TAMBULI Weekly Newsletter The Official e-Newsletter of the Federation of Philippine Industries

Volume 15 Issue No. 44 11 November 2011 ______

Countdown: 13 days to the 1st PHILIPPINE MANUFACTURERS AND PRODUCERS SUMMIT

It is all systems go for the First (1 st ) Philippine Manufacturers and Producers Summit 2011 on Thursday, November 24, 2011 at the Intercontinental , Makati City. As earlier reported the summit will gather policy makers, economists, academe, private and labor sectors to raise public awareness of the strategic importance of the manufacturing and producing sectors in creating inclusive and sustainable economic growth for the Philippines.

Speakers include Department of Trade and Industry Secretary and Usec. Adrian Cristobal, Dr. Norio Usui from Asian Development Bank (ADB) and Dr. Josef Yap of the Philippine Institute of Developmental Studies (PIDS) who will be sharing their research and insights on impact of manufacturing and producing to sustaining long term economic growth for the Philippines. Local and foreign manufacturers and producers in the Philippines will also share their success and challenges in the domestic and export markets. Industry Representatives will share their recommendations and vision for the Manufacturing and Production Sectors of the Philippines.

The Summit also includes the FPI Sustainable Development awarding ceremony which will be spearheaded by Mr. Ernesto Ordoñez, Chairman of the FPI Sustainable Development Committee.

Mr. Jesus Lim Arranza, Chairman of the FPI, said, “In organizing this summit, we want to generate discussion on advancing Philippines’ manufacturing sector and seek to create strategic collaboration between the government and private sectors. The focus is on enabling manufacturing and production to realize its full economic multiplier potential and drive jobs and growth and prosperity for Filipinos.

Chairman of the organizing committee is FPI Director Roberto F. Batungbacal who is also the Country Manager of Dow Chemical Pacific, Ltd.

The Registration fee for FPI members is PhP1,650.00 per head and/or PhP15,000.00 per table (seating 10 pax). For non-members the Registration fee is PhP2,000.00 per head and/or PhP20,000.00 per table (seating 10 pax) to cover for the food (morning snack, lunch and afternoon snacks) and event materials.

For reservations, which will be on a first come first serve basis, please contact the FPI Secretariat at Tel. Nos. 722-3409, 584-9642 & 727-4359 i Fax No. 722-9737.

DOJ FILING OF FIRST EVER “CARTEL CASE” HAILED

The head of the largest federation of manufacturers in the country welcomed the decision of the Department of Justice (DOJ) to indict the officers of Liquefied Petroleum Gas Marketers Association (LPGMA). 2

Federation of Philippine Industries (FPI) Chairman Jesus Arranza said that this move clearly provides a firm signal to the business community and foreign investors that the Aquino Administration is really bent on making the country a level-playing field for all investors and businessmen.

In a 10-page resolution released last Friday, November 4, 2011, DOJ Prosecutor General Claro Arellano approved the filing of a criminal case against LPGMA officers for violation of the anti-cartel provisions of the revised penal code and republic act no. 8479 otherwise known as the downstream oil deregulation act.

Those to be charged are Arnel Ty, Danilo Chua, Alison Sy, Rene Rosell, Ronnie Sevillana, Mar Dave Tang, Virginia Cid, Bonifacio Eleria and Antonio de Rosario, all officers of LPGMA.

Arranza said that “along with President Benigno Aquino III’s order creating the Competition Authority under DOJ’s supervision, the elevation in court of probably the first ever cartel case will give local and foreign investors the confidence that the Philippine government wants all businessmen here to behave properly for the benefit of the Filipino consumers.”

Whatever the outcome of the case, Philippine jurisprudence on cartel-like behaviors will be enriched, Arranza adds.

Arranza stressed that the 3 big oil players in the country though members of FPI, did not have a hand nor influenced him in filing his “cartel” complaint with the DOJ. He said that LPGMA is clearly making up this story to divert attention and to picture his group as the underdog with the hope of getting sympathy from consumers.

“This diversionary tactic is a sign of weakness on the LPGMA part. The case at hand involves the violation of specific criminal laws so it is imperative that they should confine their arguments on their legal defenses and not to that and not resort to character attacks,” Arranza said.

Arranza said that he has through the years established a track record of fighting business behavior that is inimical to the interest of the consumers, the business community and the economy as a whole. Thus, the filing of the cartel case against LPGMA is not an isolated case, he added.

To mention some of his advocacies, Arranza cited the case he filed with the Supreme Court that resulted in the partial nullification of executive order no. 97-A issued by then President Fidel Ramos allowing individuals to buy US$ 200 worth of goods from duty free shops in Subic and Clark. He said that the court agreed with his group’s argument that only Congress can pass laws granting tax exemptions.

Arranza said that he also has been in the forefront of the fight against smuggling by appearing in various congressional investigations involving smuggling and corrupt practices of some erring personnel of the Bureau of Customs (BOC) and even in personally joining actual raids on and confiscations of smuggled goods conducted by various government agencies.

FPI Chairman Arranza added that among others he even filed a case with the Ombudsman against former Customs Commissioner Napoleon Morales and a business group on an illegal data-encoding system that was then implemented at the BOC.

He further pointed out the fact that LPGMA was clearly not a marginalized group as putting up a refilling plant involves millions in investments and this is the reason why he questioned the accreditation

3 by the Commission on Election of LPGMA as a party-list group. Arranza said the case is now pending with the Supreme Court.

On the contrary, Arranza pointed out that LPGMA President Arnel Ty has a record of questionable business behavior. He said that last December 2011, the Supreme Court affirmed the filing by the National Bureau of Investigation of a complaint against Ty for the illegal refilling of branded LPG tanks. He also cited records of Energy Department’s task force on LPG enumerating various criminal cases filed against Ty and unscrupulous LPG refillers that are pending.

TWG meeting on Water Resource Statistics

The Department of Environment and Natural Resources has invited the Federation of Philippine Industries to a technical working group meeting on Water Resource Statistics (TWG-WRS) on Friday, November 18, 2011, 9:30 a.m. at the 2 nd Floor,, Special Concerns Office Conference Room, DENR Main Building.

The provisional agenda are the Finalization of the 2 nd Batch Water Resource Terms and Definitions and Discussion of Its Appropriate Indicators, Status of the Memorandum of Agreement (MOA) on the Provision on Water Resource Data, Discussion on the Proposed of TWG-WRS Work Plan for 2012 and Other Matters.

Unleashing Micro Small and Medium Enterprises (MSMEs) as an Engine of Inclusive Growth

The Asian Institute of Management has invited the Federation of Philippine Industries (FPI) to a workshop entitled Unleashing MSMEs as an Engine of Inclusive Growth: Governance, Financing and Evidence from Rigorous Data to be held at JV Del Rosario Room, 4/F AIM Conference Center, Makati City on November 15, 2011 from 9:00 am to 4:00 pm.

The workshop will discuss important issues confronted by micro, small and medium enterprises that constrain these enterprises from growing and hence giving their full potential as engines of inclusive growth. Some of these issues include better governance, financing requirements, firm resiliency to shocks, corruption and pro-poor job creation of MSMEs. The workshop will also discuss the importance of using rigorous empirical data for policy making and the challenges of collecting firm-based data.

For inquiries, you may contact Mr. Steve Almeda, through Tel. No. 892-4011 or email him at [email protected]

IMPAKABSAT 2011 Regional Trade Fair

The Department of Trade and lndustry - Cordillera Administrative Region is inviting the Federation to visit IMPAKABSAT '11 Regional Trade Fair on November 12-20, 2011 at Carousel Court, Festival Mall, Alabang, Muntinlupa City.

The IMPAKABSAT, now on its 16th staging, is a regional event which promotes and showcases the craftsmanship of the region. lt is a celebration of native ingenuity and skill that are unique only in this part of the country. IMPAKABSAT will feature our regions' top-of-the-line products manufactured by our regions' seventy five (75) top SME entrepreneurs. Products to be showcased and sold for the 9-day

4 duration include furniture and furnishings, processed food, silvercraft, loomwoven items as well as other OTOP products.

Opening Program is on November 12, 2011 at 10:00 o'clock in the morning. Should you have queries, please feel free to contact Dorie N. Ballola at Tel No. 074-442- 61 85.

LEGISLATIVE COMMITTEE HEARINGS

Senate:

Monday, November 14 Time & Venue Agenda

Blue Ribbon joint with Banks, 9:00 A.M. P.S. Res. No. 553 - Inquiring on the alleged Financial Institutions & Session Hall 2/F Left Wing, anomalous large scale financial transactions Currencies Senate involving behest loans and/or similar sweetheart deals done under a cloak of confidentiality during the previous administrations of government banks and financial institutions

Tuesday, November 15 Time & Venue Agenda

Urban Planning, Housing & 10:00 A.M. Consultative Meeting re: S. Nos. 66, 136 & 751 – Resettlement joint with Civil Sen. A.B. Padilla Room 2/F Creating the Department of Housing and Urban Service & Government Right Wing, Senate Development Reorganization and Finance

Thursday, November 17 Time & Venue Agenda

Cooperatives and the Joint 1:00 P.M. Cooperative Tax Forum Congressional Oversight Royal Mandaya Hotel J. Palma Committee on Cooperatives Gil St., Davao City CDA Charter Consultation

House of Representatives:

MONDAY, 14-NOVEMBER-2011

TRADE & INDUSTRY (Subcommittee on Consumer Protection & Trade Regulation) Venue: Conf. Rm. 6 RVM Bldg. Time: 01:30 PM

Agenda/Resource Person: Technical Working Group meeting on HBs 448, 613, 616; 518; 770; 1225, 1229, 1469; 2726, 3833, 4404; 3120; 5059; 1153 & HR 27 – Amending various provisions of RA 7394, otherwise known as the Consumer Act of the Philippines (Reps. Juan Edgardo Angara, Marcelino Teodoro, Minority Leader Edcel Lagman, Reps. Diosdado Macapagal Arroyo, Rufus Rodriguez, Ma. Amelita Calimbas-Villarosa, Tomas Apacible and Luis Villafuerte)

TUESDAY, 15-NOVEMBER-2011

WAYS & MEANS Venue: R. R. Andaya Hall 2/F SW Bldg.

5 Time: 09:30 AM

Agenda/Resource Person: Briefing by the Bureau of Internal Revenue (BIR) on the following: Revenue Memorandum Circular No. 40-2011 dated September 05, 2011 that revised BIR forms 1700 and 1701 requiring the disclosure of additional detailed information, such as income subjected to final tax, income exempt from tax and exclusions from gross income under Sec. 32 (B) of the Tax Code Single Window System – BIR inter-agency information linkage in relation to Revenue Memorandum Circular No. 40-2011

WEDNESDAY, 16-NOVEMBER-2011

APPROPRIATIONS Venue: R. R. Andaya Hall 2/F SW Bldg. Time: 09:30 AM

Substitute Bill to HBs 2585, 1888 & 509 – Preventing and controlling pollution from the ships, providing penalties therefor (Reps. Maria Evita Arago, Ben Evardone and Juan Edgardo Angara)

Substitute Bill to HBs 384, 1157, 1231 & 2216 – Creating the Department of Housing, Planning and Urban Development, defining its powers and functions, rationalizing the government housing system (Reps. Gloria Macapagal Arroyo, Rodolfo Biazon, Winston ‘Winnie’ Castelo and Rodolfo Valencia)

Substitute Bill to HBs 85, 167, 364, 383, 511, 1444, 2279, 3376 & 4162 – Defining cybercrime, providing for the prevention, investigation, suppression and the imposition of penalties therefor (Reps. Susan Yap, Eric Singson Jr., Marcelino Teodoro, Gloria Macapagal-Arroyo, Juan Edgardo Angara, Carmelo Lazatin, Rufus Rodriguez and Mariano Michael Velarde Jr.)

HB 2944 – Providing for the delineation of the specific forest limits of the public domain (Rep. Rufus Rodriguez)

Substitute Bill to HBs 56, 186 & 1892 – Creating the Philippine Trade Representative Office, appropriating funds therefor (Deputy Speaker Lorenzo Tañada III, Reps. Pryde Henry Teves and Karlo Alexei Nograles)

Substitute Bill to HBs 212, 1164, 4400, 4610 & 4687 – Instituting reforms in real property valuation and assessment in the Philippines, reorganizing the Bureau of Local Government Finance and appropriating funds therefor (Majority Leader Neptali Gonzales II, Reps. Rodolfo Biazon, Mel Senen Sarmiento, Diosdado Macapagal Arroyo and Rufus Rodriguez)

HR 1791 – Urging the House of Representatives to allocate an initial P5 billion to the Department of Agriculture for the creation of the small farmers and fisherfolks quick reaction fund as part of the National Budget for CY 2012 and thereafter (Rep. Agapito Guanlao)

Committee Report on HR 591 – Urging the Department of Budget and Management to immediately release the long overdue balance of the allocated budget for the local housing program as mandated under RA 7835, otherwise known as the Comprehensive and Integrated Shelter Financing Act of 1994, which still amounts to P2.06 billion (Rep. Rodolfo Valencia)

SUFFRAGE & ELECTORAL REFORMS Venue: Conf. Rms. 14&15 RVM Bldg. Time: 09:30 AM Agenda/Resource Person: HBs 3127, 3190, 4091, 4157, 4278, 4464 & 4732 – Amending RA 7941, otherwise known as the Party-List System Act (Reps. Christopher Co, Alfredo ‘Albee’ Benitez, Erico Aumentado, Walden Bello, Rufus Rodriguez, Neri Colmenares and Juliet Cortuna)

HR 217 – Inquiry into the implementation of the provisions of RA 7941 (Rep. Luis Villafuerte)

LEGISLATIVE FRANCHISES Venue: Conf. Rms. 7&8 RVM Bldg. Time: 01:30 PM

Agenda/Resource Person: HB 5336 – Amending Secs. 10, 11, 22 and 24 of RA 776, otherwise known as the Civil Aeronautics Board Act of the Philippines, as amended (Rep. Giorgidi Aggabao)

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Notice:

Please be informed that the news articles/write-ups of FPI President George S. Chua and FPI Sustainable Development Committee Chairman Ernesto Ordoñez published and circulated in newspapers may likewise be accessed thru the FPI website: www.fpi.ph .

Prepared by the FPI Secretariat

Unit 701 Atlanta Centre Condominium, #31 Annapolis St., Greenhills, San Juan City Tel. Nos. 722-3409, 584-9642 & 727-4359 i Fax No. 722-9737 E-mail: i [email protected] i [email protected] [email protected] [email protected] iWebsite: www.fpi.ph