The Daily News WE TELL IT LIKE IT IS Phil

Vol. 15 No. 66 April 7, 2014 WEATHER FORECAST

The Nation METRO MANILA 23°C to 34°C CEBU 24°C to 32°C  Sen. Revilla asks SC to stop plunder DAVAO 23°C to 33°C indictment

Currency in Currency 1 Peso in  Legality of ‘no-build zone’ policy under COUNTRY study Peso in US$1 Currency US (dollar) 44.9800 1.0000 0.0222  SC to rule on RH Law Japan (yen) 0.4328 0.0096 2.3105  NBI report on MRT extortion UK (pound) 74.6623 1.6599 0.0134 Hong Kong (dollar) 5.7986 0.1289 0.1725

China (yuan) 7.2423 0.1610 0.1381

40.7686 The Economy and Business Canada (dollar) 0.9064 0.0245 Australia (dollar) 41.5136 0.9229 0.0241  More firms to raise funds from bond market New Zealand (dollar) 38.4083 0.8539 0.0260

 Fast-tracking of foreign investors’ VAT EMU (euro) 61.7126 1.3720 0.0162

refund

 BSP expects more mergers among small PESO–DOLLAR RATE 30 trading days to April 4, 2014 banks Open: P 45.050

 PPP winner to comply with ‘due process’ 42.00 Close: P 44.940 42.50  Foreign chambers urge government to 43.00 High: P 44.930

address truck ban issue 43.50 44.00 Low: P 45.050

 44.50 TRO on P10Bn Palawan project drives W.A.: P 45.003 45.00 investor away 45.50 46.00 Vol.: 664.20 Mn

Corporate Briefs

 Ayala Corp. accelerates spending on power PSE COMPOSITE INDEX and infrastructure 30 trading days to April 4, 2014 Open: 6,607.06

 Manila Electric Co. to supply electricity to High: 6,626.01 7,300.00 naphtha cracker plant of JG Summit 7,100.00 Low: 6,561.20 Holdings, Inc. 6,900.00 6,700.00 Close: 6,561.20 6,500.00 6,300.00 Index: 6,561.20 6,100.00 5,900.00 Vol.: 2.100 Bn 5,700.00 Val.: 7.964 Bn

Disclaimer: The articles in this Daily News have been culled from various media sources. We cannot, therefore, vouch for the accuracy of what is reported. For more information on the WBF, you can call 810-96-06 to 09, or visit our website at www.wallacebusinessforum.com.

The Nation

Sen. Revilla asks SC to stop plunder indictment Sen. Ramon “Bong” Revilla Jr. asked the Supreme Court (SC) to immediately resolve his plea to stop his indictment for plunder of pork barrel funds. Through his lawyer Joel Bodegon, the senator filed an urgent motion on Friday, reiterating his petition for a temporary restraining order (TRO) enjoining the Office of the Ombudsman from proceeding with its criminal proceedings against him. Sen. Revilla, on vacation in Israel, urged the SC to act on his petition for a TRO, saying it would become moot and academic once the Office of the Ombudsman files the plunder case against him and others involved in the pork barrel scam before the Sandiganbayan. He reminded the SC of the ombudsman’s joint resolution last week finding probable cause against him.

Legality of ‘no-build zone’ policy under study Justice Secretary Leila de Lima has assured parties questioning the government’s “no-build zone” in Yolanda-hit areas in Eastern Visayas that the Department of Justice (DOJ) will study the legality of the policy. In a letter last March 5 to Mr. Salvador France and Mr. Peter Gonzales, vice chairmen of fisherfolk alliance Pambansang Lakas ng Kilusang Mamamalakaya ng Pilipinas (Pamalakaya), Sec. De Lima said the DOJ will look into the contention of fisherfolk in affected provinces that the policy would deprive them of their economic rights. In a letter last February, Pamalakaya asked the DOJ to determine if the policy was illegal since it was not supported by any executive or administrative order from President Aquino. The policy would ban fishermen and coastal people from returning to fishing villages and building settlements near the coastlines and 40 meters away from the shorelines, they added.

SC to rule on RH Law The debate over the controversial Republic Act No. 10354 or the Responsible Parenthood and Reproductive Health Act is scheduled to be settled tomorrow. The Supreme Court (SC) included in its agenda in its summer session in Baguio City the deliberation on 15 petitions questioning the legality of the divisive law, according to an insider. But the source said the resolution of the case would depend on the readiness of the justices with their opinions and also on the length of discussions. The much-anticipated ruling of the high court on this case would resolve the constitutional issues contested by pro-life groups and supporters of the RH Law during the 5- part oral arguments held in July and August last year. The high tribunal issued on March 19, 2013 a 120-day status quo ante order (SQA) halting the implementation of the law signed by President Aquino in December 2012.

NBI report on MRT extortion Malacañang appealed to the public for patience while waiting for the results of a probe conducted by the National Bureau of Investigation (NBI) regarding allegations of extortion against the manager of the Metro Rail Transit (MRT). Referring to the complaint of Czech Ambassador Josef Rychtar against MRT chief Al Vitangcol, Presidential Communications Operations Office Secretary Herminio Coloma Jr. said all aspects of the case are being taken into consideration, especially since the primary objective is to “provide better service to commuters.” He kept a safe distance, however, with regard to plans of the House of Representatives to conduct its own inquiry on the issue in aid of legislation, since it is a separate and coequal branch of government.

The Economy & Business

More firms to raise funds from bond market The Philippine Dealing and Exchange Corp. (PDEx) expects to grow by leaps and bounds the amount of money raised in the bond market as companies scramble to take advantage of the liquidity in the market as well as the low interest rate regime. PDEx president and chief operating officer Cesar Crisol said the P83.5 billion raised in the bond market last year could easily be surpassed this year as companies have already raised P81.8 billion. Companies that have tapped the bond market so far this year include JG Summit Holdings Inc. of taipan John Gokongwei, dominant carrier Philippine Long Distance Telephone Co. (PLDT), San Miguel Brewery Inc. of diversified conglomerate San Miguel Corp. (SMC), Filinvest Development Corp. of tycoon Andrew Gotianun, Manila North Tollways Corp. (MNTC) of infrastructure giant Metro Pacific Investments Corp. (MPIC), and multimedia giant ABS-CBN Corp.

Fast-tracking of foreign investors’ VAT refund The government will fast-track the payment of value-added tax (VAT) refunds to foreign investors. Trade Undersecretary Adrian Cristobal Jr. told reporters the move is in response to a concern which Japanese businesses in the Philippines has been raising during meetings with the government. “On the TCCs (tax credit certificates), the government has responded to that concern. Now it is more of laying down rules and procedures. We will fast-track the rules and procedures on TCC reimbursements,” he said. As an incentive to 2 investors, firms can claim refunds from the government for the advanced VAT payments made for imports of items used for goods they will export.

BSP expects more mergers among small banks A number of rural and cooperative bank merger and consolidations is expected to occur this year, a Bangko Sentral ng Pilipinas or BSP (central bank) official said. The central bank has been supporting mergers, acquisitions, and consolidations especially for small banks to create stronger institutions and also to weed out problematic lenders. The BSP Deputy Governor Nestor A. Espenilla Jr. said that creating a larger and stronger entity results in being able to hire the right people to run the business and also afford better equipment. The BSP in December revived its Strengthening Program for Cooperative Banks (SPCB) and renamed it as SPRB Plus.

PPP winner to comply with ‘due process’ The winning bidder of the P17.52-billion Mactan Cebu International Airport public-private partnership (PPP) deal is willing to comply with a possible court-ordered halt to the project even as it prepares a work schedule to deliver a new terminal in 3 years. The awarding of the project Friday night to the consortium of Bangalore- based GMR Infrastructure Ltd. and listed Filipino construction company Megawide Construction Corp., which offered the highest premium of P14.4 billion among 7 bidders during the auction last November, was welcomed by Cebu’s business community. It was however, greeted with disappointment by the consortium of Filinvest Development Corp. (FDC) and Changi Airports Mena Pte. Ltd. (Filinvest-Changi) that offered P13.99 billion and accused GMR-Megawide of conflict of interest besides questioning its financial capacity. FDC officials declined to further comment yesterday as Cebu businessmen warned that a legal tussle would hurt the country.

Foreign chambers urge government to address truck ban issue The Joint Foreign Chambers (JFC) and Semiconductor and Electronics Industries in the Philippines Inc. (SEIPI) are calling on the government to come up with measures to address the expected rise in trade volume in the ports of Manila in the next 2 months amid a truck ban imposed in the city’s streets. In a joint statement, the groups expressed its concern on the economic damage that will be brought by the existing truck ban when the trade volume picks up in May and June. “While we are supporting all efforts to better utilize the available capacities of the ports of Batangas and Subic, we know that there are no options but to use the ports of Manila more effectively,” the groups said. While some stakeholders have been holding discussions on possible solutions to the matter, the groups noted that it is only through an inclusive stakeholders’ roundtable that the magnitude and the complexity of the issue can be assessed and short, mid-term, and long-term solutions can be developed.

TRO on P10Bn Palawan project drives investor away An affiliate company of the Manila Ocean Park at Rizal Park backed out from its plan to put up a P10-billion resort hotel in Coron, Palawan after the National Commission on Indigenous Peoples (NCIP) issued a temporary restraining order when construction had already started. “This action of NCIP is detrimental to tourism development,” Lim Chee Yong, one of the directors of Correos Internacionale Inc. Lamented. NCIP is an agency under the Office of the President. In a separate but related case, where businessman Orlando Sacay accused the NCIP of what he termed as “legalized extortion,” NCIP regional director Roberto Almonte denied such allegations.

Corporate Briefs

Ayala Corp. is building up its energy portfolio as the Philippines’ oldest family business group seeks to accelerate spending on power and infrastructure, its chairman Jaime Augusto Zobel said…in energy, Mr. Zobel said the group wants to be part of the renewable sector and plans to build up to 1,000 MW but hinted that if there are opportunities, the conglomerate may boost its investments beyond the target…Manila Electric Co. (Meralco) is moving to provide electricity for the naphtha cracker plant of JG Summit Holdings, Inc. which is expected to be operational this year, a senior official of the power distribution utility said last week…a connection agreement between Meralco and JG Summit, Mr. Panlilio noted, was signed in August last year that will allow the former to supply power to the Gokongwei-led company.

Word‐for‐Word

Philippine Star columnist Jose Sison wrote:

From any point of view, President Aquino’s avowed fight against corruption is looking more and more like a propaganda move than a real honest to goodness attempt to clean and reform our government. It is merely all about creating the impression and projecting an image that he is indeed “honest” to the core. “Kung walang 3 corrupt, walang mahirap” is turning out to be just another empty slogan because the poor in our country are becoming poorer and increasing in number even when the economy is reportedly improving quite impressively. In fact the problem of poverty is now worsening and this is simply because corruption is increasing and becoming more rampant now if we follow this slogan. Kung maraming corrupt, maraming mahirap is the more appropriate slogan under this regime.

In fact, one of Aquino’s propagandists has practically admitted and realized what is happening in our country now. In a recent press interview, he blurted out that Aquino did not promise the people, a “rose garden” when he took over the reins of government. Apparently, this is another ploy to delude the people into believing that Aquino has not been remiss in complying with his promise. The people themselves just expected more than what he promised. So this spokesman is practically telling us this time around that it is not Aquino’s fault if corruption remains unabated because the real culprit here is the existing system where it is really hard to slay the dragon of corruption lurking in every nook and corner of the bureaucracy.

He may have a point there. Aquino did not actually promise the “rose garden” which is really quite an impossible dream. But actually the people did not expect that from Aquino. They only expected him to wage his fight against corruption without fear or favor and with fairness and justice to all concerned, friend or foe alike, party mates or non-party mates. But as it is now turning out, Aquino’s crusade is directed mainly against the political enemies of his administration. Such stance is a clear sign that his crusade is politically motivated and mainly designed to eliminate the opposition so that his party can remain in power. Many other Senators and Congressmen, past or present have availed of the pork barrel including Aquino himself. Why is there no report by the Chairwoman of Commission on Audit (COA) appointed by Aquino as to how they use their pork barrel?

Apparently many other anomalies are also prevalent in other Executive departments and agencies of the present administration that have not been fully reported or aired and/or have been relegated to the inside pages of the major papers to give way to news that have been overly sensationalized through the manipulation of the propagandists of this administration. Now and then we hear or read reports on the multi-billion pesos anomalous deals and transactions in the Department of Agriculture (DA), Department of Transportation and Communications (DOTC) and the Bureau of Customs (BOC). But so far, no concrete actions similar to that taken against the three Senators have been instituted against them.