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Norway appoints new GRP-NDFP talks facilitator

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The Royal Norwegian Government (RNG) appointed a new special envoy to the Philippine peace process, its embassy in Manila announced Tuesday.

Diplomat Idun Tvedt is appointed as the new facilitator to the peace process between the Government of the [Republic of the] Philippines (GRP) and the National Democratic Front of the Philippines (NDFP), replacing Elisabeth Slåttum who had been the most successful to hold the post so far.

The RNG is the Third Party Facilitator of the GRP-NDFP peace process since 2001.

A lawyer by education, Tvedt has made a career in the Norwegian Ministry of Foreign Affairs in the areas of human rights and peace, the RNG Embassy said.

“In the past few years, she worked at the Norwegian Embassy in Bogota where she was a member of the facilitation team responsible for the peace process between the Colombian government and the FARC [Fuerzas Armadas Revolucionarias de Colombia],” it added.

Outgoing and incoming. Slattum (left) and Tvedt (right). [Photo by Dr. J. Alcantara]

Norwegian Ambassador to the Philippines Erik Førner said Tvedt serves as an encouragement to their embassy in Manila as it assists the peace process between the Manila government and the Leftist revolutionary movement.

“[Tvedt] has a high standing in the Norwegian Foreign Service and her knowledge and experience in peace and reconciliation matters are truly impressive,” Førner said.

Inquirer.net earlier reported Tvedt is scheduled to arrive in the Philippines Sunday for a two-day visit.

Førner said he is sad to see Slåttum go after her successful three-year term as special envoy.

Successful facilitator

Slåttum took over as special envoy from fellow diplomat Tore Hattrem in 2014 when formal peace negotiations between the Benigno Aquino government and the NDFP had already been suspended for more than three years.

The Rodrigo Duterte government resumed formal peace negotiations with the NDFP in August 2016.

Four formal talks had been held since in Norway, Italy and The Netherlands with substantial agreements on agrarian reform and rural development.

Duterte however cancelled the scheduled fifth round of negotiations in The Netherlands last May after failing to convince the NDFP to sign a bilateral ceasefire agreement before talks could continue.

Duterte, center, with the GRP negotiating team last Thursday. (Malacañan photo)

Duterte has hinted about resuming formal negotiations in a recent speech in Misamis Oriental while Malacañan Palace has also released photographs of the President meeting his negotiating team last Thursday.

The NDFP for its part said it has always remained open to resuming the negotiations.

“The NDFP had always been open to continue with the fifth round of the formal talks, which he (Duterte) has scuttled in May 2017,” NDFP chief negotiator Fidel Agcaoili said. # (Raymund B. Villanueva)

PNP blocks Bicol farmers’ caravan

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Hundreds of farmer-activists from Bicol complained of harassment when members of the Quezon Province police blocked their caravan on its way to Manila Sunday night.

The Provincial Public Safety Company-6th Maneuver Platoon of the Philippine National Police (PNP) blocked Lakbay Paraoma’s 28 buses, a jeep and a van at around 7:30 last night led by a certain Major Morillo in Barangay Talipan, Pagbilao in Quezon province.

Lakbay Paraoma is the Bicol Region contingent of the ongoing nationwide Lakbay Magsasaka to Metro Manila for a series of events demanding genuine agrarian reform.

In the convoy was the vehicle of Anakpawis Rep. Ariel Casilao who joined the peasant caravan from Bicol to Manila.

The PNP issued traffic violation tickets against the 28 caravan bus drivers who they alleged were not wearing seatbelts.

Two bus drivers signed the tickets and were fined PhP5,000 each while the others refused, saying they were wearing seatbelts.

Bus driver Dude Villareal admitted he was not wearing a seatbelt but insisted it was harassment to derail the caravan.

“We will continue to fight for the rights of the farmers. The PNP will always find ways, such as issuing bogus violations to silence the protesters,” Bert Author, chairperson of Kilusang Magbubukid ng Bicol (KMB-KMP), said.

While negotiations were ongoing, caravan participants cooked dinner and threatened to stage an impromptu rally should the PNP refused to let them through.

The PNP subsequently revoked the traffic violation citations, saying it was a mere misunderstanding, alternative media outfit Baretang Bikolnon reported.

The caravan arrived at Calamba, Laguna past midnight where they spent the rest of the night.

They will join the farmers from Mindanao at the protest camp-out at the Department of Agrarian Reform before their major protest rally at Mendiola on October 25. (Raymund B. Villanueva/With reports from and photo by Baretang Bikolnon)

NDFP to Duterte on talks resumption: ‘We have always been open’

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The National Democratic Front of the Philippines (NDFP) Negotiating Panel said it remains open to resume formal peace negotiations with the Rodrigo Duterte government.

Reacting to Duterte’s statement Friday he still has to talk to the New People’s Army (NPA), NDFP chief negotiator Fidel Agcaoili told Kodao the revolutionary movement is also open to reviving formal talks with the Government of the Republic of the Philippines (GRP).

The NPA is an allied organization of the NDFP.

“The NDFP has always been open to continue with the fifth round of the formal talks, which he scuttled in May 2017,” Agcaoili said.

Duterte hinted peace talks with the NDFP might soon be revived in a speech at Cagayan de Oro City’s Laguindingan International Airport Friday.

“Ideology ‘to. So I’m facing that. I have to talk to the NPA still,” Duterte said after ticking off a list of problems he said he is facing.

The Duterte GRP cancelled the fifth round of formal negotiations last May after failing to secure an open-ended bilateral ceasefire agreement with the NDFP.

The NDFP said the GRP demand was a precondition violating The Hague Joint Declaration that says cessation of hostilities shall come after social and economic as well as political and constitutional reforms agreements have already been agreed and signed by both parties.

Negotiators from both the NDFP and GRP said they are ready to sign agrarian reform and rural development agreements, including free distribution of at least one million hectares of land to poor farmers, when the fifth round of formal negotiations are finally held. # (Raymund B. Villanueva)

Lift martial law in Mindanao now, Moro groups urge Duterte

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Moro groups called for the immediate lifting of martial law in Mindanao and the pull-out of both Armed Forces of the Philippines (AFP) and United States troops following President Rodrigo Duterte’s declaration of the liberation of Marawi City after five months of fighting.

In a statement Thursday, Tindeg Ranao and Suara Bangsamoro said they find it ironic that Duterte has already declared the city’s liberation from the Isis-inspired Maute group earlier this week

“Their (AFP and US military) continued presence, legitimized by the imposition of martial law in Mindanao and their so-called role as architects of Marawi’s rehabilitation, conveniently glosses over the myriad of violations that the military itself has perpetrated,” the groups said.

Duterte announced Marawi’s liberation on his seventh visit to the besieged city October 17, three days shy of five months of brutal fighting and aerial bombing.

“Ladies and gentlemen, I hereby declare Marawi City liberated from the terrorist influence that marks the beginning of rehabilitation,” Duterte told AFP troops Wednesday.

The AFP however said Marawi has yet to be completely cleared of Maute fighters centered on an area less than a hectare in size near Lake Lanao.

National Defense secretary Delfin Lorenzana also preempted Duterte Monday, saying there is still no decision on the lifting of martial law.

“We are going to assess the entire situation in Mindanao, and we will make our recommendation to the President in due time,” Lorenzana told reporters.

Tindeg Ranao and Suara Bangsamoro urged for the establishment of an independent body to probe reports of human rights violations in line with the conduct of military operations in Marawi.

The groups said the government should be held responsible for the death and displacement of Marawi residents and the destruction of their communities due to the intensive aerial bombardment.

They added that the rampant divestment and destruction of properties in Marawi, alongside the grave humanitarian situation in evacuation centers should not be dismissed following Duterte’s announcement.

“Tindeg Ranao and Suara Bangsamoro stressed the Duterte regime’s accountability in the destruction of Marawi and the displacement of thousands of its residents,” they said.

The groups said that the policies and actions undertaken by the government have undermined efforts to resolve conflict in Moro areas, and have instead aggravated abuses.

They also warned about further resistance from the Moro people amid Marawi’s destruction and prevailing humanitarian crisis in evacuation centers around the city and in neighboring provinces.

“The Moro people are further pushed to fight against [Duterte’s] fascist policies,” the groups said. # (Raymund B. Villanueva)

Duterte an ‘arrogant fake’–CPP

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The Communist Party of the Philippines (CPP) called President Rodrigo Duterte an “arrogant fake” for cussing the drivers and small operators who recently held a two-day nationwide transport strike against the government’s planned phase out of the iconic jeepney.

“Nagpupuputok ang butse mo sa ibinubugang usok ng mga jeep, pero tameme ka naman sa napakakapal na usok ng mga coal-fired power plant na lumalason sa kapaligiran sa buong bansa,” the CPP said in a statement. [You are angry at the smoke belched by the jeepney but you are silent about the thick smoke from coal-fired power plants that poison the entire country’s environment.]

“The truth is, you just want drivers and small operators to die in hardship and poverty in order to serve your true masters,” the group added.

In his speech at the Federalism Summit in Naga City Tuesday, Duterte unleashed another cuss-filled tirade against the protesters,

“Mahirap kayo? P*******a, magtiis kayo sa hirap at gutom. Wala akong pakialam!” Duterte told the protesters. [You say you are poor? You sons of bitches, put up with hardship and hunger. I don’t have a care!]

The CPP said Duterte again showed his true color.

“[G]alit sa mga gutom at mahirap, laluna ang mga marunong manindigan at lumaban para sa kanilang interes,” the CPP said. [He is against the hungry and the poor, especially those who know how to stand up and struggle for their interests.]

In his speech, Duterte also branded transport group Pinagkaisang Samahan ng mga Tsuper at Opereytor Nationwide, human rights group Karapatan and Kilusang Mayo Uno as CPP fronts.

Dictator’s mindset

Other groups also condemned Duterte’s statements against the protesters.

“We say to Mr. Duterte: please stick to the issue! His self-indulged blabbing over the national television, refuses to address the real threat to the livelihood of the country’s jeepney drivers being posed by the Jeepney Phaseout Scheme,” KMU said.

KMU said Duterte refuses to listen to the jeepney drivers and operators’ legitimate demand and logical reasoning to junk the jeepney phaseout scheme.

“Duterte is proving he himself is a front of the oligarchs, such as the Ayalas, Pangilinan, and Cojuangco, who will be raking super profits from this scheme. The same oligarchs whom he handed control over MRT/LRT, express ways, telecommunication, power, and water,” KMU said.

“Duterte has the mindset of a dictator! When the poor exercise their right to speak up against threats to their livelihood, he brands their actions as ‘conspiracy’ and ‘rebellion’,” the group added.

Anakbayan Metro Manila burns an image of Duterte following the President’s cuss-filled tirade against striking jeepney drivers. (Photo by Kathy Yamzon)

Meanwhile, youth group Anakbayan-Metro Manila slipped through heavily-guarded Mendiola Street to hold a lightning rally at Malacañan Palace Thursday and condemn “Duterte’s inhumane and anti-poor statement” on the recently concluded transport strike.

The group burned Duterte’s image depicting him as “anti-poor, anti-people, and subservient to foreign masters” at the Palace’s Gate 7.

Anakbayan said it also holds Duterte accountable for the extrajudicial killings as well as the violent demolition and harassment of residents in Floodway, Pasig. # (Raymund B. Villanueva)

Why not ‘palit jeepney’ and driver-managed cooperatives?

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By Glenis Balangue

The Duterte administration has suspended classes on October 16-17, anticipating that the transport strike of jeepney drivers and operators to protest the phaseout of jeepneys may paralyze transportation nationwide. Yet, the government has been sweeping under the rug concerns not only of small drivers and operators but also of the riding public: displacement, lost livelihoods and impending fare increase. The replacement of jeepneys is referred to as transport modernization and those against it as anti-modernization. But behind the seeming noble objectives are big business interests that the government refuses to compromise.

Half-step forward

The government has laid down the groundwork for the eradication of existing jeepneys by 2020 through a series of issuances. The Department of Transportation (DOTr) issued the Omnibus Guidelines on the Planning and Identification of Public Road Transportation Services and Franchise Issuances or Department Order 2017-011 (Omnibus Franchising Guidelines) on June 19, 2017. This order concretizes the planned phaseout of public utility vehicles (PUVs) that are considered not roadworthy. It also lays down new franchising rules that only allow corporations or cooperatives with a fleet of 15 vehicles and up to apply for new routes. It restricts jeepneys and other small-capacity vehicles on major roads.

Local government units (LGUs) have to come up with local transport plans, which will detail the route network, modes, and required number of PUVs for each mode to deliver services. This will be the Land Transportation Franchising and Regulatory Board (LTFRB)’s basis for establishing the PUV route in the locality, the mode of transport and the number of franchises that will be issued. A new route rationalization plan that aims to limit the routes that small-capacity PUVs like jeepneys ply will also be based on the Omnibus Franchising Guidelines.

Aiming to have less emissions and more efficient mass transport is laudable. The transport sector accounts for 70-80% of air pollution in Metro Manila. But the government is doing this without regard to hundreds of thousands of drivers and small operators who will be displaced for as long as it is able to usher in a new arena for big business. Ironically, the government is once again making the poor pay for the cost of government neglect of mass transport.

Two steps backward

The government targets to replace some 250,000 jeepneys nationwide. The jeepney phaseout will impact drivers and small operators and the riding public in three major ways: 1) unaffordability of allowed substitutes despite the loan offered by the government; 2) corporate capture; and, 3) higher fares.

The Omnibus Franchising Guidelines requires a certain make of PUVs in order to qualify for a franchise. Pending unit specifications to be issued by the LTFRB, public utility jeepneys (PUJ) should be “below seven meters in length with door locations that allow boarding and alighting only from curbside, not from the rear”. Other features include a Global Navigation Satellite System (GNSS) receiver, free Wi-Fi, closed circuit television (CCTV) with continuous recording of past 72 hours of operation, automatic fare collection system for units within highly urbanized independent cities, a speed limiter, and dashboard camera. The LTFRB has yet to provide for the age limit of PUVs based on the year of the oldest major component such as chassis and engine/motor of the vehicle.

The Omnibus Franchising Guidelines also mandates the LTFRB to give priority to brand new and “environmentally-friendly” units in the allocation of certificates of public convenience (CPCs), the franchise needed to be qualified as a public utility vehicle, and deployment, based on route categories. The requirements are: a) units with electric drive and/or combustion engine that complies with Euro IV or better emission standards, b) units that comply with LTFRB-set age limit of oldest vehicle part, and c) refurbished/rebuilt vehicles that pass the type approval system test and issued a Certificate of Compliance with Emission Standards (initial registration) and roadworthiness test (renewal) of the Land Transportation Office (LTO).

There is a glaring lack of high capacity transport modes at present. Yet, the Omnibus Franchising Guidelines also restricts jeepneys on major roads, only allowing them as feeder services, operating in arterial and local roads to link neighborhoods and communities to other higher capacity modes such as rail and bus. PUJs are designated to serve routes with passenger demands of 1,000 passengers per hour per direction (pphpd). In cities, they will operate on a maximum length of 15 kilometers while in others, 35 kilometers.

Expensive units, insufficient financing scheme

Drivers and small operators have repeatedly decried the phaseout because they cannot afford electric or e-jeepneys (airconditioned: Php1.4 to Php1.6 million; non-airconditioned: Php1.1. to Php1.4 million), jeepneys with Euro IV engines (Php1 – 1.5 million), solar-powered vehicles (up to Php1.6 million). According to transport group Piston (Pinagkaisang Samahan ng Tsuper at Opereytor Nationwide), most of the jeepney operators only have Php200,000-400,000 as capital per jeepney and most are single operator (operator is also the driver or driver is a family member) units.

The government approved a jeepney loan program through the Land Bank of the Philippines (LBP) worth Php1 billion. Borrowers can avail of a loan package of Php1.2 million to Php1.6 million to buy either an air-conditioned electric, hybrid or Euro-IV jeepney. The LBP estimated that it could finance 650 to 700 units of e-jeepneys. Those who will avail of the loan would pay a downpayment and pay the rest using a “boundary” (the amount a jeepney driver needs to turn over to the operator per day, net of fuel expenses) payment scheme of Php800 a day for seven years at 6% interest. After seven years, the borrower will own the jeepney. The LBP will finance up to 95% of the acquisition cost of the jeepney, while the borrower will pay the remaining amount as equity. The Development Bank of the Philippines (DBP) has also set up a loan portfolio of Php1.5 billion to fund the acquisition of some 700 to 900 PUV units.

The government meanwhile approved a subsidy of Php2.2 billion to subsidize the equity of the jeepney loan of around 28,000 drivers/operators in the next three years starting with 250 borrowers in 2018. This is equivalent to a subsidy of Php80,000 per borrower, which will be coursed through the LBP.

Even then, drivers and small operators will find it hard to pay for the Php800 loan amortization daily for seven years as they already have difficulties paying the current Php450 boundary. Even the prospect of owning the jeepney after seven years is not enough for them to accept a scheme that will compel them to cough up such high payment conditions.

Impending fare hikes

Fare hikes are inevitable. One of the reasons why PUJ fares remain affordable is the relatively low capitalization, operation and maintenance expenses. Global Electric Transportation Ltd. (GET), the operator of COMET (Community Optimized Managed Electric Transport – a fleet of around 30 lithium battery-powered vehicles), admitted that because they are competing for the market of PUJs, they have to base their fare rates on that of PUJs.

Filipino commuters have been burdened by fare hikes with the government’s policy of putting mass transport in the hands of private corporations. The government’s turnover of the LRT 1 operations and maintenance to a private corporation resulted in the assurance of fare hikes for the private operator. The government also increased rail fares by as much as 87% in 2015 in order to make mass transport projects attractive to private investors.

Corporate capture

The Omnibus Franchising Guidelines basically mandates the LTFRB to consolidate operators and favor the establishment of “bigger coordinated” fleets of PUVs, including giving incentives and higher priority to operators with larger fleet sizes. The LTFRB will determine and implement the rule of “least possible number of operators” in a given route.

As part of the route rationalization policy, the government will require a minimum of 15 units per PUV fleet to be granted a franchise on new and development routes. Effectively, with the implementation of the Omnibus Franchising Guidelines, the government will close or shorten traditional PUV routes to reserve these for high capacity transport such as light rail transit and rapid bus transit, therefore displacing PUVs on these routes altogether.

These provisions will assure that current jeepneys will be replaced and new types of PUVs will be introduced. Hence, the scale of operation will also shift from single-operator or small fleet operator to corporations that have the capitalization to provide and maintain a big fleet of PUVs.

The government argues that drivers, instead of being subjected to the “boundary” system, can be salaried workers of these corporate fleet managers, with benefits as workers. However, transport group Piston claims that, in their experience fleet management still practices a quota system, which, like the boundary system, subjects drivers to high quotas, and therefore longer work hours, before they can receive their wages. Piston also decries that older drivers may have lesser chances of meeting education and age requirement of fleet managers, hence losing their source of livelihood completely.

Facilitating foreign interests

Finally, while drivers and small operators find e-jeepneys or jeepneys with Euro IV engines to be unaffordable, replacing some 250,000 jeepneys in the country would mean big business not only for foreign manufacturers of parts and assemblers of vehicles. Based on the minimum cost of Php1.2 million per unit, the replacement of 250,000 jeepneys is a market of Php300 billion.

The government is planning to use public money to subsidize foreign car manufacturers to facilitate their entry to this big, new market of PUV assembly. Under the Comprehensive Automotive Resurgence Strategy (CARS) Program, the government will fund assemblers of so-called eco-friendly PUVs. The CARS program has a Php27-billion subsidy for six years for assemblers to be given fixed investment support (FIS) and/or Production Volume Incentive to revive the car assembly industry in the Philippines beginning 2016. The Board of Investments has closed the third slot of CARS (the two being Mitsubishi and Toyota) in order to focus on PUV assemblers. For 2018, the Department of Trade and Industry (DTI) is asking Php1.64 billion to fund the incentive promised to carmakers.

This faulty version of jeepney modernization underscores the fundamental weaknesses of our economy. The government’s replacement for jeepneys will again be largely assembled from imported components by local assemblers or imported already built. Even PUVs assembled in the Philippines under the CARS program will still be primarily imported as the main platform and rolling chassis will still be built abroad by foreign companies such as Hino, Isuzu, Fuso and Foton while Euro IV engines will be sourced from India, China and Japan.  Even the COMET was designed and manufactured by US company, Pangea Motors, LLC. Likewise, one of the largest makers of the e-jeepney at present is a Taiwanese company and member of the Electric Vehicle Association of the Philippines (EVAP), Teco Electric and Machinery Co. Ltd. It has exported e-jeepneys from its factories in Taiwan to fleet managers in Metro Manila such as the Ejeepney Transport Corp. plying the business district of Makati.

 Why not palit jeepney and driver-managed cooperatives?

If indeed the government wants to usher in clean transportation, it should ensure that the burden is not on the shoulders of drivers and operators who only try to eke out a living. Instead of prioritizing subsidies for foreign car manufacturers, the government can use the CARS fund to initially subsidize jeepney drivers/operators so as not to displace them by the mere cost of new units. It is a noteworthy investment for the government to do so, given that the proliferation of this mode of transport has been a result of the chronic lack of livelihood opportunities and neglect of mass transportation in the first place.

The palit jeepney program can be complemented by an assured regular maintenance program at no or minimal cost to the operator/driver. This should address the added burden of having to be subjected to expensive maintenance for a technology that is still concentrated on a few big businesses.

This palit jeepney program, which can occur in phases, can be done through a program for government procurement of jeepneys based on a scaled-down price through volume. It can be complemented by a program of technology transfer to ensure that a genuine domestic PUV manufacturing sector, not only of body parts but primarily of the main components, is being developed.

The government should also maintain the option of single operators/drivers for franchising. At the minimum, it can restrict corporate fleet managers in cities to only one route. It can also limit franchises to genuine cooperatives or associations composed of small operators/drivers that are already operating. The government should set a fare-setting policy that is not market-based but founded on the principle that public transportation is a service that has to be reliable, safe and affordable for commuters. This rests on the recognition that public transport is a public utility and should not be left to the profit-seeking interest of the market. #

 

LTFRB lawyer crashes PISTON rally in Cubao

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Tension built up at a protest activity in Cubao, Quezon City as jeepney drivers on strike accused Land Transportation, Franchising and Regulatory Board (LTFRB) spokesperson Aileen Lizada of interrupting and heckling their press briefing.

Protesting drivers and supporters were holding a press conference early afternoon Tuesday when Lizada arrived at the venue and drew reporters to her for a media briefing of her own.

Lizada again belittled the Pinagkaisang Samahan ng mga Tsuper at Opereytor Nationwide (PISTON)-led two-day nationwide transport strike against the government’s planned phase-out of jeepneys and other public utility vehicles (PUV’s).

Lizada also threatened to file charges against participating drivers and operators as well as No To Jeepney Phase-Out Coalition leaders.

Initially taken aback by Lizada\s actions, Piston, Gabriela, Kilusang Mayo Uno, Migrante, and Anakbayan members responded with chants during Lizada’s briefing.

Quezon City Police District (QCPD) personnel formed a security ring around the LTFRB official.

Piston national chairpersonv George San Mateo called Lizada an “attack dog and deodorizer of President Rodrigo Duterte.”

San Mateo again urged President Duterte to a dialogue, saying he must scrap the PUV and jeepney phase-out plan.

In their press briefing before Lizada’s interruption, Piston said their two-day strike was succesful in informing the people of the “impending corporate take-over” of the entire public transport in the country. # (Report and photo by Kathy Yamzon)

Transport strike: Palace ignores LTFRB recommendation, suspends work and classes anew

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Malacañan Palace suspended government work and classes on all levels today on the second day of the massive protests against the planned phase-out of jeepneys despite claims by transport agencies the strike failed.

Executive Secretary Salvador Medialdea announced the nationwide suspension before midnight Monday after the Pinagkaisang Samahan ng mga Tsuper at Opereytor Nationwide (PISTON) claimed a 90 per cent paralysis of major jeepney transport routes on the first day of the strike.

”Obviously, PISTON’s transport strike had no effect. So we are not recommending class and work cancellation tomorrow,” Land Transport Franchising and Regulatory Board spokesperson Atty. Aileen Lizada said yesterday.

In a partial field report of transport paralysis midday Monday however, PISTON said 100 per cent of Parañaque and Makati jeepneys participated yesterday while Caloocan-Malabon-Navotas-Valenzuela routes registered 97 per cent participation.

Sta. Mesa, Manila routes registered 95 per cent while Novaliches, Zapote, Anda Circle, Litex, Marikina and the rest of Manila registered 90 per cent respectively, the group said.

Cubao routes registered 80 per cent participation, PISTON added.

In the regions, Nueva Vizcaya, Bulacan, Butuan and General Maria Alvarez (Cavite) registered 100 per cent, PISTON said.

Laguna (95%), Baguio (75%), Davao (95%), Pampanga (98%), Rizal (95%), Albay (95%), Camarines Sur (90%), Masbate (80%), Surigao City (60%) and Cebu (50%) also participated in the strike, the group added.

PISTON and other transport groups are protesting against the phase out of the iconic public transport vehicle and their replacement with brand new units costing from PhP1 to PhP1.8 million each.

“Adjusted for [six %] interest, the government subsidy [of PhP80,000] and payment terms of, the PhP1.6 million can balloon to a payable of almost PhP 2.2 million in seven year,” PISTON said.

“Which means that a jeep has to be paid PhP313,142.86 per year or Php869.84 per day excluding fuel, boundary and other indirect expenses,” the group added.

PISTON sought a dialogue with President Rodrigo Duterte last July to present their counter proposals for the modernization of the mass transport system but were dismissed.

“’Saka na yan! Magwelga muna kayo, dalawang buwan. Bigyan ko pa kayo permit,’ Duterte told us,” PISTON said. # (Raymund B. Villanueva)

On Consumer Welfare Month: 20 years of MWSS privatization, 20 years of violating the people’s right to water

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By Water for the People Network–The 20th anniversary of the privatization of the Metropolitan Waterworks and Sewerage System (MWSS) in August was considered a milestone by privatization proponents. The MWSS has often been used to showcase the supposed benefits of turning over water supply services to private corporations. But the start of government-declared Consumer Welfare Month is an opportune time to note that two decades of MWSS privatization has harmed the interests of the consumers and the general public. While ensuring huge profits for Manila Water Co. Inc. and Maynilad Water Services Inc., it has violated the people’s right to water, the various ways by which are listed below:

  1. MWSS privatization has resulted in soaring water rates as private concessionaires rake in massive corporate profits

Between August 1997 and August 2017, the basic tariff of Manila Water has soared by 969 percent. The basic tariff of Maynilad, meanwhile, has ballooned by 596 percent. The all-in tariff, which counts the basic tariff plus add-on charges, for Manila Water has increased by 762% during the same period. For Maynilad, it has jumped by 548 percent.

This translated to enormous profits with a combined accumulated income of Php94.5 billion from 2000 to 2015. Such soaring rates and massive profits for Manila Water and Maynilad were made possible by the concession agreements (CA) they signed with MWSS. Tariffs reflected the impact of inflation, adjustments in the foreign exchange rate, and the concessionaires’ petitioned basic charge which would allow them to supposedly implement their business plan and achieve a guaranteed rate of return in the succeeding five years.

Privatization guaranteed the profits of Manila Water and Maynilad not only by allowing them to pass on all the risks of running a business to the consumers. Privatization also legitimized the collection from the consumers of onerous and questionable charges by MWSS concessionaires.

During the last rebasing in 2013, it was exposed that Manila Water and Maynilad had been including questionable items in their application for new rates. As in previous rebasing exercises (2002 and 2007), they passed on to clueless customers the costs of their corporate income tax (CIT), unimplemented projects, advertising, donations, and recreation.

  1. MWSS privatization has seriously undermined the power and mandate of government to regulate the private concessionaires to protect public interests and welfare

The last rebasing also exposed a key feature of MWSS privatization which is how the power of the state to regulate businesses to protect public interest is greatly undermined. When the Regulatory Office (RO) prohibited the concessionaires from passing on their CIT and other questionable charges to the consumers, Manila Water and Maynilad promptly challenged the decision through international arbitration. This is a mechanism provided by the CA to settle disputes between the concessionaires and MWSS on the interpretation and implementation of the contracts’ provisions, including on the setting of rates. It is a secretive and undemocratic process that includes only representatives of MWSS and the concessionaires and without any public participation. It is being chaired by an unaccountable foreign third party that also represents big business interests.

Filipino taxpayers now face the possibility of shouldering as much as Php82 billion in additional burden if the concessionaires are able to secure favorable decisions from international arbitration. Already, the arbitration panel that heard Maynilad’s case ordered government to pay Php3.4 billion. These amounts represent the supposed losses of the concessionaires when the RO disallowed the continued collection of the CIT and other questionable charges. As stipulated in the CA, government has committed to pay for these supposed losses through what is called sovereign guarantee.

As early as 1998 or a year into privatization, Manila Water had already sought international arbitration to compel the RO to increase the firm’s rate of return contained in its original bid. Aside from the arbitration mechanism, concessionaires also resort to blatant arm-twisting to force favorable decisions from government. In 2001, the original investors of Maynilad blackmailed government to amend the CA to allow it to increase rates or else it would terminate the contract.

  1. MWSS privatization has further weakened the people’s right to water amid questionable claims by the concessionaires of improved water services

The soaring water rates and onerous charges being imposed by Manila Water and Maynilad have effectively marginalized poor households from enjoying the right to access water for domestic use. Amid depressed wages and chronic unemployment, water services along with other basic daily necessities, have put increasing pressure on ordinary families’ budgets.

While both concessionaires claim almost universal water supply coverage, poor communities in their service areas do not enjoy the same quality of service that well-off customers like richer households and commercial areas have. Instead of individual connections, poor communities have to make do with bulk meter connections. Aside from compromising the safety and quality of water, it is also not unusual that the water supply in these poor communities is not available 24/7.

Based on the latest available data, the number of persons per connection for Manila Water is seven, and nine for Maynilad, indicating the prevalence of bulk connections – mainly among urban poor communities – in the MWSS concession areas. Thus, while the concessionaires claim outstanding performance (which the RO apparently could not even independently verify), the truth is that many households, in particular the poor, are not individually connected to the water supply system, which is supposed to be the standard. The poor also end up paying more as block tariff rates apply on these bulk connections.

Aside from universal and 24/7 supply coverage, the concessionaires also promised to provide improved sewerage coverage, which they substantially failed to do amid limited investments despite skyrocketing water rates. In their original service targets, Maynilad committed to achieve 31% sewerage coverage by 2016 and 52% for Manila Water. As of December 2013 – the latest available data – Manila Water has only achieved 12% and Maynilad, 11 percent.

  1. MWSS privatization has deepened corporate and foreign control over vital infrastructure and key services in the country

From the onset, MWSS privatization has been an agenda of big corporate and foreign interests.  Foreign creditors World Bank, Asian Development Bank (ADB), and Japan Bank for International Cooperation (JBIC) pushed for the privatization of MWSS, which then owed them some US$800 million in debt. The World Bank’s International Finance Corp. (IFC) served as government consultant in MWSS privatization and designed the concession agreement.

The IFC is now an investor in Manila Water, raking billions of profits from a contract it designed itself. Manila Water is led by Ayala Corporation and United Kingdom (UK)-based United Utilities. Aside from the IFC, other foreign investors include Japanese giant, Mitsubishi Corp. as well as First State Investments of the UK, Singapore-based global fund manager Aberdeen Asset Management plc, and US-based equity mutual fund Smallcap World Fund Inc.

Meanwhile, Maynilad is currently controlled by Manny V. Pangilinan through the Metro Pacific Investments Corp. (MPIC) and DMCI Holdings of the Consunji family. MPIC , of course, is backed by  Indonesia’s Salim group. Other foreign interests in Maynilad are MCNK JV Corp., a unit of Japanese giant Marubeni Corp., and Lyonnaise Asia Water Limited, a unit of French firm Suez, one of the world’s largest water companies.

Water privatization is being challenged worldwide – from France where some of the first water privatization took place and where the world’s largest water firms are based – to Jakarta, Indonesia which privatized its water system the same year as Metro Manila and used the same model.

Water privatization must be reversed. There is no way out of the trap of exorbitant water rates and unreliable service for the poor unless the concession agreements with Manila Water and Maynilad are junked and the operation of the water supply system is taken over by a reformed public sector. # (Ibon.org)

Court acquits Army officer on Jonas Burgos case

/in /by

The Quezon City Regional Trial Court (QC RTC) acquitted an army officer of arbitrarily detaining disappeared activist Jonas Burgos Thursday, October 12, saying the prosecution failed to prove he participated in the actual abduction.

Philippine Army Major Harry Ballaga Jr. was cleared of the charge after QC RTC Branch Judge Alfonso Ruiz II found the testimonies of at least three Commission on Human Rights (CHR) witnesses lacking in probative value.

“The first duty of the prosecution is to identify the accused as malefactor of the alleged crime…The prosecution failed to prove beyond reasonable doubt the identify of Harry Ballaga Jr. as the person who abducted and arbitrarily detained Jonas Burgos,” part of the Court’s promulgation said.

“This kind (CHR’s) of testimony is hearsay in nature and, the Court is constrained to say, has little to no probative value enough to sustain the accused’s guilt beyond reasonable doubt,” it added.

Burgos, a farmers’ rights and welfare activist and son of Philippine press freedom and democracy icons Jose and Editha, was abducted on April 28, 2007 while having lunch at a restaurant inside the Ever Gotesco Mall along Commonwealth Avenue in Quezon City.

Both Ballaga and Burgos’ mother Editha calmly listened to the 15-minute promulgation.

Ballaga approached Mrs. Burgos after the reading of the judgement and offered his hand.  Mrs. Burgos graciously took it and nodded in acknowledgement of Ballaga’s gesture.

“We respect the decision of the Court. But this is just a delay. We continue the search; we continue the fight. And maybe this is God’s way of walking the crooked lines so that we can find him [Jonas],” Mrs. Burgos said.

“Even as we disagree with the Judge, we also know the institutions are imperfect because they are made up of imperfect people. And the Lord said, ‘Revenge is mine. I will repay.’ So they will have a bigger thing to contend with,” she added.

The National Union of People’s Lawyers, private prosecutors to the case, said their difficulty was the disappearance of eyewitnesses that could have made their case stronger.

“We ask the eyewitnesses to come forward. Because after the Court of Appeals hearings, they could not be found for reasons we could not divine, except they were probably harassed, threatened or for any other reason that did not work for [the quest for] justice for Jonas,” NUPL’s Atty Edre Olalia said.

“It’s not the end. There are still people out there who should be made accountable, including General [Armed Forces Chief of Staff Eduardo] Año, General [National Security Adviser Hermogenes] Esperon and a lot of other military officers,” Olalia said.

“I still believe that I will find Jonas,” Mrs. Burgos added. # (Raymund B. Villanueva)