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the month’s highlights 1 Political FUTURE DEVELOPMENTS FUTURE DEVELOPMENTS More Filipinos see better times over the next 12 months Palace: Rep. Arroyo’s stay at Veterans Memorial Center – SWS, BSP is temporary The percentage of Filipinos expecting improved quality of life Former President Gloria Arroyo will enjoy the relative comfort and economic conditions over the next 12 months (“optimists”) of the Veterans Memorial Medical Center in Quezon City only for rose, while those seeing them worsening (“pessimists”) was as long as her medical condition will require it, an offi cial said. unchanged, resulting in a net personal optimism score of +30% (see story page on p10) on quality of life and +22% in the 3rd quarter, the highest so far in 2011, according to the survey conducted by pollster Social Service Stations (SWS). (see story page on p17) Chief Justice Corona impeached by House of Representatives On Dec. 12, the House of Representatives impeached PH not likely to meet many MDGs Supreme Court Chief Justice Renato Corona on allegations The Philippines almost certainly will not achieve many of the of betrayal of public trust, culpable violation of the Millennium Development Goals (MDGs) by the 2015 deadline. Constitution, and graft and corruption. The Senate, as With only 3 years left before the expiration of the 15-year impeachment court, is set to commence impeachment timeframe, the country is only poised to meet 2 of the 8 goals, proceedings on January 16 upon resumption of session. and is as much as 19 years behind attainment of the targets. (see story page on p11) (see story page on p18) PAST DEVELOPMENTS Business SC orders Hacienda Luisita distributed to farmers FUTURE DEVELOPMENTS Voting 14-0, the Supreme Court (SC) on Nov. 22 ordered the distribution to farmers of 4,915 hectares of the Cojuangco Higher property tax to take effect in 2012 family-owned Hacienda Luisita sugar estate, in accordance with Land owners will face higher taxes as more provinces and the land reform program. (see story page on p11) cities are updating their schedule of market values (SMVs) in 2012. This is in response to the circular issued in October 2010 Gen. Dellosa appointed Armed Forces chief requiring all local government units (LGUs) to update property President Aquino has appointed Northern Luzon Command chief valuations used in appraising properties and computing for real Lt. Gen. Jessie Dellosa as Armed Forces’ chief of staff, replacing property taxes. (see story page on p32) Gen. Eduardo Oban Jr., who retired on Dec. 12. (see story page on p12) Negotiations on general review of Pjepa slated for January 2012 Gov’t challenged to speed up massacre trial, as court The Philippines and Japan have agreed to move the 4th meeting of issues new freeze order on Ampatuan assets the Philippines-Japan Economic Partnership Agreement (PJEPA) Two opposition lawmakers on Nov. 21 demanded that the Justice Joint Committee to January 2012. The joint meeting, originally department resolve the Maguindanao massacre case quickly. This, scheduled for December 2011, will tackle the general review as the government succeeds in securing a new 20-day freeze of the trade agreement. (see story page on p33) order on the Ampatuan assets just before the expiration of an earlier freeze order. (see story page on p13) Mining, Oil and Gas Gov’t intensifi es small-scale mining regulation Economy Amidst the mounting small-scale mining-related issues, several government agencies and local government units (LGUs) have PAST DEVELOPMENTS intensifi ed small-scale mining regulation. With its current dismal performance, the mining industry group may consider banning S&P raises PH rating outlook small-scale mining. (see story page on p33) New York-based credit watchdog Standard & Poor’s Ratings Services upgraded the Philippines’ sovereign credit rating Davao city – mining free outlook to “positive” from “stable” on Dec. 16. In a bid to declare the city mining-free, the Davao city council (see story page on p15) proposed a resolution banning open-pit and underground mining. (see story page on p34) PH ranking on fi nancial dev’t up The Philippines ranked 44th out of 60 economies, a 6-notch improvement from 50th in the previous year, in the World Economic Forum’s (WEF) Global Financial Development Index 2011. (see story page on p16) Philippine Alert December 2011 2 the month’s highlights Large-scale miners to embark on social management expansion in plans 2012 AMLA amendments passed in the Lower House Despite numerous industry problems, the large-scale mining The House of Representatives approved on 3rd and fi nal reading industry has earmarked approximately P1.5 billion for social House Bill 4275 amending the Anti-Money Laundering Act of development and management programs (SDMP) as well as 2001 a few days after the legislation was certifi ed as urgent by undertake project development plans in 2012. President Aquino. The bill expands the coverage of the offense (see story page on p35) of money laundering, but is criticized as a diluted version as it excludes a provision allowing the Court of Appeals to authorize IT Update the Anti-Money Laundering Council to probe into suspicious accounts without notifying the account owners. BPO 101 – a new subject for inclusion in the college core (see story page on p56) curriculum The Business Process Association of the Philippines (BPA/P) and the Senate adopts Terrorist Financial Suppression Act Commission on Higher Education (CHEd) signed a memorandum The Senate Committee on Banks, Financial Institutions and of cooperation in November 2011, formalizing their partnership Currencies has adopted in full Senate Bill (SB) 2676 or the for the institutionalization of Service Management subjects in Terrorist Financial Suppression Act of 2011 authored by Senator the college curriculum. Among the subjects is BPO 101, an Edgardo Angara. (see story page on p57) introductory course on the IT-BPO industry that could be included in the core curriculum of any college. (see story page on p36) Multi-billion peso investments strengthen PH’s telco infrastructure In 2011, dominant carriers PLDT and Globe Telecom embarked on multi-billion peso network improvement programs in preparation for greater bandwidth requirements as more and more Filipinos go online. (see story page on p37) Infrastructure 1st PPP project bidding: Successful After a delayed start, the banner program of the Aquino administration, the public-private partnership (PPP) infrastructure program, has been fi nally launched with the successful bidding of the 4-kilometer Daang Hari-South Luzon Expressway road link project. (see story page on p49) Keen interests in Mactan-Cebu Int’l Airport Project ..but the government is uncertain what to do with it. Nevertheless, several of the country’s biggest property developers and infrastructure fi rms are keeping their close eye on the airport project that has been tentatively scheduled for bidding in 1Q2012. However the government is unsure what to do with the project. (see story page on p51) CongressWatch House bills approved on 3rd reading Among the key economic/business bills approved by the House of Representatives on 3rd reading are the following: Data Privacy, Rationalization of Fiscal Incentives, and Customs Modernization and Tariffs Act. Before the Congress adjourned on December 17, some 19 additional measures were approved on 3rd reading. Sessions will resume on January 16, 2012. (see story page on p55) Philippine Alert December 2011 CORPORATE BRIEFS 3 WORD FOR WORD “A tyranny of the majority.” Integrated Bar of the Philippines president Roan Libarios on the impeachment case against Supreme Court Chief Justice Renato Corona. “Those crying for the inhibition of the Chief Justice are trying to be a law unto themselves. They seek no less than the unconstitutional power to determine who will judge what cases. The Constitution does not grant that power to anybody, no matter how strident or self-righteous.” Sen. Miriam Defensor-Santiago on the clamor from some quarters for Chief Justice Renato Corona to inhibit himself from cases involving Ms. Arroyo due to his alleged close ties to the former president. “Time is precious but time is running out.” Mr. Hubert d’Aboville, president of the European Chamber of Commerce and Industry, urging President Aquino to amend the Constitution to open up the economy and make the business climate more favorable to foreign and local investors. “My response to them is this: if they were aggressive in stealing the peoples’ money in the past, we will triple our speed in holding them accountable.” President Aquino on accusations that his administration is being ‘too aggressive’ in its campaign against his predecessor, Gloria Arroyo. Philippine Alert December 2011 4 COMMENTARYCOMMENTARY s this a re-active government? It seems so, too many of the actions and decisions are in reaction to criticism or Ioutside events, not part of a planned program. The latest case is P1.1 billion to be spent on Manila’s airport after it was ranked as the worst airport in the world to sleep in and the 5th most hated. Yet it’s been known for years that the airport is totally inadequate and desperately in need of improvement. Government has been told many times. Now international derision is there, it need not have been. The impeachment case against Chief Justice Corona brings in sharp relief to some areas of Philippines society that need change, and not just Philippine society, but many others. And they center on the excesses law has gone to. You can no longer have an accident without an ambulance-chasing lawyer convincing the other party to sue—nowadays in the U.S. for absurdly large amounts of money. The intent of law is to punish the guilty party so he won’t do it again.
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