Aguinaldo Shrine Pagsanjan Falls Taal Lake Antipolo Church Lucban Pahiyas Feast

PIA Calabarzon 2 PR ( May 17 & 20 , 2013), Dispatch for May 20 , 2013 ( Monday),

4 Weather Watch, 7 OFW Watch , 15 Online News

Weather Watch shared Dost_pagasa's status.

13 minutes ago

THUNDERSTORM WATCH

Issued at 10:00 AM, 20 May 2013

Thunderstorm is more likely to develop over Metro Manila within 12 hours. All are advised to monitor updates.

Weather Watch

2 hours ago

DZBB: Isasailalim sa disaster preparedness seminar ng NDRRMC ang lahat ng mga bagong halal sa lokal na

pamahalaan kasama na ang mga alkalde at bise alkalde. Ayon kay NDRRMC spokesman Balido, dapat na maging

pamilyar ang mga lokal na opisyal sa mga flood prone at landslide prone areas sa kanilang mga nasasakupan. Tiyak

umano kasing may mga bagong halal na mangangapa pa pagfating ng mga emergency situation. Sa susunod na

buwan inaasahang ilulunsad ng NDRRMC ang nasabing seminar.[

Weather Watch

3 hours ago

PAGASA weather forecaster Glaiza Escullar on DZMM

Re: Weather update

-Sa ngayon po ay mainit pa rin po pero hindi na natin inaasahang tataas pa sa pinakamataas na temperaturang

naitala noong Abril ‘yung ating temperature ngayon susunod na linggo.

-Kahapon po ay 34.8 degree celcius po ang naitalang pinakmataas na temperature.

-I-specify na po n gating ahensya kung anong lugar maliban doon sa may signal warning kung anong lugar pa po ang

makakatanggap ng mga malalakas na pag-ulan dulot po ng hanging Habagat.

Weather Watch

Saturday

DZMM: Niyanig ng magnitude 5.9 na lindol ang hilagang-silangan ng Japan. Ayon sa US Geological Survey, naitala ang

epicenter ng lindol sa Fukushima prefecture, 200km hilagang-silangan ng Tokyo. Wala namang napaulat na epekto

ang lindol sa dalawang nuclear power plants sa Fukushima, maging sa Onagawa nuclear power plant sa Miyagi

prefecture. Samantala, sinabi ni PHIVOLCS Dir. Renato Solidum na walang epekto ang lindol sa Pilipinas dahil

masyadong malayo ang epicenter nito. Hindi rin naglabas ng tsunami alert ang PHIVOLCS, maging ang Japan

Meteorological Survey dahil hindi sapat ang lakas ng lindol para magdulot ng tsunami.

Weather Watch

May 20 , 2013 (Tuesday) as of 10:51 AM

CAVITE : LAGUNA : BATANGAS : RIZAL :

QUEZON : Sunny in Lucena City

PIA Regional Watch

PIA OFW Watch

2 hours ago

DZMM: Ayaw ng pumasok sa kanilang mga trabaho ang ilan sa mga Pinoy sa Taiwan dahil sa matinding takot sa mga

Taiwanese. Itinatago rin ng Taiwanese media ang mga balita tungkol sa pangha-harass sa mga Pilipino dahil maaari

itong makasira sa imahe ng Taiwan.

PIA OFW Watch

2 hours ago

MECO Chairman Amadeo Perez on ABS-CBN

Re: Situation of Pinoys in Taiwan

-May confirm na tatlong nasaktan (na OFW) pati yung pinasok sa dormitoryo.

- Matagal ng pinaghahanap ng pulis ng Taiwan itong mga ito (nambubugbog sa mga OFWs). Bago pa itong

(pagkamatay ng Taiwanese fisherman),matagal na nilang ginagawa iyan sa Thailanders, Vietnamese, mukhang

ngayon naka-concentrate sila sa mga Pinoy. Mga teenagers ito na nakamotorsiklo.

-(Maramihang pagpapauwi) Iyan nga ho ang instruction dahil ang gobyerno ng Pilipinas ay nakahanda. Ang sabi ng

Pangulo, (if) worst case scenario comes, ay ilikas ang mga OFWs.

-87,000 po ang mga OFWs doon. Highly skilled workers po sila.

PIA OFW Watch

3 hours ago

Juliet Dela Cruz, OFW in Taiwan on DZMM

Re: Update sa Taipei

-So far po hindi po (apektado ng kaguluhan) kasi po malayo pi ito sa pinangyarihan.

-Doon po sa local news nila napapanuod ko rin po ang mga pangyayari na mayroon daw isang boarding house na

sinugod ng mga kabataang Taiwanese.

-Bale po nasaktan po napalo po ng bat, wala naman pong na-ospital kasi po ang pinagpapalo po mismo ay ang mga

salamin ng boarding house.

-Hindi naman po (balitang may namatay na Pinoy) nakita lang namin sa FB ‘yun eh.

-Kami po ay nag-iingat pa rin dito.

PIA OFW Watch

3 hours ago

ABS-CBN: Aminado ang ilang OFWs sa Taiwan na natatakot na silang lumabas doon dahil sa takot. Kahapon ay

lumabas sa isang pahayagan sa Taiwan na isang OFW ang binugbog at pinagpapalo ng baseball bat ng mga

Taiwanese. Inamin naman ito ng MECO at sinabing nasa pangangalaga na nila ang naturang Pinoy na nagkaroon ng

bali sa kamay.

PIA OFW Watch

Saturday

INTERAKSYON: Taiwan's leader on Friday called for calm and promised to protect Filipinos on the island amid

widespread anger at the Philippines over the killing of a Taiwanese fisherman. Taiwan President Ma Ying-jeou said he

has instructed relevant Taiwanese units to protect some 87,000 Filipinos living and working on the island to ensure

they are not harmed.

PIA OFW Watch

Saturday

MECO chairman Amadeo Perez on DZBB:

- Noong pumunta tayo roon, ipinaabot muna natin ang apology roon sa pamilya ng namatayan at sa mga tao sa

Taiwan. Doon sa sulat, sinabi natin na handa kaming magbigay ng tulong sa pamilya ng namatayan at ang perang iyan

ay hindi manggagaling sa gobyerno.

- Alam ng mga OFW sa Taiwan ang number ng aming tanggapan at alam din nila na kapag may kaganapan ay

ipagbibigay alam lang nila sa amin.

- Mayroon kaming hinihintay na kaganapn sa Taiwan sa Lunes.

- We are in touch with our OFWs. Ang mga ugnayan center natin, lahat ng nandoon na may problema ay tinutulungan

natin.

PIA OFW Watch

Saturday

DZBB: Inaasahang darating sa bansa ngayong araw ang 15 OFWs na galing sa Riyadh. Kung hindi umano magkakaroon

ng aberya sa kanilang flight ay darating ang mga ito 10:45 ngayong umaga. Ayon naman sa MIAA Media Affairs Office,

wala pa namang abiso sa kanila ang OWWA tungkol dito.

A. QUEZON

Tagalog news: 37 kabataan, benipisaryo ng proyektong pangkabuhayan

By Carlo P. Gonzaga Monday 20th of May 2013

PAGBILAO, Quezon, Mayo 20 (PIA) -- May 37 kabataan na miyembro ng dalawang 4H club mula sa

dalawang barangay sa bayang ito ang nakatakdang maging benepisaryo ng proyektong pangkabuhayan ng

Agricultural Training Institute (ATI) 4A.

Sinabi ni Mariel Celesta C. Dayanghirang ng ATI-4A kasama si Lizbeth David na sila ay nagtungo kamakailan

sa Barangay Bukal at Barangay Sta. Ana upang tignan kung totoo ang dalawang project proposals na

isinumite sa kanilang tanggapan ng dalawang 4H club.

Ang proyektong pangkabuhayan ay kinabibilangan ng pagpapataba ng baka para sa mga miyembro ng 4H

club ng Barangay Bukal habang "school-based oyster mushroom production" naman ang ipinasang

proyektong pangkabuhayan ng mga miyembro ng 4H club ng Barangay Sta. Ana.

Ayon kay Dayanghirang, bawat proyekto ay nagkakahalaga ng P50,000 kung saan hindi lamang ang mga

estudyante ang makikinabang kundi maging ang eskuwelahan na pinag-aaralan ng mga ito.

“Ang pagkakaloob ng proyektong pangkabuhayan sa mga 4H club ay isang regular na programa ng ATI-4A.

Bawat 4H club sa buong Calabarzon na nagsusumite sa amin ng project proposal at kapag napili base sa

evaluation ay saka ipinagkakaloob ang pondo,” ayon pa kay Dayanghirang.

Idinagdag pa ni Dayanghirang na ang pondong ipinagkakaloob ng ATI-4A ay depende sa iminungkahing

proyekto na isinusumite sa kanila ng 4H club, kung saan ito ay mula P50,000 hanggang P100,000. (CPG,

PIA4A at ulat kay Mariel Celeste C. Dayanghirang, ATI4A)

B. CAVITE

C. LAGUNA

OCD-4A orients PWDs on disaster risk reduction management and

climate change

Friday 17th of May 2013

CALAMBA CITY, Laguna, May 17 (PIA) -- The Office of Civil Defense (OCD) IV-A in partnership with Tahanan

na Walang Hagdanan Inc., recently conducted a two-day orientation on disaster risk reduction and

management (DRRM) and climate change adaptation (CCA) for Persons with Disabilities (PWDs).

Vicente F. Tomazar, OCD IV-A regional director and chair of regional DRRMC describe the activity as a

community-based training on the inclusion of disability element in all the phases of DRRM and CCA.

The undertaking aims to promote the rights-based approach in addressing the needs of PWDs in times of

disaster and other emergencies in line with the country’s obligation to implement the United Nations

Convention on the Rights with Persons with Disabilities.

For two days, about 100 PWDs and stakeholders gathered for an unprecedented discussion of DRRM and

CCA to address the specific needs of person with disabilities. The concept behind the training was to gather

baseline information, followed by a small group discussion and then a large group discussion to reach

conclusions. All sessions focused on presentation and review of the existing data for the relevant subject,

followed by development of consensus recommendations and/or expert opinion and a research agenda to

advance the current knowledge base.

DRRM and CCA is a critical topic for persons with disabilities. Summarily, the participants agreed that DRRM

efforts for people with disabilities remains a fundamental challenge to the field, and must be included in

general plans, which need to be inclusive of all those living in vulnerable areas. All of the disability and

disaster efforts must be planned and executed in combination with overall strategies for poverty reduction;

environmental issues; gender; local knowledge; inclusive policies/practices/ training.

During an emergency, people with disability may require assistance. Some physical disabilities may be

obvious while others, such as mental illness or intellectual disabilities, may not be. Every person and every

disability is unique. Respecting people with disabilities and treating them with dignity must be part of all

the aspect of DRRM.

The term “people with disabilities” covers a broad spectrum of human experience and individual

circumstances. So many different types, levels and combinations of physical, cognitive, sensory and mental

conditions fall under the general umbrella of “disability” that the term, by itself, gives little useful

information about the specific needs of any particular individual to whom it is applied.

It is important that emergency services personnel, relief workers, incident managers and government

leaders cultivate an understanding of the diverse identities and needs of people with disabilities. No single

strategy for outreach, planning, communication, evacuation, or search and rescue will work for everyone.

Planners, trainers and responders must be mindful of the wide variety of needs and issues for people with

disabilities. (Fred M. Bragas, OCD4A/PIA4A)

D. BATANGAS

E. RIZAL

19 MAY 2013.

Malacanang appeals to candidates to help Metro Manila Development Authority cleanup campaign

paraphernalia

Malacanang says Hollywood stars' recent visit to the Philippines ' good press'

Malacanang says graduates of DepEd and Philippine Business for Education's 1,000 teachers

program to be given hiring priority to teach in schools

Malacanang appeals to candidates to help Metro Manila Development Authority cleanup campaign paraphernalia

Malacanang appealed to all candidates who participated in the May 13 midterm elections to help the Metro Manila Development Authority in cleaning up all campaign paraphernalia that still litter the country’s streets. Deputy Presidential Spokesperson Abigail Valte issued the appeal in a press briefing aired over government-run radio station dzRB Radyo ng Bayan on Sunday.

She said it was the candidates’ duty to show the true meaning of public service by joining hands with the MMDA and clear all campaign paraphernalia. ―Sa lahat ng kandidato, sana naman huwag niyo namang iwan yung kalat ninyo. Tulungan ninyo naman ang MMDA,‖ Valte said. ―Kahit hindi kayo nag-wagi o kaya hindi kayo pinalad, pakita natin ang puso natin para sa public service by helping MMDA clear yung mga posters, tarpaulin at yung iba’t ibang paraphernalia na iniwan niyo mula nung huling eleksyon,‖ she stressed. PND (rck)

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Malacanang says Hollywood stars' recent visit to the Philippines ' good press'

Malacanang said on Sunday that the recent visits to the Philippines by big-name Hollywood stars meant ―good press‖ for the country that could result into more tourist visits and further spur the country’s economic progress. Hollywood’s A-list celebrities Vin Diesel and Sarah Jessica Parker were in Manila last week to lead the Asian premiere of the sixth installment of the action movie ―Fast and the Furious‖ and to formally open retail giant SM’s newest mall in Taguig City, respectively. Deputy Presidential Spokesperson Abigail Valte said the stars’ visit to the country meant that they ―have had good experience here with us‖ that she hoped would be passed on to their friends and fans to entice them to visit us also. ―That’s good press for us kasi naging kasama ang Manila doon sa Asian premiere ng nasabing pelikula and certainly generates good press for us especially since the reports that have been coming out are that these personalities have had good experiences here with us,‖ Valte said. ―…and hopefully this reaches their friends and their fans and that this will encourage them to visit us also,‖ she added. PND (rck)

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Malacanang says graduates of DepEd and Philippine Business for Education's 1,000 teachers program to be given hiring priority to teach in schools

The graduates of a scholarship program spearheaded by the Department of Education and the Philippine Business for Education will be given hiring priority to work as teachers in the country’s public schools, Deputy Presidential Spokesperson Abigail Valte said on Sunday. According to Valte, the DepEd and PBEd’s flagship scholarship program called the 1000 Teachers Program aims to uplift the image and quality of the teaching profession by attracting the best and the brightest to join the teaching ranks. Under the program, promising high school graduates, who are part of the top ten percent (10%) of their graduating class, are recruited and given four-year B.S. Education scholarships in select schools all over the country. Scholars may major in Math, Science, English, Elementary, or Early Childhood Education and are required to maintain an average of B to stay in the program. The scholarship includes free tuition and miscellaneous fees care of PBEd’s reputable partner teaching institutions (TEIs), Php 2,000 monthly allowance, Php 2,000 semestral book allowance, and LET review and exam fees. Immediately after passing the LET, scholars are required to teach in a local public school for five (5) years as return service. The 1000 Teachers Program agreement between PBEd and DepEd is in support of the Department teacher requirement under the K-12 program which the Asian Development Bank estimates at 84,616 items for around two million senior high school students in 2017. The pledge to hire graduates from the scholarship program is included in the Memorandum of Agreement signed between the DepEd and the PBEd last May 16. PND (rck)

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17 MAY 2013

Idineklara ng Pangulong Aquino na special non-working day ang Mayo 22 para sa pista ng Gingoog City, Misamis Oriental

Idineklara ng Pangulong Aquino na special non-working day ang Mayo 22 para sa pista ng Gingoog City, Misamis Oriental

Idineklara ng Pangulong Benigno S. Aquino III ang Mayo 22, natapat sa araw ng Miyerkoles, bilang special non-working day sa Lungsod ng Gingoog sa lalawigan ng Misamis Oriental kaugnay ng pagdiriwang ng taunang pista ng lungsod. Sa pamamagitan ng Proklamasyon Blg 577 na nilagdaan ni Kalihim Tagapagpaganap Paquito N. Ochoa, Jr. noong Mayo 15 ay sinabi ng Pangulo na nais niyang mabigyan ng lahat ng pagkakataon ang mga mamamayan ng Gingoog na masaya at makulay na maipagdiwang ang pista ng kanilang lungsod at makalahok sa mga seremonyang idaraos. Ipinagdiriwang ng Lngsod ng Gingoog ang kanilang taunang pista tuwing Mayo 22 upang parangalan si Santa Rita de Cascia. Ika-18 dantaon nang pasimulan ng mga paring Agustino ang pagdiriwang ng pista ni Santa Rita. PND (js/zaf)

ONLINE NEWS

18 MAY 2013

Phl sends initial export of corn feed silage to South Korea

Distribution of Hacienda Luisita by middle of the year- DAR

GSIS cancels policy on suspension of members

Bamboo industry action plan scheduled for approval

Improving governance and community participation a must for development – DSWD

Deputy Administrator Josefino Torres named as one of 2013 Outstanding San Pablenos

Foreign portfolio investments yield Net Inflows in April

Peace, stability, and rules-based settlement of disputes in South China Sea important for EU - supports ASEAN progress on human rights

Vice President Binay to undertake Working Visit to Germany

PHL Embassy seeks to establish concrete business partnerships with Laos

Kuwaiti pedophile nabbed at NAIA

7 groups qualify to bid for the Mactan-Cebu International Airport Project

Agusan Norte farmers get individual titles

PDIC files criminal raps vs. ex-bank President

Moral hazard and ‘too big to fail’

Phl sends initial export of corn feed silage to South Korea

Source: http://www.da.gov.ph

The Department of Agriculture in partnership with corn industry groups recently sent an initial shipment of 24 metric tons (MT) of corn feed silage for cattle to Busan, South Korea. The shipment is part of the total 15,000 MT of corn feed and grains worth P75 million that will be exported to South Korea up to December 2013. Agriculture Secretary

Proceso J. Alcala (middle) said exporting corn silage will increase farmers’ incomes by an average of 20 percent. He is shown leading the send-off, April 30, 2013, at the Manila International Container Terminal, Port of Manila. Joining him (from left) are: Michael Jang, president of Korea Marine Transport Co.; Tommy Lee Kum Yuk, of Miwang Co. Philippines; DA assistant secretary and national corn program coordinator Edilberto de Luna; and Butch Umengan, executive director of National Corn Competitiveness Board and president and CEO of Ploughshares, Inc. (Photo by Alan Jay Jacalan, DA Information Service)

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Distribution of Hacienda Luisita by middle of the year- DAR

Source: http://www.dar.gov.ph

The Department of Agrarian Reform (DAR) reiterated today its intention to complete the process of distributing the land to the farmworkers of Hacienda Luisita by the middle of the year, after the subdivision scheme for the vast landholding was recently completed. This was confirmed by no less then DAR Secretary Virgilio De Los Reyes, after he signed early this week the subdivision scheme indorsed by the DAR Provincial Office of Tarlac. This entailed a process that required exhaustive preparation, careful review, several meetings, and attention to detail, as more than six thousand lots of more or less equal size had to be carved out of the net distributable area of the landholding. In addition, the scheme was finalized in such a way that all the farm lots have access to either roads and/or fire breaks.

With the finalization of the subdivision scheme, three (3) of the most difficult and time-consuming steps in the acquisition process has been completed, including the posting of the master list of farmworker-beneficiaries and the conduct of the segregation survey done previously.

He also pointed out that the preparation and submission of the required survey returns is now ongoing, and is expected to be completed by the next week or so, after which the various technical descriptions for the 6,212 farm lots will be immediately generated by the survey firm once the Land Registration Authority (LRA) approves them. This process will hopefully be completed on or before the end of the month. Earlier, the LRA had approved the segregation plan for the landholding. The issuance of Republic of the Philippines (RP) titles and Certificates of Land Ownership Award (CLOAs) will follow in due course.

Meanwhile, various activities are currently being undertaken all at the same time, in order for the DAR to meet its self-imposed deadline, in close coordination with the Land Bank of the Philippines (LBP), LRA, other government agencies such as the Sugar Regulatory Administration (SRA), National Dairy Authority (NDA), and the Department of Agriculture (DA)-Agriculture Training Institute (ATI), among others, as well as local government officials in Tarlac.

The agricultural support services program for beneficiaries (diversified sugar block farming, among others) has also been firmed up, and a public information campaign for this purpose will be undertaken next week. The social preparation activities for the provision of such support services continues to date, including the collection of prescribed forms for the beneficiaries who prefer to have their respective lots located adjacent to others. This also includes organizing work for the possible formation of appropriate farmers’ organizations that may serve as conduits for said support services.

The preliminary valuation work of the LBP is likewise ongoing, with an initial Memorandum of Valuation (MOV) having been issued already. The mechanics of the lot allocation system has essentially been finalized, and preparations for its implementation have already begun. More "pulong-pulongs" with farmer-leaders and/or barangay officials have been scheduled (six were held before). And work flows with the Registry of Deeds are now in place to handle the generation of thousands of CLOAs.

Finally, it was noted that all the parties had finally agreed last month to a process (including the selection criteria), involving the eligibility of the interested firms and the evaluation of their respective proposals, that will result in the selection of the accounting firm that will conduct the special audit of Hacienda Luisita, Inc. and Centennary Holdings regarding the proceeds in the amount of P1.3 Billion arising from the conversion of five hundred hectares and the expropriation of a portion for the SCTEX.

As the facilitator of this process with the concurrence of the parties and in accordance with the directive of the Supreme Court in its final and executory decision on 24 April 2012, the DAR expressed the hope that this agreement will continue to hold, as this will expedite the selection of the firm by early next month at the latest. It noted that the Supreme Court had ordered that the selection of the firm should be approved by all the parties. Otherwise, in the event any and all issues are unresolved, or disagreements crop up among the parties regarding the process or any other related matter, there will be no choice for the DAR but to elevate this back to the Supreme Court for clarification and guidance.

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GSIS cancels policy on suspension of members

Source: http://www.gsis.gov.ph

State pension fund Government Service Insurance System (GSIS) today announced that beginning July 2013, government employees working in agencies who are delayed or deficient in their premium payments will not have their loan privileges suspended anymore. The new policy also provides remedial guidelines for agencies already suspended so that their employees’ GSIS privileges can be restored. On April 25, the GSIS Board approved a new policy which addressed agencies’ non-remittance of premium

contributions, without resorting to the suspension of the loan privileges of its employees. "It's wrong that these employees lose their access to GSIS loan windows and dividends when their social insurance contributions are mandatorily deducted from their salaries," said President and General Manager Robert Vergara. "This is a welcome development because public school teachers heavily depend on GSIS loans to pay for the schooling of their children. We are so glad that the new GSIS Board is implementing reforms in their policies to help small earners among government employees make both ends meet," Benjie Valbuena, president of the Alliance of Concerned Teachers (ACT) and Manila Public School Teachers’ Association (MPSTA) said upon hearing the news. Similarly, Teachers' Dignity Coalition (TDC) chairperson Benjo Basas commended the new GSIS management for hearing out its members’ plea to spare them from the iniquities of their employers. ―Maraming salamat sa dramatic improvement sa pagtrato sa aming mga miyembro. Nakikinig na ang GSIS ngayon sa aming mga miyembro at kinukunsidera na ang aming opinion. Sana ay magpatuloy pa ito," Basas exclaimed. Section 6 of Republic Act 8291 or the GSIS Act of 1997 provides that "... the employer shall deduct each month from the monthly salary or compensation of each employee the contribution payable by him...". Suspended agencies may choose any of three options to restore their regular status. They may pay their premium delinquencies in full; or restructure their arrearages and commit to settling these through a Memorandum of Agreement (MOA) with GSIS; or upon payment of at least 90% of any three consecutive months’ premium obligations beginning July 2013, sign an undertaking to enter into a MOA with GSIS for the settlement of its premium deficiencies. To date, more than 200 agencies have concluded similar agreements with the pension fund -- restoring the full benefits of over 800,000 employees, including the Department of Education. PGM Vergara explained that unless the suspended agency pays its arrears in full or honors its obligation to pay under the terms of the agreement, retirement benefits of employees will be based on periods with paid premiums. However, GSIS will still consider the total length of service in determining the eligibility of members to retirement, or a minimum of 15 years. Meanwhile, delinquent agencies defined as those who fail to remit at least 90% of the mandatory premium contributions for a due month (10th day of the following month) or comply with the terms of their agreement, will receive the appropriate demand letter and a subsequent notice of default from GSIS should the amounts remain unpaid. These notices will remind agencies that GSIS has not received the prescribed amount for the due month and continued non-payment will reduce their employees' entitlements adversely impacting their loanable amounts and retirement benefits. GSIS will also coordinate with Agency Authorized Officers and heads of employees' union and personnel office to inform them on the failure of their agencies to remit the required payments. "We enlist our members' cooperation to ensure that the mandatory premium obligations and other amounts due the pension fund are remitted to the System to guarantee they receive the correct level of benefits." This latest policy forms part of the continuing efforts of the Board and Management to provide a more member-focused and responsive service to its more than 1.4 million active members.

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Bamboo industry action plan scheduled for approval

Source: http://www.dti.gov.ph

The proposed Philippine Bamboo Industry Development Program’s (PBIDP) 2013 Agenda for Action will be presented to the Philippine Bamboo Industry Development Council (PBIDC) for its final approval on May 27, 2013. ―Early this year, we conducted a series of planning workshops to address the need to come up with a wide-ranging action plan for the Philippine bamboo industry. This plan was done through synergistically mobilizing convergence at the national and subnational levels,‖ Department of Trade and Industry (DTI) Undersecretary Merly M. Cruz said. She also heads the PBIDIC ExCom, which assists the PBDIC in identifying programs and projects and generating resources. The country’s bamboo industry is guided by Executive Order (EO) No. 879 in providing the over-all policy and directions of the program for all its stakeholders. EO 879 is otherwise known as ―creating the Philippine Bamboo Industry Development Council (PBIDC) to promote the bamboo industry development project and directing the use of bamboo for at least 25% of the desk and other furniture requirements of public elementary and secondary schools and prioritizing the use of bamboo in furniture, fixtures and other construction requirements of government facilities and allocating funds therefore and other purposes.‖ The PBIDC ExCom is assisted by its Technical Working Group (TWG), which serves as the Secretariat headed by the Executive Director of the Cottage Industry Technology Center (CITC) and composed of representatives designated by PBIDC members. The PBIDC is composed of the following: Secretary of the Department of Trade and Industry (DTI) as Chair, Secretary of the Department of Environment and Natural Resources (DENR), Secretary of the Department of

Agriculture (DA), Secretary of the Department of Education (DepEd), Secretary of the Department of Science and Technology (DOST), Secretary of the Department of Labor and Employment (DOLE), Chair of the Executive Committee, League of Municipalities of the Philippines (LMP), two representatives from non-governmental organizations (NGOs), one representative each from two private industry associations. The PBIDC Executive Committee (ExCom) with the assistance of the TWG recently consolidated and harmonized the proposed Philippine bamboo industry action plan for 2013. ―In logically putting together and exhaustively patching up some gaps in the plan during the workshops, we adopted the industry cluster development using the value chain approach. This approach brought together relevant key stakeholders from public, private and civil society sectors at all levels to work collectively in implementing the agenda for action toward achieving the agreed program goals and objective,‖ Cruz said. The workshops were attended by representatives of national government agencies such as the DTI, DENR, DA, DOST, DepEd, DOLE, and private industry associations like the Philippine Exporters Confederation, Inc. (PHILEXPORT) and the Philippine Chamber of Commerce and Industry (PCCI), and a non-governmental organization (NGO), namely the Bamboo Phil and Ahon Movement. The workshops have also extensively discussed the plan’s three major outputs, which are environmental management (led by DENR), business development (led by DTI), and the social development (led by NGOs and private industry associations). These outputs are intertwined in two outcomes, namely, improving environmental health and sustainability, and competiveness of the bamboo industry. ―For the business development component, we encourage the private sector to pursue the production of high end products in the construction and creative industries. In this direction, the DTI will assist in developing bamboo products and improving their design, quality and competitiveness. Hence, we can establish bamboo as an alternative to wood products,‖ Cruz said. The business development component is led by DTI Region 3 Director Blesila A. Lantayona, the national bamboo industry cluster coordinator. ―Together with the DTI and other agencies, we have worked on the promotion of bamboo industry development since 2010. I am hopeful that we are here considering this endeavour cannot be done by one agency alone,‖ PHILEXPORT Board of Trustees for the furniture sector Myrna Bituin said in an interview during one of the workshops. Bituin noted that she has seen the benefits of the bamboo industry development in countries like China and Vietnam, and went around the country to see the capacity of people in producing bamboo products. She also said efforts to promote the industry will benefit the poor or farmers. ―We hope to see all three outputs or components of the bamboo industry achieved in synchronized manner for focused and unified interventions to achieve the set outcomes of the bamboo industry. For instance, we cannot move the business development component without sufficient raw material supply of bamboo. The other components should be strong for us to deliver our overall goal,‖ Cruz said. ―The supply or propagation of bamboo is a critical component in supporting the bamboo industry development. We are glad that the government has launched the National greening Program (NGP) in 2011,‖ Cruz said. The NGP or EO 26 commits to plant some 1.5B trees covering about 1.5M hectares for a period of six years from 2011-2016. All other greening efforts of the private sector and civil society are harmonized under the NGP. ―As previously noted by DENR Secretary Ramon Paje, this program goes beyond mere tree planting. It endeavors to reduce poverty, stabilize food security, and mitigate climate change,‖ Cruz said. Cruz noted that these objectives are consistent with the proposed bamboo industry plans’ interlinked outcomes, which are improving environmental health and sustainability and competiveness of the bamboo industry. She added that the PBIDP has aligned its objectives with the government’s goal to achieve inclusive growth and poverty reduction. These goals can be achieved using the resources of the PBIDC and member agencies through the various interventions and activities identified in the plan.

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Improving governance and community participation a must for development – DSWD

Source: http://www.dswd.gov.ph

The provincial local government unit (PLGU) of Compostela Valley recently signed a Memorandum of Agreement (MOA) with the Department of Social Welfare and Development (DSWD) and the Department of the Interior and Local Government (DILG) for the pilot testing of the enhancement of Kapit-Bisig Laban sa Kahirapan-Comprehensive and Integrated Delivery of Social Services (Kalahi-CIDSS) at the provincial level. Compostela Valley Governor Arturo T. Uy signed the MOA with Director and Kalahi-CIDSS National Project Manager Edgar G. Pato, representing DSWD Secretary Corazon ―Dinky‖ Juliano-Soliman, and DILG Undersecretary Francisco Fernandez, representing DILG Secretary Manuel ―Mar‖ Roxas. According to Director Pato, Compostela Valley was chosen as one of the three pilot sites because of its active participation in the implementation of Kalahi-CIDSS, by providing PhP 4.29 M counterpart fund since 2011. The PLGU also developed the Assistance Towards Unity for Progress thru Empowerment, Accountability, Cooperation, and Efficiency (ATU-PEACE) initiative, which was patterned after Kalahi-CIDSS and also uses the

community-driven development (CDD) as a strategy in poverty alleviation. CDD is a poverty alleviation strategy which gives citizens the power and the responsibility to analyze and address local issues that impede their development through participatory decision-making. It is the principal strategy of Kalahi-CIDSS, one of the three core programs under the DSWD, alongside the Pantawid Pamilyang Pilipino Program (Pantawid) and the Sustainable Livelihood Program (SLP). ―Here truly lies the heart of community empowerment; communities are part of the project every step of the way,‖ said Director Pato, describing the strategy of Kalahi-CIDSS. ―We are helping communities help themselves move toward development,‖ he added. Director Pato also discussed the National Community Driven-Development Program (NCDDP), the scaling up of Kalahi-CIDSS into a nationwide strategy for poverty alleviation. He explained that the NCDDP will be three times the coverage of Kalahi-CIDSS and will be geared toward development at both the local and national levels. However, he cautioned that there should be tighter relationship between the DSWD and the LGUs to effectively implement the program. ―The successful execution of NCDDP calls for an increased focus on governance,‖ he said. This was supported by Undersecretary Fernandez, who said that the National Government should pay close attention to its poverty-alleviation programs by facilitating collaboration between the different national government agencies and the LGUs. He narrated a discussion with President Benigno Aquino III where they discussed how they can make the economic growth of the Philippines inclusive to everyone. ―Dapat walang iwanan [No one should be left behind],‖ he said. ―Pobre man ngayon, pero dapat hindi mamamatay na pobre [Poor people need not die still poor],‖ he added. For his part, Governor Uy is thankful for the inclusion of Compostela Valley as one of the chosen sites for the engagement. ―Compostela Valley is honored and fortunate as one of the three provinces chosen to be the pilot areas,‖ he said. Governor Uy also praised the CDD strategy of Kalahi-CIDSS, saying that the project’s focus on improving governance was actually one of the reasons why he adopted the system in ATU-PEACE. Describing his early years in government as an ―eye opener‖, he narrated how he saw for himself how difficult it was for the communities to be excluded in deciding what projects will be implemented in their areas. The arrival of Kalahi-CIDSS in Compostela Valley provided the vehicle for Governor Uy to initiate change in the province. ―I saw the importance of participation in governance,‖ he said. The pilot study, according to Governor Uy, will help in the development of transparency, unity, and good governance. He reiterated the importance of working together with various agencies such as the DSWD and the DILG to push for development. ―With constant partnership, better lives with Compostelaños will not be too far ahead,‖ Governor Uy ended.

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Deputy Administrator Josefino Torres named as one of 2013 Outstanding San Pablenos

Source: http://www.owwa.gov.ph

OWWA Deputy Administrator Josefino ―Pin‖ Torres was named as one of the Ten Outstanding San Pableño 2013. The same accolade was given to former DOLE Secretary and now Supreme Court Justice Arturo D. Brion in 2008. The Search and Award Committee headed by Chairperson Susan de Leon Oribiana presented the awardees during a formal dinner held at Palmera’s Garden Restaurant along Maharlika Highway in Brgy San Rafael, San Pablo City on May 8 of the given year. The recognition was given to the sons and daughters of San Pablo who showcased excellence in their chosen field of expertise and exemplified the best attributes to the City of San Pablo. The awardees were also chosen as they rose to the heights of progress in human endeavors and through their achievements brought honor and glory to the city. Their success is to be emulated by the next generation. Deputy Administrator Torres was given the award for Government Service for his unwavering commitment to uplift the interest of Filipino workers both here and abroad through his service rendered at several agencies of the Department of Labor and Employment particularly at OWWA. Sharing the recognition were nine other recipients namely:Retired RTC Judge and Law Dean Adelardo S. Escoses for Law/Judiciary; Special Education Pricipal Alegria F. Cosico for Education; Dr. Leonardo D. Exconde for Health Service; Dr. Ida M. Fandialan-Dalmacio for Science and Technology; Jimmy Yu for Humanitarian Services; Neale Paulo M. Banagale for Sports; Faye R. Dichoso for Culture and Pilar G. Raymundo for Culture and Arts. The eventful night coincides with the celebration of the 73rd Founding Anniversary of the city popularly known for its seven lakes. Family members, friends, LGU Heads and some local government officials were there to witness the celebration. More so, staff of OWWA RWO IV-A were present to personally share with DA Torres’ award. We are proud that an important official of OWWA hails from Region IV-A and proud that for the honor bestowed upon him. WE ARE PROUD OF YOU DA PIN!

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Foreign portfolio investments yield Net Inflows in April

Source: http://www.bsp.gov.ph

Registered investments for the month of April surged to US$3.5 billion, 50.3 percent higher than the US$2.3 billion figure for March due to the following: (i) release of positive reports on first-quarter corporate earnings; (ii) large

subscription (US$970 million) in LT (Lucio Tan) Group Inc.’s shares; (iii) BSP’s decision to cut the SDA rates by another 50 basis points (to 2 percent) across all tenors; and (iv) Standard & Poor’s increased growth forecast for the Philippines of 6.5 percent this year and 6.3 percent in 2014. Year-on-year, registered investments more than doubled to US$3.5 billion (or by 137.4 percent) from the US$1.5 billion level recorded in 2012. Investments in April were in PSE-listed securities (US$3.0 billion or 85.9 percent), Peso GS (US$346 million or 9.9 percent) and Peso time deposits (US$149 million or 4.3 percent). The main beneficiaries of investments in PSE-listed securities were: food, beverage and tobacco companies (US$1.1 billion), holding firms (US$918 million), property companies (US$260 million), and banks (US$216 million). Outflows were down to US$2.4 billion from the US$2.7 billion posted in the previous month. Thus, transactions yielded net inflows of US$1.1 billion in contrast to the US$395 million net outflows in March; the figure was also more than thrice the US$333 million net inflows a year ago. Transactions in PSE-listed securities, peso time deposits, and Peso GS netted inflows of US$979 million, US$139 million, and US$13 million, respectively. The United States, the United Kingdom, Singapore, Hong Kong, and Luxembourg (with combined share of 87.8 percent) were the top five (5) investor countries for the month. The United States continued to be the main beneficiary of outflows from investments receiving US$1.7 billion. Registration of inward foreign investments with the Bangko Sentral ng Pilipinas (BSP) is voluntary. It entitles the investor or his representative to buy foreign exchange from authorized agent banks and/or their subsidiary/affiliate foreign exchange corporations for repatriation of capital and remittance of dividends/profits/earnings that accrue on the registered investment.

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Peace, stability, and rules-based settlement of disputes in South China Sea important for EU - supports ASEAN progress on human rights Source: http://www.dfa.gov.ph

17 May 2013 – At a meeting between senior officials of the Association of Southeast Asian Nations (ASEAN) and the European Union (EU) held in Ho Chi Minh, Vietnam on May 14 and 15, the EU reiterated support for the peaceful settlement of disputes in the South China Sea in accordance with international law, including the United Nations Convention on the Law of the Sea (UNCLOS). The EU underscored its interest in peace, maritime security, stability, freedom of navigation, and unimpeded commerce in the South China Sea. The EU also called on concerned parties to clarify their claims on the basis of UNCLOS. Foreign Affairs Undersecretary Evan P. Garcia was lead speaker on maritime security cooperation last May 15 and briefed the EU on the ASEAN Maritime Forum and Expanded ASEAN Maritime Forum which the Philippines hosted in October 2012 as important confidence-building mechanisms in the region. He also discussed ASEAN’s efforts to move forward on a Code of Conduct (COC) with China, and the Philippines’ recourse to UNCLOS arbitration as a means to promote a peaceful and rules-based solution to disputes in the West Philippine Sea. ―The Philippines highly appreciates the EU’s support for the peaceful settlement of disputes in accordance with international law, including UNCLOS,‖ stated Undersecretary Garcia. The EU also expressed strong support for ASEAN’s efforts to promote human rights in the region, particularly the adoption of the ASEAN Human Rights Declaration (AHRD) and the work of the ASEAN Intergovernmental Commission on Human Rights (AICHR). The Philippines proposed deepening ASEAN-EU cooperation on human rights, climate change adaptation, migration management, and combating trafficking in persons, especially women and children. The Philippines was also lead speaker on the East Asian Regional Architecture and presented the work of various ASEAN-led fora for widening dialogue and cooperation in the Asia-Pacific, such as the ASEAN Regional Forum (ARF), the East Asia Summit (EAS) and ASEAN Defense Ministers’ Plus Meeting (ADMM Plus). Undersecretary Garcia welcomed the active involvement of ASEAN’s Dialogue Partners, including the EU, in the evolving regional architecture. He saluted the EU’s accession to the Treaty of Amity and Cooperation (TAC) in Southeast Asia in 2012. ―The EU is a valuable partner of ASEAN and the Philippines,‖ Undersecretary Garcia said. The Philippines and the EU concluded a bilateral Partnership Cooperation Agreement (PCA) last year. In addition, Undersecretary Garcia expressed appreciation for the EU’s support to the establishment of the chemical, biological, radiological and nuclear (CBRN) Center of Excellence in Southeast Asia in Manila which aims to develop capacity-building projects with ASEAN countries on mitigating the risks of these materials.

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Vice President Binay to undertake Working Visit to Germany

Source: http://www.dfa.gov.ph

17 May 2013 - The Philippine Embassy in Berlin announced that Vice President Jejomar Binay will undertake a working visit to Germany from June 04 to 09 to further promote Philippine-German bilateral relations and to sustain the momentum created by the earlier exchange of visits between Secretary Albert del Rosario and German Foreign Minister Guido Westerwelle.

Together with Foreign Minister Westerwelle, the Vice President will be keynote speaker at the official opening of the Asia Pacific Weeks (APW) 2013, one of the most important biennial international business gathering in Berlin. The Vice President will also be the guest of honor at the Architekturforum Aedes where top Filipino architects will launch an exhibit featuring sustainable forms of architecture and cities in the Philippines. Vice President Binay will meet with key German business leaders in events organized by the Economic Council Germany in Berlin and the German Asia Pacific Business Association (OAV) in Hamburg. He will also preside over a dedicated presentation on ―Makati City as Smart City Portal to Business in the Philippines‖ during the Forum on Sustainable Cities. As the Presidential Chief Adviser on Overseas Filipino Workers (OFW), the Vice President will be the keynote speaker during the Maritime Roundtable Conference entitled, ― The Filipino Seafarer,‖ organized by the Germanischer Lloyd, German-Philippine Chamber of Commerce and Industry (GPCCI), and OAV, in cooperation with the Philippine Embassy in Berlin and the German Embassy in Manila. The Vice President will also dialogue with the Filipino communities in Berlin, Hamburg, and Stuttgart. In Stuttgart, he will unveil a marker at the Hotel Marquardt where Dr. Jose Rizal stayed in 1887. Vice President Binay is likewise slated to join the Philippine Independence Day celebration in Frankfurt. Germany is home to more than 20,000 Filipinos, the biggest trading partner of the Philippines in Europe and a potentially rich source of foreign investments.

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PHL Embassy seeks to establish concrete business partnerships with Laos

Source: http://www.dfa.gov.ph

17 May 2013 – The Philippine Embassy in Vientiane led by Ambassador Maria Lumen B. Isleta recently conducted a meeting with key Lao businessmen led by the Chairman of the Lao-Philippines Business Council Mr. Daovone Pachanthavong on May 09 held at the Ambassador’s official residence. Present at the function were Lao businessmen representing sectors such as air transport, mining, hydropower, hospitality business, freight transport and consultancy services. The businessmen, including the Vice President of the Lao National Chamber of Commerce and Industry (LNCCI) expressed interest in visiting the Philippines to explore possible joint ventures and partnerships with Filipino businessmen as part of the Business Council delegation that will meet with its counterparts in Manila in the second half of this year. The Lao businessmen are aware of the superior technical skills and professionalism of the Filipino workers and acknowledged the need for their qualifications and skills in the various industry sectors of Laos. They also expressed interest in the franchising sector by exploring the possibility of bringing in some key Filipino business establishments to Laos. Ambassador Isleta encouraged the businessmen to look beyond their immediate borders and explore partnerships with business entities in the Philippines especially in light of the impending ASEAN Economic Community of 2015.

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Kuwaiti pedophile nabbed at NAIA

Source: http://immigration.gov.ph

Bureau of Immigration (BI) agents arrested a Kuwaiti national who is on the agency’s lookout list of wanted aliens for sexually abusing a Filipina girl. BI Commissioner Ricardo David Jr. said Ismail Hussain Nazar, 52, was arrested last May 13 at the immigration arrival area of the Ninoy Aquino International Airport (NAIA). David said Nazar had just arrived aboard a Kuwaiti Airlines flight when he was intercepted by members of the BI travel control and enforcement unit at the airport. He was later turned over to agents of the National Bureau of Investigation (NBI) who served him an arrest warrant issued by the regional trial court in Angeles City , Pampanga. Records show that David ordered Nazar’s inclusion in the BI lookout list last March 27 at the request of NBI Director Nonnatus Rojas. Rojas informed the BI chief that a criminal case for sexually abusing a minor was filed against the alien before the Angeles City court. It was learned that no less than the International Justice Mission (IJM), a non-government organization that aids victims of child abuse, had tipped the BI and NBI about Nazar’s impending arrival in the country. The IJM said the foreigner was about to meet another victim at at hotel in Clark Field, Angeles City upon his return to the country. Apparently, the Kuwaiti national returned to the Philippines unaware of his pending criminal case and the arrest warrant issued against him by the court in October last year. David said Nazar will remain in the BI’s lookout list to prevent him from fleeing and evade criminal prosecution.

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7 groups qualify to bid for the Mactan-Cebu International Airport Project

Source: http://www.dotc.gov.ph

Manila, Philippines – All seven (7) groups vying for the first airport project to be bid out under President Benigno S. Aquino III’s Public-Private Partnership (PPP) program have been successfully prequalified, the Department of Transportation and Communications (DOTC) disclosed on Thursday (May 16, 2013). The announcement, which was made four (4) days ahead of schedule, signifies that the P 17.5-Billion Mactan-Cebu International Airport (MCIA) Passenger Terminal Building Project will be contested by the following groups: AAA Airport Partners, led by the Ayala and Aboitiz groups and Houston airport operator ADC&HAS; Filinvest-CAI Consortium of the Gotianuns and Singapore’s Changi Airport; First Philippine Airports of the Lopez group and New Zealand’s Infratil Asia Limited airport operator; GMR Infrastructure and Megawide Consortium, which includes India’s Delhi Airport’s operator; MPIC-JGS Airport Consortium, composed of the Pangilinan and Gokongwei companies, as well as France’s Aeroports de Lyon; SM-led Premier Airport Group, which includes Switzerland’s Zurich Airport operators; and San Miguel-Incheon Airport Consortium, led by the SMC conglomerate and the operator of South Korea’s Incheon Airport. ―This is a good number for ensuring optimal competition during the bid itself,‖ said the agency’s spokesperson, Atty. Migs Sagcal. Under the updated timeline for the bidding process, the qualified consortia will now have until August 28, 2013 to submit their bid proposals. ―We are keen to find out which group will make the most advantageous offer to government. As we have said before, the more cooperation we have from the bidders, the sooner the public will enjoy the benefits of our projects,‖ Sagcal added. The MCIA Project will modernize the country’s second-largest aviation hub and the gateway to the Visayas with the construction of a new world-class international passenger terminal building having an 8-million annual passenger capacity. It will also renovate the existing terminal building, which has been operating at over-capacity with 6.7 million passengers going through the 4.5-million passenger capacity structure in 2012.

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Agusan Norte farmers get individual titles

Source: http://www.dar.gov.ph

Farmers shed tears of joy after receiving their individual certificates of land ownership award (CLOAs), following the distribution ceremony recently in the barangay multi-purpose building in Carmen. Fiftyfour farmer beneficiaries were given CLOAs covering 95 hectares of agricultural lands. DAR Regional Director Faisar Mambuay congratulated the recipients while emphasizing the confidence it will bring if the farmer beneficiarie’s name is printed on the title. ―I hope this is just the start, as I intend to come back with more support services for the area,‖ said Mambuay in his message. Mambuay encouraged the beneficiaries to stay united in their cooperative as government has changed tack in the delivery of support services, preferring to course them through farmers’ organizations. Among the grateful recipients were 88-year old Bernadita Regner and her 62-year-old daughter Judith. Both were teary-eyed looking at their long awaited land title. The mother-daughter recipients who are farmers all their lives thanked the DAR and promised to till the land to improve their living condition. Mambuay led the distribution to 54 farmers beneficiaries with Carmen Vice-Mayor Willy Taglocop and DAR Asst. Regional Director Andre Atega.

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PDIC files criminal raps vs. ex-bank President

Source: http://www.pdic.gov.ph

The Philippine Deposit Insurance Corporation (PDIC) filed with the Department of Justice on May 9, 2013 a criminal complaint against the former President of the closed First Country Rural Bank, Inc. (First Country Bank) for conducting business in an unsafe and unsound manner, in violation of the PDIC Charter. The PDIC’s complaint alleged that Hans Paulo G. Bulos, former President of First Country Bank, on various dates from December 2009 to May 2010, caused the creation of unrecorded back-to-back loans aggregating P10 million with third party banks to help boost the bank’s capital level and settled these loans by withdrawing from the deposit accounts of various depositors without their consent. A back-to-back loan transaction, according to the complaint, required the deposit of First Country Bank with a third party bank to be used as security for the loan it transacted with the latter. The proceeds of the back-to-back loan were then used as additional capital in the name of an individual or entity of First Country Bank’s choice. However, since

the funds inflow was treated as capital infusion, the back-to-back loan was not recorded as a loan obligation in the books of First Country Bank. First Country Bank settled and pre-terminated the back-to-back loans by withdrawing from the long-term deposits of its clients without their consent. Investigation showed that respondent Hans Paulo Bulos and his father, Honorio C. Bulos, Jr. directed the former officers of First Country Bank to obtain back-to-back loans from third party banks to address the bank’s capitalization problem. Honorio, who died on February 22, 2011, was de facto owner of First Country Bank. Investigation further showed that Hans Paulo Bulos likewise instructed the non-recording of said transactions in the books of First Country Bank. The Monetary Board ordered the closure of First Country Bank on December 9, 2010 and placed it under PDIC receivership pursuant to Monetary Board Resolution No. 1744.A. As of March 31, 2013, the PDIC had paid P582.3 million in deposit insurance claims for 3,335 accounts of depositors of First Country Bank. The PDIC continues to pursue legal actions against bank officials and personnel who engage in unsafe and unsound banking practices that pose grave threats to the stability of the country’s banking system. Republic Act 3591, as amended, or the PDIC Charter mandates the PDIC to strengthen the mandatory deposit insurance coverage system to generate, preserve and maintain confidence in the stability of the banking system as well as protect it from illegal schemes and machinations. In relation to its functions as co-regulator of banks, deposit insurer and receiver/liquidator of closed banks, the PDIC is authorized to conduct investigations and file necessary cases against erring bank officials and unscrupulous individuals. The quest for justice against erring bank owners, officers and employees is an important undertaking of PDIC to protect the Deposit Insurance Fund, PDIC’s funding source for payment of insured deposits.

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Moral hazard and ‘too big to fail’

Source: http://www.pdic.gov.ph

THE use of the term ―moral hazard‖ has become common in banking and finance circles ever since the default of Lehman Brothers triggered the global credit crisis in September 2008. Lehman Brothers was a global investment bank with a balance sheet and contingent liabilities amounting to several hundred billion dollars. Several counterparties of similar size and scope of operations were being adversely affected by their claims, outstanding contracts with and other exposures to Lehman. Coupled with the loss of confidence in the capital and money markets that was triggered by the Lehman default, there was imminent danger of illiquidity and further defaults that would have caused the global economy to nosedive. Therefore, the US and some European governments had to step in and pour capital into their banking and financial institutions. Even General Motors, a large US car manufacturer, had to avail itself of Washington’s funding support. Since governments had to step in and use taxpayers’ money to bail out large corporations to prevent even greater damage to the economy, the term ―too big to fail‖ gained currency in describing the institutions that had to be bailed out. The issue of moral hazard arose because it was perceived that the stockholders, and even the management, of these failed institutions were saved by government money just because they were systemic, while smaller entities would not normally expect any aid. In other words, they were able to take big risks for bigger profits, and if nothing adverse happened they would reap all the rewards for the risks taken. In this instance, the risks taken resulted in debacles, but governments had to bail them out. Moral hazard had actually been in use in the insurance industry to express concern that the insured would have the tendency to take risks that he or she would otherwise not take without insurance coverage. For this reason, the insurance industry has developed measures such as ―co-pay‖ in the case of medical insurance; and paying for a given amount before the insurance company would pay, in the case of damage to vehicles. In other words, moral hazard is the tendency of one party to take risks with the knowledge that the burden of taking these will be borne by somebody else. It is also quite interesting to note that too big to fail is only the ultimate illustration of the series of moral hazards being blamed for the lingering credit crisis. One could say it starts with the process of originating and selling of mortgage-backed securities. The rapid rise of property prices in several years through 2007 saw agents selling mortgage financing to home buyers at very lax terms. The agents were lax because they knew that they could then sell the home to the banks, so that it would be off their hands and their fees—and their capacity to generate more—would be left intact. Banks purchased these loans without the proper credit scrutiny because they knew that they could sell these loans to investment banks. These banks would then put these loans into a pool, securitize them as mortgage-backed securities and sell these in the capital markets. Though there was moral hazard all around, nothing adverse would have happened if property prices just kept going up. But interest rates started to move up, and property prices stopped rising and started to fall. The banks and investment banks holding mortgages and mortgaged-backed securities (MBS) in their portfolio could no longer sell their MBS without taking losses. This was their situation until Bear Stearns had to be bailed out in early 2008. This was just the tip of the iceberg. Then came the Lehman default and, as the phrase goes, the rest is history. From the moral-hazard perspective, one can now see why the moral hazard of too big to fail institutions is of great concern to global and national financial-oversight bodies. Various measures have been and are being undertaken to address this concern. The Basel 3 standard for capital adequacy and risk measurement for banks is gradually being implemented in a number of countries. Corporate-governance standards are being imposed, particularly on large global institutions that have systemic impacts on the countries in which they operate. Even investors will have to be more knowledgeable, discerning and analytical of the instruments that they invest in and to exercise market discipline over their choice of investments. Overall, the financial markets and the players and regulators will all need to have more tools, skills and diligence in a highly globalized market operating 24/7.

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Thank You and God Bless !!!!