012). Based on regression results, the authors conclude that being an incumbent administration appointee explains a vote favoring the administration, but here is the crucial point:

“Still it is less pronounced than anticipated in the sense that the correlation between appointer and appointee is far from overwhelming. Taking into account that we have considered salient cases from a political viewpoint, the results are much less striking than the popular account would suggest.”

In the same vein, the authors state: “The Court may have been deferential to the administration in office, but even in the context of the most politically salient cases, there is a significant proportion of anti-administration votes.”

In a footnote, the authors explain other contextual variables that influence the votes of Supreme Court Justices, including public opinion and civil society mobilization.

In this regard, our role is to intensify public opinion and mobilization to ensure the complete defeat of the loser, Marcos’s, electoral protest.

 

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

www.aer.ph

PHL competitiveness: Two steps forward, one step back

Last week, we received the unwelcome news that the Philippines fell eight notches in the World Economic Forum’s (WEF) Global Competitiveness Report for 2019. From being among the most improved countries in 2018 with a 12-notch leap to 56th position, we slid to 64th place out of 141 countries this year. We are at the same level we were in 2012. While utterly disappointing, it serves as a wake up call to our policy makers.

The Global Competitiveness Report is significant because it measures the efficiency in which a country generates wealth for its citizens. It is an indicator of how productively resources are utilized and how favorable (or unfavorable) conditions are to achieve long term growth. In short, it is a barometer of how prepared a country is to meet the challenges of the future and prosper in it. Foreign investors refer to the Global Competitiveness Report to assess the stability and vitality of countries.

The WEF takes into consideration 12 factors (or pillars) in its assessment of nations. They are: the strength of government institutions; the sufficiency of infrastructure; the degree in which new information and communication technologies (ICT) are adopted; macroeconomic conditions; the health of the population; the skills of the workforce; the size and availability of the labor force; the extent by which businesses can operate on a “level playing field”; the size of the domestic market; the sophistication of the financial system; the ability to adopt to new technologies; and the extent of research and development and capacity to turn ideas into something concrete.

In 2018, the Philippines was the 5th most competitive economy in ASEAN following Singapore, Malaysia, Thailand, and Indonesia. This year, Brunei overtook the Philippines.

The Department of Trade and Industry (DTI) is responsible for championing all aspects relating to the country’s competitiveness through its subsidiary, the National Competitiveness Council. Hence, with a sense of urgency, I messaged DTI Secretary Ramon Lopez to ask what happened and if we have reason to worry. The Secretary responded by providing perspective on the eight notch drop. He also assured me that the laws needed to improve our competitiveness have already been passed. With it, we could reasonably expect a rebound in rankings next year.

First of all, it is wrong to think that the country did not improve in competitiveness. It did. The reason for the drop in rankings is because other countries improved faster.

That said, the report revealed that the country posted its greatest improvement in the strength of our institutions. The fact that government is already preparing for the fourth industrial revolution is as a step towards the right direction. (For those unaware, the fourth industrial revolution refers to disruptive technologies such as the internet of things, robotics, virtual reality, and artificial intelligence).

Last year, the Ease of Doing Business (EODB) and Efficient Government Service Delivery Act was passed into law and along with it will come the digitization of all frontline government services. This will further bolster our competitive standing in as far as our institutions and ICT adoption are concerned, said the Secretary. The Anti-Red Tape Authority was assigned to monitor and help facilitate the full implementation of the EODB law.

Another pillar in which the Philippines improved is the extent in which business operates on a level playing field. The fact that President Duterte does not meddle in business affairs has worked to our favor. It also helps that the formulation of economic policies is left to capable technocrats and not to politicians.

The country also showed improvement in market size, thanks to our ever growing population and rising incomes.

On the downside, the pillars in which the Philippines lost traction were in sufficiency of infrastructure; macroeconomic conditions; ICT adoption; the ability to adopt to new technologies; the extent of investment in research and development; health of the population; skills of the workforce; and the sophistication of the banking system.

There are reasons for all these, asserted the Secretary. In terms of infrastructure, the roads, rails, ports, and telecommunication facilities needed to ease connectivity are presently under construction. We can expect strides in this category as they become operational. This will happen in succession from 2021 to 2025.

In terms of ICT adoption, this too is expected to rebound once the Ease in Doing Business Act is fully implemented and all government front line offices are automated. In fact, the DTI has already started its digital migration with the roll out of its computerized system for business name registration. Very soon, registration with the Securities and Exchange Commission as well as processing Bureau of Internal Revenue permits can be facilitated online.

Despite the economy’s posting 6.2% growth last year, the WEF still deemed the country’s macroeconomic conditions as unfavorable. This was due to the high inflation rates that beset the country last year. Again, it was a temporary condition that has since been resolved. With benign inflation rates now prevailing, we should see an improvement in this pillar as we move forward.

The ability to adopt to new technologies is the pillar where the Philippines posted its biggest drop. Poor performance in this pillar is due to a trifecta of reason — our low standards of ICT education, the lack of wherewithal of our people to innovate and poor telecommunication infrastructure.

This is where the recent enactment of the Philippine Innovation Act and update of the Philippine e-commerce road map comes into play, said Secretary Lopez. Both statues aim to remove the obstacles to innovation and encourage local businesses to exploit business opportunities in the e-commerce and ICT space.

If I may add, government also needs to pass the Open Access in Data Transmission Act and the amendment to the Public Services Act. The former aims to improve data transmission by having service providers share infrastructure while the latter aims to open the telecommunications and transport sectors to foreign investors. If enacted into law, both statutes promises to raise our ICT infrastructure to world class standards.

The country scored shamefully low in terms of the health of the population and the skills of the workforce. It only underscores the fact that government is not investing enough on human development.

Our standing in the WEF’s competitiveness report is a case of climbing two steps forward and sliding one step back. Yes, the message of the Secretary is loud and clear — the laws that should improve our competitiveness standing are already in place. Still, we must not forget that the devil is in the speed and thoroughness of implementation.

If we do it right, we can expect a great leap forward in competitiveness next year. I trust in Secretary Lopez to pull it off nicely. He has never let us down.

 

Andrew J. Masigan is an economist

Two more firms step towards IPO within the year

Cal-Comp Technology (Philippines), Inc. and Fruitas Holdings, Inc. have secured the approval of the Securities and Exchange Commission (SEC) for their initial public offering (IPO) next month.

In a statement on Friday, SEC said Cal-Com is looking to raise P9.286 billion from the sale of new shares, while Fruitas Holdings is targeting P1.062 billion. Both have overallotment options consisting of secondary shares.

“In its October 17 meeting, the Commission En Banc considered favorably the respective registration statements of Cal-Comp and Fruitas Holdings. The corresponding orders of registration and permits to sell securities will be issued upon the companies’ compliance with certain conditions,” the SEC said.

Based on their submissions to the commission, Cal-Comp and Fruitas Holdings plan to list their common shares on the Philippine Stock Exchange (PSE) after their offer periods scheduled on Nov. 11-18 and for Nov. 11-22, respectively.

Cal-Comp is engaged in the design, development and manufacture of consumer electronic products such as data storage products, calculators, pachinko displays, smart home appliances and smart beauty products.

Fruitas Holdings is a food and beverage kiosk operator with more than 900 stores across the country. It traces its roots to Lush Enterprises Corp., which was incorporated in 2000.

Cal-Comp will offer 371,423,100 common shares, with an overallotment option consisting of 55,713,500 common shares currently held by Kinpo International (Singapore) Pte. Ltd., at a maximum price of P25 per share.

After the maiden offering, Cal-Comp will have a public ownership level of 28.87%, if the overallotment option is exercised. If not, the public will own 25.10% of the company.

The electronic manufacturing service provider tapped BDO Capital & Investment Corp. and Maybank Kim Eng Securities Pte. Ltd. as joint global coordinators and bookrunners. Maybank Kim Eng Securities is international lead underwriter, while Maybank ATR Kim Eng Capital Partners, Inc. will join BDO Capital as domestic lead underwriter.

Cal-Comp expects to net P8.834 billion, which it allotted for facilities expansion at 40%, capital expenditure at 30%, debt repayment 15%, research and development 12%, and working capital 3%.

The company is part of Taiwan-based New Kinpo Group, which manufactures a broad range of key electronic product lines. The lines include storage, printers, network-attached storage, wireless and broadband, digital home appliances, consumer electronics, wearables, 3D printing, robotics, power management and smart grid, industrial, automotive, security, medical/healthcare and emerging technologies.

Its expansion program entails the construction and development of the third phase of its Lima manufacturing complex in Lipa, Batangas for additional 25,000 square meters of space.

Meanwhile, Fruitas Holdings will offer 533,660,000 common shares at a maximum price of P1.99 apiece. The offer comes with an overallotment option for 68,340,000 common shares currently held by Next Merchant Holdings, Inc.

Before the offer, food and beverage kiosk operator has a total of 1,600,020,000 issued and outstanding shares. Upon listing, it will have up to 2,133,680,000 issued and outstanding shares, 28.21% of which will be held by new investors.

Fruitas Holdings appointed BDO Capital & Investment Corp. and First Metro Investment Corp. as joint issue managers, bookrunners and lead underwriters.

The company plans to raise P986.1 million in net proceeds for store network expansion and store improvement (59.4%), commissary expansion (5.1%), expansion in the food-park business (5.1%), acquisition opportunities and introduction of new concepts (15.2%) and debt repayment (15.2%).

It plans to establish more stores in malls within the National Capital Region and the rest of Luzon while extending its reach to out-of-mall locations, as well as in the Visayas and Mindanao.

Proceeds from the offer will allow Fruitas Holdings to open 550-650 new stores and improve about 1,000 stores up to 2022, among others.

The listing of Cal-Com and Fruitas Holdings follows the stock market debut of Kepwealth Property Phils, Inc.; Axelum Resources Corp. and AllHome Corp. — Victor V. Saulon

September balance of payments turns around from year-ago deficit

THE COUNTRY’S balance of payments (BoP) sustained a surplus for the third straight month — though the smallest amount in that period — turning around from a year-ago deficit, the Bangko Sentral ng Pilipinas (BSP) reported on Friday.

Data released by the central bank on Friday showed the BoP position — which summarizes the country’s economic transactions with the rest of the world for a given period — at a $38-million surplus in September, compared to July’s $248 million and August’s $493 million and the year-ago $2.696-billion deficit.

In a statement, the central bank attributed September’s BoP surplus to inflows from the “national government’s (NG) net foreign currency deposits and BSP’s income from its investments abroad” that “were offset… by outflows representing payments made by the NG on its foreign exchange obligations during the month in review.”

September’s figure brought the year-to-date BoP balance to a $5.567-billion surplus, similarly turning around from the $5.136-billion deficit logged in 2018’s comparable nine months.

“The surplus may be attributed partly to remittance inflows from overseas Filipinos and net inflows of foreign direct investments (FDI),” the BSP said.

The central bank said the latest BoP position also reflects the final gross international reserve (GIR) level of $85.58 billion as of September 2019. “At this level, the GIR represents a more than ample liquidity buffer and is equivalent to 7.4 months’ worth of imports of goods and payments of services and primary income,” the central bank said, adding that it is also equivalent to 5.4 times the country’s short-term foreign debt falling due in up to 12 months and 3.9 times based on “residual maturity”, or outstanding short-term foreign debt plus principal payments on medium- and long-term loans of the private and public sectors falling due within a year.

‘MORE OPTIMISTIC’ PROSPECTS
In a note sent to reporters, Security Bank Corp. Chief Economist Mr. Robert Dan J. Roces explained that “[t]he sustained surplus resulted from the increase in GIR for the same month, with the GIR build-up tapering to just 0.2% MoM growth, giving a lower BoP surplus reading.”

“We think the BoP will continue to see positive fundamental inflows from higher net receipts from increased remittances in the holiday season. However, there is a downside risk from lower FDI due to the global slowdown,” Mr. Roces said, referring to foreign direct investments.

“We also think that the late pick-up in infrastructure spending should increase import demand for capital goods and raise the trade-in-goods deficit by the end of the year,” he added, explaining that, for now, “[t]he surplus position is positive for the peso amid the volatility brought by geopolitical concerns.”

For, Rizal Commercial Banking Corp. Michael L. Ricafort, September’s smaller surplus reflects “easing of the country’s trade deficit amid the recent biggest year-on-year decline in the country’s imports data” and a smaller foreign portfolio net outflow.

Meanwhile, UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion pointed out that the “BoP month-on-month reflects more of government’s payment activities for the month.”

“However, BoP position on a cumulative basis from January to September 2019 does describe a more optimistic growth prospects for the third quarter. It shows a stable external position with a healthy GIR level at this point,” he said in an e-mail. — Luz Wendy T. Noble

Senate report finds Albayalde liable in ‘ninja cops’ case

By Charmaine A. Tadalan and Vann Marlo M. Villegas, Reporters

A JOINT Senate panel has recommended graft charges against resigned Philippine National Police (PNP) chief Oscar D. Albayalde over his alleged involvement in the “monumental cover up” of a 2013 sale of drugs seized from a buy-bust operations by 13 cops.

Justice Secretary Menardo I. Guevarra said the Senate report on the probe involving the rogue officers, who have been tagged “ninja cops,” will be helpful in reinvestigation being conducted by his department.

The Senate committees on Blue Ribbon and Justice and Human Rights, chaired by Senator Richard J. Gordon, released on Friday the first part of its report on its investigation on anomalies within the New Bilibid Prison.

“The findings are he (Mr. Albayalde) is liable for anti-graft, and it would be up for the Ombudsman or the DoJ (Department of Justice),” Mr. Gordon told reporters in a briefing Friday.

“By reasons of of seniority, by reason of his moral superiority, his competence, hindi naman s’ya aabot ng general kung wala siyang alam (he would not have reached the rank o a general if he does not know anything), I think he is very liable.”

Baguio City Mayor Benjamin B. Magalong, former Criminal Investigation and Detection Group (CIDG) director, had revealed during the committee hearings that the police report from the drug buy-bust declared confiscation of only around 38 kilograms (kg) of drugs, instead of about 200 kg.

The report noted Mr. Albayalde committed malfeasance for interfering in the implementation of the dismissal order issued against the 13 ninja cops, led by Police Major Rodney J. Baloyo IV.

Philippine Drug Enforcement Agency Director General Aaron N. Aquino, in one of the public hearings, disclosed that when he was serving as Central Luzon regional director in 2016, Mr. Albayalde, then acting regional director for Metro Manila, had asked him not to implement the dismissal.

On top of this, retired PNP general Rudy G. Lacadin said in a separate hearing that Mr. Albayalde, in telephone conversation, claimed receiving a small share from the incident.

Mr. Lacadin, however, said he was unsure if the statement was made “jokingly.”

“When you add these two statements, including the pressure of all the generals at that time, Purisima, Petrasanta, lahat ‘yun pinagsama-sama mo (all that put together), including the report of General Ferro, including the court dismissal of the case of Ding Wen Kun… along with the circumstantial evidence… It becomes a very very strong case against General Albayalde and all his men,” Mr. Gordon said.

Former PNP chief Alan L. Purisima was in position when the drug-buy bust took place, while former general Raul D. Petrasanta was the central Luzon police chief, who signed the first dismissal order in 2014.

The report noted Mr. Albayalde violated section 3(a) and 3(e) of Republic act 3019, or the “Anti-Graft and Corrupt Practices Act,” which each prohibited acts of “persuading, inducing, or influencing another public officer to perform an act constituting a violation of rules and regulations;” and “causing undue injury to any party, including the Government…”

If found guilty, he could face six to 15 years of imprisonment; perpetual disqualification from public office and confiscation or forfeiture in favor of the Government of any prohibited interest and unexplained wealth.

Moreover, Mr. Albayalde also allegedly violated section 27 of RA No. 9165, or the “Comprehensive Dangerous Drugs Act of 2002,” for profiting from the drug reselling; and Article 208 of the Revised Penal Code for his interference in the dismissal.

These violations could sentence him to life imprisonment, fined with P500,000 to P10 million, and absolute perpetual disqualification from office.

DOJ PROBE
Mr. Guevarra, meanwhile, told reporters in a mobile phone message, “I’m sure Senator Gordon’s committee will furnish the DoJ (Department of Justice) a copy of its report.”

“This report will surely be useful in the reinvestigation of the alleged drug recycling/ninja cops case currently being conducted by the DoJ. Any relevant evidence presented during the senate hearings may be adopted or presented by any interested party during the DoJ reinvestigation,” he added.

The DoJ is currently reinvestigating the complaint against the policemen and gave the CIDG more time to submit additional evidence against the policemen.

“In any event, if there’s any basis for including General Albayalde in the charges, the PNP/CIDG may amend its complaint o that the same may be covered in the ongoing DoJ investigation,” Mr. Guevarra said.

Initial vote recount in three provinces increases Robredo’s lead

PHILSTAR

By Vann Marlo M. Villegas, Reporter

THE LEAD of Vice-President Maria Leonor G. Robredo over former senator Ferdinand “Bongbong” R. Marcos, Jr. in the May 2016 elections increased by about 15,000 votes after the initial recount of ballots from three provinces.

In the 57-page resolution dated Oct. 15, the Supreme Court (SC), sitting as the Presidential Electoral Tribunal (PET), said that after revision and appreciation of ballots in the pilot provinces of Camarines Sur, Iloilo and Negros Oriental, Ms. Robredo’s lead over Mr. Marcos increased to 278,566 from from 263,473.

Despite this, the Tribunal said that before it ruled on the effects of the results of the vote recount as to whether it will proceed with the second cause of action sought by the former senator, which is the recount of votes in 27 other provinces, it still required the parties to comment on the said report.

It also said that it was essential to meet “due process requirements” requiring both parties to also comment on the third cause of action of Mr. Marcos to annul election results for the position in the provinces of Maguindanao, Lanao del Sur and Basilan on ground of “terrorism, intimidation and harassment of voters.”

“This Tribunal, however, will comply with its constitutionally mandated duty allowing the parties the opportunity to examine the results of the revision and appreciation of the pilot provinces as well as comment so that they are fully and fairly heard on all the related legal issues,” the resolution read.

“Based on the submissions of the parties, the Tribunal can therefore confidently and judiciously deliberate on the proper course of action as clarified by the actual position of the parties on the common issues that we have identified.”

Associate Justice Alfredo Benjamin S Caguioa, the justice in charge of making the report on the recount and revision of ballots and Senior Associate Justice Antonio T. Carpio dissented on the resolution.

Mr. Caguioa, in his dissenting opinion, said that the election protest should be dismissed after Mr. Marcos failed to “make out a case” in the pilot provinces he chose where cheating allegedly occurred, following the Rule 65 of the PET Rules.

Under Rule 65, the Tribunal requires a protestant to indicate three provinces “best exemplifying frauds or irregularities” which will be the subject of the recount. If, upon examination of ballots and the Tribunal is convinced that the protestee “will most probably fail to make out his case”, the protest may be dismissed, without consideration to the other provinces.

“Again, I raise the question, what else is there to say and comment on? The language and purpose of Rule 65 are clear. The results of the revision and appreciation are likewise clear. Had this case been before any of the electoral tribunals, the protest would have been dismissed,” Mr. Caguioa said.

“Directing the parties to comment on any matter or to conduct any further proceedings achieves no purpose.”

Mr. Carpio also cited Rule 65 of the PET Rules.

“Since the revision results indicate no substantial recovery on the part of protestant, and thus protestant “will most probably fail to make out his case,” the dismissal of the election protest, and thus, the discontinuance of any further proceedings, such as the rev1s1on of the remaining contested provinces, is proper pursuant to Rule 65 of the 2010 PET Rules,” he said in his dissenting opinion.

The retiring justice also noted that the third cause of action on the annulment of vice-presidential votes in three provinces in Mindanao would mean a revision and recount of ballots anew and will allow the protestee to exceed the maximum number of pilot provinces prescribed in the rules.

Mr. Marcos filed the election protest in June 2016 after narrowly losing to Ms. Robredo in the national elections in May that year.

PHL, India sign agreements on maritime security, other areas

THE GOVERNMENTS of India and the Philippines on Friday signed four agreements that will strengthen ties in maritime security, tourism, science and technology, and cultural cooperation.

“With the signing of bilateral agreements, we have likewise widened the path towards enhancement of our engagement in maritime security, science, technology tourism and cultural cooperation,” President Rodrigo R. Duterte said in a joint press statement with Indian President Ram Nath Kovind, aired over the Presidential Communications Facebook page.

Friday’s bilateral meeting saw the signing of a Memorandum of Understanding between the Philippine Coast Guard (PCG) and the Indian Navy of the Republic of India on Sharing of White Shipping Innovation.

The MoU seeks to enhance maritime security through sharing of information on non-military and non-government shipping vessels. It was signed by PCG Commandant Admiral Elson E. Hermogino and Smt. Vijay Thakur Singh, Secretary (East), Ministry of External Affairs of the Republic of India.

“As countries strategically located in the Pacific and Indian Ocean, we affirm our shared interest to protect our maritime commons and advance the rule of law in our maritime domains,” he said.

“We agreed also to continue working together to fight terrorism and violent extremism and other transboundary threats.”

An MoU on tourism cooperation was also signed between the Department of Tourism, represented by Secretary Bernadette Romulo-Puyat, and India’s Ministry of Tourism through Smt. Vijay Thakur Singh, Secretary (East), Ministry of External Affairs of the Republic of India.

Also signed were a program of Cooperation in the fields of Science and Technology for 2019-2022 and Cultural Exchange Programme for the years 2019-2023.

The Philippines and India are both recognized for their information technology and business process outsourcing industries, which Mr Duterte said “encourages” another area for cooperation.

“This is a shared distinction that encourages us to cooperate more so that we can complement each other’s strengths,” Mr. Duterte said. — Charmaine A. Tadalan

Rappler seeks dismissal of cyberlibel case

ONLINE NEWS site Rappler and its executive editor, Maria A. Ressa, have asked a Manila court to dismiss the cyberlibel case against them.

In the demurrer to the prosecution’s evidence filed Oct. 18 at the Manila Regional Trial Court Branch 46, they said the prosecution failed to establish that there was an “actual malice” on the part of the accused, including former researcher Reynaldo Santos, Jr.

“The prosecution has failed to show any actual malice on the part of accused Santos Jr., Ressa, and Rappler Inc. as there are no defamatory statements attributable to Santos Jr., Ressa, and Rappler, Inc.,” the demurrer read.

They noted that the parts of the article included in the information filed before the court cited previous reports on the complainant’s alleged involvement in illegal activities and it was not Mr. Santos who linked him to those.

The case stemmed from the complaint filed by businessman Wilfredo D. Keng over a Rappler article published May 29, 2012 and updated in February 2014. The article reported that Mr. Keng was the alleged owner of the vehicle used by former chief justice Renato C. Corona and that he was involved in illegal activities.

The Justice department indicted them in January 2019 and the case was filed in court the next month.

The defendants also argued that there was no proof of the participatioin of Ms. Ressa and Mr. Santos in the republishing of the allegedly defamatory article on Feb. 19, 2014.

They also said that the citation of the prosecution of a Supreme Court ruling in 1988 as the basis for the “multiple publication rule” only applies to print media and not online media.

They claimed that the prosecution has not “proven beyond a reasonable doubt” that there is an injury to reputation which is “an essential element of defamation.”

A demurrer to prosecution’s evidence is a move to dismiss a case for insufficiency of evidence. If the motion is granted, the accused will be acquitted. —Vann Marlo M. Villegas

Surigao flights to resume Dec. after reconstruction of quake-damaged airport

THE DEPARTMENT of Transportation (DoTr) on Friday said flights to Surigao will resume by December after the construction of the quake-damaged runway of Surigao Airport has been completed.

“The construction to restore the runway of Surigao Airport has been completed, with the gateway set to reopen flights to and from Manila before the year ends,” the DoTr said in a statement.

Before the airport’s closure, there were also direct flights between Cebu and Surigao.

The reconstruction of the runway was started after it was damaged by a magnitude 6.7 earthquake in 2017.

The DoTr said that as of Oct. 14, “construction has been completed for the runway to restore additional 340 meters, bringing the current runway length to 1,400 from previously over 1,000 meters.”

Contractors VT Lao and Pacific Concrete will now be focusing on returning the runway to its previous full operational capability at 1,800 meters by first quarter of next year, DoTr said.

The completion of the runway’s rehabilitation was ahead of the government’s Nov. 2019 deadline.

“We are glad that the contractors made good on their word to deliver in accordance with the deadline set. The people of Surigao deserve this development, most especially after a calamity. Let us always remember that air connectivity is closely tied to regional growth,” DoTr Secretary Arthur P. Tugade was quoted as saying in the statement.

Surigao is located in the Caraga Region in the eastern part of Mindanao. — Arjay L. Balinbin

African swine fever detected in more provinces

AFRICAN SWINE FEVER (ASF) has spread further, Agriculture Secretary William D. Dar announced on Friday, identifying more areas north and south of Metro Manila as the latest affected sites.

Meron sa (There is in) Nueva Ecija, but very small area… One affected area in Cavite… Dasmariñas [City],” he told reporters on Friday, adding that both areas are now implementing quarantine protocols.

The Agriculture department also confirmed that hogs culled now totaled 52,000, about 0.41% of the country’s 12.7 million hog population. Of the culled hogs, about 17,000 — a third — were infected by the virus.

Affected areas have reached 22, including in Bulacan, Pampanga, Rizal and Quezon City.

“Ang (The) lapses, number one, ‘yung mga nagba-baboy ay nagtatago. Apektado na, kinakatay pa, may nagne-negosyo din. ’Yun ang kumakalat (Hog raisers hide affected pigs. Their hogs are already infected, but are still slaughtered and sold. And so the virus spreads). Number two, ’yung hog raisers transporting from one area to other areas [with] affected na mga baboy (hogs), ito ’yung isang pinaka problema natin ngayon (this is one of our biggest problems now),” Mr. Dar explained.

He said that the time has come to use the state’s police powers to force affected hog raisers to comply with disease protocols.

“The DoJ… will now lead in bringing these hog raisers to court kung hindi sila susunod sa batas (if they will not follow the law),” Mr. Dar said, referring to the Department of Justice.

“This is not the time to take advantage of the situation… Pakiusap lang po: tayo lahat Pilipino (We are appealing: we are all Filipinos). Let’s protect our hog industry [now valued at about] P260 billion. Ang daming mawawalan ng income sources kung maaapektuhan lahat (many will lose their livelohood if this will affect the whole industry).”

The department had announced in its Swine Bulletin No. 11 last week that Cabinet members agreed in an October 11 meeting that cases will be filed against hog raisers and traders who will be caught selling or buying and transporting live hogs, as well as slaughtering ASF-infected pigs and selling products infected by the virus. — Vincent Mariel P. Galang

Duterte promises business sector an audience for corruption concerns

PRESIDENT Rodrigo R. Duterte told the business sector Thursday night that he is willing to leave Cabinet meetings to hear out any corruption issues that investors may bring up.

Speaking late Thursday at the 45th Philippine Business Conference and Expo (PBC&E) at the Manila Hotel, Mr, Duterte encouraged his audience to bring any corruption concerns to his attention.

“I may not know all of you but I’m sure that you know one or two or three na may contact mo, ‘Kilala mo ba ‘yan si Rodrigo?’ ‘O ‘di sabihin mo nga may reklamo ako sa kanya,’ (I am sure you all have contacts who can get word to me about any complaints you have about corruption)” Mr. Duterte said in his speech.

“And I will give you the space. I will even cut a Cabinet meeting just to hear you out,” he added to applause.

In attendance were Philippine Chamber of Commerce and Industry President Ma. Alegria S. Limjoco and Chairman George T. Barcelon, Trade Secretary Ramon M. Lopez and PBC&E Chairman William S. Co.

Mr. Duterte called on the business sector to cooperate in his bid to end corruption, a key part of his platform before taking office in 2016.

“I cannot succeed no matter how, even if I fire or dismiss every day as I did, as I’ve been doing for the last so many months ‘pag hindi kayo tumulong sa akin (if you don’t help me)“ he said.

His remarks follow the forced resignation of Pedro A. Aquino as president and chief executive officer of the Philippine National Oil Corporation-Exploration Corp. over an unauthorized Russian deal.

“Here is a guy who prepared a contract with the Russians and the Russians thought that… that was all there is to it… He wanted now the board to ratify what he prepared,” Mr. Duterte said, instead of obtaining prior board approval.

According to reports, Mr. Aquino signed a memorandum of agreement without seeking the approval of the board, which is chaired by Energy Secretary Alfonso G. Cusi.

At the same speech, the President cited the PCCI, the Department of Environment and Natural Resources and the Natural Resources Development Corporation for their partnership agreement.

“The environment is a priority under my administration. Business should not only comply with all environmental rules and regulations but shall also take part in taking care of the environment,” he said, without disclosing details about the agreement.

He encouraged businesses to also build more disposal sites for waste as well as treatment facilities. — Charmaine A. Tadalan