SportsBusinessMirrorC1 | FRIDAY, JANUARY 29, 2016mirror_sports@yahoo.com.phsports@businessmirror.com.phEditor: Jun LomibaoAsst. Editor: Joel Orellana

B J ZUSA Today

 

C AMDEN, New Jersey—On a construction site across the Delaware River from Philadelphia, 76ers General Manager

Sam Hinkie stood in the middle of an unfinished building. It’s the location of the 76ers new $80-million, 120,000-square-feet practice facility and business offices. No courts yet. No locker rooms. Just an empty two-floor structure with beams and stairs that is scheduled to be completed before training camp opens in the fall. Standing on what will be the location of a practice court, Hinkie envisions his ideal scenario. It’s September, players are in town ahead of training camp, working out. They are on the court, in the weight and conditioning room, in the hydrotherapy pools. Perhaps doing yoga or getting a massage. Hinkie wants an environment “in which everybody sees how hard everybody else is working,” he said. “The goal is to encourage you to work at your craft—three hours beats two hours and four hours beats three.” They are creating a place where 76ers players, coaches, front-office staff and other basketball staffers have access to the best in equipment, training, sports science, video and concierge services. “We want it to be the Four Seasons of practice facilities,” Hinkie said. He is not alone. The 76ers are one of several National Basketball Association (NBA) teams that have invested or will invest millions of dollars in practice facilities. In the next three years, at least one-third of NBA teams will have new state-of-the-art practice buildings. n The Chicago Bulls opened their $25-million practice facility in September 2014, and it’s across the street from the United Center. n The Minnesota Timberwolves opened their $25-million downtown Minneapolis building last June. The Toronto Raptors ($20 million-plus) and Brooklyn Nets ($50 million) will open theirs in February. n The Los Angeles Lakers and Indiana Pacers expect to finish new practice facilities in 2017, and the Washington Wizards’ is scheduled for completion in 2018. n The Milwaukee Bucks, Sacramento Kings and Golden State Warriors will have new practice digs when they move into new arenas. n The New Orleans Pelicans opened a new facility in 2013. n The Atlanta Hawks want to break ground on a new practice facility this year. n The Portland Trail Blazers and Detroit Pistons have made recent renovations. To help offset the cost and enhance relationships, teams seek naming rights deals. It’s the Hospital For Special Surgery Training Center in Brooklyn, The Courts at Mayo

Clinic Square in Minneapolis, Advocate Center in Chicago and BioSteel Centre outside of Toronto. The Timberwolves, who have a Mayo Clinic sports medicine center on site, invested in a facility that would help players and help ensure the future of NBA basketball in Minnesota as owner Glen Taylor develops his succession plan, the organization’s chief strategy and development officer Ted Johnson said. “We’re in a business where the difference between good and great can be fractions of a second, millimeters on your vertical,” Johnson said. “When you translate that into the business of our players, those differences between good and great translate into millions of dollars. We felt it was important that we demonstrate our commitment to our players. “If they play for the Minnesota Timberwolves, they will have a home that is second to none, and in that facility, we will be able to develop you to your absolute best potential and give you the greatest opportunity possible to be the best you can be.” These facilities are replacing outdated ones that lack modern necessities and amenities. The Wizards’ practice court inside the Verizon Center has just one court. Basketball staffers’ offices are spread throughout the arena. It’s not designed for optimal performance for athletes or front-office employees. When Wizards President Ernie Grunfeld toured the Bulls’ practice center, he left impressed and wanted to replicate a lot of the Bulls had. Many of these facilities were built with a specific, aesthetic design—open spaces and fewer walls for transparency while fostering a collaborative effort among employees, an entrance that directs players by the offices of the general manager and head coach and by the kitchen and training/health rooms and plenty of glass for natural light and views. The flow of the building—the way players enter and exit—was important. If you need to talk to the coach or GM or a teammate or get food, treatment, exercise, workouts on the floor, you have to pass all those areas at least twice. Hinkie said he often had breakfast with Shane Battier when they were with Houston. It’s supposed to be a welcoming and inviting space 24/7/365.

NBA TEAMS INVEST BIGON PRACTICE FACILITIES

B J P�e Associated Press

MELBOURNE, Australia—Serena Williams is one win away from another Grand Slam milestone after beating Agnieszka Radwanska, 6-0, 6-4, in an

Australian Open semifinal that was almost a noncontest between the players who’ll be Nos. 1 and 3 in the next women’s rankings. If Williams wins Saturday’s final against No. 7-seeded Angelique Kerber, she’ll equal Steffi Graf ’s record of 22 Grand Slam singles title, a record in the Open era, and the second-most in history behind Margaret Court’s 24. Williams is the overwhelming favorite, and not just based on recent form. She continued her perfect streak in Australian Open semifinals, and she has won all six finals she’s contested at Melbourne Park. “I definitely block it out,” Williams replied to a question about equaling Graf’s mark. “I

was one off last year, too! “If I don’t win on Saturday, I’ll still be one off.”

Despite all her success, it is a loss that is inspiring Williams

in this tournament. She was two matches away from a

calendar-year Grand Slam in 2015 when she lost to

Roberta Vinci in the US Open semifinals.

“Physically I’m feeling a lot better,

mentally I needed that break after

the Open,” she

If Serena Williams wins Saturday’s final against No.

7-seeded Angelique Kerber, she’ll equal Steffi Graf’s record

of 22 Grand Slam singles title, a record in the Open era, and the second-most

in history behind Margaret

Court’s 24.

said, but “I didn’t think I would do this well this fast. I’m really excited to be in the final—it just kind of blows my mind right now.” Kerber ended Sydney-born British player Johanna Konta’s surprising run with a 7-5, 6-2 semifinal win to reach her first Grand Slam final. Konta was the first British woman since 1983 to reach a major semifinal. Kerber has one win in six matches against Williams—in 2012. Graf was the last German player to win the women’s title in Australia, in 1994, and Kerber is asking for some advice. “So Steffi, write me please,” she said, laughing with the crowd on Rod Laver Arena. Williams’s win over fourth-seeded Radwanska provided another yet reminder of her dominance in the women’s game. She has won 39 of her last 40 Grand Slam matches across six major tournaments. Williams hasn’t played a left-hander so far this tournament and said that, combined with Kerber’s win over two-time champion Victoria Azarenka in the quarterfinals, were making her wary. “She took out a really tough opponent in Victoria. You can’t underestimate Kerber,” Williams said. “She’s beaten me before, too, and pretty good. I know that she brings a lot to the game.” The first set of the semifinals was over in 20 minutes, with Williams hitting 18 winners and Radwanska, in her fifth major semifinal, registering one—in the fourth game. The second set was closer, with Radwanska holding serve three times and breaking Serena’s powerful serve once. But the 34-year-old Williams lifted again to finish it off, winning the last eight points and closing with three aces and a big forehand winner. Williams remains unbeaten in nine matches against Radwanska, whom she beat in the 2012 Wimbledon final. “She goes on court and she just wants to kill it. Going like full power for everything,” Radwanska said. “So I don’t think anyone can really play on that kind of level at all. She started unbelievable, with such a power and speed. I was just standing there kind of watching her playing.” With the roof on Rod Laver Arena closed because of a thunderstorm closing in, the most obvious noise in the first set was the chirping of trapped birds who’d taken shelter in the stadium. The chirping intensified as Williams served in the sixth game of the second set, and she looked up angrily after her off-balance forehand from the baseline conceding her only service break of the match. Williams finished with eight aces—all in the second set—and has lost only 26 games in six rounds in a dominating run that included a 6-4, 6-1 win over No. 5 Maria Sharapova in the quarterfinals, a rematch of the 2015 final.

SERENA WILLIAMSis the overwhelming

favorite—against No. 7-seeded Angelique Kerber

(above)—and not just based on recent form. AP

SERENA GOESFOR RECORD

the Senate wants to include the pension of veterans and retired military and uniformed personnel in the coverage of the bill subject to availability of funds.

But Majority Leader and Liberal Party Rep. Neptali M. Gonzales II of Mandaluyong said the House of Representatives will not change its position  suspending the in-dexation of pensions of retired uniformed personnel.

The budget for the coverage of military and police retirees is not included in the P57.9-billion appropriation for the original SSL endorsed by the Department of Budget and Management underthe General Appropriations Act (GAA) of 2016. “They are not members of the GSIS/SSS [Government Service Insurance System/Social Security

If we agree on it, we would have to cut the budget for social services,

health care, infrastructure.”–Gonzales

B VG C

CLARK Development Corp. (CDC) has awarded the contract for the development, operation and management of the vast Mi-mosa Leisure Estate in Clark, Pampanga, to the Gotianun-led

Filinvest Developemnt Corp. (FDC).The company said on Thursday the agency gave the notice of award

for the deal covering 201.64 hectares of land through a 50-year lease agreement on January 27. “We are very bullish about the Clark area and the prospects of Clark as an international airport hub, given the growth in this tourism corri-dor and the congestion experienced in Metro Manila airports,” FDC and Filinvest Land Inc. (FLI) President Josephine Gotianun Yap said. The company and its property-development unit will jointly develop the property. The Filinvest group was the lone bidder for the contract. On January 15 it submitted a bid of P800 million, the minimum acceptable bid. The Mimosa Estate is inside the Clark Freeport Zone, some 100 kilo-meters north of Metro Manila. Currently the property includes an oper-ating hotel with 303 rooms and 34 villas under the Holiday Inn brand, as well as a 36-hole golf course. The estate will be developed through a joint venture, with the Go-tianun group holding 95 percent, and CDC the remaining 5 percent. The 50-year lease is renewable for another 25 years.

“The Filinvest group brings its expertise in large-scale real-estate development to the table,” it said.

Its previous developments include the 244-hectare Filinvest City in Alabang, Muntinlupa, and the 70-hectare City di Mare at the South Road Properties in Cebu City, both joint ventures with the government. “Together, FDC and FLI bring more than five decades of experience to manage and develop the former Mimosa property,” Yap said. The company will soon begin mapping out its development plan for the estate.

But local economists said Filipi-nos hardly benefited from this high economic growth being touted by the Aquino administration.

Outgoing Economic Planning Secretary Arsenio M. Balisacan said the 6.2-percent average growth in six years was “remarkable” as this was supported by concrete invest-ments that created jobs.

S “V ,” A

PESO EXCHANGE RATES n US 47.8880 n JAPAN 0.4038 n UK 68.1686 n HK 6.1447 n CHINA 7.2798 n SINGAPORE 33.4343 n AUSTRALIA 33.8144 n EU 52.1740 n SAUDI ARABIA 12.7701 Source: BSP (28 January 2016 )

A broader look at today’s businessBusinessMirrorBusinessMirror

www.businessmirror.com.ph n Friday, January 29, 2016 Vol. 11 No. 113 P. | | 7 DAYS A WEEK

MEDIA PARTNER OF THE YEAR2015 ENVIRONMENTAL

LEADERSHIP AWARD

UNITED NATIONSMEDIA AWARD 2008

S “F,” A

C A

C A

SPECIFICATIONS

■ Vehicle 2015 Mitsubishi ASX GSR ■ Type Compact Crossover■ Engine 2.0-Liter 4-In Line 16-Valve DOHC MIVEC Gasoline fed (4B11)■ Maximum power 148 Hp at 6,000 rpm■ Maximum torque 197 N-m at 4,200 rpm■ Transmission INVECS-III CVT automatic with Six-Speed Sports Mode

THUMBS DOWN

■ Manually adjusted front seats■ Limited vision via rearview mirror

DIMENSIONS

■ Overall length 4,295 mm■ Overall Width 1,770 mm■ Overall Height 1,625 mm■ Wheelbase 2,670 mm■ Curb weight 1,350 kg■ Tire size 215 / 60 R17■ Price as tested P1.248 million

THE ELEMENT OF SURPRISES R S. P

MANY cars’ abbreviated names, when translated, determine its function

or build. Just like the Mitsubishi ASX, its name means “Active Sports Crossover,” which clearly represents the manufacturer’s entry to the popular segment. Originally, its predecessors were classifi ed as small multipurpose vehicles identifi ed as “RVR,” sold only in Japan and Canada. e birth of the ASX in 2010—Outlander Sport in the United States and Indonesia—paved the way for a new class for the European, Latin America, Australia and several Asian countries including the Philippines.

MotoringBusinessMirrorMotoringBusinessMirrorMotoringHenry Ford AwardsBest Motoring SectionBest Motoring Section2007, 2008, 2009, 20102007, 2008, 2009, 20102011 Hall of Fame2011 Hall of Fame2011 Hall of Fame Motoring

Editor: Tet Andolong E1 Friday, January 29, 2016

� is writer was able to test the top-of-the-line 2015 Mitsubishi ASX in radiant Sonic Blue color. What supposed to be just another compact crossover experience turned out to be a persuasive encounter. At a glance, the front mask resembles the sporty and aggressive look of the Lancer, which belongs to the same Mit-subishi GS Platform. � e separation of the black mesh-type bumper-integrat-ed with chrome-accent grille from the superwide-range HID headlamps with silver extension created a sharp-looking fascia along with the daytime running lights furnished fog lamps. Silhou-ettes on the hood match the ones on the � anks and accentuated further by the matte-� nish plastic trims surrounding the lower panels.

New designed two-toned 17-inch alloy wheels with 215 / 60 R17 96H Yokohama

A-Spec tires complement the athletic stance.� e cockpit layout is ergonomic and

straightforward, allowing any driver to easily � nd major controls. Enhanced and telescopic steering wheel now has both the audio and cruise control functions aside from the paddle shifters. In between the well-illuminated analog gauges is the information screen that displays vital statistics and noti� cations. Right in the center panel is not your typical two-din touch-operated head unit. Aside from the Bluetooth connectivity and reverse view, it is equipped with a real-time and accu-rate GPS navigation system that not only shows where your current location, but more important, emits voice prompts on any road warnings ahead.

Interestingly, the same unit is where you can access the integrated tire pressure monitoring system, or TPMS, that exhibited

precise � gures. Now it is easy to determine when it is time to tap up your rubbers.

� e GSR variant’s leather-wrapped seats and expansive legroom are not the only things that bring cabin comfort but, also, there is a new and cozy panoramic glass roof with soothing ambient LED glows. Although it is � xed, the ceiling cover layer is motorized and easy to oper-ate for the passengers to enjoy the view of clear skies while moving.

Wait until you get to drive this stun-ning crossover and you will � nd yourself amazed with the dynamics. For a natu-rally aspirated powertrain, the low-end torque was more than just su� cient de-livering swift speed increments. What made it superb and fascinating at the same time is the coupled INVECS-III CVT, six-speed automatic gearbox with sports mode. Remarkably, gear shifting

was virtually unnoticeable during op-eration and it was well in sync with the rpm range.

On the other hand, reaching the mid-range is where the fun starts, as the motor began to produce signi� cant force. With the available manual method, optimum power band can be achieved and high speed can be grasped in no time. After all, that 2.0-liter 4B11 engine series is the same substance that propels the high per-forming Lancer Evolution X - with forced induction system, reinforced internal components and tuning so, there is no question as to where the ASX’s delivery is coming from. � e handling was also equally impressive with very minimum twist on bended roads and together with the responsive electronic-type with anti-back lash system steering that directs exactly where you turn, this scribe was completely in control of the vehicle. Not to mention the smooth ride on levelled roads with least tire rebounds created on rough pavements.

As for safety features, the front air bags are actually dual staged along with other elements, such as head protection interior and child tether anchor, among others. Stopping power also demonstrated reliable might in deceleration, thanks to the anti-lock braking system that is supplemented with electronic brake distribution, brake assist system, and brake override system.

� e 2015 Mitsubishi ASX GSR is a versatile form of transport for both city and out of town trips. It takes one serious driver to understand the es-sentials that goes with it, making this compact crossover de� nitely a strong contender in the segment.

2015 MITSUBISHI ASX GSR

THUMBS UP

■ Responsive 4B11 naturally aspirated motor■ Engine low-end torque delivery■ INVECS III CVT transmission seamless gear shifting■ Panoramic roof glass with ambient LED lights■ Wide range emitting HID headlamps

EQUALLY STUNNING REAR Roof mounted spoiler with LED lamp complements well with the curvatures and black trim underneath.

DNA OF A HIGH-PERFORMANCE CAR 2.0-liter 4B11 engine series is the same substance that propels the high-performing Lancer Evolution X—with forced induction system, reinforced internal components and tuning.

CRITICAL TO SAFETY The integrated tire pressure monitoring system, or TPMS, that exhibits precise tire pressure � gures. Now it is easy to determine when it is time to tap up your rubbers.

BEYOND COZYNESS With the new and cozy panoramic glass roof with soothing ambient LED glows, passengers will enjoy the view of clear skies while moving.

ATTRACTIVE AND SPORTY The separation of the black mesh-type ATTRACTIVE AND SPORTY The separation of the black mesh-type ATTRACTIVE AND SPORTYbumper, integrated with chrome-accent grille from the superwide-range HID headlamps with silver extension, created a sharp-looking fascia along with the daytime running lights furnished fog lamps.

MOTORING E1

SPORTS C1

RYAN REYNOLDS

SERENA GOESFOR RECORD

THE ELEMENT OF SURPRISE

Private firms hope for bigger role in Vietnam economy 

Growth during Aquino’s term fastest in 40 years–Balisacan

FILINVEST BAGS MIMOSADEVELOPMENT CONTRACT

LIFE D1

Proposed pay hike for state workersgasping for air with 3 sessions to go

B C U. O C N. P

IN terms of economic perfor-mance, President Aquino did better than his five predecessors

as average GDP growth between 2010 and 2015 posted a 40-year high of 6.2 percent, the National Economic and Development Au-thority (Neda) said on Thursday.

A FTER a decade of uneven progress, foreign and local businesses hope the reshuf-

fled leadership of Vietnam’s ruling Communist Party will double down on modernizing an economy domi-nated by state companies.

Once a much-hyped rising star among developing Asian nations, foreign perceptions of Vietnam have

swung between fears it was on the verge of a financial collapse to seeing it as a rival to China as the world’s factory floor.

Problems, such as episodes of high inflation, festering bad debts at state banks and riots in 2014 against Chinese-owned factories, have un-derlined the risks of doing business. At the same time, Vietnam’s young

work force, high if volatile growth rates and low wages have attracted a steady stream of long-term foreign in-vestment involving companies from Intel to Samsung.  New  free-trade agreements have also sent a positive signal to investors. A five-yearly party congress this week rearranged the deck of top leaders. Among the changes, Prime

Minister Nguyen Tan Dung, who has pushed economic liberalization, was unsuccessful in maneuvering to be-come party general secretary, which is defacto the No. 1 leadership posi-tion, and will leave the inner circle. The old guard incumbent, Nguyen Phu Trong, was reelected as general secretary.

THIS January 28 photo shows National Statistician Lisa Grace S. Bersales (from left), Outgoing Economic Planning Secretary Arsenio M. Balisacan and National Economic and Development Authority Deputy Director General Emmanuel F. Esguerra during a news briefing on the performance of the Philippine economy in the fourth quarter of 2015. Balisacan said during the briefing in Quezon City that the economy grew at its fastest in the last three months of last year. NONOY LACZA

INSIDE

B J M N. C

THE c h a nce of   t he pro -posed  Salary Standardiza-tion Law (SSL) of becoming

a law is getting dimmer, with the provision on the indexation of pen-sions of retired uniformed person-nel remaining as the lone stumbling block to its passage. Delegates of the Senate and House of Representatives to the bicameral conference committee have indi-cated that they will not yield their respective positions on the bill with only three session days left in the 16th Congress.

Sen. Antonio F. Trillanes IV said

6.2%Average GDP growth during President Aquino’s term

news@businessmirror.com.phBusinessMirrorFriday, January 29, 2016A2

BMReportsProposed pay hike for state workersgasping for air with 3 sessions to go

Earlier this month, the FLI signed a joint ven-ture agreement with the Bases Conversion and Development Authority for a 288-hectare section of Clark Green City, after earlier winning the bid for the development rights of the project.

“We are excited about this addition to our

footprint in Northern Luzon. Our interest in this area is a reflection of our confidence in the growth prospects of the Clark Special Economic Zone,” Yap said. The Filinvest group has over 1,300 rooms in its portfolio, and 1,027 rooms in the planning stage in various areas around the country.

Despite the apparent strengthening of a conservative faction, Vietnam is not expected to undo closer ties with the US and incremental adoption of free market economic policies.

Tran Minh Thang, who employs 50 work-ers making cheap porcelain pots, cups and dishes in historic Bat Trang outside Hanoi, said that most of all he wants the govern-ment to provide stability because “we can-not do anything if there’s no stability.” Be-yond that, he hopes the new leadership will “speed up economic reforms.” Because, he said, “once the country develops, my busi-ness will also benefit.”

Standing in the way of development is Vietnam’s biggest unresolved eco-nomic challenge. Much of the economy remains dominated by inefficient state-owned companies even after a series of market-style reforms that began in the

1980s. Like neighboring China, Vietnam’s authoritarian leaders are reluctant to re-linquish control over commerce, fearing that doing so could ultimately imperil their political stranglehold.

Slowly, however, the party is being squeezed into a corner. Seeking to avoid economic domination by China, Vietnam has joined a US-led trade agreement involv-ing 12 countries that has provisions, which, over time, will require less government involvement in the domestic economy. Ha-noi has also signed trade agreements with the European Union, South Korea and its Southeast Asian neighbors.

Much of the recent foreign investment into Vietnam was a result of international companies realizing they would benefit by basing factories in an Asian country that has low tariff access to major western markets. Garment exports are expected

to be one of the biggest beneficiaries of Vietnam’s inclusion in the US-led Trans Pacific Partnership, which is awaiting rat-ification by its signatory nations. There are also expectations that Vietnam’s membership will result in it becoming a more predictable and fairer place for foreign businesses. Pham Chi Lan, a former economic ad-viser to Vietnam’s government, said the trade agreements are a huge opportunity for Vietnam’s development but one that could be wasted if local companies don’t become more productive and most of the benefits go to foreigners.

Vietnam’s leaders “must realize these problems to have the will to carry out real reforms otherwise the country will be put into difficult position as it deepens inter-national integration,” she said. The government forecasts the econo-

my to grow between 6.5 percent and 7 percent a year for the next five years. It expanded 6.7 percent last year.

Many small local businesses hope for an environment where private en-trepreneurs are not crowded out by state companies and have more oppor-tunities within Vietnam and abroad.

Luong Van Huy’s family business has been producing ceramics such as artistic vases and lamp stands for four generations. It is one of about 1,000 family businesses in Bat Trang, home to a ceramic and pottery indus-try for some 600 years.

After initial success from ven-turing into exporting in the 1990s, Huy’s business struggled in the aftermath of the 2009 global re-cession. Overseas sales have fallen from a peak of $1 million to about $300,000 a year.

“I can feel clearly the impact of the slowdown in the world’s economy,” he said at his showroom. “In the past, I sometimes could not meet demand from foreign clients, but now export revenues have fallen some 80 percent and I have to focus more on the do-mestic markets.”

Huy, who employs eight workers at his small workshop, said he wants the new leaders to adopt economic policies that “open up more markets for businesses.”

Adam Sitkoff, executive director of the American Chamber of Com-merce in Hanoi, said he doesn’t ex-pect any backsliding on the economic changes that occurred in the past three decades.

But what’s needed now, he said, is more urgency in attending to prob-lems such as bad debts at banks and ensuring the government is more of a referee in the economy than a player.

“Hopefully we’ll see a faster pace of reform, not a slower pace of reform, because ultimately that’s what going to be what helps the 93 million people here get better choice and higher qual-ity and lower prices and more oppor-tunity for their children.” AP

Filinvest… C

Vietnam economy… C

System] so their pension is a recurring expense of the budget, sourced from tax-payers money.  Assuming that we give in to the proposal, it would be P19 bil-lion, then P26 billion, then P30 billion because this is in perpetuity,” Gonzales said after their first bicam meeting on Wednesday. “[If we agree on it] we would have to cut the budget for social services, health care, infrastructure. There will be no problem if there is a source of fund. But the DBM, itself, said there’s no budget for it,” Gon-zales added.  According to the lawmaker, there is no schedule yet for the next bicameral confer-ence committee meeting. Both chambers of Congress have three days left to reconcile the conflicting provi-sions of the so-called SSL 4, but Gonzales said they have not set a schedule yet for the next bicam. Based on the legislative calen-dar, Congress will adjourn on February 5 as

part of its preparation for the national and local elections in May. “The government wants to maintain a 2-percent deficit [out] of GDP. The Senate should find a source of fund if they want to push it,” Gonzales said. Earlier, Speaker Feliciano Belmonte Jr. said, “Remember that the basic SSL is in-cluded in the GAA 2016. If the Senate will add to it, that will be another law.”t “[However] SSL is something the sena-tors, and we, know we have to pass. In the interest of employees, we are determined that the bill passes both Houses,” the Speaker said. The House of Representatives ap-proved on third and final reading on December 9, 2015, House Bill 6268 prin-cipally authored by the Speaker, which modifies the compensation and position classification system of civilian govern-ment personnel and the base-pay sched-ule of military and uniformed personnel in the government to be implemented

in four tranches, starting January 1, 2016. The Senate approved its own ver-sion, Senate Bill 2671, on third and final reading on January 18.  Earlier Budget Secretary Florencio B. Abad said the  SSL will be effected through a combination of a salary increase, a 14th- month pay and an enhanced performance-based bonus to be implemented over a four-year period,  from January 2016 to January 2019. Abad explained the SSL 4 is based on Joint Resolution 4 enacted by Congress in 2009, mandating the review of the compensation and position classification system after three years from the last year of the adjustment to determine the competitiveness of government pay in re-lation to the private sector and the com-pensation strategy to bring government pay closer to market rate. Abad said the last tranche of the previous salary increase was completed last July.

C A

Rice self-sufficiency tack was a mistake–NedaB C U. O M G P

THE Aquino administration committed a mistake in gun-ning for rice self-sufficiency

as it proved to be too costly, the Na-tional Economic and Development Authority (Neda) said on Thursday.

Outgoing Economic Planning Sec-retary Arsenio M. Balisacan said the government’s self-sufficiency policy even contributed to the increase in poverty incidence in 2014.

“We might have to revisit our self-sufficiency paradigm. As we have seen in some cases, it has been very costly. For example, in the case of rice in 2013-2014, when domestic prices shot up as global prices were declin-ing, our poverty incidence rose rather than declined even as the economy grew faster,” Balisacan said.

Studies including those made by Philippine Institute for Develop-ment Studies research fellow Roeh-lano Briones said the government’s resources were largely focused on rice, a water-loving crop and the country’s food staple.

2012; high-value crops, P1.63 bil-lion; coconut, P2.08 billion; live-stock, P2.72 billion; and P3.3 bil-lion for fisheries.

“If we let the numbers for the past six years speak for themselves, the agricultural sector persists to be the biggest road block in our goal for at-taining a higher and more inclusive growth,” said Balisacan, who is also Neda director general.

“There is an urgent need to re-think the development strategy for this sector, especially in view of El Niño and other natural disasters that could hit the country,” he added.

Former Budget Secretary Ben-jamin Diokno said the anemic per-formance of the agriculture sector slowed GDP growth in 2015. He said agriculture “strikes at the heart of the inclusiveness” of the country’s economic performance last year.

Agriculture contracted by 0.3 per-cent in the fourth quarter of 2015, from 4.2 percent in the same period a year ago. He added that the six years of the Aquino administration also did not do much to improve agriculture growth. Diokno said the current ad-ministration neglected agriculture.

He said that from 2011 to 2015, agriculture only grew by 1.6 percent, significantly lower than the coun-try’s population growth rate.

“President Aquino ranked sec-

BusinessMirrorwww.businessmirror.com.ph Friday, January 29, 2016 A3

BMReports

0.3%Growth rate posted by agri-culture sector in Q4 2015

We have requested

for additional budget but it was not granted. So don’t expect higher rice production.”

—Alcala

Briones said the government’s rice spending reached P37.44 billion in 2012, almost half of the govern-ment’s total agriculture spending for that year. Data showed the govern-ment spent a total of P62.64 billion for agriculture-related programs and projects. This was significantly higher than the P14.38 billion spent in 2005.

Despite t his, gover nment spending for other crops like corn amounted to only P951 million in

ond to the last among past five presidents [in terms of agriculture performance]. Agriculture grew, on average, by 6.5 percent during Es-trada’s truncated term; 2.8 percent under Arroyo’s; 1.9 percent under Corazon Aquino’s; and 0.8 percent during Ramos’s term,” Diokno said.

The Aquino administration rolled out the Food Staples Sufficiency Pro-gram (FSSP) to make the country self-sufficient in rice. Rice provides 45 percent of Filipino’s calorie intake and its production is considered the main source of livelihood in rural areas.

The average rice-consumption spending accounts for 20 percent of a household’s budget. This is higher

at 30 percent for the bottom 30 per-cent of Filipino families.

The government also said more than 2 million households are en-gaged in rice farming, millions more are farm laborers, and thousands are into rice trading.

Despite the difficulties posed by El Niño to the rice sector, the De-partment of Agriculture (DA) said on Thursday it is targeting a higher palay output of 19 million metric tons (MMT) for 2016.

This figure is 4.68 percent higher than the country’s total palay pro-duction of 18.15 MMT for the whole year of 2015.

Agriculture Secretary Proceso J. Alcala told reporters in an interview the department’s total palay output target is still short of the volume needed to achieve 100-percent rice self-sufficiency in the country. He said this is due to budget constraints.

“For us to meet rice self-suffi-ciency, we need to produce about 20 MMT of palay. But the budget we requested to meet the 20 MMT was not approved,” Alcala said.

He said the DA has submitted a higher budget for 2016 so it can meet its 100-percent self-sufficiency tar-get this year. He, however, did not provide the specific figure.

Alcala said the additional amount would have been used to pro-

vide more seeds to farmers and to implement more interventions to help them.

“We have requested for additional budget but it was not granted. So don’t expect higher rice production,” Alcala said.

The DA and seven of its attached agencies received a total of P48.45 billion in budget for 2016. But aside from the general appropriations, spe-cial provisions were also given to DA programs and projects.

The national programs for rice, corn, high-value crops, organic agri-culture and livestock, received a total provision of P14.04 billion, accord-ing to data from the Department of Budget and Management.

Data from the Philippine Statis-tics Authority (PSA) showed that the country’s total palay production for 2015 declined by 4.31 percent to 18.15 MMT from 18.97 MMT re-corded in 2014.

The PSA said the country’s palay sector, along with the corn industry, suffered the brunt of El Niño and the strong typhoons which hit the country last year.

For the first half of 2016, the PSA projected that the country’s palay production would reach 8.20 MMT, 1.48 percent lower than the 8.32 MMT recorded in the same period last year.

BusinessMirror www.businessmirror.com.ph Friday, January 29, 2016A4

BMReports

B VG C

THE Securities and Exchange Commission (SEC) has is-sued cease and desist orders

against three companies, including GoldXtreme Trading Co., for sus-pected pyramiding scam activities.

The SEC said aside from Gold-Xtreme, it issued the same cease and desist order against Success200 International Marketing Corp. and Grantige Automobile Inc.

GoldXtreme is a partnership reg-istered with the SEC on March 6, 2015, organized by Gavin Tan and Romell Tan, and has its principal office in Caloocan City.

Its primary purpose is to engage in the business of wholesale and re-tail sales of such products as gold jewelry and other products such as fashion accessories, cell phone loads, prepaid cards, scents and other related merchandise.

The SEC’s Enforcement and In-vestor Protection Department has been receiving e-mails from the public inquiring on the legality of the activities of GoldXtreme.

“In one of the e-mails, the send-er inquired if GoldXtreme has ob-tained a secondary license from the commission to solicit investments from the public. As reported, Gold-Xtreme invites people to join and in-vest in the company,” the SEC said.

Investors are required to pay P5,000 as initial investment and they will be placed in a table of or-ders. The table of orders, comprise of 15 slots, will be filled up by new recruits. When the table of orders is filled up, the investors will exit and they will earn P25,000 with 10-per-cent withholding tax deducted by

the company. All investors are ad-vised to recruit in order to fill up the table of orders and they will be given P500 as referral bonus.

Meanwhile, Success200 was in-corporated on May 12, 2015, with its primary purpose to engage in the business of manufacture, distribu-tion and marketing of various prod-ucts from pharmaceutical grade me-dicinal products, food supplements, health and wellness products, ready-to-wear clothing apparels, computer and computer peripherals, gadgets and equipment.

The incorporators and direc-tors of Success200 include Alberto Monzuela, who is also its treasurer.

The SEC again received e-mails, which stated that the company promises to “turn an investment of P1,800 to P10,000.” Its investiga-tion involved looking at a Facebook page of one of the company’s sales agents. Monzuela actually intro-duced himself to the SEC’s investi-gating team and explained that for P1,800 a member can get P1,500 worth of products such as tea, in-stant coffee and chocolate mix.

A member may earn P10,000 once such member completes one board, which consists of 15 mem-bers. To complete one board, each member in the board must refer at least two people. Such referrals must then refer two additional peo-ple, which is called a “split matrix.”

After the completion of one board, such member will “exit” or get a pay-out in the amount of P10,000. He will then transfer to second board by paying the amount of P1,800, and will “exit” or get a pay-out of P10,000 and the process goes on and on as the member moves up the ladder.

An investment of P1,800 is con-sidered as the “low-end” level, and that a member may invest in the “high-end” level for the amount of P36,000. Such investment in the “high-end” level will allow the member to “exit” or get a pay-out in the amount of P200,000.

The SEC said Success200 has not been issued a certificate of regis-tration or licenses as broker and dealer in securities or government securities, investment adviser of an investment company, invest-ment house and transfer agent, among others.

Meanwhile, Grantige Automo-bile was incorporated on April 24, 2015, with the primary purpose of operating in the business of driving school and other related services that may be deemed incidental to the purpose. Its paid up capital is P312,500.

The SEC said it received an anon-ymous call, which claims the com-pany might be engaged in “an ille-gal form of multi-level marketing.”

The SEC said it again looked at the Facebook page of the company, and found that it promised a payout of P12,000 after the payment of a fixed “entry fee” of P1, 200, when four other persons are recruited.

Another department of the SEC said that Grantige Automobile is not a registered issuer of securities and is not licensed to offer or sell securities to the public.

“During the ocular inspection, the investigating team noticed a tarpaulin featuring “different sports cars and luxury cars with words advertising earning oppor-tunity outside the building of the office of GTA,” the SEC said.

SEC closes 3 firms ‘engaged’ in pyramiding scam

Deputy Speaker and Liberal Party Rep. Pangalian M. Balindong of La-nao del Sur said in a privilege speech late Wednesday: “With heavy heart and a disturbing sense of foreboding, I close the book of hope for the pas-sage of the [BLBar].”

“I hate to admit that this House of Representatives has collectively failed the Bangsamoro people. Fif-ty-one public hearings, 200 hours of committee level debates and eight months of consultations are all put to waste—thrown into the abyss of un-certainty and darkness,” Balindong said. “This is the lowest and saddest day of my legislative work.”

Balindong delivered his speech before the leadership of the lower chamber admitted on Thursday the measure can no longer be passed by the 16th Congress.

Balindong, Speaker Feliciano Belmonte Jr.,  and House National Defense and Security Chairman and Liberal Party Rep. Rodolfo Biazon of Muntinlupa blamed lack of time as reason.

Based on the legislative calendar, Congress will adjourn on February 5 as part of its preparation for the national and local elections in May.

Belmonte said,  “Balindong has other angles, but no question that it [BLBar] won’t become a law even if we pass our version.”

“The Senate has not been acting on it,” Belmonte added. 

Balindong said the lawmak-ers’  failure to pass the measure is a “perfect recipe for radicalization” in Mindanao.

“As a  Moro elder who has lived through decades of war and conflict, I have never been afraid of the future of my people than I  am today,” he

said, adding the inability of the Lower House to pass the BLBar “is a disaster that extremists can easily exploit.”

Balindong warned that scenario should not be “simply dismissed it as a form of threat.”

“We take away the hopes of mil-lions of people in the Bangsamoro. By the sheer tyranny of the majority, we have foreclosed all possible peaceful, legal and constitutional avenues for peace,” he added.

Balindong said, “no matter how lawmakers debate on the justness of  the Bangsamoro cause, stand to legal reasoning and shout for the constitutionally guaranteed right to genuine political autonomy,” the reality is that there are only 10 Moro legislators against the more than 280 members of this house.”

The BLBar, which aims to create the new Bangsamoro juridical entity replacing the Autonomous Region in Muslim Mindanao, is currently under plenary deliberations at the House of Representatives. Originally titled Bangsamoro basic law (BBL), it is now referred to as the BLBar.

“We are only 10 lone voices in the wilderness of bias, prejudice and hatred.”

He told lawmakers he doesn’t know what he should “tell my people when I go back to my homeland?”

“How can I explain to them why we failed to pass the BBL? How can I convince my people to remain stead-fast to peace without the BBL?”

Congress has been under in-tense pressure to approve the BLBar following the killing of 44 members of Philippine National Police-Special Action Force (PNP-SAF) in January last year in Ma-masapano, Maguindanao.

The slain PNP-SAF were involved in a police operation to serve warrants of arrest on Basit Usman and Zulkifli Bin Hir, alias “Marwan,” both with alleged links to the terrorist group

Jemaah Islamiyah.  “With one tragic and unexpected event not of our own making—the Mamasapano ‘mis-en-counter’ has labeled us again as ter-rorists, extremists, enemies, traitors

and murderers,” Balindong said.  “I have personally witnessed and heard the bashing and lashing against the Moros not only over the media but right in this hall of Congress.”  

Balindong said the incident in Mamasapano led “many of those who supported the BLBar  [to] wittingly or unwittingly punished the Moro people by denying us of the required votes and even the quorum to delib-erate on the [BLBar].”

Aside from the Mamasapano in-cident’s impact, lawmakers are also opposing an opt-in provision in the BLBar that allows neighboring ter-ritories to propose their inclusion in the proposed autonomous region through a petition of at least 10 per-cent of the residents and approval by a majority of qualified voters in the city

or province in a separate plebiscite.For his part, Biazon said the ad-

ministration should not force the passage of the “effectively dead” BL-Bar this 16th Congress. 

“It may pass the House of Rep-resentative, but will it pass the Sen-ate  within three days? Will it be signed by the President into law? So BBL is dead. That’s the reason I think the next president, whoever he or she may be, will have to answer to the question: What will you do when you get elected to be president?” he said.

Biazon believes the next president must revive the BLBar.

“If it is going to be revived, he or she must learn from the experience of this administration on the issue of constitutionality and acceptability by all sectors.” Jovee Marie N. dela Cruz

I hate to admit that this House of Representatives has collectively

failed the Bangsamoro people. Fifty-one public hearings, 200 hours of committee level debates and eight months of consultations are all put to waste—thrown into the abyss of uncertainty and darkness.”–Balindong

Congress gives up on Bangsamoro lawTHE fat lady has sung for the

proposed Basic Law on the Bangsamoro Autonomous Re-

gion (BLBar) as it’s now considered dead at the House of Representatives. 

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“Growth in the past six years was not artificial, not like in the 1970s when the government relied on unsustainable borrowings and short-lived portfolio capital,” Balisacan told reporters in a news briefing held in Quezon City on Thursday.

Based on the BUSINESSMIRROR’s computation using data from the Phil-ippine Statistics Authority (PSA), GDP growth during the term of former President Corazon C. Aquino averaged 3.85 percent; Fidel V. Ramos, 3.75 percent; Joseph E. Estrada, 2.3 percent; and Gloria Macapagal-Arroyo, 4.45 percent. The PSA has no data on GDP growth during the term of former President Ferdinand E. Marcos.

The government was upbeat even as the 2015 GDP growth of 5.8 percent fell short of its 6-percent to 7-percent target. Growth last year was the slowest since 2011, when the economy managed to grow by only 3.7 percent.

Government underspending in the first half of 2015, weak export earn-ings, and the lackluster performance of the agriculture sector dampened the country’s GDP growth in 2015.

Businessmen belonging to the Philippine Chamber of Commerce and Industry (PCCI) said the traffic dilemma and the lingering port conges-tion problem have contributed to the failure of the government to hit its growth target in 2015.

Last year Services was the main driver of the economy as it grew 6.7 percent. The growth of Industry and the entire Agriculture sector slowed to 6 percent and 0.2 percent, respectively.

Compared to other major developing economies in Asia, Presidential Spokesman Edwin Lacierda said the Philippines ranked fourth in terms of GDP growth for 2015, behind India, China and Vietnam.

The government and local businessmen, however, expect the country’s economy to perform better this year on the back of higher consumption spending due to the presidential elections and the recovery of exports.

To ensure that the Philippines would remain on a high-growth trajectory, Balisacan said the next two to three administrations should diversify the country’s export products and strengthen the “socioeco-nomic resiliency” of individuals and communities.

“If we want to reach the highest potential of our economy, we should be keen in fortifying our economic achievements, and strengthening and institutionalizing the reforms this administration laid out for the years ahead,” said Balisacan, who is also Neda director general.

‘Disconnect’ECONOMISTS said, however, that the country’s growth during Aquino’s term was hardly felt by the poor.

“Poor Filipinos hardly benefited from the 6.2-percent average growth due to the quality of growth and persisting sharp inequal-ity across social sectors,” former Asian Development Bank lead economist Ernesto Pernia told the BUSINESSMIRROR.

For his part, University of Asia and the Pacific School of Economics Dean Cid Terosa said the poor are “disconnected” from a high GDP growth because of poor social services and problems that plague health, educa-tion and agriculture.

Terosa said the basic education and health sectors are beset by “de-cades-old issues,” such as the lack of facilities and funding.

Asian Institute of Management Policy Center Executive Director Ron-ald Mendoza attributed the difficulty of the poor to benefit from growth to “structural factors,” such as expensive energy, chronic conflict in poor regions and the lack of access to financial services.

Mendoza added that the restrictions in foreign and local investments make it more difficult to create jobs for Filipinos.

Based on the latest Labor Force Survey, over 7 million Filipinos are currently looking for better jobs, and 2 million are jobless.

“The Aquino administration has taken important steps to address many of these challenges, yet, it will take more time and deeper reforms to sustain our high growth while building greater inclusiveness in its benefits,” Mendoza said.

Sources of optimismFOR this year, the Department of Budget and Management has expressed confidence that the May elections, which would spur government and private-sector spending, would boost growth.

The PCCI said ongoing public-private partnership projects and higher government spending give businessmen reason to hope that the coun-try’s performance this year would be better. “Also, exporters feel that the US market will recover this year so this will help prop up GDP,” PCCI President George T. Barcelon said. With a report from Dave Cagahastian

Growth during Aquino’s term fastest in 40 years–Balisacan

THIS January 28 photo shows (from left) Konrad Adenaur Stiftung Resident Representative Benedikt Seeman; Rep. Rufus B. Rodriguez of the Second District of Cagayan de Oro; Ambassador of the European Union Delegation to the Philippines H.E. Franz Jessen; Government of the Republic of the Philippines Peace Negotiator Secretary Senen Bacani; and Abdullah Camlian, member of the Bangsamoro Transition Commission on behalf of Chairman Mohagher Iqbal, at the project launch of the Democratic Party Development. The group, which aims for a Bangsamoro movement, was launched in Makati City on Thursday. STEPHANIE TUMAMPOS

The WorldBusinessMirrorEditor: Lyn Resurreccion • news@businessmirror.com.ph Friday, January 29, 2016A6

Kerry arrived in Beijing on Tues-day night after two days in Lao PDR and Cambodia, and met with Wang for more than four hours on Wednesday morning. North Korea “topped the agenda,” he told report-ers at a news conference afterward.

At the conference, Kerry and Wang painted a positive picture of US-China relations in broad strokes, discussing “cooperation” on a range of issues, including the Iranian nu-clear deal, wildlife tra� cking and combating the Ebola virus.

Yet, their failure to bridge a deep divide on North Korea’s nuclear program and Beijing’s territorial ambitions in the South China Sea il-lustrated the fragility of the region’s security environment.

On January 6 North Korea an-nounced that it successfully con-ducted its � rst underground test of a hydrogen bomb; experts said that a nuclear bomb clearly detonated, but raised doubts about Pyongyang’s claim of owning a signi� cantly more powerful thermonuclear weapon.

Beijing has provided an economic lifeline to North Korea for decades and fears that unrest in the country could destabilize China’s northeast-ern provinces.

“North Korea poses an overt threat, a declared threat to the world,” Kerry told reporters. He proposed nego-tiating a UN Security Council resolu-tion to tighten sanctions on North

Korea, dealing a potential blow to China-North Korea trade in indus-tries, including aviation, shipping, and the exchange of resources such as fuel and coal.

“� e US will do what is necessary to protect the people of our coun-try and our friends and allies in the world,” he said. “All nations, particu-larly those who seek a global leader-ship role or have a global leadership role, share a fundamental responsi-bility to meet this challenge with a united front.”

Although Wang agreed that the UN Security Council must pass a new resolution in response to the nuclear test, he balked at the pros-pect of tightening sanctions.

“Sanctions are not an end of themselves,” he said. “We must point out that the new resolution should not provoke new tension in the situ-ation, much less destabilize the Ko-rean peninsula.”

Experts said that China likely does not see much upside in adopting the US’s proposed framework for dealing with Pyongyang.

“On the nuclear side, I’ve never had any doubt that the Chinese want to end this program, but they don’t see a strategy in the international community to achieve that goal,” said Bonnie Glaser, a senior adviser for Asia at the Center for Strategic and International Studies. “A lot of people think China is the missing

link and if only it would get on board with sanctions that North Korea could be compelled to give up its nu-clear weapons. � e Chinese just don’t look at it like that.

“� ey play out in their minds, what are the consequences if they re-ally agree to very tough sanctions—if they cut o� oil deliveries to North Korea?” she added. “So that creates instability in North Korea, most like-ly, then China ends up with a crisis on its border that potentially brings US troops closer to China, and you end up with a worse situation than when you started.”

On Wednesday morning China’s New China News Agency accused Washington of “uncompromising hostility” toward North Korea, “� ar-ing up the country’s sense of inse-curity and, thus, pushing it toward reckless nuclear brinkmanship.”

Kerry also reached loggerheads with Wang regarding China’s mari-time ambitions, which have riled the country’s neighbors and threatened the region’s US-led security order.

China claims virtually all of the South China Sea, a potentially oil-and gas-rich area of the western Pacific Ocean dotted with remote islands and reefs. Vietnam, the Philippines, Brunei Darussalam, Malaysia and Taiwan also claim parts of the sea as their own.

China has stepped up its claims in recent years with a series of heavyweight projects, including building arti� cial islands on a shoal also claimed by the Philippines. Last October the US sent a warship within 12 nautical miles of these islands, drawing harsh rebukes from Beijing.

“� e South China Sea islands were historically China’s territory, and China has a right to protect its maritime sovereign and legal rights and interests,” Wang said at Wednes-day’s news conference. He denied ac-cusations that China has militarized its arti� cial islands, adding that Bei-jing has built “some necessary facili-ties for self-defense.”

Southeast Asian countries are in-deed divided over how to handle the issue, and the lack of consensus has

allowed China to advance its projects with limited opposition.

Before his meetings in China, Kerry visited Laos, a landlocked, deeply impoverished country of 7 million people between � ailand and Vietnam, and Cambodia, which enjoys close economic ties with Chi-na and tends to side with Beijing on issues of maritime rights.

Although the Association of Southeast Asian Nations (Asean), a 10-member regional bloc, could band together to counter China’s territorial claims, internal divi-sions have stymied attempts at col-lective action. In 2012 Cambodia blocked mentions of the disputes at a summit in Phnom Penh, lead-ing the association to fail to issue a joint communiqué.

Asean leaders will attend a sum-mit hosted by President Barack Obama in California in February. Laos is the association’s chair.

During his visit to Laos, Kerry—only the second US secretary of state to visit the country since 1955—promised to boost US-funded pro-grams to ameliorate malnutrition and remove unexploded ordinance left from the Vietnam War. China, meanwhile, has promised the coun-try major investments in infrastruc-ture, including a high-speed rail line.

China’s state media have re-sponded to US pressure on the South China Sea issue with signi� cantly less restraint than the country’s for-eign minister.

“Washington’s strategy has fed the strategic distrust between China and the US, and prompted smaller countries in the region to vacillate between the two powers and try to bene� t from their contest,” said a Tuesday commentary in the state-owned, notoriously bombastic Global Times newspaper.

“Many of them are manipulated by Washington behind the scenes as a proxy to counter China. Washing-ton instigates some smaller nations to challenge China in the South Chi-na Sea, one of China’s core interests, and sugarcoats itself as a defender of justice.” Los Angeles Times/TNS

US, China at impasse over N. Korea, South China Sea

LAST year Chinese policy-makers watched $1 trillion in capital head for the exits. Now the ques-

tion on the minds of global investors is what exactly will President Xi Jinping’s economic team do about it.

One option is to build a wall around the $10-trillion-plus economy with new and comprehensive capital controls. It’s the economic equivalent of breaking the glass and pulling the alarm—and some serious people are advocating it. One is Bank of Japan Governor Har-uhiko Kuroda, who turned heads at the talking salons of Davos last week when he urged China to impose capital con-trols to stem the � ow of cash leaving.

China has been getting a lot of unsolicited advice of late. Its trading partners, including Japan, and com-modity producers the world over have a big stake in China’s smooth transition from a high-speed export economy into a more sustainable one anchored by services and consumer spending.

Yet, the transition isn’t easy. Chi-na is growing at its slowest pace since 1990, and its domestic stock markets in Shanghai and Shenzhen have expe-rienced massive and renewed sell-o� s in January that have destroyed $1.8 tril-lion in wealth. Nor are there any quick � xes for authorities, who already have strict rules in place on money � ows.

Halt trade?“THERE’S not much China can do, short of actually halting overall trade,” said Andrew Collier, an independent China analyst and former president of the Bank of China International US.

The capital exodus is also a re� ec-tion of better investment opportunities abroad, and that’s not necessarily a bad thing—at least in moderation.

Last year Chinese companies spent a record $61 billion on foreign acquisi-tions that could take them into new markets and move up the innovation ladder in coming years. This month Hai-er Group Corp. announced plans to use its publicly traded arm in Shanghai to pay $4.5 billion for General Electric Co.’s home-appliance business.

Other types of capital out� ows are less welcome:  Sustained out� ows can fuel de� ationary pressures,  be a drag on growth and weigh on asset prices from real estate to shares. 

Warning SorosSOME Chinese savers are shifting their money out of the country for fear of a dramatic devaluation of the yuan and uncertainty about the government’s intentions. The People’s Bank of China (PBOC) has insisted it isn’t contemplat-ing a big change in currency policy.

Last year it spent a big chunk of the country’s foreign-exchange reserves to prop up the yuan. State media have warned speculators, including billion-aire investor George Soros, to back o� and not short-sell the currency.

And yet the yuan keeps falling—hit-ting a � ve-year low earlier this month and taking its drop over the past year to more than 5 percent. The PBOC doesn’t act with complete independence and, sometimes, bends to the will of the gov-ernment, where some o� cials might be tempted to boost the export sector by guiding the currency down further.

Further undermining the Chinese savers’ con� dence are the tough pol-icy choices ahead. If the government is serious about supporting the yuan and warding o� speculators, it may need to further wind down the coun-try’s $3.3-trillion foreign-exchange re-serve stockpile. 

Analysts worry that the bu� er may not be as liquid as it appears or may, in part, be already committed to fund government projects. The reserve as-sets could hit a point considered un-comfortably low by mid-year, accord-ing to Bloomberg Intelligence.

“China has a large reserve, but at this rate or higher, the liquid portion of the reserve  may run low in months—not years,” said Victor Shih, a profes-sor at the University of California at San Diego who studies China’s politics and � nance.

Yu Yongding, a former adviser to the PBOC, says  policy-makers should stop intervening in the currency market

and preserve foreign reserves.Then there are more draconian

measures, such as hiking interest rates or allowing a steep one-o� depre-ciation. But steps like that come with signi� cant risks in an economy that is slowing and requires massive re-structuring among its debt-burdened state-owned industries.

The most draconian option of all—imposing comprehensive new restrictions on the � ow of money—would � y in the face of past commit-ments to � nancial-sector reforms.

“We do not expect harsh capi-tal-control measures, since the au-thorities don’t want to jeopardize progress toward renminbi interna-tionalization and capital account liberalization,” the Institute of In-ternational Finance said in a state-ment, using the alternative name for the yuan. “Gap-plugging e� orts can be futile.”

Meantime, the pressure isn’t letting up. Out� ows jumped last December, capping an estimated 2015 total of $1 trillion, a record in Bloomberg Intelli-gence data dating back to 2006.

Here’s another way of looking at the scale of the problem China faces: If just 5 percent of its 1.3 billion population sent the maximum $50,000 allowed out of the country, it would deplete the entire $3.3 trillion in reserves. Citizens frequently skirt the rules—from pooling quotas to using so-called underground banks.

To be sure, China maintains many strengths.  The underlying economy is showing signs of resilience, especially among the consumer and services sec-tors. And not all of the outbound cash can be described as capital � ight: Some is to repay foreign debt or fund over-seas investments.

“I don’t think China’s capital out� ow is that serious now,” said Derek Scissors, a scholar at the American Enterprise In-stitute in Washington who studies the Chinese economy. “Obviously if you have two more years of that, then you’ll have a problem.”

Still, the scale of the task was laid bare on Tuesday when data showed the gap between China’s reported exports to Hong Kong and the shipments reg-istered by the territory widened last December, suggesting currency-mar-ket swings may have spurred a fresh round of fake trade invoicing.

“The banks are having a tough time � guring out which transactions are le-gitimate,” Collier said.

Other developments this week un-derscore the challenge foreign and local investors alike face when assessing the economy’s strength. Wang Baoan, the head of the nation’s statistics bureau, is the latest high-ranking o� cial to be targeted in President Xi’s campaign against corruption, a government statement showed just hours after Wang spoke on economic a� airs.

While it would be a mistake to see the investigation as further evidence of problems with the veracity of China’s economic data, “communication on the investigation [or the lack of it] is fur-ther evidence of China’s tin ear when it comes to dealing with market percep-tions,” Bloomberg Intelligence econo-mists Tom Orlik and Fielding Chen wrote in a note.

With so few good options, perhaps, the most likely course will be a contin-ued muddle-through approach, where the mix of intervention, jawboning and incremental capital tightening seeks to stem the capital out� ow.

Ultimately, � xing the issue requires restoring con� dence about the eco-nomic outlook and the ability of Chi-nese policy-makers to clearly telegraph their goals to global investors.

“Just start telling people what they will be doing is step No. 1,” Scissors said.

Bloomberg News

$1-T CHINA YUAN EXODUS ISN’T ABOUT CAPITAL CONTROLS

BEIJING—Secretary of State John F. Kerry and Chinese Foreign Minister Wang Yi

appeared to reach an impasse on Wednesday over the severity of prospective sanctions for North Korea, three weeks after the isolated country conducted its fourth nuclear bomb test.

AKEY Cabinet ally of Prime Minis-ter Shinzo Abe is set to face the media on Thursday, a week after

the emergence of tabloid allegations that threaten to disrupt passage of the budget for the coming � scal year.

Abe is seeking to retain Economy Min-ister Akira Amari, Japan’s top negotiator on the Trans-Paci� c Partnership (TPP) trade pact, after claims in a weekly magazine that he and his sta� took at least ¥12 mil-lion ($102,000) from a construction com-pany in exchange for favors. Regardless of whether he stays or goes, the allegations could weaken support for Abe six months

ahead of national elections.“He will ful� ll his responsibility to ex-

plain,” Abe told parliament on Wednesday. “After explaining, I want him to push on with his important role of economic revi-talization and the TPP.”

Much may hinge on whether Amari personally took cash from the unidenti� ed company based in Chiba prefecture, as al-leged in the Shukan Bunshun magazine.

A follow-up piece in the magazine published on Thursday quotes a repre-sentative of the � rm as saying Amari twice pocketed envelopes containing ¥500,000 in cash. It also claims that further unrecord-

ed payments were made, bringing the to-tal to tens of millions of yen.

At Thursday’s news conference, Amari is likely to deny that he personally received money from an o� cial at the company, Nippon TV reported, citing an unidenti� ed person. The brie� ng will be in the evening, Fuji TV said.

Amari told parliament on Wednesday afternoon that parts of the magazine ar-ticle don’t correlate with his memory.

“Once I’ve properly carried out the nec-essary investigation, I’ll ful� ll my responsi-bility to explain so as not to arouse suspi-cion among the public,” he said.

Support for Abe has so far withstood the allegations, and his ability to ride out the storm before upper house elections in the summer may hinge on how convincing an explanation Amari o� ers.

Opposition Democratic Party of Japan leader Katsuya Okada told parliament this week that Abe also had a “serious” responsi-bility to provide an explanation.

Abe has buckled under such pressure before. His � rst stint in o� ce lasted less than a year, ending with his resignation in 2007, after a series of Cabinet scandals con-tributed to a slump in public support. He’s developed resilience since. Bloomberg News

US Ambassador to China Max Baucus (center) looks back as US Secretary of State John F. Kerry (left) introduces his delegation to Chinese President Xi Jinping at the Great Hall of the People in Beijing on Wednesday. AP/ANDY WONG

Japan’s minister dispels bribery allegations

Volume of China’s economy

$10T-plus

A7

The WorldBusinessMirrornews@businessmirror.com.ph Friday, January 29, 2016

IS THE U.S. DUE FOR A RECESSION?

But the Fed, like most everyone else, is � nding itself trying to see past an im-penetrable fog.

Some economists warn that the US economy could fall into recession in the months ahead. If they’re right, a Fed campaign to keep notching up interest rates to slow the economic engine could tip the country over the cli� .

But wait. A great many other econo-mists—probably a majority—say the country is in no immediate danger of sliding into recession. If that’s true, the Fed can safely keep easing back on the throttle and reduce the danger of fu-ture in� ation.

Who is right, the pessimists or op-timists?

A lot is riding on the answer, and not just for investors. An economic down-turn this year would be a powerful blow to Democratic hopes of holding onto the presidency in November’s election.

Alas for the Fed’s decision-makers, there’s no way to tell for sure.

Both sides have good arguments, and the central bank has no crystal ball to look into the future and see what’s ahead.

� e pessimists point out that the current recovery has already lasted 10 months longer than the average period of uninterrupted growth since World War II.

And even though it’s still growing, the recovery from the Great Recession that began in mid-2009—never any-thing like a real boom—looks increas-ingly fragile.

Friday’s report on US GDP is ex-pected to show fourth-quarter total economic output grew at most a measly 1 percent annualized.

So far, the US has largely shrugged o� the dramatic fall of China’s stock market and the far more troubling slowdown in China’s overall growth. But how much longer can America � ght the odds? Isn’t the recovery bound to succumb to age and headwinds from overseas? And sooner rather than later?

“It’s kind of like a cold,” said Nayan-tara Hensel, former chief economist for the US Navy. “You’ve got somebody sneezing and sick as a dog, and all the other countries are in the room togeth-er.” She put the odds of a US recession this year at 50 percent.

Industrial output slowing downONE important sign of potential trouble ahead—US industrial out-put—is slowing down. � at’s bad news not only because it signals weaker sales and pro� ts for manu-facturers, but also shorter hours and smaller paychecks for their relatively well-paid workers.

Also, the world faces a glut of oil, and prices are almost in free-fall. Crude oil prices have plunged to about $30 a barrel from more than $110 in June 2014.

� at’s good news for Americans at the gas pump. But it’s devastating for US oil producers—and for the mil-lions of businesses and workers tied to the oil industry.

“We’re going to � nd out just how diversi� ed we are,” said Pat-rick Jankowski, an economist at the Greater Houston Partnership, noting that the metro area eked out 23,000 job gains last year, less than one-fourth the previous year.

Near-term recession is lowIF these warning signals are indeed � ashing, economists who think the chances of a near-term recession are low have powerful arguments on their side, too.

First, they note that age is not always a good indicator of economic durability or longevity. � e expansion in the early 1990s lasted more than 10 years.

“Expansions don’t die of old age,” said Lynn Reaser, a longtime Califor-nia economist who is chief economist for Point Loma Nazarene University in San Diego.

Reaser says the risks of recession

WASHINGTON—For the Federal Reserve (the Fed), Wednesday’s decision to

stand pat on interest rates wasn’t hard—not with global fi nancial markets and oil prices in turmoil.

The odds of a US recession this year

50% are signi� cantly higher today than three months ago, primarily because of � nan-cial markets and China’s slowdown. But she still doesn’t see a downturn around the corner. Job growth nationwide has been resilient, companies haven’t stock-piled goods, and government spending on the whole is increasing again.

“� is [expansion] has been abnor-mally slow, frustrating in many re-spects,” she said, “but it also means we haven’t built up imbalances.”

Interviews with bellwether busi-nesses, such as temporary-help � rms, show a split picture.

“I think people are kind of stuck at the moment. We want to plan for growth, but there’s a lot of noise out there,” said Amit Pal Singh, director of operations at Labor Finders Inter-national, one of the nation’s largest industrial sta� ng � rms.

In contrast, Tammy Browning, who shuttles between Philadelphia and the

San Francisco Bay Area as senior vice president for the white-collar sta� ng � rm Yoh, said, “We’re not seeing any pause button being pushed.”

Consumer confi denceMEASURES of consumer con� dence, an important sign of future personal spending, have slipped a little from early last year, but are holding � rm, even during the past couple of weeks of plunging stocks. TNS

The WorldBusinessMirror news@businessmirror.com.phFriday, January 29, 2016A8

But two days before the talks, it is unclear who will attend—or even if the UN special envoy to Syria will be able to move the needle on any of the thorny issues on the agenda to help end the war that has killed 250,000 people in the last � ve years.

� e urgency of the talks is also highlighted by the UN report that the number of besieged areas in  Syria’s  con� ict has risen to 18, up from 15 earlier this month, with as many as half-a-million people now a� ected.

In the chaotic run-up to the talks, the warring sides and their interna-tional backers have bickered over who should be present and what should be discussed, with some

threatening to boycott if their condi-tions are not met.

� e drama continued on Wednes-day, with a major opposition bloc saying it would only join the talks if progress is made toward lift-ing sieges on blockaded towns in  Syria  and implementing UN Security Council resolutions on other humanitarian issues. � e Saudi-backed bloc, known as the Higher Negotiating Committee, was meeting to make a � nal decision on whether to go to Geneva.

� e US on Wednesday called on the opposition to attend the talks.

“We believe it should seize this opportunity to test the regime’s will-ingness and intentions and expose

before the entire world which parties are serious about a potential peace-ful political transition in  Syria  and which are not,” State Department Spokesman Mark Toner said.

� e wrangling has cast uncer-tainty on the talks, which already are generating very low expecta-tions. � e process is aimed at getting the sides to discuss implementing a national cease-� re and a political transition ending in elections.

Here’s a look at who’s invited, who’s not, and how the talks will proceed:

Who is invited?UN special envoy to Syria Sta� an de Mistura has sent invitations without making them public because of sen-sitivities surrounding participation. Russia’s Deputy Foreign Minister Gennady Gatilov was quoted by the Interfax news agency as saying de Mistura invited Syrian Foreign Min-ister Walid al-Moallem, as well as Riyad Hijab, the head of the opposi-tion’s Higher Negotiating Commit-tee, the bloc that includes rebel and civilian opposition groups.

Arab media said de Mistura in-vited 15 delegates from each side. He also invited Russia-backed Syrian opposition � gures including Qadri Jamil, a former Syrian deputy prime

minister; civil-society groups; wom-en; and independents.

Among the independents is for-mer Foreign Ministry Spokesman Jihad Makdissi, who said he won’t be at the � rst round of talks to help ease intense wrangling, and because the formation of the Syr-ian opposition delegation has been marred by troubles.

� e opposition delegation is head-ed by Syrian army defector Asaad al-Zoubi and includes Mohammad Alloush, who represents a powerful Islamic rebel group known as Jaish al-Islam, or the Army of Islam. � e group is considered a terrorist orga-nization by Syria and Russia.

Who is not invited?THE largest Kurdish group in Syria, the Democratic Union Party, or PYD, is not invited; neither are the Islamic State (IS) group and the Nusra Front,

two militant factions that control large parts of Syria.

� e PYD’s participation has emerged as the biggest sticking point ahead of the talks. Its military wing has been instrumental in the � ght in northern  Syria  against IS mili-tants, and Russia insists it should be present. But Turkey, which has its own restive Kurdish population and views the group as a terrorist organization, strongly opposes any PYD participation and threatened to withdraw its support for the talks if it is invited.

In the end, de Mistura did not extend an o� cial invitation to leaders of the group, but its leader, Saleh Muslim, was in Lausanne on Wednesday. Kurdish o� cials said he was invited by the Swiss govern-ment to serve as an adviser to the talks. Haitham Manna, a veteran Syrian opposition � gure, suggested he would boycott the talks unless the PYD was invited.

How will the talks proceed?UNLIKE talks in Geneva two years ago when government and opposi-tion delegations faced o� , de Mistura says he plans to keep them apart in separate rooms, with “a lot of shut-tling” in between.

He said on Monday he is aiming for “proximity talks” that start on Friday and go for six months on a staggered basis. � e approach points to the enormous complexities that lie ahead.

One of the suggestions has been to have three rooms at the Palais des Nations: one for the government del-egation and two for the opposition to include both the Saudi and Russian-backed opposition. Khaled Nasser, an opposition � gure, said he believed negotiations with such limited ambi-tions would “waste time.”

What do other countries say?THE US and Russia agree on the need to get the two sides talking about Syria’s future, but are split on most other issues.

Saudi Arabia and Turkey, both key backers of the rebels, supported the formation of the opposition del-egation that includes Islamic rebels.

Russia, a main backer of the Syr-ian government of President Bashar al-Assad, has lobbied for other rep-resentatives to be there, including those that the Saudi bloc considers to be too close to Assad and the PYD.

French Foreign Minister Laurent Fabius said the Higher Negotiating Committee should be the primary negotiator for the rebels.

Iran, another main backer of Assad, is among the 17 nations that support the process, but it has not voiced much opinion on the forma-tion of the delegations. AP

Chaotic run-up to Syria peace talks refl ects enormous gap

BEIRUT— e invitations are sent and preparations are under way at the United

Nations’ Palais des Nations in Geneva, where the fi rst peace talks in two years on the confl ict in Syria are to begin on Friday.

Syrian people aff ected by war

500,000

RIO DE JANEIRO—� e release of new � gures apparently � nd-ing fewer cases of microcepha-

ly in Brazil than � rst feared is adding force to calls for more research into the link between the rare birth defect and the spreading Zika virus.

Health experts have been look-ing at 4,180 suspected cases of mi-crocephaly reported since October in Brazil, where authorities said the birth defect could be linked to the virus and announced that 220,000 military personnel were being de-ployed to help eradicate the Aedes ae-gypti mosquito that transmits Zika.

But on Wednesday Health Min-istry o� cials said they had done a more intense analysis of more than 700 of those cases, con� rming 270 cases and ruling out 462 others.

What this means is hard to say, according to some experts. It does not answer whether the tropical Zika virus is causing the babies to have unusually small heads. Nor does it really tell us how big the problem is.

“I don’t think we should lower our alarm over the Zika outbreak,” said Paul Roepe, codirector of George-town University’s Center for Infec-tious Disease.

Brazilian o� cials still say they believe there’s a sharp increase in cases of microcephaly and strongly suspect the Zika virus is to blame. � e concern is strong enough that the US Centers for Disease Control and Prevention (CDC) this month warned pregnant women to recon-sider visits to areas where Zika is present, and o� cials in El Salvador, Colombia and Brazil have suggested women stop getting pregnant until the crisis has passed.

But the World Health Organiza-tion and others have stressed that any link between Zika and the de-fect remains circumstantial and is not yet proven scienti� cally. And the  new  � gures were a reminder of just how little is known about the disease and its e� ects.

� e arrival of the mosquito-borne illness in Brazil initially caused little alarm as the virus’s symptoms are generally  much milder than those of dengue. � en late last year, after noting what they said was a spike in the birth defect, Brazilian authorities for the � rst time asked doctors to re-port cases of patients in their care. So there are no solid numbers to com-pare with the new tally.

In 2014 only about 150 cases were reported in Brazil in a year—a surprisingly small amount for a large country with nearly 3 million births a year. � e US, with about 4 million births a year, has an esti-mated 2,500 cases of microcephaly a year, said Margaret Honein, a CDC epidemiologist.

Brazilian health o� cials have dismissed the idea there might have been a large number of unreported cases previously. But the rate of re-corded microcephaly cases was only a fraction of what some experts thought it ought to be.

In establishing a registry, the Health Ministry cast a wide net, in-cluding live births, stillborn and mis-carried babies, and fetuses shown to have unusually small heads by ultra-sound or other diagnostic tests, the ministry said. In subsequent investi-gations, tests were done to see if the brain had been a� ected.

Brazilian health o� cials did not detail what they found in the 462 cases that were ruled out, but many of them were just premature and under-sized, a Health Ministry spokesman said.

� e birth defect can be caused by factors—such as genetics, malnu-trition or drugs. Infections are also a cause, although Zika-like viruses have not previously been linked to microcephaly.

� e CDC’s Honein said shifts in the numbers reported out of Brazil were not surprising, and much more investigation is needed.

She was echoed by Dr. Ganesh-waran Mochida, a pediatric neurolo-gist at Boston Children’s Hospital who specializes in microcephaly.

He said 270 con� rmed cases “is still quite a substantial number” in a country that has been reporting far lower counts. AP

MORE RESEARCH NEEDED INTO LINK BETWEEN ZIKA AND MICROCEPHALY

PARIS—France has asked its Europe-an Union (EU) partners to consider new sanctions on Iran for its recent

missile tests, o� cials have told The Associ-ated Press (AP), even as Paris welcomed the president of the Islamic Republic, which is � ush with funds from the lifting of other sanctions over Tehran’s nuclear program.

The ambiguous signals emerging on Wednesday from France came as Presi-dent Hassan Rouhani, a relative moderate elected in 2013, signed billions of dollars in business deals on an earlier stop in Italy and met with Pope Francis in the � rst such Iranian foray into Europe since 1999.

France hopes for similarly lucrative deals during Rouhani’s two-day visit, along with re-gional peacemaking e� orts, as the once-pa-riah state emerges from decades of isolation.

But amid the courting of Iran, two of-� cials from EU nations told AP that the re-quest for new sanctions came shortly after the EU and the US lifted sanctions on Teh-ran on January 16 in exchange for United Nations certi� cation that Iran had scaled back its nuclear programs. Iran said those

programs were peaceful, but critics feared it wanted to build nuclear weapons.

The two o� cials said the French re-quest came after the US had imposed new sanctions on Iran over the � ring of a medi-um-range ballistic missile.

The two o� cials said the French pro-posal is formally under EU review, but most other EU members view it as counterpro-ductive to e� orts to revive political and economic ties with Iran after the long chill over the nuclear dispute. The o� cials, who were briefed on the issue, spoke on condi-tion of anonymity because they were not authorized to discuss the issue publicly.

The French government did not re-spond to AP requests for comment by late Wednesday. In an e-mail to AP, the EU also did not address whether France had asked for a review.

A French diplomat, who spoke only on condition of anonymity because he was not authorized to talk publicly on the topic, cited Foreign Minister Laurent Fabius as saying the EU is reviewing the possibility of new sanctions on Iran. He declined to say

which nation initiated the process.Disclosure that the French asked for

such a review—even if it is ultimately un-successful—could complicate Rouhani’s low-key visit. About 20 accords between companies and ministries were to be signed on Thursday, the French president’s o� ce said.

Paris also wants to draw Tehran into a role as peacemaker in a Middle East that is fraught with civil war in Syria, where Iran has played an active role in support of President Bashar al-Assad, and in Yemen.

There was little fanfare in France for the new era being ushered in for Iran, as Rou-hani works to help his nation of 80 million emerge from isolation and raise its pro� le in the West, balancing ties with Russia and China. His Paris visit will be marked by a two-hour meeting with President Francois Hollande and ministers.

France, which has deep ties with Arab countries, also conducts a balancing act in the region. Last week Fabius vis-ited Sunni-majority Saudi Arabia, Iran’s � erce rival, and Paris will shortly wel-

come the Saudi crown prince.While Shiite powerhouse Iran actively

supports the Assad government in  Syria, Saudi Arabia—like France—� rmly oppos-es him, and supports rebel groups.

Tensions recently escalated with Saudi Arabia breaking ties with Iran after its embassy in Tehran was mobbed by crowds protesting the execution in Sau-di Arabia of a prominent Shiite cleric and opposition � gure.

France is trying “to ease tensions by speaking to everyone, which is our vo-cation,” said a ranking French diplomat ahead of Rouhani’s arrival. He was not au-thorized to speak publicly about the visit and asked to remain anonymous.

Iran’s human-rights record, including hundreds of executions, adds another note of caution for France which presses for the abolition of the death penalty worldwide.

For its part, Iran could raise the issue of France harboring the headquarters of the most organized Iranian op-position group, the People’s Mujahe-deen of Iran—which planned a Thursday

demonstration against Rouhani. Both countries clearly are opting for

pragmatism.Rouhani was expected to oversee the

signing of contracts, including a possible deal with Airbus to renew Iran’s � eet of passenger jets. Iran’s aviation industry has su� ered under sanctions in the past three decades, and of 250 commercial jetliners, only about 150 are � ying.

Oil giant Total, engineering group Al-stom and carmakers PSA Peugeot-Citroen and Renault-Nissan, with a past presence in Iran, are among companies that could clinch deals, too.

The Italian government and private com-panies inked more than a dozen accords with Iran covering the metals industry, oil services, rail transport and shipbuilding.

France showed its eagerness to take up where it left o� in Iran as soon as the July nuclear deal was signed. Fabius visited Tehran, as did an important delegation of France’s main business group, known as Medef, where Rouhani will address busi-ness leaders on Thursday. AP

AS ROUHANI VISITS PARISFRANCE ASKS E.U. PARTNERS FOR NEW SANCTIONS ON IRAN

A SYRIAN family sit outside their tent at a Syrian refugee camp in the eastern town of Kab Elias, Lebanon, on Wednesday. Lebanon, a small country with a population of 4.5 million, is hosting more than a million registered Syrian refugees, most of them living in informal tented settlements in eastern Lebanon. AP/BILAL HUSSEIN

BusinessMirrorwww.businessmirror.com.ph Friday, January 29, 2016 A9

Republic of the PhilippinesCOMMISSION ON ELECTIONS

ManilaGENERAL INSTRUCTION FOR THE SPECIAL BOARD OF ELECTION INSPECTORS AND SPECIAL BALLOT RECEPTION AND CUSTODY GROUP IN THE CONDUCT OF MANUAL VOTING AND COUNTING OF VOTES UNDER REPUBLIC ACT NO. 9189, OTHERWISE KNOWN AS "THE OVERSEAS ABSENTEE VOTING ACT OF 2003" AS AMENDED BY REPUBLIC ACT NO.10590 FOR PURPOSES OF THE MAY 09, 2016 NATIONAL AND LOCAL ELECTIONS.

x----- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -x

Bautista, J.A.D. ChairmanLim, C.R.S. CommissionerParreño, A.A. CommissionerGuia, L.T.F. CommissionerLim, A.D.L CommisionerGuanzon, M.R.A.V CommisionerAbas, S.M. Commisioner

Promulgated: January 13, 2016

Resolution No. 10035

The Commission on Elections, pursuant to the authority vested in it by the Constitution, Batas Pambansa Blg. 881 (Omnibus Election Code), Republic Act No. 8189, Republic Act No. 9189 (The Overseas Absentee Voting Act of 2003) as amended by Republic Act No. 10590, Republic Act No. 9369 and other election laws, RESOLVED, as it hereby RESOLVES, to promulgate the following General Instructions for the Special Board of Election Inspectors (SBEI) and Special Ballot Reception and Custody Group SBRCG), in the conduct of manual voting and counting of votes for purposes of the May 9, 2016 National and Local Elections.

ARTICLE IDEFINITION OF TERMS

Section 1. Meaning of words. - As used in this General Instructions, the following terms shall refer to:

a. Approved Overseas Voter Registration Record- application for registration/ certification approved by the Resident Election Registration Board (RERB) or the computer generated document which contains the demographic and biometric information of an overseas voter;

b. Certified List of Overseas Voters (CLOV) - list of registered overseas voters whose applications to vote have been approved by the RERB. Said Hst to be prepared by the Office for Overseas Voting (OFOV) of the Commission, on a country-by-country and post-by post basis;

c. Comrnission -the Corm11ission on Elections;

d. Day of Elections - the actual date of elections in the Philippines which is May 09, 2016;

e. Department of Foreign Affails-Overseas Voting Secretariat (DFA OVS)-secretariat based at the Department of Foreign Affairs (DFA) home office tasked to assist the Office for Overseas Voting (OFOV) under the Commission, and to direct coordinate and oversee the participation of the DFA in the implementation of the Overseas Voting Act of 2003, as amended;

f. Field Voting - conduct of voting for a limited period of time outside the Post in places abroad where· field registrations were conducted or in such areas overseas as may be authorized by the Commission;

g. List of Overseas Voters with Voting Records - certified list of overseas voters containing their names and biometrics arranged alphabeticaly, for use by the SBETs or SBRCGs during the voting period;

h. National Registnj of Overseas Voters (NROV) - consolidated list prepared, approved and maintained by the Commission. This list contains the names of overseas voters, including those registered under Republic Act No. 8189 who have applied to be certified as absentee voters, have been approved by the Resident Election Registration Board, indicating the Post where the overseas voter is registered;

i. Office for Overseas Voting (OFOV) - office of the Commission tasked to oversee and supervise the effective implementation of the Overseas Voting Act of 2003 as amended;

j. Overseas Voter - a citizen of the Philippines who is qualified to vote under the Overseas Voting Act of 2003, as amended, not otherwise disqualified by law, who is abroad on the day of the elections;

k. Overseas Voting - process by which qualified citizens of the Philippines abroad exercise their right to vote;

I. Overseas Voting Election Retuns- a document showing the date of elections, the country in which it is held, the number of overseas voters qualified to vote, the number of overseas voters who actually voted, and the votes obtained by each candidate in an overseas voting precinct;

m. Overseas Voting Precinct- groupings of overseas voters in a given country or post designated for purposes of voting and counting;

n. Personal Voting - a mode of voting where the voters personally appear to cast their votes at the Posts or such other voting areas designated by the Commission;

o. Postal Voting - a mode of voting where mailing packets, containing the official ballots and other election paraphernalia, are sent to the voters through the mail or are personally delivered to or picked-up by the voters at the Post or such other voting areas designated by the Commission. Whereupon, the voters either mail or personally deliver their accomplished ballots to the Post;

p. Posts- Philippine embassies, consulates, foreign service establishments and other Philippine government agencies maintaining offices abroad, e.g., the Philippine Overseas Labor Offices (POLO), having jurisdiction over the places where the overseas voters reside. For purposes of overseas voting, Posts shall also mean to include the Manila Economic & Cultural Offices (MECOs) in Taiwan;

q. Representative of the Commission -officials and employees of the foreign service corps, including Filipino conh·actual or project term personnel that the embassies, consulates and other foreign service establishments locally hired at the host counhy, deputized by the Commission pursuant to the Overseas Voting Act of 2003 as amended;

r. Seafarers - ship officers and ratings manning ships, including offshore workers, service providers and fishermen, as defined in the Revised Rules on the Issuance of Seafarer's Identification and Record Book of the Maritime Industry Authority;

s. Special Ballot Reception and Custody Group (SBRCG) - group deputized by the Commission to receive and take custody of all accountable and non-accountable election forms, supplies and paraphernalia sent by the OFOV for transmittal to the voters, SBEJs and Special Boards of Canvassers (SBOC);

t. Special Board of Election Inspectors (SBEI) - body deputized by the Commission to conduct the voting and/ or counting of votes;

u. Supervisory Teams - officials and employees of the Commission designated by the Commission to supervise and ensure the implementation of the Overseas Voting Act of 2003 as amended. Such supeTvisory teams shall be headed by career officers or any lawyer of the Commission designated by the Commissioner-in-charge of the OFOV;

v. Voting Period- a continuous thirty (30)-day period, the last day of which is the day of election as defined under letter "d" hereof, inclusive of established holidays in the Philippines and such other holidays in the host countries.

ARTICLE IISPECIAL BALLOT RECEPTION AND

CUSTODY GROUP

Sec. 2. Special Ballot Reception and Custody Group; constitution. - The Commission, through the Commissioner-in-charge of OFOV, shall, upon recommendation of the DFA-OVS, constitute in every Post, starting February 1, 2016 up to February 14, 2016, an SBRCG, which shall be composed of three (3) members.

Additional SBRCG in Posts may be constituted where the registered voters are more than forty thousand (40,000).

Sec. 3. Qualifications of members/substitutes of the SBRCG. - No person shall be appointed as chairperson or rnembr of the SBRCG,. unless such person:

1. Is of good moral character and irreproachable reputation;2. Is a citizen of the Philippines residing abroad;3. Is from among the staff of the Posts;4. Has never been convicted of any election offense or of any other-

crime punishable by more than six (6) months of imprisonment, or has no pending case filed against him for any election offense; and

5. Is able to speak and write English or Filipino.

In case of shortage of qualified staff of the Posts, citizens of the Philippines who are qualified to register or vote under the Overseas Voting Act of 2003, as amended, and of known probity and competence, may be

appointed as. members of the SBRCG, provided that the chairperson shall be a staff of the Posts. The Head of Post shall issue the Appointment of the Chairperson/Poll Clerk/Members/Substitutes of the SBEI/SBRCG.

In case of temporary vacancy in the SBRCG, the provision in Section 11 of these rules shall apply.

Sec. 4. Disqualification. - The members of the SBRCG or their spouses shall not be related within the fourth civil degree of consanguinity or affinity to any member of the same SBRCG or to any of the candidates for President, Vice President, and Senator.

Sec. 5, Notice of disqualification. - Any member of the SBRCG who is disqualified shall, within five (5) days from knowledge of such disqualification, notify the head of the Post in writing, who shall, in turn submit a replacement to the Commission through the OFOV for appointment.

Sec. 6. Functions of the SBRCG. - The SBRCG shall perform the following duties and functions:

a. Receive from the Commission through the OFOV, all accountable and non-accountable election forms, supplies and paraphernalia to be used in voting, counting and canvassing;

b. Verify, using the packing list, the quantity and serial numbers of all ballots, election returns and canvassing forms, and other accountable forms, received in the presence of the head of the Post or his/her authorized representative, watchers of political parties and representatives of the Filipino community, if available.

c. Notify the OFOV within twenty-four (24) hours after verification, of the receipt of accountable and non-accountable forms, condition thereof and discrepancy, if any, the quantity and serial numbers of the accountable forms;

d. Store in a secure place all received forms and supplies; and

e. Perform such other duties and functions as provided under these rules and as mandated by the Commission.

ARTICLE IIISPECIAL BOARDS OF ELECTION INSPECTORS

Sec. 7. Special Board of Election Inspectors; constitution and appointment. The Commission, through the OFOV, shall, upon recommendation of the DFA-OVS, constitute in every Post, starting February 1, 2016 up to February 14, 2016, at least one (1) SBEI, which shall be composed of three (3) members, for purposes of voting and/ or counting.

Each SBEI shall handle not more than four thousand (4,000) voters. ln excess of four thousand (4,000) voters, additional SBEis may be constituted upon approval of the OFOV.

The SBEI shall be composed of a Chairperson and two (2) Members who shall be public officers posted abroad and deputized by the Commission, one of whom shall be designated as Poll Clerk and the other as Third Member.

The Head of Post shall issue the Appoinhnent of the Chairperson/Poll Clerk/Members/Substitutes of the SBEI/SBRCG.

Sec. 8. Qualifications of members of the SBEI. - No person shall be appointed as chairperson or member of the SBEI, whether regular or ·substitute, unless said person:

a. Is of good moral character and irreproachable reputation;

b. Has never been convicted of any election offense or of any other crime punishable by more than six (6) months of imprisonment, or has no pending case filed against such person for any election offense; and

c. Is able to speak and WTite English or Filipino.

Any career public officer posted abroad designated by the Commission, as the case may be, shall act as the chairperson. In the absence of other government officers, the two (2) other members shall be citizens of the Philippines who are qualified to register or vote under the Overseas Voting Act of 2003, as amended, and deputized by the Commission.

Sec. 9. Disqualification. - No person shall serve as chairperson or member of the SBEI if such person or such person's spouse is related within the fourth civil degree of consanguinity or affinity to any member of the same SBEI or to any of the candidates for President, Vice President and/ or Senator.

For this purpose, the OFOV shall furnish the Post, through the DFA-OVS, the list of presidential, vice presidential and senatorial candidates, not later than January 30, 2016, so that the members of the SBEis will be able to know whether they are qualified or not to accept their appointments.

Sec. 10. Notice of disqualification. - Any member of the SBEI who is disqualified for any of the above reasons shall as soon as possible, notify the head of the Post in writing, who shaH, in turn appoint a replacement from the pool of substitutes and immediately notify the OFOV of such appointment.

Sec. 11. Temporary vacancies in the SBEI/SBRCG. - If at the time of the meeting of the SBEI/SBRCG, any member is absent or the office is still vacant, the members present shall call upon any substitute taken from the pool of substitutes, to perform the duties of the absent member. If the substitute cannot be found, the Head of the Post shall appoint any available official or employee of the Foreign Service Corps or non-partisan registered voter not otherwise disqualified to temporarily fill said vacancy until the absent member appears or the vacancy is filled.

The fact of substitution shall be entered in the Minutes of Personal Voting (OVF No. 11).

For this purpose, the Posts shall constitute a pool of substitutes for the SBET/SBRCG which will likewise be deputized by the Commission. The substitutes must possess all the qualifications and none of the disqualifications provided under these rules.

Sec. 12. Oath of members of the SBEI/SBRCG. - The members of the SBEI/SBRCG shall, before assuming their office, take an oath by accomplishing the Oath of SBEI/SBRCG (OVF No.5-A) before an officer authorized to administer oaths. In the absence of such officer, the oath may be taken before any other member of the SBEI/SBRCG present or, in case no other member is present, before any overseas voter. The accomplished Oaths of SBET/SBRCG shall be submitted to the SBRCG.

Sec. 13. Powers and functions of the SBEI. - The SBEJ shall have the following powers and functions:

a. Conduct the voting and/ or counting of votes in personal voting, and the counting of votes in postal voting in countries where the same has been authorized by the Commission;

b. Act as deputies of the Commission in the supervision and conh·ol of the election in the polling place where they are assigned;

c. Maintain order within the polling place and its premises, to keep access thereto open and unobsh·ucted, and to enforce obedience to its lawful orders. Persons who refuse to obey its lawful order, or conducts themselves in a disorderly manner in its presence or within its hearing and thereby interrupts or disturbs its proceeding, the SBEI may call upon the security force of the Post, if any, or its deputized peace officer to take such person into custody until the adjournment of the meeting, but such order shall not be executed as to prevent the person from voting; and

d. Perform such other functions as may hereinafter be prescribed by the Commission.

Sec. 14. Proceedings of the SBEI. - The meeting of the SBEI shall be public and held in the polling place designated by the Commission. The SBEI shall act through its Chairperson and shall decide, without delay, by a majority vote, questions which may arise in the performance of its duties. The Chairperson of the SBEI shall attest all resolutions issued by the Board. Sec. 15. Minutes of personal voting. - The SBEI shall accomplish in two (2) copies the Minutes of Personal Voting (OVF No. 11) and record the act or data required therein as they occur or become available during the voting. Copies of the OVF No. 11 shall be sealed in separate envelopes to be distributed as follows:

a. First copy to the Commission; andb. Second copy to be deposited inside the ballot box.

Sec. 16. Prohibition against political activity. - No member of the SBEI/SBRCG shall engage in any partisan political activity or take part in the elections except to vote and discharge their duties such as rendering assistance in accordance with usual protocol courtesies normally extended to visiting officials on official business.

Sec. 17. Supervision by Heads of Posts. - All foreign service personnel and representatives of attached agencies duly deputized by the Commission shall be under the direct supervision of the Heads of Posts insofar as the One Country Team Approach is concerned.

Sec. 18. Voting privilege of members of the SBEI/SBRCG. - Government employees posted abroad, who will perform election duties as members of the SBET/SBRCG, shall be allowed to vote in their respective posts provided they are registered as voters either in the Philippines or as overseas voters.

ARTICLE IVWATCHERS DURING VOTING AND COUNTING OF VOTES

Sec. 19. Watchers. -Every registered political party or coalition of

political parties fielding candidates, accredited political parties, sectoral party/ organization or coalition thereof participating in the party-list system of representation, every candidate, accredited citizens' arms and accredited OFW organizations shall be entitled to one (1) watcher at any given time during the voting and counting of votes.

For this purpose, registered political parties, coalition of political parties and every candidate, associations or organizations participabng in the party-list system of representation, accredited citizens' arms and accredited OFW organizations shall submit to the Posts, copy furnished the OFOV, its list of watchers per SBEI not l ater than five (5) days before the start of voting period.

However, if there is no sufficient space for all watchers to be accommodated, preference shall be given to the watchers of the dominant majority and dominant minority parties as determined by the Commission, one (1) watcher for the accredited citizens' arm, one (1) common watcher for accredited OFW organizations, and one (1) common watcher for the independent candidates.

Sec. 20. Qualifications of watchers. - No person shall be appointed watcher unless he:

a. Is an overseas voter in the Post where he is assigned;b. Is of good moral character and reputation;c. Has not been convicted of any election offense or any crime;d. Knows how to write and read English or Filipino; and;e. Is not related within the fourth civil degTee of consanguinity or affinity to

the chairperson or to any member of the SBEI in the Post where said person seeks app intment as watcher.

Sec. 21. Rights and duties of watchers. - Upon entering the polling place, the watchers shall present and deliver to the chairperson of the SBEI their appoinbnents and forthwith, their names shall be recorded in OVF No. 11 with a notation under their signatures that they are not disqualified to serve as such. The appoinbnents of the watchers shall bear the personal or facsimile signature of the candidate or the duly authorized representative of the political party, organization or coalition of parties who appointed them or of organizations authorized by the Commission.

The watchers shall have the right to:

a. Witness and inform themselves of the proceedings of the SBEI;b. Take note of what they see or hear;c. Take photograph of the proceedings and incidents, if any, during the

counting of votes, as well as of the election returns, tally board and ballot boxes/ receptacles;

d. File a protest against any irregularity or violation of law which they believe may have been committed by the SBEI or by any of its members or by any personi

e. Obtain from the SBEl a certificate as to the filing of such protest and/ or resolution thereon;

f . Read each ballot after it is read by the chairman, as well as the election returns after it is accomplished and signed by the members of the SBEI wHhou t touching such documentsi and

g. Be furnished, upon request, with a Certificate of Votes (OVF No.13) cast for the candidates, duly signed and thumb marked by the chairperson and all members of the SBEI.

Watchers shall not speak to any member of the SBEJ, or to any voter, or among themselves, in such a manner as would disturb the proceedings of the SBEI.

ARTTCLEVELECTION FORMS AND SUPPLIES

Sec. 22. Election forms, documents and supplies. - The SBRCG shall receive from the Commission through the OFOV the election forms, documents and supplies for its use and for dish·ibution to the SBEis and SBOCs. Except when authorized to do so earlier by the Head of Post, the SBEis shall get the forms, documents and supplies early in the morning of each voting day. The allocation of the forms, documents and supplies shall be according to the following:

OVF NO. DESCRIPTION RATE

OF DISTRIBUTION

ELECTION FORMS (VOTING)

2 Certified List of Overseas Voters 1 Set2-A List of Voters with Voting Records 1 Set2-B Certified List of Seafarer-Voters 1 Copy

4

Certified List of Candidates for President, Vice-President, Senators, and List of Parties, Sectoral Organizations or Coalitions Participating under the Party-List System

12 Sets

4-A Alphabetical Listing of Party List with Raffle Numbers 1 Set

5 Appointment of SBEI/SBRCG 9 Pieces5-A Oath of Office of SBEI/SBRCG 9 Pieces6 Official Ballots 1 Piece per Voter11 Minutes of Personal Voting 1 Set of 2 Pieces12 Paper Seals 5 Pieces

14 Certificate of Receipt of Forms and Supplies for Voting by the SBEI 2 Pieces

16Envelop for Torn Half of Unused Official Ballots, Other Half of Torn Unused Official Ballots and Official Ballots

3 Pieces

18 Envelope for Minutes of Voting 1 Set of 2 Pieces

30Temporary Appointment of Chairman/Poll Clerk/Third Member of SBEI/SBRCG

3 Pieces

33 Certificate of Challenge or Protest and Decision of the Board 3 Pieces

35 Certificate of Challenge/Protest of the Decision of the Board 3 Pieces

33-A Record of Challenge/Protest 10 Pieces

39 Oath of Voter Challenged for Illegal Acts 10 Pieces

40 Oath of Identification of Witness of Challenged Voter 10 Pieces

40-A Oath of Identification Challenged Watcher 12 Pieces

40-B Oath of an SBEI Member Identifying a Voter 10 Pieces

41 Summons Re: Identify of Challenged Voter 3 Pieces

42 Security Seals for Ballot Box Slits 60 Pieces43 Ballot Box Tape 8 Pieces

SUPPLIESBallot Secrecy Folders 12 PiecesBall Pens 12 PiecesThumbprint Takers/Stamp Pad 5 PiecesCollapsible Ballot Box 1 PieceBallot Receptacle/ inertCon 1 Piece

ELECTION FORMS (COUNTING)Collapsible Ballot Box to Contain Ballots to be counted 1 Piece

9 Election Returns 1 Set10 Tally Board 1 Set

11-A Minutes Counting 1 Set of 2 pieces13 Certificate of Votes 10 Pieces

14-A Certificate of Receipt of Forms and Supplies for Counting 1 Set of 2 Pieces

16Envelope for Counted, Excess, Marked, Spoiled, and Invalid Official Ballots

5 Pieces

17, 17-A to-G

Envelopes for Election Returns 1 Set of 8 Pieces

18-A Envelope for Minutes of Counting of Votes 1 Set of 2 Pieces

27, 27-A to-D

Official Receipt of Election Returns 1 Set of 5 Pieces

SUPPLIES

Ball Pen 3 PiecesRubber Band 8 Pieces

Bond Paper (Long) 30 Pieces

Carbon Paper 5 Sheets Sec. 23. Official ballot. - The official ballot shall be of uniform size and color, printed on security paper with distinctive, clear and legible watermarks that will readily distinguish the ballot paper from ordinary paper.

It shall contain a stub and detachable ballot coupon, both of which shall bear the same serial number of the ballot, with space for the thumb mark of the voter on the detachable ballot coupon.

It shall bear the coat-of-aTms of the Republic of the Philippines, the words "Official Ballot", the name of the Post and country in which the election is to be held, the date of the election and the following notice in English: Fill out this ballotsecretly using a ballot secrecy folder. Do not put any distinctive mark on any

part of this ballot .

It shall contain the appropriate spaces for President, Vice President, Senator, and accredited political parties, sectoral party/organization or coalition thereof participating in the party-list system of representation.

ARTICLE VICASTING AND SUBMISSION OF VOTES

Sec. 24. Who are allowed to vote - All overseas voters may vote forPresident, Vice President, Senators and any one (1) of the accredited party/organization or coalition participating under the party-list system of representation. Sec. 25. Period for casting of votes. - Casting of votes shall be for a period of thirty (30) continuous calendar days beginning at 8:00 o'clock in the morning of April 09, 2016, local time of the host country until 7:00 o'clock in the evening of May 09, 2016, Philippine time, inclusive of all established holidays in the Philippines and such other holidays in the host countries.

Except on April 09, 2016 where all Posts are required to open at 8:00 o'clock in the morning, local time of the host country, the Post may adopt a flexible schedule for the operation of the various SBEis; provided that their schedule is continuous and it will not be less than eight (8) hours a day. The voting hours may be ex tended tqking into account the number and influx of voters and the primary tesponsibilities and functions of the members of the SBEis.

If at 7:00 o''clock in the evening of May 09, 2016, Philippine time, there are still voters who have yet to cast their votes within the thirty (30) meters1·adius of the polling place, the voting shall continue to allow the voters to cast their votes without interruption. The Poll Clerk shall, without delay, list the names of said voters. The voters listed shall be called to vote by the Poll Clerk by announcing each nam e three (3) times in the order in which they are listed. Any voter who is not presen t when called shall not be permitted to vote at any later time.

Sec. 26. Place of voting. - Casting of votes shall be done in the designated voting area within the premises of the Post that has jurisdiction over the country where the voter resides, or at any field voting, mobile voting or polling place designated and authorized by the Commission.

ARTICLE VII PERSONAL VOTING

Sec. 27. Personal voting.- A mode of voting where the voters personalJy appear to cast their votes at the Posts or such other voting areas designated by the Commission. Sec 28. Prohibitions on personal voting. -The voter shaJl not:

a. Be accompanied by anybody in accomplishing the ballot, except in the case of an illiterate or person with disability;

b. Speak with anyone while accomplishing the baJlot;c. Intentionally tea r, deface, or erase any printing on the ballot or

put thereon any distinguishing mark;d. Use carbon paper, paraffin paper, camera, or other means for making a

copy of the ballot, or make use of any other means to identify the vote;e. Prepare the ballot without the use of a ballot secrecy folder, or exhibit its

contents to any person; orf. Bring the ballot o utside the designated polling place.

Sec. 29. Rules to be observed during the voting. - During the voting, theSBEJ shall ensure that:

a. No watcher enters the designated voting area for the voters and the area designated for the SBEI, or to mingle and talk with the voters;

b. No voter exhibils the contents of the ballot to any person;c. No ballot is brought outside the designated polling place;

d. No person enters the designated voting area in premises of the Posts carrying any firearm or any deadly weapon, except those expressly authorized by the Commission;

e. The voters cast their ballots in the order of their arrival in the polling place; and

f. There is no crowd ing of voters and disorderly behavior inside the designated polling place.

Sec. 30. Minutes of personal voting. -The SBEI shall accomplish in two (2) copies the Minutes of Personal Voting (OVF No. 11) and record the act or data required therein as they occ ur or become available during the voting. Copies of the OVF No. 11 shall be sealed in separate envelopes to be dish·ibuted as follows:

1. First copy to the Commission; and

2. Second copy to be deposited inside the ballot box.

Sec. 31. Preparation of ballots for voters who are illiterate or with disability. -

a. No voter shall be a llowed to vote as illiterate or with disability unless such fact is so indicated in the OVF No. 2-A or such condition of disability is apparent;

b. A voter who is illiterate or physically unable to prepare the ballot may be assisted in the preparat ion of the ballot by a relative within the fourth civil degree of consanguinity or affinity, or by any person of the voter's confidence who belongs to the same household, or by any member of the SBEI;

c. No person shall assist an illiterate or physically disabled voter more than three (3) times except for the members of the SBEI;

d. The assistor sha ll accomplish the ballot for the illiterate or physically disabled voter using a ballot secrecy folder/voting booth in the presence of the latter; and

e. The assistor shal l be bound in writing and under oath to accomplish the ballot sh·ictly in accordance with the insh·uctions of the voter and not to reveal the contents of the ballot.

Sec. 32. Challenge of illegal voters. - Any voter or watcher may challenge a voter for:

a. Not being a registered overseas voter;

b. Using the name of another; or

c. Suffering from an xisting disqualification.

In such a case, the SBEI shall satisfy itself as to whether or not the ground for the challenge is true by requiring proof of registration, identity or qualification.

Sec. 33. Cha lle 1ge based on certain illegal acts. - Any voter or watcher may challenge any voter on the ground that:

a. The challenged person has received or expects to receive money or anything of value as consideration for the vote, has paid, offered or promised to pay, has conb·ibuted, offered or promised to conh·ibute money or anything of value as consideration for the vote of another;

b. The cha1lenged person has made or received a promise to influence the giving or withholding of any such vote; or

c. The challenged person has made a bet or is interested directly or indirectly in a bel, which depends upon the results of the election.

The challenged person shall take an oath before the SBEI of having not committed any of the ac ts alleged in the challenge and accomplish the Oath of Voter Challenged f o r Ill egal Acts (OVF No. 39). Upon taking such oath, the challenge shall be di smi ssed and the voter shall be allowed to vote. In case the voter refuses to take s u c h oath, the challenge shall be sustained and the voter shall not be allowed to vo te.

Sec. 34. Record of challenges and oaths.- The Third Member of the SBEJ shall record in OVF No. 11 all challenges and oaths taken in connection therewith and the decision of the SBEI in ea c h case.

Sec 35. Prohibition on premature announcement of voting.- No member of the SBEI shall, befo re the termination of the voting, make any announcement as to whether a certain registered vo ter has already voted or not, as to how many have already voted or how many so far have failed to vote, or any other fact tending to show or s h ow in g the state of the polls, nor shall make any statement at any time, except as wi tness before a court or body as to how any person voted .

Sec. 36. Duties of the SBRCG.-

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a. Before the start of the voting period:1. Divide the CLOV and OVF No. 2-A equitably among the SBEJs and

issue the sa me to each SBEI;2. Allocate to ea h SBEI the official ballots and other forms and supplies

based on the r a te of distribution indicated in the Certificate of Receipt of Forms a nd Supplies for Voting by the SBEI (OVF No. 14) and accomplish the blank columns thereof;

3. Assign a corres ponding identification number for each SBEI, if there are more than o ne (1) SBEI in the Post;

4. Place insid e the Ballot Receptacle to be assigned to the SBET the forms and supplies lis ted in OVF No. 14; and

5. Issue the Ballot R eceptacle and assign accomplished OVF No. 14 to the SBEI.

b. Before the start of each voting day:

1. Issu e to th SI3ET its Ballot Receptacle and an unassembled ballot box, if needed; and

2. Require the ST3E to acknowledge receipt of the Ballot Receptacle and the ballot box using a logbook maintained for the purpose.

Sec. 37. Duties of lhe SBEJ.-

a. Before the start of the voting period:

1. Obtain from the SBRCG the Ballot Receptacle and accomplished OVF No. 14;2. Remove all the contents of the Ballot Receptacle to ascertain if the

actual quantity of ballots received is equal to the number of voters assigned to it based on the CLOV;

2.1 If more than the number of voters, return the excess ballots to the SBRCG;2.2 If l ess, obtain from the SBRCG additional ballots;

3. Examine the quantity and serial numbers of official ballots and other accow1table forms and supplies to determine if they are the same as those recorded in the accomplished OVF No. 14;

3.1 Tf the same, sign the Acknowledgment Receipt on OVF No.14;3.2 If not, refer the matter to the SBRCG who shall report to the OFOV;

4. Accomplish OVF No. 11;5. Return all forms and supplies issued inside the Ballot Receptacle;. Seal the lid/ flap of the Ballot Receptacle with a masking tape and

affix their signatures thereon;

. Deliver the sealed Ballot Receptacle to the SBRCG for safekeeping;8. Submit one copy of OVF No. 14 to the SBRCG and retain the other for filing;9. Require the SBRCG to acknowledge receipt of the Ballot Receptacle by

accomplishing the logbook maintained for the purpose;10. Position the CLO in a conspicuous place within the premises of the

polling place; and11. Provide Ballot Secrecy Folders/Voting Booth inside the voting area.

b. Before the stm·t of each voting day in the ptesence of the SBRCG.

1. Indicate in OVF No. 11 the serial number of the ballot box issued by the SBRCG;

2. Break the seal of the Ballot Receptacle;3. Open the Ballot Receptacle;4. Retrieve; determine and segregate the number of pads of bal ots, and

other forms and supplies to be used for the day. The pads of ballots shall be placed in the Envelope for Official Ballots, Counted Offieial BaHots, Excess Ballots, Spoiled Ballots, Torn Half of Unused Ballots, Other Half of Unused Ballots and Invalid Ballots (OVF No. 1 ) and sealed with a paper seal. Thereafter, return the remaining ballots, forms and supplies inside the Ballot Receptacle;

5. Seal the lid/ flap of the Ballot Receptacle again with a masking tape and affix signatures thereon;

. Deposit the Ballot Receptacle with SBRCG for safekeeping;

. Require the SBRCG to acknowledge receipt of the Ballot Receptacle using the logbook maintained for the purpose; and

8. Proceed to the polling place.

c. Before tlze start of voting proper

1. Record the names of the watchers present, elate and time of arrivaC and the party or candidate they represent on OVF No. 11 and require them to affix their signatures thereon;

2. Show to the public and watchers of political parties and candidates, that the seal of the envelope containing the official ballots is intact;

3. Assemble the ba11ot box;4. Exhibit the ballot box to show that it is empty;5. Affix the OVF No. 43 on all side openings of the ballot box in such a

way that no ballot may be removed from or placed inside the ballot box without breaking the seal. The ballot box shall remain sealed until the start of counting;

. Indicate on the ballot box the SBEI number assigned by the SBRCG; and7. Accomplish OVF No. 11.

In succeeding days, before the start of voting, show to the public that theOVF No. 42 of the ballot box js intact.

Sec. 38. Manner of obtaining ballots. -

1. The voter approaches the Poll Clerk, gives name and address together with other personal data.

2. The Poll Clerk shall verify from the OVF No. 2-A if the voter's name isincluded therein.

a. If the voter's name is included, the Poll Clerk shall ascertain the identity through the photo printed in OVF No. 2-A. In the absence of the voter's photo, the voter's valid passport or any identification card bearing the voter's photograph and signature shall be required.

In the absence of any identHication documents, any member of the SB.EI may identify the voter by accomplishing the Oath of an SBEI Member Identifying a Voter (OVF No. 40). Such fact shall be entered in Part V of the OVF No.11 and the accomplished OVF No. 40-B shall be attached thereto.

If the voter's identity still cannot be ascertained by any of the foregoing means, the person shall not be allowed to vote and will be asked to leave the polling place.

b. If the identity of the voter has been ascertained or has not been challenged or having. been challenged the question has been decided in favor of the voter, the. Chairperson shall issue the official ballot to the voter.

c. Enter in the OVF No. 2-A, opposite the name of the voter, the serial number of the ballot as announced by the Chairperson.

3. Before issuing the official ballot, the Chairperson shall

a. Read the serial number of the ballot;

b. Authenticate the ballot by signing at the back of the ballot; Failure to authenticate the ballot shall not invalidate the ballot but the Chairperson shall be liable for an election offense;

c. RequiTe the voter to sign and affix thumbmark on OVF No. 2-A;

d. Detach the ballot coupon and deposit it in the ballot box cmnpartment for spoiled ballots; and

e. Fold the ballot in such a manner that on y the portion where the serial number of the ballot appears; and give the ballot to the voter. Only the Chairperson shall issue the official ballots, and not more than one (1) ballot shall be issued at one time.

Sec. 39. Manner of voting. - Voting shall be conducted in the following manner:

1. The voter shall, using a ballot secrecy folder, fill the ballot by writing the names of the candidates and the name, acronym or raffle number of the party list of choice;

2. After accomplishing the ballot, the voter shall fold it in the same manner as received;

3. The voter deposits the ballot inside the ballot box compartment for valid ballots;

4. The voter then leaves. If during the voting, the contents of the ba11ot box reach three hundred

fifty (350) ballots, the SBEI shall

a. Seal the ballot box slits using the security seal (OVF No. 42);b. Indicate on top of the ballot box the number of ballots contained insid e;c. Submit the bal ot box to the SBRCG;d . Request additional ballot box from the SBRCG; and e. Accomplish OVF No. 11.

Sec. 40. Spoiled ballots. - A ballot shall be considered spoiled in the following instances

1. The serial number of the ballot coupon is not the same as previously issued to the voter; or

2. The ballot coupon has been detached not in the presence of any member of SBEI; or

3. The bal1ot is accidentally defaced by the voter such that it can no longer be possibly used.

Sec 41. Procedures for spoiled ballots.-The Chairperson shall

1. Without unfolding the ballot, write the word "SPOILED" at the back of the ballot;

2. Affix signature below the word "SPOILED";

3. Deposit the spoiled ballot inside the ballot box compartment for spoiled ballots;

4. Indicate the word "SPOILED" in the OVF No. 2-A opposite the name of the voter;

5. Record the se rial number of spoiled ba1lot in OVF No.11;and

. Issue another authenticated ballot to the voter only when the ballot was accidentally defaced by the voter, after announcing the serial number of the second ballot and recording the same in any portion within the space provided for the voter's name and ballot serial number in OVF No. 2-A.

However, in no case shall the replacement of the ballot be made more than once.

Sec. 42.Post voting procedures.- A . At the end of every voting day, I. The SBEI shall

1. Seal the ballot box slits using OVF No. 42;2. Accomplish OVF No. 11;3. Pla ce the unused ballots inside the envelope for official ballots;4. Sec ure from the SBRCG the Ballot Receptacle assigned to it;5. Remove the seal of the Ballot Receptacle and deposit inside the said

Receptacle the OVF No. 11, the envelope containing the unused ballots and other forms and supplies;

. Seal the lid/ flap of the Ballot Receptacle again with a masking tape and aff ix thei r signatures thereon;

. Submit to the SBRCG for safekeeping, the Ballot Receptacle, sealed ballot box containing the accomplished and spoiled ballots, if any, and OVF No. 2-A; and

8. Require the SBR CG to acknowledge receipt of the Ballot Receptacle using the logbook maintained for the purpose.

II. The SBRCG shal

1. Ens ure that the ballot box slits and the Ballot Receptacle are prope rly sealed; and

2. eep the Ballot Receptacle and the ballot box containing the accomplished ballots in a secured place for issuance the next d ay .

B. After voting on the last day of the voting period, the SBEI Chairperson shall

1. Seal Lhe ba ll o t box slits using OVF No. 42;

2. Indicate on top of the ballot box the number of ballots contained therein;

3. Obtain f r om the SBRCG the Ballot Receptacle;

4. Retrieve from the Ballot Receptacle all remaining unused ballots and accomplish OVF No. 11;

5. Tear the unused ballots in half lengthwise in the presence of the other members of SBEI and watchers, if any, and accomplish OVF No. 11;

, Place one half of the torn ballots inside OVF No. 1 and the other half in another OVF No. 16;

. Seal both envelopes with paper seals. These shall remain sealed unless the Commission orders otherwise;

8. Require the Third Member to accomplish OVF No. 11 and place the same in corresponding envelopes. Seal the envelope containing the OVF No. 11 copy for the ballot box. The OVF No. 11 (copy for the Commission) shall not be sealed.

9. Submit, together with the other members of the SBEI, the following to the SBRCG

a. Sealed ballot box with accomplished ballots;b. CLOV;c. OVF No. 2-A;d. OVF No. 11 (Copy for the Commission);e. Ballot Receptacle containing the following

i. OVF No. 16;ii. OVF No. 11 (Copy for the Ballot Box); andiii. Other election forms, supplies and paraphernalia.

ARTICLE VIII POSTAL VOTING

Sec. 43. Postal voting. - A mode of voting where mailing packets, containing the official ballots and other election paraphernalia, are sent directly to the voters or directly to the post from COMELEC.

For mailing packets sent directly to the voter, the voter may either mail or personaiiy deliver the accomplished ballot to the Post.

For mailing packets sent directly to the post, the voter may pick-up the mailing packet from the post or the SBRCG may mail the same to the voter. The voter may either mail or personally deliver the accmnplished ballot to the Post.

Sec. 44. Contents of the mailing packet. - The mailing packet shall contain the following

1. Official Ballot (OVF No. );2. Certified List of Candidates;3. Instructions to Voters;4. Official Ballot Envelope (OVF No. 45); and5. Paper Seals (OVF No. 12).

Sec. 45. Preliminaries to postal voting. - The OFOV shall send, not later than March 24,201 , the following;

1. The mailing packets, either directly to the voters or to the Posts, through the SBRCG;

2. Soft copy of the mailing lists where the serial numbers of the ballots, paper seals and official ballot envelopes assigned to the individual voter are reflected;

3. OVF No. 2-A; and4. Scanned copy of the application form where voter's signature appears,

in the absence of the signature of said voter in OVF No. 2-A.

Sec. 46. Procedures for sending mailing packets to the voters by the

Post.- Upon receipt of the mailing packets, the SBRCG shall

1. Make an inventory of all the mailing packets;2. Verify the addresses of the voters to ensure that the format of the address

is correct. If the format of the address is incorrect, the SBRCG shall revise the format to conform with the prevailing addressing system in the post. For this purpose1 the Post may use a new mailing envelope to repackage the ballots, paper seal, ballot envelope, instructions to voters and certified lists of candidates;

3. Post in conspicuous places in the embassy Iconsulate and in the website of the Post, the names of voters, with insh·uctions as to when, where and how they can claim their ballots; and

4. Inform the voters that their ballots are available for pick-up, or mail the ba1lots directly to the voters.

Sec 4 . Procedures for postal voting.- The voters shall

1. Accomplish personally the ballot by writing the names of the candidates and the name or acronym or raffle number of the party-list group participating in the party-list system of representation, of their choice;

2. Affix their signatures on the ballot coupon which is located on the lower portion of the official ballot;

3. Detach the ballot coupon from the ballot. Then place the ballot coupon inside the Ballot Envelope;

4. Fold the official ballot in such a way that its contents will not be seen and seal it with a paper seal;

5. Place the accomplished ballot inside the Ballot Envelope and seal the same;

. Write their names and affix their signatures on the upper left-hand corner of the Ballot Envelope; Failure to affix their signatures shall invalidate the ballot.

. Return the sealed Ballot Envelope personally or by mail to the Post on or before the day of election. If mailed or delivered personally, it should be received by the Post on or before the end of voting hours on the day of election shall:

Sec. 48. Reception and verification of the ba11ot envelopes.- The SBRCG A. Reception procedures

1. Assign receptacles each for valid ballots, invalid baUots and questionable ballots for each country/territory under its jurisdiction;

2. Receive and stamp on the face of the Ballot Envelope and opposite the name of the voter in the OVF No. 2-A, the date and time of receipt, as it is received:

a. If the Ballot Envelope is received at any time before election day, proceed to the verification procedures.

b. If tl1e Envelope is received on election day but:

i. Before the close of voting hours, proceed to the verification process; or

ii. After the close of voting hours, place the Ballot Envelope inside the receptacle for "Invalid Ballots."

B. Verification procedures shall be done upon receipt of tl1e BallotEnvelopes

1. Ballot Envelopes

Verify if the Ballot Envelope is the official envelope provided by the OFOV. If not, place it in the receptade for ''Invalid Ballots". If it is the official envelope, verify the signature appearing thereon.

2. Signature

Compare the signature of tlie voter on the ballot envelope with that appearing on the OVF No. 2-A or on scanned application form.

a. If the signature is not identical, write "not identical" on the Ballot Envelope and place the same inside the receptacle for "Questionable Ballots";

b. If the signature is identical, open the Ballot Envelope to determine whether it contains the ballot coupon and the official ballot.

c. Tf there is no signature, place the Bal1ot Envelope inside the receptacle for "Invalid Ballots";

3. Ballot Coupon

a. If the ballot coupon is inside the Ballot Envelope, verify if its serial number is the same as that indicated in the OVF No. 2- A. If the same, return the ballot coupon inside the Ballot Envelope and place the same in the receptacle for "Valid Ballotsa. If not, write "not the same seTial number" on the Ballot Envelope, return the ballot coupon inside said envelope, and place the same in the receptacle for "Invalid Ballots".

b. If the ballot coupon is not inside the Ballot Envelope, WTite "ballot coupon is not inside the ballot envelope", and place it inside the receptacle for "Questionable Ballots".

c. If there is no ballot coupon, write ''no ballot coupon" on ballot envelope and place it inside the receptacle for "Invalid Ballots".

4. Close and seal each receptacle at the end of each voting day;

5. On a daily basis during the entire voting period, keep a daily record of the number of Ballot Envelopes received, verified and deposited in each receptacle;

6. Once the number of ballot envelope in each receptacle for valid and questionable ballots reaches two hundred (200), close and seal the receptacle and indicate the number for issuance to the SBEI for counting;

. After the close o voting hours on election day,a. Place a line across the boxes intended for the date and time of

receipt of Ballot Envelopes in OVF No. 2-A;b. Affix their signatures at the bottom of each page of the OVF No. 2-A;c. Request watchers, if available, to affix their signatures thereon.

Sec. 49. Invalid ballots. - The following constitute invalid ballots and shall not be included in the counting:

1. Those not contained in the Ballot Envelopes provided by the Commission;2. Those contained in the Ballot Envelopes but received after the close

of voting hours on election day;

3. Those contained in the Ballot Envelopes, but the envelopes do not bear the signatures of the voters; or

4. Those contained in the Ballot Envelopes where the serial numbers of the ballot coupons are different from the assigned numbers as indicated in OVF No. 2-A.

Sec. 50. Questionable ballots. - The following constitute questionable ballots and shall be subject to verification before counting

1. If the signature in the Ballot Envelope is not identical; or

2. Those contained in the Ballot Envelopes, but the envelopes bear only the names of the voters.

Sec. 51. Returned mailed ballots. - refer to mail packets containing the ballots sent to but not received by the voters and which were forwarded to the Posts where the voters are registered.

Sec. 52. Procedures for returned mailing packets.- The SBRCG shall

1. Upon receipt of the returned mailed ballots, prepare a ist of names of the voters whose mailed ballots have been returned to the Posts. At the end of every voting day, inform the OFOV, through the DFA-OVS, of the names of voters whose mail packets were forwarded to the Post.

2. Post in conspicuous places in the embassy/ consulate and in the website of the Post the list with the insh·uctions as to when, where and

how the voters can claim their returned mailed ballots.

3. Exert efforts to communicate with/locate the voters concerned and if possible, forward the returned mailed ballots to them.

4. Take into custody and keep an inventory of the returned mailed ballots that were not forwarded to the voters.

5. All returned mailed ballots received after the voting the period or were not forwarded to the voters shall be shipped to the OFOV by diplomatic pouch to DFA-OVS within six ( ) months from the day of elections for onward transmittal to OFOV. The ballots contained in the returned mails are deemed cancelled;

. Submit to the OFOV a report prescribed by the, Commission, not later than thirty (30) days from the day of elections.

ARTICLE IX

VOTING BY SEAFARERS

Sec. 53. Voting by seafarers. - A mode of voting by which ship officers and ratings matming ships, including offshore workers, service providers and fishermen, who are registered overseas voters, may cast their ballots during the voting period.

Sec. 54. Procedures. The following voting procedures for seafarers shall be observed:

1. During the voting period, seafarers may vote at any Post adopting personal voting or, in case of postal voting, in any Post with international seaports as identified and recommended by the DFA-OVS;

2. In Post adopting personal voting, seafarers voting shall be conducted by one of the SBEIs handling the voting for land-based voters. For this purpose, said SBEI shall manage two (2) OVF No. 2-A, one (1) for land-based voters and the other one (1) for seafarers.

3. In Posts adopting postal voting, ballots for seafarers shall be distributed proportionately among Posts with identified international seaports. These ballots shall be in custody of the SBRCG of the Post for the entire voting period. The seafarer shall

a. Personally claim the mailing packet at the Post;

b. Accomplish the official ballot contained in mailing packet; and

c. Submit the accomplished ballot to the SBRCG which shall then dispose the ballot in accordance with the procedures on postal voting.

4. The OFOV shall give each post conducting personal voting, and those conducting postal voting with identified international seaports, copies of the OVF No. 2 and OVF No. 2-B for seafarers.

5. For purposes of monitoring and recording, the Post shall, as the case may be, at the end of each voting day

a. Prepare a list of the names of the seafarers who cast their votes; and

b. E-mail the list to OFOV on the same day.

. The OFOV shall, on a daily basis

a. Update its file on seafarers who already voted; and

b. E-mail the updates to all Posts.

. The Posts, upon the receipt of the updates from the OFOV, shall indicate opposite the names of the seafarers in the OVF No. 2-A, the date and place where they voted.

ARTICLE X FIELD VOTING

Sec. 55. Field Voting. Refers to the conduct of voting for a limited period of time outside the Post in place where field registrations were conducted abroad or in such other areas as may be authorized by the Commission or DFA-OVS.

Sec. 5 . Mobile Voting. Refers to the conduct of voting for a limited period of time outside the Post, in connection with the consular outreach program of the DFA, in places authorized by DFA-OVS with prior notice to the Commission.

Sec. 5 . Guidelines. The following guidelines are hereunder provided in the conduct of field/mobile voting.

a. The host government allows such field voting;

b. The conduct of field voting will not compromise the security, integrity and sanctify of the voting process;

c. It will impact upon a significant number of registered overseas voters;

d. Information on the different schedules of field voting shall be widely disseminated by the Post;

e. Voting at the premises of the embassy/consulate will have to be continuing, notwithstanding the field voting that the Post may schedule;

f. For field voting, the Post must submit a written request to the OFOV and must indicate the date, number of estimated overseas voters who will vote during the field voting and the costs. Such requests shall be subject to the approval of the Commission, through the OFOV, provided that such request shall be favourably recommended by the DFA-OVS, and provided further, that the conduct thereof shall be with least expense on the part of the Commission or DFA-OVS;

g. For mobile voting, the Post must submit a written notice to the OFOV and must indicate the date, number of estimated overseas voters who will vote during the mobile voting.

h. The SBEI/SBRCG for field/mobile voting shall be taken from the regular SBEIs/SBRCGs earlier deputized by the Commission, through the OFOV Chairperson.

In cases where the Post has only one (1) set of SBEI/SBRCG, it may recommend to the Commission to deputized additional two (2) personnel who will be deputized as SBEI/SBRCG that will conduct the field/ mobile voting. There shall be no additional honoria for the members of the SBEI/SBRCG, if they are taken from the regualar SBEI/SBRCG;

i. The SBEIs/SBRCGs must bring copies of OVF No. 2 and a template of OVF No.2-A; and

j. The pertinent provisions on personal or postal voting, as t11e case may be, shall be observed.

ARTICLE X I PROVISIONS ON COUNTING

Sec. 58. Counting site.- The counting of votes shall be conducted on site in the country where the votes were actually cast within the premises of the Posts, or in such other places as may be designated by the Commission.

Sec. 59. Determination of number of SBEis to conduct the counting of votes. - Based on the total number of voters who actually voted, the Heads of Posts of their duly authorized representatives shall determine the number of SBEis which will conduct the counting of votes at the rate of, as far as practicable, one (1) SBEI for every three hundred fifty (350) ballots.

For personal voting, the SBEis for voting shall also act as SBEis for counting.

The Post shall, if necessary, activate additional SBEis for counting not later than one day before the last day of voting period. The post shall immediately submit to the Commission, through the OFOV, the names of the members of the additional SBEis and their designations.

Sec. 0. Manner of counting.- The counting of votes shall be conducted pubHcly and without interruption. Unless otherwise ordered by the Commission, the SBEI shall not adjourn or postpone or delay the counting until it has been fully completed.

Sec. 1. Start of counting.- The counting of votes shall start immediately after the dose of voting hours on eJection day.

Sec. 2. Minutes of counting of votes. - The SBET shall accomplish in two (2) copies the Minutes of Counting (OVF No. 11-A) and record the act or data required therein as they occur or become available during the counting.

The SBEI must sign copies of the OVF No,. 11-A, seal in separate envelopes and distribute as follows

a. First copy to the Corrunission; and

b. Second copy to be deposited inside the ballot box.

ARTICLEX IlPRELIMINARIES TO COUNTING

Sec. 63. For personal voting. - Before the start of counting, the SBRCG shalt in the presence of representatives/watchers of political parties and Filipino corrununities, if available:

1. Assign precinct number to the SBEI.

2. Allocate, in accordance with the rate of distribution as indicated in OVF No. 14-A, the accountable forms and supplies to be used in counting.

3. Record in OVF No. 14-A the quantity and serial numbeTs of accountable forms and supplies to be issued to the SBEI.

4. Issue to the SBEI:

a. The ballot box/ es containing the accomplished ballots; and, b. All forms and supplies indicated in OVF No. 14-A.

The SBEI shall:

1. Verify the quantity and serial numbers of accountable forms received from the SBRCG and if correct, sign OVF No. 14-A, otherwise inform the SBRCG of the discrepancy;

2. Record in OVF No.11-A the physical condition of the ballot box.;

3. Proceed to the counting area and open the ballot box;

4. Take out from the ballot box the accomplished ballots;

5. Count the ballots and compare the total number with the number indicated outside of the ballot box;

If the number of ballots exceeds the total number indicated outside of the ballot box, return all the ballots into the ballot box and thoroughly mix the same. The Poll Clerk, with his back to the ballot box, shall publicly draw out as many ballots equal to the excess, place them in the OVF No. 16 and note such fact on OVF No.11-A.

If the number of ballots is less than the total number indicated outside the ballot box, note such fact in OVF No.11-A.

6. Take out the spoiled ballots if any, and the ballot coupons. found inside ballot box compartment for valid ballots and place them inside OVF No. 16, and note such facts in OVF No.11-A;

7. Examine the ballots, whether there are ballots with un-detached ballot coupons. The ballot coupons shall be removed and placed inside OVF No. 16. The number of ballots with un-detached coupons should be indicated in OVF No. 11-A. The ballots shall be included in the pile of valid ballots.

8. Unfold the ballots face down, and form separate piles of one hundred (100) ballots each, held together by rubber bands and proceed to count the ballots in the manner prescribed in these Rules.

Sec. 64. For postal voting.-

A. In the presence of representatives/watchers of political parties andFilipino communities, if any, the SBRCG shall:

1. Allocate in accordance with the rate of dish·ibution indicated in OVF No. 14-A, the accountable forms and supplies to be used by each SBEI in counting.

2. Record using OVF No. 14-A the quantity and serial numbers of accountable forms and supplies to be issued to the SBEI.

3. Assign precinct number to each SBEJ.

4. Open the receptacles for " Valid Ballots" and " Q uestionable Ballots" to rehieve the ballot envelopes.

5. Allocate the ballot envelopes containing " Valid Ballots" and " Q uestionable Ballots" equitably among the SBEis.

6. Place the ballot envelopes in separate ballot boxes, one for " Valid Ballots" and another for " Q uestionable Ballots" .

7. Indicate on each ballot box, the number of ballots it contains.

8. Issue to the SBEI:

a. Ballot boxes containing " Valid Ballots" and " Q uestionableBallot Envelopes" ;

b. OVF No.2-A; and,c. All forms and supplies indicated in OVF No. 14-A.

B. The SBEI, upon receipt of the ballot boxes, shall:

1. Proceed to the room where counting will be conducted;

2. Open first the ballot box containing the "Questionable Ballots";

3. Take out all the envelopes and segregate them according to the type

of " Q uestionable Ballots" as indicated by the SBRCG;

4. Count the envelopes and compare the total number with the number indicated outside of the ballot box.

If the number of envelopes exceeds the total number indicated outside of the ballot box, return all the envelopes containing the ballots into the ballot box and thoroughly mix them. The Poll Clerk, without looking inside the ballot box, shall publicly draw out as many envelopes equal to the excess, place them in the Envelope for Excess Ballots, and note the number of excess envelopes and the action taken in the OVF No.11-A .

If the number of envelopes is less than the total number indicated outside the ballot box, record the number of lacking envelopes in the OVF No.11-A.

5. Proceed to the Verification Process for Questionable Ballots;

A. Verification of the signature of the voter

Determine whether the signature on the ballot envelope is in fact not identical with the signature on OVF No. 2-A or scanned copy of the Application Form of the concerned voter, as the case may be. If the signature is found to be not identical, the word " Invalid" shall be indicated on the face of the ballot envelope. Place the ballot envelope marked " Invalid" inside OVF No. 16.

However, if the signature is identical, verify the baJlot coupon.

B. Verification of the ballot coupon

Open the accomplished ballot to determine whether the ballot coupon is still attached. In case the ballot coupon is still attached to the ballot, remove the ballot coupon, and follow the procedure in verifying its serial number.

If the ballot coupon is not attached to the ballot, write the word " spoiled" diagonally across the face of the ballot. Return the ballot in its envelope and place it inside OVF No. 16.

Spoiled ballots will not be counted.

C. Verification of serial number

1. If the serial number of the ballot coupon is the same as that indicated in OVF No. 2-A, the ballot shaH be included in the pile of valid ballots.

Where the serial number of the ballot coupon attached to the ballot is different from the assigned serial number as indicated in OVF No. 2-A write the word " INVALJD" diagonally across the face of the ballot and returns the same inside the Envelope which shall in turn be placed inside OVF No. 16.

OVF No. 16 shall be sealed and signed by the members of the SBEI, for submission to the SBRCG after the counting.

2. After the verification process, open the ballot box containing the valid ballots inside the envelopes;

3. Retrieve the ballot envelopes from the ballot box;

4. Count the ballot envelopes and compare the total number with the number indicated outside of the ballot box. If the number of ballot envelopes exceeds the total number indicated outside of the ballot box,

return all the envelopes in the ballot box and thoroughly mix them. The Poll Clerk, without looking inside the ballot box, shall publicly draw out as many envelopes equal to the excess, place them in the Envelop for the Excess Ballots, and the note the number of the excess envelopes and the action taken in the OVF No. 11-A;

5. Open the Envelopes and take out the official ballots;

6. Unfold the ballots face down and form separate piles of one hundred (100) ballots each; and

7. Proceed with the counting of ballots.

ARTICLE X IIIPROCEDURE FOR COUNTING

Sec. 65. Manner of counting – The SBEI shall:

1. Clear the tables to be used for counting of all unnecessary writing paraphernalia;

2. The Chairperson, the Poll Clerk and the Third Member shall position themselves in such a way as to give the watchers and the public an unimpeded view of the ballot being read by the Chairperson, as well as of the Overseas Voting Election Returns (OVE No. 9) and Tally Board (OVF No. 10) being simultaneously accomplished by the Poll Clerk and the Third Member, respectively. The watchers and the public shall not touch any of the election documents;

3. The Chairperson shall take the ballots from the first pile one by one and read the names of the candidates voted for and the offices for which they are voted as well as the name/acronym/raffle number of the party, organization or coalition voted for under the party-list system of representation, in the order in which they were written on the ballot;

For this purpose, the ballots cast by overseas voters in one country or territory under the consular jurisdiction of the Post, must be reflected in a separate Election Returns.

4. The Poll Clerk and the Third Member shall record by a vertical line in the election returns and in the tally board, every vote obtained by each candidate and party, organization or coalition participating under the party-list system of representation, as it is read.

Every fifth vote shall be recorded by a diagonal line crossing the previous four vertical lines.

The SBEI shall ensure that the entries on the first copy of the election returns are clearly impressed on the other copies.

5. After finishing the first pile of ballots, add and record the sum of votes obtained by each candidate and the party, organization or coalition participating under the party-list system of representation, immediately after the last tara on the election returns and on the tally board. In case of discrepancy in the total between the election returns and the tally board, a recount shall be made. The ballots shall again be grouped together as before;

6. The same procedure shall be followed with the succeeding piles of ballots.

7. After all the ballots have been counted:

a. The members shall affix their initials, and imprint their thumbmark on the election returns. The thumb marks shall be imprinted only on the first copy of the election returns;

b. Add all the sub-totals; andc. Record, in words and in figures, the total number of votes obtained

by each candidate and by each party, organization or coalition, participating under the party-list system, both in the election returns and the tally board.

8. The members shall accomplish the certification portion of the election returns and tally board;

9. The watchers, if any, shall affix their signatures on every page of the election returns and the imprint of their right thumbmarks on the first copy of the election returns;

10. The Chairperson shall publicly announce the total number of votes received by each candidate for Senator and party, sectoral organization or coalition participating in the party-list system of representation;

11. The Poll Clerk shall then immediately announce the posting of the fourth copy of the said election returns on a wall with sufficient lighting within the premises of the polling place and proceed to post the same in the presence of the other members of the board, the watchers and those present in the polling center.

The copy of the election returns posted on the wall shall be open

for public viewing at any time of the day for forty-eight (48) hours following its posting. Any person may view or capture an image of the election returns by means of any data capturing device such as, but not limited to cameras, at any time of the day for forty-eight (48) hours following its posting.

After the prescribed period for posting, the Chairperson of the SBEI shall collect the posted election returns and take the custody of the same to be produced for image or data capturing as may be requested by any voter or for any lawful purpose as may be ordered by competent authority.

12. The SBEI shall fold each copy of the election returns, seal with a serially numbered paper seal, and place in its corresponding envelope.

13. The counted ballots shall be placed inside OVF No. 16 which shall be closed, signed, and sealed. The tally board, as accomplished and certified by the SBEI, shall be placed inside the ballot box/receptacle together with the envelope containing the counted ballots before the submission to the SBRCG

14. Distribute the envelopes containing the election returns as provided in these Rules.

Sec. 66. Preparation of overseas voting election returns and tally board. 1. The SBEIs shall prepare in their own handwriting the election returns

and the tally board simultaneously with the counting of the votes in their respective counting areas. The election returns shall be prepared in the eight (8) copies.

2. The Chairperson shall strictly ensure that all the following data are entered in the election returns:

a. Name of country/ies where the embassy, consulate or foreign service establishment have consular jurisdiction; and

b. Total number of:i. Ballots received;ii. Ballots found in the ballot box; andiii. Spoiled Ballots

Sec. 67. Alteration and correction in the election returns. – Before the announcement of the results of the election, the SBEI may, on its own, make any correction or alteration in the election returns, provided, that all the members thereof duly initial the corrections or alterations.

After announcement of the results of the election in the polling

place, the SBEI shall not make any alteration or amendment in any of the copies of the election returns.

Sec. 68. Transmission of Results. – Immediately upon the completion

of the counting, the SBEIs shall transmit the results to the SBOC.

ARTICLE X IVAPPRECIATION OF BALLOTS

Sec. 69. Rules for the appreciation of ballots. – In the reading and appreciation of ballots, every ballot shall be presumed to be valid unless there is clear and good reason to justify its rejection. The SBEI shall observe the following rules, bearing in mind that the object of the election is to obtain the expression of the voters’ will:

a. Where only the first name of a candidate or only his/her surname is written the vote for such candidate is valid, if there is no other candidate with the same first name or surname for the same office.

Where the name of a party-list participant is incompletely written or not in the proper order as appearing in the certified list of parties, the vote for such party, if identifiable, is valid if there is no other party using the same.

b. Where only the first name of a candidate is written on the ballot which when read, has a sound similar to the surname of another candidate, the vote shall be counted in favor of the candidate with such surname. If there are two or more candidates with the same full name, first name or surname and one of them is the incumbent, and on the ballot is written only such full name, first name or surname, the vote shall be counted in favor of the incumbent.

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c. In case the candidate is a woman who uses her maiden or married surname or both and there is another candidate with the same surname, a ballot bearing only such surname shall be counted in favor of the candidate who is an incumbent

d. When two or more words are written on the same line on the ballot, all of which are the surnames of two or more candidates, the same shall not be counted for any of the, unless one is surname of an incumbent who has served for at least one year in which case it shall be counted in favor of the latter.

When two or more words are written on different lines on the ballot all of which are the surnames of two or more candidates bearing the same surname for an office for which the law authorizes the election of more than one and there are the same number of such surnames written as there are candidates with that surname, the votes shall be counted in favor of all the candidates bearing the surname.

e. When on the ballot is written a single word which is the first name of a candidate and which is at the same time the surname of his/her opponent, the vote shall be counted in favor of the latter.

f. When two words are written on the ballot, one of which is the first name of a candidate and the other is the surname of his/her opponent, the vote shall be counted for either.

g. A name or surname incorrectly written which, when read, has a sound similar to the name or surname of a candidate when correctly written shall be counted in his/her favor.

A name incorrectly written which, when read, has a sound similar to the name of a party-list participant, when correctly written shall be counted in its favor.

h. When a name of a candidate appears in a space of the ballot for an office for which he is a candidate and in another space for which he is not a candidate, it shall be counted in his/her favor for the office for which he is a candidate and the vote for the office for which he is not a candidate shall be considered as stray, except when it is used as a means to identify the voter, in which case, the whole ballot shall be void.

When the name of a party appears in a space of the ballot for an office other than for the party list, it shall be considered stray but it shall not invalidate the whole ballot except when it is used as a means to identify the voter, in which case, the whole ballot shall be void.

If the word or words written on the appropriate blank on the ballot is the identical name or surname or full name, as the case may be, of two or more candidates for the same office none of whom is an incumbent, the vote shall be counted in favor of that candidate to whose ticket belong all the other candidates voted for in the same ballot for the same constituency.

i. When in a space in the ballot there appears a name of a candidate or party that is erased and another clearly written, the vote is valid for the latter.

j. The erroneous initial of the first name which accompanies the correct surname of a candidate, the erroneous initial of the surname accompanying the correct first name of a candidate, or the erroneous middle initial of the candidates shall not annul the vote in favor of the latter.

k. The fact that there exists another person who is not a candidate with the first name or surname of a candidate shall not prevent the adjudication of the vote of the latter.

l. Ballots which contain prefixes such as Sir , Sr. , Mr. , Datu , Don , Ginoo , Hon. , Gob. , or suffixes like iho , r. , Segundo , are valid.

m. The use of the nicknames and appellations of affection and friendship, if accompanied by the first name or surname of the candidate, does not annul such vote, except when they were used as a means to identify the voter, in which case the whole ballot is invalid: Provided, That if the nickname used is unaccompanied by the name or surname of a candidate and it is the one by which he is generally or popularly known in the locality, the name shall be counted in favor of said candidate if there is no other candidate for the same office with the same nickname.

n. Any vote containing initials only or which is illegible or which does not sufficiently identify the candidate for whom it is intended shall be considered as a stray vote but shall not invalidate the whole ballot.

The initials of a party-list participant shall be considered valid, provided, that they are the same initials as appearing in the certified list of party-list participants.

o. If on the ballot is correctly written the first name of a candidate but with a different surname, or the surname of the candidate is correctly written but with a different first name, the vote shall not be counted in favor of any candidate having such first name and/or surname but the ballot shall be considered valid for each candidates,.

p. Any ballot written with crayon, lead pencil, or in ink, wholly or in part, shall be valid.

q. Where there are two or more candidates/parties voted for in an office for which the law authorizes the election of only one, the vote shall not be counted in favor of any of them, but this shall not affect the validity of other votes therein.

r. If the candidates voted for exceed the number of those to be elected, the ballot is valid, but the votes shall be counted only in favor of the candidates whose names were firstly written by the voter within the space provided for said office in the ballot until the authorized number is covered.

s. Any vote in favor of a person who has not filed a certificate of candidacy or in favor of a candidate for an office for which he did not present himself shall be considered as a stray vote but it shall not invalidate the whole ballot.

A vote cast for a party-list participant not entitled to be voted for shall not be counted.

t. Ballots containing the name of a candidate or party-list participant printed and pasted on a blank space of the ballot or affixed thereto through any mechanical process are totally null and void.

u. Circles, crosses or lines put on the spaces on which the voter has not voted shall be considered as signs to indicate his/her desistance from voting and shall not invalidate the ballot.

v. Unless it should clearly appear that they have been deliberately put by the voter to serve as identification marks, commas, dots, lines, or hyphens between the first name and surname of a candidate, or in other parts of the ballot, traces of the letter T , and other similar ones, the first letters or syllables or names which the voter does not continue, the use of two or more kinds of writing and unintentional or accidental flourishes, strokes or strains, shall not invalidate the ballot.

w. Any ballot which clearly appears to have been filled by two distinct persons before it was deposited in the ballot box during the voting is totally null and void.

x. Any vote cast in favor of a candidate or party who has been disqualified by final judgment shall be considered as stray and shall not be counted but it shall not invalidate the ballot.

y. Ballots wholly written in Arabic in localities where it is of general use are valid. To read them, the SBEI may employ an interpreter who shall take an oath that he shall read the votes correctly.

z. The accidental tearing of perforation of a ballot does not annul it.

aa. Failure to remove the detachable ballot coupon from a ballot does not annul such ballot

bb. When what is written on the ballot is the raffle number of the party list, the same shall be counted in favor of the party list to which such raffle number is assigned.

cc. When what is written on the ballot is the acronym of the part-list or the correct party-list name but with a different raffle number, the acronym or party-list name shall prevail.

dd. When two or more words or numbers are written on the same line on the ballot, all of which are the names, acronyms or raffle number of two or more party-lists, the same shall not be counted for any of them.

ARTICLE X V

POST COUNTING PROCEDURES

Sec. 70. Distribution of overseas voting election returns. – The copies of the election returns contained in each corresponding envelope shall be distributed as follows:

1. The first copy, to the Special Board of Canvassers;

2. The second copy, to Congress, directed to the President of the Senate;

3. The third copy, to the Commission, through the ERSD;

4. The fourth copy, for posting;

5. The fifth copy, to the citizens arm authorized by the Commission to conduct and unofficial count;

6. The sixth copy, to the dominant majority party as determined by the Commission in accordance with law;

7. The seventh copy, to the dominant minority party as determined by the Commission in accordance with law; and

8. The eight copy to be deposited inside the ballot box.

The Chairperson of the SBEI, or any member authorized by the Chairperson, shall submit personally the first, second and third copies of the election returns to the Chairperson of the SBOC who will in turn submit the second and third copies to the Congress and to the Commission, respectively.

The SBEI shall distribute to the representative of the dominant majority party, dominant minority party and citizens arm the fourth, fifth and sixth copies of the election returns. The SBRCG shall keep all unclaimed copies of election returns until claimed by the parties concerned.

The fourth copy shall be posted in the wall where the counting was conducted and shall be open for public viewing at any time of the day for forty-eight (48) hours following its posting. Any person may view or capture an image of the election returns by means of any data capturing device such as, but not limited to cameras, at any time of the day for forty-eight (48) hours following its posting.

Sec. 1. Certificate of Votes. After the announcement of the results of the election, upon request, the SBEI may issue to interested parties a Certificate of Votes (OVF No. 13) duly signed by all the members of the SBEI.

Sec. 72. Disposition of ballots and other documents. – After the termination of the counting of votes and the accomplishment of election returns for the precint.

A. The SBEI shall:

1. Place the following documents inside the ballot box:

a. Envelope containing the election returns, (Copy for the Ballot Box);

b. Envelopes containing counted official ballots, excess/ invalid/spoiled/torn half of unused official ballots;

c. Envelope containing the Minutes of Voting (Copy for the Ballot Box);

d. Envelope containing the Minutes of Counting (Copy for the Ballot Box);

e. Tally Board; and

f. Envelopes used for postal voting

2. Seal the ballot box; and

3. Deposit to the SBRCG the sealed ballot box together with the envelopes containing Minutes of Voting and Minutes of Counting.

B. The SBRCG shall:

1. Keep in a secured place the ballot boxes together with envelopes containing Minutes of Voting and Minutes of Counting (Copies for the Commission) until further instructions from the Commission.

2. After completion of the counting of votes, keep and retain at the Posts all used and unused forms, supplies and paraphernalia as submitted by the SBEIs including unclaimed ballots and returned mails for postal voting, until further instructions from the OFOV.

ARTICLE X VIPRINTING AND TRANSMITTAL OF BALLOTS

AND OTHER ELECTION FORMS

Sec. 73. Printing of ballots and other election forms. – The OFOV shall, through the Committee on Printing of the Commission, cause the printing of all accountable forms including the official ballots for the overseas voters not later than February 01,2016. Non-accountable forms may be downloadable from the OFOV website for reproduction purposes.

Security markings shall be used in the printing of the official ballots and the quantity to be printed shall be based on the total number of registered overseas voter.

The Accredited major political parties, citizens’ arms and accredited Overseas Filipino Workers (OFW) organizations shall be entitles to on representative/watcher at any given time in all phases of printing, preparation of all mailing packets, transmittal thereof, and casting of ballots abroad.

ARTICLE X VII

ELECTION OFFENSES/ PROHIBITED ACTS

Sec. 4. Election offenses/ prohibited acts.

1. Under Sec. 261 of B.P. 881

a. Vote-buying and vote-selling. –

1. Any person who gives, offers or promises money or anything of value, gives or promises any office or employment, franchise or grant, public or private, or makes or offers to make an expenditure, directly or indirectly, or cause an expenditure to be made to any person, association, or corporation, entity, or community in order to induce anyone or the public in general to vote for or against any candidate or withhold his vote in the election, or to vote for or against any aspirant for the nomination or choice of a candidate in a convention or similar selection process of a political party,

2. Any person, association, corporation, group or community who solicits or receives, directly or indirectly, any expenditure or promise of any office or employment, public or private for any of the foregoing considerations.

b. Conspiracy to bribe voters. – Two or more persons, whether candidates or not, who come to an agreement concerning the commission of any violation of paragraph (a) of this section and decide to commit it.

c. Wagering upon result of election. – Any person who bets or wagers upon the outcome of, or any contingency connect with an election. Any money or thing of value or deposit of money or thing of value situated anywhere in the Philippines put as such bet or wager shall be forfeited to the government.

d. Coercion of subordinates.-

1. Any public officer, or any officer of any public or private corporation or association, or any head, superior, or administrator of any religious organization, or any employer or land-owner who coerces or intimidates or compels, or in any manner influence, directly or indirectly, any of his subordinates or members or parishioners or employees or house helpers, tenants, overseers, farm helpers, tillers, or lease holders to aid, campaign or vote for or against any candidate or any aspirant for the nomination or selection of candidates.

2. Any public officer or any officer of any commercial, industrial, agricultural, economic, or social enterprise or public or private corporation or association, or any head, superior or administrator of any religious organization, or any employer or landowner who dismisses or threatens to dismiss, punishes or threatens to punish by reducing his salary, wage or compensation, or by demotion, transfer, suspension , separation, excommunication, ejectment, or causing him annoyance in the performance of his job or in his membership, any subordinate member of affiliate, parishioner, employee or house helper, tenant, overseer, farm helper, tiller, or lease holder, for disobeying or not complying with any of the acts ordered by the former to aid, campaign or vote for or against any candidate, or any aspirant for the nomination or selection of candidates.

e. Threats, intimidation, terrorism, use of fraudulent device or other forms of coercion. – Any person who, directly or indirectly, threatens, intimidates or actually causes, inflicts or produces any violence, injury, punishment, damage, loss, or disadvantage upon any person or persons or that of the immediate members of his family, his honor or property, or uses any fraudulent device or scheme to compel or induce the registration or refraining from registration of any voter, or the participation in a campaign or refraining or desistance from any campaign, or the casting of any vote or omission to vote, or any promise of such registration, campaign, vote, or omission therefrom.

f. Coercion of election officials and employees. Any person who, directly or indirectly, threatens, intimidates, terrorizes or coerces any election official or employee in the performance of his election functions or duties.

g. Appointment of new employees, creation of new position, promotion, or giving salary increases. During the period of forty-five days before a regular election and thirty dats before a special election,

1. Any head, official or appointing officer of a government office, agency or instrumentality, whether national or local, including government-owned or controlled corporations, who appoints or hires any new employee, whether provisional, temporary or casual, or creates and fills any new position, except upon prior authority of the Commission. The Commission shall not grant the authority sought unless, it is satisfied that the position to be filled is essential to the proper functioning of the office or agency concerned, and that the position shall not be filler in a manner that may influence the election.

As an exception to the foregoing provisions, a new employee may be appointed in case of urgent need: Provided, however, That notice of the appointment shall be given to the Commission within three days from the date of the appointment. Any appointment or hiring in violation of this provision shall be null and void.

2. Any government official who promotes, or gives any increase of salary or remuneration or privilege to any government official or employee,

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including those in government-owned or controlled corporations

h. Transfer of officers and employees in the civil service. Any public official who makes or causes any transfer or detail whatever of any officer or employee in the civil service including public school teachers, within the election period except upon prior approval of the Commission.

i. Intervention of public officers and employees.-Any officer or employee in the civil service, except those holding political offices; any office, employee, or member or the Armed Forces of the Philippines, or any police force, special forces, home defense forces, barangay self- defense units and all other para-military units that now exist or which may hereafter be organized who, directly or indirectly, intervenes in any election campaign or engages in any partisan political activity, except to vote or to preserve public order, if he is peace officer.

j. Undue influence. It is unlawful for any person to promise any office or employment, public or private, or to make or offer to make an expenditure, directly or indirectly, or to cause an expenditure to be made to any person, association, corporation or entity, which may induce to any person, association, corporation or entity, which may induce anyone or the public in general either to vote or withhold his vote, or to vote for or against any candidate in any election or any aspirant for the nomination or selection of an official candidate in a convention of a political party. It is likewise unlawful for any person, association, corporation or community, to solicit or receive, directly or indirectly, any expenditure or promise or any office, or employment, public or private, for any of the foregoing considerations.

k. Unlawful electioneering. It is unlawful to solicit votes or undertake any propaganda on the day of registration before the board of election inspectors and on the day of election, for or against any candidates or any political party within the polling place and with a radius of thirty meters thereof.

l. Prohibition against dismissal of employees, laborers, or tenants. No employee or laborer shall be dismissed, nor a tenant be ejected from his landholding for refusing or failing to vote for any candidates of his employer or landowner. Any employee, laborer or tenant so dismissed or ejected shall be reinstated and the salary or wage of the employee or laborer, or the share of the harvest of the tenant, shall be restored to the aggrieved party upon application to the proper court.

m. Appointment or use of special policemen, special agents, confidential agents or the like. During the campaign period, on the day before and on election day, any appointing authority who appoints or any person who utilizes the services of special policemen, special agents, confidential agents or persons performing similar functions; persons previously appointed as special policeman, special agents, confidential agents or persons performing similar functions who continue acting as such, and those who fail to turn over their firearms, uniforms, insignias and other badges of authority to the proper officer who issued the sane.

At the start of the aforementioned period, the barangay chairman,municipal mayor, city mayor, provincial governor, or any appointing authority shall submit to the Commission a complete list of all special policemen, special agents, confidential agents or persons performing similar functions in the employ of their respective political subdivisions, with such particulars as the Commission may require.

n. Illegal release of prisoners before and after election. The Director of the Bureau of Prisons, any provincial warden, the keeper of the jail or the person or persons required by law to keep prisoners in their custody who illegally orders or allows any prisoner detained in the national penitentiary, or the provincial, city or municipal, city or municipal jail to leave the premises thereof sixty days before and thirty days after the election. The municipal or city warden, the provincial warden, the keeper of the jail or the person or persons required by law to keep prisoners in their custody shall post in three conspicuous public places a list of the prisoners or detention prisoners under their care. Detention prisoners must be categorized as such.

o. Use of public funds, money deposited in trust, equipment, facilities owned or controlled by the government for an election campaign. Any person who uses under any guise whatsoever, directly or indirectly, 1) public funds or money deposited with, or held in trust by, public financing institutions or by government offices, banks or agencies; 2) any operated by the Government or by its divisions, sub-divisions, agencies or instrumentalities, including government-owned or controlled corporations, or by the Armed Forces of the Philippines; 3) any equipment, vehicle, facility, apparatus, or paraphernalia owned by the government or by its political subdivisions, agencies including government-owned or controlled corporations, or by the Armed Forces of the Philippines for any election campaign on for any partisan political activity.

p. Deadly weapons. Any person who carries any deadly weapon in the polling place and within a radius of one hundred meters thereof during the days and hours fixed by law for the registration of voters in the polling place, voting, counting of votes, or preparation of the election returns. However, in cases of affray turmoil, or disorder, any peace officer or public officer authorized by the Commission to supervise the election is entitled to carry firearms or any other weapon for the purpose of preserving order and enforcing the law.

q. Carrying firearms outside residence or place of business. Any person who, although possessing a permit to carry firearms, carries any firearms outside his residence or place of business during the election period, unless authorized in writing by the Commission; Provided, that a motor vehicle, water or air craft shall not be considered a residence or place of business or extension hereof.

This prohibition shall not apply to cashiers and disbursing officers while in the performance of their duties or to persons who by nature of their official duties, profession, business or occupation habitually carry large sums of money or valuables

r. Use of armored land, water or air craft. Any person who uses during the campaign period, on the day before and on election day, any armored land, water or air craft, provided with any temporary or permanent equipment or any other device or contraption for the mounting or installation of cannons, machine guns and other similar high caliber firearms, including military type tanks, half trucks, scout trucks, armored trucks, of any make or model, whether new, reconditioned, rebuilt or remodeled Provided, That banking or financial institutions and all Business firms may use not more than two armored vehicles strictly for, and limited to, the purpose of transporting cash, gold bullion or other valuables in connection with their business from and to their place of business, upon previous authority of the Commission.

s. Wearing of uniforms and bearing arms. During the campaign period, on the day before and on election day, any member of security of police organization of government agencies, commissions, councils, bureaus, offices, or government-owned or controlled corporations, or privately-owned or operated security, investigative, protective or intelligence agencies, who wears his uniform or uses his insignia, decorations or regalia, or bears arms outside the immediate vicinity of his place of work Provided, That this prohibition shall not apply when said member is in pursuit of a person who has committed or is committing a crime in the premises he is guarding or when escorting or providing security for the transport of payrolls deposits, or other valuables or when guarding the residence of private persons or when guarding private residences, buildings or offices Provide, further, That in the last case prior written approval of the Commission shall be obtained. The Commission shall decide all applications for authority under this paragraph within fifteen days from the date of the filing of such application.

During the same period, and ending thirty days thereafter any member of the Armed Forces of the Philippines, special, forces, home defense forces, barangay self-defense units and all other para-military units that now exist or which may hereafter be organized who wears his uniform or bears arms outside the camp, garrison or barracks to which he is assigned or detailed or outside their homes, in case of members of para-military units, unless 1) The president of the Philippines shall have given previous authority therefore, and the Commission notifies thereof in writing, or 2) the Commission authorizes him to do so, which authority it shall give only when necessary to assist it in maintaining free, orderly and honest elections, and only after notice and hearing. All personnel of the Armed Forces authorized by the President or the Commission to bear arms or wear their uniforms outside their camps and all police and peace officers shall bear their true name, rank serial number, if any, stitched in block letters on a white background on the left breast of their uniform, in letters and numbers of a clearly legible design at least two centimeters tall, which shall at all times remain visible and uncovered.

During the election period, whenever the Commission finds it necessary for the promotion of free, orderly, honest and peaceful elections in a specific area, it shall confiscate or order the confiscation of firearms of any member or members of the Armed Forces of the Philippines, police forces, home defense forces, barangay self-defense units, and all other para-military units that now exist, or which may hereafter be organized, or any member or members of the security or police organization, government ministries, commissions, councils, bureaus, offices, instrumentalities, or government-owned or controlled corporations and other subsidiaries, or of any member or members of privately owned or operated security, investigative, protective or intelligence agencies performing identical or similar functions.

t. Policemen and provincial guards acting as bodyguards or security guards. During the campaign period, on the day before and on election day, any member of the city or municipal police force, any provincial or sub-provincial guard, any member of the Armed Forces of the Philippines, special forces, home defense forces, barangay self-defense units and all other para-military units that now exist or which may hereafter be organized who acts as bodyguard or security guard of any public official, candidate or any other person, and any of the letter who utilizes the services of the former as bodyguard or security guard

Provided, that, after due notice and hearing, when the life and security of a candidate is in jeopardy, the Commission is empowered to assign at the candidate s choice, any member of the Philippine Constabulary or the police force of any municipality within the province to act as his bodyguard or security guard in a number to be determined by the Commission but not to exceed three per candidate Provided, however, that when the circumstances require immediate action, Commission may issue a temporary order allowing the assignment of any member of the Philippine Constabulary or the local police force to act as bodyguard or security guard of the candidate, subject to confirmation or revocation.

u. Organization or maintenance of reaction forces, strike forces, or other similar forces. -Any person who organizes or maintains a reaction force, strike force or similar force during the election period.

The heads of all reaction forces, strike forces, or similar forces shall, not later than forty-five days before the election, submit to the Commission a complete list of all members thereof with such particulars as the Commission may require.

v. Prohibition against, disbursement or expenditure of public funds. Any public official or employee including barangay officials and those of government-owned or controlled corporations and their subsidiaries, who, during forty-five days before a regular election and thirty days before a special election, releases, disburses or expends any public funds for

1. Any and all kinds of public works, except the following

a. Maintenance of existing and/or completed public works project Provided, that not more than the average number of laborers or employees already employed therein during the six-month period immediately prior to the beginning of the forty-five day period before election day shall be permitted to work during such time Provided, further, that no additional laborers shall be employed for maintenance work within the said period of forty-five days;

b. Work undertaken by contract through public bidding held, or by negotiated contract awarded, before the forty-five day period before election Provided, that work for the purpose of this section undertaken under the so-called takay or paquiao system shall not be considered as work by contract;

c. Payment for the usual cost of preparation for working drawings, specifications, bills of materials, estimates, and other procedures preparatory to actual construction including the purchase of materials and equipment, and all incidental expenses for wages of watchmen and other laborers employed for such work in the central office and field storehouses before the beginning of such period Provided, that the number of such laborers shall not be increased over the hired when the project or projects were commenced; and

d. Emergency work necessitated by the occurrence of a public calamity, but such work shall be limited to the restoration of the damaged facility.

2. The Ministry of Social Services and Development and any other office in other ministries of the government performing functions similar to said ministry, except for salaries of personnel, and for such other routine and normal expenses, and for such other expenses as the Commission may authorize after due notice and hearing. Should a calamity or disaster occur, all releases normally or usually coursed through the said ministries and offices of other ministries shall be turned over to, and administered and disbursed by, the Philippine National Red Cross, subject to the supervision of the Commission on Audit or its representatives, and no candidate or his or her spouse or member of his family within the second civil degree of affinity or consanguinity shall participate, directly or indirectly, in the distribution of any relief or other goods to the victims of the calamity or disaster; and

3. The Ministry of Human Settlements and any other office in any other ministry of the government performing functions similar to said ministry, except for salaries of personnel and for such other necessary administrative or other expenses as the Commission may authorize after due notice and hearing.

w. Prohibition against construction of public works, delivery of materials for public works and issuance of treasury warrants and similar devices. During the period of forty-five days preceding a regular election and thirty days before a special election, any person who a) undertakes the construction of any public works, except for projects or works exempted in the preceding paragraph; or b) issues, uses or avails of treasury warrants or any device undertaking future delivery of money, goods or other things of value chargeable against public funds.

x. Suspension of elective provincial, city, municipal or barangay officer. The provisions of law to the contrary notwithstanding during the election period, any public official who suspends, without prior approval of the Commission, any elective provincial, city, municipal or barangay officer, unless said suspension will be for purposes of applying the Anti-Graft and Corrupt Practices Act in relation to the suspension and removal of elective officials; in which case the provisions of this section shall be inapplicable.

y. On voting

1. Any person who votes more than one in the same election, or who, not being a registered voter, votes in an election.

2. Any person who votes in substitution for another whether with or without the latter’ s knowledge and/or consent.

3. Any person who, not being illiterate or physically disabled, allows his ballot to be prepared by another, or any person who prepares the ballot of another who is not illiterate or physically disabled, with or without the latter’ s knowledge and/or consent.

4. Any person who avails himself of any means of scheme to discover the contents of the ballot of a voter who is preparing or casting his vote or who has just voted.

5. Any voter who, in the course of voting, uses a ballot other than the one given by the board of election inspectors or has in his possession more than one official ballot.

. Any person who places under arrest or detains a voter without lawful cause, or molests him in such a manner as to obstruct or prevent him from going to the polling place to cast his vote or from returning home after casting his vote, or to compel him to reveal how he voted.

. Any member of the board of election inspectors charges with the duty of reading the ballot during the counting of votes who deliberately omits to read the vote duly written on the ballot, or misreads the vote actually written thereon or reads the name of a candidate where no name is written on the ballot.

8. Any member of the board of election inspectors charged with the duty of tallying the votes in the tally board or sheet, election returns or other prescribed from who deliberately fails to record a vote therein or records erroneously the votes as read, or records a vote where no such vote has been read by the chairman.

9. Any member of a board of election inspectors who has made possible the casting of more values than there are registered voters.

10. Any person who, for the purpose of disrupting or obstructing the election process or causing confusion among the voters, propagates false and alarming reports or information or transmits or circulates false orders, directives or messages regarding any matter relaying to the printing of official ballots, the postponement of the election, the transfer or polling place or the general conduct of the election.

11. Any person who, without legal authority, destroys, substitutes or takes away from the possession of those having legal custody thereof, or from the place where they are legally deposited, any election form or document or ballot box which contains official ballots or other documents used in the election.

12. Any person having legal custody of the ballot box containing the official ballots used in the election who opens or destroys said box or removes or destroys its contents without or against the order of the Commission or who, through his negligence, enables any person to commit any of the aforementioned acts, or takes away said ballot box from his custody.

13. Any member of the board of election inspectors who knowingly uses ballots other than the official ballots, except in those cases where the use of emergency ballots is authorized.

14. Any public official who neglects or fails to properly preserve or account for any ballot box, documents and forms received by him and kept under his custody.

15. Any person who reveals the contents of the ballot of an illiterate or disabled voter whom he assisted in preparing a ballot.

1 . Any person who, without authority, transfers the location of a polling place.

1 . Any person who, without authority, prints or causes the printing of any ballot or election returns that appears as official ballots or election returns or who distributes or causes the same to be distributed for use in the election, whether or not they are actually used.

18. Any person who, without authority, keeps, uses or carries out or causes to be kept, used or carried out, any official ballot or election returns or printed proof thereof, type-form mould, electro-type printing plates and any other plate, numbering machines and other printing paraphernalia being used in connection with the printing of office ballots or election returns.

19. Any official or employee of any printing establishment or of the Commission or any member of the committee in charge of the printing

BusinessMirror www.businessmirror.com.phFriday, January 29, 2016

of official ballots or election returns who causes official ballots or election returns to be printed in qualities exceeding those authorized by the Commission or who distributes, delivers, or in any manner disposes of or causes to be distributed, delivered, or disposed of, any official ballot or election returns to any person or persons not authorized by law or by the Commission to receive or keep official ballots or election returns or who sends or causes them to be sent to any place not designated by law or by the Commission.

20. Any person who, through any act, means or device, violates the integrity of any official ballot or election returns before or after they are used in the election.

21. Any person who removes, tears, defaces or destroys any certified list of candidates posted inside the voting booths during the hours of voting.

22. Any person who holds or causes the holding of an election on any other day than that fixed by law or by the Commission, or stops any election being legally held.

23. Any person who deliberately blurs his fingerprints in the voting record.

(bb) Common to all boards of election inspectors and boards of canvassers

1. Any member of any board of election inspectors or board of canvassers who deliberately absents himself from the meetings of said body for the purpose of obstructing or delaying the performance of its duties of functions.

2. Any member of any board of election inspectors or board of canvassers who, without justifiable reason, refuses to sign and certify any election from required by this Code or prescribed by the Commission although he was present during the meeting of the said body.

3. Any person who, being ineligible for appointment as member of any board of election inspectors or board of canvassers, accepts an appointment to said body, assumes office, and actually serves as a member thereof, or any of public officer or any person acting in his behalf who appoints such ineligible person knowing him to be ineligible.

4. Any person who, in the presence or within the hearing of any board of election inspectors or board of canvassers during any of its meetings, conducts himself in such a disorderly manner as to interrupt or disrupt the work or proceedings to the end of preventing said body form performing its functions, either partly or totally.

5. Any public official or person acting in his behalf who relieves any member of any board of election inspectors or board of canvassers or who changes or causes the change of the assignments of any member of said board of election inspectors or board of canvassers without authority of the Commission.

(cc) On candidacy and campaign

1. Any political party which holds political conventions or meetings to nominate its official candidates earlier that the period fixed in this Code.

2. Any person who abstracts, destroys or cancels any certificate of candidacy duly filed and which has not been cancelled upon order of the Commission.

3. Any person who misleads the board of election inspectors by submitting ant false or spurious certificate of candidacy or document to the prejudice of a candidate.

4. Any person who, being authorized to receive certificates of candidacy, receives any certificate of candidacy outside the period for filing the same and makes it appear that said certificate of candidacy was files on time; or any person who, by means of fraud, threat, intimidation, terrorism or coercion, causes or compels the commission of said act.

5. Any person who, by any device or means, jams, obstructs or interferes with a radio or television broadcast of any lawful political program.

. Any person who solicits votes or undertakes any propaganda, on the day of election, for or against any candidate or any political party within the polling place or within a radius of thirty meters thereof.

(dd) Other prohibitions

1. Any person who sells, furnishes, offers, buys, serves or takes intoxicating liquor on the days fixed by law for the registration of voters in the polling place, or on the day before the election or on election day Provided, that hotels and other establishments duly certified by the Ministry of Tourism as tourist oriented and habitually in the business of catering to foreign tourists may be exempted for justifiable reasons upon prior authority of the Commission Provided, further, that foreign tourists taking intoxicating liquor in said authorized hotels or establishments are exempted from the provisions of this subparagraph.

2. Any person who opens in any polling place or within a radius of thirty meters thereof on election day and during the counting of votes, booths or stalls of any kind for the sale, dispensing or display of wares, merchandise or refreshments, whether solid or liquid, or any other purposes.

3. Any person who holds on election day, fairs, cockfights, boxing, horse races, jai-alai or any other similar sports.

4. Refusal to carry election mail matter. Any operator or employee of a public utility or transportation company operating under a certificate of public convenience, including government-owned or controlled postal service or its employees or deputized agents who refuse to carry official election mail matters free of charge during the election period. In addition to the penalty prescribed herein, such refusal shall constitute a ground for cancellation or revocation of certificate of public convenience or franchise.

5. Prohibition against discrimination in the sale of air time. Any person who operates a radio or television station who without justifiable cause discriminates against any political party, coalition or aggroupment of parties or any candidate in the sale of air time. In addition to the penalty prescribed herein, such refusal shall constitute a ground for cancellation or renocation of the franchise.

II. Under R.R. 9189 Overseas Absentee Voting Act of 2003 , as amended

1. For any officer or employee of the Philippine government to influence or attempt to influence any person covered by the Overseas Absentee Voting Act of 2003 as amended to vote, or not to vote, for a particular candidate. Nothing in this Act shall be deemed to prohibit free discussion regarding politics or candidates for public office;

2. For any person to

a. Deprive another of any rights secured in the Overseas Voting Act of 2003 as amended;

b. Give false information as to one s name, address, or period of residence for the purposes of establishing the eligibility or ineligibility to register or vote under the Overseas Voting Act of 2003 as amended;

c. Conspire with another person for the purpose of encouraging the giving of false information in order to establish the eligibility or ineligibility of any individual to register or vote under the Overseas Voting Act of 2003 as amended;

d. Pay, or offer to pay, or to accept payment either for application for registration, or for voting;

3. For any person to steal, conceal, alter, destroy, mutilate, manipulate, or in any way, tamper with the mail containing the ballots for overseas voters, the ballot, the election returns, or any record, document or paper required for purposes of the Overseas Voting Act of 2003 as amended.

4. For any deputized agent to refuse without justifiable ground, to serve or continue serving, or to comply with one s sworn duties after acceptance of the deputization;

5. For any public officer or employee or accredited or deputized organization or association to cause the preparation, printing, distribution or posting of information or material, without the prior approval of the Commission;

. For any public officer or employee to cause the transfer, promotion, extension, recall of any member of the Foreign Service Corps, including members of attached agencies, or otherwise cause the movement of any such member from the current post or position on (1) year before and three (3) months after the day of elections, without securing the prior approval of the Commission;

. For any person who, after being deputized by the Commission to undertake activities in connection with the implementation of the Overseas Voting Act of 2003 as amended shall campaign for or assist, in whatever manner, candidates in the elections;

8. For any person to engage in partisan political activity abroad during the thirty (30)-day overseas voting period.

9. For any person who is not a citizen of the Philippines to participate, by word or deed, directly or indirectly through qualified organizations/associations, in any manner and at any stage of the Philippine political process abroad, including participation in the campaign and elections.

The provision of existing laws to the contrary notwithstanding, and with due to regard to the Principle of Double Criminality, the prohibited acts described in this section are electoral offenses and shall be punishable in the Philippines.

III. ELECTORAL SABOTAGE The act or offenses committed in any of the following instances shall fall under the category of electoral sabotage

1. When the tampering, increase and/or decrease of votes perpetrated or the refusal to credit the correct votes or to deduct tampered votes, is/are committed in the election of a national elective office which is voted upon nationwide and the tampering, increase and/or decrease votes, refusal to credit the correct votes or to deduct tampered votes, shall adversely

affect the results of the election to the said national office to the extent that losing candidate/s is/are made to appear the winner/s;

2. Regardless of the elective office involved, when the tampering, increase and/or decrease of votes committed or the refusal to credit the correct votes or to deduct tampered votes perpetrated, is accomplished in a single election document or in the transposition of the figures/results from one election document to another and involved in the said tampering increase and/or decrease or refusal to credit correct votes or deduct tampered votes exceed five thousand (5,000) votes, and that the same adversely affects the true results of the election; and

3. Any and all other forms or tampering increase/s and/or decrease/s of votes perpetuated or in cases of refusal to credit the correct votes or deduct the tampered votes, where the total votes involved exceed ten thousand (10,000) votes.

Any and all other persons or individuals determined to be in conspiracy or in connivance with the members of the SBEIs or SBOCs involved, shall be meted the same penalty of life imprisonment.

Sec. 5. Penalties. Any person found guilty of committing any of the prohibited acts enumerated in the immediately preceding Sections, except those enumerated in paragraphs III of Section 4, shall be punished with imprisonment of not less than one (1) year but not more than six ( ) years and shall not be subject to probation. In addition, the guilty party shall be sentenced to suffer disqualification to hold public office and deprivation of the right of suffrage.

The penalty of prison mayor in its minimum period shall be imposed upon any person found guilty of tampering with the ballot, the mail containing the ballots for overseas voters, the Overseas Voting Election Returns, including the destruction, mutilation and manipulation thereof, without the benefit of the operation of the Indeterminate Sentence Law. If the offender is a public officer or a candidate, the penalty shall be prison mayor in its maximum period. In addition, the offender shall be sentenced to suffer perpetual disqualification to hold public office and deprivation of his/her right to vote.

ARTICLE X VIIIROLE OF GOVERNMENT AGENCIES

Sec. . Assistance from government agencies. a) All government offices, particularly the Department of Foreign Affairs, Department of Labor Employment, Department of Transportation and Communications, Philippine Postal Corporation, Philippine Overseas Employment Administration, Overseas Worker s Welfare Administration, Commission on Overseas Filipinos, the Foreign Service Institute, the Social Security System and other government agencies concerned with the welfare of Filipino overseas shall, to the extent compatible with their primary responsibilities, assist and give the Commission the fullest support in the implementation of the overseas Voting Act of 2003. B) The One Country Team Approach provided under Republic Act No. 8024 (Migrant Workers and Overseas Filipinos act of 1995), as enunciated under Executive Order No. 4, series of 1993, shall apply in the implementation of the Overseas Voting Act of 2003 insofar as it does not conflict with the constitutional mandate of the commission to have exclusive charge of the enforcement, administration and implementation of elections laws.

ARTICLE X IXCONCLUDING PROVISIONS

Sec. . Access to official records and documents. Subject to the pertinent provisions of the overseas Absentee Voting Act of 2003 as amended and these Rules, any person shall have the right to access and/or copy at his/her expense all registration records, voters lists and other official records and documents, subject to payment of prescribed charges.

Sec. 8. Security measures to safeguard the secrecy and sanctity of the ballots. In the interest of transparency, all necessary and practicable measures shall be adopted to allow representation of the candidates, accredited major political parties, accredited citizens arms and non-government organizations to assist, and observe in all stages of the electoral exercise to prevent any and all forms of fraud and coercion and ensure free, honest, orderly peaceful and credible election.

Sec. 9. Applicability of other election laws. The pertinent provisions of the Omnibus Election Code, as amended and other election laws, which are not in conflict with the provisions of the Overseas Voting Act of 2003, as amended, shall remain in full force, and shall have suppletory application of these Rules.

Sec. 80. Enforcement and administration by the Commission. The Commission, for the purpose of ensuring honest, orderly,

peaceful and free elections abroad, shall have exclusive charge of the enforcement, administration and implementation of the Overseas Voting of 2003 as amended.

Sec. 81. Dissemination. The Education and Information Department shall cause the publication of this Resolution in two (2) daily newspapers of general circulation in the Philippines and to furnish the Department of Foreign Affairs, Department of Labor and Employment, department of Transportation and Communications, Philippine Postal Corporation, Philippine Overseas Employment Administration, Overseas Worker s Welfare Administration, Commission on Overseas Filipinos, the foreign Service Institute, the Social Security System and other government agencies concerned with the welfare of Filipinos overseas.

Sec. 82. Effectively. These General Instructions shall take effect immediately after publication in two (2) newspapers of general circulation in the Philippines.

SO ORDERED.

A12

J . ANDRES D. BAUTISTAChairperson

CHRISTIAN ROBERT S. LIM Commissioner

AL A. PARREÑ OCommissioner

LUIE TITO F. GUIACommissioner

ARTHUR D. LIMCommissioner

MA. ROWENA AMELIA V. GUAZ ONCommissioner

SHERIFF M. ABASCommissioner

CHRISTIAN ROBERT S. LIM

AL A. PARREÑ O

LUIE TITO F. GUIACommissioner

ARTHUR D. LIM

MA. ROWENA AMELIA V. GUAZ ON

J . ANDRES D. BAUTISTAChairperson

c. Unprofessional activities shall not be tolerated. Any media representative found to be engaging in unprofessional activities shall have their Media Cards immediately revoked, Unprofessional activities include:

1. Any behavior deemed disruptive of the conduct of voting, counting or canvassing, such as, but not limited to, conducting interviews inside the polling place or canvassing center;

2. Engaging in partisan political activities;

3. Any behavior intended to unduly influence the choice of voters, such as, but not limited to, directly trying to sway the voters speak for against a candidate;

4. Distributing campaign materials; and

5. Any behavior deemed unlawful.

Sec. 11. Effectivity. This Resolution shall take effect on the seventh (7th) day after its publication in two (2) daily newspaper of general circulation.

Sec. 12. Dissemination and publication. The Office for Overseas Voting shall furnish the Office of the President, the Office of the Press Secretary, the Department of Foreign Affairs, the Philippines Information Agency, and all mass media organizations copies of this Resolution.

The Department of Foreign Affairs shall furnish copies thereof to all foreign embassies and consulates.

The Education and Information Department shall cause the publication of this Resolution.

SO ORDERED.

Re p u b l i c o f t h e Ph i l i p p i n e s COMMISSIONS ON ELECTIONS

NATIONAL AND LOVCAL ELECTIONS Ma y 9, 2016

OVERSEAS VOTING

INFORMATION SHEET (Me d i a Ac c r e d i t a t i o n )

(Please type or print)

Name:_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

Name (Surname) (Middle)

Residence Address:_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

Date of birth Place of birth

Status: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Nationality:_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

Employer:_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

Organization

Business Address:_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

Tel. No. Mobile No.

Email Address:_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Signature

Note: please attach the following: 1. Photocopy of valid ID 2. Endorsement from Bureau Chief

directly or indirectly, destroy its character of non-partisanship and impartiality;

j.) They shall commit to submit themselves to the direct and immediate control and supervision, comply with the orders, of the COMELEC or the Post in the performance of their functions and activities provided by law, and such other functions and activities which COMELEC or the Post may assign;

k.) They shall not be supported by or be under the influence of any foreign government or any of its agencies or instrumentalities, or any foreigner, whether natural or juridical person.

l.) They shall not solicit or receive, directly or indirectly, any contribution or aid of whatever form or nature from any foreign government or any of its agencies or instrumentalities, or any foreigner, whether natural or juridical circulation.

Sec. 9. Effectivity. This Resolution shall take effect on the seventh (7th) day after its publication in two (2) daily newspapers of general circulation.

Sec. 10. Dissemination and publication. The Office for Overseas Voting shall furnish the Office of the President, the Office of the Press Secretary, the Department of Foreign Affairs, the Philippine Information Agency, FilComs, NGOs, and CSOs copies of this Resolution.

The Department of Foreign Affairs shall furnish copies thereof to all foreign embassies and consulates.

The Education and Information Department shall cause the publication of this Resolution,

SO ORDERED.

Re p u b l i c o f t h e Ph i l i p p i n e s COMMISSION ON ELECTIONS

NATIONAL AND LOCAL ELECTIONS

Ma y 9, 2016

OVERSEAS VOTING

INFORMATION SHEET(Fi l Co m , NGO, CSO, Ac c r e d i t a t i o n )

(Please type or print)

Name of FilCom/NGO/CSO

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

Office Address

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

Nature of Organization

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

Number of Members: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

Tel. No.

Mobile No.: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

Email Address: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

(Name and signature above printed name of authorized representative)

Note: please attach the following:

1. List of officer and members2. Photocopies of valid IDs of officers and members3. Authority of the applicant to apply for accreditation

BusinessMirrorwww.businessmirror.com.ph Friday, January 29, 2016 A13

RESOLUTION NO. 10036

WHEREAS, duly accredited Filipino Communities (FilComs), Non-governmental Organizations (NGOs), or Civil Society Organizations (CSOs) are hereby recognized as partners of the Commission in implementing the overseas voting;

WHEREAS, Section 20 of Republic Act No. 10590 provides that non-governmental organizations and other civil society organizations may be accredited by work with the Commission as partners on overseas voters’ education and to participate in the electoral process;

WHEREAS, it is expected that 201 Automated National and Local Elections will generate higher voter interest and that a great number of FilComs, NGOs, and CSOs may be accredited as partners of the Commission in voter education, information campaign, and other voting related activities;

NOW, THEREFORE, pursuant to the powers vested in it by the Constitution, Republic Act No. 9189 as amended by Republic Act No. 10590, the Omnibus Election Code, and other election laws, the Commission on Elections has RESOLVED, as it hereby RESOLVES, to promulgate the following guidelines

Sec. 1 Definitions. Unless otherwise indicated, as used in this Resolution

a. FILIPINO COMMUNIT refers to a group of Filipinos of any size whose members reside in a specific locality organized due to their common regional, cultural and historical heritage, interests, occupation which are perceived to be or perceiving itself as distinct in some respect form the larger society within which it exists.

b. NON-GOVERNMENTAL ORGANI ATION refers to Philippine organization that is neither a part of the Philippine government nor a conventional business establishment. It is organized by ordinary citizens, and may be funded by the Philippine government, foundations, businesses, or Filipino citizens.

c. CIVIL SOCIET ORGANI ATION refers to the aggroupation of Filipino non-governmental organizations and institutions that manifest the interests and will of citizens of the Philippines and are independent of the Philippine government.

Sec 2. General requirements for accreditation. All parties requesting for accreditation shall be required to submit the following

a.) A duly accomplished Accreditation Applicant Form;

b.) List of officers and members including their addresses and contract numbers; and

c.) Photocopies of Valid IDs of officers and members.

Sec. 3. Application forms. Application forms for accreditation shall be available at the Office for Overseas Voting (OFOV) and at the Posts. Application forms may also be downloaded from the COMELEC website (http //www.comelec.gov.ph) the Department of Foreign Affairs (DFA) website.

Sec. 4. Period for filing applications for accreditation. The period for filing applications of accreditation shall be from 1 February 201 to 31 March 201 . This period shall be non- extendible. Application filed after the last day for filing shall not be entertained.

Sec 5. Filing and approval of applications for accreditation. - Application for accreditation shall be filed at the Posts. Approval of the applications for accreditation shall be issued by the Head of Post.

Sec . Treatment of applications for accreditation. Within seven ( ) days from the end of the period for filing applications, the Head of Post shall immediately furnish copies of all applications, with attachments, including copies of Certificates of Accreditation, to the OFOV.

Sec . Certificate of accreditation. Upon accreditation, FilComs, NGOs or CSOs, shall be issued their Certificates of Accreditation duly signed by the Commissioner-in-Charge of OFOV or by the Head of Post. The Certificate of Accreditation shall be strictly non- transferable and is valid only for the purpose for which it was issued. Any abuse thereof shall result in revocation.

Sec. 8 Guidelines. The duly accredited FilComs, NGOs

and CSOs shall observe the following guidelines

a.) They shall be under the supervision and control of the COMELEC or the Posts;

b.) They shall assist in organizing, managing, or operating the Voting Centers including filed and mobile voting;

c.) They shall coordinate the activities of all NGOs and private organizations that are interested in involving themselves in the elections for the purpose of ensuring free, clean, honest and fair conduct of the elections;

d.) They shall deploy volunteers who may assist in the operations of the voting centers and who may also provide assistance to registered voters during the voting period;

e.) They shall assist the COMELEC or the Post by monitoring the conduct of voting by being made a member of the Task Force that may be organized by the COMELEC or the Post for the process;

f.) They shall assist in the dissemination of information to educate and fully inform the public about election laws, procedures, decisions, and other matters relative to the work and duties of the COMELEC and the Posts and on the necessity of clean, free, orderly and honest electoral process.

g.) They shall observe the voting to ensure free, honest and orderly voting process;

h.) They shall be strictly non-partisan and impartial during the voting period;

i.) They shall undertake to police their ranks and prevent infiltration by persons or groups of persons who may,

Republic of the PhilippinesCOMMISSION ON ELECTIONS

Manila

Republic of the PhilippinesCOMMISSION ON ELECTIONS

ManilaGUIDELINES FOR ACCEREDITATION OF FILIPINO COMMUNITY (FILCOM), NON- GOVERNMENTAL ORGANIZ ATIONS (NGO), OR CIVIL SOCIETY ORGANIZ ATION (CSO), AS PARTNERS OF THE COMMISSION ON ELECTIONS IN CONNECTION WITH THE CONDUCT OF OVERSEAS VOTING UNDER REPUBLIC ACT NO. 9189, OTHERWISE KNOWN AS “ THE OVERSEAS ABSENTEE VONTING ACT OF 2003” AS AMENDED BY REPUBLIC ACT NO. 10590 FOR PURPOSES OF THE MAY 09, 2016 NATIONAL AND LOCAL ELECTIONS.

x----- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -x

GUIDELINES FOR MASS MEDIA ACCREDITATION IN CONNECTION WITH THE CONDUCT OF OVERSEAS VOTING UNDER REPUBLIC ACT NO. 9189, OTHERWISE KNOWN AS “ THE OVERSEAS ABSENTEE VOTING ACT OF 2003” AS AMENDED BY REPUBLIC ACT NO. 10590 FOR PURPOSES OF THE MAY 09, 2016 NATIONAL AND LOCAL ELECTIONS

Bautista, J.A.D. ChairmanLim, C.R.S. CommissionerParre o, A.A. CommissionerGuia, L.T.F. CommissionerLim, A.D.L CommisionerGuanzon, M.R.A.V CommisionerAbas, S.M. Commisioner

Promulgated anuary 13, 201

Bautista, J.A.D. ChairmanLim, C.R.S. CommissionerParre o, A.A. CommissionerGuia, L.T.F. CommissionerLim, A.D.L CommisionerGuanzon, M.R.A.V CommisionerAbas, S.M. Commisioner

Promulgated anuary 13, 201

Attachpicture

2x2

Attachpicture

2x2

J . ANDRES D. BAUTISTAChairperson

CHRISTIAN ROBERT S. LIM Commissioner

AL A. PARREÑ OCommissioner

LUIE TITO F. GUIACommissioner

ARTHUR D. LIMCommissioner

MA. ROWENA AMELIA V. GUAZ ONCommissioner

SHERIFF M. ABASCommissioner

CHRISTIAN ROBERT S. LIM

AL A. PARREÑ O

LUIE TITO F. GUIACommissioner

ARTHUR D. LIM

MA. ROWENA AMELIA V. GUAZ ON

SO ORDERED.

J . ANDRES D. BAUTISTAChairperson

LUIE TITO F. GUIA

RESOLUTION NO. 10037

WHEREAS, duly accredited mass media shall be given free access to polling places, voting centers for purposes of observing and reporting on election events and processes;

WHEREAS, it is expected that the 201 Automated National and Local Elections will generate great media attention and that a great number of request for media accreditation will be filed by both Philippine and foreign media;

WHEREAS, there is a need to increase the efficiency in the recording and monitoring of grants of accreditation to avoid the proliferation of spurious accreditation papers or media passes;

NOW, THEREFORE, pursuant to the powers vested in it by the Constitution, Republic Act No. 9189 as amended by Republic Act No. 10590, the Omnibus Election Code, Republic Act No. 1 , Republic Act No. 900 , and other election laws, the Commission on Elections has RESOLVED, as it hereby RESOLVES, to promulgate the following guidelines:

Section 1. Declaration of policy. It is the policy of the Commission on Elections (COMELEC) to ensure accurate reporting about the conduct and results of the 201 Automated National and Local Elections by providing maximum access to all stages of the electoral process to accredited media representatives subject only to conditions essential for the protection of the COMELEC and Department of Foreign Affairs personnel, property, and privileged information.

Sec. 2 Definitions. Unless otherwise indicated, as used in this Resolution

a. LOCAL MEDIA refers to those who are engaged in news reporting on a local scale in a given country or territory.

b. INTERNATIONAL MEDIA refers to those who are engaged in news reporting on international scale.

c. OTHER MEDIA refers to those engaged in other forms of journalism, including but not limited to opinion writers, public relations practitioners, creative writers, feature film and documentary film makers, and the like.

d. MEDIA REPRESENTATIVES refer to those who are actively engaged in the pursuit of information gathering and reporting or distribution in any manner or form, including print journalist, playwrights, television journalists, feature film makers, photojournalist, documentary makers, on line journalist, television production, radio journalist, professional photographers, novelist, professional videographers, screenwriters, public relations contractors, and bloggers.

Freelancers in any of the above categories shall be accredited only if they qualify under either one of the following conditions

1. They must be on assignment for a professionally organized organization and the request for accreditation is made by that organization. A freelancer cannot request accreditation on behalf of the organization that he is representing; or

2. They have previous accomplishments that are highly visible, respected and widely recognized.

Sec. 3. General requirements for accreditation. All parties requesting for accreditation shall be required to submit the following

a. A fully accomplished Accreditation Application Form;

b. Two (2) recently taken 2 x2 colored photographs; and

c. An endorsement from the newspaper, television, radio station, or internet news agency employing the applicant.

In no case shall an application endorsed by an entity other than the applicant's direct employer be given due couse; povided that the application of freelancers whose previous accomplishments are highly visible, respected and widely recognized need not be endorsed.

Sec. 4. Application forms. Application forms for accreditations shall be available at the Office for Overseas Voting (OFOV) and at the Posts, Application forms may also be downloaded from the COMELEC website (http //www.comelec.gov.ph) and the Department Affairs (DFA) website

Sec. 5. Period for filing applications for accreditation. The period for filing applications for accreditation shall be from 1 February 201 to 31 March 201 . This period shall be non-extendible. Applications filed after the last day for filing shall not be entertained.

Sec. . Filing and approval of applications for accreditation. Applications for accreditation shall be personality filed at the Posts. Approval of applications for accreditation shall be granted by the Head of Post

Sec. . Treatment of applications for accreditation. Within seven ( ) days from the end of the period for filing applications, the Head of Post shall immediately furnish copies of all applications, with attachments, to the OFOV.

Sec. 8. Media Card. Upon accreditation, media representatives shall be issued a Media Card duly signed by the head of Post. The COMELEC Media Card shall be strictly non-transferable and is valid only for the purpose for which it was issued. Any abuse thereof shall result in revocation.

The Media card shall be worn prominently whenever the media representative is covering or observing a COMELEC or electoral event.

Sec. 9. Access. Duly accredited domestic and foreign media shall be allowed maximum access to all stages of overseas voting electoral process subject only to conditions essential for the protection of the electoral boards, properties, and privileged information.

Sec. 10. Rules of conduct. All media representatives shall observe the following rules of conduct:

a. Not more than three (3) media representative shall be allowed inside the polling place at any one time;

b. Upon entry into the polling places or canvassing area, media representatives shall immediately identify themselves to the Special Ballot Reception and Custody Groups (SBRCG s), Special Board of Election Inspectors (SBEIs) or Special Board of Canvassers (SBOCs) by presenting their Media Cards;

J . ANDRES D. BAUTISTAChairperson

CHRISTIAN ROBERT S. LIM Commissioner

AL A. PARREÑ OCommissioner

LUIE TITO F. GUIACommissioner

ARTHUR D. LIMCommissioner

MA. ROWENA AMELIA V. GUAZ ONCommissioner

SHERIFF M. ABASCommissioner

CHRISTIAN ROBERT S. LIM

AL A. PARREÑ O

LUIE TITO F. GUIACommissioner

ARTHUR D. LIM

MA. ROWENA AMELIA V. GUAZ ON

J . ANDRES D. BAUTISTA

anuary 13, 201anuary 13, 201 anuary 13, 201anuary 13, 201

10036

10037

Friday, January 29, 2016 • Editor: Angel R. Calso

OpinionBusinessMirrorA14

China can’t even make a ball pen

editorial

AMERICAN businessman and founder of the Foundation for Economic Education, Leonard Read, wrote an essay in 1958 titled “I, Pencil”. Told from the perspective of a common item—

the pencil—Read pointed out that there was not a single person on the planet that had the complete knowledge and ability to make even one pencil.

A pencil brings together wood, lacquer, a printed label, graphite lead, a bit of metal and an eraser. But no one person individually and alone could bring all the components from the raw material together to make this fin-ished product, an item made yearly in the billions around the globe.

This essay was update to “I, Mouse”, another common item that no one has the ability to produce without the inputs of literally millions of people.

We step back and look in awe at the way Chinese manufacturing and its product output dominates the global markets in everything from electronic gadgets to shoes and machinery. Chinese factories are able to produce ev-erything from iPhones, aircraft carriers, high-speed railways to spacecraft.

However, there is not a single manufacturer in China that can produce a single ball pen on its own. The only reason that China can make 38 billion ball pens each year is because it is able to import the one vital component that it cannot make from Germany, Switzerland or Japan.

Costing just a few cents, China cannot manufacturer the most impor-tant part—the tiny rotating ball at the tip of the ball pen that puts the ink on the paper.

China does not produce the high-quality brass, steel or tungsten carbide that this little ball is made from. In fact, China must import the specially made high-quality steel alloy to build its bridges, railways and submarines.

Further, it does not build the machinery and computerized measurement equipment to turn the metal into a ball-pen ball. The margin of error to make the ball is zero, because any imperfection would make the pen useless.

No individual ball pen-manufacturing company is willing to spend for the research and development because they know their competitors will just steal the design. These companies also refuse to import the high-tech state-of-the-art manufacturing machinery because they have problems with their technicians properly operating and maintaining this equipment.

China’s Premier Li Keqiang recently raised this issue of poor manufac-turing development because “unless they are able to achieve technological breakthroughs and step up investment in high value-added production rather than continuing to play safe and rely on labor-intensive manufacturing, it won’t be long before the country completely loses its growth momentum.”

If a nation cannot make its own ball pen without relying on its man-ufacturing competitors for basic materials, it is not yet the industrial powerhouse that it thinks it is. QUARTERS who disagree with the Commission on Elec-

tions’s (Comelec) plans for the Automated Election System (AES) repeatedly echo each other in pointing out

four instances where the security of the system was supposedly “disabled”. As is par for the course for these kinds of allegations, it is far easier to sow fear and misunderstanding than to promote facts and reason. But let me try.

Myth busted

First, it is said that there has been no source-code review. This allegation is baseless. To put it as plainly as possible, the AES used in 2010 and 2013 both underwent the legally mandated source-code re-view by an international certifica-tion authority. In 2016 the source- code review was initiated more than half a year before the elections. So, it is bunk to say that there has been

no source-code review.In a recent demonstration of the

safety features of the Vote Counting Machines (VCMs) to be used in 2016, the Comelec showed how it can be proven that the individual VCMs car-ry source-code-reviewed software, us-ing hashcodes—or the “fingerprint” of the software. As explained by the Comelec, each VCM is able to gener-ate a hashcode for the software it is

running. When that code is printed out, it becomes simply a matter of comparing the VCM’s hashcode to the hashcode of the source-code-re-viewed software which the Comelec, on Wednesday, deposited in escrow with the central bank.

The second myth is that UV scanning wasn’t used in 2010 and 2013. While this is true with regard to 2010, the same cannot be said for 2013, much less 2016. In the same demonstration, the Comelec showed that the ballots had the ap-propriate UV markings—pictures were even posted online—and that the VCMs rejected ballots that didn’t have UV marks. So, myth busted, am I right?

The third allegation endlessly repeated is that the 2010 and 2013 elections didn’t use digital signa-tures. This one is a little more dif-ficult to debunk because the proof lies in a Supreme Court (SC) deci-sion. Sadly, finding and reading an SC decision—even online—can be challenging, so sometimes people

don’t bother anymore, leading to the perpetuation of the misinforma-tion. But to summarize the Court’s ruling in Roque v. Comelec: the results transmitted by the precinct count optical scan machines in 2010 and 2013 were, in fact, digitally signed; except that this was done in a man-ner not favored by the propagators of the myth.

Fourth, and finally, they say that the AES has no Voter Verifiable Pa-per Audit Trail (VVPAT). Again, the fact is that the SC has already said the paper ballot—the one filled out by the voter himself—is actually the best VVPAT. Sadly, this way of doing it was, once again, not what the critics preferred. Nevertheless, the Comelec was able to show that the VCMs to be used in 2016 do have the capability to print voting “receipts” that are more in line with what some quarters are asking for.

James Arthur B. Jimenez is director of the Commission on Elections’s Education and Informa-tion Department.

SPOXJames Jimenez

Friday, January 29, 2016

OpinionA15BusinessMirroropinion@businessmirror.com.ph

I HAD the opportunity to participate in a two-day seminar on Faith and Language at the Holy Rosary Major Seminary in Naga City a few weeks back. I, with my nonpriest colleagues, consid-

ered it a rare opportunity to be inside the enclave of people whose vocation mark them as separate from ours.

Faith as languageothers. In Gibran’s poetry, Tria talked about finding equivalent for “oak” trees in the Philippine con-text by looking for trees that cast massive shadow. After all, the line is about people not growing under each other’s shadow. Any tree that cast a shadow, as the wisdom of the translator puts it, will do.

The second day, poetry and ritu-als were discussed. Vic Nierva, a poet, talked about his translation of John Donne’s works, a formi-dable exercise. The poet, however, did not really talk about the process of translation but how he ended up choosing the mystic poet, Donne. He meditated upon memories of loss as the beginning of the desire to un-derstand Donne. Feelings are native and words that are foreign do not, it seems, serve the heart in grief.

K r ist ian Cordero, another poet, went on to expound on his translation of Rilke’s poems. But Cordero admitted he was amazed about the process where he felt he

had to enter the person of Rilke, that he had to make the poet part of his own life, before he sensed that his translation was becoming significant.

I discussed the ritual called “Per-don,” a procession where the par-ticipants ask for forgiveness as they enumerate their sins. No priest is needed to mediate between the peo-ple and their Lord.

Cordero and I went back to that major seminary to conduct work-shop on orthography. We gave them the rules and then asked them to spell some words. We reached the entry “God,” how is that word translated and how to spell the translation. First came “Diyos” and then “Dios.” A third option was offered: “Jos.” Laughter filled the hall. Now they know this business of language and faith can be amusing. They will all make good translators and, maybe, even good evangelizers.

E-mail: titovaliente@yahoo.com.

Torn between two loves: Balancing career and relationships

Part 1 of 2

WITH more and more women stepping up to positions of leadership not only in their households (which is almost always a given), but also in their businesses and profes-

sions—and even in the public sphere—the question is often asked: How do they do it?

Is it really possible to balance a thriving career, a fulfilling (per-sonal/romantic) relationship and a healthy family life—or must one necessarily give way to the others? Why is it that these questions are always front and center for woman- leaders and achievers, while they aren’t as openly discussed or ac-knowledged among men?

(Or are we missing some conver-sations among men that also need to be brought to light?)

Recognizing all these, and in line with upcoming celebrations of Valentine’s Day, Business and Pro-fessional Women (BPW) Makati is staging an intimate gathering and conversation among women (al-though men are most certainly wel-come, too!) called “Torn Between Two Loves: Balancing Career and Relationships.” Slated for February 10, and in line with what BPW Makati calls #WomenWednesdays, the event will be held at 6 p.m. at A Space Manila at the Fifth floor Gal-lery, Aboitiz Building, 110 Legazpi Street, Legaspi Village, Makati City.

According to the newly elected BPW Makati President, Camille R. Escudero, who herself is a thriving lingerie designer and entrepreneur, “When women work long hours, they’re considered as ‘married to their jobs.’ When women prioritize their partner or family, they risk compromising their professional endeavors. Why do women struggle to excel professionally while sustain-ing a relationship? Can’t we be suc-cessful on both fronts?

“As an organization advocating women empowerment, BPW-Maka-ti believes in developing women in all areas of our lives. By engaging women who have done marvelously in their work and in their relation-ships, we will demonstrate that women can experience flourishing and meaningful relationships while achieving our professional goals,” Camille shares.

Headlining the event are four women of varied backgrounds, who will share their own unique experi-ences and perspectives.

Jean de Castro is a corporate lawyer and anchor for the daily morning show First Up Philippines on Bloomberg TV Philippines. First Up is a one-hour morning show focus-ing on news that impact business, investments, the stock market and policy-making decisions.

She is also general counsel and vice president for finance and administration of ESCA Inc. and ESCA International Inc., leading engineering consultancy firms with 30 years of experience, in-cluding work on some of the Phil-ippines’s most famous buildings and landmarks. She is also senior counsel for MOSVELDTT Law Of-fices, handling cases and litigation before tribunals, including the Construction Industry Arbitration Commission.

Riva M. Galveztan is founder and chief curator of Customized Dating. Aside from managing her business ventures in the health and wellness industry, she currently runs Customized Dating, a profiling and segmenting program that aims to create a unique environment for the joyfully single men and women to meaningfully interact and discern

what is best for them according to their life experiences.

According to Riva, she is pas-sionate about encouraging singles “never to settle for less” because she believes “each one deserves God’s best.”

Chiqui Escareal-Go, mean-while, is the president of Mansmith and Fielders Inc., an advocacy-based marketing, sales, innovation, and strategy training and consultancy company. She heads the Mansmith Training Group, which includes Cor-porate Achievers Institute, Sensei Business Academy and Day 8 Busi-ness Academy. She is also the vice- president of the Women’s Business Council Philippines and is currently a member for the Board of Trustees of Kythe Foundation Inc. and St. Paul College Pasig.

Chiqui was one of the awardees for Outstanding Filipina Entre-preneurs 2011 in the Trailblazer category and was awarded by the Go Negosyo Enabler Award in 2014 by the business advocacy group Go Negosyo. She is also the vice chairman of the Corporate Social Responsibility Committee of the Management Association of the Philippines and a member of BPW-Makati. 

Maria Montserrat Iturralde-Hamlin is the founder and presi-dent of TeamAsia, an award-win-ning integrated marketing commu-nication firm that takes brands to the next level of visibility through five core services: Integrated mar-keting, experience, creative, content and digital.

Monette concurrently serves as chairman of the Philippine Association of Convention/Exhi-bition Organizers and Suppliers; chairman of Hopkins Interna-tional Partners Inc.; trustee and board secretary of the League of Corporate Foundations; and was appointed to the Tourism Pro-motions Board representing the Meeting, Incentives Travel, Con-ventions, Exhibitions and Events Services and Facilities Sector for the third consecutive year. She is also a member of BPW-Makati.

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The event is free of charge and is meant to kick off BPW-Makati’s series of events and conversations around women, empowerment and leadership.

BPW-Makati is a nonprofit orga-nization that is a member of BPW International. The network seeks to “develop the professional, business and leadership potential of women on all levels through advocacy, men-toring, networking, skill-building and economic empowerment pro-grams and projects around the world.” The entire BPW organiza-tion is also closely aligned with the United Nations Women Empower-ment Principles.

For inquiries about the event or about BPW-Makati, e-mail bpw.makati@gmail.com.

Niña Terol (@ninaterol) calls herself a “commu-nicator, connector, idea curator, and changemaker.” She heads corporate affairs for McCann Worldgroup Philippines, one of the largest and leading multina-tional communications firms in the Philippines, and is a founding trustee and board member of BPW-Makati. She has also been widely published in local and international publications and is a lecturer at one of the country’s top universities.

MANY “pundits” some years back thought that the business- process outsourcing (BPO) will be a transient global phe-nomenon. Today, about 15 years later, the BPO industry in

the Philippines remains growing and expanding across the country.

Although the topic centered mainly on how the Catholic faith and its pertinent documents, or artifacts, have been translated into Bikol, the discussion resonated with the colonial experience of this country.

If the material being translated is prose, there seems to be no problem. When the form of the piece assumes a literary style, then the question of “untranslatability” rears its difficult

head. Fr. Wilmer Tria, the head of the Madrigal Foundation in Ateneo de Naga, and a good academic him-self with PhD from Rome, has been translating literary works. Like any good translator, he finds the critical aspects of finding the right words or translation more of part of the fun than the mystery of language. He has translated Khalil Gibran’s The Prophet, Antoine Saint-Exupéry’s The Little Prince, among many

ANNOTATIONSTito Genova Valiente

The BPO midnight sun

EAGLE WATCHGervy Biagtan

WOMEN STEPPING UPNiña Terol

BPO is a product of globalization of labor markets. Beyond the realm of the Ricardian comparative advan-tage where large businesses build scale economies with “cheap labor” abroad, the motivation for BPO is also inspired by Michael Porter’s competitive advantage. As such, scale enterprises in wealthier coun-tries migrate some of their work to “cheaper” countries that similarly (if not far better) have the same level of skills on the work required. One ex-ample of specialized skill is custom-er service, where the Philippines has a vast pool of hospitality equipped and English-speaking labor force. This led to the birth of the BPO-customer-service industry in the Philippines. Labor force employed in the BPO industry grew from more than a quarter-of-a-million Filipi-nos in 2006 to an estimated 1.07 million in a span of eight years (IT and Business Process Association of the Philippines, or IBPAP, 2014). This contributes to about 2.3 per-cent to 2.7 percent of the employed labor force in the country, and the revenues earned by the industry is more than 5 percent of the econo-my’s nominal GDP in 2014.

‘Call centers’BPO can be classified into several common lines of work: contact centers (often termed as “call centers” in the Philippines), back office knowledge-process outsourcing (KPO) (e.g., payroll, order processing and man-agement); information-technology outsourcing (ITO) (e.g., cloud en-abling, software and database man-agement); health care (e.g., medical transcription), animation, and game development. IBPAP’s figures show that in 2014 more than half (64 per-cent) of all the BPO employees are employed in contact centers, and a third of the BPO’s labor force are in the emerging KPO, ITO and health-care services. The majority of the out-sourced work comes from the North American market (77 percent), while the rest come from European and Asia-Pacific regional markets.

The contact centers, which are the major players in the BPO industry, can be further divided into techni-cal-support service (e.g., helping cus-tomers with their malfunctioning gadgets); travel and hospitality (e.g., helping customers regarding hotel reservations), health care and health sciences (e.g., providing details of

medical coverage); and financial/insurance services (e.g., credit-card or debit-card inquiries or processing requests for insurance claims).

Impact on economy and continuous expansionBEYOND employment and GDP, the BPO industry has produced exten-sive multiplier effects. This can be seen through tax revenues earned, alongside with the increased con-sumption of various goods and ser-vices (Culaba, 2014). It also indirectly generates employment by spurring the growth of employment in indus-tries that produce basic commodities (Tholons, 2011). It also improves general welfare since the higher in-comes earned by the industry (which on average is about more than half of the minimum wage) allows workers to increase consumption not only of basic commodities, but also of leisure and other higher-priced commodities. Furthermore, the yearly expansion of the industry also boosted demand for office space, helping increase real es-tate values. Lamudi estimated that in 2014 alone 80 percent to 90 percent of the growth in office space are oc-cupied by the BPO industry. Other forecasts reveal vacancy rates in of-fice spaces will remain low for the next years due to the rapid expansion of the industry (Colliers Int’l Philip-pines, 2014). Moreover, the indus-try also has diffusing effect in real estate outside Metro Manila. Other cities, dubbed as the Next Wave Cit-ies, like Cebu, Bacolod and Clark have also experienced the BPO expansion (IBPAP, 2014).

Challenges aheadIN an interview with Jonathan de

Luzuriaga, former executive direc-tor for Industry Affairs of the IB-PAP and presently the president of the Philippine Software Industry Association (PSIA), he mentioned several challenges that lay ahead of the industry. These are overseas em-ployment opportunities attracting fresh graduates and the currently employed BPO workers; fiscal in-centives offered by the country ver-sus the competitive offers coming from rival countries, like the Latin American (e.g., Costa Rica) and Asia-Pacific countries; and the contri-bution of academic institutions to help build a BPO-ready work force. In terms of fiscal incentives, Senate Bills 35 and 987 (both seeking to reduce or repeal the tax incentives of BPO companies), threatens to di-minish the competitiveness of the Philippines’s ability to attract more BPO activities. On the other hand, despite having tie-ups between uni-versities with BPOs in terms of pre-paring graduates to be BPO-ready, there still has been no formal inte-gration of BPO-specific education in the top tiered universities.

There is definitely a need for the incoming administration to pro-vide support to the BPO industry in responding to these challenges. At the current rate of growth, the industry will most likely match the revenues received from remittances in the next three years. We believe that, despite its current growth spurt, the best is yet to come for the industry. It is a midnight sun that is yet to set.

Gervy Biagtan is a lecturer at the Economics Department of ADMU and is a director for Process Improvement at TelePhilippines Inc. 

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