The Daily News
WE TELL IT LIKE IT IS
IT WE TELL IT LIKE IT IS
IS
Phil. Copyright 2002
Vol. 14 No. 229
December 6, 2013
WEATHER FORECAST
METRO MANILA 23°C to 30°C
Moderate Northeast
Manila Bay: Moderate
The Nation

Sen. Drilon eyes truce between 2 senators

Creation of relief, rehab agency

CTA orders Pacman, Kim to shut up

Sandigan orders arrest of ex-DA chief
The Economy and Business
COUNTRY
Curre ncy in Curre ncy
Pe so
in US$1
1 Pe so in
Curre ncy
43.7800
1.0000
0.0228
Japan (yen)
0.4283
0.0098
2.3348
UK (pound)
71.7335
1.6385
0.0139
5.6468
0.1290
0.1771
0.1391
US (dollar)
Hong Kong (dollar)
7.1869
0.1642
Canada (dollar)
40.9733
0.9359
0.0244
Deficit narrows to P11.2Bn in October
Australia (dollar)
39.4984
0.9022
0.0253

PH had lowest FDI inflow in SEA in 2012
New Zealand (dollar)
EMU (euro)
35.8089
0.8179
59.5145
1.3594
0.0279
0.0168

Completion of NLEX-SLEX connector road
before 2016

Inflation hits 9-month high in November

Corporate Briefs

Aboitiz Power speeds up restoration of
electricity in Cebu and Leyte

Robinsons Land Corp. launches 35th
shopping mall

Globe Telecom Inc. has borrowed P7Bn
from Landbank

Pasay City government stressed agreement
with SM Land Inc. for Manila Bay
reclamation project is valid and above
board

Manila Electric Co. and Electricity
Generating Public Company Ltd. to
proceed with expansion of Quezon plant
China (yuan)
PESO–DOLLAR RATE
30 trading days to December 5, 2013
41.25
41.75
42.25
42.75
43.25
43.75
44.25
44.75
PSE COMPOSITE INDEX
30 trading days to December 5, 2013
7300
7100
6900
6700
6500
6300
6100
5900
5700
Open: P 43.900
Close: P 43.845
High: P 43.820
Low: P 43.900
W.A.: P 43.848
Vol.: 589.30 Mn
Open: 6,106.77
High: 6,139.90
Low: 6,025.08
Close: 6,030.95
Index: 6,030.95
Vol.: 0.862 Bn
Val.: 6.339 Bn
Disclaimer: The articles in this Daily News have been culled from various media
1 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. Drilon eyes truce between 2 senators
Senate President Franklin Drilon offered to broker a truce yesterday between Minority Leader Juan Ponce Enrile
and Sen. Miriam Defensor-Santiago following their bitter exchange of accusations. Sen. Drilon said that with the
2 senior senators having vented their disdain for each other in privilege speeches, it was time for them to bury
the hatchet and end hostilities as Christmas approaches. Sen. Jinggoy Estrada earlier offered to reconcile the 2
fighting senators in a bid to save the Senate’s reputation from further damage. Sen. Estrada said that he and
his father, former President and now Manila Mayor Joseph Estrada would work together to bring their 2 friends
and allies to the same side again. But despite these peace initiatives, Sen. Santiago proceeded to ask the
Department of Justice (DOJ) to conduct an investigation into the alleged “crimes” of Sen. Enrile in the past.
Creation of relief, rehab agency
The Senate is eyeing the creation of an agency similar to the Federal Emergency Management Agency (FEMA)
of the U.S. government to deal with relief and rehabilitation efforts in the aftermath of calamities, Senate
President Franklin Drilon said yesterday. The sentaor said the disaster agency was among the issues he
discussed with U.S. Ambassador Philip Goldberg, who paid him a courtesy call at the Senate. Sen. Drilon noted
that under the present setup, an ad hoc council – the National Disaster Risk Reduction and Management Council
- handles relief and rehabilitation efforts. Sen. Drilon stressed the need to improve the government's disaster
management following the onslaught of Typhoon Yolanda.
CTA orders Pacman, Kim to shut up
The Court of Tax Appeals (CTA) has ordered the Bureau of Internal Revenue (BIR) not to disclose details of the
tax case of boxing icon and Sarangani Representative Manny Pacquiao to the public. The CTA has reset to next
year the hearing on the case filed by the congressman questioning the freeze order on his assets by the BIR.
This came after both parties agreed to talk first before the CTA’s 1st division starts hearing the case. The CTA
told both parties to inform the court of the outcome of their talks before the hearing on Jan. 16. The BIR was
supposed to present its evidence yesterday but it was ordered deferred by the court. The Sarangani
congressman and his wife, Sarangani vice governor Jinkee Pacquiao earlier filed a petition for review
questioning the garnishment order of the BIR over his assets in a bid to collect the supposedly unpaid taxes.
The BIR assessed the Pacquiao couple of having deficiency income tax for the years 2008 and 2009 in the total
amount of P2,229,020,905.50 (inclusive of 50% surcharge and 20% yearly interest). The alleged tax deficiency
has increased to P3.2 billion due to additional penalties imposed by the BIR.
Sandigan orders arrest of ex-DA chief
Former agriculture secretary Luis Lorenzo Jr. and 3 others were ordered arrested yesterday for their alleged
role in the anomalous implementation of a swine program in 2004. The Sandiganbayan’s 1st Division issued the
arrest warrants after finding enough reason to proceed with the graft case that the Office of the Ombudsman
had filed last July. Two of Lorenzo’s co-accused, former Quedan and Rural Credit Guarantee Corp. (Quedancor)
board members Wilfredo Domo-Ong and Nellie Ilas, each posted P30,000 bail shortly after learning about the
arrest warrants. Also indicted were Quedancor president Nelson Buenaflor; board members and representatives
Romeo Lanciola and Jesus Simon. The Office of the Ombudsman said: “Input supplies amounting to
P47,465,614 were not delivered to the borrowers as of year-end 2005 despite the advance payment therefor by
the Quedancor to the Input Suppliers.” The 2004 swine program was a credit project for swine raisers to help
them breed more swine. They were supposed to be given swine, food, equipment and technical assistance.
The Economy & Business
Inflation hits 9-month high in November
Inflation rose to a 9-month high in November because of faster increases in prices of food, housing and utilities
brought about by Super Typhoon Yolanda. In a report, the National Statistics Office (NSO) said inflation rose to
3.3% in November from 2.9% in October. The November figure was the fastest since February’s 3.4% and was
up from 2.8% a year ago. Despite the uptick, the November inflation was still at the low-end of the Bangko
Sentral ng Pilipinas’ (BSP) 3.3% to 4.1% target range. Also, the average for the 11-month period stood at
2.8%, still below the BSP’s full-year target range. Without food or oil prices, core inflation increased to 2.8% in
November from 2.5% in October.
Deficit narrows to P11.2Bn in October
The country incurred a slightly narrower budget deficit in October on the back of a flat growth in revenues and
government spending. The Department of Finance (DOF) said the budget deficit stood at P11.2 billion in
October, narrower than the P11.664 billion in the same month last year. Revenues were flat at P134.3 billion
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from last year’s level, while expenditures were also flat at P145.984 billion from P145.5 billion. In the first 10
months of the year, the budget deficit stood at P112.5 billion, narrower than last year’s P115.607 billion and
well within the P152.7 billion ceiling for the period. Revenues in the 10-month period went up to P1.4 trillion
from P1.253 trillion a year ago, while government spending picked up to P1.513 trillion from P1.369 trillion. The
Bureau of Internal Revenue (BIR) contributed P993.5 billion, while the Bureau of Customs turned over P252.5
billion to the government during the 10-month period. The Bureau of Treasury, meanwhile, remitted P71.7
billion, and other offices turned over P83.1 billion. Interest payments amounted to P20.5 billion in October,
bringing the 10-month total to P278.6 billion.
PH had lowest FDI inflow in SEA in 2012
The Philippines had the lowest inflow of foreign direct investments (FDIs) in the East Asia and Pacific region last
year, a unit of the World Bank said. In 2012, the Philippines drew in $2.8 billion worth of FDI, the lowest in the
region that includes China, Indonesia, Malaysia, Thailand and Vietnam. Based on the World Investment and
Political Risk (WIPR) 2013 report published by the Multilateral Investment Guarantee Agency (MIGA), the
Philippines is the least attractive destination for foreign investments during the survey period from 2004 to
2012. MIGA is a member of the World Bank Group, with the promotion of FDI into developing countries to help
support economic growth and reduce poverty as its main mission. Last year, total inflows in the region
amounted to $313.7 billion. The highest during the review period was in 2011 when it hit a record $339.9
billion. Phl has China led the region with inflows of $253.5 billion in 2012, slightly easing from $280.1 billion in
2011.
Completion of NLEX-SLEX connector road before 2016
President Benigno Aquino III expects that the government-approved project connecting the North and South
Luzon Expressways, aside from major airports and light rail systems on the pipeline, will be finished before he
steps down in June 2016. Among the “concrete manifestations” of the legacy that he wants to leave behind
before the end of his 6-year term are the major renovation of the Ninoy Aquino International Airport I – dubbed
1 of the world’s worst airport – among many others. Major airports, among them tourism hubs Panglao (island
in quake-ravaged Bohol province) and Mactan (international airport in Cebu province), are also expected to be
“substantially finished.”
Corporate Briefs
Aboitiz Power, the power generation arm of the Aboitiz Group, through units Visayan Electric Co. (Veco),
Subic Enerzone and Davao Light and Power, is stepping up efforts to restore electricity in Northern Cebu and in
the 4th district of Leyte…however, Aboitiz Power said it was still uncertain when power could be restored in the
entire city of Ormoc due to the extent of damage caused by Super Typhoon Yolanda, said Raul Lucero, Aboitiz
Power’s vice-president for engineering…Robinsons Land Corp. (RLC) is launching its 35th shopping mall in the
country in line with its goal of beefing up its presence in the northern side of the National Capital Region…the
real estate arm of tycoon John Gokongwei Jr. said it will start commercial operations of Robinsons Place
Malolos, its 2nd mall in Bulacan, next week…the new shopping mall forms part of RLC’s plan to put up more
shopping centers in key cities north of Metro Manila…Globe Telecom Inc. has borrowed P7 billion from Land
Bank of the Philippines (Landbank) to fund its capital expenditures for next year, a company official informed
the Philippine Stock Exchange (PSE) yesterday…the company has inked a 7-year term loan with Landbank to
finance its general and corporate requirements for 2014…Globe, a joint venture between conglomerate Ayala
Corp. and Singapore Telecommunications Ltd., has so far borrowed $235 million from several foreign and local
banks to finance its capital expenditures and restructure the company’s debt profile…the Pasay City government
reiterated yesterday that the joint venture agreement with SM Land Inc. of retail magnate Henry Sy for the
300-hectare Manila Bay reclamation project is valid and above board…Severona Madrona, legal officer of the
Pasay City government, said the agreement signed by Mayor Antonino Calixto and SM Land last Nov. 15 is valid
and binding…subsidiaries of Manila Electric Co. (Meralco) and Thailand-based Electricity Generating Public
Company Ltd. (EGCO) plan to proceed next year with the 460-megawatt (MW) expansion of the existing
Quezon coal-fired power plant, a senior official told reporters yesterday…Meralco PowerGen Corp. (MGen) and
New Growth B.V. will bid out the engineering, procurement and construction (EPC) contract for the power plant
in the 1st quarter, said MGen senior Vice-President Angelito U. Lantin on the sidelines of the Energy Investment
Forum 2013 at Hotel InterContinental Manila in Makati City.
Word-for-Word
Philippine Daily Inquirer Editorial says:
So Panfilo Lacson—former senator, former presidential candidate, former national police chief—will be President
Aquino’s point person for the massive post-“Yolanda” rehabilitation program. At least that is what both Lacson
3
and the President have said. Last Sunday, Lacson announced to the media that he had accepted Mr. Aquino’s
offer, made a few days previously. The President has since confirmed that Lacson will be appointed, to use the
phrase beloved by politicians and journalists alike, the Philippines’ rehabilitation czar.
But Lacson has not taken his oath yet, and there is no staff to work with just yet, because for some reason the
executive order that will formally appoint him and detail his duties is still in the drafting process. At least a
week has elapsed since Lacson received the offer; both chambers of Congress in that same span of time have
approved a supplemental budget to help in the reconstruction. What, exactly, are Executive Secretary Jojo
Ochoa and his legal team waiting for?
(The same team was supposed to have drafted the papers that would have appointed Lacson chair of an
anticorruption initiative, something both he and the President also adverted to only recently. The papers never
emerged from the Malacañang labyrinth.)
We realize there is much at stake. There is the initial P40 billion allotted for the rehabilitation of the devastated
areas in Samar and Leyte as well as parts of neighboring islands; while this is not one lump sum, it is still a
considerable amount of money—and from all indications it is only the initial outlay. Then there is the battle of
perceptions that the Aquino administration finds itself waging; it cannot afford to start off on the wrong foot in
the reconstruction and rehabilitation phase. Its perceived delay in getting enough resources to the areas
demolished by Yolanda in the crucial first few days has become conventional wisdom. Then there is the fate of
the survivors themselves, in Tacloban and Palo, in Ormoc, in Guiuan, in Capiz, in numerous other places; for
their sake, rehabilitation must be well-planned, thorough and sustainable.
Still, there is such a thing as reasonable dispatch. The administration needs to demonstrate a becoming sense
of urgency, and the appointment of a rehabilitation czar is an opportunity to make that demonstration.
We realize that naming Lacson to the rehabilitation initiative is not without controversy. The grisliest joke about
his appointment that is circulating on social media is a reference to his reputation, back when he was in the
police force, of being a man with an iron fist. Lacson is the right man for the job, so the joke goes, because he
will make all the bodies disappear.
But a case can be made that, in fact, Lacson is the right man for the job because of three significant
considerations.
First, at a time when public attention is focused on the abuses of the congressional pork barrel and other lumpsum funds in the national budget, Lacson is one of the few politicians to escape with his reputation unstained by
any allegation of pork abuse or corruption. Throughout his 12 years in the Senate, he had declined the use of
his allocations. The massive amount of money that will either be at his disposal or will be coursed through him
would be a cause for concern with almost any other politician-appointee. That won’t be the case with him.
Second, Lacson knows what it is to run, not only a national organization (he was President Joseph Estrada’s
second appointee as chief of the Philippine National Police), but a military-like agency. Rehabilitation work in
Eastern Visayas will likely require a command structure that he will be familiar with.
Third, he is a politician of national stature. In the nitty-gritty of rehabilitation work, conflict with regional,
provincial and local officials will be inevitable. Coupled with his close political alliance with the President, Lacson
will have the necessary credibility to deal with all stakeholders in the process.
We can add a fourth factor. He did not immediately accept the President’s offer, but instead asked for three
days to consider the matter and to consult with experts. We take that as a good sign; he not only knows his
limits but can work with specialists, too.
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