Diversion, deception

DIE HARD III

Herman Tiu Laurel

9/24/2012

The original issue now buried under tons of media debris from the Trillanes-Enrile imbroglio was not the China back channeling, it was the Camarines Sur gerrymandering bill and the alleged Gloria Macapagal-Arroyo lobbying with the Senate president to pass the bill. This issue was tabled in the Senate for Monday, Sept. 17 but Senator Trillanes was absent due to a leg injury. It was in that Senate session that Enrile, irked at the questions over his pet CamSur gerrymandering bill that the Senate president lambasted Trillanes for being a "coward" in failing to appear in the Senate debate on the issue. Trillanes could only attend on Wednesday, declaring his loss of confidence in Enrile's leadership and to bolt the Senate majority coalition.

Solita Collas-Monsod wrongly asserts in her Sept. 22 Inquirer column that, "It is very clear that the fight between Senators J.P. Enrile and A. Trillanes was started by the latter when he named Enrile as the reason he was quitting the majority bloc… complete with attacks on the quality of Enrile's leadership (supposedly dictatorial at the very least) and motives (alleged lackey of Gloria Arroyo)." Monsod attenuated the timeline and arrived at the wrong conclusion. Enrile cast the first stone on Monday, Sept. 17 calling Trillanes a coward. On Tuesday, some newspapers were already bannering Trillanes' back channeling vis-à-vis China on the Scarborough Shoals question. But the back channeling was a confidential State mission, confirmed by Malacañang lately by BS Aquino III himself. Who leaked the Trillanes back channeling to the press?

It doesn't appear to be an accident that on Wednesday Enrile responded to Trillanes' privileged speech not by answering the issues squarely but with a grand diversionary move. Enrile diverted the proceedings from CamSur to China-Philippine relations, lambasting the Trillanes back channeling with highly charged, emotional ad hominem such as "traitor." Enrile conveniently had in hand former RP ambassador to China, Sonia Brady's notes which he read and annotated with derogatory and bombastic bias against Trillanes. Subsequently, revelations involving DFA Secretary Albert Del Rosario and Manny V. Pangilinan surfaced revolving around MVP and the US interests. Recognizable radio hacks immediately went to work on morning radio, many former appointees of Gloria Arroyo (whose hatred of Trillanes is well known) to government sinecures.

Enrile's use of Brady's notes dragged other issues in, such as the links of Del Rosario's antagonistic bellicosity against China, relations to Manny Pangilinan and the latter's Recto Bank interests, the US "pivot" and "refocus" on Asia, and the unfortunate mismanagement of Malacañang of a "good cop, bad cop" strategy with China that otherwise would be a valid strategy in dealing with the Scarborough Shoal issue. People should pause to ponder: Was it kosher or proper that Enrile read confidential government diplomatic records and exchanges without following protocol? This is prima facie treason. That's why Trillanes had to walk out a while, as discussing the Brady notes in the open jeopardizes national security. As it turns out now, Enrile's impropriety really embarrasses the country.
Enrile cast a lot of aspersions. But while engaging in trapo gerrymandering and avoiding to face the issue, does he have the right to call anybody else a "coward?" Enrile called Trillanes a "fraud."

Let's consider Enrile's admitted lie in staging his own fake assassination in 1971, his 1995 dagdag-bawas proven by Nene Pimentel, his betrayal of the anti-PPA cause we started in 2001, ad nausea. Who's the fraud? I have known Trillanes and the Magdalo soldiers since Oakwood 2003. These young men stayed together through the hardest of times, with many among their families literally on the verge of starvation during their incarceration; only their word of honor kept them together and through thick and thin. Enrile should not think his billions can besmirch the Magdalo members or "sno-pake" his own vacuity.

DFA career officers say Del Rosario is a green card holder. Graduated from Xavier High School in New York and New York University, a member of the Asia Society (a John Rockefeller organization) and its International Council, Del Rosario is very qualified for a green card. Del Rosario sat in MVP companies: the Philippine Telecommunications Investment, Philex Mining, PT Indofood Sukses Makbur Tbk (Indonesia), Metro Pacific Investments, Metro Pacific Tollways Development, Manila North Tollways and more; headed Pacific Plaza Towers' development, Metro Pacific Corp.'s signature project at the Fort. Del Rosario's SALn has P 650 million. MVP called Trillanes a "liar," asking why he would conspire with Del Rosario if he (MVP) is negotiating with China. It's not only in diplomacy that "good cop, bad cop" is useful.

Gloria Arroyo awarded Del Rosario the Edsa II Heroes Award in recognition of efforts in promoting Philippine democracy, the one described by former Supreme Court Justice and ConCom chairman Cecilia Muñoz Palma described as a "Rule of Force." With the most critical foreign relations issues in his hands, shouldn't these questions about Del Rosario be clarified first?

(Watch Destiny Cable GNN's HTL edition of Talk News TV, Saturdays, 8:15 to 9 p.m., with replay at 11:15 p.m. and Sunday, and on www.gnntv-asia.com: this week "Dollars, Pesos and Gold" with FDC's Sonny Africa and KME's Hiro Vaswani; tune to 1098AM radio every Thursday 3p.m.; visit http://newkatipunan.blogspot.com)

The presidency or the republic?

BACKBENCHER

Rod P. Kapunan

9/22-23/2012

(An excerpt from the author's forthcoming book)

Had it not for our misplaced values and oblique perceptions of things, Mrs. Marcos would be right in saying that the declaration of martial law by her late husband, Ferdinand E. Marcos, was his greatest political act as President. It could have been his greatest heroism, for then he acted to save the republic from being violently fragmented by an ideology determined to overthrow the constitutionally established government. Positively looking at that fateful decision, maybe in that sense Mrs. Marcos was right. It was an ultimate act of self-defense, for often the painful process connotes a degree of suppression to those who purposely sought to realize their objective outside the parameter of a peaceful process.

Many historians judged martial law not on the basis how it was successfully enforced to restore order, but often misjudged it on the basis that it exacted a price on the liberties of the people. Those who opposed Marcos judged him not for why he imposed it, but for the drastic measures to precisely deal with the national emergency. From that angle, Marcos is viewed negatively. The ratio decidendi why in the first place martial law was conceived as a constitutional and a valid defense is short-circuited by the cry of suppression without reexamining the nobility it sought to achieve. Having succeeded in negatively depicting martial law, Marcos, for all his heroism in wanting to preserve the Republic he presided, was demonized.

From a philosophical standpoint, the declaration of martial law deserves to be given a priori and apriori reexamination. It is only by understanding what led to its imposition could we, as a nation, judge that (un)historic action whether Marcos stands to be glorified or to be condemned permanently by history. It is most excruciating for one who was affected to detach himself from the person or to judge history with the end view of giving premium to the commonweal. by standing on higher ground could we visualize the events beyond the vistas of recrimination, detached from that dilemma of either to praise or condemn him. In that sense, we also liberate ourselves from the encapsulated bias of what happened.

First, we condemn Marcos for his decision to declare martial law without us knowing the circumstances that led him to impose it. For that, we tend to judge martial law as arbitrary and capricious, and not a necessary and defensive legal mechanism of the State.

Second, we tend to judge the effects of martial law on a personal basis, like how it affected us individually, and not from a collective point of view that it will do good to restore tranquility in our society.

Third, we tend to equate his decision as personally motivated, and not as an exacting duty reposed upon him as commander-in-chief of the Armed Forces.

Fourth, we tend to ignore that martial law constitutionally mandated the President to exercise that emergency power.

Fifth, being an extreme exercise of power for the defense of the State, we often fail to balance between its positive and negative effects to our people and to our society.

Sixth, since martial law was bound to affect people who sought to have it declared, paradoxically, they should have anticipated the high price for their participation.

On the first issue, many of us condemned Marcos for imposing martial law on September 21, 1972, than in asking whether there were valid grounds that compelled him to impose it. Such question is crucial because the circumstances that led to its declaration remain irrefutable; that martial law was used to save the republic. It was rebellion and subversion that they conceived, and "not a tea party or a picnic" as Mao Zedong would succinctly put it. For the State or for the Marcoses to accede to their demand for compensation is to admit that martial law was, at the outset, wrong and unconstitutional.

Martial law is an emergency political instrument used to surgically remove the abscess that is causing the social and political unrest. The circumstances of rebellion, secessionism, subversion, murder, kidnapping, arson, ambuscades, violent demonstrations, sporadic bombings, assassinations, and arson were carried out in broad day light and with impunity. Only a foolhardy President would ignore them. The reasons were enumerated in the "Whereas" clauses of Proclamation No. 1081 or Proclaiming A State of Martial Law.

It must be recalled that on October 22, 1950 President Quirino issued Proclamation No. 210 suspending the writ of habeas corpus. Fear gripped the people that the communists were at the outskirts of the city. The difference however is that, when President Quirino suspended the writ, the communist HUKBALAHAP was operating outside Metro Manila, while during the time of Marcos, the communists and their newly organized armed group New People's Army were operating almost freely inside Metro Manila. They managed to immerse themselves with the radical students and with labor organizations.

Those irrefutable facts stated in the "whereas" clauses were all verified to have taken place. The orchestrated violence waged against the civilians and the duly constituted authority proved beyond doubt that his suspension of the writ and the imposition of martial law were not fancy alibis to justify his desire to hold on to power.

Even the members of the opposition who sought to distance themselves from that doctrine seeking to overthrow the government admitted of the need to declare martial law. The Supreme Court, acting on the several petitions to nullify the declaration of martial law, including the early decision upholding the suspension of the writ of habeas corpus in the aftermath of the August 21, 1971 Plaza Miranda bombing, held that it would be the height of irresponsibility for the President to stand idly as violent chaos engulfed the nation.

• rpkapunan@gmail.com

Fears for our times

DIE HARD III

Herman Tiu Laurel

9/21/2012

Are we at the trigger point for new major wars and conflicts? The murder of the US ambassador to Libya is now accepted as a conspiracy of Zionist-funded career "Islamophobes" and state intelligence apparatuses. Before whipping up the crowds, a network of agitators on the ground in Libya and Egypt waited for the YouTube insult to the Prophet Mohammed as the perfect cover for the attack that was carried out with military precision. Libya's General National Congress president Izzat al-Megaryef said the assault "was prepared, especially since it coincided with the date of Sept. 11… (with) non-Libyan elements on Libyan soil," adding that "the manner in which (it) occurred… confirms that this was planned and programmed to achieve a purpose," which allegedly does not "exclude discovering things that will link al-Qaeda (to) the US consulate attack."

In Asia, evidence is clear of a provocation by the Japanese with their purchase of the controversial Diaoyu Islands disputed between their country and China. The Japanese government obviously chose not to "let sleeping dogs lie" by, take note, signing the official contract with the Kurihara family (the so-called private owner of those islands) on Sept. 11, 2012 to nationalize the territory under the name of the Japanese state.
I was bewildered by the uncanny coincidence of the Japanese provocation to the date signifying the 21st Century's Day of Infamy (from either conventional or conspiratorial points-of-view). There are only 365 days to a regular year and coincidences over time can happen often, but the frequency of destabilizing 9/11 events seems to have increased since 2001.

The other notable 9/11 events in history: On Sept. 11, 1990, President George Bush (Sr.) delivered a speech to the US Congress entitled, "Moving Toward a New World Order." (Exactly 11 years later in 2001, the 9/11 World Trade Center terror attacks occurred.) On Sept. 11, 1941, official construction on the world's symbol of imperial power — the Pentagon — started. On that same date in 1972, the Munich Olympic Massacre took place, indubitably the first terror act aired live worldwide. Earlier, the proclamation of the British mandate for Palestine happened on Sept. 11, 1922; then, two and a half centuries further back, Western civilization defeated the Ottoman Muslim Turks in the Battle of Zenta in 1697. While we do not accept numerologists' unscientific views of such coincidences, there could be psychological reasons among historic leader-personalities to such occultist dates and numbers fixations.

As we speak, the ruling powers in the West are again ratcheting up the containment of other powers via a global war. Who are the ruling powers? Are they the so-called elected leaders like Barack Obama? No. They are the financial cabals comprising the global financial center (called the City of London) where the recent interest rate manipulation scandal broke and where the Libor (London Interbank Offered Rate) controls the interest rates of the world; same with Wall Street banks like J.P. Morgan and Goldman Sachs that control the US Federal Reserve.

Unfortunately for them, the Western financial system is in its death throes as its "hypothetication," or its practice of pledging property or debt papers as security or collateral for debts without any transfer of title or possession — and without limit for the bankers of London and Wall Street — has finally caught up to it. The millions who have joined Occupy Wall Street, for instance, will lynch these "banksters" as only war without and within can spring these modern Shylocks.

Meanwhile, 4,000 US Marines are now on their way to Africa after Ambassador Steven's assassination in Benghazi, while an Armada of US, British, and French warships are sailing for the most massive naval exercise yet in the Straits of Hormuz — these as Google feigns loyalty to "freedom of information" in keeping the insulting 15-minute video vs Islam running while banning ideological controversial but decent videos of American dissenter Alex Jones; and as the US expands its Okinawa military base over protests of the Japanese people; as it crushes coral reefs in Jeju, South Korea to set up a 120-hectare military base; and as it expands its Darwin, Australia secret bases as well as tighten control of the Zamboanga bases such as Andrews Airfield where Filipino troops' presence is restricted, ad nausea.

Unfortunately, oligarchy-controlled media impose obliviousness by dwelling on petty scandals and quarrels of the natives. Yet equally worse, the nation's political leadership continues to kowtow to Western diktats by dutifully paying an annual tribute (P440-billion amortization, same amount on interest on the national debt) and genuflecting before the war god. Its economists, too, hype humps on the road as signs of "economic progress," all papering over the fears for our world and our times.

Frankly, there is no hope from the current political system. We must persist in hoping and struggling to awaken the people with real information and critical thinking if we are to wean them from entertainment opiates.

Let us unite the people in enlightenment so that we can reinstate our nation's dream of a decent life for all, coupled with security and economic prosperity for all our children.

(Watch Talk News TV with HTL, Saturday, 8 to 9 p.m., with replay at 11:15 p.m. and 8 a.m. Sunday, on GNN Destiny Cable Channel 8 and on http://www.gnntv-asia.com, this week, "Economics, Money, and Gold" with Ibon's Sonny Africa and KME's Hiro Vaswani; tune in to 1098AM, dwAD, Tuesday to Friday, 5 to 6 p.m.; visit http://newkatipunero.blogspot.com)

Innocence of Muslims

DIE HARD III
Herman Tiu Laurel
9/17/2012

We should have expected it, another "shock and awe" event on the 11th anniversary of the 9/11 World Trade Center terror moment. There were speculations about another "Pearl Harbor" moment being plotted by architects of the global "Clash of Civilizations). These plotter reap the boon from the wars raging today, but the expected special ops were expected to be on the scale of the 9/11 WTC. It was speculated that the next 9/11 shock and awe could be a biological weapon attack on Europe. What happened in this second decade anniversary of 9/11 is a coordinated provocation via YouTube and a murderous assault on the US Embassy in Benghazi by a "small and savage group" killing US Ambassador Chris Stevens and three other US personnel which according to Hillary Clinton was perpetrated by a "small and savage group."

There is credible basis for asserting that the Benghazi US Embassy attack was a planned and coordinated operation. From a dozen Internet sources some facts: American pastor Terry Jones, a Quran burning campaigner, had a live stream on Sept. 11 on the internet where he showed the 13-minute promotional clip of the blasphemous film the Innocence of Muslims purportedly directed by an American Jew called Sam Bacile for the alleged $5-million budget film donated by 100 Jews. It is believed Sam Bacile does not really exist. The actors and actresses in the film deny that they knew their project was about Muhammad, and the name was only later dubbed in. From the news site Press TV comes this, "That a blasphemous movie desecrating the person of the holy Prophet of Islam has been released in the United States simultaneously with the 9/11 tragic incident cannot be looked upon as sheer coincidence."

On the evening of pastor Terry Jones' Internet release of Innocence of Muslims on the Internet the Benghazi US Embassy attack happened. Reuters reports, "the militants had surprisingly precise intelligence about the whereabouts of a safe house where the ambassador was rushed after the clashes started. While luck clearly played a role — Stevens died of asphyxiation." This report of death by asphyxiation is now being questioned. Victor Kotsev of Asia Times writes and quotes, "it was clearly professionally executed. 'This was a well-armed, well-coordinated event,' the chairman of the House Intelligence Committee of the US Congress, Mike Rogers, told MSNBC. 'It had both indirect and direct fire, and it had military maneuvers that were all part of this very organized attack.'" Then there's that simultaneous attack in Egypt, indication of a much wider plot.

Kotsev continues, "The British think-tank Quilliam reports that the assault consisted of two waves and was carried out by around 20 militants seeking to avenge the death of al-Qaeda's second in command, Abu Yahya who was assassinated in June." Gordon Duff of Veterans Today Military and Foreign Affairs Journal writes of their intelligence on the ground, "The killings of the diplomats were done under the cover of the riots which had been orchestrated in advance over a series of days. Four color printed placards were ready to distribute prior to the Jones 'stream-cast'… The actual killings are said to have been done by a team of newly trained Special Forces from the United Arab Emirates working directly in conjunction with the Mossad. Crowds were being managed by French DGSE agents, seen by the dozen, and British security service personnel were present but their role was not clear."

The Libyan government blames Kadhafi loyalists for the killing of Ambassador Stevens, an indication that he may not have died of asphyxiation. That contradicts the British think tank Quilliam suggestion that al-Qaeda did it citing a video Internet release of its chief Ayman al-Zawahiri, 24 hours before the embassy attack, to avenge US assassination of Abu Yahya. But how could al-Zawahiri coordinate the pastor Terry Jones video-streaming? Whom to believe? We follow the questions: Who benefits and has the means to carry out such an operation? Obama is a big loser, its Libyan adventure in retrospect can now be blamed. The World is a loser as instability has increased. Could Israel be happier with Obama hurt and the Arab-US relations worsen? Obama's been foot dragging on the attack on Iran, while the Arab Spring countries like Egypt have turned to policies more favorable to Palestinians.

Does Israel have the means? Gordon Duff, a Marine Vietnam veteran, a combat infantryman, consultant in international banking, counter insurgency, surveillance technologies, intelligence, defense technologies, and for the UN, writes: "Netanyahu and his US affiliates carefully orchestrated these terror acts with supporters of the Romney camp including the 'donors' responsible for the production of the original film; CIA cooperation in an attack on American diplomats was arranged through Bush era intermediaries who manage contractor firms that are now tasked with all CIA 'black ops'; Netanyahu has been further emotionally destabilized by nearly violent confrontations with US Chief of Staff Martin Dempsey and US Ambassador to Israel Dan Shapiro, a close friend of President Obama's." Why kill the US ambassador? Would there be any impact without such a blood sacrifice?

(Watch Destiny Cable GNN's HTL edition of Talk News TV, Saturdays, 8:15 to 9 p.m., with replay at 11:15 p.m. and Sunday, and on www.gnntv-asia.com: this week "Economics, Money and Gold" with Sonny Africa of Ibon and Hiro Vaswani of KME; tune to 1098AM radio every Thursday 3p.m.; visit http://newkatipunan.blogspot.com)

Cover ups

DIE HARD III

Herman Tiu Laurel

9/14/2012

The greatest cover up in human history of 3,000 years is finally discredited, thanks to the A/E for 9/11 Truth. It's most recent documentary presentation aired unexpectedly by PBS (Public Broadcasting Service), entitled 9/11: Explosive Evidence — Experts Speak Out has become the top watched video over the public TV network funded from sources such as state and local governments, colleges and universities, corporations, foundations and the Corporation for Public Broadcasting (from US Congress). A/E (Architects and Engineering) of 9/11 Truth is composed of 1,500 highly-accredited engineers, architects, scientists, physicists, defense and explosive experts, military officials, 9/11 victims' families and firemen and other rescue workers on the 9/11 scene in, all calling for a new investigation of the 9/11 terror attack.

The 1,500 top ranked scientific analysts point out the discrepancies with science of the official investigation, and protest the blatant violation of law in the destruction of evidence — hundreds of millions of tons of concrete and metal debris carted off to China and melted away, the entire grounds of the Pentagon were covered over with tons upon tons of soil. Only with a handful of debris picked up as mementos by ordinary citizens were later submitted to the A/E for 9/11 Truth, and used for forensic examination leading to discovery of nano-thermite, a military incendiary and explosive in the 9/11 remains. The A/E for 9/11 Truth points out that Building 7, a football field away from Buildings 1 and 2, collapsed at the speed of gravity onto its own footprint, without a plane crashing into it; impossible, from Physics' point of view.

9/11 was the Pearl Harbor for the 21st Century intended to lead to World War III. The US and its defense industry have profited hugely. From 2010 to 2011 alone with expansion of the war to Libya and Syria, and the threat on Iran, the US increased military sales to the Middle East alone from $20 billion to $60 billion. The US pivot to Asia increased sales to Taiwan, South Korea, Japan and even to the poor man of Asia, the Philippines. It is the saddest commentary on the state of mind of so many to accept the US pivot as being in the interest of regional stability and "rebalancing." The 9/11 Terror Attack was a deliberate incident staged to kick off the plan to achieve the Project for a New American Century (PNAC) written by neo-con thinks tanks. Will the plan still succeed with the cover up of the 9/11 "inside job: now uncovered?"

Cover ups are essential for hidden plots of the powerful to succeed. Frequently, the cover up reveals more than the event, as we can see if former DILG Undersecretary Rico Puno had not moved in to "lock down" Robredo's condominium unit where apparently delicate papers were. If not for this suspicions of foul play, it would not have become as prevalent today among ordinary citizens. I had brushed off speculations of foul play when it was first suggested, but with the scandal of the unseemly hurried cordoning off of Robredo's papers and the even more unseemly defense of Puno by the Chief Executive of the land, BS Aquino III, the Pandora boxes of questions are now opening in full glory. Speculations now abound, such as the contention now that the ill-fated light plane was arranged by Puno and now by Robredo himself.

One question leads to another. Now inquisitive minds and media are revealing new questionings, such as the chockfull of guns imported for the PNP violating government procurement procedures and authorizations. Investigation will be conducted by the Senate, which may be all for show but will stoke more speculation. Despite these, BS Aquino III is reaffirming his trust and confidence in Puno, appearing to the public as a futile attempt to stop speculations and covering up for the actions of Puno. BS Aquino III's damage control appears to be doing more damage to him that will contribute to his final collapse.

One approach to covering up is diversion. The Meralco and ERC charge against Psalm (Power Sector Asset Liabilities Management) of P9.1 billion over charging is an example. Psalm's overcharging had been known since 2010 and caused the public two years of unnecessary payments and actual loss amounting to P9.1 billion. By diverting focus to Psalm, Meralco and ERC cover up their continued unjustified rate increases, slow and deceitful refunds of their own such as the P 30-billion refund of 2003 which is being taken from consumers' payments and not from the equity of Meralco, so consumers are paying the refund themselves, the 900 percent overprice of asset base items, ad nausea. But, as in the 9/11 attack, in the Robredo case, and in all cover ups, the truth will out. It's only a matter of time.

(Watch Destiny Cable GNN's HTL edition of Talk News TV, Saturdays, 8:15 to 9 p.m., with replay at 11:15 p.m. and Sunday, and on www.gnntv-asia.com: this week "Power, Water: the Struggle"; tune to 1098AM radio every Thursday 3 p.m.; visit http://newkatipunan.blogspot.com)

P91-B Double Charging

PEOPLE'S STRUGGLE

Herman Tiu Laurel

9/10-16/2012

THE dispute exploded into the public scene last week as Meralco grandiosely announced that PSALM (Power Sector Asset Liabilities Management) owed Meralco customers a P 9.1-billion refund for double charging in transmission line costs.

PSALM countered, saying that Meralco's charges are "unfounded and at best, premature considering that the final amount is yet to be determined after the ERC approves the implementation of a refund or collection scheme on compliance of the parties with the directives of the regulatory body". In the first place, this overcharging has the consent of the Energy Regulatory Commission (ERC) based on its issuances of provisional and various automatic increases in power rates.

They're all to blame
We wrote about the ERC's practice of approving rate increases posthaste with promises to review later ("True up or Throw up", August 8-14 issue). "Under recoveries" or "over recoveries" or "over under recoveries" are decided, but they're always charged to consumers first. This is what happened in the Meralco vs. PSALM dispute. Consumers already paid. The confusing "recovery" terminologies came with EPIRA and the ERC's "PBR" – Performance Based Rate mechanism allowing 15.6% profit margin plus incentive that can reach to 17%. Before the PBR in 2004 we had the RORB, Return-On-Rate-Base limited to 12%. The crucial difference is not only the cap on profit but, as Jojo Borja of Iligan Light and Power Inc. again reminds me, the automatic "pass on" of generation increases under the PBR which was never the case under the RORB.

One of the key factors is the WESM, Wholesale Electricity Spot Market, which allocates power contracts amongst the IPPs and PSALM to ensure that every "investor" gets a "fair" share of the power supply contracts – and never mind if it's not fair to consumers and taxpayers. WESM "spot" market prices have gone as high as P60 to P 70/kWh when Napocor rates can in the same period hover just around P5/kWh. DUs like Meralco pass it on and ERC does nothing about it.

Gibberish
PSALM CEO Emmanuel R. Ledesma Jr. explained "… that the alleged double charging in transmission line costs arose out of the simultaneous implementation of the transition supply contract (TSC) between National Power Corp. (Napocor) and Meralco and of the price determination methodology (PDM) in the wholesale electricity spot market". i.e. the WESM. Ledesma continues, "PSALM cannot deviate from either until an effective segregation mechanism from Philippine Electricity Market Corp. (PEMC) is approved by the Energy Regulatory Commission (ERC)," More gibberish: "PEMC (Phil. Elec. Market Corp., the Board of WESM) earlier commented that 'the segregation of line rentals into transmission loss and congestion cost … of the WESM would entail reconstruction of hourly data … would cause considerable strain in its resources." Gibberish again. PEMC and WESM are parasites.

The ERC portrays itself as the solution: "Energy agency to decide on P9.1B controversy", a September 5 headline reads. The truth is ERC is the main part of the problem for completely failing in its regulatory duty, overlooking the double-charging and allowing it to fester for two years causing great damage to consumers. This is clear in this report, "The ERC, in a decision dated March 10, 2010, already found a 'double charging in transmission line costs.'

But compliance by various parties involved was incomplete as some of the data needed for the computation were no longer available…" If ERC had found "double charging" way back in the first quarter of 2010 or over and a half years ago it should have acted swiftly to save the public the billions of pesos. ERC's superfluous explanations excuses today are more unnecessary gibberish.

Meralco refunds due
Every power consumer should be pressuring the authorities and Meralco posthaste to refund what it owes to consumers. The 2003 Meralco refund of P 30 billion to consumers for an illegal "provisional increase" in 1994, ordered by the Puno Supreme Court, is supposed to be completed by 2015; but the critical question crusader Butch Junia has raised is the question of where Meralco is drawing the funds for the refund. Meralco should have paid the refund from its equity and not from the cash flow from the payment of Meralco power consumers; otherwise it would be the consumers paying the refund to their selves. Junia has more to tell consumers to demand from Meralco.

Meralco should immediately refund the P 14-B it gypped from Napocor when it reneged on its supply contract with it, which Meralco now wants to conspire with Napocor to pass on to consumers. Consumers however should demand P 42 billion on top of this P 14 billion because of interests and write offs Meralco finagled in its negotiations with Napocor to settle the matter. Mang Naro Lualhati, one of those who won the P 30-B refund for all consumers in 2003 demands that Meralco refund close to P 40-B in the 100% overprice of the Maximum Average Price (MAP) ERC approves for Meralco of P 1.60/kWh which, by Lualhati's (an accountant) computation should be no more than P 0.90/kWh. Mr. Jojo Borja of Iligan Light is charging Meralco of overpriced asset bases such as electric poles, transformers and sub-station, inflated by as much as 500% to 900% - all this documented.

Meralco should also refund the P 2.2-B "regulatory liaison", a budget that Meralco and ERC has never explained to any degree of satisfaction. Butch Junia also points out the P 14-B refund Meralco owes the public which was discovered when the Commission on Audit (COA), was ordered by the 2003 Supreme Court to test audit two years of Meralco's operation (2004 and 2007, if my memory serves me right) and found in just one year test audit P 2.7-B overcharging. Projecting from that result the P 14-B is the sum total. The Meter Deposit Refund (MDR) is also a gigantic amount. Decided since 2004, it was mandated to start in 2008 and to be completed within five years, consumers should be checking if this has been on schedule; it must be asked if interest was charged on this meter deposit, and paid to the consumers.

Solution
The Filipino taxpayers and power consumers are beset by the "highest power rates in the world". In 2003 the Puno Supreme Court made milestone decisions to support the citizen crusaders cause against the power rate abuses of Meralco, by affirming the primacy of the 12% Return-On-Rate-Base (RORB), disallowed Meralco from charging its income tax to customers, ordered a COA audit of Meralco finding billions in overcharging. Government never followed through with the 2003 SC decisions. ERC, distorting EPIRA's ill-conceived license for it to formulate rate setting methodologies, set up the PBR (Performance Based Rate) upping to 17% allowable profit margins for the Distribution Utilities like Meralco ) and establishing "automatic increases" on power generation and passed on to consumers.

Ten years of power crises have educated the Filipino people in the evils of the EPIRA and the conspiracy of the power oligarchs, the politicians and the ERC. There is so much more for the public to learn, such as what WESM, the PEMC, PBR, MAP, ARR ad nausea but it should all be simplified: the EPIRA and the PBR are the root evils, they must be junked.

 Malacañang must be blamed squarely, then Congress, for not doing anything about this. The people must push for the repeal of EPIRA and reversal of the PBR. If needed the people must take action in the streets, the Internet, the social media networks, and media. The Freedom from Debt Coalition (FDC) is launching a series of activities in October which we should all support; we will announce these in due time. Our comrades in Mindanao, like Jojo Borja and Louie Corral, are doing their share. The solution to the power abuse lies in the People's Struggle.

Russia, Apec and RP

DIE HARD III

Herman Tiu Laurel

9/10/2012

While the US pivot back to Asia early 2012 has stirred controversy over its militaristic tone, another major power has been pivoting positively. Russia is emerging with its own "look East" policy, purely on trade terms aiming to expand trade with the region by "about 50 percent" in the coming years. This target was expressed way back in Moscow in a speech on Aug. 27, Deputy First Prime Minister Igor Shuvalov. The pivot East of Russia fulfills the vision of the double-headed eagle state emblem of Russia with one head facing West and the other head now clearing its vision of its view of Asia. Russia can indeed in the 21st Century, bridge the perspective for the entire World; filling in for the blind spots. Its pivot can be the fulcrum balancing West and East, supported by its economic clout with the globe's largest deposit of oil and gas now beginning to be tapped.

This year's Asia-Pacific Economic Cooperation (Apec) forum was opened in Vladivostok by Russian President Vladimir Putin. The international cable TV news carried the grand opening and parade of heads-of-states to the easternmost city of the only country in the world that covers 11 time zones. A look at the Atlas to behold the entire expanse of Russia shows a breathtaking panorama of territory, as impressive as the grand and impressive edifices built by Russia for the Apec meet. With its recent entry into the World Trade Organization, despite some misgivings today in the world about trade globalization, Russia signals its readiness to face the challenge of global economic competition while promoting its own economic interests and spreading its goodwill particularly with the nations of the East.

Russia's pivot East is palpable in the Philippines, as we witness greater Russian presence in local media, increased activities such as the visit of Russian artist early this year to its grand National Day celebration. We saw this in the special briefing in the Russian embassy arranged for some journalists on the occasion of the Apec summit in Vladivostock. One significant manifestation is the assignment of a Commercial Counselor at the embassy after years of absence. Although a permanent trade mission had been around for some time we hadn't met any trade counselor in the past years. We were introduced to Andrey Sapozhnikov who's been in Manila for six months now, and in our briefing we were read some statistics showing dramatic increases in trade with the Philippines in the past year; they're small compared to trade with traditional trading partners but a huge leap compared to Russia-Philippines trade the past decade. The deputy chief of Mission, Minister-Counselor Artem Kudoyarov also joined us in the briefing, engaging us in a very lively discussion of trade possibilities and the merits and demerits of Apec, compared to BRICS and the TPP (Trans-Pacific Partnership).

At the special briefing counselor Saposhnikov read an official document pertaining to Russia's policies and activities relating to Russia's chairmanship of the 2012 Apec, citing 100 events since Jan. 1, including ministerial sessions, meetings of senior officials, committees and task teams, seminar and conferences, 50 initiatives and blueprints proposed by the Russian government. All these, Sapozhnikov stated, "…encompassing four priority spheres — trade and investment liberalization and regional economic integration; strengthening food security; establishing reliable supply chains; intensive cooperation to foster innovative growth." We do not have space to list all but especially interesting is Russia's support for "joint efforts aimed at the formation of the single educational zone within Apec region," a very interesting program we should now more about.

Simultaneous with the 2012 Apec is a 2012 Youth Apec which was initiated by Russia Prime Minister Dmitri Medvedev earlier. I found this out on the Internet. Its main goal is to show that young people are able to discuss serious problems and decisions and should be heard. The three days of discussions came up with the Apec Youth Leaders Declaration to be presented to leaders of Apec. The Youth meet depicts the ideal World of tomorrow, all nations around the Pacific rim working together towards economic prosperity and peace. At this writing the main Apec forum is on its last day and no final declaration has been issued but the messages during the summit is a good indication: from leaders such as Putin and Hu Jin Tao, admonitions about the perils of the protectionist temptations and calls for the calming of tensions in Asia. These are positive signals we welcome.

Russia and President Vladimir Putin has certainly pulled off an impressive show of leadership in Apec 2012. I rate this performance at par with China's hosting of the 2008 Olympics, in setting the stage for the respective nations' role for the 21st Century World. Russia is here to stay as a major economic and political power on the World stage, and the Philippines and Filipinos should take note and recognize the third major global power that will be among the major factors to enhance the progressive future of the region and the country — Russia, alongside China and the US.

(Watch Destiny Cable GNN's HTL edition of Talk News TV, Saturdays, 8:15 to 9 p.m., with replay at 11:15 p.m. and Sunday, and on www.gnntv-asia.com: this week "Power, Water: the Struggle"; tune to 1098AM radio every Thursday 3 p.m.; visit http://newkatipunan.blogspot.com)

A creeping containment

BACKBENCHER
Rod P. Kapunan
9/8-9/2012



Maybe it is high time to remind US Secretary of State Hilary Clinton that China is the only great power to fight the US yet comes out to exert an even greater influence in world politics. Unlike the great powers whose influence have either been reduced by defeat as Germany and Japan, or imploded in the aftermath of internal political retraction as the Soviet Union, China fought the US in a bloody but limited land war in Korea. Yet it is about to emerge as the greatest economic power of our time.

China's entry into the Korean War in 1950 has put a dent on the image of the US as an invincible superpower. The country whose huge army was derisively called "pajama-clad soldiers" was the first to deny the US its trophy of victory. The Korean War ended in the signing of an armistice agreement on July 27, 1953. It was not peace brought about by victory or one negotiated to end the conflict, but a temporary cessation of hostilities.

Although it was North Korea and the US that signed as principal parties to the armistice agreement, the world knew it was the result of an agonizing realization by the US that it was locked in a fierce stalemate with no hope of victory. Pouring in an insurmountable number of troops to fight alongside with their North Korean allies, the People Liberation Army in no time pushed the allied forces to the fringes of South Korea. Many anticipated it as another Dunkirk with the humiliated American soldiers about to wade their way to Japan.

The early optimism of General Douglas MacArthur to cross the Yalu River ended up in disastrous retreat. After the Inchon landing where the US forces rapidly advanced, that was soon reversed after Chinese troops pushed US troops far below the 38thParallel. That victory, though paid with a heavy price, left a deep scar into the unblemished record in American military history.

To repair his badly tarnished image, General MacArthur proposed the idea of using an atom bomb to destroy China's industrial plants in Manchuria and carpet bombing the supply lines for the Chinese troops that were advancing like swarm of ants. Unfortunately, that arrogance was not shared by US President Harry Truman, thus forcing him to unceremoniously sack the aging Commander of the US Forces in Korea.

We are compelled to give this backdrop to remind Clinton that while China cannot militarily match the US, its armed forces have been modernized by quantum lead. The army that once walked in snickers to cause the US to nosebleed in Korea could usher in an even devastating damage to the US forces in the whole of Asia in the event of another conflict. It is for this why the US is trying to avoid direct confrontation with China over the disputed islets in the South China Sea.

The problem with this duplicity in the US policy is it cannot pursue a neutral position while marshalling the members of the Asean to ratify the Code of Conduct for the South China Sea that could technically place them on a direct collision course with China.

First, not all the members of the association have territorial claims in the South China Sea. This explains why Cambodia refused to come out with a final communiqué in the recently concluded Asean ministerial meeting in Phnom Penh.

Second, the member-countries are aware that the association is not an ideological bloc, but an economic bloc which has succeeded in institutionalizing many of their declared policies. Formally integrating the disputed territorial claims in the South China Sea into their agenda could transform the economic bloc to a political forum that could be exploited by non-member countries like the US.

Third, not all Asean-member countries share the same ideological sentiments to unify them, viz. ratify the proposed Code of Conduct. Their primordial concern is on how to develop further their trade ties and explore the possibilities of welcoming Chinese investments.

Fourth, for the fact that the US is the one brokering for the early ratification of the Code of Conduct, that endorsement has backfired. Right now, it is perceived as a Trojan horse. Once ratified, it could automatically convert the dispute to one between China and the Asean with the bloc playing proxy for the US in containing China.

Fifth, to ratify the Code of Conduct could spell an end to an illustrious economic bloc. Either it could disintegrate due disuse or could signal the revival of an arms race. The price they will have to pay to subsidize the ambition of the US and its surrogate states, like the Philippines, is too high for the brisk trade they now enjoy with modern China.

Sixth, Asean today stands as the most successful regional bloc in the whole of Asia. Many of its economic agenda have been institutionalized and integrated as part of the member-countries' economic development goals. That feat could easily be set aside by the conversion of Asean into a highly politicized regional bloc.

As of now, the US is the one heavily profiting from the increased tension as seen in the steep purchase of military equipment by the Philippines that could not even tip the scale to alter the balance of power in the region. Instead its limited resources will be dissipated, while in the meantime, the US takes advantage to advance its economic interest in dealing with China.

Finally, a direct confrontation now with China could be far costlier and more devastating for the US. A second round confrontation is something even the majority of the Americans would wish to avoid.

rpkapunan@gmail.com

9/11: 2001 to 2012

DIE HARD III
Herman Tiu Laurel
9/7/2012



The New Year's Eve celebration on Dec. 31, 2000 was drummed up as a very special one.  Man's history was turning not just another year but another century and a new millennium. The year 2001 would begin a new hundred years or century, and 10 of that would end in a New Year's Eve bang toward 3001. Hopes were high in the world as the decade before had been one of massive historical shifts with the end of the Soviet Union and with China's detour toward market-oriented reforms.

But in the Philippines, just 17 days into 2001, a coup against the "dropout" President Estrada was carried out — one that installed an "economist" promising reforms in the form of a diminutive Gloria Arroyo. In the US, too, another change was in the offing as George W. Bush was sworn in as president on Jan. 20 after much electoral and legal wrangle.  In both instances, mainstream failed to read the creeping malevolence beneath the stage-managed "euphoria."

Bush, for one, set the tone for the 21st Century by denouncing the "Axis of Evil" of Iran, Iraq, and North Korea — none of which, it must be stressed, ever invaded his country. Seven years later, Gen. Wesley Clark, in a speech to the Commonwealth Club in Frisco, described what he viewed was "a policy coup" in the weeks after 9/11 by neocons Dick Cheney, Don Rumsfeld, Paul Wolfowitz and "a half dozen other collaborators from the Project for a New American Century" revealed to him by a fellow officer who said: "We're going to attack and destroy the governments in seven countries in five years… We're going to start with Iraq and then we're going to move to Syria, Lebanon, Libya, Somalia, Sudan, and Iran."

Iraq has been demolished into perpetual "suicide bombing" of Sunnis, Shi'ites and Kurds against each other; Afghanistan became a necessary sequel to 9/11's "Hunt Bin Laden" drive; Libya has been reduced to a militia nation; while Syria is being wrecked to open the way to Iran. In the Philippines, the tone for the decade was set by Gloria Macapagal-Arroyo's speech at the Yellow crowd's coup-plotting Council of Philippine Affairs (Copa)'s fête with military and police generals, "civil society" leaders and media — her co-conspirators in the Edsa II coup. As that "rule of force" of the elite was set in place, the economy and bureaucracy were carved up by power blocks, with the military generals getting their "pabaon" and civilian posts, and the elite getting P10 trillion in profits over the decade (as reported by Arroyo economic adviser Joey Salceda).

Gloria then got the Philippines onboard the "Coalition of the Willing" of Dubya and joined the carnage in Iraq until overseas Filipino worker truck driver Angelo de la Cruz was kidnapped by the Kaleed bin al-Waleed Brigade and later returned in exchange for the withdrawal of the Philippine contingent. Now Arroyo is in and out of prison, spat upon by the Yellow crowd.
Marking the decade, the "War on Terror" has provided justification for the US and global campaign to enforce the "national security state" in US-dominated parts of the world.

Domestically, the US established the Department of Homeland Security. US TV now has a series called "Homeland" about a colonel turned Arab DPA terrorist and a CIA lady out to catch him. "Terror" has led to the reviled TSA (Transportation Security Administration) "total pat down" of airport travelers that includes the grabbing of crotches. In Iraq, the consequence is over a million civilian deaths; a figure the Los Angeles Times reported as far back as 2007. Total Afghanistan war casualties are estimated at 50,000 while Pakistani civilian deaths from US-Afghan drone attacks, suicide- and IED-bombings have reached 35,000. The War on Terror also gave impetus to the numerous anti-money laundering laws in the world.  All these are thanks to Bush and Nobel Peace Prize awardee Barack Obama.

The Sept. 11 tragedy was the most powerful event in television history, according to a new study released Wednesday by Sony Electronics and Nielsen surveying 1,077 American adults — the most "universally impactful" televised moment in 50 years.  
Yahoo reports: "To measure impact, Nielsen and Sony created a score for each event derived by the number of people who viewed the event live, the number who could recall details about where they were during the occurrence, and the number who could remember discussing what happened with others." Conversely, surveys have also been made of what citizens think of the connection of 9/11 to the notion of a conspiracy. In 2006, Zogby Polls found that over 70 million Americans distrusted the official government investigation of the event and supported new investigations. Today, activist Alex Jones reports a survey by Gok NOP with the BBC finding 14 percent of Britons and Americans believing the US government staged the 9/11 attack.

I believe all the evidence that point to the 9/11 World Trade Center (WTC) attacks as an "inside job," with the neocons at the helm (watch YouTube, Architects and Engineers for 9/11 Truth; Experts speak out). A third building (WTC 7), never hit by a plane and a football field away from WTC 1 and 2, later also collapsed on its footprint at the speed of gravity (i.e. free falling to the ground with no resistance from the floors below). While they have fooled 86 percent of Americans even after 11 years, the ruling cabal, Virginia, can have that fantastic degree of control of events, but truth will always out.

Now, would you wonder why BS Aquino III would defy an alliance with the Catholic Church bequeathed by Cory Aquino on the Reproductive Health bill?  That's Uncle Sam's order, you see. Only a fool would defy it at the risk of Hocus PCOS being exposed by Uncle Thomas.

(Watch Talk News TV with HTL, Saturdays, 8 to 9 p.m., with replay at 11:15 p.m. and Sundays, on GNN Destiny Cable Channel 8, this week, "9/11 Inside Job;" visit http://newkatipunero.blogspot.com)

MRT re-privatization

DIE HARD III
Herman Tiu Laurel
9/3/2012



Last time we summarized the decade-and-half experience of the BLT (Build-Lease-Transfer) MRT III contract, a history of swindle is continuing to this day. It began with tying the country to paying "subsidy" of P7 billion annually to the guaranteed profits of the original "investor consortium" of 15 percent per annum, a margin on the basis of super-bloated fares based on P60 from its South end at Taft to its North end at North Triangle, Quezon City. Then the latest phase: the re-transfer of the privatized project back into the hands of government with the buyback by the past Arroyo administration of the project which tried to avoid the increased financial burden imposed by another consortium led by powerful Goldman Sachs sued government. Now the dilemma is how to raise fares without triggering a commuters' revolt, in order to re-privatize it more profitably for the new corporations competing to take over.

Last August then DoTC Secretary Mar Roxas announced from out of the blue, the MRT 3 fare hike in 2013. That was perplexing as 2012 still had one whole quarter to go. There was no immediate trigger to cause concern in the MRT 3 issues. After seeing the rapid movement of Mar Roxas to the DILG portfolio taking over from the tragically fated Jessie Robredo and the appointment of an Aquino-Cojuangco loyal coattail hanger-on Rep. Joseph Emilio Abaya did possible explanations emerge. The inordinately early announcement of the MRT 3 fare hike for 2013 was to commit the DoTC to that fare hike and ensure that the new appointee to that post will have no more responsibility in defending that policy position. Roxas also announced that further public hearings on the issue were no longer needed and would not be called, freeing the successor to just implement the policy in 2013.

Roxas' MRT 3 fare hike announcement came five days after the loss of Robredo's plane, by that time his fate was already known. A case can be made that the preemptive announcement of the 2013 MRT 3 is connected to the sudden vacancy created in the top seat of the DILG. It was seen as the opportunity to ensconce the anointed Liberal Party 2016 candidate, and to concretize the down-to-baranggay control in preparation for the 2013 and 2016 elections. Several birds were hit with the move after Robredo's plane went into the sea like a big, gravity weighed stone falling from the sky. So much for the hero treatment for Robredo, from this perspective it was more like a hero-sandwich for the partisan political appetites of the Liberal Party plotters. Robredo was not a Liberal puppet because he was more a US puppet in the "civil society" crowd.

It was inexplicable why Robredo stayed on as long as he did in his post at the DILG despite BS Aquino III's zilch-heartedness to his confirmation, or why BS Aquino III appointed him in the first place if he was not going to cement Robredo's authority in the post. Aquino's zilch-heartedness for Robredo is also as clear in the delegation of authority over the police to BS Aquino III's beloved Rico Puno. In this country the only power greater than the presidency itself, though couched in diplomatic cloak and democratic language, is the US Embassy. Robredo is associated with the Magsaysay Foundation crowd, with the whole "Kaya Natin" of Robredo, Padaca, Among Ed crowd and the Kennedy School of Government clone Ateneo School of Government network of Harvey Keh and the Jesuits. With Robredo gone the Liberal Party faction of the Yellow movement moved their chess pieces forward.

Back to the MRT 3, ensuing from the MRT 3 2013 fare hike will be its re-privatization to a new private corporation or consortium. Why are we certain that a private corporation will be taking over after the fare hike? Because that's been announced over and over again, as in this headline by Paolo G. Montecillo of Jan. 25, 2012 reports, "MVP unit to assert right over MRT 3 deal." MPIC and MVP got this right by taking over into the company that signed the MRT 3 BLT contact with FVR — the MRT Corp. MVP's spokesman said, "it is a proposal by MPIC pursuant to the expansion rights granted to MRT Corp. under the existing BLT agreement with the national government," and MVP wants a 15-year extension with that.

Mar Roxas' fare hike will add P2 billion to the revenues of the MRT 3, and whichever companies are in on the re-privatization they will wallow in the P2 billion, plus the P5 billion continuing "subsidy" to the guaranteed profits based on the overpriced P60 fare. MVP said that  "under MPIC's proposal, the company would spend $300 million to improve the system's operations and expand its capacity." But Mar Roxas' fare hike already guarantees P2 billion or $40 million in revenues, more than enough for improvements. Again, the Filipino taxpayers and MRT commuters will be made to feed the increasing profits of the oligarchs and predatory corporations.

(Watch Destiny Cable GNN's HTL edition of Talk News TV, Saturdays, 8:15 to 9 p.m., with replay at 11:15 p.m. and Sunday: this week "9/11 Inside Job"; visit http://newkatipunero.blogspot.com)

MRT: Serial swindle

DIE HARD III
Herman Tiu Laurel
8/31/2012



Two weeks ago, in the midst of the Robredo plane crash frenzy, the Department of Transportation and Communications (DoTC) Secretary Mar Roxas announced, "Expect MRT fare increase in 2013," adding that, "It will be unfair for the areas in the provinces if we continue to subsidize Metro Manila as we have done so for the past 10 years," arguing, "It seems that there is a fairness issue here.  The money… can be redeployed to the countryside…" It rankles me whenever my intelligence is insulted by such ruling class ilk as Roxas who blames the people as "spoiled" for expecting low rates in public utilities, then pit metropolitan and rural Filipinos against each other to obfuscate.

From the time the BS Aquino III government debuted, it was clear that the party in power — courtesy of Hocus-PCOS — would be raising all public utility rates even if unnecessary and unjust.  Roxas' ilk, for one, has been broaching up to 200 percent fare increases since 2011. Only public indignation has kept the wolves at bay so far.

From three years of confirmed analyses, public statements of groups like the National Consumer Council of the Philippines (NCCP) that dialogued with the DoTC staff, and tracking of business news developments, it is clear that the MRT/LRT are not operationally losing propositions. What Roxas and his ilk claim as "losses" of these projects are not operational but financial costs. In all, Roxas and his cohorts in the oligarchy, in connivance with their captive politicians, particularly Fidel V. Ramos and Gloria Arroyo, are the culprits.  Thus, it is imperative to review the project histories to see through the lies.

We will focus on the MRT at this point, which is a project built by private "investor" groups  which proceeded to "securitize" the project based on the extremely "diabetic" sweetheart deal granted to them by FVR. First, the group obtained a very mind-blowing passenger load guarantee of hundreds of thousands daily based on up to P60 one-way fares signed by FVR in the mid-1990s. With this fantastically attractive contract and lucrative cash flow promised, the investor group then collateralized these to obtain funds for the project. The transnational banks and investment companies, in turn, took their pound of flesh from the fat terms the investor group got.

However, as things progressed, the time bombs in the contract began to show, as the original high fares of the MRT based on a passenger load of 20,000 daily could not even be attained, which guarantees meant that government still had to pay the investor group the exorbitant contract costs — including the horrendous financial burden from the deliberately unrealistic and one-sided terms in favor of the investors.

It then became clear that the so-called subsidy of government is going neither to the MRT operations nor to the commuters. And since the major cost of the MRT is due to the financial burdens foisted on the people from the serial swindle by the oligarchs and Ramos, the subsidy has always been going to the investor group or consortium (aka the oligarchs) and their financial brokers.

Erap partially solved the problem in 1998 ("Erap orders high fares for Edsa-MRT reduced"), which the Makati Business Club, et al., not surprisingly, frowned upon. But, too bad for them: As fares were cut from a high of P60 down to P20 for a round trip, passenger count rose from 20,000 to 200,000 and kept rising until today's high of up to 700,000 daily, cutting government subsidy to the consortium's financial exactions. The oligarchs, however, are not to be outdone.  Arnold Padilla in his Web site, "A Radical's Nut," cited DoTC and MRT officials' admission that 85 percent of the cost of the MRT today is the constantly growing financial burden by the wheeling and dealing of the oligarchs who sell and resell ownership of the projects, as well as the profits made at each stage.

The latest in the serial swindle is the MRT sale to Goldman Sachs and then to the another Group. The MRT investor-consortium had a 25-year Build-Lease-Transfer (BLT) agreement with the government, which would pay Equity Rental Payments (ERP) guaranteeing a 15-percent per annum return, as well as a maintenance fee and recovery of taxes.

In 2002, the MRT consortium members, securitized their share of the ERPs by issuing MRT III Funding Corp. (MRT3FC) bonds and shares sold to outside investors for an advance payment.  With the securitization, MRT3FC had a 77.7 percent share, Another investor, 19.9 percent, and minorities 2.4 percent. But as government had difficulty with a lease due to the financial burden, the private investor subsequently sold its interest to Goldman Sachs. Goldman Sachs and partners then sued government for $230 million, forcing the Arroyo administration to buy back bonds and shares through the Development Bank of the Philippines and Land Bank. These government financial institutions extended a $180-million loan to Global Air Services (GAS), an offshore company with $2 in capital and $400,000 in losses. GAS turned out to be a shell company which offsets the loan against the purchase price.

Then Department of Finance (DoF) Secretary Gary Teves, now director of Atok Big Wedge and Alphaland, said the deal saved the country $380 million on MRT ERPs against the cost of the buyout, when the money was actually used to buy out Goldman ($64.5 million), Presidio Capital ($26.5 million) and Ashmore ($87.6 million).

That was another layer of "transaction costs" ($3.6 million of "fees" and profits of Goldman et al.) that these parties added on the MRT, which financial burden Roxas and BS Aquino III now want to blame and impose on faultless MRT commuters.
If Roxas gets his way and raises the fares, it will be ready for the picking again by another oligarch, whose re-privatization takeover has been in the works since 2011 — a neat last chapter indeed to the serial swindle story!

(Watch Talk News TV with HTL, Saturdays, 8 to 9 p.m., with replay at 11:15 p.m. and Sundays, on GNN Destiny Cable Channel 8, also available on the Internet at http://www.gnntv-asia.com, this week on "MRT: Welfare for the Rich, Burden for the Poor;" visit http://newkatipunero.blogspot.com)

Sereno's record

DIE HARD III
Herman Tiu Laurel
8/27/2012



The appointment of Maria Lourdes Sereno as Chief Justice (CJ) lends new luster to reports of her legal opinion on the controversial Hacienda Luisita (HLI) case in 2011: "Only Associate Justice Ma. Lourdes Sereno, the President's first appointee to the high court, believed that the compensation must be pegged at the Jan. 2, 2006 rate."  That's the highest amount of compensation, totaling P10 billion, for the 4,915-hectare estate of the Aquino-Cojuangcos of BS Aquino III, which Luisita farmers obviously would not be able to afford.

The Supreme Court (SC) majority — in stark contrast to Sereno's view — based the valuation on 1989 figures, or P200 million for the entire estate, when the HLI stock option plan was implemented (and now declared illegal). Sereno's 18-year-long stint in the Judiciary, most especially these times under Aquino and the Yellows, will necessarily be colored by the legal interpretations she has made in the past. Will she ever shake off the stigma? This is the very situation that the SC petition of Adaza-Paguia-Borja-Laurel et al. (including the Tribune readers who sent in contributions for its filing in July) sought to avoid by questioning the constitutionality of the presidential appointment of the CJ.

A careful reading of the 1987 Constitution shows no provision empowering the President to appoint SC chief justices. Based on our (supposedly) democratic system's fundamental principles of "checks-and-balances" and "separation of powers," requiring an "independent Judiciary," the CJ ought to be elected by his or her peers. Even as the high court under Acting Chief Justice Antonio Carpio (who was chosen so by peers) finally issued a denial of our petition based on jurisprudence (past decisions), a Motion for Reconsideration is being prepared.  From my layman's interpretation of our counsels' position, where a clear constitutional provision was pointed out, jurisprudence should not be the basis for judging on the issue.

Else, a cloud of doubt will forever hang over any SC Chief Justice appointed by the Chief Executive hereon until the petitioners' issue is resolved satisfactorily.

It is already the impression of many people that the appointment of the new CJ also has a political agenda, involving the presidential elections of 2016.  Things are turning out to be a "Corona affair" all over again as politically charged parties clash over decisions of a chief magistrate that is seen to be beholden to the appointing power and serving as his political hatchet-person.

The partisan political angle, however, is not Sereno's only problem.  From consumer protection advocates in power, water, and other public utilities, where the oligarchy's power and control prevails over public regulatory agencies, specifically with regard to Energy Regulatory Commission (ERC) and Manila Electric Co. (Meralco) abuses, Sereno will be remembered for her total lack of sympathy for the people and her blatantly pro-power oligarchy sentiments. We wrote this in 2011 about the SC siding with both the ERC and Meralco on a 2009 P0.29 per kilowatt-hour rate hike petition on purely technical procedural grounds: "It makes everyone wonder whether PeNoy's first SC appointee, Justice Lourdes Sereno, really appreciates the substantive issue of Salus populi est suprema lex (The welfare of the people is the supreme law) when she, as ponente, faulted consumers, saying, 'They should be more vigilant in protecting their rights.'  And since consumer advocates have to pay for their own fares; solicit volunteer legal representation; and plod through deliberately obfuscated ERC rules and rulings, how can Sereno still claim that we consumers have been remiss?  We, therefore, have to ask this of the SC, the supposed last bastion of the people's hope for justice, which championed public welfare in 2003 by confirming the Return-on-Rate Base (RoRB), as well as vetoed the charging of corporate income tax to consumers and ordered the Commission on Audit (CoA) to sift through the books: Has it now been captured, too?"

In 2012 we wrote that "Sereno was ponente to an SC Second Division decision junking consumer protection groups' petition for a temporary restraining order (TRO) against the 26.9-centavo Meralco rate increase and its overcharge beyond the 12-percent RoRB affirmed by the SC in 2003, on the basis of the ERC's violation of the consumers' right to due process in refusing consumers opportunity to present their opposition. Though the high court… admitted that the ERC 'prematurely' issued the assailed decision 'since the period for the petitioners to file their comment/opposition had not lapsed then,' Sereno (as ponente) still decided against the consumer groups … in contrast to Meralco, which the ERC allowed to charge consumers its two dozen lawyers at the hearing and its P2.2-billion 'regulatory liaison' fund…"

For ordinary folks whose concerns revolve mainly around government greed and corruption, let's recall Aytch de la Cruz' 2011 report calling BS Aquino "to check on the (CoA) records where it will definitely show that the Manila International Airport Authority (MIAA) funded the $50 million (almost P1 billion) legal fees, which were in turn received by the government lawyers, among whom were retired Justice Florentino Feliciano and then lawyer Lourdes Sereno, now an associate justice who was rewarded with the high court post by Aquino, who claimed it was she who had won in the (Philippine International Air Terminals Co. Inc. International Chamber of Commerce) case against government..."

To date, Sereno has never satisfactorily explained this "windfall" from government funds when asked about her Statement of Assets, Liabilities and Networth.

And that is the kind of record the Yellows are so proud of?

(Watch Talk News TV with HTL, Saturdays, 8 to 9 p.m., with replay at 11:15 p.m. and Sundays, on GNN Destiny Cable Channel 8, this week on "Power and Economic Justice and Nationalism" with former CJ Reynato Puno and KME chairman Jimmie Regalario; visit http://newkatipunero.blogspot.com)