Thursday 5 July 2012

PIA News Dispatch - Thursday, July 5, 2012


Aquino assures banking and finance sectors he will support fight against cyber crimes

President Benigno S. Aquino III made an assurance to the banking and finance sectors that his administration will support the fight against cyber crimes that affect businesses.

“As you know we are in the midst of judicial reform. We actually have a lot of issues with the judicial system and now, we are just undertaking a major step,” the President said during the Wallace Business Forum Quarterly Round Table in Makati City on Wednesday.

“You’ll come across a lot of data that does indicate that we are being utilized by international groups in cyber crimes. So this is an idea worth mentioning to the incoming Chief Justice who will sit in the judiciary,” the President said, adding that he is still awaiting the list from the Judicial and Bar Council (JBC) so he can pick from the list the new Chief Justice of the Supreme Court.

The banking and finance sectors raised several issues to the President that the government must address to enhance the business climate and encourage foreign investors to come to the Philippines.

Citi Country Officer for the Philippines Sanjiv Vohra mentioned three areas in which the government can act to help or improve the country’s banking and finance sectors. These include fast tracking the mortgage legislation which allows investors to partake in more important sectors, Vohra said.

The second would be revising laws and guidelines to expand the qualified investor base which will allow the banking and finance sectors to bring back the wealth management business in the Philippines.

Vohra also called on the government to include the gaming industry for Anti-Money Laundering Act (AMLA) coverage. The gaming industry is an important business in the Philippines to effectively promote tourism, he said, adding AMLA must be extended to cover this industry.

Vohra commended the Aquino administration for supporting amendment to the provisions of the AMLA. With regards to special courts, he noted the banking and finance sectors support the creation of these courts to fight the proliferation of cyber crimes.

“What we would like to do is for special courts to be created so that the whole process can be expedited. I believe the UN has proposed the creation of an international tribunal on cyber crimes,” he said. (as/1:18pm)


Aquino declares August 2 as special non-working day in Butuan City

President Benigno S. Aquino III has declared August 2, which falls on a Thursday, as a special (non-working) day in Butuan City in celebration of its “62nd Adlaw Hong Butuan.”

The Chief Executive issued the declaration through Proclamation No. 383 signed by Executive Secretary Paquito N. Ochoa Jr. on May 14 to give the people of Butuan City the full opportunity to celebrate and participate in the occasion with appropriate ceremonies.

Adlaw Hong Butuan is the charter day celebration of Butuan. On August 2, 1950, Butuan became a city by virtue of Republic Act No. 523. (js)


Aquino says local government units must be empowered to become more business friendly

President Benigno S Aquino III said his administration is working to change the mindset of the local government units and empower them so that they become more business friendly.

“We are working on really upgrading also the local government units. We want a change in mentality from ‘what gets me elected’ to ‘what is good for the long-term benefits of the community’. And some of it might be counter intuitive to those who keep on remembering that they have to run again every three years,” the President said during the Wallace Business Forum Quarterly Roundtable in Makati City on Wednesday.

The President acknowledged that there are LGUs that are extremely unfriendly to investors, forcing companies to relocate to other areas in the Philippines.

But there are improvements, according to the President. A recent SWS survey showed a 24-percent increase in positive perception in the issuance of local permits by city and municipal governments, he said.

The Chief Executive said that there is 73-percent satisfaction rating in the performance of the LGUs in processing business documents, such as permits and licenses.

“So it is a work in progress. There are various programs that encourage positive behavior from the LGUs, getting the good housekeeping,” he said.

President Aquino likewise said that there has to be a corresponding drive once more power is given to LGUs. And there must be greater execution and exercise of this power towards the common good against the parochial interest of politicians.

LGUs must be empowered and encouraged for the responsible exercise of its power, the President said even as he added the country’s business leaders to give his administration more time to carry out more reforms.

“I think, you would see more progress on that aspect. We would prefer to use the carrot rather than the stick but we are prepared to use the stick for those that have been caught up in totally outmoded thinking. But we will try to achieve all of these through consensus,” the President said.

The President expressed his gratitude to the forum organizers for giving his administration an opportunity to express its views on issues concerning the business sector and at the same time hearing the sentiments of the sector. (as/1:47pm)


Aquino encourages competition among corporations in the exercise of social responsibility

President Benigno S. Aquino III urged corporations to outdo one another in becoming more socially responsible aside from expanding their “bottom line” further so that a balance of earning profit and giving back to the community is achieved.

In his speech keynoting the League of Corporate Foundations (LCF) Corporation Social Responsibility (CSR) Expo 2012 held at the SMX Convention Hall at the Mall of Asia in Pasay City on Thursday, the President said corporations should strive to attain a situation where “everybody wins.”

“Many of us see, in traditional and social media, how your companies compete for attention and patronage by outspending each other in advertising and marketing. It would be nice to see a spending war in the area of Corporate Social Responsibility as well,” the President said.

“A competition, in this sense, would unleash the true power of the market—the power to lift people up from the mire of poverty, the power to advance your companies towards your corporate goals, and the power to move this country to its rightful place in the sun,” he added.

He cited as an example a “convergence” program the government and food giant Nestle were currently undergoing which aims to relocate Filipinos living in dangerous areas like landslide and flood prone locales to safer ground and provide them livelihood so that choosing to return to their old homes would not be an option anymore.

“We wanted to move these people to a safer place. But one significant problem we encountered is that when they are relocated to a province, they have a difficult time finding new livelihoods. They then either return to their old dangerous homes, or they remain in the province, and some of them resort to chopping down trees and turning them into charcoal simply so they can survive. We had to find a way to make sure that these people could find decent, sustainable sources of income in these provinces, so that they would no longer have to move back to the danger areas, or harm the environment just to get by,” the President said.

What they came up with is to include each family under the government’s Conditional Cash Transfer program that will give them stipends for their daily expenses in exchange for protecting the trees in their areas.

Nestle then provides these people with specially researched, developed, and cultivated coffee seedlings, so that they can plant and grow coffee and cacao under the shade of the larger trees they protect.

“Nestlé also guides them, and equips them with the technological knowhow to maximize the yield of their crops. And eventually, Nestlé would be the ready buyers of the coffee that is produced. They buy the products at world market prices, and at a quality that meets international standards,” the President said.

“In essence, through this program, we are giving these people livelihoods. We are giving them reason never to go back to the areas where their lives were imperiled. We also have them helping us protect the trees that protect us, instead of burning them down for short-term gain. At the same time, Nestlé gets a great source of coffee, and empowers new consumers to buy more of their products. So, as the trees flourish, so do the lives of our people, so do the local economies, and so does Nestlé’s performance as a corporation. Again, everybody wins,” he added.

He urged corporations to “come up with something like our convergence program (that) can help not only your bottom line, but more importantly society’s bottom line,” adding that the government was always ready “to work with corporations that want to go the extra mile to reach out and empower the people in their respective communities.”

“We have always been about inclusive growth, and have always believed that a country must move forward together,” the President said.

“I encourage all of you today to talk more and more with one another, and, more importantly, to listen. Today, we see so many creative ways that the biggest and most successful companies in the Philippines are helping their community and their country. I am hopeful that this will serve as an inspiration to even more established companies and budding entrepreneurs to expand or start new CSR programs,” he added.

The LCF, a steadfast promoter of the practice of corporate social responsibility for nation building, is a network of over 70 operating and grant-making corporate foundations and corporations.

Some of the big member companies of the group are the San Miguel Corp., Sagittarius Mines Inc., Toyota Motor Philippines Corp., Metrobank Group, Ayala Foundation, Lopez Group Foundation, Aboitiz Foundation, Energy Development Corp., and the PLDT-Smart Foundation. (rck)


Aquino says government exerting all efforts to achieve justice for victims of Maguindanao massacre

The Aquino administration has been exerting all efforts to achieve justice for the victims of the 2009 Maguindanao massacre, President Benigno S. Aquino III said on Thursday.

President Aquino issued the statement following reports that Myrna Reblando, widow of slain journalist Alejandro "Bong" Reblando, left the Philippines seeking asylum to another country. Reblando, a reporter of the Manila Bulletin, was among the 32 journalists killed in a massacre in Maguindanao province in November 2009.

"Well, malaki naman talaga ang dinaanan ni Mrs. Reblando. At talagang meron namang frustration sa bagal ng ating sistema ng hudikatura. Mabigat talaga ‘yung kaso sa dami ng akusado; sa daming prosesong kailangang daanin," the President said during an ambush interview on Thursday at the World Trade Center.

Ninenty-six suspects in the 2009 Maguindanao massacre are now in police custody, while 100 others remain at large.

"May mga anak siya, may pamilya siyang kailangan na buhayin at meron naman sigurong normalcy na gustong mangyari sa buhay niya. At hindi perpekto ‘yung ginagawa natin pero palagay ko naman walang makasasabing nagkukulang tayo sa paghahabol ng katarungan," the President stressed.

The President also said that the relatives of the massacre victims have the freedom to choose whether to accept the government's offer of security.

"Pwede nating pakiusapan... Pero sa dulo nito, may malaya silang desisyon at may karapatan silang mag-desisyon nang malaya sa kung anong palagay nilang angkop sa kanilang sitwasyon," he said.

The Aquino administration has earlier renewed its offer of security to the witnesses of the Maguindanao massacre who were not under the Witness Protection Program. (co)


President Aquino welcomes credit rating upgrade granted by Standard & Poors

President Benigno S. Aquino III welcomed the latest upgrade granted by the international credit rating agency, Standard & Poors (S&P), on the Philippines which has improved to BB+ thereby inching another step closer toward getting an investment grade status.

Speaking to reporters in a chance interview at the World Trade Center on Thursday, President Aquino said this development shows just how well-managed are the fiscal policies of the Philippines that it would allow the government to have more breathing room in paying the country’s debt.

“Credit rating agency sila at sinasabi na well-managed tayo, maayos ‘yung ating fiscal policies, bumababa ang ating debt payment dahil nagkakaroon tayo ng access to loans and that the lenders will think that we are less of a risk,” the Chief Executive noted.

President Aquino added that even if the Philippines has not yet been given an investment grade status by the S&P, some international banks and other financial institutions are already treating the country as having such following these credit rating upgrades.

“Parang pagkatanda ko sa report ni Finance Secretary Cesar Purisima, four notches above our rating na...ibig sabihin, tinatrato na tayo ng mga pinagkaka-utangan nating mga institusyon, bangko, etcetera na parang investment grade na tayo... bagama't itong mga nagre-rate ay hindi pa tayo nilagay sa investment grade,” he said.

“Sa atin pong pananaw, ‘yung mga bangko ang mas nagiging realistic. Parang mas sigurado silang eto ang karapat-dapat na ipataw na interes sa atin dahil mas mababa na ang risk sa pagpapautang sa atin,” he added.

Meanwhile, Budget and Management Secretary Florencio Abad echoed the President’s remarks as he thanked the S&P for its favorable assessment of the Philippines’ sovereign credit and for its recognition of the progress being made by the Aquino administration in ensuring fiscal stability through improved revenue administration and prudent and effective public expenditure.

“We remain committed to fiscal consolidation. Due to our reform efforts, the national government incurred interest payment savings of P49.33 billion or 11 percent of what was programmed for January 2011 to May 2012. Next year, we are programmed to bringing our fiscal deficit down to 2 percent of gross domestic product (GDP) from 3.5 percent in 2010, as well as lowering our debt stock to 49.5 percent of GDP from 52.4 percent in 2010,” Abad said in a statement.

Abad noted that this credit upgrade by S&P "will bolster our chances to meet or even surpass our fiscal consolidation targets and it will also enable us to reduce the interest cost of our debt and swap our foreign currency-denominated credit into less volatile peso instruments."

“This upgrade validates President Aquino’s platform of good governance as a driver for sustainable economic growth. Buoyed by eight positive credit actions already posted under this administration, the country is now better-positioned to aim for investment-grade credit status and, more importantly, for meaningful economic growth,” Abad concluded.

For his part, Presidential Spokesman Edwin Lacierda said the country's upgraded credit rating from 'BB' to 'BB+' is a reaffirmation of the confidence that the international community has for the country given the favorable developments happening within.

"S&P cited the increasing fiscal flexibility of the Philippines as one of the key reasons behind the upgrade. Indeed, this fiscal space has allowed us to focus our efforts on investing on both our physical and social infrastructure," Lacierda said.

“The upgrade complements several of the country’s positive economic indicators. Our economy had grown 6.4 percent within the first quarter of this year, compared to 4.9 percent in the same period last year. Inflation, too, has eased to 2.8 percent in June 2012, from 2.9 percent last month. Compared to the inflation rate of the same period last year, which stood at 5.2 percent, this is a significant deceleration,” he added.

“We are confident that through the sustained application of programs geared towards inclusive growth, our interventions will result in, over the long term, a continuous improvement of the Filipino’s quality of life. The Pantawid Pamilyang Pilipino Program (4Ps) has enrolled over three million family beneficiaries as of April this year. More of our countrymen now have access to a comprehensive package for education, healthcare, and family development,” Lacierda said further.

Lacierda, said that this convergence of positive economic and social indicators is a tangible result of the reforms established by the Aquino administration. “We remain committed to strengthening our efforts to ensure that the benefits of our growth are both equitable and inclusive,” he said. (hdc)


Aquino sees brighter future for agriculture sector after government reforms

President Benigno S. Aquino III said the country’s agriculture sector has achieved a lot in two years, as he asked the public to continue supporting the reforms being initiated by his administration for the benefit of the Filipino people and the country as a whole.

“Kung may isa man pong sektor na talagang sumasalamin sa kung gaano kaepektibo ang ating krusada sa tuwid na daan, ito ay ating sektor ng agrikultura, sa pangunguna ng Kagawaran ng Pagsasaka,” the President said in his speech at the Makina-Saka 2012 Agri-Machinery Roadshow in Pasay City on Thursday.

“Talaga naman pong sa pamumuno ng ating Kalihim Proceso Alcala, ang dating pambansang kamalig na pinagmumulan ng kaliwa’t kanang anumalya, ngayon ay bukal ng mabubuting balita.”

Under the Aquino administration, the government was able to cut the volume of rice imports last year from 1.3 million metric tons to 850,000 metric tons, the President said adding that for this year, the country will just import 500,000 metric tons for national consumption.

The agriculture department is also expecting achieving rice self-sufficiency next year and the country may also start shipping out rice to other countries especially if weather disturbances do not affect production next year.

The government has also invested on the agriculture sector to reduce wastage, the President said. Last year, the government allocated P1 billion to buy more than 2,300 units of postharvest machinery and other equipment.

For this year, the government increased the budget to P2.6 billion to buy 7,000 farm machineries that will be distributed to farmer organizations and local government units throughout the country, the President said.
The government has also invested on the country’s irrigation system to improve food production, he added.

The President also acknowledged the need to enhance research and development in the country, saying that the state colleges and universities and the Department of Agriculture must work together to help agriculture professionals, farmers and growers with the use of modern technology and farming methods.

“Hinihimok din po natin ang pribadong sektor na patuloy na makibalikat sa pagpapayabong ng ating agrikultura. Ang pagbabayanihan natin ang susi upang matiyak ang pangmatagalang seguridad sa pagkain, gayundin sa mas matatag na ekonomiya ng bansa,” he said.

“Nananalig ako na ang tagumpay ng Makina-Saka 2012 ay magiging isang dambuhalang hakbang tungo sa mas moderno, mas kapaki-pakinabang, at mas matatag na sektor ng pagsasaka,” the President added.

The President also asked every Filipino to strengthen the spirit of volunteerism to empower their fellowmen noting that every seed of reform sowed today will benefit the next generations of Filipinos.

“Samahan po ninyo ako --- Ituloy po natin ang pagtahak sa tuwid na landas, at atin pong pitasin ang mas mayabong na bukas,” he said.

Also present during Thursday’s event were Agriculture Secretary Proceso Alcala, Science and Technology Secretary Mario Montejo, Cambodian Ambassador to the Philippines Hos Sereythonh, and Palo, Leyte Mayor Matin Petilla. (as/3:10pm)


Government working to provide business sector with cheaper, stable power supply, Aquino says

The government is working to make power rates cheaper and to ensure that there is enough capacity for power generation for the benefit of the business sector, President Benigno S. Aquino III said during the Wallace Business Forum Quarterly Roundtable held in Makati City on Wednesday.

“We believe that the solution is towards making electricity prices more reasonable, as we have to have the capacity to install on base load plants. So that has been the primary focus," the President said.

Explaining energy issues, Energy Secretary Rene Almendras said the government continues to encourage base load generation expansion believing that it’s the key to bringing down power prices.

The cheapest source of electricity are the base load plants, Almendras said, adding that at present, the country is using non-base load plants or more expensive fuel plants to generate base load, making electricity rates more costly.

Almendras said the government’s problem is the difficulty to find enough investors who would like to host such plants.

Almendras also announced that they were signing contracts at lower generation charge saying there is a new coal-fired plant proponent who is willing to come in at P4.25 per kilowatt hour.

“So from the P5.35 to P4.25, that’s a P1.10 cut in generation charge. But we have to allow those plants to be built. We have to make sure that those plants come in because the newer plants are going to be more efficient,” he said.

He also explained that the Energy Regulatory Commission-approved generation charge for Manila Electric Co. for Luzon is P5.35 per kilowatt hour.

Almendras acknowledged quality issues of power being supplied to the public and to the business sector. Some electric cooperatives failed to invest in developing or upgrading their facilities that result to power interruptions and fluctuations, Almendras said, noting that government has initiated a program to address the problem.

Almendras underscored the need to reformat some of the electric cooperatives because sometimes the problem isn’t technical but political.

While reforms in the energy sector may be unpopular in many provinces, Almendras said they will continue initiating these changes to make sure that the distribution utilities, especially the electric cooperatives, step up as far as distribution quality energy is concerned. (as/2:27pm)