Outstanding Pinoys

Kudos to two of my friends, truly outstanding Pinoys:

Walden Bello who is this year’s Outstanding Public Scholar named by the International Studies Association for his achievements in combining his academic work and activism.

Walden teaches at UP and writes on his many advocacies as a global activist for social justice, peace, human rights and the environment. Described by a Belgian newspaper as the “most respected anti-globalization thinker in Asia,” he was earlier a recipient of the Right Livelihood Award, known as the alternative Nobel Prize.

Walden and I sit at the National Council of the Akbayan Citizens’ Action Party.

And May-an Villalba who is a finalist in the Ernst & Young search for the Entrepreneur of the Year Philippines.

A dedicated worker for the cause of the OFWs, May-an is the executive director of the Unlad Kabayan Migrant Services Foundation where I sit as a board member.

She pioneered in promoting savings mobilization for investments among our overseas workers and an outstanding social entrepreneur.

(5:50 a.m.)

Huge loss

How much will Davao City lose in its share of the Internal Revenue Allotment (IRA) for this year as a result of the creation of more cities in the country?

P194 million.

Yup enough money for our sports complex or a start up capital for our city college or city hospital.

From Davos to Davao

That is the title of the column of Babe Romualdez in Philippine Star today.

He wrote “This may sound corny, but we should have a similar Davos forum in Davao. Mindanao is one of the country’s wealthiest but most undeveloped areas. I am one of those who truly believe that the Philippines is a rich country pretending to be poor. We just can’t seem to get our act together in harnessing our resources and making them grow.

The Davos Forum has opened the eyes of many on what wealth means and what it can do to benefit everyone. Perhaps we can have a smaller forum starting with Forbes Magazine’s “40 Wealthiest Filipinos.” These are just a few individuals, but gifted with enormous wealth and resources. They can utilize their collective talents and resources to make a difference in the lives of Filipinos; ultimately it will redound to their own good when the country becomes wealthier, stronger and more stable. At the end of the day, one always looks for good karma — because all that wealth is useless when one dies — you can never take it with you.”

I emailed Babe in Switzerland to inform him that I share his views and that I attempted to organize one in Davao. Back in 1999 when I chaired the city’s Millennium Celebration committee, we held an eminent persons forum. I was hoping to make it a regular forum ala Davos.

Unfortunately I got little support.

Yup, Davao can host a smaller version of the WEF or for that matter its poor man’s counterpart, the World Social Forum of civil society groups, and contribute to solving the country’s and the world’s woes.

On the other side

If Lakas is weak in its line up for the 2010 elections, the other side has too many.

Here is a partial list of opposition “senatoriables” tipped off by veteran kingmaker Manong Ernie Maceda:

Muslim lawyer Adel Tamano, former Cavite Congressman Gilbert Remulla, Bukidnon Congressman Teofisto Guingona III, incumbent Senators Jinggoy Estrada and Jamby Madrigal.

As much as 40 names have been mentioned in one report.

Count in returning senators like Frank Drilon, Serge Osmeña and Ramon Magsaysay, Jr., and almost senator Koko Pimentel.

If we were to have fresh and young leaders, the Liberal Party has the likes of Congressmen Erin Tañada of Quezon, Ruffy Biazon of Metro Manila, and Jun Abaya of Cavite, and the NPC has Darlene Antonino-Custodio, who knocked out Manny Pacquiao in GenSan.

A number of those mentioned as “presidentiables” might also slide down to the senate slate.

(7:35 a.m.)

Lakas is weak

The ruling Lakas party has come out with a “wish” list of probable senatorial candidates for 2010.

I call it a “weak” list.

Bereft of a viable presidential bet and short of funds that it cannot even hold its national directorate meeting, its list of “senatoriables” is a so-so line up of weaklings on a national campaign. A number of them may be provincial heavyweights like Congressmen Raul del Mar of Cebu and Simeon Datumanong of Maguindanao but I doubt if they can be considered the same on a nationwide scale.

The other 3rd-term members of the Lower House in the list are even worse, Ed Zialcita of Paranaque, Prospero Nograles of Davao, Arthur Defensor of Iloilo.

The experience of Prospero Pichay should give them wise lessons.

Lakas’s other bets include QC mayor Sonny Belmonte and Milagros Magsaysay of Zambales, and reelectionist senators Bong Revilla and Lito Lapid. Of the two movie stars, the former might win again but the latter I doubt.

Belmonte, who is tipped as a presidential material could suffer an image problem if he slides down to the senate. Milagros Magsaysay would have a problem as a more famous namesake Ramon Magsaysay, Jr. is set to return to the Upper House.

As in the 2007 elections, the admin line up is in for a drubbing.

(8:12 a.m.)

BIR wants LGUs as its Gestapo

The Bureau of Internal Revenue or BIR missed its tax collection target last year by P53.8 billion. It failed in its goal across the board – value-added tax (VAT) short by P38.187 billion; income tax by P9.715 billion; percentage tax by P4.098 billion; and excise tax by P3.915 billion.

Congress is now investigating this biggest tax collection failure in the country’s history.

As a kneejerk reaction, BIR has issued a new Memorandum dated January 8, 2008 mandating local government units or LGUs not to issue or renew business and professional permits without first submitting a number of BIR requirements.

This memo was advertised in leading newspapers only today; the period for business permit renewals ended yesterday.

First, the Memo is clearly late. Renewal of business permits has commenced on the first working day of the month. And I got a report from Atty. Jhopee Agustin of the Business Bureau that the business licensing went smoothly.

Second, requiring applicants to comply with the many BIR requirements such as copies of the Income Tax Returns, monthly and quarterly Value-added Tax Returns, etc. smacks of red tape to say the least. Putting more obstacles to professional and business applicants is contrary to our policy to limit bureaucratic requirements and hasten the processing of such permits.

Third, this BIR policy would only encourage businesses not to seek permits and to go underground, thereby negating our efforts to register all businesses in the city or in the country for that matter.

I believe that the BIR should squarely admit the blame for its own failures. It should not pass on the burden of collecting taxes to the LGUs.

In a sense, the BIR wants LGUs to play Gestapo to apply state terror on professionals and businesses applying for their permits.

This is most deplorable and highly objectionable.

I am certain that LGUs would want to help the BIR in its tax revenue efforts. But certainly, not this bullying way.

Almost 99 percent of about 40,000 business registrants in the city are micro and small and medium enterprises or MSMEs. They may seem to be lowly businesses but they contribute highly to jobs generation and taxation. They are the asset that makes our city grow. They are our development partners.

I believe that we should treat them fairly and not be burdened with so many regulations and requirements.

In missing its collection target last year, BIR has clearly shown its folly and bias.

The biggest failure in last year’s missed collection goal was the Large Taxpayers Group of the BIR. This group handles taxes for the Top 1,000 corporations. This group failed to collect P38.8 billion from the big businesses. From its target of P469.7 billion, this group collected only P430.9. This shortfall represents 70 percent of the total missed target of the BIR.

Who heads this special group? No less than the BIR Commissioner herself, Lilian Hefti.

Here is my advise to her. Run after tax evaders! Collect from the rich and big taxpayers first, before pounching on the small fries! And do your job first before ordering LGUs how to do theirs!

(9:12 a.m.)

Davao and the World Ocean Conference

After its successful hosting of the international Climate Change Summit in Bali last year, Indonesia will again host one of the world’s biggest environmental conferences next year – the World Ocean Conference in Manado, North Sulawesi on May 11-15, 2009.

Davao City should take advantage of this very important event and cash in on its ripple effects across the Celebes Sea.

One, Manado is a sister-city of Davao and we should extend our assistance to it in hosting this conference.

Second, Davao may be considered as the “northern gateway” to Manado. North Sulawesi’s Sam Ratulangi Airport can be reached through Jakarta and Bali to its south, via Singapore to its west and Davao to the north.

Thousands of participants to the conference – heads of states, top scientists and academicians, environmentalists, NGOs, media, etc. will be flying to Manado. Davao can offer itself as its northern passage. By then, Davao has direct flights from Hongkong and Taipei (Cebu Pacific) which could play as the hub for participants flying in from Europe, north Asia and North America.

Third, there would be plenty of opportunities for pre and post conference activities around the month of May. Davao can hold or host a number of these to take advantage of the presence of eminent personalities.

Davao can also offer special tours and exposure trips to the participants to the city showcasing its best practices in marine conservation like the turtle sanctuary, mangrove forest, and the Davao Gulf Development initiative.

Fourth, an ambitious event could be the holding of a sort of Davao-Manado Yacht Race or Davao-Manado fluvial parade in time of the opening of the conference. The Celebes Sea is the future Caribbean and a Davao-Manado cruise trip could be developed out of this idea.

I propose that the city take advantage of this big event. It would be a coming out party for Manado, and we should not miss this opportunity to play a supporting role.

(8:29 a.m.)

Top 40

Here are the richest Pinoys listed by Forbes Magazine and reported by Philstar.

I am surprised that Senator Manny Villar is listed as richer than Metrobank’s George Ty, Jollibee’s Tony Tan Caktiong, SanMig Boss Danding Cojuangco, and JG Summit’s John Gokongwei, among many other taipans and tycoons.

He is more than ten times richer than the Alcantara’s of Davao.

1. Jaime Zobel de Ayala and family ($2 billion)

2. Henry Sy and family ($1.7 billion)

3. Lucio Tan and family ($1.6 billion)

4. Andrew Tan ($1.1 billion)

5. Manuel Villar ($940 million)

6. George Ty ($870 million)

7. Andrew Gotianun ($860 million)

8. Enrique Razon Jr. ($820 million)

9. Tony Tan Caktiong and family ($790 million)

10. Oscar Lopez and family ($775 million)

11. Vivian Que Azcona and family ($670 million)

12. Inigo and Mercedes Zobel ($660 million)

13. Eduardo Cojuangco Jr. ($540 million)

14. Emilio Yap and family ($445 million)

15. John Gokongwei Jr. and family ($430 million)

16. Enrique Aboitiz and family ($375 million)

17. Alfonso Yuchengco and family ($365 million)

18. Beatrice Campos ($220 million)

19. David Consunji and family ($210 million)

20. Luis Virata ($200 million)

21. Gilberto Duavit Jr. and family ($191 million)

22. Menardo Jimenez and family ($190 million)

23. Felipe Gozon and family ($165 million)

24. Mariano Tan and family ($140 million)

25. Ramon del Rosario Jr. ($137 million)

26. Ronaldo and Rosalinda Hortaleza ($110 million)

27. Manuel Zamora ($105 million)

28. Betty Ang ($100 million)

29. Tomas Alcantara and family ($90 million)

30. Frederick Dy ($70 million)

31. Wilfred Steven Uytengsu Sr. ($60 million)

32. Salvador Zamora ($55 million)

33. Oscar Hilado and family ($51 million)

34. Philip T. Ang ($50 million)

35. Magdaleno Albarracin Jr. ($49 million)

36. Jesus Tambunting ($47 million)

37. Antonio Roxas ($36 million)

38. Manuel Pangilinan ($35 million)

39. Marixi Rufino-Prieto and family ($33 million)

40. Lourdes Montinola ($30 million)

 

(6:55 a.m.)

New Bacolod airport

The national government has just opened the new Bacolod-Silay airport.

I read the news in a number of online versions of national newspapers. However, none described the exact location or how far it is from downtown Bacolod.

Calling the attention of news reporters and editors. The obvious one important information readers and travelers who are not from Negros would want to know is how far this new airport is from Bacolod.

Short across the board

Heads should roll on this disappointing performance, or more precisely, lack of it.

Tax collection last year was short by P53.8 billion, the biggest in the country’s history.

The Bureau of Internal Revenue missed its target across the board – value-added tax (VAT) short by P38.187 billion; income tax by P9.715 billion; percentage tax by P4.098 billion; and excise tax by P3.915 billion.

Guess which performed the least in revenue collection? The Large Taxpayers Group headed by no less than the chief tax collector herself. This group handles the top 1,000 corporations.

Are we surprised? Hohum! Even the Central Bank has dodged the BIR.

To rub salt on our wounds, here comes the big tax cheats proposing new tax measures, which presumably would not be paid either.

Local governments would suffer the brunt of this national government ineptitude. They get 40 percent of the Internal Revenue Allotment. The national government plugs the loophole by selling its assets. Unfortunately, local governments have little to offer.

And if there are any, I would not agree to this unsustainable way of raising revenues.

(5:28 a.m.)

Burn them!

This advise is too radical.

But I tend to agree with it.

” … burn all economic schools in town. They have been teaching our leaders the wrong economics all along” is how nationalist economist Ding Lichauco concluded his column on the rise of China following a path of “rapid industrialization.”

(5:24 a.m.)

2008 Outlook

With looming recession in both our country’s major trading partners – US and Japan – the economic outlook for 2008 appears dim.

But I do not believe such a case for Davao City. The city has shown its resilience in the past, for instance, during the Asian financial crisis ten years ago. It continued to grow in spite of slowdown in the region and in the country.

I see a particular good year for the city especially with the rising boom in property development. Among the lined up projects for this year are the Ayala-Floirendo joint venture mixed use development of 10 hectares in front of Redemptorist Church, Filinvest’s housing and condo projects, Consunji’s second and bigger condo project and other property development, Robinson’s new housing project, and possibly SM and NCCC finally going into building call center facilities.

The city’s other good prospects are in agribusiness, tourism and ICT.

(6:12 p.m.)

Flag-raising

The City Council is in charge of the flag-raising ceremony at City Hall tomorrow. Our neophyte councilors were given the task to prepare a brief program headed by Councilor Rachel Zozobrado (3rd District).

I was asked to be the main speaker. I will discuss promoting C2G-G2C or citizen-to-government and government-to-citizen communication via the web such as my advocacy in promoting blogging as tool for participatory governance.

I was also invited as guest tomorrow at the regular Monday media forum at SM hosted by the Davao Press Club. There, I will discuss, among others, my privilege speech last week on seeking higher IRA share for cities and my projects for 2008 including the Business Plan Challenge, Consumer Welfare, and promotion of Davao-made products such as those under our OTOP – One City Ten Products program.

(11:03 a.m.)

Hidden cost

Lucio Tan’s airlines have followed the successful seat sales of Cebu Pacific with Air Philippines offering P88 seats. Philippine Airlines has its discounted fares too.

CebuPac started the seats sales war with its popular P1 and now P8 fare.

These prices are, however, misleading. Excluded from this incredible prices are fuel surcharges, insurance and other fees. From P1 as advertised, the actual fare Davao to Manila actually cost passengers more than P2,000.

In Australia, the government is drafting legislation requiring “component pricing” to advertise the final cost. Hidden charges mislead consumers from such fantastic offers.

We need this kind of law too in disclosing the actual price of airfares. We are only fooling ourselves in believing that airfares are as cheap as P1 or P8 or P88.

Here is more to understand Air Fares Aren’t Fair at all.

(5:51 a.m.)

City Council 2008 Foto

The City Council held its first official photo session on January 8 as it welcomes its new member, Paolo Duterte, middle. Thanks to Bing Gonzales.

(7:18 a.m.)