Wednesday, August 31, 2011

Investments and Cha-cha

CONSUMERS DEMAND!
Herman Tiu Laurel
8/29-31/2011



Power rates in Vietnam are $0.05/ kWh; Thailand, $ 0.15/kWh; and in the Philippines, from $0.21 to $0.25/kWh today.

However, ours will even get higher, especially when new rate hike petitions, including renewable energy (RE) feed-in tariffs as well as the huge jump in the Universal Charge of the Power Sector Assets and Liabilities Management (PSALM) Corp., are approved. This is the REAL reason Philippine foreign direct investments (FDIs) are at a dismal $1.7 billion compared with Thailand’s $6 billion and Vietnam’s $8 billion.

The claim of Senate President Juan Ponce-Enrile and House Speaker Feliciano Belmonte that Charter change (Cha-cha) to open up ownership of Philippine lands, alongside other national patrimonies, plus media and other sectors to foreign capital will bring in FDIs is a big fat lie. Foreign land speculators in cahoots with local land grabbers/ bankers will be the only ones who will reap the bonanza while ordinary Filipinos will be priced out of owning their own land. By then, transnationals would have gobbled up majority of the nation’s natural wealth and public franchises.

The real alternative is retention of protection for Filipinos and nationalization of large scale industries for all to benefit

Off the Mark
Can we trust the likes of Enrile, who, aside from being a confirmed dagdag-bawas beneficiary in the 1995 senatorial elections, admitted in 1986 to his faked assassination in 1971 to justify the declaration of Martial Law? Can we trust Belmonte, who was instrumental in passing the Electric Power Industry Reform Act (EPIRA) in 2001 through the lame duck Congress after Edsa Dos by distributing P500,000 to each congressman from the oligarch-beneficiaries of the law, which gave us the “highest power rates” in Asia for the past 10 years? Can we even trust Misamis Occidental Rep. Loreto Leo Ocampos, chair of the House committee on constitutional reforms, or his aptitude for math when he declared, “I think our FDIs will TRIPLE from the current $2 billion to $3 billion once these constitutional reforms are implemented…”? As the promised Cha-cha reforms are sure to be massively off the mark, they are, in turn, right on track with the desires of the IMF, World Bank and ADB that are egging for it.

In fact, the track record of “reforms” of the Philippine Congress the past 25 years doesn’t inspire confidence at all – which is why it is scary that they are brandishing the term again. Consider some of the key REFORM packages Congress had championed and passed into law since the Edsa I “People Power” government, beginning with the Comprehensive Tax REFORM Program (CTRP) that replaced the progressive income tax system with the regressive value added tax (VAT) that transferred the tax burden to the vast majority of middle and low income consumers.

Also, consider the trade REFORM laws passed in the early ‘90s that introduced liberalization, deregulation, and privatization – now casting a curse on the Philippine economy, spurring uncontrolled fuel and power rate hikes, debilitating peso fluctuations, and privatizations that socialize the debts while privatizing the profits.

Oh, lest we forget: The EPIRA wouldn’t be called the Electric Power Industry REFORM Act for nothing – for it simply raised our electricity rates to the highest in Asia, if not the world!

Net Invasion
This Cha-cha for FDI campaign has been massive – so massive and multi-media in fact that it has invaded the Net. I have had a few run-ins with its advocates who use as bogeyman, the “privileged, favored and protected, abusive and exploitative Filipino oligarchs” like the Lopezes, Cojuangcos, et al., who take advantage of the Constitution’s protectionist provisions to monopolize businesses and keep out foreign capital at the expense of free market competition. But is this so? Isn’t it a fact that in many of the oligarch-controlled companies such as PLDT, San Miguel, Petron, etc., foreign capitalists are the major partners of these local oligarchs or, in the case of PLDT, the ones who actually control these companies via majority voting shares?

A look at the Asean website’s “Foreign Equity Policies” section already gives us an overview of how certain of its members conduct themselves on this issue. In the Philippines, for instance, it says that “100 percent foreign equity ownership is allowed in all areas except those in the negative list under the Foreign Investment Act of 1991 as amended.”

As for Thailand, “The 1972 Alien Business Law grants foreigners permission to engage in certain business enterprises… only if more than 50 percent of the capital is owned by Thai Nationals. However, for BOI promoted companies, majority foreign ownership is permitted for projects that export not less than 50 percent of sales.”

Meanwhile, even as Vietnam’s foreign equity rule there appears liberal, where “100 percent foreign equity ownership is allowed” – and this is a phrase often cited by the likes of AntiPinoy.com to buttress their point – it appears to be more of a simplistic reading of its Law on Foreign Investments, Art. 4, Sec. 3, which, if we were to go by a May 2011 US State Department investment climate assessment, is nuanced as follows:

“There are ownership limitations… Foreign ownership cannot exceed 49 percent of listed companies and 30 percent of listed companies in the financial sector. A foreign bank is allowed to establish a 100-percent foreign owned bank in Vietnam but may only own up to 20 percent of a local commercial bank. Individual foreign investors are usually limited to 15-percent ownership, though a single foreign investor may increase ownership to 20 percent through a strategic alliance with a local partner.”

Difficult Challenge
Let’s just keep in mind that no country will ever give away protection of its interests and concerns, much less, the privileges of its own people. Local PR pushers for this Cha-cha for FDI are pulling the wool over many Filipinos’ eyes. What everyone should realize is that a major factor in any country’s investment climate is the cost of power or electricity. Even our detractor, Bangko Sentral ng Pilipinas Deputy Gov. Diwa Guinigundo, had to admit in a private NEDA briefing that “the most difficult challenge for the national government and the private sector (is) addressing the high cost of power in the country.”

However, Guinigundo, along with our senators and congressmen, don’t seem to have the balls to say this out loud in national media: That the exorbitant, predatory, and murderous power rates are the real reason FDIs shy away from our country. Instead, most of them lie, steal, and sell our nation out.

Filipinos should thus act now to stop their national swindles through Cha-cha. Write to newspapers; text radio programs; and send hate mails to those blasted legislative proponents. LET’S DEMAND OUR BIRTHRIGHT FOR PROTECTION IN OUR OWN LAND AS FILIPINOS AND TAXPAYING CITIZENS!

Nothing Good, New from P-Noy, A Year Later

YESTERDAY, TODAY & TOMORROW
Linggoy Alcuaz
8/29-31/11



Last week, we observed two anniversaries, one sad and one happy.

The sad one was the Luneta Hostage Massacre. The happy one was the first birthday of OpinYon.

A delegation of relatives and friends of the massacre victims came to Manila from Hong Kong. They sought an audience with the President, a formal apology, compensation and justice. They went home empty handed.

No less than P-Noy turned them down. He turned down both the request for an audience and the demand for a formal apology. He knew no better in regards to compensation. More on the injustice later.

Distorted Reasoning
According to P-Noy, only one man, Police Senior Inspector (Captain) Rolando Mendoza, was responsible for the eight deaths and the wounded.

He went on to cite the recent bombing and shootings in Norway.

This distorted reasoning just goes to show how P-Noy has not learned anything even after a year and almost two months in office. The respective governments’ reaction and response to both incidents were miles apart.

So far, we have not heard of any criticism or reports about “kapalpakans” by the Norwegian authorities.

The Luneta Massacre is the best and most complete compilation of all the do nots in hostage-taking situations.

Why did they not?
Sometime in the late Marcos years, there was a bank robbery at a BPI branch in Cubao. The police (at that time the PC Metrocom) response turned into a nationally-televised comedy.

Contrary to P-Noy’s jaded opinion on the matter, our opinion is the exact opposite.

Left alone or simply subjected to standard or “by-the-book” responses, Mendoza could not kill or would not kill anyone.

This must have been the perception and understanding of and by the negotiators, the ground commander and the local crisis committee.

Otherwise, they should have taken more aggressive and decisive action during the almost nine hours of daylight.

During this time, Mendoza could be seen, approached and talked to. There were countless opportunities to neutralize Mendoza both with and without gunfire. Why did they not?

Justice not Served
In not doing so, the authorities condemned the hostages to death, being wounded and/or psychological trauma.

Worse, it was the authorities who provoked Mendoza to run berserk when they manhandled his brother, Gregorio, in full view of the cameras.

It was the authorities who were criminally negligent when they did not prevent the live airing of the manhandling.

It was the most central authority, Mayor Alfredo “Fred” Lim, who could have been perceived as ordering the salvaging or extra judicial execution of the brother.

A year after, justice has not been served.

Aquino-Cojuanco Disposition
The responsibility for the injustice is squarely on the President’s lap.

It is he who thwarted the Incident Investigation and Review Committee’s recommendations that are almost eleven months’ old. He has continuously and consistently played favorites with his ka’s….

The Aquino–Cojuangco clan has a disposition for adding insult to injury.

At the same time that relatives and friends of the Massacre Victims were to commemorate the anniversary at the Luneta Grandstand Road, P-Noy was discovering a new toy, the BRP Gregorio del Pilar, the new old USCG Cutter Alexander Hamilton.

His mother, Cory, did a similar thing.

In January 1997, the PC Metrocom with WPD, INP and Philippine Marines attacked violently and dispersed with gunfire a farmer’s rally at the Mendiola Bridge.

Although he was not the ground commander, PC Metrocom Commanding General Ramon Montano immediately resigned his position.

Exactly a year later, he was promoted and appointed PC Chief/INP Director General.

OpinYon: Of Deadlines and Computers
We have to congratulate OpinYon, Ray Junia and ourselves for the past year. We made it to our first birthday last week.

Our column, Yesterday, Today and Tomorrow, did not miss a single issue. Except for our first column (The Hard Part, How to Govern … in Six Years, August 23, 2010), we never managed to submit ahead of time. We usually had a Wednesday deadline.

On the average, we managed to submit our final draft just a day and a half late. Or sometimes, when the deadline was Thursday, we would be just half a day late.

Out of 53 columns (including last week’s issues # 1 & 2 of year 2), I wrote most with my son’s computer or laptop, in his ground floor room or in our second floor dining room.

I wrote one in a friend’s house in South Forbes, one at the Jeepney Coffee Shop of the Intercontinental Hotel in Makati City, two at the St. Luke’s Medical Center in Quezon City, and the last two in the new OpinYon office at Cityland 9 on De la Rosa Street.

I sent most of my final drafts by Internet from our New Manila, Quezon City home to the E-mail addresses of our paper, publisher, editor, layout artist and secretary.

Five times, I used different means: Friday, March 11, the day of the Japan earthquake and tsunami, I used my friend’s computer and Internet; once, I physically delivered it in a USB; three times, I used public Internet access, once at Annabel’s Restaurant (This was the Friday when the “buhawi” hit our New Manila neighbourhood), and twice at the St. Luke’s Medical Center (When my third child was confined for cellucitis).

If you knew how illiterate I used to be with the computer and Internet, you would congratulate me profusely.

Ray Junia Who?
Ray Junia has turned out to be the real man both behind and in front of the OpinYon.

A year ago, he was “Ray Junia Who?” to some of our readers.

Even when he was already better known, many could not believe that he was capable of financing our weekly opinion paper singlehandedly.

Many would speculate as to who was really financing our paper? Was it GMA? Was it FG? Was it some unknown and anonymous businessman? Sorry to disappoint everyone. It was Ray, just Ray and nobody else.

We congratulate the entire staff and the columnists of OpinYon, most specially our Editor Luchie. We remember also our first editor, Ike Seneres, as well as all the staff members and columnists who did not complete the first year with us.

White Lady in my Column
We would like to invite everyone to watch tonight, Monday, August 29, at 10 pm the QTV 11 program “I Juander” episode on the White Lady of Balete Drive.

Our YTT column in the November 1 – 7, 2010 issue of OpinYon was one of their source materials.

One of their several versions of the White Lady was our three houses away neighbour in the early 50s, Maria Elena Recto Garchitorena, daughter of Maria Christina Recto and a Garchitorena from Tigaon, Camarines Sur. They are relatives of Ricky Recto, Chona Kasten Recto, and Louie Ysmael.

The other white lady is a rape victim circa World War II.

Who else will Resign
Saturday, September 3, is the 40th day since our eldest brother Manuel Vicente Arsenio Zaragoza Araneta Tuason Alcuaz, Jr. who died at the age of 72 (December 14, 1938 – July 24, 2011). We will offer Mass at 6 pm at the Shrine of Mt. Carmel at Broadway Avenue between 4th and 5th Streets, New Manila.

Since his death, his articles have come out four times: (1.) Foul! Zubiri freezing the ball! In the July 25 – 31 issue of OpinYon. On Wednesday, August 3, Zubiri resigned; (2.) Making PH the “must experience destination in Asia”: Going back to basics. This was the last article written for the column MAPping the Future of the Management Association of the Philippines on page B4 3 in the August 8 issue of the PDI. Soon after DOT Secretary Alberto “Bertie” Lim resigned;

And, (3 & 4.) Fraud in 2004 presidential polls – was written five years ago but was only published in the full page Talk of the Town sections of the August 14 & 21, Sunday issues of the PDI. Who else will resign?