July 5, 2008 Mind Bullet Inc.
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I.BANNER STORIES

1. Philippine Daily Inquirer


Central bank intervenes as peso falls to new 10-mo low
By Doris DumlaoReuters, Philippine Daily InquirerFirst Posted 10:19:00 07/04/2008
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oCentral bank intervenes as peso falls to new 10-mo low
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oOil falls below $144
oInflation 11.4% in June, highest in 14 years
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oERC turns down PSALM demand to collect P9B
oRP back to normal early next year -- BSP governor
oWorld stocks fall despite oil’s drop
oStocks post gains, but peso hits 10-month low
oCiti unveils credit card in mobile phones
oADB may let gov’t decide which projects to fund
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MANILA, Philippines -- (UPDATE) The peso slid to a new 10-month low of P45.70 to the dollar Friday before heavy central bank intervention pulled it back to P45.45 near the day's close.
Currency dealers said the market sold down the peso on reports that year-on-year inflation surged to a 14-year high of 11.4 percent in June.
But as the Bangko Sentral ng Pilipinas unloaded dollars between P45.60 to P45.70, the market saw a good opportunity to lock in gains. As a result, the local currency closed slightly stronger than Thursday's P45.50 to the greenback.
The peso, now Asia's second worst performing currency next to the South Korean won, would have fallen deeper if not for BSP's dollar sales. Some traders estimated that the central bank accounted for as much as half of Friday's volume of $847.8 million at the Philippine Dealing System (PDS).
But despite the slight bounce that allowed it to close near the day's high of P45.43, the local currency tumbled by nearly P1 or 2.2 percent this week from last week's close of P44.46 to the dollar.
Since the start of the year, the peso has depreciated by about 9.2 percent, wiping out nearly half of the gains against the greenback recorded last year when the local unit was acclaimed as the region's best performing currency.
“The BSP was intervening aggressively but the market knew that the exchange rate had already moved up fast and that the central bank may tighten monetary policy anytime given the clear and present danger of inflation. Knowing that the BSP may even raise interest rates by 50 basis points, and might not even wait for the next policy rate setting (July 17) so some had taken profits,” a bank treasurer said.
Other dealers said there was heavy corporate demand for dollars, which added to pressures from a string of bad news on the local and global front. For instance, state utilities were sourcing dollars for maturing debt payments and other requirements, a banker said.
“People are nervous on what will happen during the weekend so they're buying dollars,” another dealer said.
“There's still not much incentive to take the peso yet so investors are staying on the sidelines, believing that the local currency could hit P46 to P47 to the dollar,” the dealer added.
As the BSP was still “behind the curve,” or its interest rates are still too low compared with what the market believed was needed to address rising inflation, the dealer said the trend was still bearish for the peso.
“There's a recurring theme of risk aversion given the US (credit) crisis and also the surging oil and other commodity prices are affecting the whole world,” said Rizal Commercial Banking Corp. senior vice president Marcelo Ayes.
“It will take major move, intervention by G8 (world's eight richest economies) to support the US dollar and collapse oil prices. I see that happening within one or two weeks,” Ayes said.
“The continued rise in oil prices are taking a toll on our currency. Oil companies especially companies that are highly dependent on imports are quick to buy the greenback as a consequence. There's a trend that whenever oil prices hit a new record high, the peso suffers,” said Astro del Castillo, managing director at local fund manager First Grade Holdings.
This developed as oil prices in US futures had hit a new high of $145 per barrel.
“Even Nostramadus wasn't able to predict this,” Del Castillo said. “The ghost of oil prices is really affecting the foreign exchange.”
http://business.inquirer.net/money/breakingnews/view/20080704-146393/Central-bank-intervenes-as-peso-falls-to-new-10-mo-low



2. The Philippine Star

Consumer prices soar to highest in 14 yearsBy Des Ferriols Saturday, July 5, 2008
Inflation rose to a 14-year high in June on the back of soaring prices of oil and basic goods, data released yesterday by the National Statistics Office (NSO) showed. With prices at new record highs, the central bank hinted at raising interest rates significantly.
NSO records show consumer prices soared 11.4 percent last month from a year earlier. Inflation in the same period last year was only 2.3 percent. The increase was the biggest rise since May 1994 and exceeded both market and central bank expectations. It was also the first time inflation had hit double digits since January 1999.
Malacañang, reacting to the latest inflation figures, said the government is doing its best to temper the effects of the “global escalation of oil prices” on local inflation.
The market has been expecting double-digit inflation rates due to the runaway global oil prices, which reached $143 per barrel this week.
“Demand pressures will moderate as monetary policy is generally tightened,” Bangko Sentral ng Pilipinas Gov. Amando Tetangco said after the release of the inflation data.
Analysts believe Tetangco’s comments indicated that the BSP will raise interest rates again at its next policy meeting on July 17 after it lifted its main rate by 25 basis points last month in its first rate rise in almost three years.
“I think the BSP will respond by raising policy rates on 17 July,” said Edward Teather, an economist at UBS, adding a rise of either 25 or 50 basis points was possible.
“I do think inflation will slow to a single digit next year, but without policy tightening... it may not fall by enough to reach the central bank’s inflation target range at the end of next year.”
Vishnu Varathan, of Forecast Pte. Ltd., said the BSP may opt for a bigger half-point rate rise to dispel any doubts that it had not been aggressive enough in its efforts to contain inflation.
The BSP eased its policy four times last year, helping the economy grow 7.2 percent, a 31-year record, and cut rates again in January. But as inflation had risen steadily since, racing well past the government’s target range of three percent to five percent, the authorities switched to a tightening mode, even as growth tapered to an annual rate of 5.2 percent in the first quarter.
Deputy BSP governor Diwa Guinigundo has indicated raising interest rates was not the only way of tightening policy.
Other tools included raising bank reserve requirement ratios or expanding the central bank’s special deposit account window, in which banks park funds, he told reporters on Thursday night.
Anticipated
Although the Philippines is not the only country burdened by high inflation, it is one of the hardest hit by soaring oil prices because it imports all of its oil requirements. The country is the world’s biggest importer of rice.
Excluding selected food and energy items, core inflation further climbed to 6.6 percent in June from 6.2 percent in May. This showed that the prices of volatile items such as food and oil were rising faster than other items in the consumer price index.
Tetangco stressed the increase in inflation rate was not unexpected, especially considering the impact of the unprecedented jump in world oil prices.
“The increase in domestic pump prices triggered a large price buildup across commodities and services groups,” Tetangco said, adding that this trend was expected to continue and peak in the third quarter.
By the fourth quarter of the year, Tetangco said, inflation rate should start going down.
Tetangco said the unsustainable prices of both oil and food resulted in global slowdown and widespread inflation in all countries, and not just in oil-importing ones.
In the Philippines, the NSO said the escalation in prices was apparent across commodity groups although it was tamer in Metro Manila where the average inflation was at 9.2 percent compared with the 12.3-percent average outside the capital.
The NSO said that the prices of food rose 17.4 percent in June and that of rice alone surged 43 percent as the government had trouble calming down fears of a rice shortage that had people coming out in droves to buy subsidized rice.
As oil prices showed no indication of slowing down, prices of food around the globe were also going up but not as dramatic as those of oil.
The demand for basic food commodities has been going up and economists have advised governments against dismissing the price surge as a temporary phenomenon.
But Tetangco said the resulting slowdown in the global economy would bring commodity markets back to their senses.
Gov’t response
Secretary to the Cabinet Ricardo Saludo said Malacañang is alarmed by the impact of the skyrocketing crude prices on inflation and that it’s working with private groups and industry leaders to address the problem.
“The government has been working with both the private sector and especially the industry leaders, the oil companies, the power sector, to try and minimize as much as we can the impact of global escalation of oil prices on our domestic inflation,” Saludo said.
“It’s always a concern when inflation goes up. We would really like inflation to be as low as we can and the good thing is under the Arroyo administration, we’ve actually seen an average inflation rate that is lower than previous administrations,” Saludo said.
He cited the average inflation rate of 5.5 percent in 2006 and 2007 which, he said, was definitely lower than the averages posted during the Aquino, Ramos or Estrada administrations.
Saludo said that the government is taking various steps to address the rising costs of goods and commodities and that in implementing these measures, the private sector has always been involved.
The measures include providing additional support to the agriculture sector in order to boost domestic production of food so that the country would be less dependent on imports.
The prices of rice in the world market have gone up to record levels since the start of the year as supplies from major rice producing countries have been limited.
World oil prices have also reached record levels, bringing domestic pump prices to rates never before seen in the country.
Saludo also noted that the government is undertaking several energy conservation initiatives.
The government is also developing alternative sources of fuel, particularly those coming from indigenous sources, which are readily available and cheaper than crude oil.
“We’ve been pushing for the Renewable Energy Act and the Alternative Energy Law and we have ushered in successful ventures like Chemrez and other biofuel ventures as well as in the energy and micro-hydro facilities especially in the rural areas,” Saludo said.
“All of this will help the country cope with the global burden of escalating prices. We just have to keep pushing these energy and food initiatives,” he added.
Saludo noted that the President has also convened the National Food and Energy Council, which she chairs, to oversee the implementation of measures aimed at addressing the country’s needs in food and energy.
Saludo said he agrees with BSP that inflation will eventually slow down in the coming months, given the measures set in place by the government.
The National Economic and Development Authority has indicated that the 11.4 percent June inflation rate is still well within the 7.4 percent target for the year.
“We have been lucky that this administration has not only sustained the longest period of expansion in our economy, now running at 30 quarters of unbroken growth, but also we have the lowest annual average inflation compared with previous administrations and also the annual highest GDP growth rate. So we hope that this can be sustained,” Saludo said.
Deputy presidential spokesperson Lorelei Fajardo, for her part, appealed for greater public support for the government’s price control initiatives.
“Price increases in food may seem to be the order of the day but the government will not tolerate hoarders and vultures who will prey on our consumers,” Fajardo said.
“We must work together as a people if we are to overcome this economic turmoil we are presently riding,” she added. – With Marvin Sy
http://philstar.com/index.php?Headlines&p=49&type=2&sec=24&aid=20080704139


3. Manila Times

Inflation at 14-year high
June’s 11.4% rate exceeds forecast by central bank
By Darwin G. Amojelar, Reporter
Rising food and fuel prices pushed the country’s inflation to a 14-year high of 11.4 percent in June, exceeding the forecast by Bangko Sentral ng Pilipinas (BSP) earlier this week.
The National Statistics Office reported on Friday that inflation rate surged in June from 2.3 percent during the same period last year. The agency said last month’s rate was the highest since May 1994, when inflation was 11.5 percent.
In May 2008, inflation was 9.5 percent.
Earlier this week, the central bank projected that inflation in June could grow between 10.4 percent and 11.2 percent. Central Bank Gov. Amando Tetangco Jr. said the inflation will peak in the third quarter but will likely go back to single-digit levels next year.
From January to June, inflation rose 7.6 percent, still within the central bank target of 7.9 percent for 2008.
“The soaring prices of rice nationwide along with the upward adjustments of other food items—such as flour and flour products, fruits and vegetables and meat in selected regions—pushed the month-on-month inflation rate,” the National Statistics Office said.
The agency added that the prices of gasoline and diesel continued to soar during the month. “Tuition fee hikes, increments in the prices of school supplies, textbooks and medicines, increased transport fares and higher charges for personal services in many regions were also observed,” it added.
The statistics office said all the commodity groups continued to post higher year-on-year inflation rates except for the fuel, light and water index, whose annual growth rate was slower at 7.6 percent in June from 8.2 percent in May.
Annual inflation for food, beverages and tobacco picked up to 16.5 percent in June from 13.6 percent in May; clothing, 4.2 percent from 4 percent; housing and repairs, 4.3 percent from 4 percent; services, 9.9 percent from 7.8 percent; and miscellaneous items, 2.9 percent from 2.7 percent.
Prices for food alone rose to 17.4 percent in June from 14.2 percent in May.
Annual inflation of rice was higher at 43 percent in June from 31.3 percent in May; corn, 34.3 percent from 27.1 percent; cereal preparations, 16.6 percent from 15.3 percent; fish, 10.8 percent from 9.6 percent; fruits and vegetables, 12.5 percent from 10.1 percent; meat, 11.4 percent from 10.4 percent; and miscellaneous foods, 8.3 percent from 7.6 percent.
The Philippines is one of the world’s biggest rice importers and has been hit hard by a worldwide rise in prices.
But slower annual price adjustments were correspondingly seen in dairy products and eggs at 13.5 percent and 7.5 percent from 13.7 percent and 7.7 percent, respectively.
Prices in Metro Manila jumped by 0.9 percentage point, to 9.2 percent in June from 8.3 percent in May, brought about by the higher annual price increases in all the commodity groups except for clothing and food, light and water.
In areas outside the National Capital Region, annual inflation rose to 12.3 percent in June. All the commodity groups posted higher annual inflation rates last month. In May, the inflation rate for the area was 10.1 percent.
Tighter monetary policy
Tetangco signaled the monetary authority’s plan to tighten monetary policy.
“While inflation continues to be influenced by supply-side pressures, there are indications that such pressures have started to feed into demand, with core inflation steadily rising since December 2007,” Tetangco said in a statement.
“Monetary authorities have acted last month to address risks to inflation, and they stand ready to adjust monetary policy settings further as and when necessary to achieve the price stability objective,” he added.
The central bank began tightening its key interest rates last month, for the first time since 2005, after the May inflation figure spiked at a readjusted rate of 9.5 percent.
The overnight borrowing rate rose to 5.25 percent while the overnight lending rate was increased to 7.25 percent, both by 25 basis points. -- With AFP
http://manilatimes.net/national/2008/july/05/yehey/top_stories/20080705top1.html


4. Malaya

Inflation hits 11.4%,highest in 14 yearsCentral bank poised to tighten flow of credit
BY JIMMY CALAPATI
YEAR-ON-YEAR inflation rate surged to a 14-year high of 11.4 percent, with the National Statistics Office saying almost all commodity groups recorded higher prices last month due mainly to the rise in food and fuel prices.
"June inflation rose to double digit on account of the unprecedented jump in world oil prices. As a result, domestic pump price increases triggered large price build-up across wide commodities and service groups," said Amando Tetangco, governor of the Bangko Sentral ng Pilipinas.
"We share the view that current oil and food prices are hardly sustainable, producing global slowdown and widespread inflation in all countries," Tetangco added.
It is the highest recorded rate since May 1994 when inflation stood at 11.5 percent. It was also the first time inflation had hit double digits since January 1999.
The June inflation figure is beyond the forecast range of 10.4-11.2 percent set by the BSP earlier this week. It put the average for the half of the year at 7.6 percent.
The BSP's emerging baseline forecasts, which reflect recent data on inflation and output, suggest that average inflation in 2008 will reach 7 to 9 percent, which is above the government's target of 3 to 5 percent, compared to the actual average inflation rate of 2.8 percent for the whole of 2007.
"This trend is expected to peak during this third quarter and to start coming down in the fourth quarter through 2009," Tetangco said.
"For RP, we should be back to normal cycle by early next year," he added. "Demand pressures will moderate as monetary policy is generally tightened."
BSP, which sets key monetary tools such as interest rates based on inflation, raised overnight rates by 25 basis points last month.
Analysts believe another rate hike is possible when the Monetary Board meets on July 17.
"I think the BSP will respond by raising policy rates," said Edward Teather, an economist at UBS, adding a rise of either 25 or 50 basis points was possible.
"I do think inflation will slow to a single digit next year, but without policy tightening ... it may not fall by enough to reach the central bank's inflation target range at the end of next year."
Vishnu Varathan, at Forecast Pte Ltd said the central bank may opt for a bigger half-point rate rise to dispel any doubts that it had not been aggressive enough in its efforts to contain inflation.
The central bank eased its policy four times last year, helping the economy grow 7.2 percent, a 31-year record, and cut rates again in January.
But as inflation had risen steadily since, racing well past the government's target range of 3-5 percent, the authorities switched to a tightening mode, even as growth tapered to an annual rate of 5.2 percent in the first quarter.
BSP deputy governor Diwa Gunigundo has indicated raising interest rates was not the only way of tightening policy.
Other tools included raising bank reserve requirement ratios or expanding the central bank's special deposit account window, in which banks park funds.
The NSO said local food and energy, the two most prominent items whose prices have been increasing in the past months, have caused other products and services to rise, too.
"At the national level, the annual inflation rate for food alone rose to 17.4 percent in June from 14.2 percent in May," the NSO said.
The soaring prices of rice along with upward adjustments of other food items such as flour and flour products, fruits and vegetables and meat in selected regions pushed the month-on-month inflation rate in the Philippines to 2.3 percent in June from 1.5 percent in May.
All the commodity groups continued to post higher year-on-year inflation rates except for fuel, light and water index whose annual growth rate was slower at 7.6 percent in June from 8.2 percent in May.
Annual inflation for food, beverages and tobacco picked up to 16.5 percent in June from 13.6 percent in May; clothing, 4.2 percent from 4 percent; housing and repairs, 4.3 percent from 4 percent; services, 9.9 percent from 7.8 percent; and miscellaneous items, 2.9 percent from 2.7 percent.
Annual inflation for rice was higher at 43 percent in June from 31.3 percent in May; corn, 34.3 percent from 27.1 percent; cereal preparations, 16.6 percent from 15.3 percent; fish, 10.8 percent from 9.6 percent; fruits and vegetables, 12.5 percent from 10.1 percent; meat, 11.4 percent from 10.4 percent; and miscellaneous foods, 8.3 percent from 7.6 percent.
Prices of gasoline and diesel continued to soar during the month.
Tuition hikes; increments in the prices of school supplies, textbooks and medicines; increased transport fares and higher charges for personal services in many regions were also observed.
All these factors contributed to the 4 percent acceleration in the services index in the Philippines, the NSO said. - With Reuters
http://www.malaya.com.ph/jul05/news1.htm



5. Manila Bulletin

RP’s 1st container ship launched


GMA christens ‘MV Argolikos’ at Subic rites RP’s first big ship christened, launched at SubicJonas Reyes, Genalyn D. KabilingSUBIC BAY FREEPORT – "I name this vessel Argolikos, and may God bless this vessel and all who sail in it."
With these words, President Gloria Macapagal Arroyo christened the first Philippine-made container vessel built by Korean shipbuilding giant Hanjin Heavy Industries Corp. Philippines (HHIC-Phil.) in this premier freeport yesterday.
President Arroyo led the naming ceremony for the MV Argolikos, named after the Argolic Gulf on the east coast of Peloponnese in Greece.
"Congratulations to Hanjin for this milestone achievement in shipbuilding," she said.
The President also congratulated the Dioryx Maritime Corporation for buying the first ship from Hanjin-Philippines, adding that this is just the first of six cargo ships that the company has ordered amounting to around half a billion dollars.
"Today, we see the first fruit of Hanjin’s investment in this shipyard and we are elated and proud. Hanjin is helping secure our country’s place as an attractive investment destination. It is a display of our countrymen’s skills and work ethic," Mrs. Arroyo said.
The President said the MV Argolikos, estimated at $ 60 million, is a "marvelous showcase of sound engineering and design" after it was completed six months ahead of schedule. The vessel is 258.9 meters long, 32 meters wide, 19 meters high, and sails at 24.6 knots.
She congratulated the Filipino workers who helped build the large container ship, saying Filipinos are now known as brilliant builders of sea vessels apart from being just first-rate seamen in the world.
"It brings pride to its creator. It brings pride to us as the host of its creation. The MV Argolikos shows off to the whole world the excellence of the Filipino workforce in building vessels sailing the seven seas," she added.
Despite complaints about the death of some workers, dislocation of communities, and degradation of environment in some parts of Zambales, the President praised Hanjin for its sustained investments in the country, including its planned shipyard operations in Mindanao.
Mrs. Arroyo recalled that Hanjin built its $ 1.7-billion shipyard in Subic in June, 2005, which gave "a massive boost" to the country’s bid to be the best value for investment in Asia.
"We are happy to hear that at the end of the day, Hanjin will have created at least 21,000 new jobs here," she said.
The President said she looks forward to the five other ships that will be built at the Hanjin shipyard.
She added that Hanjin’s presence at the ClarkSubic corridor has helped it become a competitive logistics hub in the region. The Clark-Subic corridor, located along the Luzon Urban Beltway, generates 55 percent of national economic production.
"The biggest challenge of this beltway is to remain competitive," she said, citing the development of the Subic-Clark expressway, Clark International Airport, and the Subic International Airport.
In the same ceremony, Hanjin donated P1.2 million to the victims of typhoon "Frank" that struck the Philippines two weeks ago.
Subic Bay Metropolitan Authority (SBMA) Administrator Armand Arreza said that the launching of the biggest ship made in the Philippines is an indication that Subic Freeport is geared to becoming the country’s premier shipbuilding and ship repair area.
SBMA Chairman Feliciano Salonga said that after the christening, the 41,000-ton container vessel will be delivered to Dioryx Maritime Corp. Chairman Dimitri Papadimitriou.
Also on hand for the occasion were Korean Ambassador Jong Ki Hong and Greek Ambassador Georges Chrysostomos Nicolaidis.
The two ambassadors were welcomed at the Hanjin shipyard by HHIC-Phil Chairman Nam Ho Cho, HHIC-Phil President Jeong Sup Shim, Secretary Edgardo Pamintuan of the Subic-Clark Alliance for Development (SCAD), Zambales officials, and SBMA officials led by Salonga and Arreza.
The ship underwent the required sea trials on May 27-29, and "performed well beyond expectations," said Pyeong Jong Yu, head of HHIC-Phil’s Outside Business Department.
Yu also said that prior to the sea trial, the vessel had been issued an attestation from the Bureau Veritas, a vessel certification agency.
Hanjin has secured for the ship a Cargo Ship Safety Equipment Certificate, a complete crew list, and a certificate of competency for the Korean crew from the Busan Regional Maritime Affairs and Fisheries Office, Yu added.
Salonga said the MV Argolikos made local maritime history when it was completed six months ahead of schedule after the keel was laid in September last year.
He added that while Cebu was ahead of Subic in shipbuilding, after its Japaneseowned shipyard in Balamban began building ships in 1994, the largest ships will be built in the Subic Bay Freeport.
"This is where big ships for export to other countries will be made," he said.
Salonga also said that the Argolikos is the first of six units of container vessels lined up for delivery to Dioryx starting 2009.
He added that HHIC-Phil is also eyeing the manufacture in Subic of some of the largest container ships in the world, with gross tonnage of more or less 100,000 tons.
President Arroyo ended her speech with "Kamsahamida!" which simply means thank you in Korean.
http://www.mb.com.ph/MAIN20080705129021.html


6. The Daily Tribune

Joc-joc extradition only after final US court’s ruling—DoJ

07/05/2008
Not even the tiny finger will be lifted by the Department of Justice (DoJ) in any move to get former Agriculture Undersecretary Jocelyn “Joc-joc” Bolante, who stands accused of having diverted public funds into the campaign kitty of President Arroyo in 2004, during the presidential campaign period, extradited or deported until a United States court rules with finality on Bolante’s bid to seek political asylum.
Bolante has been under detention in a Chicago jail for the past two years while waiting for a court ruling on his petition which has been denied twice by the US Immigration Court.
Justice Secretary Raul Gonzalez also said the freeze order on Bolante’s accounts cannot be used by him as basis for Bolante’s extradition.
Gonzalez said, in an interview yesterday, that the Court of Appeals (CA) order freezing 70 bank accounts and insurance policies believed to be owned or acquired by Bolante during the course of the infamous P728 million fertilizer fund scam, cannot be used as evidence to prove that the former Arroyo official is being politically persecuted.
The Justice chief added that money laundering is a criminal offense and the government is only doing its duty to go after suspected money launderers.
“The ruling of the CA cannot be used as evidence that he
(Bolante) is being politically persecuted. The action of the AMLC (Anti-Money Laundering Council) is not political per se, as money laundering is a world wide offense,” Gonzalez said.
Gonzalez, however, failed to explain why the Arroyo government cannot seek the extradition or deportation of Bolante, in the face of the AMLC and CA’s findings that indeed, there is probable cause in believing that Bolante had dummy accounts and foundations, where huge amounts of monies were deposited and transferred on the same day to different accounts.
The US government was ready to deport Bolante, but he chose to be imprisoned while waiting for the US court to rule on his petition.
Bolante is not being charged with a criminal offense in the US other than his entering the US without a valid visa which calls for the deportation of the person.
There is nothing to stop the DoJ to seek his deportation or his extradition, given the Mutual legal treaty enjoyed by the two countries.
But the DoJ chief stressed: “We will not initiate any extradition until his immigration case in the US is finally settled. You don’t have to extradite him if he was denied in the US; It will ipso facto send him away because he is not entitled to stay in the US. His request for asylum has been denied so he has no legal basis as far as the US government is concerned, to stay there,” he said.
Bolante is perceived by the Filipino public as having been protected all this time by Mrs. Arroyo, to ensure that he would not be spilling any fertilizer beans that would necessarily implicate the President.
Despite the documentary and testimonial evidence gathered by the Senate during its fertilizer fund hearing, which were given to the Ombudsman with the Senate’s recommendation for the Office of the Ombudsman to charge Bolante and other assistant secretaries with plunder, the Ombudsman to this day, has not pressed charges against Bolante.
Presiding Justice Conrado Vasquez Jr. granted the petition of the AMLC to the 17 banks and insurance companies to freeze the 70 accounts as well as the related web of accounts “wherever these may be found.”
Among those frozen were 23 bank accounts under the name of Bolante, the alleged culprit in the diversion of P728 million in fertilizer funds to finance the presidential campaign of Mrs. Arroyo in the last presidential polls.
“The Court finds that petitioner AMLC was able to establish probable cause that an unlawful activity has been committed by the aforementioned individuals and entities and that the subject accounts are related to such an unlawful activity,” Vasquez and the two other members of the division, Associate Justices Lucas Bersamin and Pampio Abarintos, ruled.
The CA ordered the banks not to allow any transaction related to the accounts and for them to submit a detailed report of their status and other pertinent information within 24 hours after receiving the Court’s order.
A summary hearing has also been set on July 8 to determine if the freeze order would be modified, lifted or extended.
Earlier, in March 2006, the Senate sent the AMLC a copy of a legislative inquiry report naming Bolante as the instigator of the scam.
Sometime in 2006, the AMLC initiated an investigation upon receiving 12 “suspicious transaction reports” from the Philippine National Bank (PNB).
A Makati City court reportedly allowed the AMLC to inquire into the deposits and investments two months later, GMA TV website said.
The AMLC then sent 1,696 letters to the various banks and financial institutions requiring them to submit reports of the transactions made by the covered accounts.
It is still not known if there is money left in the accounts and how much has been left in these banks.
The CA cited a finding by the AMLC that in the PNB accounts alone, a firm identified as Livelihood Corp. where Bolante was acting chairman, transferred in April 2004 the sum of P172.6 million to the accounts of Molugan Foundation Inc. and another P40 million to the account of the Assembly of Gracious Samaritans Foundation Inc.
Molugan then transferred P38 million to the AGS account. As learned by PNB, the transactions had “no underlying legal or trade obligations, purpose of economic justification” and were “not commensurate with the business or financial capacity” of Molugan and AGS, which are capitalized at only P50,000 each.
One Samuel Bombeo was also found to be a signatory in the accounts of the two foundations, which was deemed suspicious. There was a total of 12 accounts appearing under Bombeo’s name and two other individuals with the same surname.
Bolante fled to the US after being summoned to a Senate committee investigating the anomaly.
On June 25, the Chicago immigration court and the Board of Immigration Appeals junked Bolante’s petition for political asylum.
With PNA
http://www.tribune.net.ph/headlines/20080705hed1.html



7. Abante

TAAS PASAHE APRUBADO!
Nina NOEL ABUEL at ERALYN PRADO
Base sa pahayag kahapon ni Land Transportation Franchising and Regulatory Board (LTFRB) chairman Thompson Lantion, ipinahiwatig nito na “approved in principle” na ang hinihiling na dagdag pasahe sa jeep at taxi.
Sa isang panayam kay LTFRB chairman Thompson Lantion sa isinagawang pagdinig kahapon hinggil sa naturang petisyon ng mga taxi, jeep at bus operators at drivers ay siniguro nito na maibibigay ng ahensya ang hinihinging P10 sa singil sa taxi at P1 naman sa jeep sa loob ng 10 araw.
Sinabi ni Lantion na wala itong nakikitang masama sa hiling ng mga taxi operators ng grupong Association of Taxi Operators in Metro Manila (ATOMM) para sa nasabing fare hike para sa may 24 units ng taxi sa Kalakhang Maynila gayundin sa iba pang bahagi ng bansa.
Ngunit nilinaw ni Lantion na ang P10 dagdag sa taxi ay idadagdag lamang sa total fare sa taxi sa bawat biyahe ng isang pasahero.
Narito naman ang magkakaibang reaksyong inisyal na nakalap ng Abante kahapon sa verbal na pag-apruba ni Lantion sa dagdag pasahe sa jeep at taxi:
Ricardo Reyes, jeepney driver: Ok sa amin ‘yan, malaki ang maitutulong n’yan kasi ang taas na nga di ba ng presyo ng gasolina kaya halos wala na kaming mauwing pera sa bahay namin.
Medardo Bilanso, taxi driver: Kung para sa amin talaga ‘yang P10 dagdag sa flag down (total fare) eh salamat naman kasi ang hirap ng buhay sa ngayon.
Malou Doroy, gov’t employee: Wala namang problema kung dadagdagan ng P10 ang pasahe sa taxi kasi parang wala namang bago du’n kasi madalas pag alanganin ang metro ng taxi mo ay wala nang suklian.
Fidel Dilomen, laborer: Malaking bagay sa amin ang P1 kaya kung magdadagdag na naman sa pasahe sa jeep ay baka maglakad na lamang kami.
Richard Toledo, private employee: Wala na talagang pag-asa pa na bumaba ang lahat ng bagay at kawawa kami na mga manggagawa na sa kabila ng maliit na suweldo ay napupunta lamang sa panggastos sa pasahe.
Bunga naman ng lingguhang paglobo ng halaga ng produktong petrolyo, determinado ang neophyte solon ng Makati na si Rep. Marlen Abigael Binay na gawing abot-kaya sa publiko ang bagong electricity-powered jeepney o e-jeep na inaprubahan kamakailan ng Land Transportation Office (LTO) na bumiyahe sa Makati City bilang isang pampasaherong sasakyan.
Bukod umano sa malaking kabawasan ito sa konsumo ng langis dahil hindi ito gumagamit ng petrolyo bagkus ay pinatatakbo ng elektrisidad, malaking kabawasan din umano ito sa polusyon.
http://abante.com.ph/issue/july0508/default.htm



8. Abante-Tonite

LAHAT NG BUTAS PINAGPARAUSAN!
Aries Cano

Ito ang isiniwalat ng nakatatandang kapatid na babae ng isang 16-anyos na first year student ng Polytechnic University of the Philippines (PUP) na dumulog sa pulisya at ibinunyag ang umano’y gang rape na nangyari sa kanya sa campus ng naturang state-owned university sa Sta. Mesa, Maynila.
Nabatid pa, batay sa salaysay ng kapatid ng biktima, na hindi lang isang beses kundi tatlong magkakasunod na araw mula Hunyo 25 hanggang Hunyo 27 nangyari ang panghahalay.
Sinabi umano sa kanya ng nakababatang kapatid na hindi lamang isang beses nangyari ang umano’y panghahalay. “May kinatatakutan siya, sabi niya may nangyari sa kanya at inamin niyang ni-rape siya mula Hunyo 25 up to Friday. Sabi niya 3 days at kung saan-saang lugar nangyari kasi noong Wednesday may part sa loob ng campus, meron din sa labas. Marami daw ang gumawa, mayroong nakapasok sa bibig, likod at harap kaya paano siya makakasigaw,” dagdag pa ng ate ng biktima.
Sa kabila ng mga nangyari sa biktima, noong Hulyo 1 lamang umano nila ito napaamin kung ano ang nangyayari sa kanya.
“Kasi kahit na sabihin naming tumigil na siya sa school, iyak pa rin siya ng iyak. Kunyari maliligo siya, tapos maya-maya maliligo uli siya kasi sabi niya ang dumi-dumi niya. `Yun ang nag-trigger kung bakit namin siya tinanong kung ano ang problema beside sa takot niya sa pagpasok,” pahayag pa ng kapatid.
Bago pa raw ang insidente ay gumala ang magkakaklase sa loob at labas ng campus.
“Para siyang na-hipnotized, kasi may inuman, may yosi tapos pinilit siyang painumin dahil sa impluwensya ng mga kasama, napilit s’ya. “`Yung pinapainom, malaking tablet may mga umuusok pa, so totally nag-iba na siya nang dumating sa bahay.
Nitong Hunyo 25 nakauwi pa siya pero pangatlong araw totally, nagbreak down na siya at sinisisi niya ang sarili niya, medyo natutulala siya pagkain, pasundot-sundot na lang sa pagkain. Nitong Wednesday (Hunyo 25), balisa na siya pero noong Friday may hinala kami na ‘high’ siya,” dagdag pa ng kapatid na itinago na lang sa pangalang Rhian para mapangalagaan ang identity ng biktima.
Samantala, kinubabawan ng takot at halos takasan ng ulirat ang biktima nang makaharap nito sa piskalya ang mga itinuturong suspek sa gang rape.Ayon kay P02 Virginia Monton, mayhawak ng kaso at nakatalaga sa Women’s and Children Protection Desk, pasado alas-otso ng gabi nang iharap sa piskalya ang mga suspek para sa pormal na pagsasampa ng kasong rape at paglabag sa Republic Act 7610 o Anti Child Abuse Law at nang makita umano ng biktima ang apat nitong kaeskuwela partikular na ang 15-anyos na babae na sinasabi nitong nagbugaw sa kanya ay bigla na lamang itong nanginig sa takot.
Dala ng trauma, nilagnat at kinailangan pang isugod sa PGH ang biktima ayon kay PO2 Monton subalit kalaunan ay naka­labas din ng pagamutan at sa kasalukuyan ay nagpapahinga na ito sa kanilang bahay.
Inaasahan din na anumang oras ay ilalabas ang resulta ng isinagawang drug test sa biktima matapos nitong isiwalat na may mga ipinainom sa kanyang tableta at hinihinalang may inihalo ring droga sa ininom nitong alak.
Lumabas naman sa medico legal na positibo at nagkaroon ng penetration sa maselang bahagi ng biktima.
4 suspek pinalaya
Samantala, sa pinakahuling ulat ng pulisya kagabi ay pansamantalang pinalaya ang mga suspek “for further investigation” ni Chief Inquest Nelson Selva ng Manila Prosecutor’s Office.
Kabilang sa mga suspek ang isang 15-anyos na babae at tatlong lalaki na may mga edad na 15-16.
Hindi naman lubos na maisip ng mga suspek kung bakit sila nadadawit sa naturang krimen. Binigyang diin ng mga ito na wala umano silang alam sa pangyayari.
“Tinawag po ‘yung pangalan namin sa harap, tapos nagulat na lang po kami bigla na lang po kaming pinosasan sa classroom. Wala pa po akong isang buwan sa PUP, imposible po ‘yun, bago pa lang po sa PUP at late enrollee pa nga po ako, hindi ko nga rin po alam na may ganun po palang nangyari sa kanya (biktima),” pahayag ng 15-anyos na babaeng suspek.
Dinagdag pa ng mga suspek na nitong Biyernes, Hunyo 27 ay pumasok pa umano sa iskul ang biktima at nang kanila itong makaharap ay masigla pa ito at parang wala naman silang nakikita na masamang nangyari rito kaya laking gulat pa nila ng pati sila ay pagdadamputin ng mga pulis at paratangan na sangkot sa gang rape.
CHED UMAPELA
Samantala, nakiusap naman si Commission on Higher Education (CHED) Executive Director William Medrano sa mga kaanak ng mga suspek na hayaan na munang gumulong ang imbestigasyon para malaman ang katotohanan.
“Nakikiusap tayo sa mga relatives ng mga akusado na kumalma muna. Hayaan muna nating gawin ng mga awtoridad ang kanilang trabaho. Hintayin natin ang resulta ng imbestigasyon,” apela ni Medrano.
Sa panig ng PUP, ipinahayag ng presidente nitong si Dr. Dante Guevarra na hindi pa man sila nakakatanggap ng memorandum na ibinaba ni CHED chairman Romulo Neri ay umaksyon na ang kanyang tanggapan sa nangyari sa biktima sa pamamagitan ng pagsangguni sa pulisya hinggil sa nasabing insidente. (With JB Salarzon)
http://www.abante-tonite.com/issue/july0508/news_headline.htm


9. Pilipino Star Ngayon

Pinapak ng mga isda!Ni Joy Cantos Saturday, July 5, 2008
Mistulang kinain ng piranha ang apat na bangkay ng MV Princess of the Stars na natag­puang wala ng mga ulo, ari at halos buto na la­mang ang natira matapos umanong papakin ng mga isda ng mapadpad sa Aroroy, Masbate.
Sa report ni Insp. Flutarco Margegia, hepe ng Aroroy Municipal Police Station (MPS), tatlo sa mga bangkay ay nakita sa Brgy. Sawang at ang wala ng aring bangkay ng lalaki ay natagpuan na­man sa bahagi ng kara­gatan ng Brgy. Matungod naturang bayan.
Hindi na makilala ang mga bangkay at naaag­nas na kaya nagpasya ang mga opisyal doon na ilibing na dahil napaka­baho na at posibleng magdala pa ng sakit sa mga residente ng Aroroy.
Samantala, 10 pang bangkay ang narekober sa bahagi ng karagatan ng Sibuyan Island kung saan umaabot na ngayon sa 28 ang narekober sa lugar.
Una rito ay 20 bang­kay ang inanod sa dala­wang magkahiwalay na isla ng Romblon nitong Huwebes ng umaga. Ito na ang pinakamaraming bilang ng mga patay na natagpuan sa probinsya sa loob ng isang araw. Paniwala ng ilang resi­dente, nagbago kasi ang ihip ng hangin kaya na­padpad dito ang mga bangkay.
Problema ngayon ng mga lokal na opisyal ang banta sa kalusugan na dulot ng mga nabubulok na bangkay. Ayon sa kanila, kung hindi ito makukuha agad ng Coast Guard at Sulpicio Lines, mapipilitan silang ilibing ang mga katawan.
Batay sa tala ay uma­abot pa lamang sa 56 ang mga nakaligtas mula sa naturang trahedya at daan-daan pa ang nawa­wala.
Lulan ng barko ang 826 pasahero at crew ng maganap ang sakuna.
http://philstar.com/index.php?Bansa&p=50&type=2&sec=54&aid=20080704104


10. Journal

CHARGED
By: Hector Lawas
Raps filed vs alleged plotters
CHARGES were filed yesterday at the Quezon City regional trial court against lawyer Homobono Adaza and four others for allegedly trying to extort $4 million from a Japanese businessman to bankroll a coup against the government. Adaza and his alleged cohorts were specifically charged with proposal to commit coup d’etat, obstruction of justice by harboring a fugitive and using fictitious name or concealing true name. Chief State Prosecutor Jovencito Zuno approved the recommendation of Senior State Prosecutor Emmanuel Velasco for the prosecution of the coup suspects. Aside from Adaza, also named in the charge sheet were Col. Oscarlito P. Mapalo, Col. Ernie A. Amboy, Col. Cesar A. dela Peña and Col. Rafael A. Cardeno. Dela Peña meanwhile posted P120,000 bail for his temporary liberty on the illegal disposition of firearms charge filed against him eight years ago. De la Peña was charged by the Office of the Ombudsman with illegal disposition of firearms over the loss of a shipment of 72 units of Heckler and Koch MP5 cal. 9mm sub-machineguns in June 2000. Dela Peña however will not go free despite having posted bail in the firearms case due to his involvement in the alleged new coup plot. “The concerted act of the respondents in their proposal to Mr. (Monotori) Sakuma through M. Laurilla to finance a coup detat during the aforesaid entrapment operation clearly makes them probably liable for the offense of proposal to commit coup detat penalized under Art. 136 of the Revised Penal Code,” the prosecution said. The panel also said a probable cause also exists against Adaza, Mapalo, Amboy and Dela Pena for the crime of violation of PD 1829 for harboring Cardeno who has a standing warrant of arrest for murder. Cardeno was also accused of using a fictitious name when he introduced himself as Randy Marbella. Sakuma’s lawyer Raymund Fortun disclosed the coup plot to P/Supt Asher Dolina of the CIDG. The Japanese’s assistant, Joanne Maria J. Laurilla corroborated Fortun’s story. A entrapment operation was subsequently conducted during which yielded Adaza and the other suspects were arrested.
http://www.journal.com.ph/index.php?issue=2008-07-05&sec=1&aid=65495


11. Business World

BY BENJAMIN V. BUCO, JR., Researcher
Costlier food, fuel push June consumer prices to 14-year high
Soaring food and fuel prices brought consumer prices to their highest level in 14 years, according to government data released yesterday.
A report by the National Statistics Office (NSO) showed inflation rate was at 11.4% in June, higher the monetary authorities’ original forecast of 10.4% to 11.2%. The headline inflation rate was almost two percentage points higher than the revised 9.5% rate for May. It was also much higher than 2.3% year-on-year. Core inflation, which excludes volatile food and energy prices, meanwhile, also increased to 6.6% from May’s 6.2%.
In particular, the NSO noted the impact of high rice prices to the double-digit inflation. At the national level, food prices, which are about half of the consumer basket, climbed to 17.4% from 14.2% in May.
Among food items, the cost of rice posted a significant increase at 43% from May’s 31.3%. "The soaring prices of rice nationwide along with the upward adjustments of other food items such as flour and flour products, fruits and vegetables and meat and selected regions pushed the month-on-month inflation rate in the Philippines to 2.3% in June from 1.5% in May," reported the NSO.
Expected
Economists shave expected the double-digit increase in the June headline inflation. This, they said, should force the central bank to consider raising interest rates to "contain the adverse effects of high inflation."
"The BSP (Bangko Sentral ng Pilipinas) has already said that it was expecting a higher inflation. In effect, investors were already prepared that’s why we didn’t see the market react so much [yesterday]. Nevertheless, the figure was disappointing," noted Doreen Mijares, an economist at IGC Securities. "I think [higher inflation] will be the trend up to the third quarter."
Fernando T. Aldaba of the Ateneo de Manila University said, "Oil continued to hit record highs in June. Then there was typhoon Frank. It’s really expected that consumer prices had climbed that high. If oil prices won’t ease, inflation [would] remain relatively high in the months ahead."
Speculation in the world market pushed oil prices to a record-high $145 per barrel this week. This has forced increases in local pump prices for the oil companies to recover losses from higher oil prices.
On the impact of high fuel prices, acting Socioeconomic Planning Secretary and National Economic Development Authority Director-General Augusto B. Santos, said, "Fuel increased from 18.2% to 22%% while transportation and communication increased from 8.6% to 12.4% as Dubai oil prices for June reached $127.82 per barrel from $119.50 per barrel in May, a significant increase of about $8 per barrel."
Aside from higher oil and food prices, Mr. Santos said tuition adjustments also contributed to the high inflation figure.
He said June prices brought the average inflation for the first half to 7.6%, which is "still within the target of the [central bank’s] projection of 7.9% for the whole year."
The NSO said all commodity groups, except for the fuel, light and water index, recorded higher inflation figures, with food, beverages and tobacco experiencing the biggest jump. Meanwhile, the following items were also costlier: clothing (4.2% from 4%); housing and repairs (4.3% from 4%); services (9.9% from 7.8%); and miscellaneous items (2.9% from 2.7%).
In Metro Manila, inflation was 9.2% from 8.3% in May. Areas outside Metro Manila, meanwhile, also posted higher consumer prices, except for Calabarzon (Cavite, Laguna, Batangas, Rizal and Quezon).
Prices outside the National Capital Region reached as high as 12.3% from 10.1% in May. Higher annual inflation rates in all commodity groups were also observed in these areas. Ateneo’s Mr. Aldaba said the central bank is pressured to increase interest rates to contain inflation risks.
"[The central bank] has to address the negative economic impact of inflation otherwise the poorer sectors of the society will suffer. Inflation is anti-poor," he said.
The policy-making Monetary Board is expected to meet on July 17 to decide whether or not to increase interest rates.
Key rates were raised by 25 basis points in May to 5.25% for overnight borrowing and 7.25% for overnight lending. Analysts expect the regulator to raise overnight borrowing rate by 50 to 75 basis points.
"As expected, June inflation rose to double-digit [level] on account of unprecedented jump in world oil prices. As a result, domestic pump price increases triggered large price buildup across wide commodities and services groups," Bangko Sentral ng Pilipinas Governor Amando M. Tetangco, Jr. told reporters in a text message.
However, Mr. Tetangco said demand pressures will moderate as monetary policy is generally tightened.
Mr. Tetangco also said inflation is likely to peak during the third quarter, after which it will start coming down in the fourth quarter through 2009.
"We should be back to the normal cycle by early next year," he said.
Government response
Meanwhile, Cabinet Secretary Ricardo L. Saludo said the government is undertaking measures to soften the impact of high prices.
"The government has been working with the private sector and especially the industry leaders, the oil companies, the power sector, to try and minimize as much as we can the impact of global escalation of oil prices on our domestic inflation," Mr. Saludo said. In a statement, Deputy Presidential Spokesman Lorelei C. Fajardo said the government will continue to go after individuals who take advantage of rising prices.
"The government will not tolerate hoarders and vultures that prey on our consumers� We urge all sectors of society to help in government’s effort to conserve on fuel. We urge our food manufacturing sector to be sensitive to our consuming public," she said. Mr. Saludo noted the need to increase production of food, conserve energy and develop alternative and indigenous energy sources.
"Another concern of course is the direction of the peso-dollar rates," he said. "If food production and energy conservation and development will proceed as we wanted to proceed then there is no reason why we should not be able to weather the current crisis and continue to grow the economy and create jobs and a better life for our people." — with Gerard S. dela Peña and Alexis Douglas B. Romero
http://bworldonline.com/BW070508/content.php?id=001


12. Business Mirror


II.POLITICAL

Villar reports on committee hearings in 1st regular session


Hannah L. TorregozaSenate President Manuel Villar Jr. yesterday said the Senate was able to conduct a total of 372 committee hearings during the first regular session of the 14th Congress.
Villar said these included the various Senate committees’ public hearings, technical working groups (TWG), and meetings, with the Senate Finance Committee being the most active.
As a result of the senators’ hardworking stand, eight laws have been passed and approved by Malacañang. These are the General Appropriations Act of 2008; the Cheaper Medicines Act; An Act to Strengthen the University of the Philippines as the National University; the Magna Carta for Micro, Small, and Medium Enterprises; An Act to Extend the Utilization Period of the Agricultural Competitiveness Enhancement Fund; An Act Allowing Filipino World War II Veterans to Continue Receiving Philippine Government Pensions and Benefits Notwithstanding Similar Pensions and Benefits Provided by the United States; and An Act Creating the Civil Aviation Authority of the Philippines.
The finance committee, chaired by Sen. Juan Ponce Enrile, had 46 hearings and meetings, including a bicameral meeting.
The Blue Ribbon Committee, chaired by Sen. Alan Peter Cayetano, conducted 22 investigative hearings and technical working groups (TWGs) which included the probe into the controversial 9-million National Broadband Network (NBN) project, the "Hello, Garci" tape, and the alleged payoffs given by Malacañang to local chief executives.
The Education Committee had 22 hearings while the Committee on Justice had 18; the Committee on Banks, 18; Foreign Relations, 15; Defense, 15; Environment, 14; Health, 14; Ways and Means, 12; Trade and Commerce, 12; Cooperatives, 12; Urban Planning, 11; and Public Order and Illegal Drugs, 10 hearings.
At least 10 of the 17 oversight committees conducted a total of 24 meetings, hearings, en banc sessions, and briefings.
Villar also reported that a total of 78 committee reports were filed during the First Regular Session.
http://www.mb.com.ph/MAIN20080705129028.html