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CA upholds 2017 ruling nullifying ERC order on electricity rates

THE Court of Appeals (CA) upheld its 2017 decision nullifying the orders of the Energy and Regulation Commission (ERC) in 2014 which regulated the surge in prices at the Wholesale Electricity Spot Market (WESM) during the Malampaya shutdown in 2013 for maintenance.

In a 20-page resolution on March 29, the CA former fifteenth division denied the motion for reconsideration of the ERC, saying there is no “delegated authority” in the Constitution or in the Electric Power Industry Reform Act (EPIRA) which grants ERC the authority to regulate electricity rates.

“The absence of delegated authority empowering the ERC to impose agency rates as an exercise of police power ordinarily moots any need to determine the concurrence of a lawful subject and lawful means to justify the power’s exercise,” the CA ruled.

“Movants insist that the power to replace rates must be recognized. However, it bears stressing that had the legislature intended the ERC to have such power, Congress would have expressly included the same in the plethora of prerogatives the EPIRA granted the ERC. However, the EPIRA is plainly silent on the matter,” the CA added.

The CA also disputed the agency’s failure to exercise validly the fixing of rates as a “quasi-judicial function” as no notice and hearing with the parties were conducted. “(E)RC’s investigations were still ongoing when the ERC issued the challenged Orders. The inevitable conclusion is that the parties were not heard.”

The court also denied the “police power contention” on the issuance of the assailed orders as it failed to comply with the requirements that there should be a lawful subject and lawful method.

“As We have found, the imposition of ERC rates in lieu of WESM prices was a penalty levied prematurely. Its investigations into abusive and competitive behavior was still ongoing. Therefore, there were no offenses justifying such penalty, rendering the method unfounded and illegal,” the CA ruled.

The CA in November 2017 nullified the four orders issued by ERC on 2014 which declared void the price increases for the November and December 2013 supply months in the WESM for Luzon.

The ERC on March 3, 2014 issued an order following “hints that certain power industry players may have breached the aforementioned market rules.”

The ERC said that the prices on WESM during the November and December 2013 were not “reasonable, rational and competitive.”

The appellate court also denied the motion for intervention of Manila Electric Company (Meralco) which claimed that voiding the orders of ERC would impact “millions of consumers.”

Meralco then was supposed to increase its power rate to P4.15 per kilowatt-hour for the December 2013 bill. However, it was unable to pass to the consumers the said increase following the Supreme Court’s issuance of a temporary restraining order (TRO) against ERC’s approval of Meralco’s increase following a petition led by Bayan Muna Rep. Neri J. Colmenares and Carlos Isagani T. Zarate, along with other party-lists.

The Supreme Court in May 2014 extended the TRO indefinitely.

Petitioners are San Miguel Energy Corp., South Premier Power Corp., Strategic Power Development Corp., SMC Powergen Inc., Petron Corp., SN Aboitiz Power-Magat, Inc., SN Aboitiz Power-Benguet, 1590 Energy Corp., AP Renewables, Inc., Team (Phils.) Energy Corp., Sem-Calaca Power Corp., Masinloc Power Partners Co. Ltd., Therma Luzon, Inc., Therma Mobile, Inc., and Northwind Power Development Corp.

The resolution was written by Associate Justice Marlene B. Gonzales-Sison and was concurred in by associate justices Mariflor P. Punzalan-Castillo and Rafael Antonio M. Santos. — Vann Marlo M. Villegas

DA soliciting more solar irrigation proposals

THE Department of Agriculture (DA) is encouraging more firms to submit proposals to provide Solar-Powered Irrigation Systems (SPIS).

“They endorsed the proposal… but we are not saying that only LR Group can do that. If another company will make a presentation and offer the same arrangement we will consider,” Agriculture Secretary Emmanuel F. Piñol told reporters on Tuesday.

“Ang kailangan nating i-irrigate [The area we need to irrigate] is still 2.9 million hectares. This package will only irrigate 500,00 hectares. If there’s another group that could make a similar offer and cover another 500,000 hectares so much the better,” he noted.

In February, Israeli agro-industrial firm LR Group submitted a P44-billion proposal to the government to fund the deployment of the 6,200-Solar-powered Irrigation Systems. President Rodrigo R. Duterte gave the green light for initial negotiations involving the Philippines and the group’s subsidiary Innovative Agro Industry Ltd.

The offer includes a 10-year loan which can supply water to 500,000 hectares of rice and high-value crops over the next three years.

Another Israeli company expressing interest, is Netafim, which makes irrigation equipment. “Netafim has shown interest pero wala sila nung [but they don’t have the] package na may dala silang sarili nilang pera [that they will fund the project]. ’Yung LR Group kasi may proposal sila, may pera silang dala [LR Group has a proposal indicating that tells they will fund],” Mr. Piñol noted.

He said: “With irrigation, you will not really mind if there is El Niño or not kasi [because] it is better to plant during the dry months kasi walang [because there is no] interference ’yung ulan sa [from the rain],” he said.

Crops being considered for the SPIS deployment are lowland rice, upland rice, sugarcane, corn, coffee, cacao, coconuts, and other fruit-bearing trees. Currently, there is an SPIS facility in Llanera, Nueva Ecija, valued at P7.2 million and powered by 140 solar modules which can generate 30 to 50 horsepower (hp). Mr. Piñol said that this is supplying water to about 80 hectares of land. This facility was turned over by the DA to the Caridad Norte and Sur Irrigators’ Association last month.

If ever the company wins status as original proponent, the project will undergo a Swiss challenge.

“Hopefully the NEDA-ICC [National Economic and Development Authority- Investment Coordination Council] will start looking into this and it is our hope that before the end of the year things will start moving because I actually warned our fellow cabinet officials… that we have to move fast because the El Niño phenomenon is occurring with greater frequency now. It used to be about every five years. It became every three years. Now, it’s every two years, so kapag hindi natin ginawa ’yan, every two years… magre-repair, magre-rehabilitate [if we did not do that, every two years… we will repair, we will rehabilitate], which is an expensive exercise,” he said. — Vincent Mariel P. Galang

Creative industry hopes to be ASEAN’s biggest by 2030

THE Creative Economy Council of the Philippines has drafted a road map that aims to make the Philippines the top creative economy in the Association of Southeast Asian Nations (ASEAN) by 2030.

“[B]y 2030, the Philippines will be the number one Creative Economy in ASEAN in terms of size and value of our creative industries, as well as the competitiveness and attractiveness of our creative talent and content in international markets,” according to the road map as quoted by the Department of Trade and Industry in a statement on Wednesday.

The initial scope includes six cultural domains — cultural and natural heritage; performance and celebration; visual arts and artisan products; books and press; audio-visual, broadcast and interactive media; and creative services. Other related domains include tourism, and sports and recreation.

Trade Undersecretary and BoI Managing Head Ceferino S. Rodolfo suggested shortlisting at least five sectors from the cultural and related domains for a more “granular” focus and “doable” approach in drafting specific action plans of the road map.

CECP Founder and President Paolo A. Mercado identified advertising, film, animation, game development and design (specifically graphics and digital design) as among the five priority sectors to come up with specific action plans.

The road map is expected to further develop the country’s creative industries particularly its high-value services that provide major contributions to the GDP, such as tourism, Information Technology — Business Process Management and other creative services.

It can also serve as a tool towards achieving a sustainable creative economy amid rapid marriage of physical and digital technologies brought about by the Fourth Industrial Revolution (Industry 4.0).

Among the policy recommendations in the Creative Economy Roadmap include declaring “creativity” as a national priority via law; mapping; measurement of priority creative industries for accelerated growth in domestic and international markets; encouraging and incentivizing the development of creative hubs and creative clusters as places for incubation, production, education and research and development; pushing for the development and recognition of “Creative Cities; promotion of new models of creative tourism that will enhance the country’s image and promote sustainable tourism: and prioritizing creative education programs to strengthen the country’s creative workforce to become the “Creative Education Capital” of ASEAN.

In addition, Mr. Rodolfo recommended a definition for what makes u[p a “creative economy.”

He also proposed the creation of a body, composed of the Board of Investments, Export Marketing Bureau, and CECP, to be tasked with implementing the road map.

A technical working group (TWG), to include the Department of Tourism, Department of Education, Commission on Higher Education and Technical Education and Skills Development Authority, was also proposed.

Mr. Rodolfo proposed exploring the benefits of TESDA’s “voucher system” and DTI’s Shared Service Facilities (SSF) Project.

He also added that road maps for animation, game development, and film headed by their respective associations will complement the creative economy and once these are in place, could benefit from tax incentives under the upcoming strategic investments priority plan 2020 — 2023.

The CECP has been seeking the identification of creative industries as special economic zones in order to benefit from fiscal incentive packages enjoyed by current economic zones.

Under the road map, the CECP is hoping to locate in one to five SEZs within the 2016 to 2020 period; five to 10 from 2020 to 2025; and over 10 by 2030.

At present no creative industries cluster has been identified as an SEZ by the Philippine Economic Zone Authority. — Janina C. Lim

Fighting conflicts of interest

In my article on fraud under this column last week, I cited PwC’s 2018 PwC Global Economic Crime Survey (GECS) Report which showed that 87% of internal fraud committed over the last two years were by members of management, specifically by junior, middle and senior corporate officers. In terms of principal function, the top five to which these internal fraud perpetrators belong are: Operations and Production (22%); Marketing and Sales (14%); Finance (11%); Procurement (10%); and Executive Management (10%).

The above results align with my personal observations as a forensics practitioner, which is that most corporate fraud having the biggest financial impact are committed by internal actors who are in a position of trust. Corporate fraud is usually the combined result of two things: (1) a perpetrator abusing his fiduciary authority; and (2) the existence of a conflict of interest. We can even go so far as to say that there is a cause-and-effect relationship between the two. While most reported fraud incidents primarily involve situations where an individual exploits the fiduciary authority entrusted to him, what really emboldens them to do so is if they can capitalize on opportunities to circumvent existing controls for their own benefit, allowing them to get away with fraud without getting caught. One often exploited opportunity is the inadequacy of appropriate management controls, lack of senior management oversight, and/or infrequent or absence of surprise audits and compliance reviews concerning conflicts of interest.

Allow me to tell you of two interesting cases that I investigated in the past. I have intentionally changed the names of actual characters to avoid identification.

The first case involves John Doe, a Registered Engineer who worked in XYZ Corp. for more than 20 years as Operations Manager. A month before he got terminated, he was seen receiving an achievement award from a well-known multi-level marketing company that sells herbal food supplements. Little did he know, a supplier had already filed a complaint against him and the auditors were already conducting an immediate investigation on his activities. To cut the story short, the investigation revealed that John Doe had used his position to ask suppliers to buy boxes of herbal food supplements over the course of 5 months. Unless they agreed to buy the supplements, John Doe would either delay or disapprove the required project clearance for the supplier to get paid. In the end, John Doe got terminated from his position due to the grave abuse of his authority. On the other hand, while the company did not lose any money or company assets, its reputation with suppliers took a hit owing to the acts of John Doe.

Another case involves the President of a well-known company, who had been very effective at his position. While he made significant reforms within the organization and was very much instrumental in turning the whole business around, he used his authority to influence the competitive tendering process for a multi-million business transformation project. He instructed the Bids and Awards Committee to quickly decide upon the winning bidder due to the urgency of the project. However, he did not disclose that his son was a Director at one of the bidders, which ended up winning the project. This case is a classic tale of a conflict of interest where a senior management exercised his undue influence, thereby tainting the sanctity of the bidding process in favor of a conflicted entity. Upon discovery, the President was similarly removed from his position.

These are very common incidents in Philippine businesses — you may even have heard of similar incidents in your business circles. Each of these anomalies, driven by conflicts from which a corporate officer abuses his authority for his own benefit and/or unfairly favors a close relative or a personal friend or an entity where he has business interest, result in questionable integrity due to undisclosed conflicts of interests.

The question now is — how should organizations handle conflicts of interest?

First, the regular disclosure of potential conflicts among personnel is very critical to any organization. There is a need to ensure that corporate representatives, from employees up to the Board of Directors, are aware of what conflicts of interest are and are knowledgeable on the steps for disclosing conflicts, so that appropriate controls can be implemented to mitigate, if not resolve, such conflicts. One of the best advice I can give to persons occupying positions of trust is to simply be transparent and declare in writing the potential conflict. They should openly declare if there are any potential conflicts on transactions with third parties who are doing business with the company.

At the same time, more rigid detective controls must be implemented across the organization as this helps to establish oversight on controls and overall governance, ultimately ensuring that undisclosed conflicts potentially posing more risks to the company are identified and addressed in a timely manner.

For any potential conflicts of interest, it is extremely important to take note of the functions performed by the subject employee and to also understand the nature of his relationship with the third party to be engaged by the company for a particular project. For major projects subject to bidding, it is prudent to conduct relationship checks on interested bidders as a form of due diligence prior to accepting bids. Any potential conflicts identified should be handled accordingly. Finally, companies need to implement the appropriate safeguards to ensure that independence and objectivity are maintained at all times.

Organizations should not discount the importance of managing conflicts of interest. Whether real or perceived, a potential conflict of interest that is clearly present or widely-known within the organization that is not resolved appropriately may greatly affect your business relationship with third parties. This would affect the company’s sustainability in the long run. For example, suppliers who feel that they have lost business opportunities and are at a disadvantage against more favored suppliers, may no longer wish to transact with the company in the future, possibly leading to higher production costs and lower profits.

The views or opinions expressed in this article are solely those of the author and do not necessarily represent those of PricewaterhouseCoopers Consulting Services Philippines Co. Ltd. The content is for general information purposes only, and should not be used as a substitute for specific advice.

 

Aurelio Mari G. Gueco is a senior manager with the Risk Consulting practice of PricewaterhouseCoopers Consulting Services Philippines Co. Ltd., a Philippine member firm of the PwC network.

+63 (2) 845-2728 local 3086

aurelio.mari.gueco@pwc.com

Unwrapped

The New York Times reported on March 28 that New York State, by 2020, will join California and Hawaii as among the US states to ban most types of single-use plastic bags from retail sales. By March next year, under a new law, stores in New York state will no longer provide customers with single-use plastic bags that are nonbiodegradable.

There will be exceptions, of course, such as “food takeout bags used by restaurants, bags used to wrap deli or meat counter products, and bags for bulk items. Newspaper bags would also be exempted, as would garment bags and bags sold in bulk, such as trash or recycling bags,” reported the Times.

An option for shoppers is to pay a 5-cent fee on paper bags, which will go to the New York Environmental Protection Fund as well as a separate fund to buy reusable bags for consumers. By banning plastic bags and charging for paper bags, New York hopes its consumers will turn instead to reusable bags.

But the Times also reported that some retailers are against the plan, noting that part of the fee for paper bags should also go to them. The Food Industry Alliance of New York State, for one, claims that the ban will “have a drastic impact on retailers,” and that “the failure to give even a portion of the 5-cent fee back to the stores, makes this an untenable mandate for many… who operate within finite profit margins.”

A ban on plastic bags has been in place for some time in many big cities here. But it has not significantly curbed plastic use. In some supermarkets, for instance, fresh, damp, or wet items such as fresh meat, fruits, vegetables, and other produce are still placed in single-use plastic bags — biodegradable, of course — before they are placed in either boxes, paper grocery bags, or reusable bags.

Take the case of a one-kilogram pack of sausages that has about 18 pieces. Each sausage is vacuum-wrapped in plastic, and then all these wrapped sausages are sold in plastic packaging. At the checkout counter, the double-wrapped sausage pack is then placed in another plastic bag so that its dampness will not soil the paper bag. All these “wrapping” are single-use plastic “bags.”

The same goes for fresh meat sold in a “plastic bag,” and which is double-wrapped with plastic to avoid leakage, before being placed in a box or reusable bag. Even dry goods are not spared from “wrapping.” Many items that are sold in boxes like biscuits are bagged in plastic inside the box to keep their freshness, while the outer packaging is again wrapped in plastic also for pest control.

Single-use plastic bags as carrying bags are just the tip of the iceberg. Plastic packaging is more the culprit, in my opinion, and the burden is not on retailers but on manufacturers. People have reusable bags for carrying, but if all the items in it were wrapped in plastic still, then the plastic will persist. People tend to use more plastic wrapping now than when they could simply dump produce and other wet items in a plastic bag for carrying.

It is in this line that I laud the effort of one global manufacturer of personal care products that temporarily put up several “refilling” stations for hair care products in different parts of Metro Manila. Consumers can bring “used” product containers to the stations and “refill” them. The stations are temporary, as I am sure this is just a way for the manufacturer to “test” the market.

But I am already imagining the future of having such stations in supermarkets, where people can bring reusable containers for refilling. And this can be done not only for personal care products but even for food products like coffee, sugar, salt, grains and dried legumes, and others. Even pasta and other types of dried noodles can be sold in “bulk” rather than in plastic packs.

plastic trash garbage
PHILIPPINE STAR/MICHAEL VARCAS

It is in this regard, the effort to curb the retail of items in single-use plastic bags, that I cannot understand why the government stopped the sale of rice in bulk bins and mandated rice retailers to sell grains in sealed plastic bags of various weights. Bins could have just been covered, for sanitation or hygiene purposes, rather than bagging rice in plastic retail packs.

People used to bring wicker baskets or big native bags called “bayong” to the public market, and simply dump all the fresh produce in them. No packaging or wrapping required. Liquid items such as sauces and cooking oil were sold in glass bottles. Rice and grains were sold in thick brown paper bags. Dried fish as well as meat products can be wrapped in old newspapers. But fruits and vegetables were usually unwrapped.

Beer and soda and other beverages were all sold in glass bottles, which could be reused or recycled after so many uses. Even school items were recyclable like paper notebooks and wooden pencils. People also used “refillable” fountain pens, not disposable pens, so one could keep a good pen practically for life.

Even hardware stores would sell nails and screws wrapped in old newspapers, rather than plastic packaging. Small amounts of cement and sand were also sold in thick paper bags, while bigger volumes were sold in paper or jute sacks or were delivered in bulk, unwrapped. Paints were sold in cans, and small amounts of solvents were retailed in glass bottles with tin caps. Plastic was not a problem back then, either for us or for the rest of the world.

But today, “millions of tons of plastic enter the ocean each year, a significant volume of which comes from the Philippines,” the World Bank said. Thus, along with the Royal Norwegian Embassy in Manila, it is co-hosting a conference on Marine Plastic Pollution in the Philippines, to “bring together key stakeholders in the Philippines from government, development partners, and civil society, in order to enhance knowledge and information sharing on marine plastic pollution in the Philippines.”

This is in light of the fact that there are “no official statistics” as to “the magnitude of plastic waste thrown on land and ending up in rivers, lakes, and the oceans, it said. “What is known is that the amount of mismanaged plastic waste is continuously increasing, and this crisis requires urgent action,” World Bank added.

I laud the World Bank effort, as well as the cooperation of the Norwegian government, in this regard. It is a step in the right direction. We need more data to help us choose policies and initiatives that can effectively mitigate if not eliminate the scourge of plastic use. Plastic use has created such a big mess that even our shortcomings in local waste disposal have global implications. We must accept responsibility, and take action urgently.

 

Marvin Tort is a former managing editor of BusinessWorld, and a former chairman of the Philippines Press Council

matort@yahoo.com

First impression lasts…

I attended a Lasallian Business Leadership talk as part of our Marketing Management class. The lecture was on “Service Management in the Digital Age,” with the CEO and Founder of ZEN Rooms, Mr. Nathan Boublil. He generously provided insights on how businesses, particularly startups, thrive in a highly competitive industry.

Although the entire discussion leans toward marketing and customer centricity, I unexpectedly learned some human resource management principles as I listened and reflected on how my first encounter with our company made me stay.

“GOOD PEOPLE ATTRACT OTHER GOOD PEOPLE”
I was reminded of my actual job interview at my present company in 2012. The HR professional who first interviewed me was so kind, considerate, and welcoming. It was my first job interview so I really have no idea how it would go. I was so nervous at the time, overthinking the many possible scenarios in my head, but the way she asked the questions and how she responded to my answers spoke more about the company culture than about her. The people in the company were so pleasant and have this positivity that leaves a good impression of the company.

Then immediately after, I was instructed to go to the department floor where I was to be interviewed by my immediate supervisor, but otherwise greeted by senior staff who was asked to interview me on his behalf. I thought the HR lady was kind, but the people in the department were so kind, approachable, and accommodating! They were not only very welcoming and patient with the new hires but also exuded a youthful vibe!

The interview went great, and fast forward to 2019, I am still here and have no plans to leave. Although some have resigned for good, valid reasons, I remain because I am forever grateful for these amazing people who I now consider family.

“BALANCE BETWEEN SELF-CONFIDENCE AND SELF-INQUIRY”
Striking the balance between self-confidence and self-questioning is difficult, and I agree with what Mr. Boublil said. It was a difficult time for me when I decided to choose my current company as my employer of choice. I was a bit apprehensive at the time since I was a fresh graduate; I was not sure whether I will fit in. Will I make it? Are the people there good? Will we get along? There were too many questions in my head that brought anxiety more than answers.

In the end, I stopped overthinking and focused on what I can contribute to the company. It really helps to have a good grasp of your identity and think of great and mighty things about yourself. And I am glad I did.

“INTELLIGENCE VS. EXPERIENCE”
Mr. Boublil operates one of the leading hospitality companies in Southeast Asia which require young, competent, and intelligent employees to remain competitive. In this age of digital disruption, firms are competing head-to-head to hire highly skilled workers, understandably to be ahead of the industry.

I believe some companies also prefer employees who “fit” with their culture more than those who radiate with intelligence and experience. A professor of mine opined that companies today put a greater value to the skills and talents of employees (based on her experience and research). While it may be true for some, in my opinion, fit to the organization — especially its culture — is equally relevant and must still be considered when looking for potential “partners” in the organization.

When I joined our company nine years ago as an accountant, I had no excellent credentials to offer, nor substantial experience to brag about. Just thinking about it, I have no idea why they hired or even considered me in the first place! But I guess they saw the good in me, the Christian values I upheld, and my sincerity to the job and for that, I am extremely thankful and humbled they chose me. I am proud of what I do and my contribution to the success of our company.

It truly was my first good impression of the company, most especially the people in it, that I really valued through the years. Without it, I probably would not have stayed this long. Although some things have changed (including new people) due to company transformation, the culture is still the same. The people who have been with me the longest are the same people who share and preserve that culture. I cannot guarantee I will stay forever, but one thing is for sure: I will definitely make my first good impression be somebody else’s first good impression as well. It is time to pay it forward.

This article was part of the requirements of the course, Strategic Human Resource Management.

 

Ronnel Vergel de Dios is an MBA student of the De La Salle University Ramon V. del Rosario College of Business.

ronnel_vergeldedios@dlsu.edu.ph

The economics of crime

People are rational, at least in general. There is a reason for action, or inaction.

Why do people commit crimes? There are a hundred justifications but only one that commits to logic and that is, crime is profitable. It makes sense to do crime. In other words, crime does pay.

Let us look at three examples. The first one is illegal drugs, specially of the synthetic kind. Chemicals are mixed and brewed and the product is ready. The margins are at several hundred to a few thousand percent. We know this from coffee shop talk to published reports. With interest at single digits and businesses returning 12% on investment, the economics is simple and clear.

When drugs are smuggled, like any imported good, it is even more lucrative. There is no need for land, building, machinery, and manpower to locally manufacture.

The second case is assassination. A brand new bullet is 25 pesos, a recycled one 5 pesos. A branded gun is at 50,000 pesos, a paltik one at 5,000. Putting a contract on another’s life is cheap at 100,000 pesos payable in two tranches before and after. The economics is again simple and clear. There is no need for application form, application fees, medical check-up, daily grind, or sour boss. The only qualification is willingness and ability.

The third is illustrated in illegal gambling. Gambling is immoral but legal in this side of the world. But not all gambling is legal. When gambling joints operate in breach of labor, tax, or local government requirements, their main business approved by the gambling regulator does not excuse their breach or non-compliance of laws. The entities are not legal.

How profitable is gambling? Look at the huge buildings, high wages, junket terminology and easy money and the economics is of similar calculation.

Crime does not pay; it pays very well.

The other side is the hierarchy of evils. Surely, gambling cannot be worse than peddling drugs or toppling people. Drugs or killings are harder to call. Thus, the use of the words drug killings or killer drugs is in vogue. Crime, like economics, can be simple and clear too.

The flip side of evil is good, the good. While evil may admit of several shades, good is only one color, shiny. Either good or something else, there is no choice but to be good as the philosophers of old contend.

When an action or omission is bad for an individual or a society, laws take shape and serve to protect. The police mantra is “to serve and protect.” The justice slogan is “to uphold the rule of law.” These are carried out by state institutions that are empowered by the citizenry with the authority, functions and funding to watch over the public good.

That the problem of illegal drugs has worsened, that bloody, daylight killings are daily occurrences, and that gambling is driving economic growth means that we are not served nor protected. There is no law that rules.

The effect is that the prevention, detection, investigation, arrest or search or cybercrime warrants, preliminary investigation, inquest, prosecution, information, defense, bail, pre-trial, trial, demurrer, offer, proffer, postponement, more postponements, motions, orders, resolutions, decisions and judgements, conviction or acquittal, appeal, finality, commitment, rehabilitation, hardening of inmates, escape of convicts, early or late release, reintegration, and recidivism of crimes and criminals by justice institutions are not part of the rational calculation of the criminal mind.

Or perhaps they are part of the cold computation. With the impunity of tandem killings, the never ending buy-bust sagas and the proliferation of illegal online or overseas gambling, a one-time payoff can do wonders and make all the problems go away. It makes the commission of crime more economical and efficient.

Fortunately, there is a solution. There has always been a solution. It is not a magic bullet and it does not involve unicorns or AI. It is simply the constant enforcement of the law with all its complications and hassles. It is the clear adherence to an agreed set of rules laid down by our system of rules that can work wonders on crime and its punishment.

But laws and rules are made by men and women. Men and women who are rational, in general. But what happens if the people who man (and woman) our rule of law institutions perform the same arithmetic?

This brings us to the fourth case and this is the crime of corruption. It is by far the deadliest, the most immoral, and the worst evil. Deadliest because it kills the victims twice over when justice is corrupted, when the guilty is as free as the innocent. It is immoral because the oath to duty with tax money as salaries bastardizes public service. It is the worst evil because it simply and clearly is.

The economics of crime makes sense with the corruption in our midst.

Our words influence our worlds

By Raju Mandhyan

THERE are many titles and versions of this fable and the author also is unknown. Inspired by the paradigms of Appreciative Inquiry, a research and a process facilitation method, let’s call this version of the story as, “Our Words Influence Our Worlds.”

Decades ago, an aged father used to let his 10-year-old son do some chores around their farm on weekends to keep him away from mischief and hopefully impart some values on the boy. Much like Miyagi, he used to have the boy go draw water from the well all day long on one weekend. On another weekend, he would have him go paint the whole fence around the house. And, then there weekends where he would have the boy milk a dozen cows at dawn. The boy, as you may have guessed, needed to be kept busy to prevent him from his mischief and also the fact that he was quick to anger.

One such weekend, the father handed him a bag of nails and hammer and asked him to go and hammer all the nails into a large oak tree at the outskirts of their farm. The boy, though a little pesky, wasn’t ever much disobedient. A few hours later he rushes back to his father claiming the job was done. The father lets him dip into the cookie jar as a reward and lets him go play with his pals.

Come the following weekend, the boy shows up in front of the father asking for the assignment for this weekend. The father hands him the empty bag and the same hammer from last week and has him go back to the oak tree and pull out all the nails he had hammered last week, and place them back into the back. The boy goes off and in few hours rushes back with all the nails and hands them to his father. His father, this time, flips him a dollar as a reward and lets him go play with his pals again. Boy flies off again to meet his pals, but halfway to them he stops and turns around to run back to his father.

“I don’t get it, Father. What’s the deal here?”

“Son, if you go back to the tree, you will notice that even though the nails are back in the bag and you have had your cookies and a dollar to boot, the holes made the nails in that oak tree will be there forever,” replied the father gently and with love in his eyes for his son. The son, though young but quick of learning, stood there quietly basking in the warmth of his father’s gentle glance. “The same bunch of nails that can cut holes into wood can also put together several logs to build a boat or a bridge. It is the same with words,” added the father, lovingly.

Yes, just like nails, words can draw blood or bring together ideas such that new worlds get built. Words, once uttered, can never be drawn back just like nails hammered in then pulled out will always leave marks.

Many a time, mindlessly, we pour out words that cut holes into the hearts and spirits. And there are times that we do such things on purpose. Whether we do such things consciously or unconsciously the real issue is that the damage we do has a long-term, systemic effect not just on individuals but on communities, countries and beyond.

What makes a word or a bunch of words put together draw blood or heal wounds? What makes a word or a bunch of words seal the deals to a bigger, brighter future?

There are certain words which are in essence toxic and harmful. No matter where and how you place them, these words are in bad taste and harmful. For example, the word “hate” instead of “love.” For example, the word “problem” compared to the word “challenge.” When we say “problem,” it then requires digging down, holding back things and worrying about resolving it. Instead, when we use the word “challenge,” then it sounds like something that can be overcome and it has a tinge of possibility and potential built into it. At the onset it may seem there is barely any difference but think of scores of other such words used in conversations and used in abundance too.

Next, we may use essentially positive words but if they are morphed together in such a way that they influence doubt or mislead people, then, too, we are using words not to build but to destroy our world. Words and ideas deliberately employed at the wrong time and place to distort context are equally harmful.

Then there are words and thoughts that are perfect but the hue and the tone that they are expressed can give an evil twist to them and deliver disastrous results. Yes, the words “evil twist” and “disastrous” are words we should refrain from using as far as possible.

And, “Yes, you are right!” said with a sneer and curl of the mouth can still cut and draw blood like a rusted knife would. Even the three little words declared at the wrong time, in a wrong style and with a mean intention can create more harm than good.

Think about this. Think about all the times we use all the kinds of word to write, speak or influence our worlds. Choose and study them the way a good mason picks, chooses his bricks and cements them on top of each other with alignment, with care and love. The more cautious and selective we are with every grain, every brick and every wall we build, the better and more beautiful our cathedrals will turn out to be. Our words will influence our worlds.

 

Raju Mandhyan is an author, coach and speaker.

www.mandhyan.com

PBA: Magnolia clinches 6th seed in quarterfinals

By Michael Angelo S. Murillo
Senior Reporter

THE Magnolia Hotshots Pambansang Manok are entering the quarterfinals of the PBA Philippine Cup as the sixth seed after dispatching the NLEX Road Warriors, 102-74, in the curtain-raiser of the last day of eliminations on Wednesday at the Smart Araneta Coliseum.

Needing to win to claim the solo sixth spot, the Hotshots did not allow the opportunity to slip away, dominating the Road Warriors early in the contest and never relinquishing control the rest of the way for the win that took them to 6-5 at the end of the classification phase of the season-opening Philippine Basketball Association tournament.

Paul Lee led the Hotshots in their dominant win with 26 points.

The game was tight at the start with Magnolia holding just a slim four-point lead, 20-16, by the end of the first 12 minutes.

In the second quarter, on the lead of Mr. Lee and Ian Sanggalang, the Hotshots widened the gap, sprinting to a 46-30 lead at the break.

With control of the match, Magnolia came out firing in the third period.

Aldrech Ramos and Mark Barroca joined the scoring fray, helping Magnolia stretch its lead to 25 points several times, the last time at 73-48 with two minutes left.

When the third-quarter smoke cleared the Hotshots held a 77-54 advantage.

In the fourth quarter, NLEX tried to gain some ground, mostly with its reserves.

But nothing significant would come out of it as Magnolia kept the pounding the saw them building a lead as high as 31 points, 97-68, at the 5:02 mark.

The count was at 102-72 with two minutes to go and the Hotshots cruised to the win after.

Mr. Ramos scored 15 points and Mr. Barroca 14 to support Mr. Lee in the scoring department.

For NLEX, it was Bong Galanza who led with 10 points.

“We achieved our goal of getting the sixth seed. Our defense had something to do with that. We wanted to limit NLEX and match their intensity,” said Magnolia coach Chito Victolero after their big win.

As the sixth seed, Magnolia faces off with the sure third seed Barangay Ginebra San Miguel Kings in a best-of-three quarterfinal affair.

With the loss, NLEX dropped to 4-7 and may have to play for their quarterfinal lives in a one-game playoff.

UP survives UE scare

By Michael Angelo S. Murillo
Senior Reporter

THE University of the Philippines Lady Maroons thrust themselves back into the playoff picture in UAAP Season 81 with a five-sets victory over the University of the East Lady Warriors, 25-23, 20-25, 25-23, 24-26 and 15-11, on Wednesday at the FilOil Flying V Arena in San Juan City.

Tested by the competitive Lady Warriors, the Lady Maroons rose to the challenge to notch the win that improved them to 6-4 for joint fourth place with the University of Santo Tomas in the ongoing season of the University Athletic Association of the Philippines.

The teams split the opening two sets with UP coming from behind to take the first frame, 25-23, and UE bouncing back, 25-20, to claim the second.

UE took from its strong showing in the second to start third set, building a 5-0 advantage early and going up, 8-4, by the first technical timeout.

The Lady Maroons though would go on an 8-3 run after on the lead of Maris Layug to seize the lead, 12-11.

A back-and-forth ensued with UP eventually going up by the second technical break, 16-11.

UP created further separation after and went up, 20-16.

The Lady Warriors though continued to fight, narrowing the gap to just a point, 24-23.

But Ayie Ganbaban would give UP the set, 25-23, with a clean kill off a setup by Ayel Estranero to hand their team the 2-1 lead for the game.

In the fourth set it was UE which got off to a fast start with Meanne Mendrez leading the charge.

The Lady Warriors built an 8-5 lead by the first technical break.

UP caught up with UE at 15-all but the Lady Warriors beat their opponents to the punch, 16-15, midway into the frame.UE maintained control, 20-18, before UP made another push to level the count at 22-all.

The two teams continued to be tied at 24-all but UE was not to be denied a set win, finishing things at 26-24.

The fifth set got off to nip-and-tuck start before UP sprinted to an 8-4 lead at the exchange.

The Lady Maroons built a 10-7 separation after, then 12-9.

They would not look back after that and held on for the victory.

Marian Buitre led UP with 19 points with Tots Carlos adding 16 and Layug 15.

UE, meanwhile, was paced by Mendrez and Judith Abil with 23 and 22 points, respectively.

“It was not an easy game and we had to work for every point. A win is a win and we are happy we got the victory,” said UP coach Godfrey Okumu after their victory.

AFC Cup: Kaya FC Iloilo coach touts team’s big heart in comeback in Indonesia

LEFT for dead as it trailed in their Group H AFC Cup match in Indonesia on Tuesday after 90 minutes of play, Kaya FC-Iloilo sprang up a surprise in the three-minute injury time to level the count at 1-1 with hometown bet PSM Makassar and earn a point to keep it on top of the grouping.

Midfielder Marwin Angeles came to Kaya’s rescue as he converted the late equalizer injury time to cancel out Eero Markkanen’s penalty in the 56th minute of the contest to force a draw.

The team’s no-letup predisposition did not go unnoticed by its coach, who praised his players’ “big heart” amid the adversity it faced.

“It was a really tough game. PSM were really dangerous whenever they received the ball in front of our defensive line. It wasn’t our best performance, but it was our big heart that allowed us to get that late goal. All in all we deserved to get that point. And with that away goal, it gives us a boost ahead of our game in Bacolod. I’m proud of my boys,” said Iloilo head coach Noel Marcaida after their win.

It was a tight match all the way to the 56th minute when PSM Makassar broke the goalless tie with Mr. Markkanen’s penalty.

Kaya scrambled to get the point back and had several opportunities but just could not complete them.

In the three-minute injury time, Kaya continued to work to be able to salvage a draw. Its efforts were rewarded when Jovin Bedic’s free kick found Mr. Angeles all alone inside the box.

With only the keeper to beat, the midfielder chested the ball and calmly slotted it into the net to secure a dramatic draw.

“It was a collective effort. My 11 players really worked hard, from the goalkeeper to the striker. My players really had that fighting mentality. We nullified their obvious physical advantage, especially in set pieces. This point gives us a lot of confidence heading into our home game,” said Mr. Marcaida, whose team sits at the top of Group G in the AFC Cup with a record of one win and two draws for five points.

Kaya next plays at the Panaad Park and Football Stadium on April 17 versus PSM Makassar once again. — Michael Angelo S. Murillo

Kingad’s good showing soothes rough night for Team Lakay

WHAT was probably the biggest night in Team Lakay’s history turned out to be its roughest as well as it lost the two remaining world titles it held in ONE Championship.

In successive fashion at “ONE: A New Era” on Sunday in Tokyo, the promotion’s first event in Japan, Kevin “The Silencer” Belingon and Eduard “Landslide” Folayang lost the bantamweight and lightweight titles, respectively, in succession.

Mr. Belingon lost his by disqualification after being red-carded in the third round of his title fight against Bibiano Fernandes of Brazil over illegal blows to the back the head while Mr. Folayang succumbed to an arm-triangle early in the opening round against Shinya Aoki of Japan.

But while it was a rough one for Baguio-based Team Laky at ONE: A New Era, it did not go home empty-handed as flyweight Danny “The King” Kingad, the third team member who was part of the stacked Tokyo card, churned out an impressive performance against Japanese veteran like Senzo Ikeda to move on to the semifinals of the flyweight grand prix.

Mr. Kingad’s standout showing, one local fight analyst, was worthy to be highlighted for soothing what was a painful hit for Team Lakay.

“It’s very unfortunate that two of the three Filipino fighters failed to emerge triumphant in their respective fights in Tokyo last Sunday. But Danny Kingad was outstanding in his bout against Ikeda,” said analyst Nissi Icasiano when sought for his comments post-A New Era by BusinessWorld.

“He stood toe-to-toe with a mixed martial artist with a decent boxing background, and he mixed it up with his grappling prowess when it was deemed necessary to take control. He did have troubles in closing the fight because he let his opponent latch on a late submission. But overall, it was a solid all-around performance for the young Baguio City native,” he added.

With the unanimous decision win, Mr. Kingad set up a semifinal encounter in the flyweight grand prix with Kazakhstan’s Kairat Akhmetov, who beat Australian Reece McLaren in an earlier match by way of unanimous decision as well.

Mr. Icasiano went on to share that fans have not seen the last of Messrs. Folayang and Belingon as they should continue to figure in the mix in their respective divisions.

“It was heartbreaking to see Eduard Folayang succumb to a submission loss at the hands of Shinya Aoki. It was a vintage performance by Aoki. But I am expecting a trilogy bout between these two. This could happen later this year. It makes sense, especially that the ONE Lightweight World Grand Prix is in the semifinal round,” he said.

“For Kevin Belingon’s fight, I was quite surprised that officials ruled it as a disqualification. It was unintentional, and it should have been a no contest. We cannot do anything about it. But I commend ONE for giving Kevin an automatic rematch,” Mr. Icasiano added.

Interestingly, Team Lakay may find itself with another ONE world title in its hands in a week’s time as former strawweight champion Joshua Pacio, who lost his belt in January, fights in a rematch with current champion Yosuke Saruta of Japan at “ONE: Roots of Honor” here Manila on April 12. — Michael Angelo S. Murillo

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