Their milking cow (1)

BACKBENCHER
Rod Kapunan
6/4-5/2011



It is irrelevant whether there would be a gain to be realized to the proposed ordinance adding a 0.5 percent increase in the assessed value of the real property just to implement the Socialized Housing Program of the Quezon City. Rather, the increasing cost for social services has become the local politicians’ favorite pastime to justify their insatiable need to increase their pork barrel. Their projects, if one has to be blunt about it, are not at all intended to ameliorate the poor, but calibrated to promote their own political agenda. We are saying this because the residents and those doing business in the city are now up in arms because the numerous taxes, licenses, permits and certification fees that have been slapped on them are supposed to vouch the boast of then-Mayor Feliciano Belmonte, now Speaker of the House, that he left a hefty P6.5-billion surplus.

The decision of some councilors to press hard its approval exposed the canard peddled by Belmonte for if it were so, all they need is to enact an ordinance to realign that alleged P6.5 billion to the proposed socialized housing program estimated to cost only P223 million without them imposing an additional burden to the property owners. More than that, in 2010, the city government appropriated P30 million under the heading of financial expenses to cover payment for bank charges, documentary stamp taxes, interest expense, and other financial charges which, according to Johnny Chang of the Movement for Better Quezon City, are indicative the city government is mired in debt. In 2009, it paid for the same financial expenses P31.281 million, and in 2008, P50 million or for a total of P111.2 million. Such amount does not reflect yet the principal for which those interests and charges are being paid for by the city government.

Already, the residents of the city are mired in taxes, licenses, business permits and certification fees to the Office of the Mayor down to the barangay level, and the argument made by its proponents led by Councilor Edcel Lagman Jr. is to comply with R.A. No. 7279, or the unpopular Lina law. True, local governments are authorized to pass an ordinance, but failure to enact could not make them liable. On the contrary, Section 43 of that law has become a dead law provision for they could have done it right after it was approved on February 2, 1992, or 19 years ago.

Nonetheless, the eagerness to ram into our throat the proposed socialized housing tax ordinance is because it is some kind of big bonanza that awaits them. It is bound to become another milestone in their continuing efforts to appease the informal urban settlers whom they have made as their ever-reliable election bailiwick. The gimmick is to keep open the pipeline for political patronage, instead of coming out with concrete solutions that would help alleviate the problems related to urban resettlement. One could be sure because the crazy idea would not help ease urban congestion, but could aggravate the problem that in the end the legitimate residents will be overwhelmed by millions of landless people all flocking to the city.

Notably, Quezon City has earned the unsalutary reputation of being called the “squatter capital” of the Philippines. As a matter of fact, the unabated inflow of squatters has been blamed to our local politicians who have been acting as their padrinos and protectors. The ugly part about this modus operandi is that many of them have been encouraged to occupy government and private lands, while in the meantime, City Hall pesters the landowners by imposing on them high taxes, even penalizing them for not paying taxes for those lands that have virtually been appropriated from them.

Many of the legitimate residents are living in small and middle-sized subdivisions who acquired their property through years of hard work. As law-abiding citizens they continue to comply with their obligations. On the other hand, squatters who do not pay anything are, in this case, about to be rewarded by a low-cost socialized housing, to be financed by those who are already burdened with high taxes. In fact, if only our councilors would squeeze a bit harder the gray matter that is inside their coconuts, they would realize that the problem is not on where to get the money, but on how to trim down their bulging pork barrel.

For one, in 2011, the mayor had a budget for his office P2.7 billion or 26 percent of the city’s total budget, an amount much bigger than that of the Vice President of the Republic; the vice mayor, P182.3 million; while the 24 councilors receive P44 million each. The worse thing is that each barangay has been is allocated the minimum of P5 million as its share of the internal revenue allocation, which explains why many of them act as “rah rah” boys of the mayor. An increase in revenue, including the proposed 0.5 surcharge on real estate property, would automatically result in an additional IRA for the “enforcers” of the mayor. As many observe, most of our barangay officials, aside from acting as rabble rousers for the mayor, are now being paid to exact more from their community than in doing their job of overseeing that social order is maintained and public services carried out down to the grassroots level.

Notably, the residents are already fuming mad at how our councilors squander their P44 million pork barrel just to greet them Merry Christmas, Happy New Year, Happy Graduation, and for the unabated construction of their lapida (tombstones) at every district boundaries. Many would not mind seeing them putting up their own lapidas, engraving or painting their names in those mediocre projects if it were their money. Alas, they are using the money collected from the resident taxpayers, which now makes them doubly shameless and corrupt. Of course, they got that cue from then Mayor Belmonte for it was he who initiated the blasphemous practice of personality cult despite him not yet being canonized as saint.

• rodkap@yahoo.com.ph

CAJO

CROSSINGS
Butch Junia
4/25-5/1/2011



Cajo is Catherine Joy. She is our first-born. She is my constant friend; the girl to dote on.

Gentle critic, sought-after fan, trusted confidante, tireless cheerleader, inspiration, reality check, morality police, TV censor and editor, Cajo celebrates her birthday today.

In case you missed it, Cajo is a combination of the first syllables of her first names. Feeling creative and angling for the unique, I coined that name for her, but before she even turned one year old, I resigned my job in Cebu, we moved back to Manila and Cajo became Cathy.

Today I still get a jolt when Brods from the Sigma Rho who were also in Cebu at that time - Jimmy Sarte, Emil Librea, Tony Jalaguena and my ka-batch Estoy Estorninos - ask about Cajo, a name only they and my former colleagues at the National Manpower and Youth Council (NMYC) still remember.

“Cajo” stirs up memories of those years when we would bring Cathy to NMYC in a basket, when our student boarders (who are now dentists) would take turns looking after her, and Cutie would leave Cathy occupied and distracted by the fluttering diapers on the indoor clothesline over her crib.

I doubt if Cathy would have memories of Cebu, because we moved before she was even one year old, but I will not forget those first smiles, the all-around crawl, the cutest yawns, the infant tantrums, the first bite of junk food and fries, the da da that I insisted sounded like “daddy”, and of course, ma ma.

Cathy would always be around her Mommy. A licensed medical technologist, Cutie resigned her teaching position at Southwestern University when Cathy was born, to be a full-time Mom. From there on, our girls got the full-time attention of a stickler for proper table, toilet and bed manners, a strict dietician and a demanding tutor who would check all homework, verify grades and talk to the teachers. On hindsight, it was best for Cathy and Tinie, as they each went their way through grade school to college.

Just as quickly, Cathy was also growing up to be a Daddy’s girl. She grew up with the Hello Kitty generation, and it would be our daily ritual to add something to her collection. It was a good thing the Hello Kitty collectibles came in small items and were not as tough on the pocket.

When she was barely five or six, Cathy was my censor. Times that we would watch TV, when the commercials, especially the White Castle plugs came on, she would ask me to look away from the set.

We also had our “stand by me” moments in Tacloban City, when we came in on a late night flight, found out that my brother had already moved to another place, did not have any ride, were stranded at the outskirts of the City, and had to walk in unfamiliar roads in the dead of night. Cathy was very brave and very trusting of her Dad, without knowing how scared I was for her.

Frank Sinatra had this popular ditty about how daughters can make us feel like fathers, and that is exactly how Cathy made me feel at that time.

For Cathy, prep, grade and high school were at Maryknoll, before it became Miriam College. Expectedly, she had her share of juvenile mischief but there were also the Honors’ Assemblies, Recognition Day and Family Days. Up until finishing high school, Cathy was under the very close watch of Mom and Dad.

College at the University of the Philippines opened up a new world for Cathy. And I know now, on hindsight, it worked best for her.

Guy Lombardo once said a man wishes he were strong enough to tear a telephone book in half, especially if he has a teenage daughter. There were many times I felt like that, but as things stand now, everything still turned out well and right for Cathy.

When she turned 18, for instance, she had her party at our garden, at home. Friends from college and high school and her sorority, which as it happens is my sister sorority, were around. We actually knew most of them very well, especially the high school friends, but still I needed some adjusting to the tequila and scotch on the tables.

If there were a phone book on hand, I would have torn it in half, but as it turned out, my worries were misplaced. Cathy can hold her drink, and so could her friends.

Since Cathy was a toddler, she has always made me feel as the “World’s Greatest and/or Number One Dad.” From her and Tinie, I have a wide collection of those T-shirts, desk pieces, posters, desk clock, etc.

Best surprise they gave me, though, was a McDonald’s cowboys and Indians Birthday Party on my 47th year. They planned, organized and executed it so well that I did not even know that they had called friends from media and from work. In fact I remember giving Cathy a dressing down for coming home late and driving along EDSA (our agreement was that she could only drive from our place to UP) not knowing that she had to get a charcoal portrait for the surprise party. She took it with composure.

According to Greek philosopher Euripides, to a father growing old, nothing is dearer than a daughter. This grown-old father has had the benefit of endearment from two daughters, and I am therefore blessed twice over.

The wisdom of the Greeks, from thousands of years ago, are still relevant and appreciated to this day.

Finally, in a keepsake book for parents and children, “Dear Mom and Dad”, among many child admonitions to parents, one item caught my eye: “Don’t ever suggest that you are perfect or infallible. It gives me too great a shock when I discover that you are neither,” the book said.

Whether we raised the bar too high or just high enough, reckoning from what Cathy and Tinie have achieved so far and what they have made of their young lives, I would hope there were not that many shockers.

Happy Birthday, Cathy, and I hope you don’t disown me for sharing these remembrances with OpinYon’s millions of readers. We love you, Cajo!

Lessons from Agusan

CROSSINGS
Butch Junia
3/7-13/2011



The struggle for power reform in Agusan Del Norte marks a milestone on March 16, 2011, when a consumer initiative to assert lawful ownership over their Electric Cooperative is decided in a referendum, a feat Meralco customers dream to do someday.

I got sent by Ike Seneres, a Brod and fellow columnist in OpinYon, the position paper of the People’s Movement for Socio-Economic Development, a group convened by Roberto Rosales and based in Butuan City, and I was quite impressed with what they have been able to do in Mindanao. Even more remarkable are their plans for their members.

Under that People’s Movement, ACOA or the Alliance for Consumer Ownership of ANECO, also chaired by Mr. Rosales, is spearheading the referendum.

Like Meralco customers, consumer-members of the Agusan Del Norte Electric Cooperative (ANECO) suffer high and oppressive rates resulting from mismanagement and utility abuse. In both cases, structural and policy flaws, compounded by antiquated martial law decrees, spotty implementation and regulatory failure, make those abuses possible.

While not exactly the same in all aspects, ANECO being a Rural Electric Cooperative (REC)) and Meralco a Private Distribution Utility (PDU), their captive customers insist that the same rules of equity and fairness, reasonableness and prudence, should apply in rate-setting.

In both cases, too, recognition of capital contribution and capital expense as consumer equity is a common cause.

ANECO OWNERSHIP. On February 14, 2011, the current management of ANECO got a unique Valentine Greeting from ACOA. Said ACOA in its General Notice: "… for lack of logistical and funding support from the Board of ANECO … (we) will conduct (on March 16, 2011) a member-consumer initiated referendum pursuant to the provisions of RA 9520…”

The referendum is ACOA’s ticket out of the clutches of the National Electrification Administration (NEA) and into the arms of the Cooperative Development Authority (CDA), perhaps a case of jumping from the fire into the frying pan. My first and only encounter with

CDA many years back was hardly inspiring, but time may have been a good teacher and CDA might be in better shape today.

In any case, NEA is not a tough act to follow. Definitely not!

RURAL ELECTRIFICATION. The country’s over 100 REC’s were created by Marcos under martial law powers in 1973, when he issued PD 269 creating NEA and placing the REC’s under its absolute and full control. While a cooperative in name, the RECs were hardly so in terms of ownership and operations. The power to hire and fire REC managers resided solely in NEA, and the funding of RECs through loans was also controlled by NEA. The power to hire and fire and the power of the purse left the RECs at the mercy of NEA.

Patronage capital, the essential and defining characteristic of a cooperative, was not recognized. Worst yet, centralized procurement of poles and other supplies, pegged against loans that coop members had to pay, led to unwanted and expensive inventories, driving rates to the roof.

In fact, imprudent borrowings led to a P18Billion write-off of REC debts in 2001 under RA 9136 or the Electric Power Industry Reform Act (EPIRA), a generous gesture to allow RECs to start with a clean slate, but with taxpayers paying the cost as government absorbed those debts.

The rural electrification program, however, for all its run-away cost and imperfections, brought electricity and progress to the countryside, reaching 98% coverage at the barangay level. In fact, according to ACOA, the RECs have built a combined asset base of P200 Billion, a very potent springboard for economic mobilization in the countryside.

This potential will be unleashed, ACOA says, when people in the countryside are economically empowered by giving them management and control of the RECs..


THE STOCK OPTION. Consumer-members of ANECO seek empowerment via their option to convert ANECO into a stock cooperative under RA 6938 or the CDA Law of 1990 and RA 9520 or the Cooperative Act of 2008.

Early liberation from NEA should have been possible under RA 6938 but ambiguities in that law and its implementing rules made CDA registration near-impossible. The rules on the call for and count of a referendum were impractical and unrealistic.

Under RA 9520, a petition by at least 300 members per district is sufficient for the call of a referendum on the stock option, curing the built-in imperfection of the original law. A 20% vote is sufficient to carry the stock option and CDA registration.

The benefits from CDA listing are many, principal of which is the exemption from taxes, including VAT, and the privilege to carry on business as a coop.

Mr. Rosales minces no words in summing up the disadvantages: non-implementation of all the exemptions by not registering with CDA is an act of great social injustice to the REC members. We agree fully, Mr. Rosales, Sir.

What I like best from the Movement’s plans, however, is the filing of estafa cases against ANECO management for collecting loan payments after the write-off of the P18Billion loans of RECs under EPIRA. What loans could those members be amortizing if those loans had already been absorbed by the government, they ask.

In fact, Mr. Rosales is right in insisting that the condoned loans be considered and credited as equity of the consumer-members, just like Meralco customers insist that capital equipment acquired from their rate payments be credited as consumer equity in Meralco.

We wish ACOA all the luck and all the best, as we watch developments in Butuan with keen interest. There are many lessons to be learned from this Movement, especially in what they have achieved.

MERALCO UPDATE. Meanwhile, we ask Meralco customers to be keenly aware of the underpinnings of Meralco’s aggressive campaign to go into generation. There are legal, policy, operational and practical issues that must be addressed here.

Meralco’s public statements on its generation projects cite a P45 Billion capital expense program now under review by the Energy Regulatory Commission (ERC), a clever juxtaposition to blur the line between generation and distribution. Nice try, but this only highlights the fact that a PDU may only go into generation, if at all, under the most rigorous oversight. Let us not forget that a PDU or Meralco can only charge us for costs that are necessary in providing us the service, i.e. distribution, NOT GENERATION. How then, are they going to book the power plant investment?

Moreover, this P45 Billion capex has already been reduced by ERC to P34 Billion, an amount we are even contesting and certainly not conceding as Gene Lualhati says this should only be P1.0 Billion, based on market growth and Meralco’s own historical costs. (I hope players and advisors in the stock market are properly apprised that Meralco’s claims with ERC are under serious challenge. Or are they that sure that no challenge at ERC can ever be serious?)

Meralco is already defending the P34 Billion capex at the ERC hearing, yet it continues to claim to the rest of the world the P45 Billion in the original application. What gives?

Anyway, this is a whole bag of issues we will tackle in our coming columns

• Email crsng_47@hotmail.com for comments, concerns and suggestions.