Sunday, July 8, 2012

Interpreting garbage laws

BACKBENCHER
Rod P. Kapunan
7/7-8/2012



Looking back at that blot on our judicial history, the decision to remove the sitting chief justice of the Supreme Court indeed highlighted the country as a pariah in the international legal circle. As we Filipinos would often consider ourselves, the impeachment of Renato Corona put truism in us as "only in the Philippines."

We must bear in mind that the law used to impeach the chief justice was legislated consequent to our lunatic pretension of wanting to be known all over the world as democratically honest. We recall that ignominious event to question the idiotic philosophy that goaded the authors to make it compulsory to all public officials to declare their bank deposits in their Statement of Assets, Liabilities and Net Worth.

My lawyer-friend who is more philosophical than legalistic in his perspective began by putting forward that individuals are supposed to be punished if what has been proven constitutes a crime, meaning that even if there is no law declaring such act as offensive or injurious to society, mankind, by its desire to have an orderly and peaceful society, would nonetheless declare the commission of the act punishable.

In that infamous case, the chief justice was punished using a garbage law that in substance would not constitute an offense or a crime. It was the legislative fiat declaring such act malum prohibitum that made the act punishable, viz. that what Corona did was a diligent act a person in his right mind would normally do. His act was not mala in se that he could be punished even without a law declaring it a crime as the act is inherently injurious and contrary to civilized conduct of man.

So, by any legal extrapolation, my friend said, no amount of legislation could transform an act of any public official not to include in his SALN his bank account to a crime. It is for this that the framers of the Constitution specifically enumerated the high crimes that could be made a ground to impeach some high officials. Yet, we kicked out a chief justice not for a crime, but for violation of the capricious law, and worse, for one that does not even fall into the category of a high crime.

Since to make a deposit is accepted and a normal thing to do, that act must logically be reinforced by laws guaranteeing the secrecy of one's bank deposits, but giving room to some exception. The exception is few because that follows the same logical presumption of innocence to one who might stand as accused, and that is for the accuser to prove.

The same has been raised by my good friend-lawyer in asking why our mentally deranged lawmakers opted to pass a law declaring as a form of violence against women should a husband refuse to give financial support to his wife. Up to now many wonder about that silly conclusion of equating failure or refusal to give support as equivalent to violence. In fact, by any stretch of one's imagination, violence is the act of inflicting harm or physical pain to another, in this case to a wife. In fact, the act is already punished by existing laws.

There is no question that support is an acknowledged legal obligation. That becomes mandatory if there has been a judgment of divorce or legal separation of which the guilty party is ordered by the court to give alimony or support to the innocent spouse. But instead of fine tuning those laws to re-enforce and increase the grounds for financial support, our mentally deranged solons proceeded to interpret that as an act of violence, when the guilty party could simply be punished for contempt or defiance to a lawful order.

It is for this reason why many have been calling the laws recently passed by our lawmakers as garbage. They stand as exposition of their insanity. One could easily detect they were enacted just to boost the ego of the author, for want of anything to do, or to appease fanatical pressure groups wanting to highlight their misguided role in our society. Some of them may even be funded by foreign non-governmental organizations out to weaken our democratic institution by injecting outlandish rights that could trigger enmity among our people.

Yes, there are rights which our society should accord to women, but certainly they do not include rights that would result in the diminution on the rights of men for that could mean discrimination, and in contravention to what society has declared as co-equal. The same can be said of other pressure groups. Each has its own peculiar interest to elevate as a right. The problem is nobody has come to think that those interests could only become viable as a right for as long as they would not transgress on the rights of others.

It is for this reason why many have become apprehensive in that decision to remove Corona. Even if we take it that Corona was convicted after he waived his right, his waiver did not result in him violating the law because they remained legal. His waiver was not an act of legislation to enact a new law to single himself out. But sadly, our lawmakers failed to see that point.

Friday, July 6, 2012

A Russian 'Mir-acle?'

DIE HARD III
Herman Tiu Laurel
7/6/2012



A Daily Telegraph report noting the upturn in the talks on the Syrian crisis said, "Diplomats were clearly pleased to have agreed a peace plan, confounding the pessimists…" Indeed, such an outcome could only have come about because of strong Russian support for the Kofi Annan peace mission. And while that Geneva meeting yielded a "transition plan" through a unity government that includes all stakeholders in Syria, including both government and opposition forces, any precondition for "regime change," i.e. the removal of an elected national leader, as a way of moving forward was naturally set aside.

Syrian President Bashar al-Assad has expressed willingness to exit for the cause of peace if that is what his people want. Thus, China's Foreign Minister Yang Jiechi, in backing the Russia plan, declared: "A plan of political settlement on the Syrian issue can only be Syrian-led … Outsiders cannot make decisions for the Syrian people."

On that score, Russian diplomacy has won the day by toughing it out on the principles of integrity of sovereign nations, in effect resisting the latest aggressive US-North Atlantic Treaty Organization (Nato) destabilization and Balkanization of a sovereign state.

Incidentally, the Russian word for "peace" known as mir aptly describes the possible "mir-acle" of peace in Syria.

With that hopeful thought, perhaps Syria can still be saved from the fate that befell Libya, which went through the brutal "R2P" (Right to Protect) intervention of Western powers led by Italy and France (with US support and direction). Many should know that Libya, after the fall of Gaddafi and under the governance of the National Transition Council (NTC) composed of anti-Gaddafi forces, is now in a state of chaos and massive deterioration of political-economic conditions.

In a March article the Washington Post declared, "In Libya, despot is gone but chaos reigns;" and this, few geopolitical laymen realize, is precisely what the Western powers intended all along: Chaos in a country where the external power gains unlimited opportunity for exploitation.

London's Independent quoted NTC chief and Washington man Mustafa Abdul Jalil commenting on the factional (brigades) fighting: "We are now between two bitter options. We deal with these violations by brigades strictly and put the Libyans in a military confrontation which we don't accept, or we split and there will be civil war. If there's no security, there will be no law, no development and no elections."

Nine years after the US invasion of Iraq, the country is still in shambles and continues to deteriorate under factional conflict, with bombings between Shi'ite and Sunni factions (and maybe US and British covert operations disguised as either) continuing to kill and maim innocent men, women, children, and religious pilgrims indiscriminately.

On the Afghanistan-Pakistan front, Sumaira Nasir Durrani reports on Centre for Research on Globalization: "The United Nations reported that in the year of 2011 the civilian death toll in Afghanistan was 3,021 and 4,507 Afghans were wounded. According to other sources the actual number of civilian casualties was probably five times as large as the number that the UN mentioned. In Feb. 2012 the annual report on 'Protection of civilians in armed conflict' prepared by the UN Assistance Mission in Afghanistan (UNAMA) and the UN High Commissioner for Human Rights (OHCHR), acknowledged that 3,021 civilian deaths last year is an increase of eight percent than the previous year's total of 2,790."

From the Voices Web site comes this: "According to the Human Rights Commission of Pakistan, there were 111 US/Nato Predator drone attacks inside Pakistan during 2010 resulting in 957 civilian deaths. The United Nations reports that from 2006 to 2011, an estimated 1,245 civilians have died in US airstrikes in Afghanistan … Afghanistan's President Hamid Karzai, whose cousin was killed in a US night raid in March, has repeatedly condemned US and Nato drone and other airstrikes that have resulted in the deaths of civilians."

These are just some samples of the violence that US and Nato have inflicted on the countries they have intervened in to allegedly "save the people" and "establish democracy."

The real intention of the West--with the US and Britain leading the rest of Europe by the nose--comprehensively described by geopolitical analyst Webster Tarpley runs like this: "The current US policy under the Obama administration with Hillary Clinton in the State Department aims at the destruction of all sovereign states on this planet. It's really rolling the world situation back to the time before the Treaty of Westphalia in 1648 which established the regime of modern independent sovereign states. The desperation of the US and the British comes from their financial bankruptcy, and what they've got to do is increase the rate of exploitation and looting and sacking of the entire world economy… (And) In the course of this, they find that any national government is an intolerable obstacle… (as) It gets in their way."

In the same way that Western powers have looted Iraq and Libya, they have done the same, if not worse, to the Philippines, by turning it into a model for their "peaceful" subversion of a nation, starting with the 1986 elite counter-revolution of Cory Aquino's Yellow horde. Today, the Philippine state has effectively been destroyed with the US-Britain's looting in Malampaya, as well as of through our privatized electricity and other public utilities.

Worse, BS Aquino III is now even into calling US spy planes to hover above what should be an Asean Sea patrolled only by Asean forces. Evidently, with such people at the helm, no "mir-acle" is yet in store for the Philippines… that is, unless drastic revolutionary change occurs.

(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., this week with senatorial candidate Joey de Venecia; visit http://newkatipunero.blogspot.com)

Tuesday, July 3, 2012

Killing us

DIE HARD III
Herman Tiu Laurel
7/2/2012



The Energy Regulatory Commission (ERC) has again approved new rates for the Manila Electric Co. (Meralco) for the new regulatory year starting July 1, 2012 to June 30, 2013 on the strength of only a provisional authority (PA) before pending issues are resolved. The latest PA was issued on top of several previous PAs for 2010, 2011, and 2012.

For one, our fellow crusader, Mang Naro Lualhati, has pending, unresolved petitions on Meralco's Maximum Average Price (MAP), insisting that it should only be P0.90 per kilowatt-hour (kWh) as against ERC-approved rates that used to be around P1.60/kWh but now even raised to P1.6303/kWh. Another colleague of ours, Iligan Light and Power's Jojo Borja, has produced evidence of up to 900-percent overpricing of Meralco's costs that served as the basis for its rate hike applications before the ERC. Both of these were already brought to the courts for resolution; yet the ERC continues to issue its PAs.

Just what is the urgency of issuing these rate increases via these PAs when Meralco has continued to reflect annual increases in profits since 2006 up to the current year?

Last Feb. 2012 it was announced in the headline, "Meralco profit surges 40 percent," that the power company's "core net income, which strips out currency and derivatives-related items, climbed 22 percent to P14.9 billion from a year ago… (exceeding) the profit guidance of P14.5 billion." But take note of this: The power firm, which is indirectly controlled by Hong Kong-based First Pacific Co. Ltd. and partly owned by San Miguel Corp., "had 5.3 million customers last year, up 3.7 percent from a year ago."

Meralco says that its profits rose due to an increased number of customers, but a 40-percent increase in profits cannot be due to a mere 3.7-percent increase in customer base as its own media statement claims. That profit rise is simply from the price gouging rates that the ERC has been giving "provisionally" to Meralco over at least the past three regulatory years.

From a recent letter of our colleague Butch Junia: "Meralco's net earnings have soared year on year: P3.1 billion in 2008; P6.3 billion in 2009; P10.1 billion in 2010; P14.8 billion in 2011. For the year 2010, customer base grew 3 percent; sales increased 11 percent, but earnings soared 67 percent--which obviously came from rate increases rather than market growth or operational efficiencies … Best for the utility, hardly good for the public."

Again, with such profits, what is the urgency of granting PAs for rate increases to Meralco?

Such profit surges are only possible with the massive overpricing of Meralco costs, such as 500 percent on the tens of thousands of power transformers, 900 percent on electric poles, and similarly overpriced substations, contractors, ad nausea.

At the heart of the abuse, however, is ERC's continued defiance of a 2004 Supreme Court (SC) decision under Chief Justice Reynato Puno upholding the old 12-percent Return-on-Rate Base (RoRB) formula as the legal and just basis for setting power rates.

As Junia recaps: "Shortly after that (SC) decision, the ERC started the shift from RoRB to Performance Based Regulation (PBR) with the adoption of rate unbundling in 2003, and full PBR in 2007. Under RoRB, the distribution, supply and metering charge of Meralco was P0.70/kWh; under rate unbundling it was P0.90/kWh. With PBR, it was P1.2227/kWh in 2009, P1.491 in 2010, P1.6464 in 2011, P1.60 in 2012, to go up to P1.633 in July 2012-June 2013."

The PBR effectively raises Meralco's rate of return to over 15 percent; but that is not all. The ERC also provided incentives that added on pushed distribution utility (DU) returns to as high as 17 percent. But these are not the only problems residential consumers have with the present electricity rate-setting system, but are rarely told.

As Junia writes in his letter, the ERC "is mandated by the Electric Power Industry Reform Act (Epira) to 'ensure (for consumers) a reasonable price of electricity… (where) the rates prescribed shall be non-discriminatory.'"

Still, we see in Meralco's petition "for distribution charges… an increase to P1.962/kWh from P1.078/kWh for residential consumers using up to 200 kWh, P1.5535/kWh from P1.3851/kWh for those consuming 201-300 kWh, P1.5535/kWh from P1.3851/kWh for consumers of 301-400 kWh, and P2.4780/kWh from P2.3096/kWh for those that use over 400 kWh per month. Industrial users, meanwhile, with a minimum demand of 40 kW to less than 200 kW would have their supply charges raised to P990 from the current P910 … Large industrial users that consume 200 kW to less than 750 kW will pay supply charges of P4,110 while industrial users of 750 kW to less than 10,000 kW have to pay P14,920…"

Note: Up to 10,000 kW industrial users pay P1.49/kW but residential consumers using 201 kWh to 400 kWh pay P1/55/kWh to P2.30/kWh, while industrial and commercial power consumers using even higher kWh, such as shopping malls which go into millions of kWh, can pay as low as P0.20/kWh in distribution charges.

Residential users consume roughly 35 percent of distributed power but provide around 65 percent of Meralco's revenues, which is inversely proportional to industrial/commercial customers. Thus, residential consumers subsidize everyone else.

Soon the "open access" policy will push even higher rates for residential users as Meralco and DUs court industrial/commercial consumers with lower rates to prevent them from setting up their own power plants.

Meanwhile, "Shares of Meralco closed at P253.40 on Friday, up 0.96 percent from its previous close of P251 apiece"--this as the national economy suffers, as exemplified by the recent statement of businessman Robert Go, director of the Philippine Retailers Association and chairman of the Economic Development Committee of the Regional Development Council (RDC) saying "Because of these big power expenses, most of the profits of businessmen in the past year were wiped out and if this will continue, the workers will be affected because their employers can hardly adjust wages."

Stated simply, the power oligarchs are killing every one of us. Time to fight back.

(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., this week with senatorial candidate Joey de Venecia; visit http://newkatipunero.blogspot.com for our articles plus TV and radio archives)