More than what meets the eye PCC to start review on Mighty-JTI deal next week
Idistinctly remember that the National Selection Committee (NSC) of Galing Pook Foundation had an animated discussion, aka heated discussion, on whether the entry of Davao City was deserving of an outstanding award in 2004. The city government was proud that it had mainstreamed gender development in governance. Local ordinances were legislated to protect the rights of women. An office was created to help protect women against violence and partnerships with women's groups were established.
Some of the NSC members raised strong reservations citing instances of human rights violation by the city government. But it was decided that the program was being recognized on its own and should be considered as separate from complaints against the city.
As I read about the women victims of EJK, the case of Leila de Lima, the brash treatment of women and the lack of respect for them in public speeches, I am convinced that the NSC should have done better. We cannot separate programs from how a government operates in totality, and from how the officials conduct themselves. We should have seen inconsistencies between plans and action, and saw the conflict between values and pronouncements. A program like the fight against drugs maybe hailed as "effective" but we cannot close our eyes to the lack of respect for human dignity and the violence that result from the program’s strategies. I had to bite my tongue as my cab driver yesterday expressed great satisfaction with how government carries out its "tokhang." "Change has come!" and he gloats about how peace and order are restored with the killings of drug suspects. "Mabuti nga sa kanila." (They got what they deserved.)
I have no right at all to proselytize. I can only look at governance from what I learned from Prof. Ernie Garilao and Secretary Jesse Robredo. They emphasized that governance is not just about projects or programs. It is about how these programs are or- ganized into a system that will promote efficient service to citizens, accountability, integrity, and empowerment of citizens. They frowned on programs that are discrete or disparate and those that are created for publicity and patronage. They placed equal emphasis on processes on how goals are accomplished and stressed that processes are as important as results.
Hopefully, we are now better guided in evaluating the performance of government and public officials. We should not just be looking at individual programs and their outcomes. We must assess how programs are integrated and woven into a coherent whole to form an entire system of good governance.
Last week, I assessed three entries to the Galing Pook Awards. How easy it is to be impressed with the presentations of local governments. But we found it necessary to go beyond their meetings and consult with their constituents. It was important to find out if ordinary citizens are given ample opportunities to participate in decisionmaking. We had to look at income and expenditure statements to gauge if governments manage taxpayers’ money well. We examined processes on how plans are made and executed. Do they monitor and evaluate impact of programs on people's lives? But what I found most informative was observing their actions and behavior. Often, their body language spoke louder than their words. I vividly recall how I was unable to listen to a Mayor some years ago, because I was distracted by his diamond studded rings, bracelet, and necklace. I am also intrigued by public servants dressed in signature shirts and lugging expensive bags.
It is quite easy to admire leaders who are gutsy, and who make us laugh. We also get carried away by grandiose and histrionic projects. But governance is more than skin deep. We only have to keep in mind how true leaders Jesse Robredo lived it. They had great vision, they were honest, gave dignity to the poor, and produced lasting results. mguevara@synergeia.org.ph
The Philippine Competition Commission (PCC) is set to start the review on the planned merger of the local unit of Japan Tobacco International (JTI) and homegrown cigarette maker Mighty Corp. next week once both parties already provided the country's antitrust and competition authority sufficient information on the deal.
PCC Commissioner Johannes R. Bernabe said the agency's review on the plan of JTI to takeover Mighty is yet to start.
To recall, JTI is set to acquire for R45 billion the assets of embattled cigarette company, which is now being accused of evading billions of pesos in taxes.
"The parties have submitted the notification form as required under the law. Now our mergers and acquisitions office have a period of 15 days to determine whether or not the documents they have provided are sufficient as required under the law," Bernabe told
Waterfront Hotels and Casinos Inc. announced yesterday that it will spend a total of R1.65 billion over the next two years for the renovation and refurbishment of four major hotels and casinos under its wings, anticipating a growing tourism industry in the coming years.
Company President Kenneth T. Gatchalian disclosed in a press conference at the Pavilion Hotel in Manila that Waterfront has approved a R350-million renovation and refurbishment for the 350-room Manila Pavilion Hotel; R400 million for the 561-room Waterfront Cebu City Hotel & Casino and convention center in Lahug; R450 million for the 166-room Waterfront Airport Hotel in Casino in Mactan, Cebu; and R450 million for the 159-room Davao Insular Hotel in Davao City.
He said these four hotels will all undergo major renovation and refurbishing reporters on Tuesday,
"Because the period of sufficiency determination has not yet concluded, the phase 1 review on the deal is yet to start. We have 30 days to conclude the review. Hopefully, we won't go to phase 2 of the review," he added.
According to him, the period of sufficiency determination began on July 24, which means it will lapse some time next week.
"I believe that there are certain information that is being requested from Mighty and Japan Tobacco, which are still forthcoming," her further said.
The PCC is an independent quasijudicial body created by law to promote and maintain market competition and a level playing field for business by checking anti-competitive practices.
Under Section 3 of the Implementing Rules and Regulations of the PCC, parties to any merger or acquisition (M&A) are required to notify and seek prior approval from the Commission if the value of the transaction exceeds R1 billion.
It was also on July 24 when Finance works to bring their facilities at par with competition. It will also involve upgrading of their IT information technology infrastructure and facilities.
Gatchalian said the R1.65-billion total capital outlay will be funded by a combination of internally-generated funds, issuance of corporate notes as well as issuance of unsubscribed shares via private placements with investors, both local and foreign.
He forecasts a bullish outlook for the tourism industry which will be a boon to the hotel, resort and convention business.
For the Pavilion Hotel, he said they plan to revive the “glory days” of the hotel when it was still managed by the Hilton International, including tapping its historical background to enhance its branding, improvement of the hotel rooms, restaurants and other facilities. Secretary Carlos G. Dominguez announced that the planned merger of JTI and Mighty will be subject to PCC approval.
According to him, the civil settlement of Mighty Corp.’s tax liabilities will depend on how swiftly the PCC can approve the sale of the Bulacanbased cigarette firm’s assets to JTI Philippines.
Dominguez said Mighty’s offer to settle its tax liabilities for R25 billion will rise to around R30 billion once the value-added tax (VAT) and other fees are included in the computation of the final settlement sum.
“This will be the largest sum of taxes collected ever from a single taxpayer in Philippine history. The date of full collection will depend on how fast the PCC approves the sale of Mighty’s assets to the JTI whose largest shareholder, incidentally, is the Japanese government,” Dominguez said in an earlier report.
“Mighty will be out of the cigarette manufacturing business from now on,” he added.
Gatchalian disclosed that they are currently in talks with Philippine Amusement and Gaming Corporation (Pagcor) for the extension of their contracts and so far, he said the indications “are on the positive side.” Sources said that Pagcor was renting the Pavilion Hotel casino space for about R360 million a year.
This even as Pagcor has started moving some of its gaming facilities to the nearby Vanderwood Hotel and Casino (the former site of the Army and Navy Club).
Gatchalian said Waterfront Hotels expected to post annual growth in revenues of at least 10 percent annually. He said the group would concentrate first on completed the renovation and refurbishment program before looking at other tourism sites to build facilities on. (LDC)