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SONAsaan na ba talaga tayo ngayon? At hindi SONAsaan na tayo?

(First of two parts)

I admit I did not watch the State of the Nation Address (SONA) live on July 22. But I had to see it because I teach Politics and Governance in the Loyola School of Social Sciences in the Ateneo de Manila University.

I heard the President was one hour late to the event. If my ears did not deceive me, I counted 39 bursts of applause and 22 of laughter interrupting the President’s 93-minute speech. And, as expected, I also counted at least 10 curses.

It is interesting to note that was there was no applause nor laughter when the President talked about the West Philippine Sea and China and about corruption (except maybe one laugh?).

“So where are we (the Philippines) really now today?,” he asked.

I will now quote parts of the President’s speech and give my own (right or wrong) unsolicited insights.

1. “But the landslide victory of the Administration candidates as well as the latest survey results show that my disapproval rating is at 3%”

True, the Administration candidates won by a landslide. The conduct of the recent automated election, like all other Philippine elections, was not without criticism, however. First, the Liberal Party, known as the legitimate opposition, was not recognized as such. The election watchdog NAMFREL withdrew at the last moment because they would not to be given the data for its open election data website. After 25 minutes of counting by the Transparency Server, everything stopped for the next seven hours. More 500 SD chips were replaced a few days before the election. It would be good for an independent IT organization to analyze and determine what actually happened during this last election and conclude what the effects of these events were.

Some would also argue over the accuracy of the 3% disapproval rating reported by the Social Weather Station (SWS) and similarly by Pulse Asia, particularly when the former also reported that 90% of respondents do not trust China and three of five would like the International Human Rights team to investigate the spate of killings in the country. But both reports give the President bragging rights and emboldens his officials to do what he commands — rightly or wrongly.

2. “It has been three years since I took my oath of office, and it pains me to say that we have not learned our lesson. The illegal drug problem persists… I respectfully request Congress to reinstate the death penalty for heinous crimes (applause) related to drugs as well as plunder.”

A far cry from his earlier declaration “I will resign if I do not eliminate drugs in six months,” the President now admits illegal drugs continue to pour in, even near Malacañang Palace. Where are the drugs coming from? How is the supply — mostly coming from China as Senator Ronaldo “Bato” dela Rosa once said during the campaign — able to pass through Customs?

What lessons have we not learned? That Tokhang that has killed 24,000 people including children, but the big time drug lords (Peter Lim, Kenneth Dong, etc.) as identified by the Philippine Drug Enforcement Agency have not been arrested nor prosecuted? Will the death penalty stop such shipments when no big time drug lords have been arrested?

Interestingly, President Duterte has a former president, Joseph Estrada, a senator, Ramon Revilla, Jr., and maybe one or two others found guilty of plunder, among his friends!

3. “Our warped loyalty to family, friends, and tribal kin continue to exact a heavy toll on our programs designed to uplift the poor and reassure our investors, our foreign investors local, and the business sector in this country.”

If one ties this up with the many controversial political dynasties (the President’s family included) in the country (although it’s the people who voted for them) and friends (Gloria Macapagal-Arroyo, Ramon “Bong” Revilla, Juan Ponce Enrile, Jinggoy Estrada, and Imelda Marcos who has been convicted but remains free, the Tulfos, and Bong Go who’s family is cornering big government projects in Davao) and the President may have a point here.

4. “I have fired or caused the resignation of more than a hundred officials and appointees of government without regard to relationship, friendship, and alliance.”

While a number of high officials have been fired or forced to resign by the President, a good number have actually just been “promoted” or “assigned” to other government positions after being “fired.” Take the case of former Philippine National Police General and Bureau of Customs (BOC) Chief Isidro Lapeña who was fired when a P11 billion ($533 million) drug shipment was released in Manila in 2018 — he was transferred to a harmless cabinet post as head of the Technical Skills and Development Agency. The same thing happened with another former BoC Commissioner Nicanor Faeldon who resigned as customs chief following congressional hearings into the smuggling of P6.4-billion worth of shabu. He was first appointed deputy administrator in the Office of Civil Defense and is now Director General of the Bureau of Corrections.

5. “We are long on rhetoric but short on accomplishments… That is why I implore those who occupy positions of power and authority to let your deeds and accomplishments do the talking. Lead by example. Words ring hollow when not followed by positive and prioritized actions.”

Walk the walk as they always say. It’s nice to hear promises like “Give me six months, I will eliminate drugs or else I will resign.” Or “I will jetski to Panatag Shoal and plant the Philippine flag,” or “solve traffic” or “I will stop corruption…” Especially during the campaign period.

6. “As of July 9, 2019, we collected more than P61 billion from GOCCs or government corporations, 32% of which, or P16 billion, from PAGCOR. [applause] This is more than the P36 billion collected in 2017. My salute to Andrea Domingo. [applause] Magpasugal ka pa, ma’am, nang marami (Gamble some more, ma’am, a lot). [laughter]”

Gambling is illegal in China. The news media has recently been flooded with stories on the influx of Philippine Offshore Gaming Operations (POGO) with 100,000 Chinese workers who are allegedly not paying taxes. Would the Roman Catholic Church accept such money if the majority of the gamblers are foreigners? Just asking.

7. “Simplify and make your services responsive to — client-friendly. Your client is the Filipino, our employer — from where the money in our pockets come from, from your salaries.”

My own experience getting passports for myself and my children in an offsite facility in Marikina in 2018 was highly positive and worth thanking the Department of Foreign Affairs and the Duterte Administration for.

8. “Equipped with political will, the government ordered the closure of Boracay Island for six months to prevent further deterioration. We cleaned and rehabilitated the island and I allowed it to heal naturally.”

It was highly commendable of government to clean Boracay Island. But news of the influx of Chinese business establishments and tourists during its opening, a mountain flattened during the closure, and recent flooding (which normally happens when trees are cut — a no brainer) at the height of Typhoon Falcon somehow negates such high commendation.

(To be continued.)

 

Benjamin Roberto Gomez Barretto is currently a part time professor with the Political Science Department of Ateneo de Manila University. He is also Vice-President for Planning and Community Services of the Pamantasan ng Lungsod ng Marikina as well as its Dean for the College of Management and Technology. He was the former Executive Director of the Jesuit Volunteers Philippines Foundation Inc. and was a former Administrator of the Ateneo School of Government.

Promoting Corporate Governance under the Revised Corporation Code — 3

(Third of three parts)

This is an abridged version of the talk I recently gave to the MAP Corporate Governance Committee officers and members on the Revised Corporation Code which was enacted into law on Feb. 20, 2019.

MORE TRANSPARENCY
There are many new provisions in the Code that are for more transparency, a component of good corporate governance. Sec. 73 specifies the books and records that must be kept at the principal office:

1. Articles and by laws and amendments;

2. Current ownership structure and voting rights of the corporation, lists of stockholders or members, group structures, intra-group relations, ownership data and beneficial ownership;

3. Names and addresses of all the members of the board of directors and trustees and executive officers;

4. A record of all business transactions;

5. A record of the resolutions of the board of directors or trustees and of the stockholders or members;

6. Copies of the latest reportorial requirements submitted to the SEC;

7. Minutes of all meetings of the stockholders or members, directors or trustees reiterating the contents as were set forth in Sec. 74 of the old Code: a.) time and place of meeting, b.) how it was authorized, c.) notice given, d.) the agenda, e.) whether it was regular or special, f.) its object if special, g.) those present and absent, h.) every act done or ordered done at the meeting, i.) upon demand of a director, trustee, stockholder or member, when any director, officer stockholder or member entered or left the meeting, j.) upon similar demand, the yeas and nays on any motion or proposition and a record thereof carefully made, k.) the protests of a director, trust, stockholder or member on any action or proposed action must be recorded in full upon their demand.

Moreover, Sec. 49 enumerates in detail what every board shall endeavor to present to stockholders or members at each regular meeting:

a.) Minutes of the most recent regular meeting including among others: voting and vote tabulation procedures; questions from the floor; matters discussed and resolutions reached; record of voting results for each agenda item; list of directors, officers and stockholders who attended meeting; other items SEC may require in compliance with corporate governance standards [note: these are matters added to those required in Sec. 73 or in paragraph (7) above];

b.) Members’ list for nonstock corporations, and for stock corporations the material information on current stockholders and voting rights;

c.) Detailed, descriptive, balanced and comprehensible assessments of the corporation’s performance, which shall include information on any material change in the corporation’s business, strategy, and other affairs;

d.) Financial report; adequacy of internal controls or risk management systems and statement of all external audit and non-audit fees;

e.) Dividend policy, why not given;

f.) Directors or trustees profiles which shall include qualification, relevant experience, length or service in the corporations trainings and continuing education attended and their board representation in other corporations;

g.) A director or trustee attendance report in committee meetings or stockholders and board meetings;

h.) Appraisals and performance reports for the board and criteria and procedure for assessment;

i.) A director or trustee compensation prepared in accordance with code and rules SEC may prescribe;

j.) Director disclosures on self-dealings and related party transactions; and, or,

k.) The profiles of directors nominated or seeking election or reelection.

One of a stockholder’s important rights is the right of inspection, and Sec. 73 has important changes:

1. A representative of the director, trustee, stockholder or members may exercise the right;

2. The inspecting or reproducing party shall remain bound by confidentiality rules under prevailing laws, such as the rules on trade secrets or processes under RA 8293 IP Code, RA 10173 Data Privacy Act of 2012, RA 8799 SRC and the Rules of Court;

3. Further, a requesting party should be a non-stockholder (or member) of record;

4. A competitor, director or officer, controlling stockholder or otherwise represents the interests of a competitor shall have no right to inspect or demand reproduction;

5. The requesting stockholder, if rejected without cause, may avail of a summary procedure whereby within five days from receipt of a report from the stockholder concerned, the SEC shall conduct a summary investigation and order forthwith the inspection or reproduction.

INVOLUNTARY DISSOLUTION AND FORFEITURE OF CORPORATE ASSETS
Sec. 138 on Involuntary Dissolution now provides the specific grounds for dissolution motu proprio by the SEC or upon verified complaint by any interested party. Sec. 138 (e) is the particular portion which is intended to prevent the corporate vehicle from being used relative to certain criminal activities and impose criminal liability on the corporation itself in accordance with the UNCAC model. A corporation may thus be subject to involuntary dissolution proceeding before the SEC:

a. Upon finding by final judgment that the corporation: 1. was created for the purpose of committing, concealing or aiding the commission of securities violations, smuggling, tax evasion, money laundering or graft and corrupt practices act; 2. committed or aided in commission of securities violations, smuggling, tax evasion, money laundering or graft and corrupt practices and its stockholders knew of the same; and, 3. repeated and knowingly tolerated the commission of graft and corrupt practices or other fraudulent or illegal acts by its directors, trustees, officers or employees.

Take note — if the corporation is ordered dissolved by final judgment under paragraph (e), its assets, after payment of its liabilities, shall, upon petition by SEC with the appropriate court, be forfeited in favor of the national government without prejudice to the rights of innocent stockholders and employees for services rendered and to the application of other penalty or sanction under the Code or other laws.

MORE ENFORCEMENT POWERS FOR THE SEC
Some of the new enforcement powers of the SEC are also found in the Securities Regulation Code:

1. Conduct investigation and prosecute offenders;

2. Administer oaths;

3. Enjoin, prevent violations through the issuance of a cease and desist order (CDO): a. upon reasonable basis to believe a person has violated or about to violate the Code, rule, regulation or order of the SEC and; b. ex parte to enjoin an act or practice which is fraudulent, can be reasonably expected to cause significant, imminent and irreparable danger or injury to public safety or welfare;

4. Cite a person in contempt;

5. Exercise its visitorial power to examine and inspect records, regulate and supervise activities, enforce compliance and impose sanctions over all corporations.

Sec. 158 provides the administrative sanctions imposable by the SEC depending on extent of participation and seriousness of violation: a. fine from P5,000 to P2 million and not more than P1,000 for each day of continuing violation but in no case to exceed P2 million; b. permanent CDO; c. suspension or revocation of the certificate of incorporation; and, d. dissolution and forfeiture of assets under the conditions in Sec 138 (e).

The following new provisions refer to specific criminal violations and their corresponding penalties which the court, upon conviction, may impose these fines:

• Sec. 159, unauthorized use of corporate name, P10,000 to P200,000

• Sec. 160, violation of director’s (trustee’s, officer’s) disqualification provision, P10,000 to P200,000 at discretion of court and permanent disqualification. Where violation is injurious or detrimental to public, P20,000 to P400,000 plus the director, trustee or officer may be permanently disqualified.

• Sec. 161, violation of duty to maintain records, allow their inspection or reproduction, P10,000 to P200,000 if injurious or detrimental to public, P20,000 to P400,000 to be imposed on the corporation or those responsible.

• Sec. 162, willful certification of incomplete, inaccurate, false or misleading statements or reports, P20,000 to P200,000. When wrongful certification is injurious or detrimental to the public, the auditor or responsible person may also be punished with P40,000 to P400,000. Any person responsible is liable.

• Sec. 163, an independent auditor, in collusion with directors or representatives of the corporation, certifies financial statements despite its incompleteness or inaccuracy, failure to give a fair and accurate presentation of condition, despite containing false or misleading statements, P80,000 to P500,000. When the statement or report is fraudulent, has the effect of causing injury to the general public, the independent auditor or responsible officer, P100,000 to P600,000.

• Sec. 164, obtaining corporate registration through fraud, P200,000 to P2 million if injurious or detrimental to public, P400,000 to P5 million will be imposed on those responsible for the formation of the corporation and those who assisted directly or indirectly therein.

• Sec. 165, fraudulent conduct of business, P200,000 to P2 million, if injurious or detrimental to the public, P400,000 to P5 million will be imposed on the corporation.

• Sec. 166, acting as intermediaries for graft and corrupt practices makes the corporation liable for P100,000 to P5 million; if any director, officer, employee, agent or representative engaged in graft and corrupt practices, the corporation’s failure to install: (a) safeguards for the transparent and lawful delivery of services, and, (b) policies, code of ethics and procedures against graft and corruption shall be prima facie evidence of corporate liability.

• Sec. 167, engaging intermediaries for graft and corrupt practices, the corporation is liable P100,000 to P1,000,000

• Sec. 168, tolerating graft and corrupt practices — the director, trustee, or officer who knowingly fails to sanction, report or file the appropriate action with proper agencies, allows or tolerates the graft and corrupt practices or fraudulent acts by its directors, trustees, officers or employees, P500,000 to P1 million.

• Sec. 169, retaliation against whistleblowers — any person who knowingly and with intent to retaliate, commits acts detrimental to a whistleblower, P100,000 to P1,000,000

• Sec 170, other violations of the Code; separate liability of P10,000 to P1 million; if committed by the corporation, after notice and hearing may be dissolved in appropriate proceedings before SEC which dissolution will not preclude appropriate action against director, trustee or officer responsible

Liability for any of the foregoing offenses shall be separate from any other administrative, civil or criminal liability under the Code and other laws. While imprisonment is not a penalty, criminal charges may be brought for falsification, use of a falsified document and other penal offenses or statutory offenses like violation of the anti-graft and corrupt practices act, tax evasion, smuggling, money laundering, that have imprisonment as penalty.

While the foregoing provisions may single out the corporation as the person liable, directors, officers, employees, and even third persons may also be prosecuted and imposed the same fines as penalties under Sections 171 and 172.

(The article reflects the personal opinion of the author and does not reflect the official stand of the Management Association of the Philippines or the MAP)

 

Atty. Teresita “Tess” J. Herbosa is of Counsel of the Angara Abello Concepcion Regala & Cruz Law Offices (ACCRALAW) and former Chair of the Securities and Exchange Commission (SEC).

tjherbosa@accralaw.com.ph

map@map.org.ph

http://map.org.ph

No climate crisis

WASHINGTON, DC — The various presentations at the Heartland Institute’s 13th International Conference on Climate Change (ICCC-13) on July 25 in this city reiterated what many scientific papers from the fields of meteorology, geology, climatology, physics, chemistry, biology, mathematics, etc. have found — there is no climate crisis or climate emergency.

Global warming is true, climate change is true, but they are largely natural, nature-made and not man-made (or anthropogenic), and cyclical. What is termed and called by others as “extreme weather” has no baseline period as basis of comparison. So when asked, “extreme weather compared to when, 200 or 800 or 10,000 or 10 million years ago?” the answer is often the sound of silence.

The fact is that there was “extreme weather” during the Roman warm period, Medieval warm period, until the current modern warm period, and in the next hundreds and thousands of years into the future.

Dr. Roy Spencer, a climatologist at University of Alabama in Huntsville (UAH) observed that the Coupled Model Intercomparison Project (CMIP) of the World Climate Research Program (WCRP) models are “warming about twice as fast as both UAH satellite temperatures and the average of four global reanalysis datasets. And even if observed warming is due to increasing CO2, it is too weak to notice in our lifetime.”

Dr. Nir Shavi, a physicists at the Hebrew University of Jerusalem, argued that “actual evidence points to a strong solar climate link and a low climate sensitivity, future warming will be benign, and that solar activity should be taken but it is ignored by the UN IPCC (United Nations Intergovernmental Panel on Climate Change).”

Dr. Jay Lehr, a hydrologist and famous author of a thousand-plus scientific articles, noted that there are at least 12 climate variables — changes in seasonal solar irration, energy flows between the air and land, etc. — that people should look into and study before declaring with certainty that there is indeed a climate emergency.

Governments, upon the prodding of the UN, make policies bases on wrong “climate crisis” scenario of “unprecedented, unequivocal global warming.”

Thus in the Philippines, we enacted the Renewables Energy (RE) Act of 2008 (RA 9513) which gives plenty of special privileges to solar/wind/biomass/hydro power producers, like the feed in tariff (FIT) or guaranteed price for 20 years, to “help save the planet.” The higher oil, diesel, coal taxes under the TRAIN law (RA 10963) is also done along this goal.

There were two reports in BusinessWorld in July 29 related to this:

1. “NGOs call for more aggressive moves to adopt renewable energy”;

2. “Deputy Speaker vows ‘big push’ on department bills, pay hikes.”

Pushing for more intermittents like solar/wind power will further raise electricity prices. Expanding some existing bureaus into full Departments will further require more taxes to finance more Departments and bureaus.

Many East Asian economies hardly pay attention to injecting more solar/wind into their national electricity grid. In particular, Indonesia, Malaysia, South Korea, Singapore, Vietnam, Taiwan, and Hong Kong have a solar and wind share of only 2% or lower of their total electricity generation. And these economies generally have high per capita income (see table).

To create more climate-related agencies — the Department of Disaster Reduction and Department of Water Resources — on top of having the Department of Environment and Natural Resources and the Climate Change Commission, etc. and they will create more regulations to “fight” less rain and more rain, less flood and more flood, less cold and more cold.

We should not further expand bureaucracies but instead, expand conventional energy sources to significantly expand our electricity production, which will help bring down energy prices and make electricity supply become more stable.

 

Bienvenido S. Oplas, Jr. is the president of Minimal Government Thinkers.

minimalgovernment@gmail.com

PSE index inches higher ahead of Fed meeting

By Arra B. Francia, Senior Reporter

THE MAIN INDEX eked out gains on Monday as investors mostly stayed on the sidelines ahead of the US Federal Reserve’s policy meeting.

The benchmark Philippine Stock Exchange index (PSEi) added 0.05% or 4.53 points to close at 8,188.52, managing to post gains despite being sold down for most of the day. The broader all-shares index likewise rose 0.15% or 7.44 points to 4,963.04.

“The main index was down for most of the day on below average trading volumes. Investors are on the sidelines as we await the outcome of the US Federal Reserve meeting on Wednesday,” AAA Southeast Equities, Inc. Research Head Christopher John Mangun said in an e-mail.

The US central bank’s policy-setting Federal Open Market Committee (FOMC) will hold its two-day policy meeting from July 30-31, where it is expected to cut key interest rates by 25 basis points.

“Many expect the FOMC to cut the funds rate by 25 bps at the July meeting, as virtually all the signals from the Committee point this way. However, decision will be released only on Wednesday night (Manila time), and this event has kept many at bay,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a mobile phone message.

Four sectoral indices moved to positive territory, led by mining and oil which jumped 0.62% or 49.44 points to 7,920.41. Property climbed 0.43% or 18.76 points to 4,365.85; holding firms gained 0.12% or 9.56 points to 8,008.68, while financials firmed up 0.01% or 0.36 point to 1,848.85.

In contrast, services plunged 0.99% or 16.51 points to 1,635.39, while industrials shed 0.16% or 18.53 points to 11,449.21.

Turnover was thin at P4.84 billion after some 667.34 million issued switched hands, lower than Friday’s P5.90 billion.

Foreign investors remained in net selling position at P180.74 million, lower than the previous session’s P278.02 million.

Decliners outpaced advancers, 100 to 91, while 53 names were unchanged.

“The PSEi was able to stay above the support at 8,150. However, it is looking weaker and weaker by the day. We will not see the market go up until we get more volume. Hopefully it can still trade between the range of 8,150 and 8,300,” AAA Equities’ Mr. Mangun said.

Meanwhile, Wall Street indices ended higher last Friday on the back of strong earnings and better-than-expected US economic growth data. The Dow Jones Industrial Average climbed 0.19% or 51.47 points to 27,192.45. The S&P 500 index jumped 0.74% or 22.19 points to 3,025.86, while the Nasdaq Composite index surged 1.11% or 91.67 points to 8,330.21.

Positive sentiment failed to touch Asian stocks, as most also focused on FOMC’s decision as well as the resumption of trade talks between the US and China set on July 30.

Peso weakens vs dollar on US GDP growth data

THE PESO declined due to better-than-expected US economic growth. — BW FILE PHOTO

THE PESO weakened against the dollar on Monday due to a stronger-than-expected US gross domestic product (GDP) report.

The peso closed Monday’s session at P51.09 versus the greenback, 3.5 centavos weaker than its P51.055-per-dollar finish on Friday.

The peso opened the session at P51.005 per dollar, surging to as high as P50.93 intraday. However, its worst showing stood at P51.10 against the US currency.

Trading volume thinned to $767.25 million from the $859.34 million that switched hands the previous session.

A trader said the peso traded within a tight range yesterday, strengthening initially as it rode on Friday’s momentum.

“However, it was quickly supported at around P50.95 and it eventually (weakened) in line with other currencies as the dollar strengthened during Asia time,” the trader said in a phone interview.

Another trader said the local unit weakened on reduced bets of a 50-basis-point cut in the US Federal Reserve policy rate cut following the release of a stronger-than-expected second-quarter GDP report.

US economic growth slowed to 2.1% in the second quarter from 3.1% the previous quarter, even as strong consumer spending tempered the effects of declining exports and smaller inventory build.

However, the economy slowed less than expected from the 1.8% expected by economists polled by Reuters.

“I think the market is just on a wait-and-see mode and trade within range ahead of the Fed meeting this week,” the first trader added.

The US central bank is widely expected to cut interest rates by at least 25 basis points during the July 30-31 meeting of its policy-setting Federal Open Market Committee.

Earlier this month, Fed chair Jerome Powell hinted on a cut in benchmark rates, saying the central bank will “act as appropriate” to sustain expansion as “crosscurrents” such as trade tensions and concern on global growth are weighing on the economy.

For today, the first trader expects the peso to trade between P50.95 and P51.15 versus the dollar, while the other gave a P51-P51.20 range.

Most Asian currencies also lost steam on Monday as the dollar strengthened on the back of strong US GDP data and investors remained cautious ahead of this week’s Federal Reserve meeting where a rate cut has been largely priced in.

Investors will also be watching the resumption of Sino-US talks as the world’s top two economies make yet another attempt to resolve their differences on trade and other issues that have roiled financial markets for over a year now.

The dollar clung to a two-month high against a basket of currencies in Asia after better-than-expected US GDP data last week enhanced its yield attraction against rival currencies. — Karl Angelo N. Vidal with Reuters

Duterte wants Batanes patrols amid China row

PRESIDENT Rodrigo R. Duterte wants regular patrols near the islands of Batanes province amid China’s land reclamation activities in the South China Sea.

The president, who visited the northern province on Sunday after a series of earthquakes hit Itbatan town at the weekend, said the Philippine Coast Guard should ensure Batanes “remains ours.”

“You might want to ask the Coast Guard to come here,” Mr. Duterte told Defense Secretary Delfin Lorenzana during a briefing with Batanes officials, according a transcript emailed by the presidential palace. “Not everyday but just to assure that those islands will remain ours.”

Mr. Duterte said the government had bought a fast boat that the Coast Guard could use to patrol the northern islands.

He said China is known to have grabbed some lands and the Philippines cannot afford to do the same. “If we steal from China, we might get fired at by missiles,” he said in Filipino. It’s the government’s job, he added to “preserve the Republic of the Philippines.”

The Coast Guard last week took delivery of assets meant to upgrade its sea patrol capabilities and response to natural disasters. The assets included 73 rubber boats with outboard motors, 12 rigid-hulled inflatable boats, 90 pickup trucks, seven buses and five ambulances.

China’s neighbors are racing to empower their Coast Guard fleets amid increasing tensions in the South China Sea.

China claims sovereignty over more than 80 percent of the South China Sea based on its so-called nine-dash line drawn on a 1940s map.

It has been building artificial islands in the disputed Spratly Islands and setting up installations including several runways.

Mr. Duterte has sought closer investment and trade ties with Beijing, including over resources in the disputed sea, since he assumed office in 2016.

His predecessor, Benigno S. Aquino III, sued China before an international arbitration tribunal over its territorial claims, and won. He also strengthened Philippine alliance with the US to try to check China’s expansion in the main waterway. — Arjay L. Balinbin

Senate may probe DoH ‘conflict of interest’

THE SENATE will consider a probe of Health Secretary Francisco H. Duque III for alleged conflict of interest involving a family company, Senator Christopher Lawrence T. Go said yesterday.

“I’m willing to investigate,” Mr. Go, who heads the health committee, told reporters. He added that he trusts Mr. Duque until proven guilty.

Senator Panfilo M. Lacson earlier said Doctors Pharmaceuticals Inc., a company allegedly owned by Mr. Duque’s family, had won contracts from the agency.

Mr. Go said newly appointed Philippine Coconut Authority Administrator Gonzalo T. Duque, the Health chief’s brother, had denied “conflict of interest” during a conversation.

Mr. Lacson earlier said in a privilege speech, three of the company’s five directors were related to Mr. Duque.

“Is it just a mere coincidence that Doctors Pharmaceuticals, Inc. became an accredited government contractor and supplier on the same year that Secretary Duque was confirmed by the Commission on Appointment as secretary of Health during the Arroyo administration in 2005?” he asked.

Mr. Duque did not immediately reply to a text message seeking comment. — CAT

Appellate court denies lawyers’ protection plea

THE COURT of Appeals (CA) rejected the plea of a lawyers’ group seeking protection against government threats on its members.

In a 26-page ruling, the appellate court’s Special Fifteenth Division said the National Union of Peoples’ Lawyer had failed to prove that their life, liberty, and security had been violated.

The lawyer’s group earlier sought court protection from alleged government harassment of its members. Named respondents were President Rodrigo R. Duterte, Defense Secretary Delfin N. Lorenzana, and Armed Forces of the Philippines Chief-of-Staff Gen. Benjamin R. Madrigal, Jr., among others.

“However, the totality of the evidence presented by petitioners fails to meet the requisite evidentiary threshold,” the court said.

The court also denied their plea for the government to produce data, saying they failed to show how their rights to privacy were violated given that their names and their office locations were already known by the public.

In a statement, NUPL President Edre U. Olalia said he was not surprised by the ruling. “We shall nonetheless contest this adverse decision before the Supreme Court to push the envelope,” he said.

Meanwhile, human rights groups Karapatan, Gabriela, and Rural Missionaries of the Philippines asked the Supreme Court to reconsider its dismissal of their similar plea for protection.

In a related development, the Integrated Bar of the Philippines (IBP) denounced the killing of lawyer Anthony H. Trinidad, who was ambushed in Negros Oriental on July 23.

In a statement, IBP demanded that authorities “do their job well” to ensure justice for the victim.

“For if lawyers who are sentinels of the rule of law and who serve the poor are themselves assassinated with impunity, no one would be safe and no one would expect justice in our country,” it said.

Mr. Trinidad and his wife, who was critically wounded, were shot several times while they were on his way home in Guihulngan City, Negros Oriental.

Justice Secretary Menardo I. Guevarra on July 26 ordered the National Bureau of Investigation to probe the ambush and file appropriate charges.

An international delegation of lawyers last March said at least 37 members of the legal profession were killed in the exercise of duty since President Rodrigo R. Duterte took office in June 2016. — Vann Marlo M. Villegas

Health chief’s brother asked to head PCA

PRESIDENT Rodrigo R. Duterte has appointed Gonzalo T. Duque, brother of Health Secretary Francisco T. Duque III, as administrator of the Philippine Coconut Authority (PCA), his spokesman said yesterday.

The new PCA chief served in the Social Security Commission where he represented the labor sector, presidential spokesman Salvador S. Panelo said in a statement.

He also served as a vice-governor of Pangasinan from 1987 to 1992. He later became a director and later promoted to deputy administrator at the Philippine Overseas Employment Administration (POEA).

“With his credentials, we expect a man of competence and integrity in the likes of Mr. Duque to champion the cause of the Filipino coconut farmers,” Mr. Panelo said.

The Duque brothers are facing corruption complaints at the Ombudsman.

Mr. Gonzalo also served as chancellor, executive vice-president, chairman and fourth president at Lyceum Northwestern University for 17 years. — Arjay L. Balinbin

TNT shoots for series end vs Ginebra today

By Michael Angelo S. Murillo
Senior Reporter

ON THE VERGE of returning to the Philippine Basketball Association finals for the first time in over two years, the TNT KaTropa seek to take advantage of the opportunity and close out the Barangay Ginebra San Miguel Kings in Game Three of their best-of-five Commissioner’s Cup semifinal series today at 7 p.m. at the Mall of Asia Arena in Pasay City.

Up 2-0 after an 88-71 victory in Game Two on Sunday, the KaTropa now go for the clincher against the defending champions Kings which would push them to their first finals appearance since the 2016-17 Commissioner’s Cup.

TNT dominated Barangay Ginebra for much of Game Two last weekend on the solid all-around game by import Terrence Jones and shooting, especially from beyond the arc.

The contest was knotted at 21-all at the end of the first quarter before the KaTropa cranked things up both on offense and defense and never looked back after.

Mr. Jones finished with 15 points, 19 rebounds, 10 assists, four blocks and two steals in their Game Two victory.

Jayson Castro top-scored for the KaTropa with 20 points, going 4-of-7 from three-point land.

Roger Pogoy had 18 points with Troy Rosario and Brian Heruela adding 16 and 11 points, respectively.

As a team, TNT shot 36% from beyond the arc, going 16-of-44.

“We’re just lucky that Ginebra had a bad game. We did not expect that as we were expecting them to come back stronger,” said TNT coach Bong Ravena after their Game Two victory.

“Next game our preparation will be the same, expecting a more determined Ginebra team with its back against the wall. But we will come out strong and prepare. There is nothing to celebrate yet. We have to go out and get it,” he added.

For the Kings, primary is to make the needed adjustments come Game Three, said forward Japeth Aguilar.

“They did a good job defensively. We couldn’t get anything from our offense. We have to be more assertive in the next game, assert ourselves and capitalize on every opportunity that we can get,” said the Barangay Ginebra big man, who ended up with 14 points and five rebounds in their last game.

Import Justin Brownlee led the Kings with 25 points and 13 rebounds.

Scottie Thompson finished with 13 points, followed by LA Tenorio with 11.

Blazers seek to remain unbeaten in NCAA 95

By Michael Angelo S. Murillo
Senior Reporter

ONE OF JUST two teams left sans a loss in Season 95 of the National Collegiate Athletic Association, the College of Saint Benilde Blazers look to continue to roll when they return to league action today at the FilOil Flying V Arena in San Juan City.

Set for 4 p.m., the Taft-based Blazers (3-0) collide with the suddenly skidding San Sebastian Stags (2-2) with an eye on keeping its slate clean and staying in step with league-leading San Beda Red Lions (4-0) on top of the standings.

Also playing today are the streaking Letran Knights (4-1) against the tailending Mapua Cardinals (0-4) at 12 noon and middling squads Perpetual Help Altas (1-3) and Arellano Chiefs (1-3) at 2 p.m.

The Blazers are fresh from their 71-67 win over Mapua in an NCAA on Tour fare on July 25 at the Cardinals’ turf in Intramuros.

The trio of Justin Gutang, Clement Leutcheu and James Pasturan led Saint Benilde to the victory, finishing with 12, 11 and 11 points, respectively.

They combined for the 18 of the team’s 25 points in the payoff quarter, which proved to be the difference as they made their way to the win.

Unfortunately for the Blazers, Gutang was helped out in the dying seconds of the match after hurting his left leg.

Despite the strong start they are having in the ongoing season of the country’s oldest collegiate league, Blazers coach TY Tang said they are not getting ahead of themselves, recognizing that it is still too early in the race, and that they are taking things one game at a time.

Looking to send Saint Benilde crashing is San Sebastian, which has seen its promising 2-0 start to the tournament negated after losing back-to-back matches since.

The latest of the defeats of the Stags came at the hands of rival San Beda, 73-59, on July 26, in a game where San Sebastian once again could not sustain their solid game to start things, much like what happened against the Lyceum Pirates in a previous loss.

The Stags had control of the opening half, 35-32, but just could not keep in step with the Lions for the remainder of the contest.

In four games to date, Allyn Bulanadi leads San Sebastian with 12.8 points a game, followed by RK Ilagan with 12 points per contest and Alvin Capobres 10.3 points per outing.

Meanwhile, San Beda forward Calvin Oftana is the reigning NCAA player of the week, boosted by his solid outing against San Sebastian last Friday.

Oftana finished with a near triple-double of 10 points, 10 rebounds and seven assists. Eight of his points came in the payoff period, helping his team to the win over the Stags.

In winning the weekly award, handed by media covering the league, Oftana beat out Renzon Navarro of Lyceum, Ato Ular of Letran, CSB’s Pasturan and Ken Salado of Arellano.

Nationwide round-up

Local governments given 60 days to clear roads, sidewalks


THE DEPARTMENT of Interior and Local Government (DILG), following a directive from the President during his State of the Nation Address last week, has released a memorandum circular directing all local government units (LGUs) to clear all roads and sidewalks from obstructions, such as illegal vendors and illegally-parked vehicles. DILG Secretary Eduardo M. Año said the 60 days period given to officials starts July 29. “Ang ating (Our) countdown starts today,” he said in a press conference on Monday. The memorandum states: “Within 60 calendar days, significant results must be achieved, documented, and reported together with the efforts of the LGUs to sustain the same.” Following the directive, the National Capital Region Police Office said they will provide additional forces to help barangay tanods (watchmen) in ensuring the implementation of the order. “We will provide the necessary police force… so even at night time, we will increase the number of police personnel to provide assistance to barangay tanods and other force multipliers to see to it the policies and guidelines will be implemented,” said NCRPO chief Maj. Gen. Guillermo T. Eleazar. The Metropolitan Manila Development Authority (MMDA), meanwhile, expects that the clearing operations will open more routes for vehicles. “Lahat ng kalsadang pwedeng idagdag sa dami ng sasakyan ay malaking tulong (All roads that could be added in view of the volume of vehicles would be a big help). Just imagine our alternate routes, more than 20% niyan ay ‘di madaanan (of those are obstructed),” said MMDA General Manager Jose Arturo S. Garcia Jr. Local chief executives who fail to implement the order could face a two-month preventive suspension and administrative charges. — Vince Angelo C. Ferreras

4 KAPA officials fail to file counter-affidavit as preliminary investigation resumes

THE DEPARTMENT of Justice (DoJ) resumed on Monday its preliminary investigation into the complaint filed by the Securities and Exchange Commission (SEC) against Kapa-Community Ministry International, Inc. (KAPA) over its alleged investment scam. Through their legal counsel, KAPA’s founder, Joel A. Apolinario, Corporate Secretary Reyna L. Apolinario, Rene Catubigan, and Catherine Evangelista submitted their joint counter-affidavit to the prosecution panel. The SEC has been given until Aug. 5 to submit its reply to the counter-affidavit. Four other respondents in the complaint who have yet to submit their counter-affidavits are trustee Margie A. Danao, Marisol M. Diaz, Adelfa Fernandico and Moises Mopia. The SEC recommended the charging of KAPA and its eight officials for violating provisions of the Securities Regulation Code. The corporate regulator said the organization’s “donation” and “blessing” scheme is the same as selling or distribution of securities in the form of investment contracts. SEC revoked KAPA’s registration last April 3. A freeze order was also secured from the Court of Appeals against its bank accounts and assets. The National Bureau of Investigation and three KAPA investors also filed a syndicated estafa against the organization and its officers. — Vann Marlo M. Villegas