media partner of the year
BusinessMirror
United nations
2015 environmental Media Award leadership award 2008
www.businessmirror.com.ph
A
Show
B2-2
health&Fitness
Olympic legacy? A8
| ThursdAy, december 17, 2015 mirror_sports@yahoo.com.ph sports@businessmirror.com.ph Editor: Jun Lomibao
GOLDEN DIVE Jessica
Parratto and Amy Cozad dive to the gold medal in the women’s 10-meter synchro platform final at the USA Diving Winter National Championships in Indianapolis on Tuesday. AP
Rondo issues strong apology to gay referee
S
OLYMPIC LEGACY? R
By Stephen Wade The Associated Press
IO DE JANEIRO —A Rio de Janeiro urban planner warns that next year’s Olympics will widen the gap between the wealthy and the poor in this already socially stratified city. Orlando Santos Jr. of the Federal University of Rio de Janeiro helped research a 190-page report that cites abuses linked to the games and questions the legacy for most of Rio’s 12 million residents.
“Rio is already a very unequal city,” Santos told the Associated Press. “After the games it will be even more unfair and segregated. There will be more wealth in a few areas, but no improvement for most people.” A Rio city government spokesman contested the findings, but said city officials had not seen the entire report and declined to comment. In an e-mail the city said transportation projects being built for the Olympics—a new subway line extension and high-speed buses—would speed commuting time. The city said “due to the Olympics” Rio de Janeiro has been able to improve education, health care and housing. It has repeatedly said that out of the total games’ budget of 38.7 billion reals ($10 billion), 57 percent is private money and only 43 percent public. The report titled “Rio 2016 Olympics: The Exclusion Games” suggests areas the Switzerlandbased International Olympic Committee (IOC) should monitor. The report coincides with President Thomas Bach saying last week the IOC would start auditing money it hands out to sports organizations, including the $1.5 billion it is giving to Rio organizers to prepare South America’s first games. The white paper by “The Popular Committee for the Cup and Olympics” touches on
VINTAGE BRYANT KOBE BRYANT sets the Lakers’ play against the Bucks’ Giannis Antetokounmpo. AP
L
OS ANGELES—Kobe Bryant had 22 points and six assists as the Los Angeles Lakers beat Milwaukee, 113-95, in the Bucks’ first game since ending Golden State’s 24-0 start to the season. D’Angelo Russell had 19 points and seven assists as the Lakers took a 22-point lead in the third quarter and cruised to their second victory in 15 games, improving to 4-21 in Bryant’s farewell season. Michael Carter-Williams scored 19 points for the Bucks, who played without leading scorer Greg Monroe in their first game since snapping the Warriors’ 28-game winning streak dating to last season. Monroe was a late scratch with a sore left knee for the Bucks, who have lost 10 straight road games.
In Boston, LeBron James scored 24 points to lead the Cleveland Cavaliers to an 89-77 victory over the Celtics on Tuesday night in an uneventful rematch of their bruising first-round playoff series last season. Kevin Love had 20 points and eight rebounds in his first game back in Boston since Kelly Olynyk yanked his shoulder out of socket in the playoffs. Jae Crowder, who took a punch in the jaw from JR Smith in the series, scored 14 for the Celtics. Timofey Mozgov had nine points and a season-high 10 rebounds, scoring seven with five boards in the third quarter when Cleveland turned a five-point deficit into a 10-point lead. The Cavaliers have won three in a row since losing three straight to start the month.
games-related security, police violence, transportation, spending and housing. The report disputes the city government’s contention that most of them money for the Olympics is from private sources. It concludes that 62 percent is government money and cites documents from the Olympic Public Authority, an agency comprising all three levels of government set up to oversee games’ spending. The report says the private sector is paying less than 38 percent of the costs of the games—not 57 percent as Rio Mayor Eduardo Paes contends. It says the city’s accounting involves “omission of costs directly associated” with holding the games. “In the current financing structure created by the IOC, the Olympics are not good at promoting social fairness,” Santos said. “They [the IOC] are a billiondollar business, which is OK. But the business has to serve a wider interest of Brazilian people.” Citing information provided by the Rio city hall, the report says 22,059 families have lost their homes (a total of 77,206 people) between 2009 and 2015 from infrastructure projects related to last year’s World Cup and the Olympics. The report estimates “at least 4,120 families have been removed and 2,486 remain under threat of removal by reasons directly or indirectly related to the Olympic project.” The city hall says most displacements are unrelated to the big sports events. “In the recent era the Olympics have been used as basically a steamroller to roll over marginalized communities,” said American political scientist Jules Boykoff, who has written three books on the Olympics and is in Rio on a Fulbright research fellowship. “We’ve seen it in prior places like Beijing, London and to a certain degree in Vancouver, as well,” Boykoff added. “This has become a bit of an Olympic tradition.” The report said real-estate prices near the Olympic Park in suburban Barra da Tijuca have increased by at least 200 percent, pulling in speculators and pushing out longtime residents.
Avery Bradley scored 17 points for Boston, which was back home for the first time since taking the thenunbeaten Golden State Warriors to double overtime. In the other games, Denver defeated Minnesota, 112-100, and Sacramento downed Houston, 107-97. Randy Foye scored 19 points, and Denver picked up its sixth win in seven games. Kenneth Faried added 19 points and 10 rebounds, Will Barton had 14 points, seven boards and five assists, and the Nuggets shot 56 percent against the porous Timberwolves defense. Foye broke out of a season-long slump to hit five-of-six three-pointers, and the Nuggets hit 10 of 18 from deep as a team. Zach LaVine had 20 points and five assists and Andrew Wiggins scored 23 points for the Timberwolves, who have lost seven of their last eight games. They are 3-10 at home this season. AP
sports
It’s not like there were many good options: the Southeast Asian country is one of the worst affected by storms, volcanoes and other natural disasters. Just this week, Philippine authorities evacuated more than 700,000 people as Typhoon Nona (international code name Melor) made its landfall on Monday. Schools were shut in the Greater Manila Area and nearby
P25.00 nationwide | 3 sections 16 pages | 7 days a week
A8
AS RATE HIKE NEARS, FED HINTS ON FUTURE TO BE SCRUTINIZED
cities on Wednesday, as the storm led to major traffic jams with floods across the capital. “Can we allow the government to be paralyzed in case a disaster strikes Manila?” Arnel Casanova, president of the Bases Conversion and Development Authority (BCDA), said in an interview. “We must have a facility that will allow the government See “Clark,” A2
Neda Board OKs five agri, infra projects
T
BusinessMirror
‘Rio is already a very unequal city. After the games it will be even more unfair and segregated. There will be more wealth in a few areas, but no improvement for most people.’
Thursday 2014 Vol.17, 10 No. 40 Thursday,18, December 2015 Vol. 11 No. 70
s insurance against some natural disaster crippling the government in Manila, the Philippines is building an alternate capital. Its chosen site is an air base that was damaged 24 years ago by one of the biggest volcanic explosions of the 20th century.
akiyuki nosaka
ACRAMENTO, California—Sacramento Kings guard Rajon Rondo has offered a stronger apology for directing a gay slur at veteran National Basketball Association (NBA) referee Bill Kennedy. Rondo said on Monday his actions toward Kennedy on December 3 were out of frustration and not meant to offend anyone. Rondo issued a statement on Tuesday addressing those who viewed his initial statement as a nonapology. He said: “I want to be clear, from the bottom of my heart that I am truly sorry for what I said to Bill. There is no place on or off the court for language that disrespects anyone’s sexual orientation. That is not who I am or what I believe, and I will strive every day to be a better person.” Kennedy has told Yahoo! Sports he is “proud to be an NBA referee and I am proud to be a gay man,” adding that he chose to come out in hopes of sending a message “that you must allow no one to make you feel ashamed of who you are.” Rondo was suspended one game by the NBA for directing a derogatory and offensive term toward Kennedy. Kennedy is in his 18th season as an NBA official, having worked more than 1,050 regular-season games and five in the NBA Finals. “I wholeheartedly support Bill’s decision to live his life proudly and openly,” NBA Commissioner Adam Silver said in a statement. “Throughout his 18-year career with the league, Bill has excelled as a referee because of his passion, dedication and courage. Those qualities will continue to serve him well both as a game official and as a positive influence for others. While our league has made great progress, our work continues to ensure that everyone is treated with respect and dignity.” Kennedy worked San Antonio’s home game against Utah on Monday, receiving applause from fans when he was shown on the videoboard with the officiating crew and his name was announced.
n
Clark groomed as backup capital in times of disaster
INSIDE
Sports
A broader look at today’s business
he Nat ion a l Econom ic and Development Authority (Neda) Board, chaired by President Aquino, on Wednesday approved five big-ticket agriculture and infrastructure projects—including two that will be funded via the public-private partnership (PPP) scheme. Communications Secretar y Herminio B. Coloma Jr. said the five agriculture and infrastructure projects were given the green light following another marathon Neda Board meeting. Coloma said the Neda Board first approved the P50.2-billion Regional Prison Facilities project,
PESO exchange rates n US 47.3800
which will be implemented under the PPP scheme. The project entails the construction and maintenance of a modern prison facility in Fort Magsaysay, Nueva Ecija. According to the web site of the PPP Center, the proposed facility can accommodate 26,880 inmates, including staff housing and administrative buildings, areas for sports, work and religious activity. It will be installed with high-security equipment. Coloma said the Neda Board also okayed the P4-billion ManilaQuezon Avenue bus rapid transit, a World Bank project partly funded
Federal Reserve (the Fed) Chairman Janet Yellen removes her glasses, as she testifies on Capitol Hill in Washington on February 25. A rate increase is expected when the Fed ends its latest meeting on Wednesday. It would be the first rate hike in more than nine years. And it would raise the Fed’s benchmark rate from a record-low near zero, where it’s been for seven years. AP/Pablo Martinez Monsivais
I
t’s not about what it will do. It’s about what it will say. The worst-kept secret in the financial world is that the Federal Reserve (the Fed) is all but sure on Wednesday to raise interest rates from record lows by a modest quarter point. On that, pretty much every one agrees. The uncertainty hinges on what the Fed will say about how much and how fast it expects to raise rates again in coming months. A relatively aggressive pace would contribute to higher borrowing rates and risks slowing the economy. It could also roil financial markets. It isn’t the message investors want to hear. They’d prefer for the Fed to signal that it foresees a slow and
gradual series of rate hikes, one that would allow it to periodically assess whether the economy was sturdy enough to withstand higher rates. The Fed has kept its benchmark short-term rate near zero, since setting it there in 2008, to help save the financial system in the depths of the financial crisis. Now, with the job market all but fully healthy, the central bank is ready to begin lifting rates toward normal levels. Its policy-makers have signaled in recent months that they foresee an incremental pace. But investors want further assurance on Wednesday. See “Fed,” A2
See “Neda Board,” A2
n japan 0.3894 n UK 71.2643 n HK 6.1135 n CHINA 7.3332 n singapore 33.7224 n australia 34.0325 n EU 51.8053 n SAUDI arabia 12.6306
Source: BSP (16 December 2015)
A2
Thursday, December 17, 2015
News
BusinessMirror
House ratifies 2016 budget, but shelves salary-hike bill
T
By Jovee Marie N. dela Cruz
Meanwhile, Majority Leader and Liberal Party Rep. Neptali Gonzales II of Mandaluyong said the SSL will be approved in January next year.
“Insofar as the House is concerned, we have already approved SSL. The Senate, likewise, approved it on third [reading] last Monday. We were supposed to have the minimal disagreeing provisions in the Bicam. Had it proceeded then it could have been signed into law by P-Noy before the year ends,” he said. “On Tuesday, however, the Senate reconsidered its thirdreading approval and amended the bill. We were informed that they will approve it on third next year. But we still have to reconcile the difference before we are able to ratify the Bicam report,” Gonzales added. Under the Senate rules, “any Senator who voted with the majority may move for the reconsideration of a measure on the same day it was decided by the Senate, or within the next two session days.” Sen. Vicente Sotto III had called for the SSL to be reconsidered after Minority Leader Juan Ponce Enrile proposed some amendments to the bill. “I would like to point out the recipients are tax-paying individuals, they are not rich, they are poor, they are enlisted soldiers. They have income tax to pay, most of this [salary
adjustment] will go to consumption. The government will recover this through tax. There is a multiplier effect, you are increasing the tax revenue of the government when releasing this to the beneficiaries,” Enrile quoting in a news report. Meanwhile, the House version of the SSL seeks to strengthen the link between pay and performance through an enhanced performance-based bonus system, temper the cost of benefit while maximizing the benefits of employees, and allow higher takehome pay, especially for government personnel belonging to the lower salary grades. The measure will result in a weighted average increase of 45 percent in the compensation of all salary grades, and raise compensation of government personnel to at least 70 percent of the privatesector rate. Earlier, Budget Secretary Florencio B. Abad informed lawmakers that the 2015 SSL will be effected through a combination of a salary increase, 14th-month pay and an enhanced performance-based bonus to be implemented over a four-year period, from January 2016 to January 2019.
by the Bank of France. The transit system would take commuters all the way to Manila City Hall from Quezon City. Other projects approved were a P1.6-billion project to set up integrated fishing and marine environment and P11.4 billion in loans from the Land
Bank of the Philippines to harness agri-business in the soon-to-be abolished Autonomous Region in Muslim Mindanao “as part of peace dividends with Moro rebels.” The Neda Board also gave its go-signal to negotiations for the construction of a P23.2-billion
8-kilometer, four-lane road connecting the North Luzon and South Luzon Expressways. With the approval, the Neda said the Department of Public Works and Highways may start talks with Metro Pacific Investments Corp., the project proponent.
he House of Representatives on Wednesday ratified the 2016 P3.002-trillion national budget, but deferred action on the proposed Salary Standardization Law (SSL) of 2015 after the Senate reconsidered it on third reading.
Speaker Feliciano Belmonte Jr. said the proposed 2016 General Appropriations Act (GAA) will now be transmitted to President Aquino for signature. “President will sign it on December 22.” For fiscal year 2016, the proposed budget amounting to P3.002 trillion nearly doubles the 2010 national budget. It is also 15.2 percent more than the 2015 appropriations and represents the highest budget increase in the last six years. Under the 2016 budget, the social services sector continues to get the largest share of the budget at 36.8 percent of the national budget, or P1.106 trillion. The economic
Neda Board. . .
Continued from A1
services will get the second-largest share of the budget with 27.6 percent, or P829.6 billion, while general public services will receive 17.3 percent, or P517.9 billion. The debt burden, which is composed of interest payments to service outstanding debts, as well as net lending to government corporations, will reach an all-time low of 14 percent of the total budget, or P419.3 billion.
SSL hangs
news@businessmirror.com.ph
INC assures compliance with RTC inspection order By Joel R. San Juan
T
HE Iglesia Ni Cristo (INC) on Wednesday assured its compliance with the order of the Regional Trial Court in Quezon City for an ocular inspection of its property in Tandang Sora Avenue where expelled INC minister Felix “Angel” Manalo and sister Lottie Hemedez have been staying. It can be recalled that the RTC in QC ordered the inspection to “determine the number of and identities of all occupants, whether regular or not, as well as persons who visit and allowed access to the subject property.” INC Spokesman Edwil Zabala said the group hopes that through the inspection,“order and safety would return to the property and its occupants,” particularly after a driver of Angel reportedly fell while inside the compound. The INC also said masked and armed men were seen going in and out of the Tandang Sora property. “Bilang pagtalima sa atas ng huku-
Clark. . .
Continued from A1
to function with communications, databases, logistics.” The government of outgoing President Aquino plans to turn the former US military base, Clark City, into a backup capital, complete with facilities for government agencies, the central bank and financial exchanges, Casanova said in Manila late Monday.
Master plan
The BCDA, the state manager of former military properties, has discussed the plan with the government agency tasked to manage disaster risk, Casanova said. The master plan for the Clark development has been approved by the president, including those for the alternate capital, he said. Government agencies and the central bank were asked in September to put up business continuity centers in Clark and the BCDA is allotting about 100 hectares (247 acres) to 200 hectares for these, he said. The stock and fixed-income exchanges and the Treasury will also be invited, he said. Mr. Aquino has made disaster resiliency a priority, particularly after Supertyphoon Yolanda (internation-
Fed. . .
man, sisimulan sana sa araw na ito sa pamumuno ng mga kinatawan ng kaugnay na ahensya ng pamahalaan ang ocular inspection sa 36 Tandang Sora Avenue matapos ang paglabag sa utos ng korte ng mga kasalukuyang nakatira sa nasabing pamamahay hinggil sa pagbibigay ng talaan ng mga taong pinapayagan nilang pumasok nang walang angkop na pahintulot sa may-ari ng nasabing compound,” Zabala said in a statement. “Ang nasabing proseso, na itutuloy, ay batay sa pagnanais na ibalik at muling pangalagaan ang kaayusan at katiwasayan sa nabanggit na ari-arian, matapos mapansin ng mga kinauukulan ang paglabas-masok ng mga hindi kilala at armadong kalalakihan,” he added. The inspection order stemmed from a case filed by INC against Angel and company seeking legal injunction of its property after CCTV-recorded incidents showed unidentified men wearing masks entering and going out of the premises without prior permission from INC officials.
al code name Haiyan) killed more than 6,000 people and destroyed an entire city in 2013. The government held an earthquake drill in July in Manila, ranked among the world’s 10 most disaster-prone cities, according to Verisk Maplecroft. The nation has had frequent reminders of the disruptions that natural disasters can cause. In 1991 Mount Pinatubo erupted after lying dormant for more than 600 years, covering Clark Air Base in ash and destroying buildings.
$3.6-B railway
The BCDA is planning to build a P170-billion ($3.6-billion), 85-kilometer (53-mile) railway to help connect Clark to Manila, Casanova said. The agency could implement that via a public-private partnership deal or through a negotiated contract, he said. When the US military left in 1991, parts of Clark Air Base were used as an economic zone, where the airport is, though most of the area remains undeveloped. Clark has an international airport and is near Subic seaport, making it ideal as an alternate capital, Casanova said.
Continued from A1
One factor that could keep the pace of hikes gradual is the absence of inflation pressures. In fact, inflation remains stubbornly below the Fed’s 2-percent target level. This has resulted from global economic weakness, falling energy prices and a strong dollar, which makes imports cheaper in the US. Investors will scrutinize the Fed’s statement and Chairman Janet M. Yellen’s news conference afterward for clues to what might cause an acceleration of rate increases over the next year. “I am worried that the stronger dollar and falling oil prices have masked some underlying inflation pressures which could surface quickly as we move closer to full employment,” said David Jones, chief economist at DMJ Advisors. Still, most economists think the statement the Fed will issue when its latest policy meeting ends and Yellen’s remarks afterward will signal that while the Fed is ending an era of nearzero rates, it isn’t planning a very fast liftoff. “The Fed is going to package this
announcement in a nice holiday box with a pretty ribbon on top,” said Sung Won Sohn, an economics professor at California State University, Channel Islands. “There will be plenty of soothing words that this is just a small step that has been in discussion for some time and future increases will be very slow and gradual.” Earlier this year, speculation had centered on the likelihood of a first hike occurring in September. But last summer, financial markets tumbled after China shocked investors by devaluing its currency, fanning fears that the world’s second-largest economy was slowing more than anyone thought. The Fed chose to delay a hike. Still, Yellen continued to say that a rate increase was likely before year’s end. The central bank’s target for its federal funds rate —the interest that banks charge each other — has hovered between zero and 0.25 percent since December 2008. On Wednesday, it’s expected to modestly raise that range to between 0.25 percent and 0.5 percent. AP
News BusinessMirror
news@businessmirror.com.ph
SC upholds Comelec’s ‘No Bio, No Boto’ policy
T
By Joel R. San Juan
HE Supreme Court (SC) on Wednesday unanimously junked the petition filed by the Kabataan party-list group seeking to nullify the “No Bio, No Boto” policy of the Commission on Elections (Comelec).
Thus, the Court lifted the temporary restraining order (TRO) that it issued on December 1 enjoining its implementation, SC Spokesman Theodore Te said. In its petition, the group, through party-list Rep. James Mark Terry Ridon of Kabataan, challenged the legality of Comelec Resolutions 9721, 9863 and 10013 and Republic Act (RA) 10367, or “An Act Providing for Mandatory Biometrics Voter Registration.” The No Bio, No Boto policy provides for disfranchisement of voters without digital photograph, signature and fingerprints in their registration records. The petitioners argued that the
new policy violates the Constitution as it adds a substantive requirement for Filipinos to be able to exercise their right to suffrage. In resolving the issue, the Court distinguished the concept of “qualification” as far as suffrage is concerned, and the concept of “registration” where the latter is jurisprudentially regarded as only the means by which a person’s qualifications to vote is determined. “Registering is only one step toward voting, and it is not one of the elements that makes the citizen a qualified voter. Thus, unless it is shown that a registration requirement rises to the level of a literacy, property or other substantive
requirement as contemplated by the framers of the Constitution— that is, one which propagates a socio-economic standard which bereft of any rational basis to a person’s ability to intelligently cast his vote and to further the public good—the same cannot be struck down as unconstitutional, as in this cae,” the Court ruled. The decision was written by Associate Justice Estela Perlas Bernabe. The SC noted the regulation is the least restrictive means of updating registration for those already registered under RA 8189 or the Poll Automation Law. “The regulation was narrowly tailored to achieve the compelling state interest of establishing a clean, complete, permanent and updated list of voters, and was demonstrably the lewst restrictive mesns to promote the interest,” it added. The Comelec immediately expressed relief that the SC gave consideration to the position of the poll body.
Oral arguments
MEANWHILE, the Court decided to hold an oral argument on the petition filed by losing senatorial bet Rizalito David seeking the reversal of the decision issued by the
Senate Electoral Tribunal (SET) which declared Sen. Grace Poe as a natural-born Filipino citizen, thus, qualified to serve in the Senate. The oral argument was set on January 19 at the SC en banc session hall. The Court also required Poe to comment on the petition within a nonextendible period of 15 days. In his 74-page petition filed on December 8, David asked the high court to reverse the majority decision of the SET that declared Poe as a natural-born Filipino eligible for her senatorial post. He alleged that the five senators who voted in favor of their colleague —Vicente Sotto III, Loren Legarda, Pia Cayetano, Cynthia Villar and Bam Aquino—violated the Constitution and the Lerias Doctrine, which warned politicians who are members of the electoral tribunals against partisan voting. In dismissing his appeal, the five senators maintained their position that Poe should be considered a natural-born despite being a foundling based on customary international laws providing right of every human being to a nationality and the State’s obligations to avoid statelessness and to facilitate the naturalization of foundlings.
Editor: Dionisio L. Pelayo • Thursday, December 17, 2015 A3
Nona death toll now 12
T
HE death toll from Typhoon Nona has climbed to 12 on Wednesday, but the number is expected to increase even as local and national disaster-mitigation agencies prepare for another weather disturbance which may enter the country on Thursday in Mindanao. Nona also damaged at least P159,596,070 worth of agriculture products and infrastructures, but the amount is expected to, likewise, increase as the reports that have reached Camp Aguinaldo merely covered two of the eight provinces affected by the typhoon. The National Disaster Risk Reduction and Management Council (NDRRMC), however, said it was still confirming the number of deaths even as it warned that dangers of landslides and widespread flooding still persists in all the Nona-affected areas. While the government works to cope up with the devastation brought by Nona in Luzon and in the Visayas, state weather forecasters said the weather disturbance off Mindanao, which will be called Typhoon Onyok when it enters the country, is expected to enter the Philippine Area of Responsibility on Thursday. Onyok will compound the ongoing relief and rehabilitation works for Nona, which left eight roads and one bridge still flooded in Regions 4B, 5 and 8. Nona, which was 90 kilometers west of Ternate, Cavite, as of 11 a.m. on Wednesday and was moving at the speed of 12 kilometers per hour, is expected to weaken into a tropical depression as it veers out of the
country on Friday. Preliminary data from the NDRRMC showed that Nona forced the preemptive evacuation of at least 165,554 families, or 742, 991 individuals in Regions 4B, 4A, 7 and 8. It also triggered power interruptions in five cities and 100 towns in Regions 4A, 4B, 5 and 8 due to toppled trees and snapped-out power cables, while cutting telecommunication lines in Northern Samar. The Philippine Red Cross (PRC), meanwhile, provided assistance to almost 1,000 families who were badly affected by Nona in the provinces of Oriental Mindoro, Marinduque, Catanduanes, Masbate and Occidental Mindoro Besides hot meals, PRC also provided welfare desks to the affected individuals and families in Western Samar, Batangas, Masbate, Bataan, Laguna, Marinduque, Romblon, Oriental Mindoro, Camarines Norte, Camarines Sur, Albay, Catanduanes, Aklan and in Valenzuela City. Likewise, PRC gave medical assistance through first aid treatment, blood pressure taking and transport of patients to medical facilities in the affected areas. “We at the Philippine Red Cross are also continuing to gather reports from our chapters and assessment teams so we can immediately know the pressing needs of the affected population and send the assistance that each particular area badly needs,” PRC Chairman Richard J. Gordon added. Rene Acosta
and Claudeth Mocon-Ciriaco
A4 Thursday, December 17, 2015 • Editor: Angel R. Calso
Opinion BusinessMirror
editorial
‘Tanim-bala’ again? Incredulous!
’
‘
E
arly last month the BusinessMirror came out with an editorial pointing to the growing number of incoming and outgoing passengers being detained for bullets found in their luggage as they pass through airport security at the Ninoy Aquino International Airport (Naia). We called this a global embarrassment for the Philippines, in general, and the Aquino administration, in particular. That opinion piece was just one of the media voices that helped expose the tanim-bala racket, which led the Senate Committee on Public Services and the Senate Blue Ribbon Committee to conduct a joint hearing on the shameless Naia shakedown scheme a few days later. We thought the Senate investigation that led to the dismissal and filing of charges against a number of airport security personnel involved in the tanim-bala scheme would deter their ilk and stop the extortion activities at Naia. We were wrong. After a short cooldown, the schemers are back in the business of putting bullets into the bags of travelers. For us at the BusinessMirror, the issue is closer to home this time because the subject of their illegitimate “arrest” on Tuesday night is our publisher’s US-based friend who recently came home to play in a local golf tournament. The intrepidity of tanim-bala schemers at the country’s premier gateway has been baffling. Members of the global media, including international news magazine Time, which made its own investigation on the tanim-bala scheme, are convinced that airport security staff at Naia have been dropping bullets into the bags of unsuspecting passengers. After observing up close and personal the horrific experience of our publisher’s friend and members of his family who missed their flight back to the US after an overnight detention at the airport, we deeply understand the sufferings and outrage felt by tanim-bala victims. As things stand, however, there’s no course for retribution for the hapless victims. This publication would be remiss in its duty if it fails to remind government officials not to treat the extortion activities at Naia lightly. As we pointed out before, government inaction will only embolden the tanim-bala scammers, who seemed undeterred by the scathing social-media attacks and cutting news headlines. They do not discriminate in their extortion activities: Foreigners, balikbayan, old women, overseas Filipino workers, students and even persons with disabilities are all fair game to them. If we believe recent reports, the racket has been going on for quite some time, under the very noses of airport officials. The government has spent millions of taxpayers’ money to upgrade the Naia facilities. The Department of Tourism is spending millions of taxpayers’ money in its effort to lure foreign tourists to come visit the Philippines. All of these efforts, however, will go to waste if government authorities fail to drive away the tanim-bala scammers from the country’s premier gateway. A critical facility like the Naia is where foreigners’ first impressions of the Philippines are forged. We have some of the best tourism spots in the world. That’s the reason the Philippines is touted as a land of opportunity. Without firm government action on the tanim-bala schemers, these rascals might yet succeed in making the Philippines a land of wasted opportunity. Since 2005
BusinessMirror A broader look at today’s business Ambassador Antonio L. Cabangon Chua Founder Publisher Editor in Chief
T. Anthony C. Cabangon Jun B. Vallecera
Associate Editor News Editor City & Assignments Editor Special Projects Editor
Jennifer A. Ng Dionisio L. Pelayo Vittorio V. Vitug Max V. de Leon
Online Editor
Ruben M. Cruz Jr.
Research Bureau Head Creative Director Chief Photographer Chairman of the Board & Ombudsman President VP-Finance VP-Corporate Affairs VP Advertising Sales Advertising Sales Manager Group Circulation Manager
Dennis D. Estopace Eduardo A. Davad Nonilon G. Reyes
Publishing, Inc., with offices on the 3rd floor of Dominga Building III 2113 Chino Roces Avenue corner De La Rosa Street, Makati City, Philippines. Tel. Nos. (Editorial) 817-9467; 813-0725. Fax line: 813-7025. (Advertising Sales) 893-2019; 817-1351, 817-2807. (Circulation) 893-1662; 814-0134 to 36. E-mail: news@businessmirror.com.ph.
www.businessmirror.com.ph
regional offices
n DXQR -93dot5 HOME RADIO CAGAYAN DE ORO E-MAIL ADDRESS: homecdo@yahoo.com ADDRESS: Archbishop Hayes corner Velez Street, Cagayan de Oro City CONTACT NOs.: (088) 227-2104/ 857-9350/ 0922-811-3997 n DYQC -106dot7 HOME RADIO CEBU E-MAIL ADDRESS: homecebu@yahoo.com ADDRESS: Ground Floor, Fortune Life Building, Jones Avenue, Cebu City CONTACT NOs.: (032) 253-2973/ 234-4252/ 416-1067/ 0922-811-3994 n DWQT -89dot3 HOME RADIO DAGUPAN E-MAIL ADDRESS: homeradiodagupan@ yahoo.com ADDRESS: 4th Floor, Orchids Hotel Building,
Trying something different John Mangun
OUTSIDE THE BOX
F
ilipinos will have bought approximately 300,000 new automobiles and commercial vehicles by the time 2015 ends. The latest figures for the eight months ending August show a 20-percent increase over the same period in 2014.
But that is nothing compared to what the sales could have been if the Philippines would just follow the US model of credit expansion. Look how underdeveloped the Philippines is. In the US you can buy a $30,000 2015 Jeep Cherokee SUV without putting up a down payment. The monthly payment will go for six years at zero-percent annual interest rate and you get $500 cash when you take delivery. Of course, you have to have a job with an annual salary of at least $40,000 a year and a perfect payment record on past debts. But about 55 percent of all Americans can get a car deal close to “zero down-zero interest.” Here in the Philippines, though, we still operate on the silly outdated idea that when you buy something, you should actually have to take at least some money out of your pocket to pay for it. By the time you are reading this, the US Federal Reserve Open Mar-
Rizal Street, Dagupan City CONTACT NOs.: (075) 522-8209/ 515-4663/ 0922-811-4001 n DXQM – 98dot7 HOME RADIO DAVAO E-MAIL ADDRESS: home98dot7@gmail.com ADDRESS: 4D 3rd Floor, ATU Plaza, Duterte Street, Davao City CONTACT NOs.: (082) 222-2337/ 221-7537/ 0922-811-3996 n DXQS -98dot3 HOME RADIO GENERAL SANTOS E-MAIL ADDRESS: homegensan@yahoo.com ADDRESS: 2nd Floor, Penamante Clinic Tiongson Street, General Santos City CONTACT NO.: 0922-811-3998 n DYQN -89dot5 HOME RADIO ILOILO E-MAIL ADDRESS: homeiloilo@yahoo.com
ADDRESS: 3rd Floor, Eternal Plans Building, Ortiz Street, Iloilo City CONTACT NOs.: (033) 337-2698/ 508-8102/ 0922-811-3995 n DWQA -92dot3 HOME RADIO LEGAZPI E-MAIL ADDRESS: homeradiolegazpi@ yahoo.com ADDRESS: 4th Floor, Fortune Building, Rizal Street, Brgy. Pigcale, Legazpi City CONTACT NOs.: (052) 480-4858/ 820-6880/ 0922-811-3992 n DWQJ -95dot1 HOME RADIO NAGA E-MAIL ADDRESS: homenaga@yahoo.com ADDRESS: Eternal Garden Compound, Balatas Road, Naga City CONTACT NOs.: (054) 473-3818/ 811-2951/ 0922-811-3993
Printed by brown madonna Press, Inc.–San Valley Drive KM-15, South Superhighway, Parañaque, Metro Manila
ket Committee should have raised its base interest rates...or not. Let’s assume for a moment that the rate increase is 0.25 percent. When you think about it, that is an insignificant amount equivalent to 25 centavos of that P100 bill in your wallet. However, because of all those great car purchase deals—among other credit buying from the government, business and personal— the total US debt is about 325 percent of total US economic output. That total debt is currently about $60 trillion. Adding 0.25 percent to the current interest rate adds about $150 billion to the current interest payments on that debt. That should not be any big deal at all since that amount is less than 1 percent of the total US GDP. That is like you having a P60,000 balance on your credit card and having to pay P150 more a year in interest. So why is there all this panicking
about the Fed raising interest rates? You as a Filipino do not have any understanding of how fragile the US economy has become. You may understand poverty and extreme poverty in the Philippines. You may have relatives in the US that tell you things are going all right. You may think about that no-down-no interest car you could be buying if you were in Los Angeles and the higher salaries there. But the overall reality is something completely different. If as an American you have no debt and $10 (P480) in the bank, you have a greater net worth and are richer than about 25 percent of all Americans. A study released this past September shows that there are 1.5 million “ultrapoor” households —not individuals—in the US living on less that $2 per day. That is about 2 percent of the total US population. They live the same way poor Filipinos do, scavenging for bottles and cans to sell and selling their blood once a week just to survive. And this is beyond any government assistance. According to the US Census Bureau, 49 percent of all Americans now live in a home that receives money from the government each month, and nearly 47 million Americans are living in poverty right now. For the poorest 20 percent of all Americans, median household wealth declined from negative $905 in 2000
to negative $6,532 in 2014 and it is all because of increased debt. The increase in debt payments due to a tiny interest-rate increase will eventually have to be paid one way or the other by all 320 million Americans through higher prices or reduced services. This amounts to $468 per person. Hopefully, you have never been in a financial situation where your budget is exact, to where an unexpected P500 expense means you can’t pay your electricity bill. That is the US today. It was not supposed to be this way. Debt increased to keep the economy going, expecting that economic growth would kick in to make everything all right. The last year has seen massive percentage price decreases in the following commodities: Crude oil, -35; Natural gas, -45; Wheat, 22; Coffee, -28; Copper, -28; Coal, -17; and Aluminum, -57. However, economic growth just did not happen. Now governments in the West are desperate. So why a US interest-rate increase now? Nothing else has worked to get the economy going so let’s try something completely different. E-mail me at mangun@gmail.com. Visit my web site at www.mangunonmarkets.com. Follow me on Twitter @mangunonmarkets. PSE stock-market information and technical analysis tools provided by the COL Financial Group Inc.
A promise from Paris: Hope for the earth
Judge Pedro T. Santiago (Ret.) Benjamin V. Ramos Adebelo D. Gasmin Frederick M. Alegre Marvin Nisperos Estigoy Aldwin Maralit Tolosa Dante S. Castro
BusinessMirror is published daily by the Philippine Business Daily Mirror
HOM
12172015
interesting to note that the planet has already warmed by about 1°C since preindustrial times; a five-year cycle for reviewing vows to reduce carbon emissions; embedding a system for measuring and monitoring nations’ pledges to reduce greenhouse-gas emissions and preparing, maintaining and publishing their own greenhouse-gas reduction targets; funding by rich and developed countries of around $100 billion (£66 billion) a year in order to help the poor nations change from fossil fuel to green forms of energy by 2020.
and users have not done enough and that what was achieved was a lackluster rich country template of appeasement. All fangs, no bite. James Hansen, a climate-change professor, ridiculed the agreement and called it a fraud because “there is no action, just promises.” He also dismissed the same by saying that the aim of reducing temperatures to 1.5°C is just an empty declaration. Without taxing greenhouse emissions, the provision has no leg to stand on. Others were more virulent in saying that the 1.5°C sounds good, but that the pact provides no definite timescales, thereby ambiguous at best. Greenpeace members, on the other hand, complained that the agreement should be bold and outright to say that we need to quit oil, coal and gas by 2050 at the latest or some earlier date. In fact, during the height of the talks, protesters in Paris also demanded that large emitters should be made answerable for their deeds by paying huge damages or their officers imprisoned for numerous losses and deaths caused by climate changerelated natural calamities and disasters.
Proof needed
Keeping our hope alive
While most of the world cheered this covenant, many climate change and environmental activists downplayed the event and complained that the countries which are large fossil-fuel dependents
The journey toward fulfilling reduction in emissions would involve a massive hearts and minds change of how people acquire and use energy. The natural tendency is to use fuel that is cheaper and
Ariel Nepomuceno
DECISION TIME
T
he historic and much-awaited climate accord executed in Paris is a very significant development in a very long struggle to fight for a planet that is continuously being threatened by the harmful effects of burning fossil fuel.
The events and drama behind the signing of the climate-change pact mirror the true priorities, agenda and ability of the nations, both rich and poor, to sacrifice purist political and economic goals to secure the long-term interest of saving the earth. A tearful Laurent Fabius, the French foreign minister, hailed the agreement as a major breakthrough and one which everyone could be proud of after tough negotiations among global leaders and stakeholders.
Agreement for the future The pact, considered legally binding, essentially delivers the following commitments: Keep the rise in global temperatures well below 2°C compared to pre-industrial times, while working to limit them even more, to 1.5°C. It is
never mind the consequences. As such, big investments in education, training and research should be done to concretize the pledges made by the participants to this historic pact. As we know, the agreement needs ratification by governments from at least 55 countries, which happens to represent approximately 55 percent of global emissions. This is now the most critical hurdle to pass—how to harness the political will of the governments concerned to crystallize the key takeaways from the Paris summit. Everyone is not a stranger to how China and the USA struggled to agree to the 1997 Kyoto protocol, Copenhagen in 2009 and even in Paris. Debates on the exact wordings of the stipulations, how to make the pact binding and how rules should be different on a country to country basis depending on economic, political and social strength were the sources of friction. But Paris produced this and it is something to begin with. The targets are there, the vision is clear and concrete commitments have been laid out for countries to execute and implement if ratified. It is a great and brave starting point and we should celebrate it and work together on both national and international levels to make the promise of Paris a reality for the planet, a here and now for all of us and the generations to come.
Opinion BusinessMirror
opinion@businessmirror.com.ph
Let us see your face Dissecting the Tax Incentives Management Msgr. Sabino A. Vengco Jr. and Transparency Act
Alálaong Bagá
Atty. Pierre Martin D. Reyes
Tax law for business
T
he Tax Incentives Management and Transparency Act (Timta)—which is a priority economic reform legislation of the Aquino administration, has been a bone of contention for quite some time—pitting business against government, the legislature against the executive, the lower house against the upper house of Congress and even executive departments, namely, the Department of Finance (DOF) and the Department of Trade and Industry (DTI), against each other. After much debate, the Timta has been passed and signed into law. In October 2015 the two houses of Congress have ratified the bicameral version, which reconciles the conflicting provisions of House Bill 5831 and Senate Bill 2669. And just on December 8, the Timta has been signed into law by President Aquino as Republic Act 10708. In this article, we dissect the Timta and determine its implications to business. The Timta has, for its avowed purpose, the promotion of fiscal accountability and transparency in the grant and management of tax incentives by developing means to promptly measure the government’s fiscal exposure on these grants and to monitor, review and analyze the economic impact of and to optimize the benefit of such tax incentives. Tax incentives are defined by the law to refer to fiscal incentives administered by investment promotion agencies (IPAs), such as income-tax holidays, exemptions, deductions, credits or exclusions from the tax base, to “registered business entities.” IPAs pertain to the various and quite numerous government entities created by law to promote investments in the country and to administer tax and nontax incentives, such as the Board of Investments, Philippine Economic Zone Authority and the Bases Conversion and Development Authority, to name a few. Registered business entities are basically those businesses registered with the IPAs. The Timta has three salient features: (1) filing of tax returns and submission of tax incentives reports; (2) monitoring of tax incentives; and (3) conduct of a cost-benefit analysis on tax incentives. The first feature on filing of tax returns and submission of tax incentives report is provided for in Section 4 of the Timta. The said provision sets out two requirements. First, all registered business entities are required to file their tax returns and pay their tax liabilities, on or before the deadline provided under the National Internal Revenue Code, as amended, using the electronic system for filing and payment of taxes of the Bureau of Internal Revenue (BIR). Second, all registered business entities are now required to file with their respective IPAs a complete annual tax incentives report of their income-based tax incentives, value-added tax and duty exemptions, deductions, credits or exclusions from the tax base, within 30 days from the deadline for filing of tax returns and payment of taxes. The IPAs are then obligated to submit to the BIR the said annual tax incentives reports within 60 days from the end of the deadline for filing of the tax returns. Noncompliance with the above filing and reportorial requirements shall subject the registered business entities to penalties to be imposed by the BIR, namely: P100,000 for the first violation, P500,000 for the second violation, and cancellation of the registration of the registered business entity for the third violation. Section 5 of the Timta lays down the second feature on tax-incentives monitoring. Under the said section, the BIR and the Bureau of Customs (BOC) are to submit to the DOF the
The Timta has, for its avowed purpose, the promotion of fiscal accountability and transparency in the grant and management of tax incentives by developing means to promptly measure the government’s fiscal exposure on these grants and to monitor, review and analyze the economic impact of and to optimize the benefit of such tax incentives. following: (a) the tax duty incentives of registered business entities as reflected in their filed tax returns and import entries; and (b) actual tax and duty incentives as evaluated and determined by the BIR. The DOF shall maintain a single database for monitoring and analysis of tax incentives granted. For purposes of monitoring and transparency, the DOF will submit to the Department of Budget and Management the aggregate data. As to the third and last feature, Section 6 of the Timta mandates the National Economic and Development Authority to conduct a cost-benefit analysis on the investment incentives to determine the impact of tax incentives on the Philippine economy. Based on the foregoing features, will the Timta cause major upheaval to businesses? Not so much. All told, the Timta is a carefully constructed compromise. Business can breathe a sigh of relief as the Timta does not, in anyway, affect or control the tax incentives, which are now currently being enjoyed by registered business enterprises. The law itself states that it shall not diminish or limit, in whatever manner, the amount of incentives that IPAs may, nor will it prevent, deter or delay the promotion and regulation of investments, processing of applications of registration, and evaluation of entitlement of incentives by IPAs. Gone is the proposed creation of the Tax Expenditure Account in the General Appropriations Act, which would have limited to grant of tax incentives. Also, the IPAs would no longer be required to submit applications for tax incentives to the BIR for validation and modification. Note, however, that even with a clearly watered down Timta, registered business entities should not be complacent when it comes to tax compliance. While the Timta may not have provided the BIR any degree of control over the grant of tax incentives, the law does provide it with one thing when it conducts assessments: information. The author is a junior associate of Du-Baladad and Associates Law Offices (BDB Law), a member-firm of World Tax Services (WTS) Alliance. The article is for general information only and is not intended, nor should be construed, as a substitute for tax, legal or financial advice on any specific matter. Applicability of this article to any actual or particular tax or legal issue should be supported, therefore, by a professional study or advice. If you have any comments or questions concerning the article, you may e-mail the author at pierremartin.reyes@bdblaw.com. ph or call 403-2001 local 311.
I
N the belief that God is the shepherd and protector of His people, the psalmist begs God to let them see His face and give them new life (Psalm 80:2-3, 15-16, 18-19). Mary’s visit to the house of Zechariah signifies the coming of the Lord in the womb of His mother who believed in the divine promise (Luke 1:39-45).
Come to save us IN the midst of disaster and suffering, the psalmist prays that God will look favorably at Israel and come and save them. Confidence in God’s power and love is expressed in the images used for Him. He is referred to as the “shepherd of Israel” who knows His flock intimately and hears their cries. God is called upon to “hearken,” and from His heavenly throne surrounded by the Cherubim, to stir up His might and show it in favor of His flock. The shepherd, who brings his flock to verdant pastures and protects them from predators, surely will come to rescue them; He will come and let them see His face of mercy and compassion. God is also referred to as the “Lord of hosts,” the mighty leader of many cohorts of soldiers, majestically enthroned in heaven and begged to look down and see the condition of his people. God is next pictured as a
cultivator of vines. Vineyard keepers are dedicated and patient persons, just like shepherds, solicitous of their wards. That is why the psalmist pleads with God to “take care of this vine” (Israel) and protect what His right hand has planted. God’s help is expected to be with the favored one at His right hand (the king), the son of man whom God made strong for the sake of His people. And the people themselves promise in return that, if given new life and another chance, they will call upon God’s name in adoration and will be determined not to turn their back on Him ever again.
The infant leaped for joy
Reminiscent of the joy that filled David when he welcomed and leaped with gladness before the Ark of the Covenant entering Jerusalem (2 Samuel 6:14-15), the child in Elizabeth’s womb leaped with joy as she heard Mary’s greeting in entering
Thursday, December 17, 2015
the house of Zechariah. Mary is the new Ark of the Covenant, the living tabernacle of God’s saving presence, carrying in her womb the glory and might of God coming to be in the midst of His people. As the first to experience the divine presence in and through Mary, Elizabeth was filled with the Holy Spirit, the guarantee that, indeed, God has returned and is again with them. And she exalts Mary and her child, as she recognizes and praises the unborn baby as the Lord and her kinswoman Mary as “the mother of my Lord,” a humbling, awesome experience for Elizabeth who feels so unworthy of the divine visitation. Elizabeth’s name was earlier dropped by Gabriel in the conversation with Mary, as an added argument to drive home the point that the mystery unfolding is all God’s doing. The barren one is also bearing a son, for nothing is impossible with God. Mary has picked it up from there, setting out in haste to the hill country in Judah, not to check out the angel’s story, but clearly to share her transcendent experience with someone who knows about them too; Mary, after the dialogue with an angel, was in search of a more downto-earth conversation with someone also pregnant by the divine will, with a fellow believer, to process what has happened to her.
Blessed are you who believed
AS Elizabeth manifested her own
Trump’s coalition of the descending
S
By Francis Wilkinson | Bloomberg View
peaking to an Iowa crowd in September, Donald Trump said, it’s hard to make headway in the world when “our leaders are so stupid and so incompetent and so inept.”
This has been a popular refrain from Trump. And whether applied to Washington leaders, in particular, or American elites, in general, it isn’t actually true. Yet, the reason it isn’t true is instructive, and more than a little alarming if you’re a stereotypical Trump supporter—white, male and without a college degree. If the goal in Washington really were to elevate Trump’s blue-collar white males and make them feel more secure, then “stupid” would be an apt description because the opposite effect has been achieved. Average hourly wages in the US have been stagnant for half a century. Median household income has only risen for those toward the top of the income distribution. Earnings for male high-school graduates have plummeted since 1970. But who in the American power grid is actively pursuing the goal of
elevating such people? Neither Democratic nor Republican elites seem overly concerned with Trump’s crowd. Bernie Sanders would surely make a play for their support if he could get a hearing. But the Democrats are, otherwise, dreaming of dominance with their coalition of the ascendant. That coalition, the product of decades of politically costly investments that have only begun to pay a return, is female, black, Hispanic and Asian, with highly educated whites pitching in. It relies less and less on the votes of white males without college educations, and the coalition’s new members, many of whom have suffered discrimination, aren’t much saddened by the relative decline of white male status. The Republicans, on the other hand, have seemed to heartily endorse white male working-class rage,
wearing their constituents’ class grudges on their rolled-up sleeves. But they have shown scant interest in the efforts of so-called reform conservatives, for example, to address the economic plight of the working class (or to salvage their hard-pressed families). Republicans are devoted, instead to cutting the taxes paid by their donors and others at the top of the wealth-distribution scale, and abolishing the regulations applied to their businesses. The elites of both parties have mostly abandoned Trump’s Coalition of the Descending. Its members have only Trump, who promises to smite their enemies— Mexicans, Muslims, Chinese, “waves” of Japanese—and to use his unique greatness to win battles in their behalf. It’s ridiculous, of course. But at least it’s a new variation on the theme these voters have heard for a quarter century or more. In 1991 Arkansas Gov. Bill Clinton announced his presidential campaign decrying dysfunction and stasis in Washington. He promised to help American workers retool to compete in a rapidly globalizing world. “We must meet
Taiwan’s fragile success story By Cass R. Sunstein Bloomberg View
T
hese days, Americans don’t think a lot about Taiwan. That’s a shame. A thriving democracy in a region with too few of them, Taiwan also faces unique challenges, not least because of its ambiguous legal status and the possibility that it will eventually be absorbed into China—perhaps, by force. Elections next month, which a pro-independence party is expected to win, could mark a turning point. Americans have plenty of reason to pay attention. I spent a few days last week in Taiwan, giving a series of lectures and also meeting with both the current President Ma Ying-jeou and Tsai Ing-wen, who is highly likely to succeed him. I found a country that is one of the world’s bright spots. It could easily be taken as a model for others, but its complex relationship with China could ultimately threaten regional stability. To appreciate the current situation, it’s necessary to understand some history. China’s warring factions were unified in 1928 by Chiang Kai-shek, who ruled
what he called the Republic of China for nearly 20 years. But in 1949 the Communists, led by Mao Zedong, routed Chiang and his supporters, who fled to Taiwan, declaring it to be the true Republic of China (ROC, as it is often called today). Mao insisted Taiwan was part of China and had no legitimate claim to independence. From 1949 to 1975, Chiang ran Taiwan in an authoritarian manner (and within Taiwan, he is now widely regarded as a tyrant). The period is called the “White Terror,” a system of one-party rule in which many dissenters were imprisoned or killed. Martial law continued until 1987. Since that time, there has been a multiparty system, with intense competition between the Kuomintang (KMT) and the Democratic Progressive Party (DPP) (founded, illegally, in 1986). The KMT’s Ma has made public apologies for the abuses and horrors of the White Terror and awarded billions of dollars in compensation. The major division between the two parties involves continuing but sometimes subtle disputes over the precise relationship with China. The KMT supports closer
ties, especially economic ones. While resisting the idea of unification, the KMT also rejects the idea of national independence for Taiwan and continues to endorse a modified form of the “one China” idea. Tsai’s party, the DPP, rejects that idea, insisting Taiwan has carved out a distinctive national identity. The divide has a strong generational component. A substantial percentage of people under the age of 40 strongly support Taiwan’s independence. They see it as having a history and identity of its own. The expected victory of the DPP in next month’s elections attests to the growing electoral power of the younger generation: With each year, the people of Taiwan increasingly see themselves as a separate nation, with its own values and culture. When we spoke, Ma stressed that Taiwan faces daunting economic challenges. Its ambiguous status (is it a country or not?) severely complicates entry into the free trade agreements that greatly benefit its Asian competitors. Ma met with Chinese leader Xi Jinping in Singapore last month, the first such meeting since
A5
faith in the child in Mary’s womb and her confidence in Mary herself, it is Mary’s faith that Elizabeth prophetically highlighted. Mary’s blessedness and abundance in divine grace is rooted in her faith that what God made known to her in the annunciation would be fulfilled. What the angel said of Mary in that perplexing greeting: “full of grace,” “the Lord is with you” are all true according to this elderly woman inspired by the Holy Spirit. Mary has opened herself completely to God’s power in believing that she would, indeed, conceive by the Holy Spirit and bear a son, and that her son would be named Jesus meaning God is saving His people. Mary was naturally overwhelmed by the angel’s announcements, but in identifying herself as the “servant” of the Lord, she indicated that what she heard she would act on, a hearer and a doer of God’s Word, a perfect disciple and believer whose only desire is that everything be carried out according to the divine will. Alálaong bagá, Mary (Elizabeth too) has seen the face of God, the face of love and mercy. The new life from God has begun; the Lord has come to save His people. In faith she surrendered herself to God’s plan of salvation. Join me in meditating on the Word of God every Sunday, 5 to 6 a.m. on DWIZ 882, or by audio-streaming on www.dwiz882.com.
the competition and win,” he said. Despite env iable economic growth during Clinton’s presidency, working-class Americans, nonetheless, sank deeper into the globalized labor pool. Yet the soggy political theme of “compete and win” stayed afloat. “Senator Rubio believes that American workers can compete against anyone in the world,” a spokesman for Marco Rubio said in 2013. What goes unmentioned is that unskilled and semi-skilled Americans can’t readily compete against low-wage rivals without earning lower wages themselves. Trump is not telling workingclass voters they can go head-tohead against low-wage competitors. He’s telling them he will make those competitors disappear and rescue Americans from a rigged game. He’ll make it turn out right. Surely, on some level, his audiences understand how vacuous that vow is. But you can’t blame the Coalition of the Descending for being suckers for Trump. They’re alienated from both parties. He’s all they’ve got.
1949; he sought to manage tensions and promote economic integration. Tsai disagrees with Ma on many points, but when I spoke with her she also emphasized Taiwan’s economic challenges and the importance of exports to continued economic growth. The journalists and academics I met lamented that China sometimes succeeds in excluding Taiwanese representatives from international events, contending it’s not a country. If Tsai becomes president, she’ll have to decide how to navigate the relationship with China while protecting the island’s extraordinary achievements, including a robust democratic culture, with an independent judiciary and a high level of political freedom, all created in a remarkably short period after authoritarian rule. Many Taiwanese believe China poses a genuine and even imminent threat to these achievements. Pointing across the Taiwan Strait to Hong Kong, where Beijing is asserting increasing authority, they want to be able to maintain their hard-won freedom and their distinctive way of life. Taiwan’s 23 million citizens deserve an opportunity to do exactly that.
A6 Thursday, December 17, 2015
Marcos: Smuggling of contraband items at NBP deserves Senate probe
S
EN. Ferdinand R. Marcos Jr. has called for a Senate investigation into the unabated smuggling of deadly weapons, drugs, luxury goods and other contraband items at the country’s jails. In Senate Resolution 1682 that he filed, Marcos asked the Senate to conduct an inquiry in aid of legislation about the country’s overall correctional and penitentiary policies, enforcement, discipline, security measures and weaknesses to improve the same. Marcos said the series of raids, known as “Oplan Galugad,” which the Bureau of Corrections conducted inside the New Bilibid Prison (NBP) shows that the bureau’s primary mandates of “safekeeping” and “reforming” of prisoners are not being strictly adhered to or have been totally abandoned. “These reports about the ‘life’ inside the New Bilibid Prison not only shock the senses, morality and decency of the law-abiding Filipino people, but also erode their faith and confidence in the correctional pillar of our criminal justice system,” Marcos said. He noted that recent reports of the discovery of more contraband inside the NBP came on the heels of the appalling existence of kubols and the very important
person treatment of high-profile inmates from 2011 to 2014. Noting that these illegal activities occurred right under the noses of the government’s correctional agencies and officers and within the State’s primary maximum-security prison, Marcos said it could only happen “either by deliberate complicity or utter neglect.” “These shocking discoveries and revelations prove that there is something fundamentally and terribly wrong with the overall operation of our State’s penitentiary system,” he added. “These systemic and institutional flaws of the penitentiary system pose a clear and present danger not just to the national justice system but also to national security,” according to Marcos. Marcos said the continued smuggling of contrabands inside the prisons goes against another principal purpose of the penitentiary system, which is to ensure prisoners are completely incapacitated from further committing criminal acts. He called earlier for an investigation and filing of criminal charges against any jail officer found in cahoots with prisoners in connection with smuggling of contraband items inside the jails.
News
BusinessMirror
news@businessmirror.com.ph
Sulu, Basilan clashes: 13 bandits, 2 soldiers dead; 17 troops wounded
A
By Rene Acosta
T least 13 bandits and two soldiers were killed in separate clashes in Sulu and Basilan early this week.
Reports said 17 soldiers were wounded in the encounters. In Basilan 13 bandits were killed when government forces attacked a newly discovered Abu Sayyaf camp on Monday. Reports said 13 bandits and two soldiers were killed in the firefight. Thirteen soldiers were wounded. In Sulu four soldiers were wounded after a big Abu Sayyaf formation attacked the headquarters of the Army’s 32nd Infantry Battalion (32 IB) on Tuesday night, triggering a firefight that lasted until early morning on Wednesday. Brig. Gen. Alan Arrojado, commander of the Armed Forces Joint Task Group Sulu, said at least 150 bandits, said to be followers of Abu Sayyaf chieftain Radullan Sahiron, attacked the headquarters of the 32 IB in Patikul at around 8:15 p.m. on Tuesday night. Government forces resisted the attack, triggering a fierce firefight. Four soldiers were slightly wounded in the attack and ensuing gun battle. During the attack, Joint Task Group Sulu alerted all troops in the province for possible reinforcement and the setting up of checkpoints. Arrojado said that by around 5 a.m., the 50-strong group of Tistah Hussien that joined the attack has withdrawn from the area, along with the other bandits groups. Arrojado said military authorities believed the bandits staged the attack to show to the local residents
that they still have the forces to mount large-scale operations and to avenge recent setbacks sustained in the previous successive operations by the 32 IB. Hussien is the son of bandit sub-leader Juhurim Hussien, who was killed during an encounter with soldiers early this year. “Hussien [is the] son of the late subleader Juhurim Hussien, who died during the encounter on March 4, 2015, against the troops of 32 IB. Accordingly, said group merged with other subgroups prior to the attack that constitutes more or less 150, wherein the majority are relatives of the owners of the firearms recovered by 32 IB in November 2015,” Arrojado quoted a report. The harassment happened as joint teams of the Scout Rangers, Special Forces and Marine Special Operations Group, supported by armored vehicles, attacked a newly discovered camp of the Abu Sayyaf in Al Barka, Basilan. During the initial fighting, which began on Monday, two soldiers were killed, while 10 others were also wounded. Maj. Filemon Tan, spokesman of the Armed Forces Western Mindanao Command, however said at least 13 bandits were also killed. “This is a big operation, just wait for its results,” Tan said of the ongoing offensive, which has already spread into other civilian-populated barangays, including Makalang.
Natl govt will absorb NFA’s ₧155-B debt but... By Mary Grace Padin
T
HE National Food Authority (NFA) said it aims to attain institutional reforms by 2016 for the national government to start considering absorbing the P155-billion debt of the food agency. NFA Administrator Renan B. Dalisay told reporters that the Department of Finance (DOF) agreed to consider the agency’s request for the national government to absorb its debt, provided that the NFA implements all reforms it laid out by the NFA Council and the Governance Commission for GovernmentOwned- and -Controlled Corporations (GCG). “We have a scorecard with the GCG. I think, by the end of 2016, if we attain all the reforms needed, we can have the momentum to request for the national government to absorb the debt of the NFA,” Dalisay said. The NFA Council last year formulated a road map where it—together with the GCG—set institutional reforms to address the NFA’s debts. Dalisay said there are 21 performance indicators the NFA needs to pass, including the compliance of the 30-day, 50-day buffer stocking, swift response time for complaints and disasters, increased outlets for retailers, certification from the International Organization for Standardization and internal restructuring.
Sports BusinessMirror
mirror_sports@yahoo.com.ph | sports@businessmirror.com.ph
Thursday, December 17, 2015 A7
SPORTS PLUS
ALL-STAR UNIFORMS, APPAREL UNVEILED
TORNADOES T SET GOALS HIGH IN 2016
THE players and coaching staff of the Foton Tornadoes frolic in the beautiful beaches of Caramoan, Camarines Sur.
HE Foton Tornadoes are looking forward not only to defending the Philippine Superliga Grand Prix crown but more important their participation in the Asian Volleyball Confederation Club Championship set in Manila next September. The Tornadoes dethroned the Petron Blaze Spikers in the Grand Prix, in the process bagging the right to represent the country in the Asian championship. “This is not only about Foton, it’s about carrying the country in the Asian championship,” Foton Team
PLDT Home presents volley wars
KIEFER RAVENA is now focusing on a professional career.
P
LDT HOME Ultera, the Ultra-Fast LTE for a Happy Family, will present the forthcoming University Athletic Association of the Philippines (UAAP) women’s volleyball tournament. “Following the smashing Season 77 in UAAP women’s volleyball, we are gearing up for an even more exciting round this 2016,” PLDT VP and HOME Marketing Director Gary Dujali said. “Every participating university features a roster of volleyball superstars who have leveled up their training for the tournament of the year. We look forward to taking part
Elasto Painters zero in on semis
R
AIN or Shine (RoS) banked on Jeff Chan and Raymond Almazan in a fourthquarter onslaught to grab a 97-87 victory and move to a win away from an automatic semifinal berth in the Philippine Basketball Association (PBA) Philippine Cup on Wednesday at the Smart Araneta Coliseum. Chan and Almazan took turns in delivering the knockout blows against the Bolts in the payoff period as the Elasto Painters moved to second spot with an 8-2 win-loss record. Chan made a game-high 24 points, while Almazan had a solid double-double effort of 21 points and 17 rebounds to lead RoS to the crucial win. The Elasto Painters only need to beat NLEX on Saturday to clinch one of the top 2 spots and gain an automatic entry in the semifinal round. “We had to bleed for this one. This is a really big game for us. We have one game to go on Saturday and it will be a playoff game for us,” said Elasto Painters Head Coach Yeng Guiao, who also drew 13 points from Jericho Cruz. “Jeff was making his shots, while Raymond was just around the basket when we needed him there,” he added. The Bolts threatened to spoil RoS’s semifinal bid after leading 52-42 in the third period. But the Elasto Painters regrouped and carried a slim 67-66 lead entering the fourth. Meralco was still in the game after Jimmy Alapag hit a triple from the top of the key, 8081, before Chan and Almazan teamed up for a 16-7 windup to hand the Bolts their fourth straight loss and 10th overall. “Their [Meralco] win-loss record does not show their strength,” Guiao of the luckless Bolts said. It was tough campaign for Meralco, which ended the opening conference with a 1-10 mark. Jared Dillinger led the Bolts with 15 points, while rookie Baser Amer added 13 markers. Chris Newsome and Jimmy Alapag also hit double figures for Meralco with 12 and 10 points, respectively. Joel Orellana
Manager Alvin Lu said. National player Dindin Santiago-Manabat, however, is doubtful for the Asian tournament, because she is reportedly pregnant with her second baby. Foton’s imports, Most Valuable Player Lindsay Stalzer and Katie Messing, are also mulling their schedule for 2016. The team will hold an invitational tryout early next year, Lu said. Foton management treated the team to a trip to Caramoan in Camarines Sur as incentive for winning the Grand Prix.
in the upcoming volleyball spectacle,” Dujali added. Volleyball fans could look forward to witnessing the journeys of PLDT HOME Ultera Family Barkada members and brand ambassadors Alyssa Valdez of Ateneo, Mika Reyes and Ara Galang of De La Salle, and Jaja Santiago of National University. “It’s an honor to have these athletes represent our brand and inspire the youth toward sports excellence,” Dujali said. “Each of them has harnessed consistent talent, passion and dedication both as individuals and as team members. We wish them luck, and will be supporting them all the way through.”
KIEFER GEARS UP
F
By Joel Orellana
OR Kiefer Ravena, emerging No. 1 in the Rookie Draft ranks behind his goal of bringing his game to a higher level in the Philippine Basketball Association (PBA). Ravena completed his five years of eligibility with Ateneo in the University Athletic Association of the Philippines (UAAP). He closed out those five years with back-to-back Most Valuable Player awards and won two championships with the Blue Eagles, as well. On a stormy Tuesday afternoon, Ravena got intimate with a small group of reporters in a Quezon City restaurant he co-owns. “The game is really different in the PBA. I really need to adjust my style of play and work on my weaknesses,” the 22-year-old combo guard said. “For me, it’s not about making an impact right
away. Now it’s about having a lengthy career, because there are a lot of good players coming in every year,” the UAAP “Phenom” added. Ravena is one of several collegiate standouts who are expected to apply for next year’s Rookie Draft. The list could include UAAP champion Far Eastern University’s Mac Belo, Mike Tolomia and Roger Pogoy; University of Santo Tomas’s Kevin Ferrer and Ed Daquioag; Arellano University’s Jovani Jalalon, De La Salle’s Arnold Van Opstal and possibly Jason Perkins; and National University’s Bobby Ray Parks, also a two-time UAAP MVP who is currently playing for the Texas Legends in the National Basketball Association D-League. Luckily for Ravena, he, along with Belo and Ferrer, will get a taste of PBA and pro action early after they were invited to join the Gilas Pilipinas program by national team Head Coach Tab Baldwin. “It [Gilas training] really helps me, because I’m
competing with the best of the best in the PBA, the cream of the crop. And I’m really enjoying the experience,” Ravena said. If there’s one advantage that Ravena has, it’s his flair in connecting with fans. And to sustain that ability, he launched a personal web site, a first by a Filipino basketball player, collegiate or pro. “I still want to communicate with the Phenom fans and to basketball fans, in general. I will make sure, from time to time, I will chat with them and write blogs not only about sports but also certain issues in our society,” Ravena said. With nearly a million followers in Instagram and Twitter, Ravena said the web site will allow fans and followers to know him deeper, including his love life. But when asked about the real score between him and volleyball star Alyssa Valdez, Ravena gave a meaningful smile.
Nona washes out first round T YPHOON Nona washed out the opening round of the Philippine Open, reducing the staging of Asia’s oldest national Open to 54 holes at the Luisita Golf and Country Club in Tarlac City. This marks the first time in the 98-year history of the country’s premier golf championship that it will be played through 54 holes, although it was not held four times, the last in 2013. “Typhoon Melor [Nona] did not make landfall at the Luisita Golf and Country Club, which is located about
ISULAN BETS DOMINATE AGE-GROUP NETFEST
S
two-hour drive from Manila, but heavy rainfall has forced us to postpone the start of the event and reduce it to three rounds,” Asian Tour Tournament Director Wanchai Meechai said. The $300,000 Asian Tour event was scheduled to start on Wednesday, but incessant rain spawned by the typhoon starting late Tuesday night made it impossible for the 132-player field to play and start their chase for top honors. Officials announced the decision at 3 p.m. on
ULTAN Kudarat bets Carlyn Bless Guarde and Minette April Bentillo scored twin victories in the recent Surallah leg of the 2015 Cebuana Lhuillier Age-Group Tennis Championship that attracted close to a hundred entries in South Cotabato. Guarde defeated Angel Cagadas in the girls’ 16-under finals, 8-3, and again in the battle for the 18-under crown, 8-4; Bentillo pocketed the 12-under and 14-under crowns at the expense of local bet Juliana Viloria, 8-1; and Tacurong City’s Joyce Sapitanan, also 8-1, respectively. In the boys’ side of the tournament also supported by Dunlop Sport, Edczar Jay Sta. Maria downed fellow Isulan native Jose Balonga, 8-1, to pocket the 12-under title; and Sultan Kudarat’s Wilfred Bentillo, 8-4, to
Wednesday, as continuous rainfall is expected until Thursday. “The decision was made in the best interest of the tournament and our Asian Tour members,” Wanchai said. The Philippine Open, which used to be the opening leg of the Asian Tour, now serves as the final event on the 2015 Asian Tour season. Marcus Both of Australia will defend his title against an elite field consisting of two Order of Merit champions and no fewer than 15 Asian Tour winners.
snatch the 14-under trophy. Another Isulan bet, Vince EJ Tugade, emerged champion in the 16-under at the expense of Kidapawan City’s Lisandro Jefferson Alqueza, 9-7. Alqueza, however, got back at Tugade in the 18-under finals, 8-5. Marshall Ben Mission slipped past Hernie Angelo Aguinaldo, 5-4, 4-0, to win the 10-under unisex title. Both are from Isulan. “As the year nears its end, we can look back with pride to this year’s series as new faces emerged while previous champions even got better. Next year we look forward to another big year for the Cebuana Lhuillier Age-Group Championship Series,” said Jean Henri Lhuillier, president and CEO of the sponsoring Cebuana Lhuillier Group.
ADIDAS, the official on-court apparel provider of the National Basketball Association (NBA), unveiled the uniforms and apparel collection for the 65th NBA All-Star Game on February 14 in Toronto. The uniforms incorporate elements indigenous to Canada and pay homage to Toronto’s NBA history, passionate basketball fans and cosmopolitan energy. “This is the first NBA All-Star game to be played outside the United States, and it is a very exciting time for basketball in Canada,” said Chris Grancio, adidas global basketball general manager. “To honor this global celebration and pay tribute to Toronto—the site of the NBA’s first game—we’ve incorporated design elements that are inspired by the city’s basketball history, sports culture and unique fashion scene to make an All-Star collection that players and fans will love.” The red-and-white Western Conference and whiteand-blue Eastern Conference uniforms feature a maple leaf overlay on the front of the jerseys as a tribute to the national symbol of Canada, while Toronto’s cityscape is featured across the back to represent the host city. Clean, single-layered fonts are a nod to the NBA’s early days in Toronto, where the first NBA game was played on November 1, 1946, between the Toronto Huskies and the New York Knickerbockers.
‘BAD GIRL’ EYES TITLE
JUJEATH “BAD GIRL” NAGAOWA returns to the ring as she vies for the World Boxing Organization (WBO) female atomweight title against reigning champion Nao Ikeyama of Japan this weekend in Colombia, Sri Lanka. The 28-year-old native of Baguio City admitted her lack of fight as a mixed martial artist (MMA) forced her to return to boxing, where she once reigned as atomweight champion of the World Boxing Council. Nagaowa, currently in contract with One Championship, announced her fight in the recent Philippine Sportswriters Association (PSA) Forum presented by San Miguel Corp., Accel, Shakey’s and Philippine Amusement and Gaming Corp. at Shakey’s Malate. Nagaowa began her MMA career last year, winning her first two bouts under ONE Championship. “I prepared for almost two months, one of the longest preparations I had; unlike before I only had 15 days of preparation,” Nagaowa said.
TYPHOON’S WRATH
NONSTOP rain spawned by Typhoon Nona (international code name Melor) washed out the fifth day of action in the 2015 National Intersecondary Girls Softball Championships at the Barangka Baseball Field in Marikina City on Wednesday. Makati City booked the first semifinal berth with a 15-0 rout of Sta. Rosa on Tuesday for a 6-0 mark in Bracket A, while at least five teams will slug it out for the three other seats at resumption of the event today (Thursday), weather-permitting. The top 2 teams from each group after the singleround elims advance to the crossover semifinals of the event, sponsored by the Amateur Softball Association of the Philippines and Cebuana Lhuillier for the country’s current aces and rising stars, with the winners disputing the championship worth P25,000.
PSA GOLF CUP RESULT
JONG ARCANO of Inquirer Golf carded a gross 91 in wet condition to capture the Philippine Sportswriters Association Golf Cup crown at the Villamor Golf Club on Tuesday. Ding Marcelo of Bulletin placed second with a 94, while Inquirer’s Musong Castillo shot a 96 to finish third in the 18-hole tournament sponsored by the Philippine Sports Commission as chief backer, and Sen. Chiz Escudero, Meralco, San Miguel Corp., Joseph Tambunting, ICTSI, PBA, Interconnect Systems Inc., Bong Lopez, Philippine Super Liga and National Golf Association of the Philippines as major sponsors. Other supporters of the tournament are athletics chief Popoy Juico, Sports Vision, Nancy Pascual and Associates, Tony Arevalo, Marvin Caparros, Pin High Golf’s Gary Sales, Agustin & Sons Realty, Callaway’s Raffy Mapua, Eagle Ridge’s Raymund Bunquin, Bagobo Hotel Davao, Sta. Lucia, Freddie Mendoza, Canlubang Golf and Country Club, Bong del Rosario, Pablo Soon and the Philippine Olympic Committee.
LG OFFERS FIGHT
LG Electronics teamed up with the mixed martial-arts (MMA) organization ONE Championship in bringing the ONE Championship: Spirit of Champions at the SM Mall of Asia Arena last week. Brandon “The Truth” Vera defeated last-minute replacement Paul “Typhoon” Cheng in only 26 seconds to win the promotion’s first heavyweight championship belt. Before the match, LG Electronics and ONE Championship visited the Pangarap Foundation in Manila. The foundation provides shelter and care for underprivileged children, as well as livelihood-training programs to ensure a self-sufficient future. Pangarap Foundation kids were thrilled to meet MMA legend and ONE Championship Vice President Rich Franklin, who taught them the basics of dodgeball, an American schoolyard classic.
Sports BusinessMirror
A8 | T
hursday, December 17, 2015 mirror_sports@yahoo.com.ph sports@businessmirror.com.ph Editor: Jun Lomibao
GOLDEN DIVE Jessica
Parratto and Amy Cozad dive to the gold medal in the women’s 10-meter synchro platform final at the USA Diving Winter National Championships in Indianapolis on Tuesday. AP
Rondo issues strong apology to gay referee
S
ACRAMENTO, California—Sacramento Kings guard Rajon Rondo has offered a stronger apology for directing a gay slur at veteran National Basketball Association (NBA) referee Bill Kennedy. Rondo said on Monday his actions toward Kennedy on December 3 were out of frustration and not meant to offend anyone. Rondo issued a statement on Tuesday addressing those who viewed his initial statement as a nonapology. He said: “I want to be clear, from the bottom of my heart that I am truly sorry for what I said to Bill. There is no place on or off the court for language that disrespects anyone’s sexual orientation. That is not who I am or what I believe, and I will strive every day to be a better person.” Kennedy has told Yahoo! Sports he is “proud to be an NBA referee and I am proud to be a gay man,” adding that he chose to come out in hopes of sending a message “that you must allow no one to make you feel ashamed of who you are.” Rondo was suspended one game by the NBA for directing a derogatory and offensive term toward Kennedy. Kennedy is in his 18th season as an NBA official, having worked more than 1,050 regular-season games and five in the NBA Finals. “I wholeheartedly support Bill’s decision to live his life proudly and openly,” NBA Commissioner Adam Silver said in a statement. “Throughout his 18-year career with the league, Bill has excelled as a referee because of his passion, dedication and courage. Those qualities will continue to serve him well both as a game official and as a positive influence for others. While our league has made great progress, our work continues to ensure that everyone is treated with respect and dignity.” Kennedy worked San Antonio’s home game against Utah on Monday, receiving applause from fans when he was shown on the videoboard with the officiating crew and his name was announced.
OLYMPIC LEGACY? ‘Rio is already a very unequal city. After the games it will be even more unfair and segregated. There will be more wealth in a few areas, but no improvement for most people.’
R
By Stephen Wade The Associated Press
IO DE JANEIRO —A Rio de Janeiro urban planner warns that next year’s Olympics will widen the gap between the wealthy and the poor in this already socially stratified city. Orlando Santos Jr. of the Federal University of Rio de Janeiro helped research a 190-page report that cites abuses linked to the games and questions the legacy for most of Rio’s 12 million residents.
“Rio is already a very unequal city,” Santos told the Associated Press. “After the games it will be even more unfair and segregated. There will be more wealth in a few areas, but no improvement for most people.” A Rio city government spokesman contested the findings, but said city officials had not seen the entire report and declined to comment. In an e-mail the city said transportation projects being built for the Olympics—a new subway line extension and high-speed buses—would speed commuting time. The city said “due to the Olympics” Rio de Janeiro has been able to improve education, health care and housing. It has repeatedly said that out of the total games’ budget of 38.7 billion reals ($10 billion), 57 percent is private money and only 43 percent public. The report titled “Rio 2016 Olympics: The Exclusion Games” suggests areas the Switzerlandbased International Olympic Committee (IOC) should monitor. The report coincides with President Thomas Bach saying last week the IOC would start auditing money it hands out to sports organizations, including the $1.5 billion it is giving to Rio organizers to prepare South America’s first games. The white paper by “The Popular Committee for the Cup and Olympics” touches on
games-related security, police violence, transportation, spending and housing. The report disputes the city government’s contention that most of them money for the Olympics is from private sources. It concludes that 62 percent is government money and cites documents from the Olympic Public Authority, an agency comprising all three levels of government set up to oversee games’ spending. The report says the private sector is paying less than 38 percent of the costs of the games—not 57 percent as Rio Mayor Eduardo Paes contends. It says the city’s accounting involves “omission of costs directly associated” with holding the games. “In the current financing structure created by the IOC, the Olympics are not good at promoting social fairness,” Santos said. “They [the IOC] are a billiondollar business, which is OK. But the business has to serve a wider interest of Brazilian people.” Citing information provided by the Rio city hall, the report says 22,059 families have lost their homes (a total of 77,206 people) between 2009 and 2015 from infrastructure projects related to last year’s World Cup and the Olympics. The report estimates “at least 4,120 families have been removed and 2,486 remain under threat of removal by reasons directly or indirectly related to the Olympic project.” The city hall says most displacements are unrelated to the big sports events. “In the recent era the Olympics have been used as basically a steamroller to roll over marginalized communities,” said American political scientist Jules Boykoff, who has written three books on the Olympics and is in Rio on a Fulbright research fellowship. “We’ve seen it in prior places like Beijing, London and to a certain degree in Vancouver, as well,” Boykoff added. “This has become a bit of an Olympic tradition.” The report said real-estate prices near the Olympic Park in suburban Barra da Tijuca have increased by at least 200 percent, pulling in speculators and pushing out longtime residents.
In Boston, LeBron James scored 24 points to lead the Cleveland Cavaliers to an 89-77 victory over the Celtics on Tuesday night in an uneventful rematch of their bruising first-round playoff series last season. Kevin Love had 20 points and eight rebounds in his first game back in Boston since Kelly Olynyk yanked his shoulder out of socket in the playoffs. Jae Crowder, who took a punch in the jaw from JR Smith in the series, scored 14 for the Celtics. Timofey Mozgov had nine points and a season-high 10 rebounds, scoring seven with five boards in the third quarter when Cleveland turned a five-point deficit into a 10-point lead. The Cavaliers have won three in a row since losing three straight to start the month.
Avery Bradley scored 17 points for Boston, which was back home for the first time since taking the thenunbeaten Golden State Warriors to double overtime. In the other games, Denver defeated Minnesota, 112-100, and Sacramento downed Houston, 107-97. Randy Foye scored 19 points, and Denver picked up its sixth win in seven games. Kenneth Faried added 19 points and 10 rebounds, Will Barton had 14 points, seven boards and five assists, and the Nuggets shot 56 percent against the porous Timberwolves defense. Foye broke out of a season-long slump to hit five-of-six three-pointers, and the Nuggets hit 10 of 18 from deep as a team. Zach LaVine had 20 points and five assists and Andrew Wiggins scored 23 points for the Timberwolves, who have lost seven of their last eight games. They are 3-10 at home this season. AP
VINTAGE BRYANT KOBE BRYANT sets the Lakers’ play against the Bucks’ Giannis Antetokounmpo. AP
L
OS ANGELES—Kobe Bryant had 22 points and six assists as the Los Angeles Lakers beat Milwaukee, 113-95, in the Bucks’ first game since ending Golden State’s 24-0 start to the season. D’Angelo Russell had 19 points and seven assists as the Lakers took a 22-point lead in the third quarter and cruised to their second victory in 15 games, improving to 4-21 in Bryant’s farewell season. Michael Carter-Williams scored 19 points for the Bucks, who played without leading scorer Greg Monroe in their first game since snapping the Warriors’ 28-game winning streak dating to last season. Monroe was a late scratch with a sore left knee for the Bucks, who have lost 10 straight road games.