As the number of Us drilling rigs plummets by a third and thousands in the industry

face layoffs, oil companies are focus-ing on an effort to persuade Congress to lift the long-standing ban on oil exports. “We shouldn’t put domestic pro-ducers at a competitive disadvantage by limiting the available markets,” Ryan Lance, CEO of Texas-based ConocoPhillips, told the Us Chamber of Commerce on Tuesday. scott sheffield, CEO of Pioneer

Natural Resources, also based in Texas, was making the same push on Tuesday in front of the House subcommittee on Energy and Power, arguing the industry’s struggles with low oil prices are worsened because companies aren’t allowed to ship American crude oil to foreign nations. Oil prices across the globe have plummeted because of a supply glut driven by surging American pro-duction, which has, in turn, led to companies slashing costs and lay-

ing off workers. The Federal Reserve Bank of Dal-las predicts 140,000 jobs in Texas alone could be lost by next year, as the reverberations of the oil slow-down ripple throughout other parts of the state economy. Energy companies worldwide are hurting. But the international mar-ket price, known as Brent, is $10 a barrel higher than the benchmark price for Us crude sales, West Texas Intermediate.

According to the Bangko sentral ng Pilipinas (BsP), quite a few have, in fact, formally submitted the in-tent to make their presence felt in the $270-billion economy whose local output, measured as the gross domestic product (GDP), has the potential to widen this year by as much as 8 percent. Their ramped-up participation comes less than a year after all foreign competition restraints have been re-moved, such that seven Asian lend-ers are now in talks with the central bank to begin putting up branches in the country. According to Nestor Espenilla Jr., BsP deputy governor for the supervision and examination sector, two of the Asian lenders al-ready filed their intent to compete in the P10.1-trillion industry already shaping up as one of the fastest- growing in the region. 

By Catherine N. Pillas

IN an evident win for auto con-sumers, the Department of Trade and Industry (DTI) has decided

in favor of businessman Ricardo L. Nolasco Jr. in his complaint against Audi Motorcars Inc./PGA Cars Inc., thus, entitling him to either a re-placement or a refund of his Audi A6 3.0 TDI. According to the adminis-trative decision penned by DTI Adjudicating Division Officer Ronald Calderon and released to the media, PGA Cars Inc. and Audi Motorcars Inc. were found jointly liable for the imperfec-tions of the vehicle. The order granted Nolasco the option to either a replacement of the vehicle in question or a reimburse-ment of the amount paid with mon-etary updating. The decision invoked the Con-sumer Act of the Philippines in pro-viding the relief. Calderon said the case does not fall under the Philippine Lemon law but the Consumer Protection Act, as the former was passed after the complaint was filed, and there should be no retroactive application of the law.

www.businessmirror.com.ph n TfridayNovember 18, 2014 Vol. 10 No. 40 P25.00 nationwide | 6 sections 30 pages | 7 days a weekn Thursday, March 5, 2015 Vol. 10 No. 147

A broader look at today’s businessBusinessMirrorthree-time

rotary club of manila journalism awardee2006, 2010, 2012u.n. media award 2008

Peso exchange rates n us 44.0890 n jaPan 0.3682 n uK 67.7383 n hK 5.6847 n china 7.0269 n singaPore 32.3731 n australia 34.2758 n eu 49.2695 n saudi arabia 11.7564 Source: BSP (4 March 2015)

See “Asian banks,” A2 Continued on A2Continued on A2

INSIDE

D1

Life � ursday, March 5, 2015BusinessMirrorEditor: Gerard S. Ramos • lifestylebusinessmirror@gmail.com

DEAR God, You are always faithful to answer. Sometimes Your answer is a much-desired “Yes.” Sometimes Your answer is a merciful

“No.” Sometimes Your answer is a faith-filled “Not yet.” Sometimes Your grace-filled whisper is “Maybe.” And sometimes—sometimes, when an answer cannot be found, Your answer is simply “Trust Me.” Oh, God, we really believe You. Amen.

Trust me

YETTA CRUZ AND LOUIE M. LACSONWord&Life Publications • teacherlouie1965@yahoo.com

❶ THE high-rises of Pudong, on the east bank of the Huangpu River in central Shanghai, can be seen from the Bund. PHOTOS: SCOTT

KRAFT/LOS ANGELES

TIMES/TNS

❷ JANNY CHYN, owner of Shanghai Pathways, a custom touring agency, stands on a rooftop in the Old City of Shanghai.

❸ THE all-you-can-eat weekend dim sum buffet at Lynn. The restaurant is located in the French Concession, the popular Shanghai neighborhood that until the 20th century was considered French soil.

❹ A TEA merchant, Chen Wangqing, in his colorful shop in the Old City of Shanghai.

B S KLos Angeles Times

SHANGHAI—As the nighttime lights of Shanghai winked to life late on a damp Saturday afternoon, the tour guide said she had one last stop in mind: the marriage market in People’s Park.

“I just hope we’re not too late,” she said as we hailed a taxi and headed for the huge park in central Shanghai.

The marriage market wasn’t listed in my guidebooks. But I had spent the day following her suggestions, exploring parts of Shanghai I wouldn’t have discovered on my own, and I had yet to be disappointed. It was as though I had hired a local friend for the day.

We found dozens of people still in the park, all parents shopping for mates for adult children. Some had created signs touting their offspring and affixed those ads to open umbrellas on the sidewalk. Others were clumped in circles, engaged in animated conversations.

“Why just the parents?” I asked Janny Chyn, the guide. “The children hardly ever come,” she said. “They wouldn’t want to be seen here. These are the parents who are embarrassed that their children aren’t married and are desperate.

She translated some of the signs. One described a 32-year-old man with a master’s degree in economics and an annual salary of 300,000 yuan (about $48,000) who owns his own house. He wanted a wife who was 28 to 30, about 5 feet 4 inches tall, with a bachelor’s degree.

We leaned in to a rapid-fire discussion between the mother of an unmarried woman and the parents of an unmarried young man. They were showing photographs of their children, like old friends, and discussing career ambitions. (The woman, a nurse, made more money than the man, which seemed to surprise his parents.)

All the while, I realized I was privy to something special. Taking a customized tour of Shanghai was my way of dealing with a predicament: I had just a single free day and wanted to see the city’s highlights. But I also wanted to step off the beaten path, maybe meet some residents, sample good local cuisine and get a sense of what it is like to live there.

Finding all of those things in one group tour didn’t seem likely. I’m also not a fan of the big-bus tour.

I was reminded of that a year ago when I had arranged for a personalized tour of the Great Wall near Beijing and, on the way back, my guide took me to lunch at a giant restaurant—hundreds of idling buses outside and knickknacks, American accents and industrial Chinese food inside.

This time I vowed to be smarter. My research turned up an interesting possibility. Shanghai Pathways offered what it called “alternative trips,” including educational

tours, and it specialized in small groups. Several dozen tours were listed on its web site, including such things as feng shui consultations and dumpling making.

I didn’t see exactly what I was looking for, so I e-mailed Janny, the owner, who seemed to instantly grasp my goal. She recommended the Custom Tour, a seven-hour guided trip that she tailors to a visitor’s interests. At 2,200 yuan (about $350) for one or two people, it was pricey. But it seemed worth a try.

On a cool fall Saturday, Janny showed up at my hotel at 10 am. She carried a backpack and an umbrella, looking more like a graduate student than a business owner. She had roughed out an itinerary, starting with the Bund, the historic waterfront and Shanghai’s most famous site, a viewing point for the high-rises across the Huangpu River. The curving, mile-long embankment, dotted with stunning buildings, once was the heart of an international settlement of American and British financiers and later a major commercial center for East Asia. After strolling along the Bund, we crossed a bridge to the Astor House Hotel, where we wandered upstairs to see the historic rooms where Charlie Chaplin and Albert Einstein, among other notables, once stayed.

Then we went next door to a part of the Astor that had been converted into residences. It was surreal: Some of the dark teak hotel room doors bore their original numbers, and hallways had been converted to open-plan kitchens with stoves and sinks. We passed a woman rinsing abalone and a man chopping garlic.

We caught another taxi (they are cheap in Shanghai) to the Bird and Cricket Market. Amid the chirping, Janny explained how many Chinese people revere crickets and keep them as pets. (She has two.)

The qualities to look for, she said, are color and “the sound of their song.”

Some were dime-sized, but others—especially those sold for fighting—were nearly as large as a fist. The market was filled with kiosks selling cricket accessories, including cricket homes—hand-painted boxes with air vents. We made quick work of the rest of the market: birds, turtles, chinchillas, a truly creepy collection of newborn rat pups and large vats of just-cooked bird food and wiggling worms.

Next up was lunch at Lynn, a modern Chinese restaurant in the French Concession, the popular Shanghai neighborhood that until the mid-20th century was considered French soil.

The all-you-can-eat dim sum brunch (88 yuan, or about $14 per person) included steamed pork dumplings, pan-fried pork bun, deep-fried turnip cake, bean curd soup, Shanghai smoked fish and black rice in lotus root. Janny showed me how to use a spoon and chopsticks to eat the Shanghai specialty, soup dumplings. (The key: Hold the dumpling in a spoon, lift

the gathered top with your chopsticks and take a small bite, gently sucking out the broth.)

Over lunch, we talked about her philosophy of travel, which led her to create the company.

“When I travel,” she said, “it’s important for me to connect with someone who knows the place, who can pass along the experience of knowing that place. Otherwise, I might as well look at photos.”

Janny, who is 30, started the agency four years ago after working as an event planner for expatriate companies. She now has a staff of five tour guides, each with a specialty.

After lunch, we took a taxi to the Old City of Shanghai, once surrounded by a wall, and strolled through a food market on the narrow streets. Though the skies were overcast, the temperature was surprisingly mild for late autumn. Because it’s on the East China Sea, Shanghai tends to have milder winters than Beijing.

We paused for tea, and I was a little worried. During my visit to Beijing, I had been taken to see a “free” tea ceremony and then pressured to buy $40 tins of tea.

In the Old City, though, we pulled up two stools at the Yellow Mountain Tea Shop and spent a pleasant half-hour with owner Chen Wangqing sampling and talking about tea, its history, how to drink it and its importance in China. (“Slurp it,” Janny advised. “The louder the better.”) No one even asked whether I wanted to buy. (I didn’t.)

The marriage market in People’s Park was our last stop. As we headed to the hotel, I thought back on the day. It would take weeks, months and even years to know a city as large and complex as Shanghai. But, in a little less than eight hours, thanks to someone who did know it well, I had made a start.

IF YOU GO■ Tours. Shanghai Pathways, www.

shanghaipathways.com, shanghaipathways@gmail.com. This agency offers an assortment of tours for small groups.

■ Where to stay. Yangtze Boutique Shanghai, 740 Hankou Road, People’s Square; www.theyangtzehotel.com. Doubles from $135 per night. Astor House Hotel, 15 Huangpu Road; www.pujianghotel.com. Doubles from $100 per night.

■ Where to eat. Lynn, 99-1 Xi Kang Road. Modern Shanghai cuisine. Weekend all-you-can-eat dim sum brunch is about $14. Jesse (Jishi), 41 Tianping Lu (near Huahai Xi Lu); www.xinjishi.com. Serving Shanghai specialties. Entrees $10 to $25. Reservations recommended.

■ To learn more. Shanghai Municipal Tourism Administration, www.meet-in-shanghai.net.

IN the bid to increase travelers from around the world to the Philippines, the country signed the amended air-services agreement with Singapore. With a 7.1-percent increase in weekly seats—from 18,888 frequencies per week for each country from the previous 17,627 seats—this vital move strengthens the Department of Tourism’s (DOT) strategy in positioning the Philippines as a multiple gateway destination in Asia.

The new air-services agreement was signed on February 13 in Manila with several officials from the DOT, Department of Transportation and Communications, Civil Aeronautics Board, Department of Foreign Affairs, and Department of Trade and Industry representing the Philippine Air Panel. Also included in the agreement is the increase in co-terminal and stopover rights for Singapore carriers, which will now include Iloilo and Bacolod, in addition to Manila, Cebu, Davao, Puerto Princesa, Kalibo, Cagayan de Oro, Laoag, Legazpi, Puerto Princesa and Zamboanga. It can be expect that in the coming months, a Singapore carrier can travel to Iloilo, then to Davao, and back to Singapore, without exercising cabotage rights.

With increased flights, tourists and investors can expect to travel to and from the two countries with ease. The Philippines gains greater entry to a major hub such as the Changi International Airport, while Singapore residents and citizens can look forward to wider access to top tourism destinations in the Philippines. This agreement is integral to the twin marketing destination strategy of the Philippines and Singapore. In 2014 a total of 179,099 Singaporeans visited the Philippines—a growth of 3.71 percent from the previous year—making it the No. 1 source market of tourists from the Southeast Asia region. With the expanded air-services agreement between the Philippines and Singapore, the country expects to enjoy an increase in tourism arrivals not only from Singapore, but also from other parts of the globe.

“The travel business in Southeast Asia today is characterized by a phenomenon called coopetition—a cooperative, collaborative decision by all players to compete with each other so that the world will choose the region before choosing the country. As Asean invites the world to ‘feel the warmth,’ this phenomenon finds one of its most exciting permutations in the travel exchange between the Philippines and Singapore. Our countries are, in very real terms, each other’s value extension,” Tourism Secretary Ramon R. Jimenez Jr., said.

“The more connected we become, the more value we add to each other’s offering. As we work toward our goal of achieving our visitor arrival, revenue and employment targets, we need to greatly enhance our international air seats and connectivity,” the Philippine tourism chief added.

FOR the 11th consecutive year, Asiana Airlines (OZ) has been named Best Airline for Onboard Services and the Best Airline for Flight Attendants by Global Traveler (GT). The GT Tested Reader Survey Awards had over 26,000 ballots from global travelers voting in 84 travel categories including best hotels, airports and frequent flyer programs. Asiana had previously entered the Hall of Fame for its consistent wins in different categories.

During the recent GT awards ceremony at the Peninsula Beverly Hills Hotel, Asiana Airlines also collected the award for Best First Class Seat Design and Best International First-Class Wines on the Wing. Asiana’s selection bested over 100 wine samples from 28 other airlines, as adjudged by a panel of 24 international wine experts. “Asiana Airlines is getting rave reviews from around world through customer-oriented service and customer response with Korean sentiment,” Global Traveler noted. “Asiana received the award for continuous research and development and differentiated services such as its onboard chef and sommelier services.”

Asiana’s winning streak continued with more recognition from Premier Traveler magazine. Asiana won Best Flight Attendants in the World for the third consecutive year, and Best In-Flight Services in the World for the second consecutive year. Asiana had also won the magazine’s Best Airline to Asia twice before.

FRANCIS GALLAGHER, CEO of Global Traveler, and Bonsung Koo, general manager of Asiana Airlines US Marketing and Alliances, hold up Asiana Airlines’ awards with their proud flight crew members at the annual GT Tested Reader Survey Awards.

PHL increasesflights from SG

Asiana continues best airline services winning streak

Custom one-day tour is a good start to seeing Shanghai

❶ ❷

❸ ❹

REELING:THE THING

ABOUT ‘THAT THING CALLED TADHANA’ »D2

SportsC1 | Thursday, March 5, 2015 • Editor: Jun Lomibaomirror_sports@yahoo.com.ph • sports@businessmirror.com.ph

Turns out a lot of other people are believ-ers, too. And they’re backing their opinions with real money.

A flurry of early action on Pacquiao has already narrowed the odds for the big fight in this city’s legal  sports  books. By the time they get into the ring on May 2, it’s conceivable that Mayweather might not be favored at all.

“I’ve never seen Mayweather this low eight weeks out before the fight,” said

Jimmy Vaccaro, who has booked money on every big fight for the past four decades in Las Vegas. “This is as close as we get to a legitimate pick ‘em fight since Mayweather fought [Oscar] de la Hoya.”

Mayweather opened as a 2 1/2-1 favorite in most sports books when the fight was an-nounced, and at that price Pacquiao backers couldn’t wait to get their bets down. At Vac-caro’s South Point hotel sports book, there were 150 tickets written on Pacquiao in the

days after the fight was announced to just 10 on the favored Mayweather.

Over the weekend, Vaccaro said his book took a couple of $10,000 bets on Pacquiao, which prompted him to move the betting line closer to try and draw more action on Mayweather.

“It’s a one-way attack on Pacquiao,” Vac-caro said. “We’re well into a six-figure loss right now if Pacquiao wins.”

That could change when the so-called smarts start weighing in on a fight that is still two months away. Both Pacquiao and Mayweather began training camps this week, giving bettors plenty of time to form their opinions as more news circulates about their training status.

Vaccaro actually saw an influx of Pac-quiao money first in October, when he put up a line on the fight before it was made, making Mayweather a minus-300 favorite and Pacquiao a plus-250 underdog.

That meant a bettor had to wager $300

to win $100 on Mayweather, while Pacquiao paid $250 for every $100 bet. Vaccaro had barely posted the line when he got a $3,000 bet on Pacquiao, and the trend has contin-ued unabated.

“The smarts really aren’t jumping in yet, they’re going to wait to see how low it goes,” Vaccaro said. “They’re telling you that they think it will get much lower.”

The latest odds at the South Point still fa-vored Mayweather, but now at minus-200. Pacquiao has gone to plus-170, meaning Mayweather is now less than a 2-1 favorite in man-to-man betting. At the Westgate Las Vegas Superbook, Mayweather was mi-nus-210, while Pacquiao was plus-180.

So far, at least, the betting pattern looks much like it did in 2007, when May-weather began as a 2-1 pick over De La Hoya in the fight that catapulted him to pay-per-view stardom. While boxing in-siders liked Mayweather in the fight, the betting public was infatuated with de la

Hoya, and he would eventually go into the ring as a slight favorite.

No matter who ends up favored, the legal bookies figure to be winners. Already, Vac-caro said he has seen more betting on the fight than he ever has two months out, and some in the betting industry are predicting legal wagering of up to $50 million on the bout. The betting handle will be helped by a number of different proposition bets, and the fact tens of thousands of college basket-ball fans can bet while in town for the kick-off of the NCAA basketball tournament.

The fight will cap a huge day in sports that includes the Kentucky Derby and playoffs in the National Basketball Association and National Hockey League, along with a full slate of baseball.

“Other than Super Bowl Sunday, the single day will be as big as we’ve written in years,” Vaccaro said. “Look for May 2 to be approaching the Super Bowl handle on Su-per Bowl Sunday, and that’s saying a lot.”

A flurry of early action on Manny Pacquiao has already narrowed the odds for the big fight in Las Vegas’s legal sports books. By the time they get into the ring on May 2, it’s conceivable that Floyd Mayweather Jr. might not be favored at all.

DORAL, Florida—Now that players on the task force have solved their Ryder Cup problems, the next job is to repair damage to their own tour.

One week ago Davis Love III was introduced as the next US cap-tain for the 2016 matches at Hazeltine. That was the decision from an 11-member Ryder Cup Task Force—five of them active players on the Professional Golfers’ Association (PGA) Tour—who shared other results from their two meetings.

Love was the right choice.Requiring two of the assistant captains to already have been Ryder

Cup captains can’t hurt. Waiting until five days before the opening match to make the final captain’s pick? That doesn’t make much sense, though whoever it is can make it a moot point by making a bunch of putts.

Where the task force failed was in the qualifying process.Majors still count double for each year. And there’s nothing

wrong with offering a half-point for every $1,000 to the 30 Ameri-cans at Doral this week for a World Golf Championship. It will be the same for the other three WGCs and The Players Championship (WGC). And then next year, it’s a full point for all PGA Tour events.

But that’s next year, not next season.Left out of the equation were the five tournaments in the fall that

kick off the 2015-2016 season. All offer full FedEx Cup points. Augusta Na-tional recognizes them by offering a spot in the Masters to the winners.

Phil Mickelson, however, made them sound like second-class citizens when he eagerly explained the reasoning.

He mentioned how top players would be competing just about every week this summer through two majors, a WGC, the FedEx Cup playoffs and the Presidents Cup, and then they would stop for

a break just as the new season was getting started.“If you count money for those last three or four months, you’re

giving the bottom half of the tour a three-month head start over ultimately the top guys,” Mickelson said.

Never mind that these “top guys” have failed to win the Ryder Cup seven of the last nine times.

Two of those fall events had fields that were as strong or stron-ger than five tournaments in the “regular” part of the season last year. Mickelson probably didn’t realize this because he has never played in any of them.

Ryder Cup points are based on money. Did anyone on the task force realize that all but one of those “bottom half” fall events of-fered more money this season than the opening three events in January, and a total of eight tournaments in the “regular” season?

That’s what prompted Duke Butler, president of the Frys.com Open, to send a letter of appeal to PGA of America chief Pete Be-vacqua. The Frys.com Open won’t count toward the Ryder Cup in October, even though Rory McIlroy is expected to play.

Butler doesn’t understand the concept of a head start, not when only 30 Americans are at Doral, and that’s the highest US representa-tion of all the WGCs.

Justin Thomas isn’t in them. Neither is Daniel Berger, who lost in a playoff at the Honda Classic. Brooks Koepka might not be on the PGA Tour right now if not for the Frys.com Open in 2013, where he tied for third behind Walker. They are part of a growing group of young Americans who might soon take over the tour.

“I don’t understand it,” said Adam Sperling, tournament director of the Shriners Hospitals for Children Open in Las Vegas. “It was a big deal

for a number of us to go from the Fall Series to the FedEx Cup. That was key to the continuation of our support. And it was evident in the invest-ment our title sponsor made in the purse.”

Las Vegas had a $6.2-million purse. Ben Martin won. The top 10 featured Koepka, Webb Simpson, Jimmy Walker, Hideki Matsuyama and Brandt Snedeker. Place that in April instead of October and does anyone notice?

Love, a task force member and now the captain, has one of those fall tournaments at the McGladrey Classic. He should use his position to persuade Bevacqua to reconsider. Because the real damage is not about who makes the US team for an exhibition it can’t seem to win. It’s about the health of a tour that should be its first priority.

The fall tournaments were in danger of going away when they were perceived as second-tier events. To save the some $25 million in prize money, the tour went to a wraparound season and elevated them to regular FedEx Cup status.

With one decision by the Ryder Cup Task Force, those tournaments are treated differently again.

What’s to keep Augusta National from following suit and no longer offering a spot in the Masters to the winner? And if those tournaments go away, does the PGA Tour become even more of a closed shop and a time when it’s hard to keep track of all the promising young Americans?

Most disappointing is the silence of PGA Tour Commissioner Tim Finchem, except to commend the PGA of America for including his players in the process. It was just over a year ago that Finchem and former PGA President Ted Bishop shared the stage and boasted of a new era of cooperation between the two organizations.

Now is the time for that. It’s not too late. AP

By Tim Dahlberg | The Associated Press

LAS VEGAS—Manny Pacquiao has always believed he can do what 47 other fighters before him have failed to do—beat Floyd

Mayweather Jr. in the ring.

FLOYD MAYWEATHER JR. opened as a 2 1/2-1 favorite in most sports books when the fight was announced, and at that price Manny Pacquiao backers couldn’t wait to get their bets down.

DAVIS LOVE III was the right choice.

7 Asian banks set to enter PHLregional lenders Keen on establishing Presence here ahead of asean banKing integration

life d1

sporTs c1

Oil giants want US exportban lifted to protect jobs

Pga losesdti caseVs buyerof audi a6

customone-day tour

Congress sent Obama a bill to fund the Homeland Security De-partment through the end of the budget year, without overturning the president’s immigration poli-cies. Republican leaders did not give in to conservatives’ demand that the bill also roll back Obama’s direc-tives sparing millions of immigrants from deportation. Democrats had insisted on legislation to fund the department, which shares responsi-bility for anti-terrorism operations, without any conditions.

The House voted 257-167 in fa-vor of the $40 billion spending bill, which Obama was expected to sign promptly. All 182 Democrats pres-ent voted for the bill, while it received only 75 Republican “yes” votes.

The Republicans’ retreat under-scored the limits on their power de-spite the party’s widespread gains in November’s elections. House Speaker John Boehner outlined the dwindling options for his deeply di-vided Republican caucus on Tuesday morning after the Senate left the House with little choice.

Boehner pointed out that the is-sue of Obama’s executive actions on immigration last fall is now in the hands of the courts.

“I am as outraged and frustrated as you at the lawless and unconsti-tutional actions of this president,” Boehner told his caucus, according to aides. “I believe this decision—con-sidering where we ar—is the right one for this team, and the right one for this country.”

House Republicans said that after months spent railing against Obama’s executive actions, which most Republicans view as an un-constitutional overreach, they had no more moves to make.

A federal court ruling has tem-porarily blocked the administration from implementing the new immi-gration rules. The administration has appealed the decision, and the ultimate result of the legal challenge is unknown.

The Republican leadership’s deci-sion angered several conservatives, while some Republicans welcomed Boehner’s move.

Rep. Mike Simpson said he, too, opposes Obama’s executive actions on immigration. Yet, he also said the “security of the homeland is one of our highest priorities,” and added that Congress could continue to oppose the president without forc-ing a partial agency shutdown that loomed for Friday.

Whatever the final result of the struggle, controversy over the leg-islation has produced partisan grid-lock in the first several weeks of the new Congress. For the first time in Obama’s presidency, Republicans have full control of Congress after capturing the Senate in November. They also won more seats in the House than at any time in 70 years.

Democratic unity blocked pas-sage in the Senate of House-passed legislation with the immigration provisions. By late last week, a split in House Republican ranks brought the department to the brink of a partial shutdown.

That was averted when Congress approved a one-week funding bill that Obama signed into law only moments before a midnight on Friday deadline. In a statement, Obama praised Homeland Security employees as “law-enforcement pro-fessionals and brave patriots who do a remarkable job, and deserve our gratitude and respect. Today, after far too long, Congress finally voted to fully fund their mission.” AP

The WorldBusinessMirrornews@businessmirror.com.ph • Editor: Lyn Resurreccion Thursday, March 5, 2015 B3-5

WASHINGTON—The Re-publican-led House of Rep-resentatives backed down

on Tuesday in a dispute that could have led to a partial shutdown of the agency overseeing US borders, handing a ma-jor victory to President Barack Obama.

Standoff over Homeland Securityends as Republicans back down

In this February 24 file photo, the Homeland Security Department headquarters is seen in northwest Washington. In a major victory for President Barack Obama, the Republican-led House overcame last-minute opposition from GOP critics on Tuesday and moved toward final passage of legislation to fund the Homeland Security Department without restrictions on immigration. AP

SAN DIEGO—A history scholar selected by Pope Francis to be the new Roman Catholic bish-

op of San Diego said on Tuesday that he will be a “friend” to the Latino community and called for compre-hensive immigration reform.

Msgr. Robert McElroy made the comments during a news conference in San Diego hours after the Vatican announced his appointment. He called immigration “the vitality of our nation.”

“The border is a reminder to us of what we are called to do in our greatness as Americans and that we sometimes fall short of in how we deal with immigrants and how we must really confront the issues of immigration and resolve them with justice and have a comprehen-sive immigration reform that will do that,” he said.

The 61-year-old native Califor-nian has been serving as an auxiliary bishop in San Francisco since 2010. He will be formally installed as the sixth bishop of San Diego during a Mass at Saint Therese of Carmel Par-ish on April 15. San Diego’s Bishop Cirilo Flores died of cancer last year.

McElroy, speaking briefly in Spanish, vowed to be a “friend” to the Latino community and called Hispanics the foundation of the church. He also called on the need to support Native Americans.

The impending sainthood of the 18th-century Franciscan missionary Junipero Serra has generated pro-tests from Native Americans, who say the priest spread disease, wiped out native populations and enslaved converts as he built a Catholic mis-sion system throughout what is now California.

It is important the church be one of inclusion, McElroy said.

After earning history degrees at Harvard University and Stanford University, McElroy studied at the Jesuit School of Theology in Berke-ley. He later obtained doctorates in moral theology at the Gregorian University in Rome and in political science at Stanford.

He will be spending his first year mostly listening and learning, McEl-roy said. Joelle Casteix, the western regional director of the Survivors Network of those Abused by Priests said McElroy has not done enough to speak out against priests accused of abuse. McElroy said the church has come a long way in improving the way abuse cases are handled. But “we need to constantly reform our environ-ments so that they maximize safety and security for children,” he said.

“We can never think we’ve done enough or that we have put it in the past,” McElroy said, adding later that “a constant notion of vigilance go-ing forward needs to be in place.” AP

Newly named San Diego bishop calls for immigration reform

POPe Francis delivers his speech during a special consistory with cardinals and bishops, in the Synod hall at the Vatican, on February 12. A history scholar selected by Pope Francis to be the new Roman Catholic bishop of San Diego said on Tuesday that he will be a “friend” to the Latino community and called for comprehensive immigration reform. AP

FARGO, North Dakota—Four American missionaries who were released after several

days of detention and questioning by Venezuelan authorities arrived home in North Dakota on Tuesday, saying they were glad to be back but hoped to return to the South Ameri-can country someday.

The group from the Bethel Evan-gelical Free Church in Devils Lake, which has been sending missionaries to Venezuela for years to help needy, was handing out medicine and hear-ing aids in the town of Ocumare de la Costa on Wednesday when they were detained.

The group, who was caught up in the escalating political tension be-tween the US and Venezuela, said they were told they didn’t have the necessary work visas, which they had never before been required to have.

“There was so much hyperbole, but I don’t want to speculate,” group leader Arlynn Hefta said when asked why they were detained.

Hefta, 62, who works as a hearing aid dispenser in North Dakota, broke down when talking about the after-noon Venezuelan soldiers armed with rifles came into the church where the Americans had set up a clinic. It was shortly thereafter that up to 300 villagers surrounded the clinic and the soldiers.

“They challenged the military. They said, we’re protecting you, and we’re not going to let these soldiers take you,” Hefta said. “Imagine the courage.” Hefta said the Americans decided to comply with the soldiers so “nobody would get hurt” and were taken to a military outpost in the city of Maracay.

Besides questioning that Hefta

described as “mind games,” they were fingerprinted and photo-graphed on several occasions and went about 30 hours with-out sleep.

Other group members were De-siree Bouvette, 51, a professional hair stylist; Kermit Paulson, 58, a retired 30-year military veteran; and Dr. Russ Petty, 66, a family physician. It was the 12th trip for Petty, eighth for Hefta, seventh for Paulson, and third for Bouvette.

Hefta said the group felt better when a Venezuelan general visited them on the third day and said they would be released. They were taken to an immigration office in Caracas and deported, which means they can’t return for two years.

All of them said that helping their “Venezuelan family” was worth it and they would return. AP

Missionaries held by Venezuelanauthorities return to N. Dakota

FReeD aid worker Arlynn Hefta shows a photo of himself with a 93-year-old patient he helped while in Venezuela on March 3, at Hector International Airport in Fargo, north Dakota. Hefta was among four American missionaries who were released after several days of detention and questioning by Venezuelan authorities. AP

WASHINGTON—Two ma-jor US airlines say they will no longer accept re-

chargeable battery shipments as new government tests confirm that explosions and violent fires are likely to occur when large numbers of bat-teries enclosed in cargo containers overheat. The decisions by United and Delta airlines could put pressure on other international carriers to refuse battery shipments or appear indifferent to safety.

Tests conducted last month by the Federal Aviation Administration (FAA) show that rechargeable batter-ies, also called lithium-ion batteries, consistently emit explosive gases when they overheat or short-circuit, the Associated Press (AP) has learned. In the recent tests, as well as other FAA tests last year, the buildup of gases—primarily hydrogen—led to fierce explosions.

An FAA video of one of the tests obtained by the AP shows an explo-sion knocking a cargo container door off its hinges and tossing boxes of batteries into the air.

The container was engulfed in fire minutes later.

In the test, a cartridge heater was used to simulate a single bat-tery overheating. The heater caused nearby batteries to overheat and the short-circuiting spread to many of the nearly 5,000 batteries in the container. It’s common for tens of thousands of batteries to be placed in a single container.

Citing safety concerns, United Airlines on Monday informed its

cargo customers it will no longer accept bulk shipments of the batter-ies, which are used to power every-thing from smartphones to laptops to power tools.

Delta Air Lines quietly stopped accepting bulk shipments of the re-chargeable batteries on February 1.

The airline said in a statement that it took the action in response to government testing and con-cerns raised by its pilots and flight attendants. A third major US car-rier, American Airlines, stopped accepting some types of lithium-ion battery shipments on February 23. But the airline is continuing to accept small packages of batteries grouped together or “overpacked” into a single cargo container.

Those are the kinds of shipments that the FAA has been testing and that are a greater safety concern.

All three airlines said they will continue to accept bulk shipments of equipment containing batteries or in which batteries are placed in the same package as equipment.

Placing batteries inside equip-ment like laptops or in the same package as power tools creates ad-ditional buffering and is believed to provide added protection, although safety experts say that theory hasn’t been fully tested.

“I think it will cause everybody to take a look at their policies and procedures as far as carrying that cargo, and many will elect not to,” said John Goglia, a former National Transportation Safety Board mem-ber and aviation safety expert. AP

Airlines reject carryingrechargeable batteries

exclusive RALEIGH, North Carolina—Former CIA Director David Petraeus, whose once-bright

political future was all but destroyed over an affair with his biographer, has agreed to plead guilty to charges he shared classified material with her for her book.

The plea agreement—which car-ries a possible sentence of up to a year in prison—represents another blow to the reputation of the retired four-star Army general who led American forces in Iraq and Afghanistan and was perhaps the most admired mili-tary leader of his generation.

Petraeus, 62, agreed to plead guilty to a misdemeanor count of un-authorized removal and retention of classified material. The agreement was filed in federal court on Tuesday in Charlotte, where Paula Broadwell, the general’s biographer and former mistress, lives with her husband and children. In court papers, prosecu-tors recommended two years of pro-bation and no prison time.

But the judge who hears the plea is not bound by that. No immediate date was set for a court hearing for Petraeus to enter the plea.

Prosecutors said that, while Broadwell was writing her book in 2011, Petraeus gave her eight bind-ers of classified material he had improperly kept from his time as the top military commander in Af-ghanistan. Days later, he took the binders back to his house.

Among the secret information contained in the “black books” were the names of covert operatives, the coalition war strategy and notes about Petraeus’s discussions with President Barack Obama and the National Security Council, pros-ecutors said. Those binders were later seized by the FBI in a search of Petraeus’s Arlington, Virginia, home, where he had kept them in the unlocked drawer of a desk in a ground-floor study. AP

Ex-CIA chief admits sharing military secrets with mistress

world B3-5

standoff oVer homelandsecurity

big hitin Vegas

By Bianca Cuaresma

Lenders from around the region look to the

Philippines for earning opportunities now that the sector has opened to full foreign competition and well ahead of a projected integration process whose tentative steps firm up and grow more purposeful every day.

BUll rUN photo shows traders at the philippine stock exchange (pse) floor on wednesday, when the stock market sustained its rally and scaled to a new record, as the benchmark index climbed 71.32 points, or 0.92 percent, to close at 7,847.83, its 18th all-time high for the year. The psei has gained 8.5 percent so far this year. NoNie Reyes

diMaGiBa: “The net decision is favorable to the complainant.”

accordiNG to Nestor espenilla Jr., Bsp deputy governor

for the supervision and examination sector, two of the

asian lenders already filed their intent

to compete in the p10.1-trillion industry

already shaping up as one of the fastest-

growing in the region.

“If current trends continue and the export ban is not lifted, US shale oil production will flatten or decline by disproportionate volumes versus our overseas competitors, dimin-ishing the profound benefits of the shale revolution,” Sheffield said in prepared testimony. Arguing against lifting the ban, though, was Delta Airlines, which told the House energy subcommit-tee that allowing exports would hurt consumers by threatening to raise prices for gasoline and other fuels. “Why would any policy-maker want to risk jeopardizing the cur-rent consumer benefits we are expe- riencing and institute a policy that would benefit only a narrow sec-tor of the economy?” asked Graeme Burnett, board chairman of Monroe Energy, Delta’s refining subsidiary. The oil-export ban was put in place in the wake of the 1970s Arab oil embargo, ostensibly to protect Americans from gasoline shortages and price spikes. But oil companies and energy economists argue it’s outdated in an era of enormous US oil and nat-ural-gas production. American Gulf Coast refineries are more configured to handle heavier grades of crude oil than the lighter-grade oil that’s surging into the market from the top shale production areas in North Dakota and Texas. That’s lowering the price for the oil, ConocoPhillips CEO Lance said. “That discount starts hurting domestic producers and it cuts our ability to reinvest back in our busi-ness to grow production,” he said. It’s a sensitive issue, and Lance ac-

knowledged that Congress and the White House are not ready to lift the oil-export ban. He said it’s important for the in-dustry to push hard on it now, though. “We’ve got to gain some traction this year. Certainly, as we go into an election year [in 2016], it becomes harder,” he said. ConocoPhillips spent $1.4 million in lobbying Con-gress the final three months of last year alone on crude exports and other issues, according to disclosures. Supporters of ending the export ban argue it wouldn’t raise gasoline prices and could even lower them. Gas prices are tied to the global oil price, and more US oil on the inter-national market would drive down the global price, according to an analysis by the global consulting firm IHS Energy. “It is not the case that hoarding energy supplies inside our borders helps lower prices to consumers,” said Amy Myers Jaffe, an energy economist at the Univer-sity of California, Davis. The AFL-CIO agrees that gaso-line prices likely would not be af-fected but opposes lifting the export ban, nevertheless. Brad Markell, executive director of the AFL-CIO Industrial Union Council, told the House energy subcommittee that sending the oil abroad would hurt American refiners. “If we lift the ban on crude-oil exports, we will export both our oil and the jobs and economic activity associated with refining that oil,” he said. But the American Fuel and Petrochemical Manufacturers, the trade association for refiners, isn’t against lifting the ban, saying, “The free market should drive all energy policy.”MCT/TNS

BusinessMirror news@businessmirror.com.ph Thursday, March 5, 2015A2

News

NEW SAF CHIEF President Aquino is introduced to Philippine National Police-Special Action Force (PNF-SAF) OIC P/CSupt. Noli Taliño (second from left) by the installed PNP-SAF director, Chief Supt. Moro Virgilio Lazo (left), as Deputy General Marcelo Garbo Jr., chief of the PNP directorial staff, OIC Chief PDDG Leonardo Espina and Interior Secretary Manuel Roxas II look on during the Assumption of Command Ceremony of PNP-SAF at the PNP-SAF Headquarters Quadrangle of the Camp Bagong Diwa in Bicutan, Taguig City, on Wednesday. Lazo is a member of the Philippine Military Academy “Maharlika” Class of 1984. Malacañang Photo

Asian banks. . . Continued from A1

Continued from A8

Continued from A1

Continued from A1

Oil giants want US export ban lifted to protect jobs

CHINA DEFENSE SPENDING TO GO UP BY 10% THIS YEAR

China’s central government will increase defense spending at a slower pace than last year,

as President Xi Jinping overhauls the military and seeks to stamp out the corruption that hinders the country’s combat readiness. The defense budget will rise about 10 percent this year, in line with the in-crease in the general budget, Fu Ying, national People’s Congress spokesman, said at a briefing on the nPC meetings that start on Thursday. Last year military spending rose 12.2 percent to 808.2 bil-lion yuan ($128.9 billion). China’s military expansion has fueled tensions as it asserts its territorial claims in surrounding waters, testing Us allies such as Japan in the process. Defense spending has more than doubled since 2006, though widespread corruption and a lack of military engagement have undermined efforts at modernization. Much of China’s spending has been focused on expanding its navy as it seeks to enforce its claims to more than 90 percent of the south China sea and build a maritime silk Road, a trade route linking a network of ports through the indian Ocean with Europe via the suez canal. “it seems that all the action is hap-pening in the maritime area,” said sam Perlo-Freeman, director of the military expenditure and arms production pro-gram at the stockholm international Peace Research institute, citing recent increases in spending on navy and air force equipment. “The importance of the sea in the current territorial disputes, the importance of air in joint operations is a lot higher.” China’s military expenditure as a share of its economy was 2 percent in 2013, less than the 3.8 percent in the Us and 4.1 percent for Russia. This year’s 10-percent increase in spending is the slowest since 2010, when it climbed 7.5 percent. ‘Beaten up’“OUR history has taught us that you get beaten up if you’re backward,” Fu said. “Our country will need to achieve modernizations, and one of them is military modernization, which will need sufficient financial support.” The country’s armed forces suffer from “potentially serious weaknesses” that could limit fighting ability, according to a Rand Corp. report published last month, which cited corruption as a reason. “The PLa leadership are worried that corruption within the PLa is likely degrading or inhibiting readiness and war-fighting capabilities,” said andrew scobell, a senior political scientist at Rand in arlington, Virginia. “The PLa hasn’t fought an actual war since 1979 so there is some question as to its level of military readiness and state of com-bat effectiveness.” Generals targetedXi’s antigraft campaign recently snared a second retired deputy commander of the armed forces as he undertakes the most significant military cleanup in more than three decades, according to a person with direct knowledge of the investigation. Guo Boxiong, a former vice chair-man of the Central Military Commis-sion (CMC), the highest military body, was put under investigation in recent weeks, the person said. The probe fol-lows that of Xu Caihou, another ex-CMC vice chairman, who was expelled from the party last June after allegations of corruption. The purge of China’s military is gath-ering momentum. The PLa this week released a list of 14 generals who have been investigated in recent days, in-cluding Guo’s son, Xinhua reported on March 2. Those names are in addition to 16 generals named in January as being under investigation for graft. Gulf warChina has been upgrading its military since the early 1990s, when its economy started to take off and as the techno-logical prowess displayed by the Us forces in the first Gulf War exposed the PLa’s shortcomings. Bloomberg News

in 2007, that my father, Sen. Ed Angara, and I filed a bill addressing the absence of a legal framework that would closely govern and regu-late the preneed industry. This was enacted in late 2009 and became the Pre-Need Code of the Philippines (Republic Act 9829). Back then, it was our goal to put back stability in the industry and ensure its long-term viabil-ity, while giving added protection to planholders. A key change embodied by the code was the transfer of regula-tory jurisdiction from the Security and Exchange Commission to the Insurance Commission (IC), given the latter has the capability and expertise to regulate and supervise the industry. Another reform was the impo-sition of a higher capitalization re-quirement for preneed companies to lessen the risk of instability and ensure that future obligations to planholders will be met.

Need to investigate ALMOST four years after the code’s enactment, one of the first things

I did as a senator was file in Sep-tember 2013 a resolution (SRN 237) calling for an investigation into its implementation and to look into how the law has helped the industry. We filed the resolution amid the troubles of one of your indus-try colleagues (Prudentialife Plans Inc. or PPI). The imperative for an investigation becomes all the more apparent given that the IC report-ed in February 2012 that between September 2010 and September 2011, no less than thirty preneed companies were placed under con-servatorship. From more than 200 companies before 1997, the indus-try had whittled down to around 20 by 2013. Brimming with opportunityTHAT investigation has yet to take place. But it should soon, especially with our economy on the rise and a burgeoning Filipino middle class looking for a place to park their grow-ing earnings. Indeed, a return of confidence in public institutions seen in re-cent years appears to coincide with people’s growing comfort with in-vesting in insurance policies and

preneed plans. No less than IC Commissioner Emmanuel F. Dooc said that total premium income for 2015 could reach P200 billion. Perhaps, the preneed industry could account for a respectable portion of it. Soledad Sanchez, an insurance specialist in the Pre-Need Division of the IC, pointed out in 2013 that even bigger opportunities await the industry, due to several factors2: ■ Continued growth of the coun-try’s labor force (averaging 2 percent between 2010 and 2013; ■ Steady increases in enrollment (averaging 3 percent between 2008 and 2013); and ■ Ongoing talk about raising the official retirement age from 60 to 65.

Exemplary commitmentETERNAL Plans Inc. appears well-poised to capitalize on these oppor-tunities having provided unwavering customer service for nearly three-and-a-half decades. In an indus-try in turmoil, you have remained steadfast. You’re one of the few who survived the crisis that hit the preneed industry. Based on July 2014 IC data, there only remain 14 licensed preneed com-

panies. This is less than 10 percent of an industry that used to have more than 200 players. Obviously, this says a lot about your company and the dedication and industry of your human resources, most especially your sales force. More important, you toughed it out when tuition were deregulated in the early 1990s. Many firms collapsed on the heels of the policy change and were unwilling or unable to meet their obligation to planholders. Here, there was no big govern-ment bailout of big banks, unlike in the US during the 2008 reces-sion. But through thick or thin, Eternal Plans kept its covenants and in a sense kept faith with its planholders. This secured the fu-tures of many young individuals, whose lives are now undoubtedly better because of their education. For this feat alone, not only should you be congratulated—you should be thanked. Hence, tonight’s theme of “com-mitment” very much applies—so exemplified by the outstanding per-formance of the people slated to be awarded tonight. It is also personified by your founder, Ambassador Antonio

Cabangon Chua, who through his hard work and tenacity, lifted him-self up from the slums to the board-rooms of Philippines Graphic, DWIZ, the BusinessMirror, Fortune In-surance, CityState Savings Bank and, of course, Eternal Plans Inc. “From the gutter to the stars.” This was how Nick Joaquin described his rise from being a shoeshine boy and ice-drop peddler to being at the top of one of the country’s most successful business conglomerations. Our country should have more stories like his—of success built not on patronage, but on personal initiative, talent, hard work and persistence. These are the very things that have allowed the middle classes of other countries to spur national de-velopment and prosperity. They are what we seek to cultivate here in the Philippines. And with the continued service of Eternal Plans—and of the entire preneed industry—we hope to accomplish just that. Thank you! Mabuhay po tayong lahat!

Endnotes * Taken from the speech, Filipinos of Today, Filipinos of Yesterday

ANGARA CITES ETERNAL PLANS FOR HELPING MIDDLE-CLASS PINOYS SECURE GOOD FUTURE

Article 100 of the Consumer Act states that “suppliers of durable and nondurable consumer products are jointly liable for imperfections in quality that render the products unfit or inadequate for consump-tion for which they are designed or decrease their value, and for those resulting from inconsistency with the information provided on the container, packaging, labels or pub-licity messages/advertisement, with due regard to the variations resulting from their nature, the consumer be-ing able to demand replacement to the imperfect parts.”

If the imperfection is not resolved in 30 days, the consumer can then demand the replacement of a product of the same kind or reimbursement of the amount paid.  Not only were the complaints of Nolasco on the vehicle not settled within the period, but a crucial ele-ment in the decision, according to Calderon, is the “recurrence of im-perfections in the air-bag system.” “The very function of an air-bag is to protect the driver and/or pas-sengers sitting on the front seat, thus, the recurrence of imperfec-tions in the air-bag system should not be taken lightly in this decision as the trade office gives paramount

consideration to the safety and pro-tection of the consumers,” Calderon said in justifying the complainant’s rights to avail himself of relief in the Consumer Act. In his assessment of the deci-sion, Calderon noted that the fact that PGA Cars had to replace certain units of the air-bag system and other peripheral parts of an expensive car, just two months after purchase, is “quite abnormal and unusual” and established the fact that there are imperfections on some parts and functions of the car. The case began when Nolasco brought his Audi A6 3.0 TDI, which was bought at a hefty price of P5.5

million, to PGA Cars for repair 17 days after it was purchased.  Initial complaints consisted of problems with the ejection of the CD from the CD player and erratic display of air-bag indicator lights, but later on included random mes-sages appearing on the dashboard, lighting up of air suspension and headlight indicators, and steering and suspension fault. PGA Cars conducted diagnostic tests and road tests each time that the vehicle was returned. However, the decision noted that Nolasco has already “entertained doubts on the trustworthiness of the vehicle” dur-ing the second repair attempt. As a

result, the complainant declined to pick up the vehicle from PGA Cars. According to Undersecretary for Consumer Protection Victorio Ma-ria A. Dimagiba, “the net decision is favorable to the complainant [No-lasco]”, but reiterated that the case is not a test for the Lemon law and its implications are not applicable in the matter. Although the decision may spell the end of the yearlong dispute be-tween the luxury-car brand and the businessman, Dimagiba noted that if this decision is disputed by PGA Cars, the firm can file the appeal be-fore the Office of the DTI Secretary or elevate the case to a higher court.

PgA loses Dti case vs buyer of Audi A6

he also said two other asian banks are readying their own proposals, while three others expected to follow suit, bringing the total count of interested foreign banks to seven. While Espenilla would not disclose the specific asia-based banks proposing to gain Philippine entry, he acknowledged none of the other multinational lenders such as those based in the euro zone or the United States look to put up operations in the country. In July 2014 the stepped-up liberalization of foreign-bank entry was signed into law by President aquino and lifted all restrictions in the business. central bank top honcho amando M. tetangco Jr. welcomed and lauded this

development, saying the law has “clear economic benefits” to the country, especially in light of the anticipated asean Banking Integration Framework positioning. tetangco also earlier said the liberalization should spur the exit of weak players through mergers and acquisitions in the country and should further encourage the entry of the much-sought foreign direct investments. these are investments invested in so-called bricks-and-mortar undertakings that not only generate tax revenues for the national coffers, but breed employment for quite a number of Filipinos as well. the move to liberalize the banking system was also lauded by international credit watcher

Fitch Ratings who said the interest of foreign investors in the Philippine banking system should help strengthen the operating efficiency of the various lenders and align the industry’s corporate governance with international best practices. then BSP governor gabriel S. Singson started breaking up the near total dominance of local shareholders in the equity structure of the various lenders in the country in the 1990s when on top of the four original foreign banks already operating in Manila, 10 more were added. the only foreign banks at that time only included the Bank of america, Standard chartered Bank, citibank and the then-hongkong and Shanghai Banking corp. now known simply as hSBc.

news@businessmirror.com.ph Editor: Dionisio L. Pelayo • Thursday, March 5, 2015 A3BusinessMirrorThe Nation

Chief Supt. Moro Virgilio Lazo, one of the original SAF officers, took over as the new commander, more

than a month after the ambush-killing of 44 SAF troopers during the operation that got Jema’ah Islamiyah

Original SAF officer rejoins unit as commander

SUNRISE SUNSET

HALF MOON6:11 AM 6:05 PM

MOONRISEMOONSET

5:36 AM 5:45 PM

TODAY’S WEATHERMETROMANILA

LAOAG

BAGUIO

SBMA/CLARK

TAGAYTAY

LEGAZPI

PUERTOPRINCESA

ILOILO/BACOLOD

TUGUEGARAO

METROCEBU

CAGAYANDE ORO

METRODAVAO

ZAMBOANGA

TACLOBAN

3-DAYEXTENDEDFORECAST

3-DAYEXTENDEDFORECAST

CELEBES SEA

LEGAZPI CITY24 – 30°C

TACLOBAN CITY23 – 30°C

CAGAYAN DE ORO CITY

METRO DAVAO24 – 33°C

ZAMBOANGA CITY23 – 34°C

PHILI

PPIN

E ARE

A OF R

ESPO

NSIB

ILITY

(PAR

)

SABAH

PUERTO PRINCESA CITY 24 – 32°C METRO CEBU

24 – 31°C

ILOILO/BACOLOD

23 – 30°C

22 – 32°C

24 – 32°C 24 – 32°C 24 – 32°C

23 – 30°C 23 – 31°C 23 – 31°C

22 – 32°C 23 – 32°C 23 – 32°C

24 – 32°C 24 – 33°C 24 – 34°C

24 – 33°C 24 – 34°C 24 – 33°C

Watch PANAHON.TV everyday at 5:00 AM on PTV (Channel 4).

Weekday hourly updates: 6:00 AM on Balitaan, 7:00 AM & 8:00 AM on Good Morning Boss!, 9:00 AM, 10:00 AM, 11:00 AM, 12:00 PM, 1:00 PM

on News@1, 3:00 PM, 4:30 PM, and 6:00 PM on News@6

www.panahon.tv

@PanahonTV

MARCH 5, 2015 | THURSDAY

HIGH TIDEMANILA

SOUTH HARBOR

LOW TIDE

5:08 AM0.01 METER

TUGUEGARAO CITY19 – 33°C

LAOAG CITY 21 – 31°C

TAGAYTAY CITY 19 – 30°C

SBMA/CLARK 21 – 32°C

21 – 32°C 22 – 33°C 22 – 33°C

20 – 34°C 20 – 34°C 20 – 33°C

22 – 31°C 22 – 32°C 22 – 32°C

14 – 23°C 15 – 23°C 15 – 23°C

20 – 30°C 20 – 30°C 21 – 30°C

24 – 31°C23 – 31°C 24 – 31°C

24 – 312°C 24 – 32°C

22 – 32°C 23 – 33°C

24 – 30°C24 – 31°C 24 – 31°C

Partly cloudy to at times cloudy withrain showers and/or thunderstorms

Partly cloudy skies

FULL MOON

2:05 AMMAR 6

1:14 AMFEB 26

BAGUIO CITY14 – 23°C

24 – 32°C

10:21 PM0.87 METER

MAR 6FRIDAY

MAR 7SATURDAY

MAR 8SUNDAY

MAR 6FRIDAY

MAR 7SATURDAY

MAR 8SUNDAY

23 – 33°C

WEAK NORTHEAST MONSOONAFFECTING EXTREME NORTHERN LUZON

(AS OF MARCH 4, 5:00 PM)

METRO MANILA20 – 33°C

Northeast Monsoon locally known as “Amihan”.It affects the eastern portions of the country. It is cold and dry;

characterized by widespread cloudiness with rain showers.

bomber Zulkifli bin Hir alias Mar-wan in Maguindanao on January 25. Lazo replaced the acting SAF com-mander, Chief Supt. Noli Talino, the former deputy director of the unit, but who was forced to temporar-ily head the SAF upon the relief of Director Getulio Napenas, who was relieved in the wake of the bloody operations. Both Lazo and Talino are mem-bers of the Philippine Military Acad-emy Class of 1984. Lazo, who was the head of the

National Police Firearms and Explo-sives Office before his appointment as SAF commander, is faced with the daunting task of uplifting the morale of the SAF, which the National Police admitted was at its lowest as result of the killing of its 44 members and the slow government response in making the killers accountable. President Aquino presided over the turn over rites at Camp Bagong Diwa, Taguig City, on Wednesday morning. “We will boost the morale of the

Special Action Force,” was Lazo’s statement during simple turnover ceremonies. Lazo thanked Mr. Aquino for ap-pointing him as SAF commander. “I am grateful, honored and hum-bled,” he said. “Aayusin natin ang morale ng SAF. We will have to rebuild practically… not really retrain but to continue ongoing training,” Lazo, who re-placed Chief Supt. Noli Taliño, who assumed command as acting SAF commander following the relief of

Director Getulio Napeñas over the Mamasapano incident. Lazo was a SAF member himself from 1984 to 1989 and 2010 to 2013. Upon his graduation from the PMA in 1984, he joined the SAF and stayed until 1989. He rejoined the elite police unit again as the chief of its directorial staff or number three man from May 2010 to Feb-ruary 2013. “I am so excited to be back home...may the force be with us all,” he added. PNA

THE still grieving National Police-Special Action Force on Wednesday got a new

commander.

THE Philippine Red Cross (PRC) went on round-the-clock full-alert to respond to fires that

are expected to break out especially this fire season. With 18 fire engines, 13 water tankers and trained firefight-ers nationwide, the PRC is fully equipped to respond to any fire emergencies. “The Philippine Red Cross is the only national society among the Red Cross Red Crescent Movement with a fire department that allows us to immediately respond to fire incidents,” PRC Chairman Richard J. Gordon said. Aside from firefighting, PRC is the only Red Cross national soci-ety in the world that responds to

urban search and rescue, Gordon added. Traditionally the season of fires in the Philippines, March has been declared as Fire Prevention Month. According to the Bureau of Fire Protection (BFP), there have been 23 fire incidents nationwide from March 1 to 3 alone, including the recent fire that gutted a residen-tial area at Parola Compound in Tondo, Manila. Since January the BFP reported a total of 2,277 fire incidents na-tionwide, which resulted in damage amounting to P489,347,221. Since the start of 2015, 62 in-dividuals have perished in fires across the country, while 161 ci-vilians and 21 BFP personnel suf-

Red Cross on full alert this fire season

By Rene Acosta

fered fire-related injuries. “Since the start of the year the PRC has already responded to 32 fires all over Metro Manila and neighboring provinces. Our fire

response teams are usually part-nered with emergency medical teams when responding to fire incidents to better provide as-sistance to individuals affected,”

said Gwendolyn Pang, PRC secre-tary-general. Pang added that apart from fire and medic response, the PRC also provides other assistance in com-munities affected by fire, such as provision of hot meals, food and nonfood items, to displaced families in evacuation centers and psycho-social support. The PRC has been responding to fire emergencies since 2009 when the Japanese government donated 12 fire enginess to the PRC.

Fire preventionFIRE prevention is still the key to avoiding fire incidents according to the BFP. This year’s Fire Month theme, “Kaligtasan sa Sunog, Ala-min, Gawin, at Isabuhay Natin,” re-flects the BFP’s commitment to let the public know of the importance of fire prevention. Like the BFP, the PRC also puts prevention topmost in its campaign to reduce the risks in case of a fire.

Here are some tips from the PRC on how to reduce risks at homes: Eliminate fire hazards through good housekeeping; Keep matches out of chil-dren’s reach; Lighted candles and oil or gas lamps should be placed away from curtains or flammable materials; Put out flames before going to bed; Never leave a lighted cigarette unattended; Do not keep flammable materi-als, like gasoline, kerosene, alcohol and paint inside the house; Regularly check electrical in-stallations and have all threadbare wirings and electrical equipment changed or repaired by license elec-trician; and Make sure there is no gas leak inside your house. If you smell gas, do not light a candle or match-sticks and immediately open all doors and window to allow gas air to escape. Claudeth Mocon-Ciriaco

THE Philippine Red Cross Emergency Response Unit responds to a fire on Susan corner Blumentritt streets in Sampaloc, Manila, on Tuesday. The PRC deployed a fire truck and an ambulance to the incident.

Power of the sun Solar panels in different sizes and capacities are displayed along Gonzalo Puyat Street, more commonly known as Raon, in Manila. Authorities have been urging private homes to use solar power, especially this summer, to prevent the threatening power crisis in the Philippines. ALYSA SALEN

BusinessMirror news@businessmirror.com.ph A4

Economybriefs

bill instituting monitoring of tax Perks reaches senate floorA bill instituting the monitoring system for tax incentives to business entities and individuals and corporations has been submitted for plenary debates in the Senate.

Sen. Juan Edgardo Angara, chairman of the Senate Committee on Ways and Means, reported on Tuesday night that Senate bill 2669, on Tax incentives Management and Transparency Act (Timta) aims to promote transparency and accountability in the grant and administration of tax incentives by creating a Tax incentives information section in the annual budget of Expenditures and Sources of Financing.

“The Philippines remains strongly competitive in the region in attracting investments. The steady stream of FDi or foreign direct investments into our economy is not a mere coincidence. it is through the provision of tax incentives, among our other fiscal strategies, that we are able to promote investments that make us among the top emerging economies in the region,” Angara said.

Angara clarified that the Timta does not, in any way, affect the independence or autonomy of the investment-promotion agencies or other government agencies to administer incentives granted by law to registered business entities and qualified private individuals or corporations. PNA

maynilad sets new Projects to reduce nrwMAynilAD Water Services inc. (Maynilad) will continue to implement leak repairs and replace old pipes as part of its water-conservation program and further reduce its non-revenue water (nRW). For 2015 Maynilad has earmarked P3.2 billion for various projects, which include a budget of P2.1 billion for the replacement of some 175 kilometers of pipelines in Caloocan, Cavite, Manila and Parañaque, and P680 million for the replacement of 128,000 water meters. Maynilad is the private water contractor of the Metropolitan Waterworks and Sewerage System (MWSS). its concession area, the West Zone of the Greater Manila Area, is composed of the cities of Manila (certain areas), Quezon City (certain areas), Makati City (certain areas), Caloocan, Pasay, Parañaque, las Piñas, Muntinlupa, Valenzuela, navotas and Malabon—all in Metro Manila; the cities of Cavite, bacoor and imus, and the towns of Kawit, noveleta and Rosario—all in Cavite province. last year various projects implemented by the company led to the recovery of more than 117 million litters of water per day, successfully reducing its nRW level to 33 percent. According to Maynilad, the water recovered can fill up 47 Olympic-size swimming pools and enough to supply the water needs of some 491,400 people. Jonathan L. Mayuga

bus oPerators oPPose Privatization of cebu south bus terminal

By Lorenz S. Marasigan

The spate of road accidents involving public-utility buses (PUBs) that caused “serious damage to lives and property”

has forced the Land Transportation Franchising and Regulatory Board (LTFRB) to soon require bus operators to install Global Positioning Sys-tem (GPS) devices to their units. The plan, whose pilot test has been set for the second quarter, will help regulate the speed limit of buses traversing national roads and high-ways, LTFRB Chairman Winston M. Ginez said on Wednesday. “Sobra ng nakakabahala ang sunud-sunod na aksidente sa ating mga pangunahing lansangan na nagdudulot ng kapinsalaan sa publiko dahil sa wa-lang pakundangan at kaskaserong pagmamaneho ng mga bus drivers kaya naman maglulunsad ang LTFRB ng programa para limitahin ang bilis ng takbo ng mga PUBs,” he said. The GPS device is the “best and most vi-able option recommended” under the “Study on Speed Control of PUBs” of the UP National Center for Transportation Studies (NCTS) in October last year. Based on the UP-NCTS study, commuting by public transport is “much riskier than by car, with bus passengers exposed higher to accident risk.”

Calculating the accident rate per vehicle for each mode of transport, the study showed that the bus is six times more at risk than car, and five times more than jeepney or taxi or UV ex-press service. Since 2010 there have been 10,826 accidents involving buses. “This study validates that there is an urgent need to regulate bus speed to prevent more road accidents from happening on our roads and en-sure safety of the riding public,” Ginez said. The current speed limit along expressways is 80 kilometers per hour (km/h), while in urban areas the speed limit is 60 km/h. The study recommends maintaining these limits but must be closely monitored and controlled using a GPS device. “The use of GPS and associated communica-tion system looks more viable considering cost and the ease in implementation and regulation,” the UP-NCTS study concluded. An in-vehicle GPS device and communication system that will con-tinuously send speed and location data to control center will be installed soon in PUBs, Ginez said. A bus will be tagged as speeding when the in-vehicle GPS device exceeds the imposed speed limit. Bus passengers can also monitor real-time speed of the bus through an on-screen display system installed in the bus.

Thursday, March 5, 2015 • Editors: Vittorio V. Vitug and Max V. de Leon

Asked if the Palace will back the house option to dip into the mul-tibillion-peso royalties from the Palawan gas field to spare consum-ers from bearing the burden of the estimated P100-million to P200- million ILP funding requirement, Palace Spokesman edwin Lacierda indicated that Malacañang will de-cide after the Senate and the house of Representatives take a final vote on the ILP bill. The Senate version, on the other

hand, would cost consumers a low of P7 to P8 per kilowatt-hour (kWh), in contrast with the P35 per kWh under a Department of energy (DOe) pro-posal to lease 300-megawatt (MW) generator sets (gensets) costing P6 billion for two years, or P10 million per MW. “We will await the consolidated version of the bill where the execu-tive branch will be properly guided with their legislative wisdom,” Lacierda said.

Palace awaits ILP okay before picking funding option to avert power shortage

By Butch Fernandez & Jovee Marie N. dela Cruz

Malacañang is awaiting approval by congress of the final version of the

Interruptible load Program (IlP) before deciding whether to tap the P170-billion Malampaya Fund or pass on the cost to consumers of the emergency power-supply scheme to avert anticipated rotating brownouts in luzon this summer.

To avert the projected five-month (March to July) power-supply short-age that could trigger rolling brown-outs, the ILP provides a scheme where owners of gensets, including malls, manufacturers and big com-panies, would be asked to deload from the Luzon grid and instead use their own gensets at certain hours, for which they would be reimbursed for the balance incurred between us-ing the grid and their own supply. Sen. Sergio Osmeña III, chair-man of the Senate Committee on energy that conducted hearings on the ILP, explained that under this scheme, “up to 1,400 MW may be deloaded for a few peaking hours on certain days.” he added that the ILP had been tried and implemented in Cebu and Mindanao way back in 2010 after the southern regions were hit with recurrent brownouts due to supply shortage. According to Osmeña, the ILP bill authorizes President Aquino to “address the projected imbalance of power supply and demand in the Lu-zon grid, particularly in the months of April and May of this year.” Osmeña observed that while av-erage electricity demand was pro-

jected at 8,700 MW, peak demand on power supply during the hottest summer days in April and May go up to 9,000 MW.

bicam impasse The chairman of the house Com-mittee on energy, meanwhile, said the bicameral committee tackling the special powers for Mr. Aquino to address the projected power short-fall this summer is yet to agree on two important provisions of the joint resolution. Liberal Party Rep. Reynaldo Umali of Oriental Mindoro said that during their congressional bicameral conference on Tuesday, members of both houses have expressed different views on the pass-on and time-frame provisions of the joint resolution on emergency powers. “We still need to agree on two sticky provisions, one is the pass-on provision...the Senate want to pass the additional cost to consumers but the house wants the government to sub-sidize it,” Umali said. Both chambers, however, would want the government to mainly use the ILP in generating additional power capacity. Osmeña said the adoption of the ILP scheme would cost consumers

P7 to P8 per kWh under the Senate version of the emergency powers. On the other hand, Umali said the lower chamber is pushing for the no pass-on scheme in using the ILP, as it is eyeing to tap Malampaya funds as subsidy. “Second, the time frame of the emergency powers, the Senate wants it to be extended until 2016 but the house, we only want the special powers for the President until July [since] as per DOe this crisis will be over in [July].... There’s no need for an extension,” Umali added. According to the energy depart-ment, the projected power shortfall from March to July is 782 MW. Under the house Joint Resolu-tion 21, the authority granted to the President shall be valid from the effectivity of this Joint Resolu-tion from March 1 until July 31 to cover additional generating capacity required for the period of the critical power shortage. Umali also said he is still optimis-tic that both chambers will reconcile the Senate and house versions of the measure on Monday. “We will meet again on Monday, most likely we will approve it on Monday,” he said.

All PUBs will soon be equipped with GPS device to minimize road mishaps–LTFRB

CEbU CiTy—Operators of buses and minibuses plying Cebu’s southern towns and cities oppose the plan of the Cebu provincial government to privatize the Cebu South bus Terminal (CSbT) on n. bacalso Avenue, Cebu City. They have also threatened to withdraw their support to Cebu Gov. Hilario Davide Jr. if the provincial government will push through with the plan. Julito Flores, president of the Cebu South Mini bus Operators Association, said the association supported Davide in the 2013 elections because they believed in his capacity and integrity to become governor. but the Cebu Capitol’s announcement that the CSbT will be privatized through the public-private partnership (PPP) scheme may result in their withdrawal of support to Davide, he said. PNA

By Joel R. San Juan

The Commission on elections-Bids and Awards Committee (Comelec-BAC) has declared a failure of bidding on

Wednesday for the P558-million contract to supply election results transmission solutions and management services (eRTSMS) for the 2016 polls. This developed as the Comelec opened the public bidding for the warehouse services that will provide an adequate storage area for the automated voting machines to be used in the 2016 elections. The Comelec-BAC has an approved budget of P168 million for the contract. In a resolution signed by Comelec-BAC Chairman helen Aguila-Flores issued on Wednesday, the Comelec-BAC ordered a mandatory review for the provision of eRTSMS and to proceed with the next cycle of competitive bidding. “The BAC Secretariat is hereby directed to furnish copies of this resolution to all concerned offices, observers and prospective bidder who purchased the bidding documents,” the resolution stated. Meanwhile, the Comelec said the warehouse will be used for the storage of the old Precinct Count Optical Scan (PCOS) machines, as well as the Optical Mark Reader (OMR) and Direct Recording

electronic (DRe) units set to be leased by the Comelec for the 2016 polls. “Bidding is restricted to Filipino citizens/sole proprietorships, partnerships, or organizations with at least 60-percent interest or outstanding capital stock belonging to citizens of the Philippines, and to citizens or organizations of a country the laws or regulations of which grant similar rights or privileges to Filipino citizens,” it said. The poll body said interested bidders must have completed a contract similar to the project within five years prior. The bidding will be using an open competitive bidding process using a nondiscretionary “pass/fail ” rule as provided by the government procurement law. The warehouse will be used for the storage of the old PCOS machines, as well as the OMR and DRe units set to be leased by the Comelec for the 2016 polls. The 82,000 units of PCOS machines that were used in previous elections have been placed in a warehouse in Cabuyao, Laguna, being maintained by the Comelec. According to the BAC, a complete set of bidding documents may already be purchased during weekdays until March 26 for a non-refundable amount of P50,000. The opening of the bids is set on March 26 at the Comelec Session hall.

Comelec opens bidding for PCOS warehouse-services deal

briefsngcp allots p2-b subsidy

for napocor-spug this yearThe national government is setting aside P2 billion to subsidize the National Power Corp.-Small Power Utilities Group (Napocor-SPUG) this year. The Napocor-SPUG is mandated by the law to undertake the electrification of areas not connected to the main transmission grid, also referred to as missionary areas. Government data showed that P1.967 billion shall be used exclusively for the capital outlay requirements of SPUG. The Napocor-SPUG wants to expand its missionary function in other nonelectrified island/isolated villages throughout the country with emphasis on the use of renewable energy whenever feasible. It has been providing electric service to 770,862 households in 231 areas nationwide through the operation of 116 land-based diesel power plants, nine power barges, 17 mini-grids, 154 micro grids, one grid-connected wind plant and one mini-hydro plant. The remaining P32.526 million shall be used by Napocor “to limit BNPP’s [Bataan Nuclear Power Plant] activities to the barest essential.” The Napocor currently maintains the mothballed nuclear facility pending directive from the energy department if it will privatize or revive the facility. Lenie Lectura

canilao: ppp program developing 61 projects worth $26-b TAGAYTAY CITY—The Philippine government achieved a milestone last year in the implementation of its Public-Private Partnership (PPP) Program, with 61 PPP projects in the pipeline worth $26 billion, PPP Center executive Director Cosette Canilao said. “2014 was a year that showcased the strides and milestones that come with the successful implementation of the PPP Program as a cornerstone of the country’s infrastructure agenda,” Canilao said in her welcome remarks at the opening of the Asia-Pacific economic Cooperation (Apec) PPP experts Advisory Council Meeting held at the Taal Vista hotel here on Wednesday. “One concrete and undeniable proof of the thriving program is the robust pipeline of projects that we have maintained in close coordination with various implementing agencies,” she added. Through the effective collaboration of the PPP Center and its partner agencies, it successfully awarded nine projects totaling about $2.9 billion, she said. PNA

By Cai U. Ordinario

The decline in international oil prices slowed the growth of retail prices in Metro Manila to 1.8 percent in January, according to the

Philippine Statistics Authority (PSA). Data showed that in February 2015 and Janu-ary 2014, the growth in the General Retail Price Index (GRPI) in the National Capital Region (NCR) was at 2.3 percent. “This resulted primarily from the annual decrease in the index of mineral fuels, lubricants and related materials at -21.7 percent,” PSA said. The contraction in retail fuel prices was sup-ported by the slowdown in retail prices of the heavily weighted food index to a growth of only 5.3 percent in January. Other commodity retail prices also slowed. This included beverages and tobacco index at 3.2 percent; crude materials, inedible except fuels index, 5.6 percent; chemicals, including animal and vegetable oils and fats index, 2 percent; and manufactured goods classified chiefly by materi-als index, 2.5 percent. A faster annual increase was, however, noted in machinery and transport equipment index at 0.2 percent, while that for miscellaneous manu-factured articles index remained at 1.8 percent. On a monthly basis, the GRPI declined 0.2 percent in January also due to cheaper oil prices. “The continuous price reductions in gasoline, LPG, diesel fuel and kerosene further pushed down the index of mineral fuels, lubricants and related mate-rials index by 7.2 percent,” the PSA said. Further, the month-on-month increase in food prices was flat at 0.2 percent and beverages and tobacco, 0.3 percent. The PSA also said there was also flat growth, or 0.1-percent growth in the prices of gravel; manufactured goods classified chiefly by ma-terials; miscellaneous manufactured articles, which included select furniture items and ready-made garments. Data also showed there was a zero growth in the indices of chemicals, including animal and veg-etable oils and fats and machinery and transport equipment. The GRPI is a statistical measure of the changes in the prices at which retailers dispose of their goods to consumers or end-users relative to a base year.

By Jovee Marie N. dela Cruz

The house of Representa-tives is set to open next week the period of amendment

on the proposed Philippine Fair Competition Act, a lawmaker said on Wednesday. Liberal Party Rep. Antonio Ra-fael del Rosario of Davao del Norte, one of the authors of the house Bill 5286, or the consolidated version of the proposed Philippine Fair Competition Act, said that there is no major amendment in the bill, which aims to minimize, if not to-tally eradicate, unfair competition, monopolies and cartels. “The period of amendment for the bill is next week because we still need to finalize the amend-ments this week. however, no ma-jor amendments in the measure,” added del Rosario, vice chairman of the house Committee on Trade and Industry. Del Rosario said that the lower chamber is still eyeing to approve the proposed competition act on March 18 or before its break from March 20. Congress will take a break from March 21 to May 3. “We have still the same timeline. so we’re hoping to get the bill ap-proved on third and final reading before our March break,” del Rosa-rio said. earlier, the Joint Foreign Cham-bers (JFC) and the Philippine Busi-ness Groups repeatedly urged the leadership of the house of Repre-sentatives to prioritize the passage of several economic measures, in-cluding the proposed Philippine Fair Competition Act. The measure refers to monopoly to a form of market structure in which one entity, having earned a privilege or obtained advantage over the others, accounts for the sales of goods or services.

  Shell Philippines exploration B.V. (SPex), the upstream company of Shell in the Philippines in charge of operating the Malampaya Deep Water Gas-to-Power Project, will install a $765-million platform to maintain fuel supply to the power-generating plants providing about half of Luzon’s electricity needs.  The installation will coincide with the maintenance shutdown of the Malampaya gas facility.  “We will try,” SPex Managing Director Sebastian Quiniones said when asked if the 30-day time frame for Phase 3 work could be shortened.   “Thirty days is our contractual obligation. Malampaya has always fulfilled its obligations.  We have such good technical people. We’re still talking to the government,” Quiniones said.  Phase 3 is meant to keep up the volume of gas production. “The reser-voir is depleting, so in a bid to boost the gas, we are undertaking Phase3,” the SPex official added.  Phase 2 involved the installation of two additional subsea wells at a cost of $250 million.  Malampaya is a joint undertaking of the Philippine government and the

private sector. The project is spear-headed by the Department of energy (DOe), and developed and operated by SPex on behalf of joint-venture partners Chevron Malampaya Llc. and PNOC exploration Corp.  Luzon grid is dependent on Malampaya as it fuels three power plants—Santa Rita (1,000 mega-watts), San Lorenzo (500 MW) and Ilijan (1,200 MW). The Santa Rita and San Lorenzo power plants are owned by Lopez-led First Gen Corp.,  while Ilijan is owned by Kepco Philippines. rate hikeThe 30-day shutdown of the Malam-paya natural-gas facility will defi-nitely result in higher power rates by at least P1 per kilowatt-hour (kWh), the Philippine Independent Power Producers Association Inc. (Pippa) had said.  “I guarantee that there will be a spike because that happens when-ever Malampaya shuts down,” said Luis Miguel Aboitiz, Pippa president.  The power plants fueled by the Malampaya facility will have to shift to liquid fuel to keep them running.  “Once the gas plants shift to liquid fuel, there’s around P1-per-kWh au-

news@businessmirror.com.ph Thursday, March 5, 2015 A5BusinessMirrorEconomy

tomatic increase,” said Aboitiz, who was referring to a spike in generation charge, the largest component of an electricity bill.   A Manila electric Co. (Meralco) bill is composed of the following charges: generation, distribution, transmission, taxes, system loss, and lifeline subsidy.  Aboitiz said he sees April 5 to 15 as the critical period, just right after the holy Week, as demand  peaks co-inciding with the Malampaya shut-down which will last until April 14.  Meralco Vice President and head of Utility economics Law-rence Fernandez agreed that the rate hike is estimated to reach at least P1 per kWh.   “So, that’s during the March to April supply period that will be re-flected in the April to May billing period,” Fernandez, who was refer-ring to the implementation of the higher power rates, said. Ge Philippines CeO Jose em-manuel de Dios said that cheaper oil prices could also temper power- rate increases. however, Aboitiz was quick to point out that it won’t help much because “ last year’s spike came from the shift to liquid fuel alone.”  “The moment these gas plants use liquid fuel there’s automati-ca l ly around P1-per-kW h in-crease. That’s excluding increases in WeSM [Wholesale electricity Spot Market] and other charges,” Aboitiz stressed.   But Pippa is hopeful that the market cap imposed by the energy Regulatory Commission (eRC) will help temper a rate hike.    “But it won’t be as bad [as 2013] because we’ve got a lower primary cap at the WeSM and a secondary cap,” Aboitiz said.

  The eRC has put in place a sec-ondary price cap of P6.245 per kWh once the P9-per-kWh  threshold was breached.  Aside from the secondary price cap, the eRC had also put in place a primary bid cap of P32 per kWh.   In July last year, energy Secre-tary Carlos Jericho L. Petilla an-nounced the probability of a loom-ing power shortage of at least 700 MW that will affect Luzon during summer this year. The scarce ener-gy reserve has pushed the govern-ment to come up with alternative solutions to avert its impact which include the Interruptible Load Pro-gram (ILP) for large commercial electricity consumers.  The program, however, is only voluntary. hence, it can’t compel the private sector to actually fulfill their promise to use their power generator sets instead of sourcing power from the grid.   Still, the private-sector com-panies and organizations are now teaming up to help the government in mitigating or ideally preventing the disruption of power.   “We have been given the heads up since last year. If I am  factory owner, I will do my part. ILP is a DOe initiative. As a stop-gap mea-sure it works but they also have to recognize that it needs long-term solution,” de Dios said.  The DOe and Meralco have al-ready secured commitment of hun-dreds of participants totaling 323 accounts with an aggregate potential deloading capacity of 617 MW.  Moreover, the DOe is banking on additional combined capacity of over 700 MW from various power projects that are expected to come online anytime from February to May this year.

Malampaya 30-day shutdown to push through on March 15

As defined under the measure, mergers are situations where two or more entities, previously inde-pendent of one another, join to-gether. These include transactions whereby: two entities combine into one; one entity takes control of the whole or part of another; two or more entities acquire control over another entity and other transac-tion whereby one or more under-takings acquire control over one or more entities. The bill also proposes to create the Philippine Competition Com-mission (PCC) that will prosecute those engaged in unfair and de-ceptive trade practices and other such practices with the purpose of preventing, restricting, or dis-torting competition. Further, the bill provides for a transitional clause in order to allow affected parties time to renegoti-ate agreements or restructure their business. According to del Rosario the PCC is an independent body that

shall have original and exclusive ju-risdiction to enforce and implement the competition law. “Likewise, the PCC is empow-ered to investigate violations of the competition law, issue subpoena duces tecum and testificandum, cease and desist orders, conduct ad-ministrative proceedings, impose administrative fines, issue adviso-ry or legal opinions, and is mandat-ed to submit reports to Congress, including proposed legislation for the regulation of commerce, trade and industry,” he added. he added that in determining whether anticompetitive agreement or conduct has been entered into or committed, the commission shall observe the following guidelines: Define the relevant market al-legedly affected by the anticompeti-tive agreement or conduct; Determine if there is actual or potential adverse impact on competition in the relevant mar-ket caused by the alleged agree-

Cheaper oil slowed retailprices in NCR in Jan–PSA

House sets deliberations on proposed Fair Competition Act next week

By Lenie Lectura

The 30-day maintenance shut-down of the Malampaya natural- gas facility in Palawan will push

through starting March 15 and the company in charge of operating the facility said it would do its best to finish the work ahead of schedule.

ment or conduct, and if such im-pact is substantial and outweighs the actual or potential efficiency gains that result from the same; Adopt a broad and forward-looking perspective, recognizing fu-ture market developments, but also taking account of past behavior of the parties involved and prevailing market conditions; Balance the need to ensure that competition is not prevent-ed or substantially restricted and the risk that efficiency may be deterred by overzealous interven-tion; and Assess the totality of evi-dence on whether it is more likely than not that the entity has en-gaged in anticompetitive agree-ment or conduct. Under the bill, any person who fails or neglects to comply with any term or condition of a binding rul-ing, a cease and desist order or an order for readjustment issued by the commission, shall pay a fine of not less than P50,000 and not more than

P200,000 for each violation. The measure, however, said that the decisions of the commission are appealable to the Court of Ap-peals, with the Supreme Court as the court of last resort. The commission may also im-pose upon entities fines of not less than P5,000 to note more than P100,000 where, intentionally or negligently, they supply incorrect or misleading information in any document, application or other paper filed with or submitted to the commission. The bil l also provides that an entity that enters into any anticompetitive agreement or con-duct as defined under this act shall, for each and every violation, be penalized by imprisonment from five to 10 years or a fine of up to 10 percent of the annual turnover of infringed during the previous fis-cal year, or up to 10 percent of the value of the assets of the infringed, whichever is higher, or both impris-onment and fine.

The Department of Budget and Management (DBM) will begin the implementation of the two-tier budgeting approach for the 2016 national budget that aims to monitor spending of government agencies in approved and ongoing projects to prevent fund misuse and corruption. Budget Secretary Florencio B. Abad said the new budgeting system is part of the efforts to plug the leaks of corruption and promote transparency and good governance in public spending. The new budget scheme aims to conduct separate reviews for on-going/approved programs vis-à-vis new or expanded ones to give better focus on each type of program. he said the Aquino administration is also heeding calls of various civil-society organizations to incorporate lesser number and magnitude of special purpose funds in the 2016 budget. Former National Treasurer and Social Watch convener Prof. Leonor Briones earlier said that the DBM has embedded at least P46 billion in “pork barrel style” allocation to key spending agencies in the 2015 national budget that are prone to corruption and fund misuse. Estrella Torres

dbm begins experiment on two-tier budgeting approach

fisherman’s friend A fisherman sun dries loads of fish known locally as abaga in Pasil, Cebu, over the weekend. A sunny humid summer season and a bountiful catch is more than what the fishermen and their families could ask for to earn a decent living. KevIN De LA CRuz

bag lady A winsome lady entrepreneur presents to customers and passersby her inventory of assorted bags from the Ilocos region. Most of the bags on display carry a P300 price tag. ROy DOMINGO

Thursday, March 5, 2015

OpinionBusinessMirrorA6

What Egypt needs noweditorial

EGYPT’S top court has forced a delay in elections for parliament—a governing body the country has been going without for almost three years. Sadly, that tells the story of what’s happened to

the revolution that toppled Hosni Mubarak.

Under President Abdel-Fattah El-Sisi, Egypt has proved as repressive and arbitrary as it was under the former dictator. Since 2013, when Mohamed Morsi–Egypt’s first freely elected president–was removed in a military coup, old-regime courts have either acquitted Mubarak and his henchmen or dropped most charges made against them after the revolution. Meanwhile, in mass trials, the same courts have sen-tenced the leaders and supporters of Morsi’s Muslim Brotherhood to death, though some of those sentences have since been overturned.

El-Sisi appears to believe his hard-line strategy is working, and that all he needs to do to keep Egyptians happy is to shore up the economy. But unless he can also usher in at least a measure of democratic gov-ernment, he may end up with no more support than Mubarak had at the end of his rule.

In the past year and a half, Gulf monarchies have provided some $23 billion in subsidies to float El-Sisi’s regime. And unlike Morsi, he has reduced budget-busting fuel subsidies and begun to implement other economic reforms that Egypt desperately needs. This year, after four years of flatlining, Egypt’s economy is expected to grow by 3.8 percent.

Yet the country’s recovery remains fragile. Falling oil prices have made the Gulf nations less eager to hand out billions more in aid. Egypt needs some $60 billion in foreign direct investment over the next four years, but other investors won’t necessarily be drawn to a nation with an arbitrary rule of law, a regulatory environment rigged to benefit companies owned by the military, a perpetual Islamist insurgency, and no legislature to check the president’s powers.

Nor can El-Sisi count on his own people to wait forever–for jobs or for democracy. The Egyptians who have twice gone into the street to topple their leaders won’t accept decades more of emergency rule under a thinly veiled military dictatorship, on grounds of fighting terrorism.

When parliamentary elections finally are held, El-Sisi will need to ensure they produce more than a rubber-stamp legislature. Islamist and liberal parties who commit to the democratic process must be al-lowed to compete and represent their constituencies. If he is tempted to follow advice to the contrary from his oil-rich authoritarian friends in Saudi Arabia and Russia, he should recall that Egypt lacks their resources and that Mubarak’s dictatorship was overthrown when gross domestic product was expanding at an average annual rate of 6 percent. A mild economic recovery alone won’t make El-Sisi secure or Egypt stable. Bloomberg editorial

MOST investors and stock market traders actually do not understand what influences the price movement of the stock market. I know that I have expressed that same idea

so many times but it bothers me to hear the misconceptions that people in the stock market hold.

By John M. Crisp | Tribune News Service

WE invent the tools that we use to create the world we live in; in turn, the tools that we surround ourselves with sometimes take on a life of their own, shaping our

culture in unanticipated ways.

Go to Baler; learn stock trading

When a weapon becomes more than a tool

People become confused because there are so many different ‘reasons’ that the experts give for price move-ment. Usually the books you read about investing either give a ‘menu’ of all the reasons for price movement or and hold on to one justification for price movement then tell you how to trade.

Often it is reduced to improb-able and unsuccessfully simple say-ings like “Buy on the rumor; sell on the news”. Investors tend to take a sentence or two from Warren Buf-fett and think that he became a billionaire that way. The favorite is “Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years”. They never quote Buffett when he said, “I bought a company in the mid-‘90s called Dexter Shoe and paid $400 million for it. And it went to zero”.

If you have ever been to the beach-es of Baler in Aurora province and watched the big waves hitting the beach, you could have learned some-thing about stock price movement.

Small children are always excited about the surf coming up on the beach. There is the constant action of the waves which is thrilling in a stable world. Then there will be that big wave that comes crashing up the shoreline. The kids will squeal as it is totally unexpected.

A person that has observed the surf for a time knows that the big wave is expected and not unusual. Further, that wave could have almost been predicted. One day the waves are bigger; another day smaller. It could be a sunny day and the waves are large or rainy and smaller.

One thing you can depend on is that there is always going to be sea-

water coming up on the sand and then receding back into the ocean.

During any time frame-stock pric-es are moving up and down. There are three dynamics of stock price move-ment; company and macroeconomic fundamentals, the pattern of price movement or “technicals” and the cyclical flow of stock prices.

The ocean surface waves that roll onto the beach are caused by only one thing: wind. In the same sense, as long as a listed company is in business and there are current stock holders, the price is going to move. But the ‘funda-mentals’ only give us an understand-ing of the price movement and can only be used to help explain after the movement has occurred. Stock prices do not necessarily move in conjunc-tion with the fundamentals.

We might assume that a major sea storm hundreds of miles away should push waves higher on the beach and that might happen. But it might not the same way that prices can go high-er on both good earnings and on bad earnings. If the price goes down, the ‘experts’ say something like the ‘sell on news’ or ‘The profits were in line with expectations”. We might have expected good profits but not that the company doubled its debt.

Technical analysis gives us a good idea of target objectives. You find a dry place on the sand a few meters above where the wave action is end-ing. Then all of a sudden a ‘normal’

wave pushes the water beyond that line into our laps. The technicals failed and it may be hard to predict what the next wave will do.

There are cycles that can help us with timing. Wind can often blow in a constant speed and direction for a prolonged period. You might find a cycle of three small waves followed by one large wave over and over.

Price movement can also follow cycles. The “Santa Claus” rally and ‘window dressing’ are an attempt to find a cycle. When it happens, you think you are a genius. When it does not, it is a glitch. In the 6/49 lotto, the cycle should be 1 in 13,983,816 draws. In the Bulgarian 6/49 lotto, the exact same numbers came up on September 6, 2009 and again four days later on September 10, 2009.

We think prices cannot go up (or down) forever and they won’t. But the Philippine stock market just had the longest consecutive number of up weeks in its history. Cycles are not always constant either.

Go sit on the beach in Baler. You might learn something about the market or not. Either way, you win.

E-mail me at mangun@gmail.com. Visit my web site at www.mangunon-markets.com. Follow me on Twitter @mangunonmarkets. PSE stock-mar-ket information and technical analysis tools provided by the COL Financial Group Inc.

Henry Ford didn’t set out to invent drive-in theatres, the suburbs or our irresistible addiction to oil, but once cheap, mass-produced automobiles became available, car culture took on a life of its own. Just as we invented the automobile, the automobile in-vented us.

Thus I’m reluctant for us to sur-round ourselves with more and more weapons, especially handguns. It would be hard to overstate how thoroughly firearms have already saturated American life. In fact, whether you’re a gun owner or not, it’s impossible to escape this sublimi-nal message: guns are and should be deeply interwoven into the fabric of our culture.

A great deal of our entertain-ment–movies, TV, videogames–de-pends on gunfire. If you doubt this, see the film American Sniper—which is itself an unabashed homage to weapons—and try to count the gun-shots in the previews alone; you can’t

keep up with their rapid discharge.Guns increasingly dominate the

landscape of American life. We’ve be-come habituated to them, and, more and more, they appear to us to be the first resort for self-defense and the default option for aggression.

Evidence abounds. Tammy Mey-ers was giving her 15-year-old daugh-ter a driving lesson in Las Vegas last month when she had an encounter with an angry driver. She drove home and picked up her 22-year-old son and, packing his handgun, the two of them went looking for the man. A few minutes later, Tammy Mey-ers was dead.

Last week, for reasons that haven’t been established, Joseph Aldridge drove from house to house in Tyrone, Mo., and methodically killed seven people. Could he have accomplished this killing spree with a knife or baseball bat? Of course, but it’s unlikely.

But would he have even attempted

these murders without the psycho-logical power and feeling of invinci-bility that the grip and heft of a .45 imparts? We’ll never know; he killed himself, as well.

And how else does one explain the recent death of Antonio Zambrano-Montes in Pasco, Wash. Depressed and unbalanced, he was throwing rocks at cars and at police. But as he appeared to flee the scene, un-armed, three policemen pursued him, firing at least 17 shots, killing Zambrano-Montes with seven shots that hit home.

Inadequate police training? Cer-tainly. But it’s worth noting that these officers grew up in a culture where guns have achieved almost iconic prominence, a first resort when under pressure and stress.

Unfortunately, look for more guns in our cultural backdrop, rather than fewer. More than 40 states already permit open carry of handguns, and more than 30 do not require a permit or license. Efforts by the National Ri-fle Association and gun manufactur-ers are unrelenting in the big-state holdouts like New York, California, Illinois, Florida and Texas to legalize the public display of handguns just about everywhere.

One wonders if the mere presence

of guns in our lives–in entertain-ment, in the news, on the hip of the guy standing in line in front of you in Walmart–will achieve a critical mass where they become the prob-lem rather than the problem-solver. In fact, we may have already reached that point.

Of course, this is the type of col-umn that will encourage some read-ers to accuse me of being afraid of guns or intimidated by them and wanting to abolish them entirely. Not true. In fact, few of the people who would rather see fewer guns around—including me—would urge abolition of citizens’ right to protect themselves with a weapon in their own homes. A reasonably rational case can be made for con-cealed carry, as well.

But when we stop seeing guns as tools and starting accepting them as revered icons of our culture, we’re in trouble. In fact, it’s too late for the 32,351 people who died by gunfire in 2010. Or the 90 who will die on the day you read this column.

John M. Crisp, an op-ed columnist for Tribune News Service, teaches in the English Department at Del Mar College in Corpus Christi, Texas. Readers may send him e-mail at jcrisp@delmar.edu.

OUTSIDE THE BOXJohn Mangun

Thursday, March 5, 2015

OpinionA7BusinessMirroropinion@businessmirror.com.ph

On sacred words and temple

GOD’S teaching and word is perfect and life-renewing, more precious than gold and sweeter than honey (Psalm 19:8, 9, 10, 11). God’s sacred temple, the house of the Lord, if destroyed

will be raised up in three days (John 2:13-25).

Words of everlasting lifeTHE second part of Psalm 19 focuses on God’s teaching and law (torah) as life-giving words. Didactic and ex-hortative in tone and an exultation in intention, the litany of praise of God’s law reflects divine attributes that are inseparable from the bless-ings that come with the acceptance of the law. Embracing it is to welcome the will of God and to live in accord with it–in a fulfilling and god-fearing existence. For it is God’s sacred word by which union with God is made possible, and whereby one is shaped into godlikeness. Reverence for God’s law clearly promises the best that life can offer anyone.

The law of God–His decree, pre-cepts, command, and ordinances as expressions of the divine will–is perfect or complete and trustworthy, reviving the soul and making wise even the simple ones who do not or-dinarily have wisdom. It is right and clear, delighting the heart and illumi-nating the eyes to see dimensions of truth otherwise unnoticed. It is pure,

true and just, enduring forever and a path to righteousness. The law as God’s word is beyond doubt life-giv-ing and ennobling, not constricting and demeaning. As Jeremiah (15:16) experienced, God’s words are a joy and the delight of his heart, and as Ezekiel (3:3) said, as sweet as honey. God’s word and instruction, accord-ing to Isaiah (2:3, 5), is the light to live by and the path to walk in. Indeed for the psalmist, it is more valuable than a heap of purest gold.

My father’s houseCENTERED on the temple in Jeru-salem, the gospel account contrasts Jesus’ awareness of the divine with those of the merchants and the of-ficials. For Jesus the temple is his Father’s house, the sacred space where one encounters God and where everyone and everything should be concentrated on giving glory to the Lord. The type of wor-ship Jesus saw was inappropriate; all the commotions and excitement were commercial, the buying and

selling of animals and the swapping and clinking sound of coins, the tu-mult of words in a marketplace–im-ages of the pursuit of a “worship of exchange.” The temple worship has degenerated into a frenzied quid-pro-quo (this-for-that) deal making: worshippers give God something, and God is expected to give wor-shippers something.

This marketplace mentality is out of place in the sacred temple of Jerusalem. As the prophet Zecha-riah (14:21) already foretold, at the end-time when things crooked would be made straight there would be no more merchants in the house of God. And Jesus acted out this prophecy; this turning the temple into a marketplace must stop. He made a whip and drove out of the temple area the vendors of oxen, sheep and doves together with their animals, as well as the mon-ey-changers as he overturned their tables. They are not needed in his Father’s house, where the free gift of mercy and compassion from God cannot be bought, bartered, or bar-gained; where animals and money must not mask the relationship be-tween God and His children.

In three days I will raise it upJESUS’S holy anger was met with a challenge from the temple officials. Jesus was in effect claiming that the end-time, the time of fulfilment, has come, and that God is his Father and so he has the authority to do what he did cleansing the temple. What sign can he in addition give for do-

ing so? In this connection Jesus’ disciples remembered the psalm passage (Psalm 69:9) that says zeal for the house of God makes His ser-vant vulnerable to the abuse and insults of others.

The authorities ridiculed Jesus when he said that the temple, which took forty-six years to build, can be destroyed and he will raise it up in three days. They could not under-stand him; Jesus was speaking of the temple of his body which they can indeed destroy but in three days he will resurrect. Jesus predicted his own death and resurrection, as the sign more than any other sign to identify him and explain why he did what he dared to do. He was in fact the replacement of the temple where man meets God.

Alalaong baga, as we examine our-selves during this Lenten season, let us not forget to ask whether we wor-ship God “in spirit and truth.” Do we turn to God only when we need some-thing and expect to get what we ask for by some exchange or bargain of our own making? “True worshippers will worship the Father in spirit and truth… God is spirit, and those who worship him must worship in spirit and truth” (John 4:23-24). To worship God in spirit and truth is to do so in, with and through Jesus Christ, God’s eternal Word and the Temple of the New Jerusalem.

Join me in meditating on the Word of God every Sunday, 5 to 6 a.m. on DWIZ 882, or by audio-streaming on www.dwiz882.com.

AlálAong BAgáMsgr. Sabino A. Vengco Jr.

In Iraq, cooperation and understanding are key to building stabilityBy Michael W. Brough

Los Angeles Times/TNS

THE United States has sent its most potent weapon to Iraq to battle Islamic State. She’s

a 5-foot-6-inch, 60-year-old grand-mother. When I served as a military adviser to Iraqi security forces in 2011, Um Safa was our cavalry battalion’s chief interpreter. She accompanied the commander to meetings, endured the same risks he did and did the same for me. I have since retired from the Army, and she returned to her family and civilian life in the United States.

When she emailed me in January that she would soon be shipping out to Iraq, I called her to connect again, our first conversation in two years.

Um Safa is not her real name, but it’s how Iraqis knew her when we served together. Like most interpreters, she took on a nom de guerre for safety, to conceal her real identity. Because hers means “mother of Safa,” her daughter’s middle name, it personalized her while shrouding her identity from our Iraqi partners. And it’s how I addressed her when I called her. I greeted her in Ara-bic, the way she’d taught me to.

To teach an American soldier to greet an Iraqi in her native tongue is a rare and powerful talent in this war.

Our conflicts in Iraq and Afghanistan are complex things where firepower alone cannot save the day. Interac-tions with the locals, with the enemy and especially with one’s allies take on extreme significance.

Guns destroy, but interactions can build. And cooperation between groups is what is needed now, because building a military force and perhaps a stable country was and is the goal.

When we were not among the local Iraqis, I knew Um Safa as Marlene, the actress-inspired name that was a gift from her father. He was an Assyrian Christian and cosmopolitan film dis-tributor who cultivated her love for the English language. After graduat-ing college in Baghdad, she moved to the US in 1979, became a citizen and began the family that blossomed in Los Angeles, the family she left in 2009 to become an interpreter to US troops.

This soft-spoken woman became a wonderful example of the strength America gains from its immigrants–the constantly regenerating fluency in understandings, cultures and lan-guages that provides a bridge to the countries of their birth.

Marlene was integral to maintain-ing our relationships with local Iraqi leaders, with police chiefs, army gen-erals and governors. Though US Army

units rotated in and out of Camp Kalsu, she remained a constant, stabilizing and calming American presence for our Iraqi counterparts.

She helped us avoid cultural mis-steps–such as showing the bottom of one’s boot, an affront in the Mus-lim world–and taught us how to craft relationships. Although American business dealings can be efficient and frank, those in Iraq begin with mean-dering small talk and tea drinking. Marlene helped us understand that.

She graciously conducted impromp-tu Arabic sessions with me at her small desk in the battalion headquarters. One of her most useful gifts to me was a turn of phrase with profound cultural resonance. In the giving and receiving of greetings, one often asks “How are you?” In Arabic, Alhamdulillah (“all praise to God”) is a common response.

But Marlene taught me a far more Iraqi reply: Fog al nakhal, literally “at the top of the palm tree.” It refers to a timeless Iraqi love song, and also in-dicates that the speaker has a perch above everything, enjoying peace and a commanding view. This answer al-ways won me at least a surprised look, but more often a wide smile or even a belly laugh. From this simple root, a conversation sprouts. From a conver-sation, goodwill; from goodwill, trust.

And now, as during my last tour in Iraq, trust is in short supply.

These days, real conversations between Americans and Iraqis are more necessary than materiel. Unlike ammunition and fuel, trust can’t be manufactured and shipped in; it must be cultivated. Cultural guides such as Marlene are what allow it to grow.

Marlene has undertaken a sac-rifice–separation from her family, a Spartan existence and significant bodily risk. After two tours of my own there and for complex reasons, my heart’s not in it anymore, but she’s returning again.

She seems unable to give up her bond with the place. She once showed me a picture of 1950s-era Baghdad, with a traffic circle, water fountain, lush greenery and strolling citizens. The scene could have depicted any peaceful mid-20th century city. “This is what it used to be like,” she mur-mured wistfully. “It used to be so beautiful here, before they ruined it.” I don’t know what she dreams for Iraq, but she has returned to make it better somehow.

At the end of our conversation, my teacher bid me goodbye: Masalama.

And I returned with another phrase she had taught me: Allah wiach–God go with you.

VAT-refund claim: The CIR’s inaction is the decision itself

BlooMBERg VIEWWilliam Pesek

DOES Australia need two central banks? The dilemma that faced Reserve Bank of Australia Governor Glenn Stevens on Tuesday certainly begs the question: The argument for

hiking rates was almost as compelling as the one for cutting them.

Australia, where one central bank won’t do

RECALL that in the past, it is the Commissioner’s decision, or inaction “deemed a denial,” that the taxpayer can take to the Court of Tax Appeals (CTA) for review.

As to the manner of appeal, the Supreme Court (SC) in the case of Mindanao II Geothermal Partnership v. Commissioner of Internal Revenue (CIR) laid down the rules of which the taxpayer can file an appeal in one of two ways: (1) file the judi-cial claim within thirty days after the Commissioner denies the claim within the 120-day period, or (2) file the judicial claim within thirty days from the expiration of the 120-day period if the Commissioner does not act within the 120-day period.

Failure to file a judicial claim with the CTA within 30 days from the expiration of the 120- day pe-riod rendered such Commissioner’s inaction that is “deemed a denial,” final and unappealable as provided in Revenue Memorandum Circular No. (RAMO) 54-2014.

However, notwithstanding the above rules, some taxpayers prefer to elevate the Bureau of Internal Revenue’s (BIR) final decision rather than the Commissioner’s inaction that is “deemed a denial.” As such, despite of the expiration of the 120-day period, they still waits further for the BIR to issue the final decision in the belief that the Commissioner can still process their claims even beyond the expiration of the 120 day period.

In a recent case of Rohm Apollo Semiconductor Philippines Inc. (Rohm) v. CIR, G.R. 168950, the SC clarified this issue.

In this case, instead of filing a judicial claim within the 30 days from the lapse of the 120-day period on April 10 or until May 10, 2001, Rohm filed a Petition for Review with the CTA on September 11, 2002. The SC denied the Petition saying that Rohm’s judicial claim for a refund was filed beyond the prescriptive period.

In clarifying the waiting issue, the SC reminded the taxpayers that when the 120-day period lapses and there is inaction on the part of the CIR, they must no longer wait for the BIR to come up with a decision thereafter.The CIR’s inaction is the decision itself.It is already a denial of the refund claim.Thus, the tax-payer must file an appeal within 30 days from the lapse of the 120-day waiting period.

Now, as can be gleaned from the foregoing, a new development for

value added tax (VAT) refund is that the CIR’s inaction is now the decision itself and not merely an “inaction that is deemed a denial.” And the implication of this is that no more decision is expected from the BIR after the lapse of the 120-day wait-ing period.

Indubitably, the SC is sending a message that since the Commis-sioner’s inaction is itself a decision, then the BIR may now be barred from proceeding further to process the claim. This pronouncement clears all doubts for taxpayer who prefers to wait for the BIR’s final decision rather than to elevate the Commissioner’s inaction that is “deemed a denial” because as pres-ently worded the CIR’s inaction is itself a decision.

Another development is that it cemented the rules upon expiration of the 120-day period. As it stands, if the taxpayer does not agree with the CIR’s inaction which in itself a deci-sion, the remedy of the taxpayer is to file an appeal within 30 days from the lapse of the 120-day waiting period. In the language of SC, the taxpayer “must” no longer wait for the BIR to come up with a decision thereafter and “must” file an appeal within 30 days from the lapse of the 120-day waiting period.

As a final note, with these new developments on VAT refund claims, taxpayers who are planning to claim VAT refunds as well as those with pending administrative claims must be vigilant and must pay attention of their rights as enunciated in the above SC ruling. Otherwise, their claims fall through the cracks or they may be left with no remedy of refund at all.

The author is a senior associate of

Du-Baladad and Associates Law Of-fices, a member firm of World Tax Ser-vices Alliance. The article is for general information only and is not intended, nor should be construed, as a substitute for tax, legal or financial advice on any specific matter. Applicability of this ar-ticle to any actual or particular tax or legal issue should be supported there-fore by a professional study or advice. If you have any comments or questions concerning the article, you may email the author at ronald.cubero@bdblaw.com.ph or call 403-2001 local 350.

TAx lAW foR BuSInESSAtty. Ronald S. Cubero

In the end, Stevens did neither, sur-prising markets that were betting on a 25 basis-point cut in the 2.25 percent overnight cash rate. The decision will strike many peers around the region, who have been racing to slash borrow-ing costs, as odd. With Australia facing the highest unemployment rate in 12 1/2-years, slumping business spend-ing and deflation spreading around the globe, a little more RBA stimulus would seem in order.

That’s until you consider the out-

of-control housing market, which is in the grip of an irrational exuberance arguably beyond anything the U.S. ex-perienced in the mid-2000s. In Febru-ary alone, Sydney homes surged 14.7 percent from a year earlier, the fast-est pace in five months. According to economist Lindsay David, author of the new book “Print: The Central Bankers Bubble,” Sydney land prices rose 512 percent faster than inflation between 2001 and 2011, while the city’s popu-lation only grew 16 percent. Perth in

the West outpaced inflation by 1,094 percent with population growth of 28 percent. Stevens is damned if he responds to slowing growth (which would add more fuel to the property bubble) and damned if he doesn’t (the first recession in over 20 years may be on his watch).

What’s a savvy, respected central banker to do? Stevens can hardly clone himself to do two jobs -- one to cap the exuberance in asset mar-kets, one to shield the nation from hardship. The problem, as is often observed, is Australia’s two-speed economy. One features the mining-heavy regions -- Queensland and resource-rich western states -- which until recently have thrived on Chi-na’s voracious appetite for iron ore and coal. High salaries there have propped up property markets that have more in common with the casinos of Melbourne and Perth than rational exchanges. (To make things worse, rich Chinese buyers have helped drive values higher and

higher.) Meanwhile, workers in much of the rest of the country are falling behind.

The more these three moving eco-nomic parts diverge, the more inequal-ity grows and the less monetary policy matters. As Stevens said on Feb. 13: “The economy needs a bit more growth than we currently have. The board is also very conscious of the possibility that monetary policy’s power to sum-mon up additional growth in demand could, at these levels of interest rates, be less than it was in the past.”

In that context, the RBA’s decision to stand pat could be its way of pres-suring Prime Minister Tony Abbott. Even as households struggle, Abbott’s 17-month-old administration has been paralyzed by questions about his lead-ership. He has focused more on trim-ming the national budget than the hard task of diversifying the economy’s growth engines and bringing them into closer alignment. He killed the previ-ous government’s effort to tax miners to redistribute wealth to depressed ar-

eas. He’s done little to invest in educa-tion, training or better infrastructure —all crucial to improving Australia’s competitiveness.

Government gridlock has left ad-dressing rising unemployment to the RBA’s blunt interest-rate tool. This isn’t a unique problem, of course. Ste-vens, says Ben Alexander of Ardea Investment Management in Sydney, faces “a familiar dilemma for central banks. The Bank of England setting monetary policies for London or for all of the U.K.? The European Central Bank for Germany or peripherals? Poli-ticians who can’t or won’t help central banks with fiscal policy -- a worldwide problem. Not easy for central bankers particularly since they are arguably pushing on strings anyway.”

Stevens isn’t entirely helpless. “Australia doesn’t need two RBAs,” says Lindsay. It needs economic man-agers with “a backbone stronger than a chicken wing.” Steeper fees for for-eign buyers are one option. So-called macroprudential policies are another.

As I’ve argued before, Australia should be slapping harsh curbs on leverage, requiring much larger downpayments and lower loan-to-valuation ratios.

Still, the best remedy for the RBA and the nation is for Abbott’s govern-ment to regain focus and get control over its disparate economies. Austra-lia must rediscover the liberalizing instincts that dominated Canberra in the 1980s and 1990s and transition back to a non-mining economy. Rather than prune programs, Canberra should increase research and development spending to create high-paying jobs in science, technology, engineering and education. Also, let’s stop downplay-ing the potential of tourism, high-end manufacturing and other trade-relat-ed sectors that atrophied as mining boomed over the last 15 years. Only after the basic structure of the econ-omy is properly aligned can the RBA hope to have an impact with monetary policy. That’s not a job for Stevens, but for a government that, like Australia’s economy, has lost its way.

A8

2ndFront PageBusinessMirror

www.businessmirror.com.phThursday, March 5, 2015

Expect hike in March generation charge

ANGARA CITES ETERNAL PLANS FOR HELPINGMIDDLE-CLASS PINOYS SECURE GOOD FUTURE

SM Investments reports record earnings in 2014

Sen. Juan edgardo “Sonny” Angara (third from left) displays a plaque of appreciation presented to him by eternal Plans following his keynote speech at the preneed leader’s 34th anniversary celebration and annual awards night for its top sales producers last year. He commended eternal Plans for helping what he called the growing middle class of salary and wage earners to secure the futures of their families by offering preneed plans for education, pension and memorial life. With him are (from left) D. Antoinette C. Jacinto, eternal Plans chairman of the board and CeO; T. Anthony C. Cabangon, chairman; Ambassador Antonio L. Cabangon Chua, founder and chairman emeritus; D. edgard A. Cabangon, managing director of sister company Isuzu Gencars; and elmer M. Lorica, president and COO. KEVIN DE LA CRUZ

By VG Cabuag

SM Investments Corp., the hold-ing firm of the Sy family, on Wednesday reported a slightly

higher attributable net income last year as lower trading gains pulled up the company’s profits. The company said it made a re-cord P28.4 billion in earnings last year, some 3 percent higher than the previous year’s attributable income of P27.4 billion. Excluding extraor-dinary items, such as trading gains from the banks, SM’s recurring net income grew 14 percent, the com-pany said. SM’s underly ing ear nings growth was mainly driven by BDO Unibank Inc., the country’s largest lender, which posted a core-income growth of 18 percent. Together with China Banking Corp., banks accounted for 41 percent of SM’s consolidated net income in 2014. Property, meanwhile, contributed

38 percent and retail 21 percent. “The group’s strong underlying earnings growth was the result of solid performance and ongoing ex-pansion in all our three core busi-nesses. During the year we raised additional capital and entered into several strong partnerships, accel-erating our investments for growth and ensuring we expand in line with our continuing optimism about the economic prospects of the Philip-pines,” SM President Harley Sy said in a statement. Consolidated revenues grew 9 percent to P275.7 billion in 2014, from P253.3 bi l l ion in 2013, mainly as a result of good retail environment, which also boosted rental revenues in SM’s property business. Last year SM raised P15 billion in May 2014 from a public offer of pe-so-denominated retail bonds with maturities of seven and 10 years. In June 2014, SM issued a $350-

million 10-year senior unsecured bond at a fixed rate of 4.875 percent per annum, a landmark transaction marking the longest-dated dollar bond issued by SM and the com-pany’s fourth dollar-denominated bond issuance since 2009. BDO recorded net income at-tributable to equity holders of the parent of P22.8 billion, slightly higher than the P22.6 billion in the previous year. BDO’s recurring income grew 18 percent, excluding one-off trading gains in 2013. On the other hand, property developer and mall operator SM Prime Holdings Inc. registered consolidated net income of P18.4 billion last year, a 13-percent in-crease year on year, on the back of revenue growth of 11 percent to P66.2 billion. SM Retail Inc. sustained its growth with net in-come increasing by 3 percent to P5.9 billion, while total sales rose 9 percent to P197.1 billion.

President Manuel L . Quezon once said: “…[I]t is the duty of the State…to promote people’s welfare, assur-ing to everyone an equal economic opportunity, wholesome living conditions, a chance to work for a decent livelihood, a fair share in the fruits of the country’s mate-rial progress, and the enjoyment of a standard of living in accor-dance with the basic needs of self-respecting intelligent men…” In many ways, it appears this duty remains unfulfilled. Many through-out the country are overworked and underpaid—if not hungry, sick, poor and jobless.

Taxation THROUgH the Senate Committee on Ways and Means which I chair, we discovered that because our income taxes have remained unchanged for nearly two decades and that the con-sumer price index has nearly doubled, many families find themselves over-burdened and hard-pressed to make ends meet. Related story on B2-1 To illustrate, a fresh graduate taking on an entry-level BPO (busi-ness-process outsourcing) position (i.e., call center) would be taxed at the third highest rate of 25 percent, while a midlevel professional who earns P60,000 a month would be levied the same rate as the owner of the company they work for—Asean’s second highest of 32 percent.

Instead of taking home more from their earnings to jump-start their careers or to benefit their families, many see an inordinate portion of their hard day’s work taken away by the government—most of the time, automatically withheld.

Filipino middle classWITH the current scheme, a signifi-cant portion of the government’s tax revenues come from wage and salary earners. This overworked and increasingly thinned-out “middle class” will find a taxation system that is regressive, instead of progressive as mandated by the Constitution. Hence, they are primarily in our minds while we embark with tax reform, which includes lowering our rates, adjusting our brackets across-the-broad and simplifying administration. It is their take- home pay that will grow because of the recently enacted law, which I sponsored and authored, that rais-es the tax-exemption cap for 13th- month pay and other salary benefits from P30,000 to P82,000. Beyond tax matters, they are also among those angered by rev-elations of public corruption, for it is their money after all that is al-legedly being squandered and their government allegedly squandering it. They would probably leverage a Freedom of Information (FOI) law to exact more transparency and accountability from their leaders—

a cause that I have supported ever since my days as a congressman. They will also invest more in their own country, if the business environ-ment is made more conducive and competitive. For this reason, we have proposed amendments to our Cor-poration Code, intended to improve corporate governance, better protect the rights of minority shareholders, contribute to the ease of doing busi-ness, and to harmonize the code with the current practices at the Securities and Exchange Commission (SEC). Aristotle once wrote that the “middle classes” were a moderating force in society. I find that growing and protecting this moderate force has been one of my primary advoca-cies as a legislator.

Preneed industry AnD I believe this is where my inter-ests dovetail with yours, given that throughout the years, you in Eternal Plans Inc. have helped many middle-class Filipinos with securing a good future for themselves. Indeed, the preneed industry offers a savings mechanism to help Filipinos realize their deepest aspira-tions—education for their children, health care in times of illness, pen-sion upon retirement and memorial services upon death. We are all familiar with how the industry has gone through some very tough times. Hence, it was

Speech delivered by Sen. Sonny Angara at the 34th foundation anniversary and Annual Awards Night of Eternal Plans Inc.

Continued on A2

By Lenie Lectura 

Generation charge for March electricity bills is expected to go up due to

higher prices at the Wholesale electricity Spot Market (WeSM), an official of the Manila electric Co. (Meralco) said on Wednesday.

Fernandez said in a text message. A Meralco bill is made up of many charges. The largest component is the generation charge, or the portion of the bill that goes to the generation companies or power producers. Meralco sources its power re-quirements from the WESM, PSAs and IPPs. Fernandez explained that higher demand for electricity and the lower dispatch levels of power plants that went offline could be the reasons for higher WESM prices recorded dur-ing the supply month of February that will be reflected in the March billing of Meralco customers. “This maybe due to an increased demand, as peak went up by around

200 megawatts from January to February, coupled with more ca-pacity on outage like the Masinloc and Quezon Power,” the Meralco official added. The utility firm, which record-ed 5.6 million customers at end-2014, will release next week the final adjustment for the March power bills. Last month Meralco announced that all bill components for Feb- ruary shoot up to P10.51 per kilo-watt-hour (kWh). The upward adjustment also translates to an increase in overall power rates by P168 for consumers with a monthly consumption of 200 kWh; P252 for 300 kWh; P336 for 400 kWh; and

P420 for 500 kWh. generation charge went up by P0.52 per kWh to P5.24 per kWh due to a P1-per-kWh increase in the rates of generation companies under the PSA, as capacity fees normalized from a low level in the preceding month.    Transmission charge also went up by P 0.12 per kWh to P0.99 per kWh. Taxes increased by around P0.08 per kWh to P1 per kWh, while other charges such as system-loss charge and lifeline subsidy increased by P0.08 per kWh to P0.55 per kWh and P0.14 per kWh, respectively. The February 2015 billing will also reflect the new Feed-in Tariff allowance charge of P 0.04 per kWh, a uniform charge that will be billed

to all on-grid electricity consumers nationwide in support of the Feed-in-Tariff Program.  Meralco reiterated that it does not earn from the pass-through charges, such as the generation and transmis-sion charges. Payment for the generation charge goes to the power suppliers such as the plants selling to Meralco through the WESM and under the PSAs, as well as the IPPs. Payment for the transmission charge, mean-while, goes to the national grid Corp. of the Philippines. Of the total bill, only the distribution, supply and metering charges accrue to Meralco. Distribution charge remained at P2.20 per kWh.

  “We are still waiting for billings from independent power produc-ers/power supply agreements [IPPs/

PSAs], but WESM results appear to point to higher market prices,” Meral-co Utility Economics Head Larry