Wednesday, July 13, 2011

Use your "coconut"

CONSUMER'S DEMAND
Herman Tiu Laurel
7/11-17/2011



The recent Supreme Court (SC) ruling granting Danding Cojuangco “legitimate” ownership of 45 percent of that 47-percent share (or 20 percent, in total) of San Miguel Corp. (SMC), worth around P70 billion, does nothing to negate the fact that Cojuangco sourced the money for “his” shares from UCPB (United Coconut Planters Bank), the bank set up with “coconut levy” funds.

The market value of SMC, the country’s second largest corporation, is valued at $8 billion, with shares sourced from the funds of the coconut levy constituting around 47 percent of the conglomerate.

Senate President Juan Ponce-Enrile supports Cojuangco’s claim saying “The 20 percent was bought by Danding and they borrowed money from the United Coconut Planters Bank.

“Where that money came from, I do not know because when the bank lends money, it does not identify the money that is used for lending.” That’s technical gibberish.

Enrile, like Ed Angara, Frank Drilon, and the late Raul Roco of the ACCRA Law office then, facilitated Cojuangco’s channeling of the coco levy funds to his projects

Never Brought to Trial
What Filipinos have not been made aware of is the fact that the Cojuangco coco levy issue was never brought to trial and subjected to a bona fide examination of facts.

What the SC decision dealt with were only questions of law and a debate on definitions.  The funding from the coconut farmers’ coco levy of UCPB as well as the use of Cojuangco’s political clout to launder this and place it under his name, stripping the fund of its original purpose, all didn’t matter.

As the multibillion litigation stretched over 25 years, the coconut industry has starved for investment and funds for expanding and developing the country’s coconut stock in all that time.

Here, the fundamental issue is a moral one: How can one man cause so much deprivation on an industry that 25 million Filipinos depend on?  Thus, the struggle for justice isn’t over.

Coconut farmers and citizens are escalating the fight to media as we speak.

Coco Shaving
Last July 6, scores of coconut farmers from all over the country converged on the Quezon Memorial Circle’s Coconut House to infuse new blood into a continuing protest movement.

It kicked off with a “coconut shaving,” or a head-shaving in front of the country’s media, which I will also do to myself on my Global News Network program on July 12 with other coconut farmers, including female coconut leaders like Ka Cita Esmao, while discussing the coco levy issue.

The move is symbolic of the nation’s protest against such blatant greed and conspiracy by different factions of the ruling class at the expense of millions of Filipinos.

It would thus do our 95 million Filipinos good if they could sharpen their insights and use their “coconuts” in crystallizing the main issue that bedevils the life and progress of this nation -- the injustice, abuse, and exploitation of the present ruling class.

Beyond this, Filipinos, too, must become aware of their power as consumers and literally use their coconuts in fighting off the oligarchs to save our national economy.

‘Buko’ Power
Value-wise, Philippine coconut exports, amounting to 900,000 tons a year, could reach $1.5 billion at today’s world market prices.

But with conscious and deliberate promotion of the local use of the coconut’s abundant nutriceutical, pharmaceutical and industrial properties, its economic value could increase by at least fivefold.

Take for instance the so-called “sports drinks” available in the market.

If you’re still one of those gulping down such known brands as Gatorade or Powerade, thinking that you’re doing your health a favor, think again.

You are merely being taken for a ride by the advertising industry and its corporate clients who all peddle such drinks containing “junk ingredients including high fructose corn syrup, artificial dyes, and some other things” as one sports evaluator said.

Like Big Pharma’s fraudulent vaccine and drugs claims, these sports drinks are similar frauds slowly being exposed in the US.  But how is this related to our coconuts?

Simple. Those major brands are now shifting to the use of coconut water --or buko-- as their main ingredient.


Powerade’s maker, Coca-Cola, is now sourcing coconut water from Quezon and setting up a plant in Mindanao, following a similar move by Pepsi-Cola’s Gatorade.

Evidently, these two giants are tapping the desiccated coconut plants that used to just discard coconut water after extracting meat and oil from coconuts.

Still, these plants consume only 10 percent of the total coconuts produced in the country.

Boost to Economy
Filipino consumers should thus quit paying up to P30 for such sports drinks and just take to natural buko straight from the nut.  It’ll go a long way in boosting the national economy.

My household consumes at least 20 coconuts a week, which I buy from my Mandaluyong suki for P17 each.  Elsewhere, I know they’re around P20 to P25 a piece.  You can easily arrange with the many neighborhood vendors to deliver them right to your doorstep.

Last time I visited “the best SC Chief Justice this country never had (yet),” Law Professor Alan Paguia, I overheard his wife Pilar mentioning an anti-dandruff brand they were going to buy.

I sprang from my seat and told them to use virgin coconut oil (VCO) instead, which worked wonders for my scalp a decade ago.

Aside from not having that dandruff problem ever since, I still have jet black hair for the most part at my not-so-young age (60) even as the rest of my nine siblings are already dying theirs.  One pure VCO brand, Nature’s Gift, is the cheapest so far.  It costs 25 percent less than other brands and is found mainly in Chinese drugstores.

Dairy Substitute
What’s more? VCO is still one of the best options for overall health, weight loss, IRS (Irritable Bowel Syndrome), candida, thyroid problems, aching joints, diabetes, and a host of other health issues.  Why, I even cured my warts, which had been growing around my neck and shoulders, with it.

 And, lest we forget, coconuts are an abundant source of milk.  With over 300 million coconut trees --every 20 trees of which can equal a cow’s annual milk production -- we can end the $1-billion importation of dairy products from other countries and save valuable foreign currency.

On the industrial front, coconut charcoal is still the unequalled filter medium while coconut coir is still the required material by markets such as China for their 100 million mattresses produced each year.

Re-Green
Meanwhile, coconut fiber is now the choice material for geo-textiles to help prevent soil erosion as well as reclaim and re-green “desertified” areas.

Finally, the use of coconut oil-based detergents and personal care products will not only help our coconut industry and the national economy, but will greatly reduce the chemical pollution that causes many of our society’s health and social problems.

Government leadership, for perfecting such technologies, same with quality upgrade and marketing of these coconut products, will definitely boost every Filipino’s economic prospects.

Next time you reach out for a thirst quencher after a round of badminton or basketball, try looking for fresh buko from your neighborhood vendor instead of a commercial brand.

If there’s none around, make sure you talk to the one you see making his route nearest you to pass by your sports center or home.  That creates the ripple that will reverberate through the entire economy.
Do your part and use your coconut.

(Tune in to Radyo OpinYon, Monday to Friday, 5 to 6 p.m., and Sulo ng Pilipino, Monday, Wednesday, and Friday, 6 to 7 p.m. on 1098AM; Talk News TV with HTL, Tuesday, 8 to 9 p.m., with replay at 11 p.m., on GNN, Destiny Cable Channel 8, on “Heads Up for Coconut Farmers”; visit http://newkatipunero.blogspot.com for our articles plus select radio and GNN shows)

Meralco rate rip-off

CROSSINGS
Butch Junia
7/11-17/2011



Major newspapers and mainstream media were again bursting with news of Meralco’s lower rates next month.

I have come to welcome this surge of attention, even if focused on the adverse side of the power equation, because it makes the public aware that there is such a thing as the power rate.

Hard-pressed to meet my deadline and the issues already commented on in one or another of my past columns, I will just reprint what I have said so far on Meralco rates.

On January 10, 2011, we said in Crossings, Abolish PBR; abolish ERC: “Last week, two morning broadsheets had very similar headlines quoting a Meralco spokesman. “Meralco rates down this month,” said one. “Lower power bills seen for Meralco customers,” said the other.

A Joe Zaldarriaga, the Meralco spokesman, said rates would go down by 27 centavos per kilowatt hour (pkwh), better than the 20 centavos originally projected, because of lower costs in generation and transmission.

Half-Full Situation
Before we start jumping like chimpanzees, listen to the Manila Bulletin, the only paper that nailed the lead that should matter to us: “A slew of shocking news seems to be greeting consumers this start of the year with utility giant Meralco joining the fray Wednesday by announcing an increase in its power rates by P0.1547 pkwh to P1.6464 starting this January billing from last month’s average of P1.4917 pkwh,” wrote Bulletin’s Ms. Myrna Velasco.

Quite succinctly but appropriately, the story was captioned:”Meralco hikes rates.”It was a classic half-full/half-empty situation, but many missed the emptiness in Meralco’s claim to better rates.

The increase in Meralco’s distribution, supply and metering (DSM) charges by P0.1547 pkwh represents the last installment in the annual increases Meralco is guaranteed by the Energy Regulatory Commission (ERC) under Performance Based Regulation (PBR).

On November 29, 2010, we also said in Crossings, PBR & EPIRA cause of costly power:  “Performance Based Regulation (PBR) is the principal reason for the 80% surge in Meralco’s net income for the first nine months this year, from P5 Billion in 2009 to P9.28B. It is also the cause for our very expensive electricity.

A Boost in Meralco Revenue
This dazzling and outstanding financial performance of Meralco could only have come from the annual rate increases obtained through PBR.

Under Return on Rate Base (RORB) Meralco’s distribution charge was only P0.7057 pkwh.

Today under PBR, Meralco’s distribution rate is P1.4917 pkwh , set to increase furtherb to P1.6464 pkwh for July 2010 to June 2011, and up to P1.9036 pkwh by 2015.

According to Meralco Chief Finance Officer Betty Siy-Yap, billed customers during that period increased 3% and energy sales went up by 11%, but there is no way that level of market growth alone could have resulted in an 80% surge in Meralco’s net income.

Distribution rate adjustments approved by the Energy Regulatory Commission (ERC) i.e. rate increases, Ms. Siy-Yap said, boosted consolidated electricity revenues by as much as 32%, or up to P188.9B.

So there it was. The 32% boost in revenues from a customer base that only grew 3% and consumption that expanded only 11% could only have come from the series of rate increases Meralco and ERC quaintly describeas a “distribution rate adjustment,” as if not calling it an increase would lower the rates to captive customers or tame the rampant profits of utilities.

Highest in Asia
Former Meralco Chief Operating Officer Jesus Francisco, in an item in the Philippine Daily Inquirer, September 2, 2007, said: “The procedure (in PBR) is, once you have agreed on the operating expenses and capital expenditures, the ERC will already calculate the rate adjustments that will grant the utility its desired return. That is to be given to you (the utility) regularly or every year.”

True to the prophetic word of Mr. Francisco, Meralco’s distribution charges under PBR have been increasing yearly, to end up in 2015 at more than triple what it was under RORB.

On January 31, 2011, we again had occasion to say in Crossings, PBR: Parusa sa Bayan Rates – “In a world besieged by contractions in global finance, Meralco experienced anemic market expansion but posted exponential growth in earnings. Meralco’s captive customers, on the other hand, suffered one of the highest  rates in Asia and the world.”

Overstatements
In Mang Naro’s own words, here is why the ERC should throw out the Meralco application (for a rate increase): “In compliance with the Notice dated 15 December 2010 the undersigned (Genaro Lualhati) respectfully submits this comment and prays to this Hon. (sic) Commission to desist from holding public consultations on its own DRAFT DETERMINATION (DRAFT) for the 3rd Regulatory Period from 2012-2015 and instead to DENY and DISMISS the instant application outright onthe following grounds – 1. The DRAFT is ILLEGAL and UNJUST, 2. The DRAFT finding of gross overcharges proves the application is filed in bad faith with DOCTORED (sic) OVERSTATEMENTS.”

“The DRAFT is illegal because like the application it is based in the illegal 15.50% Performance Based Rate (PBR) rate setting method that inflated the return by 29.16%....” xxxxxxxxxxxxxxxx
Mang Naro goes on to show Meralco’s alleged overcharges and the Commission’s revisions totaling P92.8 billion consisting of P43.072 billion for “ARR OVERCHARGE”, P34.921 billion for “RETURN OVERCHARGE”, and P14.859 billion for “OPEX OVERCHARGE”, all for the 4-year period.

“Additionally,” Mang Naro says further, “the DRAFT did  not consider the following anomalies reported during the hearings showing ERC bias in favor of Meralco to wit: 1. The Meralco assets are 50% utilized as declared in witness stand Mr. Emerton an AACI Expert; 2. Meralco power transformers are 73%-151% overpriced reported by Mr. Uriel G. Borja (Amendment of Manifestation with dated November 22, 2010);

“3.The unresolved PBR ERC CASE NO 2010-034 MC that illegally inflated return by 29.16%; 4. Meralco filed two (2) doctored RAB values – revised even higher by ERC to favor Meralco, shown below - original Meralco application P155.241 Billion, Meralco Supplementary P119.21 billion, DRAFT (revision) P125.989 billion.”

The ERC CAPEX is overstated, according to Mang Naro.

Rate Application
TODAY, I learned from Pete Ilagan of Nasecore that Meralco has filed under ERC Case No. 2011-088 RC an Application for a) Approval of its Maximum Average Price (MAP) for Regulatory Year (RY) 2012 and, b) Translation of MAP for RY 2012 into a Rate Structure for Meralco’s various customer classes with Prayer for Provisional Authority.

Teka muna! RY 2012 is the entry year for the 3rd Regulatory Period, which was discussed, not extensively nor thoroughly, let alone intelligently, under ERC Case No. 2010-069 RC.

After all the exertions, two Determinations were arrived at by ERC, one deceptively a Draft the other supposedly Final, but neither one discussing, answering, clarifying even acknowledging objections, computations, documentary evidence, position papers, manifestations, not even the testimonies and facts adduced in what were supposed to be public hearings, pretrial meetings, consultations on the application.

Lo and behold, when we come to the price and the discriminatory rate per customer class, the rate application reinvents itself and acquires a new ERC Case Number with a different title.

Sleight of Hand
Serious questions arise out of this new twist.

What will happen to the Intervenors of record in the original case – ERC Case 2010-069 RC? Do they have to re-qualify as intervenors in this latest application for an increase in rate based on the original case?

Mind you, this is not a minor issue under the present rules of ERC, where ERC effectively muzzled and shackled oppositors to Meralco’s PBR application. They did this to Uriel Borja and several others.

Alarming, too, is the prayer for Provisional Authority, which can be breezed thru if there is no intervenor, a distinct possibility with this latest prestidigitation – sleight of hand, remember – by the Honorable ERC.

Akala ko ba PBR is so efficient that it has rendered the provisional authority obsolete under PBR? May PA pa pala.

Abangan natin ang susunod dito. Abuse of discretion ba ito? Or abuse of our naivete?

Gran'ma of all Personality Cults

YESTERDAY, TODAY & TOMORROW
Linggoy Alcuaz
7/11-17/2011



In six weeks, OpinYon celebrates its first birthday as a hard-hitting weekly opinion paper. We will not pre-empt our Publisher Ray Junia and Editor Luchie Aclan Arguelles by leaking our plans for the future. All we can say for now, is that, relatively, just as our first year was better than P-Noy’s, our future is much brighter than his.
The past 10 days since the Aquino Administration’s first birthday on June 30 have not been good for Administration, Opposition, or the Philippines as a whole.

Slight Postponement
P-Noy signed the ARMM Election Postponement Bill into Law on June 30.

Immediately, the Opposition, the PDP-Laban and other concerned parties filed their oppositions before the Supreme Court.

However, the unconfirmed COMELEC Chairman pre-empted the questioned law by stopping the preparations for the August 8 ARMM elections more than a month ago. Even if the Supreme Court strikes down the postponement, there is no more material time to conduct the elections on the original date. There will have to be a slight postponement.

Meanwhile, after a long wait and much urong-sulong, Mar Roxas took the helm of the DOTC. His first instruction from above was to look into the Ro-Ro Project, which is being suspected of being loaded with “tong-pats”.

Meanwhile, the Quiambao side of Stradcom won a round in the Supreme Court.

However, not much has been heard from Secretary Roxas about the LTO, Stradcom and  Virginia Torres.

Politicalization of Corruption
The worst booboo of the week was the politicalization of the anti graft and corruption agenda.

Suddenly, the witch hunt was focused on several Roman Catholic Bishops and Priests who had solicited and received transport vehicles from the PCSO (None of which was a Pajero. One was a Mitsubishi Montero, roughly half the price of Pajero).

Last Wednesday and Thursday, the Senate Blue Ribbon Committee conducted hearings on various anomalies and issues at the PCSO.

The next hearing will be this Wednesday, July  13.

Meanwhile, the old PCSO Board, spoken for by former PCSO Chairman Manoling Morato, has accused the Guingona chaired committee of bias and the new PCSO Board of doctoring documents including the COA report.

He also claimed that only Administration Senators attended the hearing (That reminds me of the October 2001 Angara committee investigation of the PCSO. That was probably the Committee on Government Corporations.The then Senate majority and GMA Administration Senators boycotted the one and only hearing. I wonder if a Committee Report was ever made. About nine Opposition Senators attended the hearing and still whitewashed the investigation.).

How do we get out of this?
And so we are stuck in our time warp of Administration and Opposition. Charge and countercharge. Angels and Devils. Black and White.

And the question is, “How do we get out of this?” At the moment we are stuck inan endless vicious cycle.

A point in time comes when the Administration becomes so demonized that the Opposition becomes the sweetest smelling Angel.

That is what happened two years ago. We are now on the eve of the second anniversary of Cory’s death on Saturday, August 1, 2009.

When Cory died, lied in state and was buried, Ninoy’s assassination, martyrdom, wake, and record breaking burial was recalled.

Pedestal for Noynoy
Cory and Ninoy became the pedestals for Noynoy’s candidacy for President.

I may now “raise my own bangko”.

From August 8 to September 9, 2009, I believed in, lobbied for and did my best to popularize the point of view that Noynoy should run for a higher national position than Senator but was not yet capable and prepared for the Presidency.

So see, I can now say I told you so!

And so, what is to be done?

Well, the problem in Philippine society and politics is that, a priori, we look at all political parties, politicians and therefore all politics as bad, ergo. Trapos.

We, therefore, fall into the trap of idolizing individuals, converting them into messiahs and saviors and therefore becoming blind to all their faults.

Textbook Answers
Let us go to the textbook answer.

When you have people, you have a society. When you have a society of humans on a piece of territory, you need a government.

When the people, territory and government are a distinct nation or country, you need a national government with its respective local governments.

When you have a government, you need government officials and employees.

When you want a democratic government, you need elections and elective officials.

When you have elections and elective officials, you need political parties.

Now, we have to make a choice or choices.

Do you want a Parliamentary or Presidential form of Government? That will determine whether you will have or should have a Multiparty or Two Party System.

Our problem is that we have a Multiparty System in a Presidential Government.

Reformist Elite
The roots of this problem are in the critique by Christian Democrat/Socialist  Leader and Philippine Pioneer Raul S. Manglapus, of the pre Martial Law 1935 Constitution Presidential Two Party System of Government.

Manglapus was a 1950’s Catholic (They were reactionaries to the PKP/HMB Rebellion of the late 40’s and early 50’s.) and Jesuit-educated (They were inspired and assisted by the Jesuits to organize Reformist Social and Political Movements. Thus, Jeremias Montemayor organized the FFF. Johnny Tan organized the FFW. Raul Manglapus belatedly, in 1967, organized the CSM).

They belonged to the pre-martial law reformist elite.

They looked at the UP and the Public School Educational System as incapable of preserving its graduates and products going into government service from falling into temptation.

They said that the Nacionalista Party and the Liberal Partywere the same dog with a different collar.

They did not have real and distinct Programs of Government. Their Party Platforms were mere formalities necessary for COMELEC registration.

Grand Alliance
The Manglapus School of Reformist Politicians had entered Government Service with Nacionalista Party import from the Liberal Party, Ramon Magsaysay, in 1953.

When he died in March 1957, the Reformists were orphaned.

With Uncle Sam’s encouragement, they put up a third political force. They ran in the 1957, 1959 and 1965 Elections.

In the 1957 and 1965 Presidential Elections, their party had the initials PPP, standing for either the Progressive Party of the Philippines or Party for Philippine Progress.

In the Senatorial and Local Elections of 1959, the name used was the Grand Alliance.

In 1961, they coalesced with the Liberal Party as the United Opposition. Their former PPP or Grand Alliance Senatorial Candidate Emmanuel Pelaez ran as Diosdado Macapagal’s Vice President.

They could only win when coalesced with one of the mainstream party.

The most important reason was that the Two Party System was maintained by the system of party inspectors in the election precinct board of canvassers or inspectors.

These Boards were composed of a Chairman who was a teacher and a Representative each from the Majority and Minority Parties.

Their allowances or per diems were paid by the Government through the COMELEC.

Martial Law Years
Then came Martial Law.

In spite of being the Leader of the NP, and the NP being the Majority Party in both Houses of Congress, Marcos put up the KBL.

On the other hand the LP boycotted the 1978, 1980 and 1981 elections.

New National and Regional Opposition Parties had been organized.

When EDSA I restored Democracy and installed the Cory Revolutionary Government, Cory appointed a Constitutional Commission to draft a new constitution.

Enough non-politicians and reformists were appointed as to favour a Multiparty System. However, a slight majority decided at the last moment in favour of a Presidential System and a Multicameral Congress.

More Political Parties
This is the worst case scenario for the growth and development of political parties.

Thus, the two big dogs of the pre martial law 1935 Constitution have turned into many dogs of various sizes but still with the same collar.

The Balimbing Disease has become stronger and more pervasive. In the old system, it took several years for the Balimbing Disease or Political Turncoatism to cause the Majority in either House of Congress to change hands.

Nowadays, it happens even before all the Presidential votes have been counted.

Thus, since the 1987 synchronised elections, we have had a series of national personalities wagging political parties as though they were mere tails.

During Cory’s time, she might not have wanted to wag tails. However, her brother, Peping, could wag the LDP. Ramos had Joe de V. to wag the Lakas.

In 1998 parties (PMP, LDP, LP, PDP and the NPC) wagged themselves in order to hang on to Erap’s coat tails. In 2004, there was even an ASO (Angara, Sotto and Oreta) Collegial Campaign Manager to wag tails for FPJ.

Although, GMA’s ascent to the Presidency was the fruit of a conspiracy, she became the instrument of the conspirators because she had nurtured her political career on the personality and showbiz cult.

But the Grandmother of all Personality Cults was the Combined Ghosts of Ninoy and Cory serving as the foot pedestals of Noynoy.