CONSUMER'S DEMAND
Herman Tiu Laurel
8/15-21/2011
Finger-pointing is again the order of the day.
Not long after Senator Tito Sotto challenged his colleagues Kiko Pangilinan and Franklin Drilon, believed to be two of the original collaborators of Gloria Arroyo in the cheating of 2004, to finally come clean by dropping their pretensions, was his subsequent collaboration with the alleged cheating mastermind to partake of the corrupt system also laid bare.
Similarly acting blameless while lambasting the cheats today, many of those in media were themselves part of the propaganda blitz that sustained the series of cheating and cover-ups well into 2007 and 2010.
This pattern of holding elections suffused with cheating, then eventually making an exposé out of them, has become a deftly-staged zarzuela of focusing only on the subsidiary corruption in politics to distract the people from a totally debased political-economic order.
As a result, the economic and financial corruption, particularly of the parasitic elite, is missed by many.
The past months, we built up a case against the Bangko Sentral ng Pilipinas (BSP) and the Department of Finance (DoF) for their seriously corrupt financial policies of keeping the country in debt despite the financial surplus afforded by our decades-long OFW remittances.
Such an anomaly was gleaned from the Special Deposit Account (SDA) amounting to P1.5 to 1.7 trillion and the Gross International Reserves (GIR) which total $70 billion today.
Purisima affirmation
After some controversy with BSP Deputy Governor Diwa Guinigundo over the issue, an unexpected affirmation of our position came from none other than Finance Secretary Cesar Purisima who publicly favored “the unwinding of the SDA,” which entails the reduction of interest rates to facilitate the fund’s release for domestic investments.
In fact, an Aug. 3, 2011 Manila Bulletin news story by Chino S. Leyco reported that “Purisima, who is also a member of the central bank’s Monetary Board, said… the Aquino government would be happy to accommodate (any unwinding of the SDA). He explained that by unwinding the P1.44-trillion deposits at the BSP’s special deposit accounts, it may cut the borrowing costs of the government.”
“Furthermore, the report noted, “Deposits by banks to the special deposit account facility of the BSP continued to increase in the past few years, a scenario which critics said… could have been more useful for the economy if it were invested in lending.”
Actually, when we were having consultations with former National Treasurer Norma Lasala way back in 2004-2005, she already insisted that the management of our national reserves had gone awry and, thus, wasted billions.
At that time, Purisima was already finance secretary and Amando Tetangco, the BSP chief.
Despite this, the continuity in the financial mafia remains unbroken.
Tetangco has gotten his second term for the same post while Purisima got back the Finance portfolio after a hiatus courtesy of “Hyatt 10.”
So the question is: why is Purisima only now beginning to admit the wisdom of “unwinding” the gargantuan SDA (and, in all probability, later proclaim that we can indeed mobilize a greater part of our GIR)?
Liberating step
For sure, achieving this would be a first step toward liberating ourselves from the chains that have shackled us for the past five decades. But that’s just the beginning.
The next stage is to free ourselves from ALL debt and all private bankers’ traps.
Since all credit and money is guaranteed by the taxpayer, there is absolutely no reason why the people, through the State, should borrow from any private party.
The nation should instead set up a “Peoples’ Bank” where creation of credit and money will be subject to referendum.
Now, we ask: Why was there no fanfare when Aquino III reappointed Tetangco to his BSP post when this is one of the most important jobs in the whole government?
Independent BSP
Undoubtedly, the answer lies in the fact that the BSP, as it is set up today, is actually “independent,” with the presidential appointment merely ceremonial.
And with a board dominated by private bankers, the bank decides on monetary policy, possessed of an “independent” character institutionalized by Cory Aquino’s handpicked Constitutional Commission – whose members claim is a relic of the 1973 Constitution even without basis.
Being a private bank, the BSP actually follows the workings of the US Federal Reserve and the Bank of International Settlements (BIS) where both have a public façade but with private bankers at the core (see “The Tower of Basel: The World’s Biggest Central Bank Has Private shareholders,” Global Research, July 29, 2011).
National Errors
Is there any wonder then why today the People’s Republic of China is the leading nation and economy in the world in terms of growth and stability? Its banking system is based on the concept of the “People’s Bank”, with its credit policies designed for national development and public welfare.
Of course, this is not the case for the US and its satellites--such as Europe’s PIGS (Portugal, Italy/Ireland, Greece, Spain)--now reeling from the greed and machinations of so-called “banksters.”
But sadly, our Senate, House, and financial bureaucracy – from the Bureau of Internal Revenue to the Bureau of Customs et al. – all follow the diktats of Wall Street, IMF-WB, ADB, and Basel in keeping the Philippines perpetually in debt; in taxing us more to pay it off, and in privatizing public services to create more debt (like the call for P110 billion more borrowings after 10 years of privatizing the state’s power assets).
Our past national errors, such as the ten years of fraud under Gloria Arroyo, should offer us concrete lessons in our nation’s political-economic history.
Our decision now should be to turn a completely new leaf--starting with a deeper understanding of our financial system.
(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, on “Hello Garci: A Complete History,” with Atty. Alan Paguia, Saturday, 8 to 9 p.m., with replay at 11 p.m., on GNN, Destiny Cable Channel 8; visit http://newkatipunero.blogspot.com and http://hermantiulaurel.blogspot.com for our articles plus TV and radio archives)
Wednesday, August 17, 2011
August, the Ghost Month
YESTERDAY, TODAY & TOMORROW
Linggoy Alcuaz
8/15-21/2011
I heard it before but it did not stick. To Chinese-Filipinos, August is the month of ghosts. However, I always thought that the week where October 31 to November 2 fell was the very short season of ghosts.
And so, we were pleasantly surprised when researchers of a mass media organization came last week to survey our Balete Drive (Baranggay Mariana, QC) home to research on the White Lady of Balete Drive.
It used to be that ABS-CBN and GMA would come and shoot ghost scenes in our eighty-five year old house and garden as well as in the surrounding streets – Balete, Campanilla and Sampaguita – in October.
These were intended for their Halloween shows.
White Lady of Balete Drive
In fact, the lady researcher had heard about my column, “The Lady of Balete Drive” in the November 1-7 issue, # 11 of our weekly OpinYon.
She was also able to get the name of the most popular ghost in the whole Philippines, Leni Recto Garchitorena.
When I could still see and talk with former Batangas Vice Governor Ricky Recto, he confirmed to me that she was their cousin. Her mother was Maria Cristina Recto married to a Garchitorena from Tigaon, Camarines Sur.
Ricky’s father, former IBP Assemblyman Raffy Recto, owned the house that she lived in.
My friend, former Caloocan City Congressman and NAIA General Manager Romeo Santos, is married to Magdalena “Meg” Garchitorena whose family used to own thousands of hectares of land in Tigaon and neighboring towns.
Former DAR Undersecretary Pejo confirmed to us that he knew the parents of the White Lady.
We hope soon to interview someone who knew Leni when she was still alive or was related to her.
Different versions
I have heard two versions of how and why she died.
In both she met a vehicular accident.
In one she escaped from her home just to join her friends for a joy ride.
In the other she was eloping with her boyfriend. In both versions, her parents did not allow her to go out.
The story goes that she owed money to the class fund and that was why she could not rest. When her parents settled the debt, she went to rest.
Well, things are happening earlier this year. Usually, radio stations start playing Christmas carols in September.
Even that is too early for me when I‘m broke. They remind one of the bigger expenses during the Christmas Season.
Last month they started playing them already. It’s good that I’ve gotten insensitive to fears of going broke.
Ghosts and Death
Our family is also insensitive to fear of ghosts.
We consider and feel that the ghosts that reside in our home or nearby are friendly to us.
In fact, my brother Mano, who died last July 24, and I experienced the same kind of kindness from the ghost.
It opened our garden gate for us. What was the difference? He saw her. I did not, because it was raining very hard when I came home.
Other families have different experiences with ghosts and death. The Sumulong-Cojuangco clan just last month saw brother Don Pedro “Pete” Sumulong Cojuangco and sister Josephine Sumulong Cojuangco Reyes died in rapid succession.
The latter collapsed at the funeral mass of the former.
August 21
Their father, Don Jose, and Josephine’s husband, Narciso Reyes (one of the owners of the Far Eastern University) both died on the same month and day as “Ninoy”, August 21.
Ninoy had originally planned to come home on August 7, 1983.
However, then President Ferdinand E. Marcos, through then Secretary of Defense Juan Ponce Enrile requested Ninoy to delay his arrival by a month due to security reasons.
Ninoy complied halfway. He postponed his homecoming by only two weeks and not a month. That is why we have August 21 to commemorate.
Worst day
In 1980 (November), 1981 (September) and 1982 (March), I visited Ninoy three times.
Twice, I went to Boston. Once, I met him in his sister, Lupita A. Kashiwahara’s, townhouse in Pacifica, southwest of San Francisco.
During one of these trips, I saw a Vendo machine that analyzes your luck for any given day based on your birthday. I inputted Ninoy’s November 27 birthday paired with three dates, August 7 and 21 and September 5. Of the three, the best day was the 7th.
The worst was the 21st. The 5th was midway between the 7th and the 21st.
We can only imagine what would have happened if Ninoy had come home on the day he had originally planned.
Instead, he came home at the worst possible time. Marcos was in the middle of a kidney transplant. If Marcos had been in command and control of his senses, Ninoy might not have been assassinated at the NAIA.
He could have been jailed again, assassinated elsewhere or even allowed to go free.
Most probably, the situation would not have developed into EDSA I.
Without Ninoy as martyr, there would be no President Cory. Without martyr Ninoy and saint Cory, there would be no P-Noy today. Good or Bad? Without a Noynoy candidacy, we are not sure that GMA would not steal the presidency a third time. However, without a President Cory, there would not be a President GMA either. It’s getting too complicated. Let’s drop it. Let’s look for other ghosts of years past.
Another ghost
I noticed that the PNP celebrated its anniversary last Monday, August 8. I thought that the foundation day of the PNP was in January 1991, when the Local Autonomy Act was passed. This law created both the DILG and the PNP.
August 8 is the foundation day of the old Philippine Constabulary. This reminds us of another ghost from the past.
On August 8, 1970 or 1971, as Operation Bantay, under the sponsorship of the Christian Social Movement, we went to visit the burned out sitio of Ora Este, baranggay Ora, municipality of Bantay, Ilocos Sur.
In the November 1969 elections, Liberals Sergio Osmena, Jr. and Genaro Magsaysay challenged re-electionist Nacionalistas Ferdinand Marcos and Fernando Lopez and lost.
Crisologos and Singsons
At the provincial level, the Crisologos ruled Ilocos Sur. Carmeling was the governor. Floro was a ranking congressman.
Now Governor Luis “Chavit” Singson dared challenge the Crisologo monolith in the 1969 elections.
The Bulletin captured on camera a tense arms-drawn physical confrontation between Bingbong Crisologo and Chavit.
Bingbong’s goons, called saka-sakas, burned the sitio of Ora Este, Chavit’s bailiwick.
My classmate and National Union of Students of the Philippines (NUSP) president Edgar Jopson evacuated the residents turned refugees to the Ateneo de Manila Prep School near Gate 1 of the Loyola Heights campus.
Among their PC security then was future NPA rebel Lt. Victor Corpus.
After the summer vacation, we brought them back to Ora Este.
Periodically, we visited them. When necessary, we escorted them. The 554th PC Company of the 55th PC Battalion was assigned to secure them. The Supreme Court granted a change of venue of the trial to Baguio City.
Eventually, Bingbong and his cohorts were convicted and sentenced. They were sent to Muntinlupa.
Forgotten victims
However, in August 1971, the crime, the victims and the accused seemed forgotten.
To bring attention to them and bring them back to mainstage, we planned a mini rally at each of the two main political parties’ proclamation Rallies.
I was the head of Operation Bantay. On the night of Saturday, August 22, I was late arriving at our assembly place at the Plaza Lawton (now Liwasang Bonifacio).
I went ahead of our main party of about 50-100 people to cross over to Plaza Miranda. Just then two grenades exploded.
Fortunately, I was running late.
On the way to Plaza Lawton, I had stopped by the house of my colleague, Raymundo Accas Tan at Unang Hakbang in Balic-Balic, Quezon City.
I was doing some coordination and preparations for KASAPI’s first anniversary celebration on the next day, Sunday, August 22.
If I had been on time, I might have been behind the stage.
Or worse, our mini-rally might have served as a diversion and helped the grenade throwers do a better job.
Radicals and Moderates
KASAPI stood for Kapulungan ng mga Sandigan ng Pilipinas.
We had been formally organized the year before in Santa Mesa.
However, our core group had been in existence much longer. I had been recruited four years before when I started college in 1966 by Fr. Jose Blanco, S.J. and Ateneo History Professor Rolando Quintos.
Since then, we had spread out to the University Belt. We had an office in front of UST.
Almost every weekend we had live-in general orientation seminars. It was obvious we were competing with the Communist Youth and Student Organizations. They were Radicals. We were Moderates.
We were also called Christian Democrats/Socialists, Democratic Socialists and Social Democrats.
In August 1970, I had been elected the chairman.
In September 1972, I resigned in order to focus and prepare for the November 1973 national elections. These, however, would be interrupted by the declaration of Martial Law on September 21, 1972.
(To be continued)
Linggoy Alcuaz
8/15-21/2011
I heard it before but it did not stick. To Chinese-Filipinos, August is the month of ghosts. However, I always thought that the week where October 31 to November 2 fell was the very short season of ghosts.
And so, we were pleasantly surprised when researchers of a mass media organization came last week to survey our Balete Drive (Baranggay Mariana, QC) home to research on the White Lady of Balete Drive.
It used to be that ABS-CBN and GMA would come and shoot ghost scenes in our eighty-five year old house and garden as well as in the surrounding streets – Balete, Campanilla and Sampaguita – in October.
These were intended for their Halloween shows.
White Lady of Balete Drive
In fact, the lady researcher had heard about my column, “The Lady of Balete Drive” in the November 1-7 issue, # 11 of our weekly OpinYon.
She was also able to get the name of the most popular ghost in the whole Philippines, Leni Recto Garchitorena.
When I could still see and talk with former Batangas Vice Governor Ricky Recto, he confirmed to me that she was their cousin. Her mother was Maria Cristina Recto married to a Garchitorena from Tigaon, Camarines Sur.
Ricky’s father, former IBP Assemblyman Raffy Recto, owned the house that she lived in.
My friend, former Caloocan City Congressman and NAIA General Manager Romeo Santos, is married to Magdalena “Meg” Garchitorena whose family used to own thousands of hectares of land in Tigaon and neighboring towns.
Former DAR Undersecretary Pejo confirmed to us that he knew the parents of the White Lady.
We hope soon to interview someone who knew Leni when she was still alive or was related to her.
Different versions
I have heard two versions of how and why she died.
In both she met a vehicular accident.
In one she escaped from her home just to join her friends for a joy ride.
In the other she was eloping with her boyfriend. In both versions, her parents did not allow her to go out.
The story goes that she owed money to the class fund and that was why she could not rest. When her parents settled the debt, she went to rest.
Well, things are happening earlier this year. Usually, radio stations start playing Christmas carols in September.
Even that is too early for me when I‘m broke. They remind one of the bigger expenses during the Christmas Season.
Last month they started playing them already. It’s good that I’ve gotten insensitive to fears of going broke.
Ghosts and Death
Our family is also insensitive to fear of ghosts.
We consider and feel that the ghosts that reside in our home or nearby are friendly to us.
In fact, my brother Mano, who died last July 24, and I experienced the same kind of kindness from the ghost.
It opened our garden gate for us. What was the difference? He saw her. I did not, because it was raining very hard when I came home.
Other families have different experiences with ghosts and death. The Sumulong-Cojuangco clan just last month saw brother Don Pedro “Pete” Sumulong Cojuangco and sister Josephine Sumulong Cojuangco Reyes died in rapid succession.
The latter collapsed at the funeral mass of the former.
August 21
Their father, Don Jose, and Josephine’s husband, Narciso Reyes (one of the owners of the Far Eastern University) both died on the same month and day as “Ninoy”, August 21.
Ninoy had originally planned to come home on August 7, 1983.
However, then President Ferdinand E. Marcos, through then Secretary of Defense Juan Ponce Enrile requested Ninoy to delay his arrival by a month due to security reasons.
Ninoy complied halfway. He postponed his homecoming by only two weeks and not a month. That is why we have August 21 to commemorate.
Worst day
In 1980 (November), 1981 (September) and 1982 (March), I visited Ninoy three times.
Twice, I went to Boston. Once, I met him in his sister, Lupita A. Kashiwahara’s, townhouse in Pacifica, southwest of San Francisco.
During one of these trips, I saw a Vendo machine that analyzes your luck for any given day based on your birthday. I inputted Ninoy’s November 27 birthday paired with three dates, August 7 and 21 and September 5. Of the three, the best day was the 7th.
The worst was the 21st. The 5th was midway between the 7th and the 21st.
We can only imagine what would have happened if Ninoy had come home on the day he had originally planned.
Instead, he came home at the worst possible time. Marcos was in the middle of a kidney transplant. If Marcos had been in command and control of his senses, Ninoy might not have been assassinated at the NAIA.
He could have been jailed again, assassinated elsewhere or even allowed to go free.
Most probably, the situation would not have developed into EDSA I.
Without Ninoy as martyr, there would be no President Cory. Without martyr Ninoy and saint Cory, there would be no P-Noy today. Good or Bad? Without a Noynoy candidacy, we are not sure that GMA would not steal the presidency a third time. However, without a President Cory, there would not be a President GMA either. It’s getting too complicated. Let’s drop it. Let’s look for other ghosts of years past.
Another ghost
I noticed that the PNP celebrated its anniversary last Monday, August 8. I thought that the foundation day of the PNP was in January 1991, when the Local Autonomy Act was passed. This law created both the DILG and the PNP.
August 8 is the foundation day of the old Philippine Constabulary. This reminds us of another ghost from the past.
On August 8, 1970 or 1971, as Operation Bantay, under the sponsorship of the Christian Social Movement, we went to visit the burned out sitio of Ora Este, baranggay Ora, municipality of Bantay, Ilocos Sur.
In the November 1969 elections, Liberals Sergio Osmena, Jr. and Genaro Magsaysay challenged re-electionist Nacionalistas Ferdinand Marcos and Fernando Lopez and lost.
Crisologos and Singsons
At the provincial level, the Crisologos ruled Ilocos Sur. Carmeling was the governor. Floro was a ranking congressman.
Now Governor Luis “Chavit” Singson dared challenge the Crisologo monolith in the 1969 elections.
The Bulletin captured on camera a tense arms-drawn physical confrontation between Bingbong Crisologo and Chavit.
Bingbong’s goons, called saka-sakas, burned the sitio of Ora Este, Chavit’s bailiwick.
My classmate and National Union of Students of the Philippines (NUSP) president Edgar Jopson evacuated the residents turned refugees to the Ateneo de Manila Prep School near Gate 1 of the Loyola Heights campus.
Among their PC security then was future NPA rebel Lt. Victor Corpus.
After the summer vacation, we brought them back to Ora Este.
Periodically, we visited them. When necessary, we escorted them. The 554th PC Company of the 55th PC Battalion was assigned to secure them. The Supreme Court granted a change of venue of the trial to Baguio City.
Eventually, Bingbong and his cohorts were convicted and sentenced. They were sent to Muntinlupa.
Forgotten victims
However, in August 1971, the crime, the victims and the accused seemed forgotten.
To bring attention to them and bring them back to mainstage, we planned a mini rally at each of the two main political parties’ proclamation Rallies.
I was the head of Operation Bantay. On the night of Saturday, August 22, I was late arriving at our assembly place at the Plaza Lawton (now Liwasang Bonifacio).
I went ahead of our main party of about 50-100 people to cross over to Plaza Miranda. Just then two grenades exploded.
Fortunately, I was running late.
On the way to Plaza Lawton, I had stopped by the house of my colleague, Raymundo Accas Tan at Unang Hakbang in Balic-Balic, Quezon City.
I was doing some coordination and preparations for KASAPI’s first anniversary celebration on the next day, Sunday, August 22.
If I had been on time, I might have been behind the stage.
Or worse, our mini-rally might have served as a diversion and helped the grenade throwers do a better job.
Radicals and Moderates
KASAPI stood for Kapulungan ng mga Sandigan ng Pilipinas.
We had been formally organized the year before in Santa Mesa.
However, our core group had been in existence much longer. I had been recruited four years before when I started college in 1966 by Fr. Jose Blanco, S.J. and Ateneo History Professor Rolando Quintos.
Since then, we had spread out to the University Belt. We had an office in front of UST.
Almost every weekend we had live-in general orientation seminars. It was obvious we were competing with the Communist Youth and Student Organizations. They were Radicals. We were Moderates.
We were also called Christian Democrats/Socialists, Democratic Socialists and Social Democrats.
In August 1970, I had been elected the chairman.
In September 1972, I resigned in order to focus and prepare for the November 1973 national elections. These, however, would be interrupted by the declaration of Martial Law on September 21, 1972.
(To be continued)
Monday, August 15, 2011
Economic saboteurs
DIE HARD III
Herman Tiu Laurel
8/15/2011
With the US financial system reeling from its asymmetrically exploding fiscal crisis; with Europe staggering amid socio-economic upheaval; and with Japan dimming in the dark cloud of its tectonic and nuclear disaster, local business news reported the inevitable: “Exports down 10.2 percent in June” from $4.557 to $4.092 billion year-on-year, or a loss of almost P25.2 billion. On top of that, the prevailing currency issue has caused the Philippine economy to suffer heavy losses. For our largest dollar-earning sectors alone — the OFWs and business process outsourcing (BPO) firms — every appreciation of the peso to the US dollar already costs billions. And we have not seen the worst of it yet.
Regrettably, even as Filipino entrepreneurs, workers and consumers are hit with these whammies, a Big Business conglomerate is, by contrast, expecting core profits to grow nearly 25 percent, with 31 percent coming from its power unit’s earnings which have grown up to 87 percent annually from 2008 to 2010. Why, Metro Pacific Investments Corp. (MPIC) CEO Manuel Pangilinan has even forecast Manila Electric Co. (Meralco)’s profits as growing “modestly” to P14 billion in 2011, which, judging from the results midway, the company seems ready to exceed by year-end.
Reports state that in the first half of 2011 alone, “Meralco’s core net income increased 35 percent to P7.82 billion on higher distribution tariffs despite the slightly lower volume of electricity sold because of the cooler weather and lower industrial consumption of power…” Hence, Meralco sold less electricity but got higher profits.
Similarly, another major component of MPIC’s profit this year — which was a surprise despite my constant monitoring of the utilities sector — has been water.
Again, on higher rates, as well as tax holidays, MWSI contributed 41 percent of MPIC’s profits.
Just the same, of all the utility services under the MPIC empire, it is still power that draws the greatest attention.
A February 2011 study by the Philippine Exporters’ Confederation Inc. (PhilExport) and the Employers Confederation of the Philippines (Ecop) entitled, “The Impact of High Energy Costs on Exports,” already named the Philippines as having the “highest power cost in Asia.” Citing an October 2010 study by independent think tank International Energy Consultants, it explained that RP’s “average retail rate of electricity of 18.1 US cents per kilowatthour… has eased out Japan at the top… at 17.9 US cents per kilowatthour,” adding, “The high cost of electricity in the Philippines was traced by the group to the fact that all costs — from producing power to distribution and taxes — are passed on to consumers… (And as) the Philippines is the only country in the region that has privatized its electric power sector and has no state subsidy on rates… (with) domestic natural gas coming from the Malampaya gas deposits in offshore Palawan… priced so high… (it is) suggested that the Philippine government renegotiate the Malampaya contract…”
Notwithstanding that, other rate hikes in power also bubbled up this past month: First, with the Supreme Court (SC) siding with both the Energy Regulatory Commission (ERC) and Meralco on a 2009 P0.29/kWh 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 of the power giant: Has it now been captured, too?
Second, as Congress has extended the lifeline rate to consumers using 99/kWh per month or less, it means that this doleout will be exacted once again from consumers using upwards of 100 kWh per month, most of whom are also equally poor; this, despite the fact that a bleeding heart such as House energy committee chairman Rep. Dina Abad refuses to shell out a single centavo from her P380-million pork barrel.
Clearly, despite the claim that the wretched 10-year-old Electric Power Industry Reform Act (Epira) was going to bring down rates by competition via the Wholesale Electricity Spot Market (Wesm), what happened was the exact opposite: It more than doubled charges! In fact, privatization has not reduced the $18-billion National Power Corp. (Napocor) debt at all.
Then, as if these were not enough, we still have to contend with the ERC’s approval of a P4.5-billion Napocor petition for increase of P0.07/kWh starting August to cover for “losses” from its 2003 to 2009 “missionary” electrification operations.
With such economic saboteurs, the destruction of our economy and the people’s welfare is sure to never cease — that is, until the nation revolts against the entire system.
(Tune in to Sulo ng Pilipino/Radyo OpinYon, Monday, Wednesday, Friday, 5 to 7 p.m., and Tuesday, Thursday, 5 to 6 p.m. on 1098AM; Talk News TV with HTL, Saturday, 8 to 9 p.m., with replay at 11 p.m., on GNN, Destiny Cable Channel 8; also visit http://newkatipunero.blogspot.com for our articles plus TV and radio archives)
Herman Tiu Laurel
8/15/2011
With the US financial system reeling from its asymmetrically exploding fiscal crisis; with Europe staggering amid socio-economic upheaval; and with Japan dimming in the dark cloud of its tectonic and nuclear disaster, local business news reported the inevitable: “Exports down 10.2 percent in June” from $4.557 to $4.092 billion year-on-year, or a loss of almost P25.2 billion. On top of that, the prevailing currency issue has caused the Philippine economy to suffer heavy losses. For our largest dollar-earning sectors alone — the OFWs and business process outsourcing (BPO) firms — every appreciation of the peso to the US dollar already costs billions. And we have not seen the worst of it yet.
Regrettably, even as Filipino entrepreneurs, workers and consumers are hit with these whammies, a Big Business conglomerate is, by contrast, expecting core profits to grow nearly 25 percent, with 31 percent coming from its power unit’s earnings which have grown up to 87 percent annually from 2008 to 2010. Why, Metro Pacific Investments Corp. (MPIC) CEO Manuel Pangilinan has even forecast Manila Electric Co. (Meralco)’s profits as growing “modestly” to P14 billion in 2011, which, judging from the results midway, the company seems ready to exceed by year-end.
Reports state that in the first half of 2011 alone, “Meralco’s core net income increased 35 percent to P7.82 billion on higher distribution tariffs despite the slightly lower volume of electricity sold because of the cooler weather and lower industrial consumption of power…” Hence, Meralco sold less electricity but got higher profits.
Similarly, another major component of MPIC’s profit this year — which was a surprise despite my constant monitoring of the utilities sector — has been water.
Again, on higher rates, as well as tax holidays, MWSI contributed 41 percent of MPIC’s profits.
Just the same, of all the utility services under the MPIC empire, it is still power that draws the greatest attention.
A February 2011 study by the Philippine Exporters’ Confederation Inc. (PhilExport) and the Employers Confederation of the Philippines (Ecop) entitled, “The Impact of High Energy Costs on Exports,” already named the Philippines as having the “highest power cost in Asia.” Citing an October 2010 study by independent think tank International Energy Consultants, it explained that RP’s “average retail rate of electricity of 18.1 US cents per kilowatthour… has eased out Japan at the top… at 17.9 US cents per kilowatthour,” adding, “The high cost of electricity in the Philippines was traced by the group to the fact that all costs — from producing power to distribution and taxes — are passed on to consumers… (And as) the Philippines is the only country in the region that has privatized its electric power sector and has no state subsidy on rates… (with) domestic natural gas coming from the Malampaya gas deposits in offshore Palawan… priced so high… (it is) suggested that the Philippine government renegotiate the Malampaya contract…”
Notwithstanding that, other rate hikes in power also bubbled up this past month: First, with the Supreme Court (SC) siding with both the Energy Regulatory Commission (ERC) and Meralco on a 2009 P0.29/kWh 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 of the power giant: Has it now been captured, too?
Second, as Congress has extended the lifeline rate to consumers using 99/kWh per month or less, it means that this doleout will be exacted once again from consumers using upwards of 100 kWh per month, most of whom are also equally poor; this, despite the fact that a bleeding heart such as House energy committee chairman Rep. Dina Abad refuses to shell out a single centavo from her P380-million pork barrel.
Clearly, despite the claim that the wretched 10-year-old Electric Power Industry Reform Act (Epira) was going to bring down rates by competition via the Wholesale Electricity Spot Market (Wesm), what happened was the exact opposite: It more than doubled charges! In fact, privatization has not reduced the $18-billion National Power Corp. (Napocor) debt at all.
Then, as if these were not enough, we still have to contend with the ERC’s approval of a P4.5-billion Napocor petition for increase of P0.07/kWh starting August to cover for “losses” from its 2003 to 2009 “missionary” electrification operations.
With such economic saboteurs, the destruction of our economy and the people’s welfare is sure to never cease — that is, until the nation revolts against the entire system.
(Tune in to Sulo ng Pilipino/Radyo OpinYon, Monday, Wednesday, Friday, 5 to 7 p.m., and Tuesday, Thursday, 5 to 6 p.m. on 1098AM; Talk News TV with HTL, Saturday, 8 to 9 p.m., with replay at 11 p.m., on GNN, Destiny Cable Channel 8; also visit http://newkatipunero.blogspot.com for our articles plus TV and radio archives)
Subscribe to:
Posts (Atom)
