DIE HARD III
Herman Tiu Laurel
11/26/2010
"The first casualty of war — Truth.”
At any point in history, wars are being waged on a daily basis on one level or another. This week in the Philippine and world stage, several exchanges of fire and eruptions of abnormally high intensity conflict have been reported by both the local and international media and, as expected, have led to tremendous distortion and disinformation.
As the North and South Korea conflict literally exploded just days ago, most of Western and Philippine media pinned the blame perfunctorily on “Stalinist” and “provocative” North Korea, when the fact is, South Korea fired the first artillery shot.
As an Associated Press (AP) report noted: “The skirmish began when Pyongyang warned the South to halt military drills in the area, according to South Korean officials. When Seoul refused and began firing artillery into disputed waters, albeit away from the North Korean shore, the North retaliated by bombarding the small island of Yeonpyeong, which houses South Korean military installations...”
North Korea has been accused as “provocative” and “aggressive,” as well as an “agitator” in this exchange of artillery fire. But the AP report objectively revealed that it was South Korea’s military forces that made the provocation.
This bolsters the conviction of some analysts that it is one of the US’ attempts to start a much needed war in this region to revive its economy, in line with US military-political think tank RAND Corp.’s proposal of two years now.
It is important for the Filipino nation to be informed of the facts underlying this build-up of tension in the Korean peninsula. Our countrymen shouldn’t be victimized by war-mongering Western propaganda which seeks to draw the Philippines into “their” wars. By setting the record straight, we are reminding the Filipino people that there is never any positive payback for being sucked into conflicts or wars designed for other countries’ interests.
The lesson from the WWll for the Philippines is there for all to recall: Manila became the second most devastated city in the world when General MacArthur decided to use it as a center stage for his own glorification.
The American and Western economies are now in shambles, so their ruling classes desperately need to create wars (while profiteering at the same time) to distract attention from their domestic crises and their own culpability for these.
In the Philippines, the wars of the social classes continue: The ruling class, represented by the Yellow political regime and its variations (including the Liberal, Lakas, Kampi and Nacionalista parties, the Aquinorroyo leftists and civil society, such as Etta Rosales, Karina David, et al., plus the oligarchs, ad nauseum) is constantly pitted against the people.
This week, Pag-IBIG, HUDCC, NHA and other government home financing borrowers are rising up to oppose their eviction from homes which they have been amortizing for over a decade but have had difficulty keeping up with due to loss of employment, shrinking purchasing power (with the lion’s share gobbled up by power and water overcharging), and the oppressive financial policies of financing agencies raring to turn these homes over to foreign mortgage buyers such as Deutsche Bank. And this is something that mainstream media won’t be carrying in their news.
Rising political alternatives to the dominant Yellow regimes continue to be suppressed, as with the unjust detention of Sen. Antonio Trillanes IV who embodies the hopes of millions of Filipinos. The Aquino III administration may be going through the motions of responding to the cries for justice and the early release of Trillanes, but its moves in sync with like-minded Yellow elements are making a joke of this. Make no mistake: Joker Arroyo is Yellow to the core and he opposes the amnesty for our patriotic and idealistic soldiers who stood against the Gloria Arroyo regime only to mask his own complicity in one of the darkest periods of Philippines history and an era of untold suffering for the Filipino masses.
As Joker tries to put up more legal obstacles in this Palace show, suspended lawyer Alan Paguia says: Amnesty is an unconditional, political act; it does not require any admission of guilt, and requires no apology (and certainly not to Gloria as the Joker demands).
Joker Arroyo is, among other things, a legislative enforcer of the ruling class. He gave away Meralco without any compensation to what the public paid for when the state expanded its franchise coverage by four times, and allowed the electricity consumers’ payments to pay for what the Lopezes owed the government for getting it.
It is even said that when those blessings were being bestowed, Joker’s most beloved was working as a lawyer for the other party, constantly whispering into the ears of one who would decades later utter the empty phrase, “Kung Bad Ka, Lagot Ka.”
Joker complains about Trillanes’ “mutiny” against a clearly corrupt regime, but wasn’t his Edsa I made possible by the mutiny of a segment of the military against Marcos for a shallower reason — the rivalry between Generals Ver and Ramos? The truth is indeed the first casualty of war, and more so in an information war.
(Tune in to Sulo ng Pilipino, Monday, Wednesday and Friday, 6 to 7 p.m. on 1098AM; watch Politics Today with HTL, Tuesday, 8 to 9 p.m., with replay at 11 p.m., on “RP’s Home Mortgage Crisis: Ready to Explode,” on Global News Network, Destiny Cable, now Channel 8; visit our blogs, http://newkatipunero.blogspot.com and http://hermantiulaurel.blogspot.com)
Friday, November 26, 2010
Monday, November 22, 2010
Charge of the 'light brigades'
DIE HARD III
Herman Tiu Laurel
11/22/2010
For the past weeks, we have focused on the skyrocketing rate increases and leapfrogging net incomes of power companies. We highlighted Meralco’s 60-percent jump in profits from September last year of P7 billion to its target of P11 billion this year, which it even projects to surpass.
A week later, we zeroed in on Aboitiz Equity Venture’s 187-percent surge in net income to P16.8 billion, of which 80 percent came from its power generation ventures. This included the two power barges it bought at a huge bargain from the National Power Corp. (Napocor), which were later overpriced for Mindanao’s use and set as the basis for the island group’s new exorbitant electricity rates.
Last week, we highlighted the Wholesale Electricity Spot Market (Wesm)’s petition for a rate increase for the “commodity” being auctioned through its trading floor to the power distribution networks; upon which we concluded that the profiteering “…just goes on and on, keeping our power rates the highest ever in Asia.
And yet, this week brought us a new shock report: the Lopez-owned First Gen Corp. reported a net income of $66.5 million (P2.8 billion), or P301 million in just nine months. First Gen said that its unit, Energy Development Corp. (EDC) — the Napocor geothermal company privatized under the tenure of Gloria Arroyo-appointed president Paul Aquino who then joined the privatized EDC as CEO (so much for the ethics of the Aquinos) — generated the gargantuan increase in its profits. According to First Gen president Giles Puno, “…earnings growth was delivered by EDC coming mainly from the increased contribution of the plants that it acquired last year. We are fortunate that these developments are aided by the positive sentiment and growth in our economy today.”
So, a national patrimony such as EDC, which gave us very cheap electricity, is privatized so that prices can be jacked up just to profit one family’s firm. The profit swell for the four privatized power operations here brings the additional burden on the Filipino power consumers from Luzon to Mindanao to at least P28.766 billion; and these are just four of several dozens upon dozens of privatized power companies we have counted.
This added burden to consumers would not have been there if privatization had never been inflicted on us. This is P28.766 billion less money for Filipinos who would otherwise have spent it on other needs and consumables — from food to medical care, to education and entertainment, to clothes and transportation costs, to more visits to the malls and trips to provincial relations, or a trip to the beaches to spread a little more money to the rural areas.
Privatization of power is not just sucking us dry, it is sucking us dead. How do we fight back? Let’s organize into “Light Brigades” to promote the struggle, starting with the “Lights Out” campaign to continue disseminating information.
Still, after this constant focus on the matter of our debilitating power costs, a moment of comic relief did come along. It started when a wayward cellphone rang inside the session hall of the Senate, which triggered the harangue of Miriam Defensor Santiago on the “lightweights” in Malacañang, or around what Linggoy Alcuaz calls the “happy hour kitchen Cabinet.”
Santiago does have good reason to pick up her lance and charge at the lightweights, particularly Secretary Armin Luistro, who is nothing but a factotum of the Catholic hierarchy and naturally expected to execute the agenda of the Catholic Church in a government that is supposed to be separate from any religious bias. Luistro was a key element in the mobilization against the duly-elected government of President Estrada; clearly, this Luistro is not a trustworthy individual to function for a secular, democratic state.
The only problem with Miriam’s assault on the “lightweight” brigade of the Palace is that she can also be charged for the same thing. One can only imagine what Santiago faced at that moment, paraphrasing from Tennyson, “Cellphone rings to the left of her, cellphone rings to the right of her; volleyed and thundered, stormed up with shot and shell” and so she had to sally forth too. Most of the three hundred or so of our legislators today can also be included in this category, which explains why this country continues down the crazy path of deterioration.
Neither the legislature nor Malacañang has done anything to alleviate the dire plight of the nation’s residential and industrial power consumers, making millions upon millions of us suffer along with the national economy from the highest power costs in Asia, if not the world.
Fortunately, there are hopeful signs in Congress that some individual legislators are standing up to be on the truly courageous “Light Brigade” that brings to light the prevarications of state regulatory agencies. One of them, a guest in our last GNN program, Rep. Bernadette “BH” Herrera, is standing up to the oligarchs’ predatory manipulation of water and power rates. She is ably joined by the amiable congressman from Navotas-Malabon, Toby Tiangco, who will also guest with us next. Of course, there’s our own “Light Brigade” that meets every Saturday and farms out everyday to keep the struggle going. So let us all charge forth with the light that will obliterate the power pirates’ darkness!
(Tune in to Sulo ng Pilipino, Monday, Wednesday, and Friday, 6 to 7 p.m. on 1098AM; watch Politics Today with HTL, Tuesday, 8 to 9 p.m., with replay at 11 p.m., on Global News Network, Destiny Cable, now Channel 8; visit our blogs, http://newkatipunero.blogspot.com and http://hermantiulaurel.blogspot.com)
Herman Tiu Laurel
11/22/2010
For the past weeks, we have focused on the skyrocketing rate increases and leapfrogging net incomes of power companies. We highlighted Meralco’s 60-percent jump in profits from September last year of P7 billion to its target of P11 billion this year, which it even projects to surpass.
A week later, we zeroed in on Aboitiz Equity Venture’s 187-percent surge in net income to P16.8 billion, of which 80 percent came from its power generation ventures. This included the two power barges it bought at a huge bargain from the National Power Corp. (Napocor), which were later overpriced for Mindanao’s use and set as the basis for the island group’s new exorbitant electricity rates.
Last week, we highlighted the Wholesale Electricity Spot Market (Wesm)’s petition for a rate increase for the “commodity” being auctioned through its trading floor to the power distribution networks; upon which we concluded that the profiteering “…just goes on and on, keeping our power rates the highest ever in Asia.
And yet, this week brought us a new shock report: the Lopez-owned First Gen Corp. reported a net income of $66.5 million (P2.8 billion), or P301 million in just nine months. First Gen said that its unit, Energy Development Corp. (EDC) — the Napocor geothermal company privatized under the tenure of Gloria Arroyo-appointed president Paul Aquino who then joined the privatized EDC as CEO (so much for the ethics of the Aquinos) — generated the gargantuan increase in its profits. According to First Gen president Giles Puno, “…earnings growth was delivered by EDC coming mainly from the increased contribution of the plants that it acquired last year. We are fortunate that these developments are aided by the positive sentiment and growth in our economy today.”
So, a national patrimony such as EDC, which gave us very cheap electricity, is privatized so that prices can be jacked up just to profit one family’s firm. The profit swell for the four privatized power operations here brings the additional burden on the Filipino power consumers from Luzon to Mindanao to at least P28.766 billion; and these are just four of several dozens upon dozens of privatized power companies we have counted.
This added burden to consumers would not have been there if privatization had never been inflicted on us. This is P28.766 billion less money for Filipinos who would otherwise have spent it on other needs and consumables — from food to medical care, to education and entertainment, to clothes and transportation costs, to more visits to the malls and trips to provincial relations, or a trip to the beaches to spread a little more money to the rural areas.
Privatization of power is not just sucking us dry, it is sucking us dead. How do we fight back? Let’s organize into “Light Brigades” to promote the struggle, starting with the “Lights Out” campaign to continue disseminating information.
Still, after this constant focus on the matter of our debilitating power costs, a moment of comic relief did come along. It started when a wayward cellphone rang inside the session hall of the Senate, which triggered the harangue of Miriam Defensor Santiago on the “lightweights” in Malacañang, or around what Linggoy Alcuaz calls the “happy hour kitchen Cabinet.”
Santiago does have good reason to pick up her lance and charge at the lightweights, particularly Secretary Armin Luistro, who is nothing but a factotum of the Catholic hierarchy and naturally expected to execute the agenda of the Catholic Church in a government that is supposed to be separate from any religious bias. Luistro was a key element in the mobilization against the duly-elected government of President Estrada; clearly, this Luistro is not a trustworthy individual to function for a secular, democratic state.
The only problem with Miriam’s assault on the “lightweight” brigade of the Palace is that she can also be charged for the same thing. One can only imagine what Santiago faced at that moment, paraphrasing from Tennyson, “Cellphone rings to the left of her, cellphone rings to the right of her; volleyed and thundered, stormed up with shot and shell” and so she had to sally forth too. Most of the three hundred or so of our legislators today can also be included in this category, which explains why this country continues down the crazy path of deterioration.
Neither the legislature nor Malacañang has done anything to alleviate the dire plight of the nation’s residential and industrial power consumers, making millions upon millions of us suffer along with the national economy from the highest power costs in Asia, if not the world.
Fortunately, there are hopeful signs in Congress that some individual legislators are standing up to be on the truly courageous “Light Brigade” that brings to light the prevarications of state regulatory agencies. One of them, a guest in our last GNN program, Rep. Bernadette “BH” Herrera, is standing up to the oligarchs’ predatory manipulation of water and power rates. She is ably joined by the amiable congressman from Navotas-Malabon, Toby Tiangco, who will also guest with us next. Of course, there’s our own “Light Brigade” that meets every Saturday and farms out everyday to keep the struggle going. So let us all charge forth with the light that will obliterate the power pirates’ darkness!
(Tune in to Sulo ng Pilipino, Monday, Wednesday, and Friday, 6 to 7 p.m. on 1098AM; watch Politics Today with HTL, Tuesday, 8 to 9 p.m., with replay at 11 p.m., on Global News Network, Destiny Cable, now Channel 8; visit our blogs, http://newkatipunero.blogspot.com and http://hermantiulaurel.blogspot.com)
Friday, November 19, 2010
Double standard privatization
DIE HARD III
Herman Tiu Laurel
11/19/2010
Given the many issues that are basic to the well-being of the Filipino people such as electricity, water, public transport and toll ways that are not being dealt with by most columnists of mainstream media, I have made it a point to focus on them through this space. But whenever I see issues covered extensively by media being obfuscated by writers who rear their discriminatory heads, then I have to step into the fray.
The Philippine Airlines (PAL) vs PAL Employees Association (Palea) strike threat is a case in point. One the chief proponents of the privatization of state assets, economic liberalization advocate Solita Monsod, takes what I see as a double standard stand on the PAL vs Palea impasse, as she uses it as another opportunity for lambasting a favorite whipping boy of the Makati Business Club, a noisy group that shares her economic views.
That the global and local airline industry is going through precarious times is not in doubt. Monsod concedes that “the global economic crisis was in full flow in 2008 and 2009, and travel was a natural victim (with)… a 7 percent decrease in worldwide demand.” She also admits the adverse impact of new restrictions on the Philippine aviation industry by the US Federal Aviation Administration (FAA) and the International Civil Aviation Organization (ICAO) after our country was downgraded due to deficiencies in our Air Transportation Office (ATO) and the Civil Aviation Authority of the Philippines (CAAP).
What is not included, though, in that litany of problems besetting PAL is the flag carrier’s history of overstaffing before privatization, which previous management reorganizations constricted by government-led compromises could not optimally resolve. What PAL wouldn’t give to get the chance that other airlines such as Cebu Pacific had, which is to start from scratch — to start on the right foot.
One setback of PAL in the past three years came from losses on its hedge against aviation fuel price spikes in 2008. PAL reportedly incurred $150 to $300 million in losses when oil prices reversed and dove instead, as the global economic downturn took its toll.
Monsod and Palea keep attributing this loss only to management and says labor shouldn’t be punished for it. I don’t think PAL ever intended to take out that loss on anyone, but that hedge was a judgment call intended for the good of the company as a whole.
Fuel is obviously a fundamental cost in any airline operation. Securing oneself against fuel price spikes, which many expected at that time, was to PAL’s interest. A case can be made that fuel prices really could have gone right through the roof. If it had gone that way, all stakeholders in PAL — management, labor, and even government — would have reaped the benefit from the hedge.
Privatization was intended to pass management of the flag carrier from cumbersome state managers to private, professional managers. I have never been for privatization of state and public utility assets. I have fought it all the past decades; but the advocates of privatization should be consistent and leave private management’s prerogative alone so long as laws are strictly followed.
PAL’s spinoff of various non-core operations comes from a tenet of good business — focus. There is clearly nothing illegal in that spinoff, and the company is complying with its obligation to provide severance pay (increased to 1.25 month for every year of service), and offers new opportunities in the new spun-off companies to retrenched employees which would most likely lead to better future compensation as the companies grow with the synergy.
Those who expect the privatized company to perform like a social welfare enterprise could propose to start getting the state and government involved again. Do what the Japanese did to save their Japan Airlines (JAL). Their government pumped in 50 billion yen to turn it around, which was justified in JAL’s case as it is a government airline.
Detractors claim that the new spinoff companies are also invariably led by one relation or another of the PAL owners, but who best to invite new capital into this unattractive industry today than those who can assure new investors the good will with the core client?
PAL’s owners have actually unburdened government of a huge weight around its neck, and PAL’s privatization is the only privatization project where the public is ahead; unlike the privatization in power, water, toll ways, mass transit system and port handling. It’s a wonder why Monsod practically never critiques these other privatizations.
The recent bus transport strike in Metro Manila highlights another double standard: The Metropolitan Manila Development Authority (MMDA) and the Department of Transportation and Communications’ view of buses as traffic jam generators, while being blind to the over a hundred thousand private cars exclusively chauffeuring students to and from school, clogging up Edsa and its tributaries.
Buses serve five times more passengers per square meter than private vehicles, having much greater positive economic and social value. Private vehicles are inefficient commuter movers; only more “sosyal.” School buses should be mandatory in Metro Manila, where a special school bus network with communication radios and trained conductors that would unclog Metro roads by over a hundred thousand cars should be established. When I proposed this to Cory Aquino’s MMDA chief Elfren Cruz in 1991, he said: “Magagalit ang mayayaman.” (The rich will get angry.)
Frankly, this crackdown on buses may have a hidden agenda — make the MRT’s new coaches (and resulting higher rates) under the multi-million public-private partnership or PPP projects more lucrative for PeNoy’s invited “investors.”
(Tune in to Sulo ng Pilipino, Monday, Wednesday and Friday, 6 to 7 p.m. on 1098AM; watch Politics Today with HTL, Tuesday, 8 to 9 p.m., with replay at 11 p.m., on Global News Network, Destiny Cable, now Channel 8; visit our blogs, http://newkatipunero.blogspot.com and http://hermantiulaurel.blogspot.com)
Herman Tiu Laurel
11/19/2010
Given the many issues that are basic to the well-being of the Filipino people such as electricity, water, public transport and toll ways that are not being dealt with by most columnists of mainstream media, I have made it a point to focus on them through this space. But whenever I see issues covered extensively by media being obfuscated by writers who rear their discriminatory heads, then I have to step into the fray.
The Philippine Airlines (PAL) vs PAL Employees Association (Palea) strike threat is a case in point. One the chief proponents of the privatization of state assets, economic liberalization advocate Solita Monsod, takes what I see as a double standard stand on the PAL vs Palea impasse, as she uses it as another opportunity for lambasting a favorite whipping boy of the Makati Business Club, a noisy group that shares her economic views.
That the global and local airline industry is going through precarious times is not in doubt. Monsod concedes that “the global economic crisis was in full flow in 2008 and 2009, and travel was a natural victim (with)… a 7 percent decrease in worldwide demand.” She also admits the adverse impact of new restrictions on the Philippine aviation industry by the US Federal Aviation Administration (FAA) and the International Civil Aviation Organization (ICAO) after our country was downgraded due to deficiencies in our Air Transportation Office (ATO) and the Civil Aviation Authority of the Philippines (CAAP).
What is not included, though, in that litany of problems besetting PAL is the flag carrier’s history of overstaffing before privatization, which previous management reorganizations constricted by government-led compromises could not optimally resolve. What PAL wouldn’t give to get the chance that other airlines such as Cebu Pacific had, which is to start from scratch — to start on the right foot.
One setback of PAL in the past three years came from losses on its hedge against aviation fuel price spikes in 2008. PAL reportedly incurred $150 to $300 million in losses when oil prices reversed and dove instead, as the global economic downturn took its toll.
Monsod and Palea keep attributing this loss only to management and says labor shouldn’t be punished for it. I don’t think PAL ever intended to take out that loss on anyone, but that hedge was a judgment call intended for the good of the company as a whole.
Fuel is obviously a fundamental cost in any airline operation. Securing oneself against fuel price spikes, which many expected at that time, was to PAL’s interest. A case can be made that fuel prices really could have gone right through the roof. If it had gone that way, all stakeholders in PAL — management, labor, and even government — would have reaped the benefit from the hedge.
Privatization was intended to pass management of the flag carrier from cumbersome state managers to private, professional managers. I have never been for privatization of state and public utility assets. I have fought it all the past decades; but the advocates of privatization should be consistent and leave private management’s prerogative alone so long as laws are strictly followed.
PAL’s spinoff of various non-core operations comes from a tenet of good business — focus. There is clearly nothing illegal in that spinoff, and the company is complying with its obligation to provide severance pay (increased to 1.25 month for every year of service), and offers new opportunities in the new spun-off companies to retrenched employees which would most likely lead to better future compensation as the companies grow with the synergy.
Those who expect the privatized company to perform like a social welfare enterprise could propose to start getting the state and government involved again. Do what the Japanese did to save their Japan Airlines (JAL). Their government pumped in 50 billion yen to turn it around, which was justified in JAL’s case as it is a government airline.
Detractors claim that the new spinoff companies are also invariably led by one relation or another of the PAL owners, but who best to invite new capital into this unattractive industry today than those who can assure new investors the good will with the core client?
PAL’s owners have actually unburdened government of a huge weight around its neck, and PAL’s privatization is the only privatization project where the public is ahead; unlike the privatization in power, water, toll ways, mass transit system and port handling. It’s a wonder why Monsod practically never critiques these other privatizations.
The recent bus transport strike in Metro Manila highlights another double standard: The Metropolitan Manila Development Authority (MMDA) and the Department of Transportation and Communications’ view of buses as traffic jam generators, while being blind to the over a hundred thousand private cars exclusively chauffeuring students to and from school, clogging up Edsa and its tributaries.
Buses serve five times more passengers per square meter than private vehicles, having much greater positive economic and social value. Private vehicles are inefficient commuter movers; only more “sosyal.” School buses should be mandatory in Metro Manila, where a special school bus network with communication radios and trained conductors that would unclog Metro roads by over a hundred thousand cars should be established. When I proposed this to Cory Aquino’s MMDA chief Elfren Cruz in 1991, he said: “Magagalit ang mayayaman.” (The rich will get angry.)
Frankly, this crackdown on buses may have a hidden agenda — make the MRT’s new coaches (and resulting higher rates) under the multi-million public-private partnership or PPP projects more lucrative for PeNoy’s invited “investors.”
(Tune in to Sulo ng Pilipino, Monday, Wednesday and Friday, 6 to 7 p.m. on 1098AM; watch Politics Today with HTL, Tuesday, 8 to 9 p.m., with replay at 11 p.m., on Global News Network, Destiny Cable, now Channel 8; visit our blogs, http://newkatipunero.blogspot.com and http://hermantiulaurel.blogspot.com)
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