Explainers - RAPPLER https://www.rappler.com RAPPLER | Philippine & World News | Investigative Journalism | Data | Civic Engagement | Public Interest Sat, 17 Jun 2023 07:51:01 +0800 en-US hourly 1 https://www.altis-dxp.com/?v=5.9.5 https://www.rappler.com/tachyon/2022/11/cropped-Piano-Small.png?fit=32%2C32 Explainers - RAPPLER https://www.rappler.com 32 32 EXPLAINER: Can Mayor Bullet Jalosjos concurrently work as TAPE executive? https://www.rappler.com/newsbreak/explainers/can-dapitan-city-mayor-bullet-jalosjos-concurrently-work-tape-executive/ https://www.rappler.com/newsbreak/explainers/can-dapitan-city-mayor-bullet-jalosjos-concurrently-work-tape-executive/#respond Fri, 09 Jun 2023 09:59:11 +0800 MANILA, Philippines – Can Seth Frederick “Bullet” Jalosjos work as Dapitan City mayor and Television and Productions Exponents Incorporated’s (TAPE Inc.) chief finance officer (CFO) at the same time?

This is a public interest issue after he became part of news headlines in the past few weeks following the resignation of ​​Vic Sotto, Tito Sotto, and Joey de Leon as the main hosts of Eat Bulaga!, a show run by TAPE Inc., the production company and blocktimer of the noontime variety show on leading broadcast network GMA.

TAPE Inc.’s president and CEO is Bullet’s half-brother, Romeo “Jon-jon” Jalosjos Jr., former Zamboanga del Norte 1st District congressman who is awaiting a poll protest ruling.

The Commission on Elections (Comelec) declared Jalosjos Jr. winner of the congressional race in Zamboanga del Norte’s 1st District in the May 2022 elections, but only after the poll body disqualified a nuisance candidate who had the same surname. An election protest filed by Roberto Uy Jr. remains pending before the Supreme Court, however, so Jalosjos Jr.’s name is not yet included in the roster of the House of Representatives.

The Jalosjos family owns 75% of TAPE, while 25% is owned by producer Antonio “Tony” Tuviera, the Dapitan mayor said. The chairman of TAPE Inc. is ex-convict and former Zamboanga del Norte congressman Romeo Jalosjos Sr. He was convicted in 1997 for raping an 11-year-old girl. In 2002, the Supreme Court upheld his conviction with finality and he was imprisoned for more than 10 years.

In an interview with Boy Abunda posted on April 19, Bullet Jalosjos said he has been part of TAPE’s board for around three to four years. 

What the Local Government Code says

Section 90 of the Local Government Code of 1991 says: “All governors, city and municipal mayors are prohibited from practicing their profession or engaging in any occupation other than the exercise of their functions as local chief executives.”

University of the Philippines College of Law lecturer Oliver Xavier Reyes distinguished between “practicing a profession” and “engaging in any occupation.”

The former means practicing an activity that is professionally licensed and does not cover general business activities, Reyes said.

Given this definition, Reyes said that Mayor Jalosjos would not be covered under “practicing a profession” unless he is a certified public accountant and works as CFO in that capacity.

The definition of “engaging in any occupation,” on the other hand, is not clear based on jurisprudence, Reyes said.

In a 2019 legal opinion, former Department of the Interior and Local Government undersecretary Marivel Sacendoncillo said that, as far as Section 90 of the LGC is concerned, there is nothing wrong with a local chief executive engaging in a business as long as he or she does not actively participate in its management and daily operations.

“The evil sought to be prevented by the prohibition under section 90 of the Local Government Code is the possibility that local chief executives cannot devote full-time and a faithful performance of their duties and functions as such because their time was eaten up by the exercise of their profession or engagement in an occupation and takes precious time away from the full exercise of their functions and duties as public servants,” Sacendoncillo’s opinion said.

Taking this opinion into account, Reyes said that holding a title like CFO is not by itself proof that Jalosjos is violating Section 9 of the LGC.

“If he is CFO but has staff that handles the day-to-day, and at the end of the day, he is just asked to approve certain decisions via SMS/e-mail, I would argue that such limited activity (despite his title) would not fall under the Section 90 ban,” he said.

Reyes said that the possible violation of the provision would depend on whether Jalosjos’ executive position requires him to be actively engaged in the day-to-day operations of TAPE.

“That is the evil that Section 90 seeks to prevent – that the other occupation/activity distracts him from performing his daily functions as mayor,” Reyes added.

When asked if the appearance of Jalosjos on television and his interviews with other media outlets in the past few weeks as an officer TAPE is an indication that his role as a CFO distracts him from performing his daily functions as local chief executive, Reyes said, “Maybe it is an indication.”

He, however, said that he cannot just conclude without knowing all the facts.

“At the very least, it is an indication that the last few weeks, he has been distracted from performing as mayor, and such behavior is contrary to what Section 90 intends to prohibit,” he said.

Rappler sought Mayor Bullet Jalosjos and DILG for comments, but they have yet to reply as of posting time.

Penalties

The penalties for violating Section 90 of the LGC are not clearly specified in the law.

The Ombudsman, however, would have jurisdiction under Section 19 of Republic Act 6770 (Ombudsman Act of 1989) in case an administrative complaint is filed against the mayor alleging that a public officer had acted “contrary to law.”

The penalties range from fine, suspension, or removal from public office, Reyes said.

Reyes, however, noted that this is a generic power with a generic penalty involving the violation of any law. – Rappler.com

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EXPLAINER: Why dangerous encounters by US and Chinese militaries look set to continue https://www.rappler.com/world/asia-pacific/explainer-why-dangerous-encounters-united-states-chinese-militaries-continue/ https://www.rappler.com/world/asia-pacific/explainer-why-dangerous-encounters-united-states-chinese-militaries-continue/#respond Tue, 06 Jun 2023 17:48:01 +0800 When a Chinese warship came within 150 yards of a US destroyer in the Taiwan Strait on Saturday, June 3, and forced it to slow down, it was the second time in a matter of days in which Chinese and US military personnel came close to a major incident.

Late last month a Chinese fighter jet flew in front of a US warplane over the South China Sea, drawing a rebuke from the United States.

After the warship encounter on Saturday, the White House accused China of “growing aggressiveness”. China has said that such US military activity in international waters is “deliberately provoking risk.”

Here is why these recent close encounters between the US and Chinese militaries may continue:

China pushing back

Under President Xi Jinping, China has embarked on what US officials say is one of the largest peacetime military buildups in history.

Beijing is using its growing military capability and economic clout to push back on decades-old US military dominance in Asia. China regards the United States as an outsider interfering in a region in which it sees itself as a force for peace and stability.

US Navy releases video of Chinese warship’s ‘unsafe interaction’ near Taiwan

US Navy releases video of Chinese warship’s ‘unsafe interaction’ near Taiwan

A particular source of tension are the “freedom of navigation” patrols in which the United States and its allies sail naval vessels through the Taiwan Strait and the South China Sea.

The United States says such patrols defend the right of all countries to sail in international waters.

China has complained about US vessels and aircraft in the Taiwan Strait and in the South China Sea close to islands it controls, claims, or constructed and turned into military installations. The People’s Liberation Army Navy (PLAN) typically trails the US. vessels.

Some analysts say Chinese military commanders have been encouraged to act more assertively against foreign military ships and planes.

“I think what we are seeing is likely a general encouragement, maybe even incentive scheme for (PLA) unit commanders to be aggressive when the opportunity presents, which is at the unit level encouraging more reckless behavior,” said Jennifer Parker, a defense expert at the Australian Strategic Policy Institute.

Other recent incidents in the South China Sea have seen a Chinese coast guard ship direct a “military-grade laser” at a Philippines vessel in February, and Vietnam last month demand Beijing remove survey vessels from its waters.

China said both incidents were lawful and normal.

Its defense ministry did not immediately have comment on the assertion it was encouraging more aggressive behavior.

This approach from the PLA increases the chances of a collision, which could spiral into armed conflict, says Derek Grossman, senior defense analyst at the RAND Corporation, a US think tank.

“In my view, this is the No. 1 scenario that leads the US and China to war, and less so Beijing seizing a feature in the disputed South China Sea or attacking Taiwan,” he said.

Chinese jet carried out ‘aggressive’ maneuver near US military plane, Pentagon says

Chinese jet carried out ‘aggressive’ maneuver near US military plane, Pentagon says
On a collision course?

Making the situation more dangerous are the starkly different views of the US and China about the source of the problem. The United States sees China as disrupting the status quo with its threats against Taiwan, the self-governed island that China claims as its own, and its territorial claims to the resource-rich South China Sea.

The answer from the US perspective is to continue asserting its right to sail and fly near China.

China’s ruling Communist Party sees those US actions as provocative and believes US pursuit of military dominance is the real cause of the dangers in the region, said Tong Zhao, a visiting scholar at Princeton University’s School of Public and International Affairs.

“Chinese officials generally don’t see China’s own behaviors contributing to risks,” he said.

“And therefore their logic is China can only reduce the risk by stepping up its military measures to confront the US’s aggressive behaviors, and to make the United States really feel concerned about incidents. And that’s when the United States would eventually take the necessary measures to reduce the risk.”

No communication

Add to this one other problem: the lack of reliable communication channels between the two militaries.

The US military has long pushed China for open lines of communication with the PLA – both at senior and lower levels – to mitigate the risk that accidents become military flare-ups.

China’s leaders, by contrast, have been slow to establish military contacts and quick to shut them down during periods of diplomatic tension, US officials say.

China suspended several high-level military dialogues with the Pentagon after former US House speaker Nancy Pelosi’s visit to Taiwan last summer and declined a US request for a phone call between the two countries’ defense chiefs after the downing of Chinese spy balloon in US airspace this year.

A senior US defense official, speaking on the condition of anonymity, told Reuters that since 2021 China had declined or not responded to more than a dozen requests to talk with the Pentagon and nearly ten working-level engagement requests.

China’s defense ministry did not immediately respond to Reuters’ requests for comment.

Analysts say that China is wary of military talks that could give the United States greater insight into PLA operations. Chinese leaders would also prefer to keep US-China discussions focused on trade and economic issues.

The dangers are not hypothetical, however.

In 2001 a US spy plane made an emergency landing on Hainan island after a collision with a Chinese fighter jet.

One Chinese pilot died and Beijing detained the 24-member US crew for 11 days, releasing them only after Washington sent a letter saying it was “very sorry.” – Rappler.com

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https://www.rappler.com/world/asia-pacific/explainer-why-dangerous-encounters-united-states-chinese-militaries-continue/feed/ 0 Chinese warship crosses the path of U.S. Navy destroyer USS Chung-Hoon in the Taiwan Strait CROSSING PATHS. A People's Republic of China warship, identified by the U.S. Indo-Pacific Command as PRC LY 132, crosses the path of US Navy destroyer USS Chung-Hoon as it was transiting the Taiwan Strait with the Royal Canadian Navy frigate HMCS Montreal on June 3, 2023, in a still image from video. jet-intercept-us-indo-pacific-command-twitter https://www.rappler.com/tachyon/2023/06/dagat-CHINA-USA-DEFENCE.jpg
EXPLAINER: How China got into the Philippines’ power grid https://www.rappler.com/business/explainer-ngcp-how-china-got-philippines-power-grid/ https://www.rappler.com/business/explainer-ngcp-how-china-got-philippines-power-grid/#respond Mon, 29 May 2023 20:00:00 +0800 MANILA, Philippines – Lawmakers have sounded the alarm over various issues hounding the National Grid Corporation of the Philippines (NGCP), which include alleged security and spying risks, as well as exorbitant dividends amid power outages in many areas in the country.

NGCP operates, maintains, and develops the country’s transmission network. Some politicians want to kick China out from the consortium that established NGCP by scrutinizing its franchise.

“I met with the President and I told him the possible security risk. Sinabi ko sa kanya mga recommendation ko, pumayag naman siya kung para sa ikakabuti ng bayan, so be it. In fact, I told him about sa pagkansela ng franchise ng NGCP if makitaan ng violations,” said Senate committee on energy chairman Raffy Tulfo.

(I told him my recommendations, and he agreed with them, if it would be for the good of the country. In fact, I told him about the cancellation of NGCP’s franchise if violations are found.)

History

Here’s a summary of how private entities and China got control of the Philippines’ transmission lines:

Pre-privatization era: Prior to the establishment of NGCP, the transmission system in the Philippines was operated and maintained by the National Transmission Corporation (TransCo), a government-owned and controlled corporation. TransCo was responsible for the transmission of electricity from power plants to distribution utilities nationwide.

Power Sector Reform Act: In 2001, the Philippine government enacted the Electric Power Industry Reform Act (EPIRA) or Republic Act No. 9136. EPIRA aimed to restructure the country’s power sector and promote competition, efficiency, and private sector participation. One of the significant provisions of EPIRA was the privatization of the transmission sector.

Privatization and creation of NGCP: In 2008, or during the term of former president Gloria Macapagal-Arroyo, the Philippine government initiated the privatization process for the transmission sector. 

TransCo issued a concession for the operation, maintenance, and expansion of the country’s power grid through a public bidding process. The Philippine Constitution limits foreign ownership to at most 40%.

The consortium composed of the State Grid Corporation of China (SGCC), Monte Oro Grid Resources Corporation, and Calaca High Power Corporation emerged as the winning bidder.

Monte Oro, which has a 30% stake, was a company formerly owned by Enrique Razon. It was eventually acquired by OneTaipan Holdings of Henry Sy Jr. Calaca High Power is a company owned by Robert Coyiuto Jr.

Their winning offer narrowly beat the sole rival bid from a consortium led by San Miguel Energy.

In January 2009, NGCP was officially established as a result of the bid by the consortium. SGCC holds a 40% stake in NGCP, while the remaining 60% is owned by the two Filipino companies. 

The concession deal was worth $3.95 billion, with a franchise good for 50 years. It was considered one of the biggest privatization efforts in the country.

SGCC’s overseas investments

Prior to NGCP, China’s SGCC had invested in other countries. 

SGCC has interests in the generation, distribution, and transmission of power in Brazil. It is also involved in the transmission, distribution, and sale of power in Portugal, Greece, and Australia. 

SGCC likewise has investments in Greece, Italy, Oman, Chile, and Hong Kong.

Financials

NGCP had to pay $3.95 billion for the concession rights, with 25% or an equivalent of P46 billion, to be paid immediately, with the remaining 75% payable in 40 semi-annual installments.

The balance, around P127 billion, was pegged at the exchange rate of P43.75. Since then, the peso has depreciated, translating to millions worth of savings for NGCP and its shareholders.

According to its financial statements, shareholders were able to recoup the initial investment in just four years of operations. By 2015, shareholders were already able to get double their initial investments.

In a Senate hearing, the grid operator said that the bulk – or 75% to 99% of its net income made in 2014, 2015, 2017, and 2019 – were paid out as dividends to shareholders.

In 2014, NGCP’s dividends exceeded net income with P24 billion handed to shareholders even though it only earned P22 billion.

Since 2009, NGCP has earned P286 billion. Of this amount, P208 billion had been distributed as dividends to shareholders.

Senator Sherwin Gatchalian questioned NGCP’s payouts, as there have been projects that had already been charged to consumers even if these have yet to be completed.

“This is really a super profitable business. We’re being cooked in our own lard,” Gatchalian said.

NGCP spokesperson Cynthia Alabanza said that dividends of a particular year are not taken from the earnings of the same or previous year.

“Our profits or dividends were taken from retained earnings which have accumulated over the years. So it’s not a one is to one…the numbers may or may not match,” Alabanza told the Senate panel.

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Senate panel threatens to revoke NGCP franchise over ‘violations’

Senate panel threatens to revoke NGCP franchise over ‘violations’
NGCP’s defense

Senators have questioned NGCP’s dividend policy amid the company’s struggle to complete some transmission projects.

NGCP explained that it had spent P300 billion for capital expenditures since 2009. It added that when government was in charge from 2003 to 2008, capex for transmission lines amounted to just P33 billion.

Nakapagtayo na kami ng 3,729 circuit kilometers of lines, at nadoble na namin ang transmission capacity sa buong Pilipinas,” she said.

(We were able to put up 3,729 circuit kilometers of [transmission] lines and we were able to double the transmission capacity in the entire Philippines.)

NGCP also blamed the COVID-19 pandemic and right-of-way issues for the project delays.

Security concerns

Before lawmakers questioned NGCP’s dividend payouts, experts had warned about China’s ability to control the Philippines’ power system through NGCP.

In 2019, Retired Supreme Court justice Antonio Carpio said that NGCP’s ownership structure is a “cause for concern” as it threatens national security.

“I think it should be a cause for concern especially if the technicians who are manning or maintaining the grid, the power lines, are Chinese. Because if the Chinese are the ones maintaining our national grid then it’s easy for them to shut it down. They can always inject malware in the software,” Carpio said.

An internal report for Philippine lawmakers obtained by CNN claimed that Chinese engineers had access to “key elements of the system, and that power could in theory be deactivated remotely on Beijing’s orders.” On NGCP’s website, SGCC is listed as NGCP’s “technical partner.”

“Our national security is completely compromised due to the control and proprietary access given by the local consortium partner to the Chinese government,” the report prepared by an unnamed government agency warned.

The report also said that NGCP technology has “increasingly” been switched to products of Huawei, which had been flagged by the Department of Foreign Affairs and banned by Japan, Taiwan, Australia, and the United States from building their fifth-generation or 5G networks.

The report claimed the Huawei products were “completely proprietary” and can only be operated by Chinese engineers.

In a statement sent to CNN, the Chinese foreign ministry gave assurances that Chinese companies conducting business in the Philippines were doing so “in accordance with laws and regulations to expand mutual benefits and win-win cooperation.”

“We hope certain individuals in the Philippines view such bilateral cooperation with an open mind as well as an objective and fair attitude. They shouldn’t over-worry or even fabricate things out of thin air,” they said.

Under the Aquino administration, former interior secretary Rafael Alunan said it was a “big problem” that China had a “pretty good hold of our vital infrastructure.” The presence of the Chinese in NGCP also alarmed former national security adviser Cesar Garcia.

In 2015, the Philippine government likewise did not renew the work visas of 18 Chinese experts employed by NGCP, owing to security concerns. 

“This (NGCP) is run by Filipinos, for Filipinos,” NGCP said.

Arroyo-China ties

The involvement of China in the privatization of the Philippines’ transmission network occurred at a time when Beijing and its elites had a strong relationship with Arroyo.

China getting a slice of NGCP happened after the controversial NBN-ZTE deal. In 2007, the Philippines’ national broadband network was supposed to get a $329.5-million upgrade through Chinese telecommunications company ZTE. The deal was eventually scrapped following irregularities like overpricing and rent-seeking.

It was also during Arroyo’s term when she pushed for the North Luzon Railway system funded by China. The $500-million loan from the Export-Import Bank of China for the project was eventually abandoned due to various pressures and controversies. – Rappler.com

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https://www.rappler.com/business/explainer-ngcp-how-china-got-philippines-power-grid/feed/ 0 Power Transmission Lines POWER TRANSMISSION. Power transmission towers and lines in Laguna and Rizal province. https://www.rappler.com/tachyon/2023/05/power-transmission-towers-and-lines-jire-carreon-05172023-004.jpg
EXPLAINER: What happened during the sugar crisis under the Marcos dictatorship? https://www.rappler.com/newsbreak/explainers/what-happened-during-sugar-crisis-under-marcos-dictatorship/ https://www.rappler.com/newsbreak/explainers/what-happened-during-sugar-crisis-under-marcos-dictatorship/#respond Sat, 27 May 2023 08:00:00 +0800 MANILA, Philippines – Talks of the possible revival of the Philippine Sugar Corporation (PhilSuCor) – a relic from the Martial Law years – triggered trauma and memory of the sugar crisis that occurred during the 70s and 80s.

President Ferdinand Marcos Jr. recently said he wanted to bring back PhilSuCor, a financial institution established in 1983, to help boost sugar production.

Despite this intention, the announcement harked back to darker times of the industry under his father and namesake Ferdinand E. Marcos.

What exactly happened during the sugar crisis of the ‘70s and ‘80s? Here’s what you need to know.

Monopoly under martial rule

Former president Marcos created a sugar monopoly during the Martial Law era. Sugar-planting families then were living a life of luxury, as sugar comprised more than 20% of Philippine exports during the 1950s and 1960s.

Two years after he declared Martial Law, Marcos created the Philippine Sugar Commission (Philsucom) through Presidential Decree No. 388 to stabilize the industry. It was designed to be “the single buying and selling agency of sugar” and “would determine the floor-ceiling price of sugar.”

On July 3, 1974, the Laurel-Langley Agreement expired. This meant that the Philippines lost its quota for sugar exports – and subsequently its access – to the US market.

At that time, the world-market price of sugar reached 67 cents per pound. It was still a thriving industry, and the country was heavily reliant on Negros Island that was contributing more than half of production.

1974 was a crucial year as the crop was then worth $737.7 million. It was “the best sugar year in history,” according to a New York Times report published in 1976.

That same year, Marcos assigned sugar trading functions to the Philippine Exchange Company (Philex) to rationalize sugar trade amid the rumors of cartels.

But Philsucom wasn’t activated until 1977, when Philex was abolished because of an outstanding debt of P1 billion. Philex was replaced by the National Sugar Trading Corporation (Nasutra), styled as the trading arm of Philsucom.

Meet the sugar czar

Roberto Benedicto, dubbed the sugar czar of the era, headed Philex, Philsucom, and Nasutra, effectively monopolizing the industry.

Benedicto was from Negros Occidental himself and was Marcos’ classmate and fraternity brother at the UP College of Law.

Aside from taking over the crucial institutions in the sugar industry, Benedicto dabbled in the media business and served as ambassador to Japan. He owned Banahaw Broadcasting Corporation which took over ABS-CBN. He was also chairman of the Philippine National Bank.

Under Benedicto’s leadership, Philex hoarded sugar supplies in warehouses betting that prices would further go up. But in 1975, the move would blow up in their faces, with the world market price of sugar plunging to 13 cents per pound.

Between 1975 and 1978, surplus sugar was stored in “swimming pools, schools, and even in churches,” according to Michael Billig’s 2003 book, Barons, Brokers, and Buyers: The Institutions and Cultures of Philippine Sugar.

In the time he was reigning sugar king, Benedicto was accused of smuggling, price manipulation, as well as buying cheap from local farmers and selling at a higher price to foreign buyers.

In the waning days of the dictatorship, Marcos established the PhilSuCor in 1983 in an attempt to finance the development of sugar infrastructure. It was also Benedicto who headed the corporation.

But these institutions, and the czar at the helm, could not handle the collapse of the industry.

Nasutra closed down in 1984. According to an essay published in 1988 in Kasarinlan, a journal of the Third World Studies Center of the University of the Philippines-Diliman, Nasutra “closed its accounts without paying P487 million to planters or millers for CY 1984/85.”

Two years later, Philsucom was also dismantled.

Sunset in Sugarland

A depressed world sugar market, and the administration’s monopoly, plunged Negros into widespread poverty and unemployment.

Most beaten down in this crisis were sugar workers, their families, and most especially their children. A scourge of hunger struck the province. Negros was known in the 80s as a “social volcano” or as “Asia’s Ethiopia.” Children were dying and newborns suffered from health complications that were irreversible.

Oppressive conditions made the ground fertile for recruitment by the the New People’s Army. Long enduring the inequalities of the hacienda system, compounded by unrest and political violence, many took to the hills.

The landed elite, on the other hand, would say that things have changed in Negros. Back then, it looked like the sun was setting on the glory days of sugar barons.

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[Vantage Point] The transformation of sugar barons

[Vantage Point] The transformation of sugar barons

But the status quo remained. Because of land reform after the EDSA Revolution, hacienderos either lost some land or, in many cases, converted these to commercial areas to thwart the threat of distribution.

The Philippines now has a lower sugar yield compared to other major producing countries, and “almost all sugar produced in the country is consumed locally,” a report from international organization Food and Fertilizer Technology Center said.

Low productivity was also attributed to landowners’ neglect in investing on equipment upgrade and better farming techniques.

Three decades later, sugar barons would end up supporting the 2016 vice presidential bid of the late Marcos’ son, Ferdinand Jr.

Now there is another sugar crisis under the current Marcos administration. What will come out of solutions resurrected from another crisis of the past? – Rappler.com

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https://www.rappler.com/newsbreak/explainers/what-happened-during-sugar-crisis-under-marcos-dictatorship/feed/ 0 tl-sugar-barons https://www.rappler.com/tachyon/2023/05/philsucor-may-26-2023.jpg
[EXPLAINER] Turkey election 2023: What’s at stake in the runoff? https://www.rappler.com/world/middle-east/things-at-stake-turkey-election-2023-runoff/ https://www.rappler.com/world/middle-east/things-at-stake-turkey-election-2023-runoff/#respond Fri, 26 May 2023 16:22:12 +0800 Turkish President Tayyip Erdogan aims to extend his rule into a third decade in an election on Sunday, May 28, with the momentum seen in his favor in the runoff vote after a first round showed him ahead of his challenger, Kemal Kilicdaroglu.

Already buoyed by a parliamentary majority won by his Islamist-rooted AK Party and its allies on May 14, Erdogan got another boost on Monday thanks to the endorsement of a nationalist politician who came third in the first round.

The election will decide not only who leads Turkey but also how it is governed, where its economy is headed, and the shape of its foreign policy. Kilicdaroglu, who received the endorsement of another far-right leader, is backed by a six-party alliance including his Republican People’s Party (CHP).

Modern Turkey’s longest-serving leader, Erdogan has championed religious piety and low interest rates at home while asserting Turkish influence in the region and loosening the NATO member’s ties with the West.

The election takes place three months after earthquakes in southeast Turkey killed more than 50,000 people.

What’s at stake for Turkey…

The most powerful leader since Mustafa Kemal Ataturk founded the modern Turkish republic a century ago, Erdogan and his AK Party have shifted Turkey away from Ataturk’s secular blueprint.

Erdogan has also centralized power around an executive presidency, based in a 1,000-room palace on the edge of Ankara, which sets policy on Turkey’s economic, security, domestic and international affairs.

Erdogan’s critics say his government has muzzled dissent, eroded rights, and brought the judicial system under its sway, a charge denied by officials who say it has protected citizens in the face of unique security threats including a 2016 coup attempt.

Economists say Erdogan’s calls for low rates sent inflation soaring to a 24-year high of 85% last year, and the lira slumping to one tenth of its value against the dollar over the last decade.

…And the rest of the world

Under Erdogan, Turkey has flexed military power in the Middle East and beyond, launching four incursions into Syria, waging an offensive against Kurdish militants inside Iraq ,and sending military support to Libya and Azerbaijan.

Turkey also saw a series of diplomatic clashes with regional powers Saudi Arabia, Egypt, the United Arab Emirates, and Israel, as well as a stand-off with Greece and Cyprus over eastern Mediterranean maritime boundaries, until it changed tack two years ago and sought rapprochement with some of its rivals.

Erdogan’s purchase of Russian air defenses triggered US arms industry sanctions against Ankara, while his closeness to Russian President Vladimir Putin led critics to question Turkey’s commitment to the NATO Western defense alliance. Ankara’s objections to NATO membership applications from Sweden and Finland have also raised tensions.

However, Turkey also brokered a deal for Ukrainian wheat exports, underlining the potential role Erdogan has staked in efforts to end the Ukraine war. It is not clear that a successor would enjoy the same profile he has created on the world stage, a point he has made in the election campaign.

What is the opposition promising

Two main opposition parties, the secularist CHP and center-right nationalist IYI Party, have allied themselves with four smaller parties under a platform that would reverse many of Erdogan’s signature policies.

They have pledged to restore independence to the central bank and reverse Erdogan’s unorthodox economic policies. They would also dismantle his executive presidency in favour of the previous parliamentary system, and send back Syrian refugees.

They also aim to improve relations with Western allies including the United States, and to return Turkey to the F-35 fighter jet program, from which it was blocked after buying Russian missile defenses.

Analysts believe the policies promised by the opposition could spur foreign investment.

Erdogan supported failed efforts to topple Syrian president Bashar al-Assad, while hosting at least 3.6 million Syrian refugees who have become increasingly unwelcome at a time of economic hardship in Turkey.

Seeking a runoff boost from nationalist voters, Kilicdaroglu has in the last two weeks sharpened his anti-immigrant tone and promised to repatriate migrants.

Just how close is the race

Kilicdaroglu got 44.9% in the first round compared to 49.5% for Erdogan, reflecting solid support despite a deep cost-of-living crisis and polls which had shown Kilicdaroglu in the lead. Pollsters later pointed to an unexpected surge in nationalist support at the ballot box to explain the result.

Erdogan has said a vote for him will ensure stability after his alliance secured a parliamentary majority.

Turkey’s four-decade conflict with the militant Kurdistan Workers Party (PKK) has factored into the campaigning, along with the role of the mainstream Kurdish political parties.

While not part of the opposition alliance, the pro-Kurdish Peoples’ Democratic Party (HDP) fiercely opposes Erdogan after a crackdown on its members in recent years and has endorsed Kilicdaroglu.

Erdogan’s attacks against Kilicdaroglu have included accusations, without evidence, of him winning support from the PKK, which has waged an insurgency since the 1980s in which more than 40,000 people have been killed. Kilicdaroglu has denied the accusations. – Rappler.com

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EXPLAINER: How generous military pension is pushing Philippines to fiscal collapse https://www.rappler.com/business/how-generous-military-personnel-pension-pushing-philippines-fiscal-collapse/ https://www.rappler.com/business/how-generous-military-personnel-pension-pushing-philippines-fiscal-collapse/#respond Tue, 16 May 2023 19:18:49 +0800 MANILA, Philippines – A plan to fix the Philippines’ unsustainable military pension system is supposedly pushing enlisted soldiers to retire early, leaving President Ferdinand Marcos Jr. to spend his political capital to address both pressing concerns.

The average monthly pension of a retired military uniformed personnel is around P40,000 a month, which is 8.8 times more than an average pensioner of the Social Security System (SSS) is receiving. It is also 2.9 times higher than the average pension under the Government Service Insurance System (GSIS). 

Under the SSS and GSIS, and basically most pension models, people contribute a part of their income for the fund. Military personnel do not contribute a single peso in the current system. In effect, taxpayers contribute for their pension funds through appropriations in the annual budget.

On top of this, military uniformed personnel are automatically granted one rank higher upon retirement. For instance, if an army colonel retires, the pension is equivalent to the pay of a brigadier general.

Their monthly pension is automatically indexed to the salary of personnel in active service. Military pensioners can receive their pension after being in service for 20 years with no minimum pensionable age.

Almost three decades since this system was implemented, the cracks it has caused in the government’s coffers are widening every year and will lead to a fiscal collapse if not patched up.

How and when did this system start?

The pension system was implemented during the final months of 1998, or the presidency of the late Fidel V. Ramos, who himself fought during the Korean War. He did so after the previous military program called the Retirement and Separation Benefit System (RSBS) effectively collapsed.

The RSBS, an initiative of late dictator Ferdinand E. Marcos, required uniformed personnel to contribute and gave the fund a steady cash flow. It was, however, grossly mismanaged, and its managers invested in risky assets like golf courses. The Asian financial crisis of 1997 further caused the bleeding.

Soldiers, who at the time were dealing with insurgencies and terrorist groups, were not compensated well for their efforts. At the end of their active-duty career, the RSBS only gave them back the total amount they contributed without interest.

While uniformed personnel’s pensions greatly improved under the new system where pension funds are appropriated from the annual budget, the financial impact is felt almost three decades later.

Finance Secretary Benjamin Diokno once called it the “most generous pension system for the military in the entire world.”

“While the common practice is to base the pension benefits on the highest salary (usually the last) of the retiree, under the law approved by Mr. Ramos, the pension is based on the salaries of the incumbent. Absurd but true,” Diokno said in a column published way back 2013. His convictions on the issue stand to this day, as he pushes for pension reform under Marcos.

Former president Rodrigo Duterte further strained government finances by doubling the take-home pay of soldiers and police officers. Duterte also recruited more uniformed personnel during his six years in power.

Fiscal impact

The Department of Finance (DOF) has raised the alarm over the urgent need for military pension reform, as pension spending already outpaced spending on maintenance and other operating expenses (MOOE) and capital outlays (CO) of the military.

In 2022, pension spending reached P164 billion, while MOOE and CO stood at P125 billion. 

“For 2021 and 2022, military uniformed personnel pension was 82% and 80% of the respective annual personnel services expenditures,” the DOF said.

The DOF estimated that pension expenditures could reach P290 billion by 2028 or the end of Marcos’ term. Worse, it could hit a whopping P1.5 trillion by 2040.

DOF figures also revealed that the current share of unfunded military pension liabilities is already at P9.6 trillion, 53% of the Philippines’ gross domestic product.

The government is effectively borrowing for pension liabilities, and issuing treasury bills is sensitive to higher interest rates. 

The Bureau of the Treasury warned that the current system could increase public debt by 25% by 2030.

A 2019 actuarial study by the GSIS estimated that the government would have to spend P848.39 billion annually for the next 20 years to finance the current pension system.

If we do not address the huge and rising unfunded liabilities of the current military pension system now, securing sufficient resources to provide for the benefits of future pensioners and their dependents will be extremely challenging.

Finance secretary benjamin diokno
Military morale

Military pension reform has been thumbed down many times. 

It did not prosper at all during the administration of former president Gloria Macapagal-Arroyo, who then faced multiple threats of being unseated and needed military backing.

The late Benigno Aquino III once acknowledged the ballooning military pension and its impact on the budget. He mentioned the issue several times in his State of the Nation Addresses but effectively passed the buck to Congress.

There were also talks of military pension reform during the Duterte administration, but those proposals also fell through due to lobbying from former military personnel who were pensioners themselves.

Duterte’s finance chief, Carlos Dominguez III, once said they would push for creating a unit at the GSIS to manage a pension fund for military personnel. Those plans did not prosper.

Diokno, Marcos’ finance secretary and Duterte’s former budget chief, said that Marcos is more than willing to spend his political capital to push for reforms.

Marcos, whose father was ousted through people power that saw the participation of military factions, would have to carefully explain to soldiers the financial impact of their above-average pension.

An estimated 70% to 80% of the military’s enlisted soldiers may opt to retire early if the current plan to fix the pension system pushes through, Department of National Defense officer-in-charge Carlito Galvez Jr. told the Senate on Monday, May 15. Galvez added that the plan has “affected morale.”

Must Watch

Rappler Talk: Can military pension reform happen under Marcos?

Rappler Talk: Can military pension reform happen under Marcos?
Middle ground

Galvez said they are seeking a “middle ground” in which new entrants are only covered by the pension reform.

“There’s no problem if the new system will be given to the new entrants. They all unanimously agree,” Galvez said. Otherwise, the military might be deluged with thousands of soldiers opting to retire early, causing bigger organizational problems.

“If this is still financially impossible, we are very amenable and open to modifications in the system so long as these are fair and equitable to the military and the MUP (military and uniformed personnel) and also this is based on the financial soundness and scientific actuarial science.”

Galvez cited one issue that has spawned “adverse reactions” from enlisted men: that the lump sum they are going to receive will be reduced “from 36 months to 18 months.”

“While we fully support the enactment of legislative measures to address the current issues hounding the pension system, the [Department of National Defense] and the [Armed Forces of the Philippines] respectfully appeal that morale and welfare be given due weight in these deliberations, considering that the mere notion of modernizing our pension system already created some sort of apprehension,” Galvez said.

So far, the DOF is proposing that all active personnel and new entrants begin contributions to the pension system. The percentage of the mandatory contribution will be staggered over uniformed personnel’s years of service – from 5% in their first three years to eventually 9% of their salary.

It also seeks to remove the automatic indexation of pension to the salary of active personnel of similar ranks. 

The DOF is also proposing for uniformed personnel to get their pension at the age of 57.

Diokno is confident that Marcos will be able to pull it off, citing his landslide win in the 2022 elections. –Rappler.com

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EXPLAINER: How court decided on De Lima’s latest acquittal https://www.rappler.com/newsbreak/explainers/how-court-decided-leila-de-lima-latest-acquittal/ https://www.rappler.com/newsbreak/explainers/how-court-decided-leila-de-lima-latest-acquittal/#respond Sun, 14 May 2023 08:50:00 +0800 MANILA, Philippines – Muntinlupa City Regional Trial Court (RTC) Branch 204 acquitted detained former senator Leila de Lima in one of her two remaining drug cases on Friday, May 12.

The former lawmaker’s latest court victory is her second acquittal after another Muntinlupa court cleared De Lima in one of her charges in February 2021. This means De Lima is now facing only one charge – the one pending before Muntinlupa City RTC Branch 256. (READ: TIMELINE: Leila de Lima in detention)

The opposition leader also remains in detention because her petition for bail in her pending case has yet to be resolved by the court.

On Monday, Presiding Judge Abraham Joseph Alcantara cleared De Lima of her charge in relation to alleged violation of section 5 of Republic Act No. 9165 or the Comprehensive Dangerous Drugs Act of 2002. Ronnie Dayan, De Lima’s former aide, was also cleared for the same case.

Below are the reasons why Judge Alcantara ruled to acquit the opposition leader.

The decision

In its 39-page decision, the court noted that the sole issue in the case was whether De Lima was criminally and civilly liable in the charge against her. Judge Alcantara pointed out that De Lima was acquitted on grounds of reasonable doubt.

By definition, proof beyond reasonable doubt is a requirement that must be met to find an accused guilty of a crime. In De Lima’s case, this meant the prosecution failed to provide evidence that will successfully pin De Lima in her drug charge.

Witnesses’ testimony

In the charge against De Lima, the former lawmaker was accused of allegedly receiving money from the illegal drug trade in Bilibid amounting to P5 million on November 24, 2012, and then another P5 million on December 15 of the same year.

  • To establish the allegations, the court said the prosecutors presented two witnesses: former Bureau of Corrections acting chief Rafael Ragos and intelligence agent Jovencio Ablen. Both of them testified that they allegedly delivered money to both De Lima and Dayan.
  • But, the court noted that only Ragos had personal knowledge of the money’s supposed source.
  • “According to Ragos’ original testimony, the money was placed in his quarters bedroom. Thereafter, he received a phone call from Hans Tan, a high- profile inmate involved in drugs, who told him to deliver the money to accused Dayan and De Lima,” the court said.
Illegal drug trade exists in Bilibid but…

According to the court, the prosecution “successfully established” that rampant illegal drug trade exists in the New Bilibid Prison.

  • The court noted that based on the provisions of RA No. 9165 and available jurisprudence or court decisions, “illegal drug trade encompasses all transactions involving the illegal trafficking of dangerous drugs.” Muntinlupa City RTC Branch 204 said the said violation may be committed through: a) illegal trafficking using electronic devices; b) acting as broker in transactions involving illegal trafficking of dangerous drugs.
  • According to the decision, the prosecutors were able to prove the “complex network of transactions” of illegal drug trade in the national penitentiary run by high-profile persons deprived of liberty (PDL). The court added that the prosecution was also able to provide witnesses who testified on how these high-profile PDLs brokered drug transactions inside Bilibid.
  • Lastly, the court also took note of the presentation of the testimony of a financial investigator from the Anti-Money Laundering Council who examined suspicious accounts. In the said bank accounts, millions of pesos would be deposited from various parts of the country.
  • Both De Lima and Dayan were accused as “conspirators” in the said illegal drug trade. This means the prosecution “must further establish conspiracy with the direct participants in the illegal drug trade,” the court said.
  • However, the court said the conspiracy was properly noted in the amended charge against De Lima, but not in the positive and conclusive evidence.
Ragos’ testimony cast reasonable doubt on accusations

The court said Ragos’ recantation cast reasonable doubt on his testimony’s credibility.

  • On April 30, 2022, Ragos retracted his accusations against De Lima. In a sworn affidavit, he said that “there is no truth whatsoever” to his claims regarding the delivery of money to De Lima and Dayan. 
  • In its ruling, the court said recantations “are viewed with suspicion and reservation.” It added that retracted testimonies are unreliable because of the probability that they will be repudiated later. However, the court said retractions can be considered and upheld when special circumstances and the retraction raise doubts on the testimony given.
  • The court added that another rare exception in accepting recantations is when there is no evidence that can sustain the judgment of conviction, aside from the testimony of a witness or witnesses.
  • “Under the circumstances of this case, the testimony of witness Ragos is necessary to sustain any possible conviction. Without his testimony, the crucial link to establish conspiracy is shrouded with reasonable doubt,” the court explained.
  • With this, the court said the retraction created reasonable doubt that warranted De Lima’s acquittal. Specifically, Ragos’ recantation created reasonable doubt about De Lima’s participation as alleged conspirator in the drug trade.
  • The court added: “As a final note, while Courts have always supported the efforts of law enforcement agencies to combat the proliferation of illegal drugs in Philippine society, vigilance in eradicating illegal drugs cannot come at the expense of disregarding the rule of law, evidence and established jurisprudence on the matter.” – Rappler.com
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EXPLAINER: What’s behind the revived Landbank-DBP merger? https://www.rappler.com/business/reasons-behind-revived-landbank-development-bank-philippines-merger/ https://www.rappler.com/business/reasons-behind-revived-landbank-development-bank-philippines-merger/#respond Thu, 11 May 2023 15:14:00 +0800 MANILA, Philippines – The Land Bank of the Philippines (Landbank) and Development Bank of the Philippines (DBP) could be merged into one “superbank” as early as November of this year. 

The Department of Finance (DOF) has insisted that a unified state bank would make a “bigger and stronger bank to better serve the country’s development needs.” The DBP, on the other hand, has been strongly opposed to the merger – its very existence under threat, with Landbank designated as the surviving entity.

But remember: this proposal is not new. The previous attempt to merge the two banks was already approved by the late president Benigno Aquino III, but the Duterte administration scrapped the plan mere months later. This latest push, however, now has the support of President Ferdinand Marcos Jr., according to Finance Secretary Benjamin Diokno.

So, what are the reasons behind the resurrected proposal?

Why merge the banks?

The DOF, under Diokno, is perhaps the biggest supporter of the move.

“The union of the two banks will make it the largest bank in the Philippines. A bigger and stronger government bank will best serve the country’s development objectives. Its consolidated resources will also allow it to withstand shocks arising from financial and economic stress,” said the finance secretary during a media dialogue on May 5.

To some, Diokno’s support comes as a surprise, given that he was among the Cabinet members under Duterte who had canceled the previous merger attempt. But he now lists several reasons why consolidating the two state banks would be beneficial:

  1. Wider branch network
  2. Increased efficiency
  3. More funds to loan out
  4. One state bank for government transactions

Let’s go through all of these. 

The most immediately visible change under the merger would be the consolidation of the two bank’s branch networks. With Landbank being the surviving entity of the merger, DBP branches will be absorbed and converted into Landbank branches. 

The merged state bank would end up with 627 branches nationwide, with an ambitious plan to set up at least one Landbank touchpoint – either a branch, ATM, agent banking partner, cash deposit machine, or point of sale – in every municipality by August 2024.

Though each bank has its own separate charter – with Landbank envisioned to cater mostly to the agricultural sector and the DBP to industries – the DOF said that they share the mandate of providing “banking services for agricultural and industrial enterprise and to spur countryside development.” 

“Upon their merger, there will be two lending windows catering to the distinct mandates of the combining entities: one window to address the needs of the enterprises in the agricultural value chain and a second window for infrastructure and non-agricultural clients,” the DOF said in an attempt to allay DBP’s fears that the merger would dilute the focus of the banks on their respective target market.

Combining the two, according to the DOF, will tidy up redundancies and inefficiencies in operations. They can save costs by sharing a single information-technology system and treasury team, and having leaner back and middle offices.

The merger is projected to save at least P5.3 billion a year in operating costs by virtue of economies of scale. The DOF added that the multi-billion peso figure is a conservative estimate that doesn’t include gains from the sale of the DBP’s head office, its property in Bonifacio Global City, branches, and licenses.

A consolidated state bank could also widen the headroom for development project loans, given the money the bank could save. The DOF estimates that an additional P80.3 billion in loans per year could be given out, which could pave the way for some of the government’s priority projects.

Diokno also highlighted that having a single government bank can simplify transactions with government-affiliated organizations, other banks, and development partners like the World Bank, Asian Development Bank, and Japan International Cooperation Agency.

“The merged bank will be in the best position to serve as the sole authorized government depository bank for all National Government agencies, Government Owned or Controlled Corporations, government instrumentalities, and local government units,” he said. “A key strategic benefit of having a single government bank is that it simplifies transactions with counterparty banks, multilateral development banks, and regional development banks.”

All in all, the effect of the merger would be to create the largest bank in the Philippines by asset size and deposit size, surpassing BDO Unibank in both categories. It would have more than P4.1 trillion in assets and P3.5 trillion in deposit base.

‘Too big to fail, too big to save’

But bigger is not always better – at least, according to the DBP.

“The complete expression is ‘too big to fail, too big to save.’ That’s a fundamental principle in public finance,” said DBP Chairman Dante Tinga in a press conference on Tuesday, May 9.

In a position paper opposing the merger, the DBP also noted that combining the two banks to form the largest in the country could concentrate risks and increase its vulnerability to “financial market bubbles and cyberattacks.”

Tinga also cited the recent collapse of Credit Suisse as an example of why size may not always imply stability. It was the second largest bank in Switzerland before its collapse, forcing the Swiss government to intervene and ask the country’s largest bank – UBS – to buy it out and “protect the economy” from the potential fallout. 

“If that happens in the Philippines – the superbank, the monolithic bank that comes out of the merger, it collapses – what happens to the economy? As it is, maganda na ‘yung dalawang bangko magpatuloy (it’s already good to continue with two banks). They just need to be retooled,” Tinga said.

Diokno, on the contrary, viewed the collapse of Credit Suisse as further proof that government banks should be consolidated.

“Given what’s happening now globally – you have banks which are now being closed. For example, Credit Suisse. Who would have thought that Credit Suisse would go under? There is really a strong need for solidifying the government bank,” Diokno said back in March when he confirmed plans to merge the state banks.

But this wasn’t the only area where Diokno and Tinga disagreed. The DBP chairman also disputed Diokno’s claims that the move would widen the network of the state bank, instead saying that the combined branches would result in a network of the same size and reach.

He also went further, warning about the danger of “putting all the eggs in one basket.”

“While the merged bank may become the largest bank in the country in terms of assets and deposit size, it will still suffer from capital shortage, bad loans, and lazy banking,” the DBP said in its position paper.

“Without a plan of integration, there is only consolidation of assets and LBP as the surviving entity will just have the same strengths and weaknesses pre-merger; the two banks will be truly complementary of each other’s strengths and weaknesses if they are to remain separate and independent,” it said.

How does this impact the banking industry?

The DBP also cautioned that the proposed superbank could violate the Philippine Competition Act and National Competition Policy. It warned that the merger “poses a grave threat to private capital” since the consolidated bank could participate in commercial banking activities while enjoying the advantage of a strong stream of funds, given that it would be set to receive all deposits from the government as the state’s official depository bank.

Meanwhile, BDO president and chief executive officer Nestor Tan does not expect the impending merger to greatly affect the private banking sector, even if Landbank would surpass them to become the biggest bank.

“I think Landbank and DBP merger won’t have much impact on privately-owned institutions because we compete in different markets. Of course, we do overlap in some areas, but it’s not an overlap in most markets,” he said during a media briefing ahead of the Sy-led bank’s annual stockholders’ meeting on April 19.

Union Bank of the Philippines (UnionBank), the country’s ninth largest bank in total assets and similar in size to the DBP, also does not expect the merger to directly affect them.

“Landbank and DBP have a different mandate and target market. We don’t directly compete with them in certain sectors. We believe that as a government bank, they have a role to play in the industry,” the Aboitiz-led bank told Rappler in an emailed statement.

UnionBank president and chief executive officer Edwin Bautista pointed out that even with the merger, the resulting superbank would still be small compared to other regional banks, such as Singapore’s DBS Bank, which has more than $550 billion in total assets. 

“The problem is, even if you put the two of them together, they would still be small compared to the giant regional banks. ‘Yung mga DBS, malaki ‘yun (When you’re talking about DBS, that’s big). It will be big relative to [local banks], but by regional standards, it will still not be a big bank,” Bautista said on the sidelines of the AI Summit PH 2023 on Wednesday, May 10. 

Besides this, Bautista raised the problem that combining the banks could further distract them from fulfilling their mandates, echoing the concerns of the DBP.

“The mandate was to take on big infra projects. The other one, the mandate is agriculture. Now, the problem is, over the last few years, neither of them have fulfilled the mandate. I’m just quoting the articles of the newspapers,” Bautista said. “The problem when you have that is, you may lose focus. Who is going to worry about agriculture? Who is going to worry about the infrastructure?”

[ANALYSIS] Should LBP and DBP be merged into a superbank?

[ANALYSIS] Should LBP and DBP be merged into a superbank?
Job losses, shuttered branches

Whether a merged superbank would result in a stronger government financial institution or not, one thing remains true either way: plenty of positions and bank branches will be slashed.

“Most of the workforce will be losing [their] jobs if the merger pushes through,” said the chairman. “We don’t have the numbers, but the good secretary mentioned specific numbers. He said three-fourths of the workforce will become jobless.”

By Tinga’s estimate, this could mean that around 3,000 employees of DBP would lose their jobs. Part of that is because the majority of the DBP’s 147 current branches will be shut down following the merger. 

The DOF estimates that only 22 DBP branches will be retained and added to Landbank’s existing 605 branches. Why? All other DBP branches are located in local government units that already have a Landbank branch present.

With the livelihood of thousands of employees on the line, the Land Bank of the Philippines Employees Association and DBP Employees’ Union have both raised concerns regarding the merger, according to a Senate resolution filed by Senator Risa Hontiveros. Landbank management was said to have violated the terms of its collective negotiations agreements by failing to consult union leaders before pushing for the merger.

“As the two banks merge operations, it is possible that certain jobs will be eliminated or reduced in size. It will negatively affect employee morale and job satisfaction. Changes in leadership, organizational structure, and company culture can create anxiety. Employees should not carry the burden of job uncertainty and financial hardship that will result from this merger,” Hontiveros said in an April press release.

Meanwhile, Diokno confirmed that jobs will be cut following the merger, but that a “fair package of benefits” will be offered to these employees.

“On the retrenchments resulting from the merger, we are determined to work closely with the two banks to ensure that personnel decisions are consistent with our objective to enhance the bank’s efficiency and effectiveness. It is important that those who will be separated receive a fair package of benefits in recognition of their valuable service to the government,” he said.

Is the merger already approved?

The Governance Commission for Government-Owned or -Controlled Corporations (GCG) said that the proposed merger does not need a law to proceed. Instead, the GCG argued it held the power to merge Government-Owned or -Controlled Corporations (GOCCs) that have charters, such as these two state banks. 

To support this statement, the GCG pointed to a Supreme Court ruling in “Lagman vs Executive Secretary,” and cited Section 5(a) of the GOCC Governance Act of 2011; Section 17, ArticleVII of the 1987 Constitution, and Section 2, Chapter 2, Book III of the Administrative Code of 1987.

Should this be the case, then that would mean President Marcos could implement the merger through an executive order (EO), bypassing Congress and its lengthy legislative process. Diokno said that the EO could come out within May, paving the way for the merger to be finalized by November.

“Following the approval of the GCG, we now await the issuance of an Executive Order sometime this month. There will be a joint crafting and approval of the Operational Integration Plan in September, followed by the approval of the Monetary Board in October, before the final legal merger between Landbank and DBP by November,” he said.

However, DBP fiercely disputed this legal study by the GCG, calling it a “self-serving declaration.”

“Contrary to the GCG’s legal study, there is nothing in the decision in Lagman vs. Executive Secretary which supports its conclusion that the President has the power to merge GOCCs even in the absence of enabling legislation,” the DBP said in its position paper. 

Tinga insisted that the power of the GCG was only recommendatory to the President. Even if the President approved of the recommendation, the merger would still require an enabling law because the two state-owned banks were created by acts of Congress.

“There is nothing in the GCG law itself which supports the proposition that the president can effect the merger even without a law. Nothing,” the DBP chief said during the press conference.

He also added that Marcos has “not yet given a pro or con on the issue to the DBP.”  Diokno, on the other hand, disclosed that the President has already approved the merger.

Interestingly enough, Marcos was previously against the earlier attempt to merge the state banks, back when he was still a senator vying for the position of vice president.

Sa pautang we also have to think very hard about this Landbank and DBP merger kasi kapag nag-merge na iyan, it will be a commercial bank. Wala na tayong agricultural bank so wala na tayong bangko na talagang naka-tugon sa pangangailangan ng farmers,” he said in a press release on March 2016.

(When it comes to loans, we also have to think very hard about this Landbank and DBP merger because when you merge that, it will be a commercial bank. We’ll have no more agricultural bank, so we won’t have a bank that really focuses on the needs of farmers.)

[OPINION] Landbank-DBP merger: Bigger not necessarily better

[OPINION] Landbank-DBP merger: Bigger not necessarily better

– Rappler.com

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EXPLAINER: Candidates a year after losing the 2022 presidential race https://www.rappler.com/newsbreak/explainers/updates-where-are-they-now-losing-2022-presidential-candidates/ https://www.rappler.com/newsbreak/explainers/updates-where-are-they-now-losing-2022-presidential-candidates/#respond Tue, 09 May 2023 13:46:59 +0800 MANILA, Philippines – The 2022 Philippine presidential election has been regarded as the most significant election in the country’s recent history. It was the first time an election took place amid the COVID-19 pandemic that caused the Philippine economy to fall into recession.

The 2022 presidential election witnessed the participation of the highest number of candidates – 10 – since 1992. It also saw the most significant voter turnout since 1998, with approximately 56 million voters exercising their right to vote. 

Political polarization marked the 2022 Philippine presidential campaign. Online and offline, candidates sought to appeal to their respective bases and beyond, while their supporters faced off on social media.

In the end, Ferdinand Marcos Jr., the son and namesake of the late dictator, emerged as the winner with 31.6 million votes, setting a new record for the highest number of votes received by a candidate in a Philippine presidential election.

Rappler takes a look at the post-election activities of some of the candidates who lost in the 2022 presidential race, a year after the elections.

Leni Robredo

After placing second in the election, former vice president Leni Robredo took a two-week vacation to the US with her daughters Aika, Tricia, and Jillian, before returning to wrap up her work at the Office of the Vice President.

On July 1, 2022, a day after she stepped down as vice president, Robredo buckled down to work as she launched the Angat Buhay Foundation, a nongovernment organization with the objective of becoming the largest volunteer network in the Philippines. Robredo serves as the NGO’s chairperson, continuing the programs, with a focus on food security, education, disaster relief, and community engagement.

This was inspired by the “pink revolution” that marked her campaign, a fulfillment of her promise to her supporters that the spirit of volunteerism during the campaign would survive the 2022 elections.

She also launched the Museo ng Pag-Asa, a public museum showcasing the support she received during her presidential campaign.

The former vice president also had speaking engagements in and outside the country. She was named a Hauser Leader of the Harvard Kennedy School’s Center for Public Leadership, where she talked about Angat Buhay and accountable leadership. She was also one of the speakers at the Democracy Forum hosted by former US president Barack Obama in November 2022. 

On April 30, Robredo resumed her podcast with the episode, “Kamustahan: One Year Later.” She has also continued her YouTube channel, which was initially created following her decision to run for vice president in October 2015.

Robredo marked the first anniversary of her 2022 people’s campaign with the launch of Tayo ang Liwanag, a coffee table book that, according to her office, “features photos, anecdotes, and insights that inspired volunteerism and bayanihan that continue to this day through volunteers, partners, and supporters of Angat Buhay NGO.”

Manny Pacquiao

After finishing third in the presidential election, former senator Manny Pacquiao took some time off for a family vacation in Europe.

He later returned to the ring and won his exhibition bout against South Korean YouTuber DK Yoo in December 2022.  He also reached an agreement with Rizin Fighting Federation to fight a Japanese opponent in 2023.

Outside the ring, Pacquiao guested on popular Korean variety shows Knowing Bros. and Running Man in Seoul in 2022, and again, in Running Man after their fan meet in the Philippines in 2023. Pacquiao is no stranger to Korean variety shows – he appeared on Infinite Challenge in 2017.

The past year saw Pacquiao victorious in another battle. In September 2022, the Court of Tax Appeals affirmed its decision to cancel Pacquiao’s ₱2.229-billion deficiency taxes. The court later also junked the Bureau of Internal Revenue’s motion for reconsideration.

Pacquiao, however, was not as fortunate in another case. A jury in California ruled that he violated his contract with Paradigm Sports Management (PSM) and ordered him pay $5.1 million (over P282 million) in damages. 

The former senator is also known for his charitable acts. He recently covered the medical expenses of 22-year-old fighter Kenneth Egano who suffered a brain hemorrhage and collapsed during a boxing match sponsored by Pacquiao.

Isko Moreno

After his unsuccessful bid in the 2022 presidential race, former Manila mayor Isko “Moreno” Domagoso took on a new moniker, “Citizen Isko.” A month later, he experienced the joy of becoming a grandfather, as his 20-year-old son Joaquin welcomed a child with his girlfriend.

In September 2022, defeated Manila mayoral candidate Alexander Lopez filed administrative and criminal complaints against Moreno and Manila Mayor Honey Lacuna over the implementation of the city’s no-contact apprehension program.

Moreno also again made headlines in his previous industry. He landed the role of the late senator Benigno “Ninoy” Aquino Jr. in Darryl Yap’s film Martyr or Murderer, where he starred alongside actor Jerome Ponce, who portrayed a younger Ninoy.

Aside from his return to the silver screen, Moreno also debuted as a vlogger. He launched his online show, Iskovery Night, in January 2023.

Panfilo ‘Ping’ Lacson

While former senator Panfilo “Ping” Lacson retreated largely from the public eye and focused on his family and Cavite farm, he still remains active on social media. He weighs in on a range of issues, especially on governance, security, peace and order, and the struggles of ordinary folk, as well as on topics of the day, including American Idol.

In March, Lacson’s post on the proposed menstrual leave bill drew flak from many netizens, who also pointed out the ill timing of Lacson’s statements, which coincided with Women’s Month. The veteran senator had cited what he believed would be the negative economic consequences of such a measure, such as layoffs and the shutdown of businesses as many employers could not afford it.

In an interview with Manila Bulletin in April, Lacson said that since the end of his term at the Senate, he was hired as an “independent director of a large company.”

“Now, I’m busy with a newly-formed corporation to propagate sorghum, a good substitute for corn to produce feeds because it’s rich in protein, and it’s cheaper,” he said in that interview.

Leody de Guzman

Socialist presidential candidate and labor leader Leody de Guzman resumed his work with labor groups in their fight for workers’ rights and welfare.

He is also involved in humanitarian efforts and speaking engagements in universities and colleges. He uses social media to crowdsource aid during natural disasters and calamities, leveraging his large following to support affected communities.

De Guzman was again visible during the Labor Day protests, urging the government not to risk the funds intended for the benefit of both private and public sector workers, including those who earn minimum wage.  

The one-year appointment ban on losing candidates will be lifted on Wednesday, May 10. Marcos himself had said he was eyeing some losing 2022 candidates for Cabinet positions – there are, to date, several vacancies left – but it remains to be seen whether he has any of his former rivals in mind. – Rappler.com

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https://www.rappler.com/newsbreak/explainers/updates-where-are-they-now-losing-2022-presidential-candidates/feed/ 0 https://www.rappler.com/tachyon/2022/04/2nd-comelec-presidential-debate-april-3-2022-012.jpg
DOCUMENTARY: Bakit araw-araw brownout sa Occidental Mindoro? https://www.rappler.com/video/watch-documentary-explainer-reason-daily-brownouts-occidental-mindoro/ https://www.rappler.com/video/watch-documentary-explainer-reason-daily-brownouts-occidental-mindoro/#respond Wed, 26 Apr 2023 11:52:29 +0800 Sa Occidental Mindoro, apat na oras lang may kuryente sa kahit anong bahagi ng probinsya.

Ito ay deka-dekada nang sakit sa ulo ng mga residente, pero mas lalong lumala ang sitwasyon sa mga nakalipas na buwan.

Bumiyahe ng San Jose at Mamburao ang Rappler reporter na si Dwight de Leon at ang kanyang cameraman na si Ulysis Pontanares para alamin ang ugat ng krisis, at ang epekto nito sa maraming sektor.

Apektado ng brownout ang mga kabahayan, eskwelahan, at mga establisyemento na nalulugi dahil sa gastos sa krudo para lamang paandarin ang kanilang generator sets.

Ang hiling ng mga demonstrador doon – sana ay makialam na si Pangulong Ferdinand Marcos Jr., na minsang nangampanya sa probinsya noong 2022. Sa bibig niya mismo nanggaling, kailangang ayusin ang problema sa kuryente roon.

Panoorin ang dokumentaryo ng Rappler dito. – Rappler.com

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https://www.rappler.com/video/watch-documentary-explainer-reason-daily-brownouts-occidental-mindoro/feed/ 0 DOCUMENTARY: Bakit araw-araw brownout sa Occidental Mindoro? Nananawagan ang mga residente ng Occidental Mindoro kay Pangulong Marcos na aksyunan na ang malawakang brownout sa probinsya. Apat na oras na lang kasi kada araw may kuryente. Panoorin ang dokumentaryo ng Rappler patungkol sa perwisyong dulot ng krisis. consumers,energy industry,Occidental Mindoro,power interruptions in the Philippines https://www.rappler.com/tachyon/2023/04/mindoro-brownout-april-21-2023.jpg