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Foreign-worker crackdown backed by chambers

FOREIGN business chambers said they support the government’s proposed controls on the entry of foreign workers, saying that Chinese investors in the online gaming industry have provided limited employment opportunities to Filipino workers.

In a text message to BusinessWorld, American Chamber of Commerce (AmCham) Advisor John Forbes said that the recent Joint Memorandum Circular (JMC) No. 001 series of 2019, issued by various government agencies, will help ensure more jobs for locals, especially in the Philippine Offshore Gaming Operator (POGO) industry.

“These controls on foreign workers are needed in light of the influx of young Chinese working in online gambling. We thought PRC (People’s Republic of China) investors were coming to employ Filipinos but so far many of them have only given jobs to Chinese and not to Filipinos,” Mr. Forbes said.

On July 11, the Department of Labor and Employment (DoLE) signed the JMC together with the Department of Environment and Natural Resources (DENR), Department of Finance (DoF), Department of Foreign Affairs (DFA), Department of Justice (DoJ), Bureau of Immigration (BI), Bureau of Internal Revenue (BIR), National Intelligence Coordinating Agency (NICA) and Professional Regulation Commission (PRC). The JMC outlines and harmonizes procedures governing on the issuance of work permits to foreign nationals.

Also during the same period, DoLE’s Bureau of Local Employment (BLE) reported that it has identified more than 7,000 Chinese nationals working in POGOs who will be deported for not securing work permits, particularly the Alien Employment Permit (AEP) which is only issued by the DoLE.

European Chamber of Commerce of the Philippines (ECCP) President Nabil Francis said that the JMC will lead to the better enforcement of rules governing the issuance of work permits and strengthen the monitoring of foreign workers entering the country.

“This is a step in the right direction towards the effective implementation of existing legislation and exploring further avenues for improvement. We are glad to see the government agencies involved closely cooperating on this,” Mr. Francis said in an e-mail to BusinessWorld.

The JMC requires all foreigners seeking work to have a Tax Identification Number (TIN) before they obtain a permit to work in the Philippines. NICA is also tasked with issuing a “no deregatory information” finding before foreign nationals apply for a work visa. — Gilian M. Cortez

DTI to file bill funding MSME lending at P4 billion a year

THE TRADE DEPARTMENT said it hopes to make a lending scheme known as Pondo sa Pagbabago at Pag-asenso (P3) more permanent via legislation, Trade Secretary Ramon M. Lopez said during the 2019 National MSME Summit on Tuesday.

“We’re proposing a P3 bill so that we can institutionalize the P3 allocation. We could still go through the budget but at least there’s more certainty (of a) budget allocation every year,” Mr. Lopez said.

The P3 lends to micro, small and medium enterprises (MSMEs) in the wake of President Rodrigo R. Duterte’s directive to eliminate the “5-6” system of usurious informal lending. P3 started in 2017 and has about 83,000 registered borrowers.

Mr. Lopez said that the plan is to have an allocation of P4 billion per year over four years.

The DTI said the market for 5-6 loans is estimated at about P30 billion nationwide.

“We want to kill 5-6 and put it aside. Kailangan may kapalit (there needs to be a replacement). So ang kapalit mo dapat medyo close to that amount. (The replacement needs to be close to that amount),” he told reporters.

An additional P1.5 billion to fund P3 will also be put in place with the new budget, he said in his speech during the summit. — Katrina T. Mina

Unions seek more pro-labor reforms, ‘living wage’

LABOR groups have asked President Rodrigo R. Duterte to introduce reforms that improve working conditions and impose a “living wage” ahead of his State of the Nation Address (SONA).

The Bukluran ng Manggagawang Pilipino (BMP), Federation of Free Workers (FFW), Kilusang Mayo Uno (KMU), and SENTRO ng mga Nagkakaisa at Progresibong Manggagawa (SENTRO), issued a joint statement seeking improved work conditions and pay ahead of the President’s fourth SONA on July 22.

“We, various labor centers, federations, workers’ associations and advocates, come together to demonstrate our strong resolve to advance the Filipino workers’ demands for a national minimum wage, regular work and respect for human and trade union rights,” the labor groups said in the statement on Tuesday.

The workers’ groups noted that Mr. Duterte has yet to fulfill his promise to end forms of contractualization that deny workers a path to permanent employment, known as “endo,” a promise made during the 2018 SONA and a campaign promise in 2016.

“We have long called for an end to contractualization of labor, yet the practice of labor-only contracting, job-only contracting and other forms of flexible labor remain prevalent. Contractualization will still persist even with the watered down Security of Tenure Bill (SB 1826) is enacted. We believe that unless the scourge of contractualization is eradicated, workers’ right to organize, collectively bargain and to strike will be undermined, and economic growth will never be inclusive,” they said.

They added: “We push for higher wages and further a national minimum wage towards a family living wage amid the rising cost of living. The call for an immediate wage hike is just and is needed to address the economic hardships of workers in different parts of the country.”

They also called for the abolition of the current wage-setting system, which is determined by regional wage boards. — Gillian M. Cortez

DA blames drop in NFA rice inventory on refusal to import

THE DEPARTMENT of Agriculture (DA) rejected blame for the rice crisis of 2018, saying that the National Food Authority’s (NFA) inventory dropped because of its governing council’s refusal to import foreign grain.

In a social media post, Agriculture Secretary Emmanuel F. Piñol said the NFA’s stores of imported rice first started showing signs of depletion in October 2017, at a time when the DA was not in control of the agency. The NFA had asked the NFA Council for permission to import, but was refused.

The drawdown in inventory continued. By February 2018, Mr. Piñol said, the agency started making less imported rice available to the market.

The NFA rice, sold at retail for a subsidized price of about P27, is typically patronized by low-income families, and shortages of the low-cost staple strengthened the pricing power of commercial traders, causing inflation to spike in 2018.

The inflation basket of goods in poor countries is usually heavily weighted towards food, making Philippine inflation especially sensitive to swings in rice prices.

“As early as October of 2017, then NFA Administrator Jason (Laureano Y.) Aquino asked the NFA Council to allow the agency to import rice because it was running low. This was, however, opposed by a majority of the members of the Council,” Mr. Piñol said.

He said despite the record domestic harvest in 2017 of 19.28 million metric tons (MMT), domestic output fell short of meeting demand by about 7%, and there was a need to import rice during lean months from July to September.

He said in April 2018, President Rodrigo R. Duterte ordered the NFA Council to allow imports, but too late to contain rampant speculation by traders who had anticipated the shortfall.

“Nag-speculate (traders speculated) and manipulated the prices,” he told BusinessWorld in a text message.

“In July, reports of increasing rice prices came out and by August, Zamboanga City declared a ‘State of Calamity’ as rice prices soared to as high as P70 to P80 per kilo. When I heard of these reports, I called up Executive Secretary Salvador (C.) Medialdea and volunteered to help defuse the Zamboanga City rice crisis. I told him that while the NFA rice supply issue does not involve the DA, as Secretary of Agriculture, I had to do something about it,” he said.

The NFA was then transferred along with other agencies to the DA, making the Agriculture Secretary the Chairman of the NFA Council. The suggested retail price (SRP) strategy was then implemented and rice imports were approved.

“Prices of rice stabilized and the issue of the ‘rice crisis’ died down,” he said. He added that since the transfer of NFA, its buffer stock has grown sufficient to meet the country’s needs until the end of August.

The NFA, which switched exclusively to domestic procurement since the enactment of the Rice Tariffication Law in March, said it purchased 5.412 million bags of palay, the unmilled form in which farmers sell their crop to dealers, in the first half.

The price of rice has been generally in a downward trend in the past few months as traders press farmers for lower prices amid the threat of competition from more freely-imported foreign grain.

The Philippine Statistics Authority (PSA) said during the fourth week of June, the average wholesale price of well-milled rice fell 0.1% week-on-week to P39.30. At retail, it fell 0.2% to P42.92 per kg.

The wholesale price of regular-milled rice fell 0.2% week-on-week to P35.39 during the period. At retail, the price decreased 0.3% to P38.56. — Vincent Mariel P. Galang

Duterte signs innovation, poverty-monitoring legislation

PRESIDENT Rodrigo R. Duterte signed into law two measures — the Philippine Innovation Act and the Community-Based Monitoring System Act.

The President signed Republic Act (RA) No. 11293, which goes into the books as the Philippine Innovation Act, and RA No. 11315 or the Community-Based Monitoring System Act, on April 17. Malacañang released to reporters copies of the laws on Tuesday.

The Philippine Innovation Act authorizes the government to adopt innovation policies pursuant to Section 10, Article XIV of the Constitution that recognizes science and technology as “essential for national development and progress” and that prioritizes “research and development, invention, innovation, and their utilization.”

The policies to be adopted include placing innovation at the center of the State’s development policies; promoting a culture of strategic planning and innovation; investing in education, science, technology and innovation; and engaging the business sector, academe, scientific community and research institutions in innovation efforts for economic growth, among others.

The law creates the National Innovation Council (NIC), which will be responsible for developing the country’s innovation goals, priorities, and long-term national strategy.

The NIC is composed of the President as Chairperson, Director General of the National Economic and Development Authority (NEDA) as Vice Chairperson, and other Department Secretaries as Members.

Their tasks include to develop a National Innovation Agenda and Strategy Document, which will establish the country’s vision and long-term goals for innovation and provide a road map and strategies for improving innovation in government.

NEDA, in coordination with the Department of Science and Technology and the Department of Trade and Industry, will formulate and promulgate the implementing rules and regulations of the new law.

RA No. 11315 authorizes the government to adopt a community-based monitoring system (CBMS), “which generates updated and disaggregated data necessary in targeting beneficiaries, conducting more comprehensive poverty analysis and needs prioritization, designing appropriate policies and interventions, and monitoring impact over time.”

The CBMS, which is an organized technology-based system of collecting, processing and validating disaggregated data, is to be established and instituted in every city and municipality as an “economic and social tool towards the formulation and implementation of poverty alleviation and development programs” of government.

The National Statistician of the Philippine Statistics Authority, in consultation with the departments of Interior and Local Government, Agriculture, Health, Social Welfare and Development, Education, Housing and Urban Development, Labor and Employment, Environment and Natural Resources, and Information and Communications Technology, among others, will promulgate the rules and regulations of this law. — Arjay L. Balinbin

Cognitive Dissonance, False Dichotomies, and the West Philippine Sea

Over the past few days, a lot has been said regarding the 3rd anniversary of the Hague ruling favoring the Philippines in its stance against China on the West Philippine Sea dispute. Three years ago, it was a highly celebrated victory headed by former Philippine Foreign Affairs Secretary Albert Del Rosario and then Supreme Court Associate Justice Antonio Carpio. The ruling was considered by many as a marquee case that reinforced the salience of international law as a diplomatic equalizer between state actors; primarily pitting a small island state against an international power and eventually winning versus a seemingly “formidable” adversary. Nonetheless, it was the poster child for the efficacy of non-lethal avenues in settling conflicts between nation-states.

The decision of the Permanent Court of Arbitration (PCA) was the rallying point that should have been used as primary leverage in solidifying and galvanizing our position in the region, while having the opportunity to unite in a common front with other neighboring states that are also affected by China’s expansionist push to impose its “nine-dash line.” Three years later, however, the reality couldn’t be farther than the ideal scenario.

Articles, radio commentaries, and vignettes of a bygone victory reminded the public of what could have and should have been, and endless “what ifs.” Three years into the Duterte administration, the momentum that was created following the ruling was essentially squandered, replaced by an appeasement strategy with the promise of infrastructure development, an influx of investments, and a seemingly bottomless line of credit as part of China’s Belt and Road Initiative.

ON PUBLIC OPINION
Last Friday, July 12, Social Weather Station (SWS) president Mahar Mangahas presented survey results on the public’s opinion on the West Philippine Sea (WPS) issue. The survey was conducted from June 22-26, with a 1,200-sample size, and an error margin of plus-minus 3%.

The findings reveal a strong popular sentiment against China in the WPS issue among Filipinos. A resounding 93% indicated the importance of regaining control of the islands in the WPS, and 89% felt that it is wrong to be apathetic and do nothing about the Chinese infrastructure on the islands. In addition, 92% want the country to bolster its military capability, in particular the navy. Clearly, Filipinos agree on the importance of the WPS issue and want to see a more resolute stance to oppose the Chinese narrative, with a military deterrence option within the realm of possible actions.

Other avenues that the public are open to are multilateral ties. Eighty-four percent (84%) agree with enhancing political clout by forming alliances with other countries. This action can be done by aligning with other claimant states, namely, Indonesia, Vietnam, Brunei, and Malaysia; by bolstering the Mutual Defense Treaty with the United States; or holding freedom of navigation operations (FONOPS) via joint patrols in the WPS.

Eighty-three percent (83%) also agree with bringing the case to international organizations, namely, the UN and the ASEAN, as a platform for negotiations. The reactions may be offshoots of numerous reports beginning in 2016 of violent acts committed by the Chinese Coast Guard against Filipino fisherfolk, including the recent Reed Bank incident. Public backlash is also apparent against illegal fishing activities by Chinese fishermen, with 87% wanting the Philippine government to arrest and prosecute erring Chinese fishermen.

ON COGNITIVE DISSONANCE AND FALSE DICHOTOMIES
What is baffling about the findings, however, are two numbers: 87% believe that the Philippine government should assert its right on the islands in the WPS even as 71% believe that the government is serious in protecting Filipino fisherfolk in the WPS.

There could be a form of cognitive dissonance amongst the public here. Public perception regarding the government still remains largely positive despite the three years of inaction, passivity, and over-all lack of political will from the administration to protect the national interest and the constitutional mandate to defend our territory.

Public perception in this instance is a direct result of the unclear foreign policy gravitas the current government is exhibiting, contrary to its much-vaunted foreign policy pivot branded as “independent.” Though doubts are cast and more questions than answers surface, the only clear stance from the government is its preference to align with its new ally, China.

President Duterte and other officials have pushed various statements that warn of possible war if the Philippines were to keep its stance in the WPS. The false dichotomy between lopsided exploitation sugarcoated as peace, and absolute destruction with the threat of war is thrown around to keep the public in check. By taking away its self-reliance and pride, the public’s will to defend itself festers from the inside as the foundations of national interest rot and will inevitably buckle, not from the weight brought by an external adversary but the enemy within.

 

Ren de los Santos is a Research Manager of the Stratbase Group and a Resident Fellow for Global Politics, Stratbase ADR Institute.

Amending the Public Service Law: Distinguishing public utilities from public services

Senate Bill No. 1441 seeks to amend the Public Service Act to differentiate a “public service” from a “public utility,” thereby lifting the nationality restriction on the areas of power generation and supply, transportation, broadcasting, and telecommunication, among others.

During the 17th Congress of the Philippines, Senate Bill No. 1441 was introduced seeking to amend the antiquated Commonwealth Act No. 146, otherwise known as the “Public Service Act,” which is the primary law, after the Philippine Constitution, that governs public services in the Philippines. In particular, the following amendments were proposed: the transfer of the functions of the now defunct Public Service Commission to various administrative agencies; the definition of “public utility” as distinguished from a “public service;” an appropriate mechanism for fixing rates based on a reasonable rate of return; and, the penalties for violations.

Most notable among the aforementioned proposed amendments is in the definition of a “public utility” which has, in the past, been used interchangeably with the term “public service.” As currently worded, the Public Service Act defines a “public service” to include “every person that now or hereafter may own, operate, manage, or control in the Philippines, for hire or compensation, with general or limited clientele, whether permanent, occasional or accidental, and done for general business purposes, any common carrier, railroad, street railway, traction railway, sub-way motor vehicle, either for freight or passenger, or both with or without fixed route and whether may be its classification, freight or carrier service of any class, express service, steamboat or steamship line, pontines, ferries, and water craft, engaged in the transportation of passengers or freight or both, shipyard, marine railways, marine repair shop, [warehouse] wharf or dock, ice plant, ice-refrigeration plant, canal, irrigation system, gas, electric light, heat and power, water supply and power, petroleum, sewerage system, wire or wireless communications system, wire or wireless broadcasting stations and other similar public services.”

At the time of its passing, the intent of the law was to regulate public services, which by its very nature, is imbued with public interest, to ensure that such basic public services were accessible to everyone equally. Public service providers were limited to Filipino citizens, and to entities at least 60% of whose capital is owned and controlled by Filipino citizens. By reason of such a restriction, monopolies were inevitably formed as very few local players had the financial resources and technical capacity required by such enterprises.

The 1987 Constitution of the Philippines provides that “No franchise, certificate, or any other form of authorization for the operation of a public utility shall be granted except to citizens of the Philippines or to corporations or associations organized under the laws of the Philippines, at least 60 per centum of whose capital is owned by such citizens.” In this connection, the 11th Foreign Investment Negative List lists the “operation of a public utility” as an area of investment which is limited to no more than 40% foreign equity participation.

However, the Constitution itself does not define a “public utility” and, accordingly, the term has been interpreted broadly to include all public services, thereby applying the stringent nationality requirements under the Constitution to all who fit the all-encompassing definition, no doubt discouraging, if not scaring away, potential foreign investors.

The proposed amendment statutorily defines a public utility as a mere subset of public services, a recognition that while a public utility is a public service, it is much smaller in scope than the latter, and limits the same to just three main industries, namely: Transmission of Electricity; Distribution of Electricity; and Water Works and Sewerage Systems. The bill further provides that no other business or service shall be classified as a public utility unless otherwise subsequently provided by law, upon recommendation by the Philippine Competition Commission, in consultation with the National Economic and Development Authority.

The bill proposes to lift the nationality restrictions on all public services, and limits the application of the same to those that fall within the proposed limited definition of public utilities. Similarly, this would limit the application of the constitutional restriction on public utilities to those defined as such. This would have significant consequences to foreign investments in the areas of transportation, broadcasting, telecommunication, and power generation and supply, to name a few, as such declassified industries would now be allowed to be wholly foreign owned and controlled.

Proponents of the amendment claim that this would open the industry to actual, true and meaningful competition, with the immediate effect of allowing more players, both domestic and foreign, to “slug it out to win the satisfaction of the Filipino people.” Foreign players will now be allowed to come in and force local players to compete, and break natural monopolies that have formed through the years.

There is no doubt that many sectors of society have an interest in getting the amendments passed, and the proponents are no less tenacious in pushing for the same. The President himself has signified his interest to open up the telecommunication industry to foreign players. Nonetheless, the 18th Congress is a whole new ball game, and whatever the legislative wisdom may be, we can only hope that the interests of the Filipino people remain primordial.

The views and opinions expressed in this article are those of the author. This article is for general informational and educational purposes, and not offered as, and does not constitute, legal advice or legal opinion.

 

Jacquelyn Ann Marie G. Anzures is an Associate of the Corporate and Special Projects Department of the Angara Abello Concepcion Regala & Cruz Law Offices (ACCRALAW).

jganzurez@accralaw.com.

The Mark of Cain

The government of President Rodrigo Duterte continues to rail againstthe United Nations Human Rights Council (UNHRC) and the International Criminal Court (ICC), which have been accusing Pres. Duterte of human rights violations in connection with his campaign to eliminate the drug menace in the Philippines.

According to officials of the two international bodies, Pres. Duterte, his police enforcers, and alleged vigilantes have, instead, eliminated thousands of small-time drug pushers and users, in the process killing civilians, including children, “extra-judicially” or outside the law.

Pres. Duterte’s response has been to withdraw the Philippines from the ICC, in effect saying that he and the country are now outside the jurisdiction of the court.

This time, Pres. Duterte is threatening to pull out of the UNHRC in the wake of a resolution initiated by Iceland to seek a review of allegations of Pres. Duterte’s human rights violations.

Expectedly, the Pres. Duterte government has described the resolution as an “abuse” of due process. Presidential spokesman Salvador Panelo has pointed out that only 18 countries voted in favor of the resolution, while 14 objected and 15 abstained.

Executive secretary Salvador Medialdea declared that “a minority has short-circuited and rendered inutile the time-honored mechanisms by which the UN maintains the accountability of member-states, such as the treaty body system and the UNHRC’s Universal Periodic Review.”

Last March, the Philippines also declined to ratify the Rome Statute, the treaty that formed the ICC, due to the court’s decision to conduct a preliminary examination of Pres. Duterte’s drug war.

The Pres. Duterte government maintains that the ICC does not have any jurisdiction over the Philippines “because the Rome Statute was not published in the government’s official publication.” On the other hand, the ICC insists that the withdrawal of the Philippines does not relieve the country of its obligation to cooperate with the investigation.

Whether or not this polemic exchange will result in retribution on the part of Pres. Duterte and Philippine government officials, or whether this has simply been a way for the busybodies in the ICC to reassure themselves that they are doing the job is the question.

Conflicting arguments have been thrown into the cauldron, the primary one being that“immunity from prosecutionis a doctrine of international law that allows an accused (specifically a head of state or high-ranking official) to avoid prosecution for criminal offences. Immunities are of two types. The first isfunctional immunity, or immunityratione materiae.This is an immunity granted to people who perform certain functions of state. The second ispersonal immunity, or immunityratione personae. This is an immunity granted to certain officials because of the office they hold, rather than in relation to the act they have committed.”

Here’s more:

“The Vienna Convention on Diplomatic Relations codifies essentially every country in the world promising not to do this kind of thing. This protection is extended not just to heads of state, but to all diplomats their staff and their families. It is commonly calleddiplomatic immunity.

“Of course international law is only as powerful as nations allow it to be, so if a leading nation like the US or China abused a less globally active one like Somalia or Papua New Guinea there wouldn’t be expected to be any direct meaningful repercussions.”

This happened in the case of Panama’s Manuel Noriega, although the circumstances were slightly different. The US arrested Noriega right in his own country for racketeering, drug smuggling and money laundering and he was thrown in federal prison.

But one significant insight concerns former Chile strongman Augusto Pinoche. The dictator, accused of the death and disappearance of thousands during his reign, was arrested in England in 1998 based on a warrant issued by a Spanish judge charging Mr. Pinoche with human rights abuses.

The indictment and arrest were based on existing Spanish and English laws that had been enacted to embody international treaty obligations.

According to international media, they were based on“a landmark decision by European judges and the UK’sHouse of Lords, which set aside functional as well as local immunities,by ruling that the crimes Mr. Pinoche was accused of fell within the scope of theUnited Nations Convention against Torture, beinginternational crimesso heinous that they are:

• subject to universal jurisdiction;

• absolutely prohibited (there can be no exceptions whatever to the prohibitions); and,

• responsibility cannot be derogated (no excuses whatsoever or immunity under any circumstances).

“The principle of depriving immunity for international crimes was developed further in the jurisprudence of the International Criminal Tribunal for the Former Yugoslavia, particularly in theKaradzic,Milosevic, andFurundzijacases.”

These three were East European strongmen who had committed heinous crimes in their countries and were indicted by international courts

What may give Pres. Duterte reason to worry is that both Spain and the UK voted in favor of the Iceland-initiated resolution.

There is another perspective on the issue, which is that enforcement depends not only on international treaties and domestic law, but also on the inclination of the indicting and arresting country to do so or to desist, for its own reasons.

An English court decided that a warrant could not be issued for the arrest of Robert Mugabeof Zimbabwe for international crimes because he was head of state at the time that the proceedings were initiated. Other examples of refusal to prosecute by Spain and the US, respectively, involved Cuba’s Fidel Castro and China’sJiang Zemin.

In one interesting social media exchange, someone posted: “Well,if the prime minister of Papua New Guinea (PNG) came to visit the US and the US arrested him and threw him in jail, it’s surely true that PNG would be in no position to declare war or anything like that. But there would surely be a huge international outcry. Even countries that didn’t like the PM of PNG would probably be very concerned about the precedent. It might, I suppose, depend on just WHY the US arrested him.”

Foreign Secretary Teddy Boy Locsin has used the US as an example for ignoring the UNHRC. The US is said to have protested the bias of the UN body against Israel while saying nothing about Iran and North Korea.

In 2007, France refused demands of international quarters to indict former US Secretary of Defense Donald Rumsfeld for torture and other alleged crimes committed in the course of the US invasion of Iraq. Similar demands were made against US Secretary of State Henry Kissinger.

Does that mean that Pres. Duterte is “safe” from prosecution after (or even during) his term, or does he has to watch his back while on a foreign trip?

Does he or does he not have the Mark of Cain on him?

Who knows?

One thing is certain, US federal court judges don’t seem to care about State Department or White House foreign policy. Remember how a Honolulu judge decided against the Marcos government for human rights violations in the Philippines?

Of course, one basis was that the Marcoses had fallen within the court’s jurisdiction by fleeing to Hawaii instead of Paoay. But then, what about the Philippine politicians (circa Pres. Duterte, Aquino, Arroyo, Estrada, etc.) who have assets in America?

I would worry if I were in their shoes.

 

Greg B. Macabenta is an advertising and communications man shuttling between San Francisco and Manila and providing unique insights on issues from both perspectives.

gregmacabenta@hotmail.com

The World’s 2-billion-ton trash problem just got more alarming

By Ann Koh and Anuradha Raghu

THE STENCH of curdled milk wafted from a shipping container of waste at Malaysia’s Port Klang as Environment Minister Yeo Bee Yin told a group of journalists in May she would send the maggot-infested rubbish back where it came from.

Ms. Yeo was voicing a concern that has spread across Southeast Asia, fueling a media storm over the dumping of rich countries’ unwanted waste. About 5.8 million tons of trash was exported between January and November last year, led by shipments from the US, Japan, and Germany, according to Greenpeace.

Now governments across Asia are saying no to the imports, which for decades fed mills that recycled waste plastic. As more and more waste came, the importing countries faced a mounting problem of how to deal with tainted garbage that couldn’t be easily recycled.

“Typically, 70% of a shipment can be processed, and the other 30% is contaminated with food,” said Thomas Wong, manager of Impetus Conceptus Pte., a Singaporean company that shreds locally produced plastic waste before sending it to recycling mills in Malaysia and Vietnam. Contaminated trash is sent to incinerators and landfills for a fee, but some recyclers “just find a corner and burn it,” Mr. Wong said. “The smoke smells just like palm oil, so they hide in a plantation and light up at night.”

Greenpeace investigations in Indonesia, Malaysia, and Thailand revealed illegal recycling, open burning, water contamination, and a rise in illnesses tied to pollution, the organization said in an April 23 report.

When China banned imports in January 2018, it started a domino effect. Shipments were diverted to Southeast Asia which soon became overwhelmed, forcing governments to take action.

Malaysia announced a ban in October. Thailand stopped issuing import licences last year and will likely impose a ban in 2020, according to Yash Lohia, an executive director at Indorama Ventures Pcl., a Bangkok-based plastics producer and recycler. The Philippines said it was sending 69 containers of garbage back to Canada. Indonesia said it will tighten waste-import rules after discovering shipments containing toxic waste. India and Vietnam have also announced restrictions.

Malaysia’s Ms. Yeo said garbage is still getting into the country in falsely declared cargoes, but the government hopes to stop the trade completely by the end of this year.

As Southeast Asia stops accepting the material, companies will look somewhere else, said Mr. Wong at Impetus Conceptus. “I think Africa will be next.”

WASTE GENERATION IS RISING GLOBALLY
But social media have ensured public awareness of the problem in both developing countries and the wealthy nations that export the trash. That will make it increasingly difficult to export unwanted refuse.

“Everyone can voice their opinion on waste,” said Indorama’s Lohia. “That’s when countries start taking this more seriously.”

The long-term message for nations is clear: Deal with your own garbage.

But how to do that? Humans generated 2.01 billion tons of solid waste in 2016 and by 2050, that could rise to 3.4 billion tons, according to the World Bank. About 12% of all municipal waste in 2016 was plastic — 242 million tons of it.

The solution could lie in new technologies and a change in social behavior that reduces and even eliminates the need for landfills and incinerators. Here are some of the ways that companies, local authorities and startups around the world are tackling the problem.

• MINE IT

Most rubbish ends up in a landfill or just chucked into the street to be washed away into rivers and oceans. In giant municipal dumps in countries such as India and Indonesia, informal “trash pickers,” who live near or even on the mountains of rotting garbage, make a living from things they can sell.

Companies tap the methane gas produced by decomposing organic waste trapped in the dumps.

“We are sucking out the gas and using it to make electricity,” said Sarun Tunwattanapong, who is building a five-megawatt power plant in Thailand next to a landfill in Nonthaburi province.

• BURN IT

Trash can be incinerated to produce electricity. In Singapore, the residual ash is dumped by barge to create a new island. But it’s expensive. Dioxins and other emissions produced during burning need to be treated by electrostatic precipitators and lime powder. And it still produces greenhouse gases.

Solid waste can also be gasified at high temperatures using plasma torches to produce syngas, metals, and a glass-rock slag for paving roads. Maharashtra Enviro Power Ltd.’s plant in Pune, India, turns hazardous factory waste into feedstock for boilers.

• SCULPT IT

Artist Joseph-Francis Sumegne scoured rubbish dumps in the 1990s for junk to make the 12-meter-tall New Statue of Liberty monument in Douala, Cameroon. Filipino Oscar Villamiel salvaged thousands of doll heads and debris from a landfill in Manila to create the Payatas installation in 2012. This year, UK duo Tim Noble and Sue Webster’s shadow 2002 waste sculpture Real Life is Rubbish was sold at auction at $75,000.

“Infinite wealth, infinite detritus,” said Bridget Tan, director of the Institute of Southeast Asian Arts and Galleries at Singapore’s Nanyang Academy of Fine Arts. “There’s something to be said for the irony in the obscene excess of consumption.”

• SORT IT

Sorting trash can be an unpleasant job, one reason why a lot of rubbish ends up in developing countries with lower wages.

But technology is increasingly automating the task and making it more efficient. Helsinki’s Zen Robotics Ltd. has developed robots that grab wood and metal from conveyor belts of trash. And in Angelholm, Sweden — ranked the country’s best municipality for waste management — trash collection company NSR AB uses near-infrared beams to identify different types of plastic as the rubbish shoots along a belt. Jets of air remove the plastic items, leaving non-recyclable packaging and organic waste to head to an incinerator to produce power.

Artificial-intelligence systems are being developed to make the process more efficient. “Robots could be an interesting future alternative if they learn to identify plastic material types and if they can sort fast enough,” said Pernilla Ringstrom, a manager at NSR, which collected 538 tons of plastic in 2018 that was made into composite ties for railways or sold to companies in Sweden and Germany.

One challenge is getting people to sort their waste at home. In Taiwan, garbage trucks play classical music tunes like Beethoven’s Fur Elise to alert people to run down from their apartments. Plastics and aluminum cans get tossed into a white truck before it leaves while incineration waste goes into a yellow one.

• WASH IT

In Japan and Europe, recycling rates exceed those in Southeast Asia because citizens give their trash a quick rinse after pouring out leftover liquids, according to Impetus’s Mr. Wong. Food, shampoo and coffee all prevent plastic waste from being recycled. “In Singapore, only 4% of plastics are recycled and the remaining 96% are thrown out,” said Wong. “In Japan and Europe, people take more care and wash things, so their trash isn’t as messy.”

• EAT IT

Singapore’s Taraph Technologies is one of the companies using bacteria or organic processes to tackle the issue. It’s harnessing natural enzymes that digest plastics and turn them into chemicals normally produced in oil refineries. Mono-ethylene glycol from enzyme-eaten plastic bottles can be sold at prices 10 times higher than the value of trash, said Taraph co-founder Liew Mei Shan, who expects the technology to be commercially available in 5 to 10 years.

“Waste collection is a cost,” said Liew. “If we can transform that into a revenue unit to cover expenses, it will become profitable for the collector.”

• REPLACE IT

Startups and companies around the world are looking at alternatives to plastic, which has outpaced the production of almost every other material since the 1950s. Paper straws are making a comeback after widespread social-media campaigns. Food boxes and disposable cutlery are being made from grains or sugarcane waste. As more countries ban plastic bags, supermarkets are looking for other ways to wrap groceries. In Vietnam, some are even wrapping vegetables and meat in banana leaves.

A more high-tech route is being taken by companies such as Netherlands-based Plantics BV, which is using plant-based resins made by polymerizing glycerol and citric acid that can be used instead of petrochemical-derived plastics.

Singapore-based RWDC Industries, which just raised $35 million in two rounds of funding, has launched Solon, a biodegradable polymer produced by microbial fermentation of plant-based oils.

“Plastic takes seconds to produce, minutes to use, but takes centuries to degrade,” said Zhaotan Xiao, the company’s president for Asia-Pacific. “Why are we making single-use disposables with something indestructible?”

• STOP IT

Ultimately, the best solution is to not produce any rubbish that can’t be recycled. That’s the aim of the residents of Kamikatsu, a mountainous village in Japan. Residents already wash oil off gyoza plastic packaging and sort their trash into 45 categories. Styrofoam and dirty plastic are made into lumps of solid fuel, which can be burned instead of coal. Polyester clothes are sold in a local second-hand shop. Clean plastic is taken away by companies such as Kao Corp. for recycling.

Akira Sakano, who heads the town’s Zero Waste Academy, wants to go further. She’s working on eliminating the village’s waste production by 2020. One trial project asks detergent suppliers to set up a stall where people can refill washing-liquid bottles. At a community craft center, seamstresses stitch together a jacket out of red children’s flags.

“We already have solutions in our hands,” said Ms. Sakano. “Innovations like bioplastics and technology are necessary, but also how do we turn our knowledge of sustainable materials in our culture or community into modern life?”

 

BLOOMBERG

PBA Commissioner’s Cup eliminations end today

By Michael Angelo S. Murillo
Senior Reporter

THE elimination round of the Philippine Basketball Association Commissioner’s Cup ends today and it still carries much pack with the final positioning and playoff berth at stake.

Set at the Smart Araneta Coliseum, the San Miguel Beermen (5-5) tussle with the Meralco Bolts (3-7) in the 4:30 p.m. opener while the TNT KaTropa (9-1) battle the Magnolia Hotshots Ang Pambansang Manok (5-5) in the 7 p.m. main game.

The Beermen are currently on a roll, winning three straight to infuse life back to their once-flickering quarterfinal hopes.

A win today over Meralco would put San Miguel in either the fifth or sixth place, depending on the outcome of the second game since the Beermen have an identical card with the Hotshots.

If San Miguel and Magnolia win, the former drops to sixth place since it lost to the latter in their lone encounter in the elimination round. In such a setup, the Beermen will face the third-seeded Blackwater Elite in a best-of-three quarters with the fifth-seeds Hotshots setting up a date with the defending champions and fourth-seeds Barangay Ginebra San Miguel Kings in a best-of-three “Manila Clasico” quarterfinals.

In the event San Miguel wins and Magnolia loses, the Beermen get fifth spot and face off with the Kings and the Hotshots fall to seventh and meet Northport Batang Pier (9-2) ¡with a twice-to-win disadvantage.

On the flip side if San Miguel loses and Magnolia wins, the former falls to sixth.

If San Miguel and Magnolia lose today, however, they fall to a three-way tie with the idle Rain or Shine Elasto Painters at 5-6. In such a scenario, Magnolia takes fifth spot on the strength of having the highest quotient among the three with Rain or Shine getting sixth. The Beermen, with the worst quotient, drop to seventh and will face the second-seeded team Northport (9-2) with a twice-to-win disadvantage.

For Meralco, loser of its last five matches, today’s match with San Miguel is do-or-die.

A win takes the Bolts to 4-7, tied with the Alaska Aces and Phoenix Pulse Fuel Masters.

But with a superior quotient over Phoenix, Meralco and Alaska will play in a playoff match for the eighth seed and the Fuel Masters outright eliminated.

In the event Meralco loses, it is outright eliminated, leaving the Aces and the Fuel Masters to dispute the final quarterfinal spot in a playoff.

TNT, meanwhile, is already assured of a top-two finish and a twice-to-win advantage in the quarterfinals.

A victory today over the Bolts pads TNT’s record to 10-1, earning number one seed and will take on the eighth seed which could either be Alaska, Phoenix or Meralco. A loss though drops the KaTropa to second behind Northport, which dealt them their lone loss in the tournament to date.

Tampa Bay Rays’ d’Arnaud hits three home runs to beat Yanks

NEW YORK — Tampa Bay leadoff man Travis d’Arnaud hit three homers, including a go-ahead three-run shot with two outs in the ninth inning off Aroldis Chapman, and the Rays stunned the host New York Yankees 5-4 Monday night in the opener of a four-game series.

After hitting solo homers in the first and third off James Paxton, d’Arnaud was down to his last strike against Chapman (2-2). On the eighth pitch of his final at-bat, with a full count, d’Arnaud lifted a slider into the second row of the right field seats.

The Rays won their third straight head-to-head meeting with the Yankees — all by one run.

Edwin Encarnacion homered twice for his 36th career multi-homer game, and he gave New York a 4-2 lead with a two-out homer off eventual winning pitcher Andrew Kittredge (1-0) in the eighth.

CARDINALS 7, PIRATES 0
Miles Mikolas scattered eight hits in St. Louis’ first complete-game shutout of the season, a defeat of visiting Pittsburgh in the opener of a three-game series.

The Cardinals, who have won three straight, have thrown four shutouts this year, three of them started by Mikolas. The Pirates have lost four in a row.

Mikolas (6-9) walked none and struck out three. He needed just 100 pitches to go the distance, including 22 pitches to retire the final six batters in order.

DODGERS 16, PHILLIES 2
Cody Bellinger hit two home runs, Max Muncy and Alex Verdugo each homered, and Los Angeles routed host Philadelphia.

Bellinger finished with four hits, including his 32nd and 33rd home runs of the season. Verdugo had three hits for the Dodgers, who ripped 19 hits and won their third game in a row.

Dodgers lefty Clayton Kershaw (8-2) threw 61 pitches through the first three innings and then settled down to toss six solid innings. Kershaw gave up four hits and one run while striking out seven on 101 pitches, 68 for strikes.

BRAVES 4, BREWERS 2
Freddie Freeman delivered a three-run homer for the second straight game, and Atlanta hung on to win at Milwaukee.

Freeman drove his 25th homer over the center field fence in the fourth inning to break up a scoreless game and send the Braves on their way to their fifth straight win. Atlanta won for the eighth time in its past nine games. Freeman is 2-for-15 since the All-Star Game, both hits three-run home runs.

The Braves improved to 3-1 against the Brewers and to a National League-best 30-18 on the road. Atlanta starter Max Fried (10-4) pitched five shutout innings before leaving the game with a blister on his left index finger.

REDS 6, CUBS 3
Eugenio Suarez, Yasiel Puig and Curt Casali homered, and Cincinnati pulled away to defeat host Chicago.

Luis Castillo (9-3) struck out 10 batters over six innings in his first start since appearing in the All-Star Game. Cincinnati won for only the second time in the past six games. Kyle Schwarber went 2-for-5 with a solo home run to lead Chicago at the plate. Jason Heyward finished 2-for-4 with an RBI for the Cubs, whose three-game winning streak ended.

RED SOX 10, BLUE JAYS 8
Michael Chavis crushed a first-inning grand slam, and Andrew Benintendi had two hits and three RBIs as host Boston held off Toronto.

Xander Bogaerts had three hits, and Mookie Betts, Rafael Devers and Brock Holt added two apiece as the Red Sox snapped a two-game skid in the opener of a four-game series. Rick Porcello (7-7) earned the win, allowing four runs on eight hits and no walks while striking out two over six innings.

Billy McKinney hit a two-run home run for the Blue Jays, who lost for the sixth time in their past eight games.

GIANTS 19, ROCKIES 2 (GAME 1)
Brandon Crawford hit two home runs and drove in a career-high eight runs as San Francisco continued its hot hitting in a romp over Colorado in the opener of a doubleheader at Denver.

The Giants jumped on Rockies starter German Marquez (8-5) for 11 runs and 11 hits in 2 2/3 innings en route to the fifth double-digit run explosion in their past 11 games. San Francisco totaled 94 runs in those 11 games. — Reuters

Stags book 2nd victory in a row; Knights win

THE San Sebastian Stags remained unscathed in Season 95 of the National Collegiate Athletic Association, racing to their second straight win with a rout of the Mapua Cardinals, 92-68, on Tuesday at the FilOil Flying V Arena in San Juan City.

Using a strong opening half, the Stags buried the Cardinals in a hole too deep from which the latter could not recover from, handing the win to San Sebastian that improved it to 2-0 early in the season for joint tournament leadership.

In the opening game, the Letran Knights (2-1) notched their second straight win, beating the Jose Rizal University Heavy Bombers, 55-43.

It was all San Sebastian over Mapua, taking the opening frame, 16-11, and bloating things up, 46-23, at the half.

The Stags continued to pile it over their opponents on the lead of veterans RK Ilagan and Alvin Capobres in the third canto.

They did not allow the Cardinals much leverage to have a comeback, keeping their 23-point cushion, 68-45, heading into the final frame.

With the match firmly under its control, San Sebastian spent the early goings of the period checking the Cardinals.

The count was at 82-53 midway into the payoff quarter, and the Stags on top, and San Sebastian cruised to the win from there.

Ilagan top-scored for San Sebastian with 20 points to go along with eight assists.

Allyn Bulanadi added 16 points and Alex Desoyo 14.

Noah Lugo, meanwhile, led Mapua (0-2) with 13 points.

Meanwhile in the first game, Letran booked back-to-back wins after opening its season campaign with a loss.

The Knights used an explosive second quarter to create distance from the Bombers on their way to the victory.

Bonbon Batiller paced Letran with 14 points.

For JRU (0-3) it was RY Dela Rosa who showed the way with 15 markers. — Michael Angelo S. Murillo

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