MY FIRST DRINK, SMOKE

By Philip M. Lustre Jr.

I'd be very, very honest with everybody. Lest somebody think I was a paragon of virtue during my formative years, I am going to say in all candor that I wasn't. I drank; I smoked; I gambled.

But I have no regrets. This would probably set me different from the rest of the world. I didn't regret learning any or all those things.

I learned smoking at 15. I was in third year high school when, from out of the blue, I bought cigarettes. Perhaps, it was an impulse. Perhaps, I was starting to assert my own distorted sense of masculinity. 

From my meager allowance, I bought several sticks of Marlboro, which was then a brand of choice during those days. I liked the taste and, henceforth, I smoked for a while.

I tasted different brands: Lucky Strike, Spud, Newport, Chelsea, Piedmont, Ice Cold, etc. Later, I took brands like Philip Morris, Winston, Hope, More, and the imported ones - Salem, Union, Chesterfield, and Pall Mall, which dominated the market. I stuck to Marlboro like a leech.

When I was about to finish my college education, I developed a smoker's cough, which became a throat infection. Like Scarlet O'Hara, who, in the movie "Gone with the Wind," vowed she would never get hungry again, I threw my lighter and cigarettes into a garbage bin and vowed that I would never get that throat infection again. I have been a non-smoker for more than 40 years.

Just like any other guy, I learned drinking in high school. I was in third year, when my friends in fourth year introduced me to the "spiritual world." Tanduay (or lapad) was our drink of choice, although we weren't averse to Ginebra San Miguel (or bilog). 

We used to mix Ginebra with beer to concoct the so-called "virgin.' This was the forerunner of Red Horse or Colt 45, which are now the stronger mix.

My fourth year high school friend was my drinking buddy. His family owned a restaurant in front of our school and he invited me several times to their place to drink. I was told that my friend is now a Christian pastor, who performs ministerial works abroad. We have yet to have a reunion.

I also gambled during my high school days. From those small bets during our rounds of billiard games with my classmates, I graduated to what you could call the bigtime. 

Together with some adventurous characters in high school (especially those from the other high school in UST), I went to sakla and pula-puti joints and did some betting. I almost lost my shirt during those brief sojourns.

I also joined my classmates to San Lazaro and bet on our favorites racehorses. Later, when bomba films became vogue, we went to Malabon to watch bomba films - all in the name of adventure and fun. I always manage to smile every time I recall those halcyon days.

I didn't know how I survived those adventures. Perhaps, I knew my goals in life. Perhaps, I wasn't destined to destroy my life. Perhaps, God loves me. 

I still drink with close friends once in a while and place a modest bet on my favorite racehorses. But I'm happy that I didn't become a smoker, a heavy gambler, or an alcoholic. I am none of the above. 

In hindsight, which is always 20/20, I am deeply convinced that God loves me.

PREMATURE BALDNESS

By Philip M. Lustre Jr.

This was something that went beyond my control. It happened so fast; I could hardly do anything. By age 30, my hairline had receded. I lost plenty of hair. I couldn't explain all those fallen hair strands except to think it was basically a tragedy of genes.

My late father and his three other brothers had the same fate - and pate. All had receding hairlines. My father had the worst case among the brothers. By his own account, he lost hair by mid-20s. By 30, his balding head was a glowing reality.

Well-meaning friends had aired a cacophony of advice to minimize the negative impact of my balding head. A friend advised me to apply herbal oils before I go to bed mainly to stimulate hair regrowth. Another friend told me to buy the latest craze for hair regrowth, which is Minoxidil. Others gave me forgettable pieces of advice.

But I have a friend who offered to give me a toupee for free. That friend, who also had premature balding and, ergo, wears a toupee, told me in no uncertain terms that he "commiserated" with the early disappearance of my hair. As a gesture of goodwill, a toupee free of charge was for me to take. It was a gesture that I flatly rejected.

I guess my friend and I were of different wave length. I didn't think - and, until now, I do - that a balding head is something that I should be ashamed. I've not been narcissistic to think that way. So what if my head is balding? It doesn't mean the end of the world.

I couldn't imagine myself wearing a toupee, while people behind me whisper on how unattractive that dead rat's hair over my head. Besides, I don't really feel insecure with my shining pate. I always rationalize that with or without hair, the world won't stop revolving anyway. Should I worry?

Because of my stubborn refusal to wear any toupee or apply any concoction for hair regrowth, friends always tease me. They call me names. "Rambo" (for sirang buhok), "Arabo" (for walang buhok), "Aga" (for maagang nalugas) are just some. But I always take them in stride. I don't recall any incident when I lost my cool because of those namecalling, which I always view as bantering.

I've also developed some humorous ways to rationalize my fate. Once a lady friend tactlessly asked why I lost hair, I told her with a poker face and a tongue in cheek that I mistook my sister's feminine wash for hair shampoo. I didn't know that the consequence for this oversight could be catastrophic.

For the past twenty years, I've been sporting the skinhead hair style (or semi-calvo). It's not because I am an admirer of anything Nazi or Neo-Nazi. But a semi-calvo hair has been very practical for me. 

First, I don't have problems with dandruff. Second, I don't have to bring a man's comb in my pocket. Besides, I don't really have to worry about the barbershop I have to go for a haircut because I am always sure that any barber can do it with justice.

Lately, I've not been getting the usual dosage of namecalling and bantering from friends. Perhaps, they've gotten used to my semi-calvo hairstyle. Perhaps, I'm getting old and any old man deserves some respect. 

Or perhaps, they see some nuggets of wisdom in my decision to keep as public as possible my balding head. But whatever, I'm always happy with my fate. 

It's not a curse as what most people think.

COUNTERREVOLUTION BY SUPREME COURT

By Philip M. Lustre Jr.

LAWYER MEL Sta. Ana, law dean of Far Eastern University, one of the country’s prominent schools of legal education, said it right when, in an FB post, he said the following: “From an institutional context, there is an emerging public perception, rightly or wrongly, that the Supreme Court, instead of encouraging accountability, is fomenting impunity.”

To substantiate his opening statement, Atty. Mel, who counts on prominent lawyers Jovito Salonga, Neptali Gonzales, Crispin Baizas, Antonio Abad, and Commission on Elections chair Andres Bautista as among his predecessors, said the following: “Consider the case of former President Joseph Estrada. Choosing whether he was granted absolute pardon, which will negate liability, or conditional pardon, which will reinstate the criminal penalty for plunder in case of violation, the Supreme Court chose absolute pardon.

“[Take] the case of Ilocos Sur Rep. Ronald Singson who was caught in possession of illegal drugs and was jailed in Hongkong. Deciding whether or not such act was a crime involving moral turpitude enough to expel a public official from his office, the Supreme Court decided that it was not.

“Then came [Mayor Jejomar Binay Jr.] case, involving the “Condonation Doctrine” which says that a re-elected official is already considered administratively forgiven for his past wrong-doing and cannot be suspended/expelled from his present position. The Supreme Court abandoned the doctrine but nevertheless exempted Binay from its application.

“In the [Juan Ponce Enrile]-bail case - no less than one Justice, with whom three others agreed , dissented from the majority decision and made observations such as ‘special accommodation,’ ‘selective justice,’ ‘unique, special and exceptional’ treatment and more seriously, ‘impunity’. Associate Justice Marvic Leonen said:

“‘Our collective liberty, the kind that ensures our collective meaningful existence, is put at risk if justice is wanting. Special privileges may be granted only under clear, transparent and reasoned circumstances. Otherwise, we accept that there are just some among us who are elite. Otherwise, we concede that there are those among us who are powerful and networked enough to enjoy privileges not shared by all.

"’This dissent rages against such a premise. It is filled with discomfort with the consequences of the majority’s position. It cannot accept any form of impunity.’"

As parting shot, Atty. Mel said: “With the Supreme Court decision exculpating GMA of plunder, the SC has its hands full in persuading all, not just the followers of GMA, that the decision is fair and square. Indeed, it may, in fact, be so, but that is just the SC's burden, especially with four (4) dissenting opinions.”

Atty. Mel wrote a profound critique of the several controversial decisions of the Supreme Court. To his credit, he described on what could be regarded the restoration of the culture of impunity that once ravaged this country, a restoration that is now taking place with the help of the Supreme Court.

I would like to go farther than what Atty. Mel has expounded in his post, which, although brief, is direct, candid, and meaningful.

I maintain that what is taking place is a counterrevolution. It is going back to the ways of the old. It is the restoration of the same order, where the plunderers and other parties that had earlier raided the national treasury are getting back in power.

The counterrevolution is not being led by the incumbent president, or any other party in power. It is being led by the Supreme Court, which, as an institution and a bedrock of our restored democracy, has rendered controversial decisions that have raised more questions than clarify the current legal issues.

Strangely, the counterrevolution is led and waged by an institution composed of unelected and unelectable magistrates. Strangely too, the counterrevolution has, as its very center, the judiciary, which, as the third branch of government after the executive and the legislative branches, is regarded the weakest with neither the power of the rod nor the power of the purse to use.

Revolution as a theme in its political developments is not new in the Philippines. The old Partido Komunista ng Pilipinas (PKP), since its birth in 1930, had launched but failed to lead a proletarian revolution intended to destroy the ruling political and economic elite and install the working class as the ruling class.

Its successor, the outlawed Communist Party of the Philippines (CPP), since its birth in 1969 and until now, has been pursuing a “national democratic revolution,” where workers and peasants comprise the main forces of a “people’s war” against the established order. It has the equally outlawed New People’s Army as its military arm and the National Democratic Front as its political arm.

Dictator Ferdinand Marcos had his own concept of revolution, no matter how distorted and self serving. Marcos claimed to have declared martial law in 1972 mainly to pursue his own revolution, which he branded as the “democratic revolution.”

His “democratic revolution” was a “revolution from the center,” meaning the presidency, Marcos said it was meant to crush the conspiracy of the Right, composed of the old oligarchs, who never liked him and sought his downfall, and the Left, or the emerging communist and social democrat rebel forces.

But it was more of a counterrevolution during those days. His “democratic revolution” meant to perpetuate himself in power; his martial law was intended to establish one-man rule. A critic declared it a “counterfeit revolution.”

Hence, his democratic revolution was reduced to an empty slogan, when the people rose as one in the historic 1986 EDSA People Power Revolution to topple his dictatorship. It is hardly the topic of scholarly discussions, as scholars have never accepted it as a genuine revolution.

The People Power Revolution has restored the liberal democracy, the kind the country has inherited from the American colonial rule. The People Power Revolution has restored the democratic structures and traditions, which Marcos sought to demolish through a single stroke of the pen, or when he declared martial law in 1972.

Cory Aquino’s successors did not take advantage of any polemical discussions about revolution and its dynamics. Fidel Ramos provided some lip service to the EDSA Revolution, of which he was one of the major players.

Erap Estrada hardly gave any reference to the EDSA Revolution, not even lip service during his 30 months of incumbency as president. His limited mind could hardly grasp topics and concepts of profound magnitude.

When the Second EDSA People Power Revolution toppled him and took him to prison, Estrada alleged he was a victim of a “conspiracy” of the rich people and civil society. Without the gift of reflection to see things in perspective, Erap has never fully understood what truly struck him during those turbulent days of latter part of 2000 and 2001. He did not even understand why he was imprisoned for five years.

Gloria Macapagal-Arroyo, Erap’s successor, did not give any damn about this concept of revolution. She does not find meaning in that loaded concept. It was enough for her and her husband, Mike, to rule to complete the remaining 42 months of Erap’s term and six years of her own term after she got elected under anomalous circumstances in 2004.

For her, the concept of revolution was almost nonexistent. She hardly gave reference that the very same thing that had put her into power. She never put into practice the mandate of Second EDSA People Power Revolution.

The culture of impunity, which her administration had cultivated to the fullest, was a violation of the mandate of Second People Power Revolution. Instead of pursuing an anticorruption agenda and a revolution in governance, which should be properly viewed as the expression of the people’s will in the Second People Power Revolution, GMA and his cohorts raided the national coffers and entered into various deals that only manifested their corrupt ways. 

It has been estimated that the government had lost slightly over P100 billion in shady deals under the GMA administration. It could be described as revolution in plunder and corruption.

PNoy appeared to have righted the course and launched his own revolution, which he did not describe as such. Tuwid na Landas (Right Path) was his way of pursuing the mandate of the Second People Power Revolution, particularly good governance. The anticorruption theme that dominated his administration was meant to flush the country of its corrupt elements.

Meanwhile, the Supreme Court has been never been an active participant in revolutions, or any political cataclysms of game-changing magnitude. It has been a pious, albeit silent, arbiter of judicial issues, of which its decisions form part of the laws of the land. Its passivity extends to the fact that it only renders decisions on issues that have been brought forth by various parties and concerned citizens.

The Supreme Court, during the premartial law era (1900-1972), has been described as a paragon of virtues and integrity, as it ruled with perceived fairness and equanimity on the many judicial and legal issues brought for its erudite discussions and decisions.

Outstanding jurists like Roberto Concepcion, JBL Reyes, Arsenio Dizon, Calixto Zaldivar, the pair of Pedro Tuazon and Ramon Diokno (father of Jose W. Diokno), who wrote their ponencias in flawless Spanish, are just some who gave honor and prestige to the Supreme Court.

It was Marcos, the dictator, who corrupted the Supreme Court, when it became the defender of the martial law regime – and the dictatorship. The numerous decisions that sustained the dictatorship and even praised it as “the best thing that has ever happened” to the country strengthened the perception that it was not the Supreme Court of old, but an institution composed of the “supreme cowards.”

The current Supreme Court is noted its mishmash of undecipherable judicial doctrines, which are being criticized not just by legal luminaries, but by its own magistrates, who have taken the dissenting opinions, or minority views.

The doctrines posited by the majority are hardly taken as conservative or liberal doctrines, as what could be observed in the U.S. Supreme Court, but doctrines fitted for convenience and restoration of the old order.

By all means, they represent a judicial counterrevolution, or some full swing attempts for reversal of what has been achieved before. It’s sad that the Supreme Court has become an instrument for the restoration of the old elite. It is not forward; on the contrary, it is going backward.

NOTES ON CHINA HEGEMONY

By Philip M. Lustre Jr.

SOMEBODY asked me last Friday about my views on China’s claim of ownership over the vast South China Sea, of which the West Philippine Sea is part, and, of the course, the Permanent Court of Arbitration’s decision dismissing China's ownership claim. 

I am happy to oblige to a legitimate request to express my views and post it on social media. I must express my gratitude to the netizen-friend for the request.

Allow me to provide a historical perspective on China's claim of ownership on almost the entire South China Sea. I once worked in the Manila bureau of Jiji Press, a Japanese news agency. This work experience has afforded me some insights about the issue.

Soviet concern

I remember very vividly way back in early 1981, or 35 years ago, when Alexei Petrov, the Manila-based correspondent of Tass, the official news agency of the then Soviet Union, asked then Foreign Affairs Minister Carlos P. Romulo about his views on the "various concepts" on the proposed settlement of the Spratlys issue. I had a vague idea of ​​the Spratlys issue during those days, but somehow I could sense the deep interest of the Soviet journalists in Manila.

At that time, the Philippine foreign media, as represented by the Foreign Correspondents' Association of the Philippines, or FOCAP, had three Soviet journalists: one worked for Tass; another one for Pravda, the newspaper of the now defunct Communist Party of the Soviet Union; and another for Novosti, a Soviet agency features.

During those days, Western media had hyped the Spratlys, or the tiny specks of uninhabited islands in the middle of the South China Sea, as the next flashpoint of conflict in Asia. Western media was quite prophetic, as indicated by current developments. Incidentally, several countries, including the Philippines, have made claims over that part of the world, triggering tension among claimant-nations.

Western media could not help but describe the Spratlys as a tinderbox mainly because of the 1974 violent clash between the navies of China and Vietnam over the Paracels, another group of uninhabited islands in the South China Sea. The Paracels should not be confused with the Spratlys, which are nearer the Philippines. The Paracels are nearer China and Vietnam; they have conflicting claims on these islands, which, just like the Spratlys, have turtles and seabirds inhabitants.

I could only surmise at the Soviet's interest on the Spratlys issue. At that time, China had not made clear assertions of whatever rights they held on those specks of land, mostly barren rocks in the middle of the vast high seas south of China. China was then trying its best to become a progressive country under the direction of Deng Xiao Ping's leadership.

In 1978, Deng launched the Four Modernizations, a program that sought to rejuvenate the Chinese economy to put China at par with its neighbors. By the 1980s, China was busy strengthening its domestic economy. It was not yet strong. It could not compete yet, but it was determined to learn from other countries to strengthen its domestic front.

At that time, China was locked in a bitter struggle with its neighbor, the Soviet Union, which at that time was composed of 15 republics. It posed a danger to China because it had bitter border issues with Russia, the biggest and strongest republic in the old Soviet Union.

At that time, the world witnessed too the conflict between two superpowers - the old Soviet Union and the United States in what was then termed the "Cold War." They were bitterly locked in an arms race in a bipolar struggle. The old Soviet Union jealously watched the moves of China, which by then had somehow a modus vivendi with the US..

Over the next ten years, not much had happened on the conflicting claims on the Spratlys. The anticipated tension and turmoil did not happen though; it was basically the status quo. In brief, the tension had remained latent in the entire 1980s.

China trip

Let's fast forward to late 1991. I was part of the three-man delegation of Filipino journalists, which the Chinese government had invited for a two-week tour of China's five cities - Guangzhou, Fuzhou, Wu Yi City, Nanping, and Beijing. I was then a senior reporter of the Philippine Daily Globe and political writer of the revived Philippine Free Press, sister publication of the Globe. The other two journalists were the late Chit Estella of the Malaya and Sammy Santos of the Philippine Star. Sammy is now the head of the Senate press office.

By that time, the Four Modernizations, which Deng had launched 13 years earlier, had taken roots and gained momentum. It was in full swing. It could not be denied that China was on the right path. China was making unparalleled and dramatic changes, as indicated by its high annual growth rates.

Our visit there enabled us to converse with Chinese officials about their developmental strategies. They impressed on us China's avowed goal of reaching out to the outside world and become a responsible member of the community of nations.

At that time, I understood that China's development program is premised on peace, not war. That China could reach its development objectives to become a progressive nation through peaceful means was beyond any shadow of doubt.

One Chinese official, ostensibly a ranking member of the Communist Party, told us that a peaceful and stable China was Beijing's contribution to world peace. At first, I did not fully grasp the meaning of his statement. But minutes later, when I was alone in my hotel room, I began to understand the dimensions and implications of his statement.

My mind wandered and some random thoughts immediately came. What if those development initiatives failed and China became unstable? What if a civil strife reared its ugly head on China? I would not be surprised to see the grim scenario of a million or two Chinese refugees landing on Philippine shores. I could only shudder at the idea.

Hence, China's development strategies should be fully supported by the community of nations. The global community would be adversely affected by an unstable China.

The 1990s were quite uneventful too. China did not push its claim ownership over the particular decade. It was not that powerful yet, although the so-called "nine-dash line" is already in existence since 1947 as a basis for saying that it owns a bigger part of the South China Sea, including the Spratlys, Paracels, Pratas Islands, and Scarborough Shoal.

Incidentally, the nine-dash line was originally the "eleven-dash line," which the Guomintang government had advanced in 1947. The Communist Party-led Beijing government had reduced it to nine-dash line upon endorsement by Chinese Prime Minister Zhou En lai. Beijing did not give any reason for the reduction, although it has been observed by maritime experts said the nine-dash line claim lies on unstable ground.

Hawkish faction

China's rise to become a regional power in Asia and eventually a global power could be the reason for its decision to assert its ownership claim on a big part of the South China Sea, including the West Philippine Sea, on the basis of historic rights over the areas covered by the nine-dash line in the South China Sea.

While it was economically and politically weak in the 1980s and 1990s, it chose to stay away from any potential trouble with other countries, opting to wait until it became stronger and more prepared in the 2000s.

Two years ago, Chito Sto. Romana, a keen watcher China, told a media forum that the rise of the militarist faction within China's ruling Communist Party could be the reason for its recent decision to assert its ownership claim over the South China Sea. The militarist faction could have probably thought that China did not face thorough opposition from other countries by the 2000s.

The United States did not take an active role in Asia after it dismantled its military bases in the Philippines. It further took a low profile when it got embroiled in 2005 in a controversy with the GMA administration, which chose to support a Filipino contract worker instead of following Washington's appeal to boycott certain Middle East countries that did not follow the US line on certain Middle East issues .

By the 2010s, China, as its way to assert its claim over the vast South China Sea, has started to establish military presence in the Spratlys by sending its navy vessels there, performing reclamation projects, and constructing airstrips and docks for use of military jets and naval vessels to fortify China's military presence there.

China's military presence and its assertion of "complete sovereignty" over the entire South China, not just the Spratlys and Paracels the way Western media had portrayed the territorial disputes in the 1980s and 1990s, has been a game changing developments in the 2010s that have threatened political stability in the area.

The Philippines's answer to China's muscle flexing was there to bring the issue to the Permanent Court of Arbitration, The Hague-based international non-governmental body that resolves territorial disputes among nations. The Philippines won its case against China when the body handed its decision on July 16 this year. But Beijing has chosen to reject the decision.

Legal setback

The key findings of the Permanent Court of Arbitration:

· The so-called "nine-dash line" is invalid: "The Tribunal concluded that there was no legal basis for China's claim to historic rights to resources within the sea areas falling within the nine-dash line".

· Reclaimed islands have no exclusive economic zone: "The Tribunal noted that the current presence of official personnel on many of the features is dependent on outside support and not reflective of the number of features ... (and) .... that none the Spratly Islands is capable of generating extended maritime zones.

· "The Tribunal found that it could - without delimiting a boundary - declare that certain sea areas are within the exclusive economic zone of the Philippines, because those areas are not overlapped by any possible entitlement of China."

· China has behaved unlawfully. "China had violated the Philippines' sovereign rights in its exclusive economic zone. The Tribunal further held that Chinese law-enforcement vessels had unlawfully created a serious risk of collision when they physically obstructed Philippine vessels."

· Beijing has damaged the environment: China's large-scale land reclamation has "caused severe harm to the coral reef environment and violated its obligation to preserve and protect fragile ecosystems."

· Island building should have stopped during the dispute process: The panel said it had no jurisdiction over military standoff and Second Thomas Shoal, where Chinese and Philippine military and law enforcement vessels are locked in confrontation.

· However, "China's recent large-scale reclamation and construction of artificial islands was incompatible with the obligations on a state during the dispute resolution proceedings, insofar as China has ... destroyed evidence of the condition of the natural features of the South China Sea that formed part of the parties' dispute. "

I personally maintain that the biggest implication of the arbitration tribunal's decision is to stop perceived initiatives of the Duterte administration to shift the Philippine foreign policy from effective deterrence to appeasement on China's hegemony.

It binds Foreign Secretary Perfecto Yasay Jr., a greenhorn in foreign policy, to follow the 513-page decision, which clearly explains China's baseless claim of ownership over the South China Sea.

Hence, the decision does not support any collaborative direction for Philippine foreign policy towards what could be regarded China's expansionist designs over the West Philippine Sea.

It would be extremely difficult for the administration to ignore the arbitration tribunal's decision and veer towards appeasing China without courting serious political repercussions in the domestic front and the international community.

China is bent to ignore the historic decision but not without becoming a pariah in the international community, a development, which does not favor its ongoing initiatives to become a global economic power.

In addressing China's hegemony over the West Philippine Sea, the erstwhile Aquino administration has taken a foreign policy that has been largely characterized by effective deterrence, employing the multilateral approach, where the issue of China's claim of historic rights over the West Philippine Sea was brought to the arbitration tribunal for appropriate decision.

Amid threats and intimidation by Beijing, which has rejected the multilateral approach, the administration rejected Beijing's preference to settle the contentious issue through bilateral discussions between the two countries.

In what could be considered a display of cowardice and acquiescence, the new administration, unmindful of the existing foreign policy initiatives and dismissive of the Aquino administration's inroads, has been seeking ways to transform the current foreign policy into appeasement in exchange for certain foreign assistance for infrastructure projects in the country.

Critics have described the Duterte administration's mindset as mendicancy, plain and simple, and a virtual surrender of its moral high ground to what has been described a rogue state, which is China.

The overwhelming criticisms on the Duterte administration's lack of vigor in its interpretation and pursuit of existing foreign policy has led it to rethink its position and sing a new song to indicate a change its direction. No less than Yasay had indicated the change when he addressed the Asia-Europe meeting in Ulaanbator, Mongolia two days ago.

Hence, the new administration could not ignore the Permanent Court of Arbitration's decision, which is virtually written on stone. Although China has rejected it, Beijing can not ignore it either without courting serious political repercussions in its standing in the international community.

If it insists on its rejection, China could end up a pariah in the world community, as it loses its clout and influence in the community of nations.

Second Tiananmen

Chito Sto. Romana described the arbitration tribunal's decision as an earthshaking decision that could isolate China from the rest of the world, if it ignores and defies it.

If it chooses to reject it, China will meet a new situation that could run parallel or similar to the 1989 Tiananmien Square massacre, where scores of Chinese activists died as a result of the government crackdown on pro-democracy protests there.

The monumental embarrassment that Beijing suffered from that incident was global; China, for sure, does not want it to happen again. China suffered severe isolation and moral sanctions the international community had unleashed on her.

But China could still recover because of indications that it could taking some face saving mode. This is because Beijing would not allow itself to squander the gains it has cultivated over the last 30 years, Sto. Romana told this blogger in an interview.

Despite the heavy polemics spouted by some high ranking Chinese leaders on Beijing's rejection of the arbitration tribunal's verdict, the Duterte administration should evolve new foreign policy initiatives that would help Beijing to find a face-saving exit mechanism on the issue. There are many creative ways to do it. Beijing and Manila could work on moves to demilitarize the area, which in many ways could lessen the tension in that part of the world.

Still, it's Beijing ball game. The ball is in its court. It has to take with grace its legal defeat. The fact is that China was still looking for a gentle way out, where it would not lose face before the international community.

I tend to believe that China would take foreign policy initiatives by its lonesome self to avoid global humiliation and embarrassment.

EFFECTIVE DETERRENCE V. APPEASEMENT ON CHINA’S HEGEMONY

By Philip M. Lustre Jr.

THE DISMISSAL by The Hague-based Permanent Court of Arbitration of China's claim of historic rights over the West Philippine Sea puts a stop on the initiatives of the Duterte administration to shift Philippine foreign policy from effective deterrence to appeasement on China's hegemony.

The dismissal ties the hands of Foreign Secretary Perfecto Yasay Jr., a greenhorn in foreign policy, to chart a more collaborative direction for Philippine foreign policy towards what could be regarded China's expansionist designs over the West Philippine Sea.

It would be extremely difficult for the administration to ignore the arbitration tribunal's decision and veer towards appeasing China without courting serious political repercussions in the domestic front and the international community.

China is bent to ignore the historic decision but not without becoming a pariah in the international community, a development, which does not favor its ongoing initiatives to become a global economic power.

The Philippine foreign policy towards China's hegemony over the West Philippine Sea has been largely characterized by effective deterrence, employing the multilateral approach, where the issue of China's claim of historic rights over the West Philippine Sea was brought to the arbitration tribunal for appropriate decision.

Then President Benigno Aquino III has pursued this policy amid threats and intimidation by Beijing, which has rejected the multilateral approach, preferring to settle the contentious issue through bilateral discussions between the two countries.

The new administration, unmindful of the current foreign policy initiatives and dismissive of the Aquino administration's inroads, has been seeking ways to transform the current foreign policy into appeasement in exchange for certain foreign assistance for infrastructure projects in the country.

Critics have described the Duterte administration's mindset as virtual mendicancy and a surrender of its moral high ground to what has been described as a rogue state, which is China. 

The key findings of the Permanent Court of Arbitration:

·          The so-called "nine-dash line" is invalid: "The Tribunal concluded that there was no legal basis for China's claim to historic rights to resources within the sea areas falling within the nine-dash line".

·          Reclaimed islands have no exclusive economic zone: "The Tribunal noted that the current presence of official personnel on many of the features is dependent on outside support and not reflective of the number of features ... (and) .... that none of the Spratly Islands is capable of generating extended maritime zones.

·          "The Tribunal found that it could - without delimiting a boundary - declare that certain sea areas are within the exclusive economic zone of the Philippines, because those areas are not overlapped by any possible entitlement of China."

·          China has behaved unlawfully "China had violated the Philippines' sovereign rights in its exclusive economic zone. The Tribunal further held that Chinese law-enforcement vessels had unlawfully created a serious risk of collision when they physically obstructed Philippine vessels."

·          Beijing has damaged the environment: China's large-scale land reclamation has "caused severe harm to the coral reef environment and violated its obligation to preserve and protect fragile ecosystems."

·          Island building should have stopped during the dispute process: The panel said it had no jurisdiction over military standoff and Second Thomas Shoal, where Chinese and Philippine military and law enforcement vessels are locked in confrontation.

·          However, "China's recent large-scale reclamation and construction of artificial islands was incompatible with the obligations on a state during the dispute resolution proceedings, insofar as China has ... destroyed evidence of the condition of the natural features of the South China Sea that formed part of the Parties' dispute. "

It could not be ascertained how and why President Rodrigo Duterte and Yasay have chosen to ignore the multilateral initiatives pursued by former President Benigno Aquino III and ex-Foreign Secretary Alberto del Rosario and openly advocated for appeasement without basic consideration of the pending arbitration case before the arbitration tribunal .

Even the domestic front has not appeared pleased for the unfolding foreign policy shift, as many sectors had expressed concern over Yasay's posturing.

Even Yasay did not even seem pleased with the dismissal decision, opting to assume a wait and see attitude.

Now, Yasay could not just ignore a multilateral decision written on stone. It would be absolutely foolhardy for him to still embrace the Giant Panda before the eyes of the discriminating international community. 

MY FIRST DANCE

By Philip M. Lustre Jr.

I DIDN'T HAVE my first dance in a house party called "tipar" or in the high school junior-senior prom. I had it in the dimly-lit dancing hall of a sleazy joint, which was then called International Cabaret, in Caloocan City. That was sometime in October, 1969, which was the height of the Vietnam War.

I was 15 and in third year high school, when my 18 year-old cousin, who has always been a close friend and a confidante until now, urged me to go to the much ballyhooed dancing halls of Caloocan City. 

I filched P20, which was then a tidy sum during those days, from my mother's wallet and off we went to the Caloocan City's fabled Fifth Avenue for an adventure.

The bouncers refused my entry because of my age. But my cousin's persuasive powers prevailed, as he argued for me. 

We showed our cedulas, or residence certificates, with fake birthdays to claim we were 18. I was a skinny lad, wearing a white long-sleeve shirt and black pants, as if I was to receive my first communion.

We bought tickets, which cost twenty centavos each. Each ticket meant a single dance with any woman of our choice from the long queues of taxi dancers, who were called bailerinas (Spanish word for dancers). A taxi dancer was for hire to provide dancing services to anybody, who bought tickets.

After we bought our tickets, we drank a bottle of beer each to overcome our anxiety, shyness, and nervousness. 

But from the corner of my eyes, I saw a brown beauty with a slim body, who moved with the grace of a gazelle. I approached and gave her a ticket for a dance. The orchestra then played You'll Never Know, a popular song during the Liberation era. We had the "very sweet" dance.

The taxi dancer, who was in her mid-20s, was so surprised by my presence. "Why are you here?" she asked. I couldn't answer, but said I was with my cousin. 

"How old are you?" she asked. I told her I was 18, which she didn't believe anyway. Then, I gave her more tickets to show that she would be my partner for the next nine dances. Those tickets meant income for her.

The music was so short; it did not last a minute though. She was my partner again. This time, it was a different story. 

It was no longer a getting-to-know you type of meeting. As a pubescent guy, I had my initiation that woke up the manhood in me. 

She gave that wake-up call.

Without much ado, the taxi dancer held me tight and squeezed my body so hard. Then, she pushed my buttocks toward what was in between her thighs. 

I could smell her perfume. I could feel her warm breath. Then, she rubbed her body to my body, causing sensation and the greatest - and most memorable - erection in my entire life. 

I literally trembled at the sheer ecstasy of my experience.

She gave me the most thrilling - and enthralling - experience in the next eight dances, after which I bought ten more tickets. 

We didn't talk much but the dance we had was most sensual and erotic. I sweated profusely. After 20 dances, I gave her a one-peso tip.

Somehow, I managed to ask her name toward the end of the dance. 

She gave her name as Lolita. She told me she would like to dance with me again, if ever we would come back. 

We didn't return after that visit. It was enough to savor the spirit of a dancing hall we then called a cabaret. 

By the way, International Cabaret was demolished to give way for the construction of the LRT along Rizal Avenue and for the widening of Araneta Avenue.

THE WORLD OF SOCIAL MEDIA

By Philip M. Lustre Jr.

FACEBOOK, Pininterest, Friendster, Twitter, MySpace, Tagged, Namesdatabase, etc. - these are some of the social networking sites that have emerged over the past ten years to comprise what has been termed as the social media.

As part of the ongoing Information Revolution, these social networking sites form part and parcel of the emerging global culture.

These sites have been effective in establishing links and connections for millions of people all over the world.

They break barriers like space, languages, time, and domestic laws, enabling them to interact freely without fear, malice, or even retribution in case differences of opinion arise.

The emergence of social networking sites has reshaped the mode of interaction. 

Before friendship is deeply characterized by distance and intensity of emotions, but, now, friendship has become virtual as a result of these websites.

By mere connecting with one another through these social networking sites, people from various points of the globe, every walk of life, and even differing religions have become virtual friends, constantly communicating and exchanging information and views.

Pundits have already proclaimed that the current world order would be characterized by virtual friendship. 

In fact, political leaders, corporate entities, civil society institutions, and various organizations and institutions have started using these social networking sites to influence the people all over the world.

No wonder, news about US President Barack Obama are evenly distributed to most Twitter and Facebook accounts, probably making him the political leader, who has been extensively using the information highway to attain his objectives.

The rise of social media has triggered the emergence of new words among Internet denizens (or netizens), reflecting its deep influence and effect to daily living. Oxford Dictionary chose the word "unfriend" as its "Word of the Year" for 2010.

According to Oxford, unfriend refers to the act of deleting listed friends on a social networking site.

Oxford's choice however is enough to instigate a healthy debate on the word. Some pundits said the better word is "defriend," while others said it should be "unbefriend" because these sites exist to enable people to befriend other people.

Pundits have also proclaimed that the emergence of global culture is just a matter a time. 

Before everybody realizes it, most people from all parts of the world and walks of life will follow common norms in their daily behavior, thus making them truly global citizens.

In this sense, the goal of globalization, which is "one world, one culture" becomes a reality, a success.

PINENGLISH' OR PINOY ENGLISH

By Philip M. Lustre Jr.

SCHOLARS have noted that globalization has led to an emerging global culture. This is true, as indicated by an emerging global English, or "Globlish," which seems to be in every culture that acknowledges English as an international language.

But just as the emerging global English takes root in every culture, the Philippines seems to have developed its own brand of English, which is distinct from the mainstream English.

The Filipino English, or "Pinenglish," is indeed having a life of its own, as it evolves to reflect a very different Filipino culture.

The Philippines is probably the most different country in East Asia.

Except East Timor, ours is the only Christian nation in this part of the world. Physically, a Filipino is essentially Malay in looks, but his temperament is Latino. But he speaks English well unlike other East Asians.

The Filipino English, is different from the English spoken by the Americans or the British. It has its own set of phonetics and idioms. An average American or Briton find difficulties understanding some English words, which a Filipino uses in daily social intercourse.

In politics, an American refers to a presidential candidate as a standard bearer, but Filipino prefer to call him a "presidentiable," a term which has yet to find its place in the standard Webster's dictionary. We have terms like "vice presidentiable" and "senatoriable" to refer to those running for other posts.

An American calls it a political party, and a British political aggroupement, to refer to groups of individuals with the same set of political beliefs and objectives. But a Filipino call it a "political aggrupation," which is another term that could not be found in the dictionary.

In business, anything that is bought on staggered payment basis will always be a good or service acquired on installment. While a Filipino has occasionally use the word, he prefers to call it as a thing bought on "tears," which is the English equivalent of "paiyakan."

Hence, every installment is a "give," a term which is not easily discernible by other English-speaking people. It is the English term for "bigay," or "hulog."

Police works could be messy, but Filipinos have specific terms, whose differing usage could hardly be explained. The dictionary says salvage means to save or help. 

But in Filipino parlance, "salvage" means summary execution, which is the exact opposite of its actual meaning. It has evolved from the Spanish word "salvaje," which literally means bad.

This term has surfaced in the 1970s, when the dreaded Marcos police and military operatives kidnapped political activists, who later surfaced as victims of rubouts.

The wireless telephony boom of the early 2000s has led to the emergence of new words that are essentially Filipino. 

A tryst or rendezvous among cellphone users is an "eyeball," which has a different connotation for the Americans and British.

Other Filipino English words that have meanings: a refrigerator is a "frigidaire"; a pack of toothpaste is "colgate"; while a traditional camera is "kodak". 

Going to SM or Robinson is "malling," while, in other cultures, it is shopping. Hotels in other countries have no equivalent for our "short time."

When going to a restaurant, a food server will call the bill a "chit," which is almost identical with the word "check." Food servers, particularly those from the South, had a hard time pronouncing check; chit is easier.

In other countries, the lavatory is called the toilet, but in the Philippines, they euphemistically call it a rest room.

Scholars have no explanation for this Filipino English, but I always believe in the Filipino sense of individualism. 

A Pinoy always wants to be different from the rest of the world.

APO PRODUCTION UNIT: LITTLE KNOWN OFFICE RISES FROM THE GRAVE

By Philip M. Lustre Jr.

SADDLED by heavy debts and notorious for being a milking cow of people associated with past administrations, little known APO Production Unit, Inc. was given up for good in 2010. But a last-minute decision to revive and reengineer it instead has brought APO Production Unit back to life.

Now, APO Production Unit, or simply APO, is a government owned and controlled corporations (GOCC) engaged in highly sensitive security printing services for various state agencies and other GOCCs. Without fanfare, it has metamorphosed into a professionally run GOCC that has started to recover from a debilitating debt trap to post decent profits.

APO is one of the three state firms engaged in printing business; the other two are the Central Bank of the Philippines and National Printing Office (NPO). It is currently under the Presidential Communications Operations Office (PCOO).

"APO was bleeding heavily, when the current board took over in 2010. The thinking then was to close shop," Amando Dimarucut, APO president and member of its board of trustees, said in an interview with this writer.

But then Communications Secretary Herminio Coloma, who taught management subjects and the Asian Institute of Management (AIM) before he went to public service in 2010, had a better idea, as his team felt APO could be saved and transformed into the state printer of highly sensitive printing requirements of various line agencies and complement the two other state printers, the BSP and NPO.

The reengineering move has led APO to become the official printer of state agencies like the Department of Foreign Affairs, Bureau of Internal Revenue, Land Transportation Office, Maritime Industry Authority, among others.

These agencies do not need the usual printed materials like brochures, books, pamphlets or any other printed materials, but those requiring security features and state-of-the-art facilities. For instance, APO now produces DFA's e-passports that contain security features to ensure the integrity of passports issued to Filipino nationals.

APO posted net revenues of P1.21 billion by end-2015, up by almost 300 percent from P329.1 million by end-2010. It posted a net profit of P47 million in 2015, of which P5 million was remitted to the Bureau of Treasury. It was the first time it had remitted to the national government after almost five decades of existence.

APO Production Unit, Inc. was formed in 1967 to serve as the printing arm of the Asian Productivity Organization (APO), the Japan-based organization that provided information materials to Asian countries. In 1971, the Japanese and Philippine governments entered into a memorandum of agreement transforming it into a formal production unit.

In 1974, APO Production Unit, Inc. was incorporated and registered with the Securities and Exchange Commission (SEC) as a non-stock, non-profit organization. Earlier press reports indicated that APO, since its incorporation until 2010, was used by its officials point to serve their personal requirements, which included the printing of campaign materials for a member of its board of trustees and relatives of two company officials.

Until 2010, APO had an identity crisis. Even its previous officials could hardly say with conviction if it was a private firm or state, thus enabling some of its previous officials to take advantage of its operations.

It was only in the 2011 budget law and two other laws that APO has been defined as a GOCC. Previous references APO described as a "government instrumentality."

APO's financial turnaround came in 2011 when it jettisoned its former identity as a mere printer of usual printed materials like books, pamphlets, brochures, forms and among others ventured into the highly technical and specialized security printing.

It changed overnight its mission and vision statement to say: "To meet the requirements of the National Government and its agencies for highly sensitive security printing services by employing innovative technologies, business efficiencies and highly competent personnel through the judicious use of the corporate form of organization ".

It borrowed fresh funds, acquire new specialized machines, streamlined its printing and sales operations, retrained its workers, entered into agreements with state agencies that need security printing services, and established the three-hectare Lima printing facility in an industrial enclave in Malvar, Batangas .

APO did not only reform itself to become a highly competitive and efficient state firm. It assumes part of the ongoing reforms in government.

In 2013, APO has started the implementation of the internationally awarded Philippine Excise Tax Stamp Project, which involves the printing of excise tax stamps for the Bureau of Internal Revenue (BIR) and establishes a tracking system to prevent illicit trade of tobacco products.

This project is in pursuit of two major institutional reforms: the 2009 adoption of the Framework Convention on Tobacco Control (FCTC), a World Health Organization treaty that identifies the elimination of illicit trade in tobacco products as a key element of global tobacco control; and the enactment of the product sin tax law that allocated funds for the Universal Health Care program.

The FCTC treaty requires the development of a "practical tracking and tracing regime to secure the tobacco products' distribution system and prevent their illicit trade." Until 2013, the BIR did not have a system to know the actual quantity of cigarettes manufactured and sold by the tobacco companies and relied solely on what the cigarette manufacturers reported and remitted.

The excise stamp project involves an integrated system that is not limited to printing, but it includes a security software process for ordering, distribution and monitoring to ensure the correct collection of excise taxes on cigarette products. Hence, the adoption of the system, known as the Internal Revenue Stamps Integrated System (IRSIS), APO has made ​​as the sole authorized printer of tobacco excise stamps.

This move enables the BIR to assume full control and supervision over the production and issuance of excise stamps. Moreover, this reform ensures that all taxes imposed on tobacco products are accurately and fully paid.

APO's implementation of the excise tax stamp project has helped to raise state revenues from tobacco products. Official data showed the incremental raise in sin tax collections in 2014 reached P50.2 billion, up by slightly over 20 percent from P42.9 billion projected for that year.

In 2015, APO has started producing e-passports in fulfillment of its contract with DFA. It has similarly started using its five printing facilities in Batangas. Since then, the Lima facility has been used for DFA's e-passport and BIR excise tax stamp projects.

Jaime Aldaba, APO executive vice president and general manager, told this blogger that the e-passport project is quite sensitive because every e-passport contains security features that should not - and would never - compromise the integrity of issued Philippine passports.

"It's like printing money. Its security features are quite similar to the bank notes we have in circulation," said Aldaba.

Aldaba said APO has bigger plans for the future. Its mission and vision statement says its vision in the following words: "By 2018, for APO Production Unit to have been transformed into an integral and essential component in providing world-class infrastructure total printing solutions to the National Government and its agencies. By 2020, for APO to provide cutting-edge printing services to foreign governments and international organizations. "

Dimarucut and Aldaba said those future objectives are attainable and sustainable.

ADDITIONAL ARTICLES

BLOGGER'S NOTE: The following is a two part series on APO Production Unit, Inc. and a related opinion piece. The two part series was written by veteran journalist Tita Valderrama for the Philippine Center for Investigative Journalism (PCIJ). The opinion piece had the same author and it appeared last year in the Manila Times.

APO, government press, printing

campaign materials of bets

by Tita C. Valderama

TUESDAY, MAY 4TH, 2010

First of Two Parts

THE ELECTION Code is clear: Any printing press owned or controlled by the government is prohibited from being used in any election campaign or partisan political activity.

The penalties for officials of such an entity caught in violation of the law range from one to six years jail term without probation, along with disqualification from public office and forfeiture of the right of suffrage.

But some officials of the APO Production Unit, Inc., which is under the Philippine Information Agency (PIA), say the company is "private" and is therefore free to print campaign materials for one of its board members who is among the candidates for local office on May 10, as well as for the son and brother of two other company officers.

This is even though the company has been shuffled from one government agency to another through the years, seems to have become a dumping ground for protégés of people close to Malacañang, and has its books pored over from time to time by the state bean-counters the Commission on Audit (COA).

'Desire letters'

Its corporate policy-makers and officers also acquire their positions through a "desire letter" from the president of the Philippines.

Still, Roberto Brillante, former councilor and vice mayor of Makati City who now sits as a member of the APO Board of Trustees, insisted in an interview with PCIJ, "It's a private corporation registered under the SEC (Securities and Exchange Commission), originally under NEDA (National Economic and Development Authority). "

"We are not appointed (officials)," Francisco A. Arellano, APO president and a nephew of Senator Joker P. Arroyo, also asserted. "We're here through a letter desire. A desire is just a referral letter."

Other members of the APO Board of Trustees are: Mr. Benjamin Defensor, chairman; Renato L. Tobias, treasurer; Juan P. Dayang, corporate secretary; Taciana B. Verceles, comptroller, and T. Raul Corro, chairman, committee on legal affairs.

All of them have ties to the Palace or a past government officials. Defensor is an uncle of former congressman and presidential chief of staff Michael Defensor, who is now running for mayor of Quezon City. Tobias is said to be a protégé of former Executive Secretary Eduardo Ermita while Dayang is a media person close to Malacañang. Verceles is the widow of the late Immigration Commissioner Leandro Verceles Sr. Corro and was recommended to the Board by then Press Secretary Ignacio "Toting" Bunye said.

As member of the board, each of them is entitled to an honorarium of P30,000 every time the board meets, plus a monthly salary of P50,000 to P100,000. Apparently, too, the position comes with privileges such as free or discounted print jobs for themselves, their relatives or their friends.

Relatives, Inc.?

Up until the third week of April, APO's printing plant in Quezon City was churning out campaign materials for Corro, a candidate for councilor in Muntinlupa City, Leandro Verceles Jr., who is running for congressman of Catanduanes; and Mario T. Lumanao, who is aiming to become Surigao del Sur vice governor.

Verceles Jr. is the son of the comptroller and APO board member, while Lumanao is the brother of Emmanuel T. Lumanao, APO's executive vice president and general manager and a buddy of the late Press Secretary Cerge Remonde.

The printing of his campaign materials, which included four-color posters, leaflets, sample ballots, and pocket calendars, were apparently snuck in between the printing of forms and documents for the end-decade census of the National Statistics Office (NSO).

Last April 29, Brillante Arellano PCIJ and toured around the printing plant. It was teeming with activities for the NSO forms that are supposed to be finished by May 17. What caught the attention PCIJ was a handwritten note on a small white board inside the CTP (computer-to-machine) room where some of the campaign materials were done. It said: "Puro TY angpriority jobs. '' TY 'means thank you or free of charge.

Beside it was a bigger board on which recent and current job orders were written. Although the scribblings did not include the number of copies for each order, there were 'D' and '-N' marks beside some of these. According to APO workers, 'D' meant either the paper used was supplied or the printing job was granted a generous discount. (In some cases, the reams of paper used were sourced from "donations" from APO suppliers, the workers said.)

Job orders with 'N,' meanwhile, meant nothing was paid for the printing.

Going by what was written on the board, there were two "discounted" job orders for pocket calendars and posters, and a "complimentary" printing of handbooks for Verceles board member. There were also "complimentary" printing job orders for election posters for Corro and posters for Lumanao.

Initially, both Brillante Arellano and feigned innocence when asked about the campaign materials being printed at the plant. When told that the PCIJ has copies of election paraphernalia printed by APO and that there were job orders that had '-N' marks, Arellano said, "We do outdoor jobs. But they are not much, and only if there is excess paper. "

"Those are just small jobs," Brillante also said. But then he seemed to take that back, saying, in reference to the campaign of Verceles and company: "I'm sure they paid. We will not allow that if they did not pay."

"No 50-percent down payment, no printing job," added Brillante.

Private or public?

Reminded of Article XXII, Section 12 of Act No .. 881, or the Omnibus Election Code that, among other things, prohibits the use of "... .equipment, facilities owned or controlled by the government for an election campaign," Arellano said, "Because we're a private corporation, were not covered by that ban."

He also noted that the Board of Trustees member Corro, who had election materials printed by APO, is "a lawyer, (s) he should know."

In truth, Corro, who served as mayor of Muntinlupa from 1998 to 2007, also sits as chairman of the legal committee in the APO Board. He got into the APO board in October 2007 through a "desire letter" from President Gloria Macapagal Arroyo. That letter was issued upon the advice of the Press Secretary Bunye, who at the time had supervisory powers over APO, which was then under the Office of the Press Secretary.

When reached for comment, Corro said that the nature of his appointment to APO "is not a direct appointment" from the president, but through a desire letter that the Board could have refused. Asked if the Board has ever declined to honor a "desire letter" from the president, Corro replied that he did not know of any.

He did point out that after the Supreme Court ruled in March that early presidential appointees running for public office should leave their posts, he never received any suggestion or advice to resign from APO. Instead, he said, the APO Board "collective (ly)" told him to remain, which is why he is still collecting his salary and other compensation from the company.

But he also said, "I'm leaving my fate to the Board. I can leave anytime. I can not resign because I may be accused of abandoning my post. And I am willing to reimburse one or two months (of honorarium and other compensation) I'm getting now if it's ruled by the Board or any appropriate agency if indeed the nature of my appointment is a direct appointment, although by desire of the president. "

'Help me'

Corro did not deny that APO had printed campaign materials for him. Based on job orders obtained by the PCIJ, these included 80,000 pieces of leaflets with eight pages of his personal background and accomplishments, 8,000 pieces of pocket calendars, and another 5,000 pieces of campaign posters, all complimentary.

Apart from this, job order no. N-1003032, a copy of which was obtained by PCIJ, last March shows Corro ordering 18,150 pieces of calling cards each for "seven names." The 'N' mark denotes that this order was free as well.

Corro, however, could not seem to recall only pocket calendars that were "small in number, I can not remember exactly how many."

"This was prior to the campaign period," he told PCIJ. According to Corro, APO's printing of his election materials were "donations" by the company and the Board.

"Some just help them 'it me, brought here and I appreciate their help (It's just their own little way of helping me, the materials are provided here and I'm thankful for their help)," he said.

On Tuesday, May 4, PCIJ received unverified information that Corro had asked CNN to bill him for the campaign done at the company. A few hours later, the PCIJ was told that Corro's delivery receipts were being replaced.

Compared to Corro, who was relatively responsive to PCIJ's queries, his co-member board Taciana Verceles, was palpably irritated when PCIJ finally reached her by phone last Monday, May 3.

Director's son

Pouncing on PCIJ's reference to allegations of anomalies and APO, she said, bristling, "Do not entertain that. It's too much problem (sic). Even the government does not entertain that. I have been a director for 15 years and there is no diyan.Nagpapasikat irregularity only those labor-labor that's right. Do not entertain that. "

Verceles was referring in part to a brewing labor problem in APO, to which she appeared to be attributing the allegations of irregularities. Told about job orders indicating the printing of campaign materials for her son, a former congressman of Catanduanes, the APO comptroller said, "I paid for all the materials down to the last cent. I have the receipts here."

Asked about the labor cost, Verceles replied, her voice rising, "We're from APO! I'm too busy. Do not entertain that. I'm sorry." Then she hung up.

APO insiders said 64 reams of paper from the firm's inventory were used for the initial printing of the campaign materials for Verceles's son. But the project needed reams 75 in all; according to the insiders, Verceles comptroller asked for discounts in the acquisition of the additional 11 reams.

Two job orders dated March 3, 2010 for Verceles indicated the printing of 100,000 pocket calendars for free, and 65,000 pieces of 17.5 x 17.5-inch poster campaign at a discount. Last April 19, there was a job order for an unspecified number of sample ballots, also for Verceles.

Some of the posters for Verceles's son that were printed and APO had this marking: "Printed by: Agustin Verceles, 2 Avocado Drive, Valley View Exec. Village, Phase 1, Cainta, Rizal, Paid for by Leandro Verceles Jr., San Isidro , Virac, Catanduanes. "

A day after talking to on the phone Verceles comptroller, the PCIJ was told by an insider that Verceles APO's job orders were erased from the company's computer database. PCIJ, however, has yet to verify the information.

GM's brother

APO Lumanao general manager, for his part, admitted having posters printed by the company for his brother Mario, the Surigao del Sur vice gubernatorial candidate of the PDP-Laban party.

Printed for Lumanao free of charge were 100,000 pieces of pocket calendar, 100,000 pieces of 12.5 x 12-inch calendar and a discounted price, and an undetermined number of pieces of posters.

Lumanao said complimentary printing jobs for the APO trustees were "normal." Besides, he said, the papers used for these types of printing jobs were either scrapped or those deemed "unusable."

He showed but refused to provide a copy of a March 3, 2010 memo by Alan Paton-og, APO materials department supervisor. The internal memo cited the company's December 2009 year-end report as saying, "Some of our sheeted papers are unusable due to deterioration and discoloration and have been classified as non-moving items for so many years. These stocks are tediously counted every year and occupy a large portion of our warehouse. "

The memo thus recommended that the paper stocks comprising 67 reams of book paper, white bond, self-adhesive stickers - all worth a total of P257,781.32 - be disposed of, either by being sold or used for outdoor jobs.

Samples of the APO-printed campaign materials obtained by PCIJ, however, turned out to be paper stock without any sign of deterioration or discoloration. Sample ballots were also of good quality imported newsprint and book paper.

'Complimentary'

APO Some employees see nothing wrong with the printing of "complimentary" campaign materials for board members. The employees' union president, Salvador Prado, even says, "Well if we make other complimentary, so the board (Well, we do complementary jobs for others, what more for the board)."

Prado and now sits in the APO board as an observer, after his predecessor, Alfredo Bautista, was promoted last February as assistant production manager. 

As an observer on the board, Prado receives a P10,000 honorarium for every meeting he attends

Yet even granting the APO board members of their assertion that the company is private "private" nature, they may still be held liable under Republic Act No. 3019, or the Anti-Graft and Corrupt Practices Act.

The Act's Section 3, paragraph (i) prohibits a private individual from "(directly) or indirectly becoming interested, for personal gain, or having a material interest in any transaction or act requiring the approval of a board, panel or group of which he is a member, and whish exercises discretion in such approval, even if he votes against the same or does not participate in the action of the board, committee, panel or group. "

Section 4 of the same law also says: "It shall be unlawful for any person having family or close personal relation with any public official to capitalize or exploit or take advantage of such family or close personal relation by directly or indirectly requesting or receiving any present , gift or material or pecuniary advantage from any other person having some business, transaction, application, request or contract with the government, in which such public official has to intervene.

Violation of the anti-graft law carries a penalty of one to 10 years imprisonment, plus perpetual disqualification from public office and forfeiture of prohibited interest or unexplained wealth manifestly out of proportion to his salary and other lawful income. - To be continued, PCIJ, May 2010

part Two

Based on audit reports, APO has made full use of its being a government firm. For example, APO as a state instrumentality acquired loans with ease from the Philippine National Bank (PNB) and other government financial institutions. It imported printing materials tax-free. And unlike private printing firms, APO has been exempted from public bidding for government projects. Instead, it gets these through negotiated bids.

After all, Executive Order No. 301 under the decentralization of negotiated contracts says "(Any) provision of law, decree, executive order or other issuances to the contrary notwithstanding, no contract for public services or for furnishing supplies, materials and equipment to the government or any of its branches, agencies or instrumentalities shall be renewed or entered into without public bidding, except ... whenever the purchase is made from an agency of the government. "

And yet APO private corporate dons a hat whenever it decides to farm out government printing orders to private firms. In cases uncovered by the COA in 1996, 1997, and 1998, APO government projects subcontracted to private printers without bidding, citing an opinion from the Office of the Government Corporate Counsel (OGCC) that said it is a private non-stock, non- profit corporation, and therefore "the conduct of its business is that of private firms."

This practice continued, according to COA, not only "deprives the government of a lower cost of printing, but also of better income." The OGCC opinion cited by the former management of APO was meanwhile dismissed by the Commission through Proper COA decision No. 98-173, which reiterated that APO is a government instrumentality that is subject to public bidding requirements.

Yet in February 2009, APO would even subcontract a Hong Kong-based printer to do the orders of the Maritime Industry Authority or (MARINA) for seafarers 'identification and record books. Normally done by the Central Bank of the Philippines, the seafarers' order book somehow wound up with APO, which was then swamped with other projects, according to APO board member Brillante. APO thus looked for a subcontractor, but that move later became even more controversial when it was reported that the deal had been overpriced by P7 million.

In an interview with PCIJ, Brillante Marina's order described as a "rush job" that extracted additional cost from Marina because of its "lack of foresight." APO exonerating of any fault in the matter, he said Marina would not have had to spend that much if it had scheduled the project ahead of time.

In truth, government printing projects have kept APO's presses humming through the years, although the company has also accepted orders from private entities such as the International Bible Society. Staple government clients include the Bureau of Internal Revenue (BIR), the Department of Budget and Management (DBM), the Department of Tourism (DOT), the Department of Education (DepEd), and the Philippine Postal Corporation (Philpost).

The company currently employs some 250 regular workers. To accommodate a major job orders from the National Statistics Office (NSO), APO recently hired some 100 contractual employees.

Yet far from its lofty beginnings, APO's buildings are now old and unkempt. Its cramped facilities house several departments and include a composition area, press room, a security printing sector where sensitive forms are printed, a bindery department, and an engineering and maintenance section. It also has a warehouse, stock room, and offices for its managers, plus a conference room with mismatched furniture.

One veteran employee APO says its printing equipment had its last upgrade in the mid-1990s, although its latest gadget acquisition supposedly shortens the pre-press plate preparation.

Unpaid loans

In 1989, APO's inability to repay multimillion-peso loans from government banks landed it under the Asset Privatization Trust (APT). But it had no takers. By 2000, based on state audit reports, the firm owed the government P604 million, representing loans from the Philippine National Bank, insurance and security services of the APT expenses, and accrued interest and penalties.

In the COA report, state auditors noted their difficulty in obtaining company data, much less cooperation from APO officials, for their inquiry. In the 1996 to 1998 audit of APO, for example, the COA team supervisor said that they were unable to offer an opinion on the firm's financial statements "because of the materiality of the amounts involved and the refusal or reluctance of the close relatives, neighbor APO and friends of officers ... to confirm or deny having received uncrossed checks or proceeds from APO thereof .... "

Among the team's findings was the issuance of uncrossed checks amounting to P16.6 million to close relatives of APO's then internal auditor as commission fees. This two payments to non-employees APO, COA said, "cast doubts as to the propriety of the transactions".

Interestingly, in its 1999-2000 audit report, COA said that its previous recommendations have remained unimplemented that were to "stop granting commissions to close relatives / friends of APO officials, especially for those arising from sales to government agencies" and to "stop granting cash advances to non-APO personnel. "

APO Some employees have since asserted that officials have made a milking cow of the printing firm. Just last March, a number of employees wrote APO Executive Secretary Leandro Mendoza regarding alleged abuses of members of the Board of Trustees and some senior management executives, who had supposedly bloated salaries and allowances.

Little kingdoms

In 2008, then Press Secretary Jesus Dureza himself had written the APO Board of Trustees, indicating his desire for them to subject the company to regular audits COA. Dureza's letter was apparently part of his attempt to align the trustees' compensation with other executives from other GOCC - to no avail.

PIA Director General Conrado A. Limcaoco Jr., who began supervising APO only this March, said that while he has sat in just one APO board meeting so far, he is already convinced that there needs to be "some structural and policy imperatives" and the firm.

"The personality dynamics is complicated beyond belief," he said. "The board does not get along, the employees do not get along, and even the management and employees do not get along."

He said, however, that taking priority in his to-do list is to settle with finality regarding questions APO's corporate nature of the corporation by getting a legal opinion from the Office of the President and the DOJ. He also said that he is requesting the Presidential Anti-Graft Commission to investigate APO's printing of campaign materials for company officers and their relatives "to determine if there is cause to send it to the Ombudsman."

Monsod, for her part, told PCIJ that as with other GOCC, it has been difficult to put APO in order because "everybody has his little kingdom and everybody is busy protecting his own little turf." Asked if she thought there was a chance things may change and APO once a new government comes in, she remarked that any overhaul "has to be a general policy issuance along ... and this is all not just in connection with professionalizing the civil service but the boards of directors of all government corporations. "

Monsod said: "APO by itself is merely a symptom that really should be examined by government." - PCIJ, May 2010

APO: From bad debts to big profits

By Tita Valderrama, The Manila Times

July 19, 2015 8:28 pm

PROFESSIONALISM and competence has turned around a little known agency that used to be a dumping ground for political protégés.

Before the elections in 2010, I wrote about the APO Production Unit, Inc., a government corporation that was blatantly abused by the men and women tasked to manage it. It was turned into a milking cow, and used to print campaign materials for relatives of its officials.

Five years later, the corporate officers of APO called my attention to the agency's present condition and bragged about how they managed to make a 180-degree turn from a debt-ridden into an income-generating entity.

In 2011, APO realized a net income of P20.7 million, the first time in 11 years of losses.

In 2013, the corporate officers said, the agency has started remitting to the national treasury 50 percent of its income. In April 2014, it issued a check for P2.7 million to the Bureau of Treasury, and another P2 million in April this year as its contribution to the national government.

APO, by its corporate nature, does not receive even a single centavo from the national government.

For 2015, the agency is given a challenging sales revenue target of P1.08 billion, from P680 million last year. With a state-of-the-art security printing facilities on a three-hectare property at the Lima Technology Center in Malvar, Batangas, APO may not be far from achieving the revenue goals.

It will soon start producing the e-passport using the latest printing technologies and adopting high-end security features to ensure the credibility of the travel document.

With over 7,000 square meters of production area, the facility houses a data center, fiber optic data lines, CCTV system, K9 Unit, and state of the art security printing system.

It produces excise stamps for the Bureau of Internal Revenue (BIR) as well as the Internal Revenue Stamp Information System (IRSIS), a security software that tracks and traces tobacco products.

APO stands for 'Asian Productivity Organization,' the name of the Japan-based group that had helped start it in 1967 as an outfit that would serve the information and training needs of Asian countries.

Japan's APO and the Philippine government jointly created the production unit through a Memorandum of Agreement (MOA) on June 24, 1971.

Under the MOA signed by then NEDA Director General Gerardo Sicat and the Japan-based APO Secretary General Morisaburo Seki, the Philippine government was to "assume full responsibility for the unit to operate on a self-sustaining basis effective 1st July 1971 onwards." Manila was also to continue granting the unit "exemption privileges on all imported printing supplies and materials, equipment and other items needed for its productions operations."

Consequently, then President Ferdinand Marcos signed Letter of Instruction No. 197, directing NEDA APO to make a self-sustaining, non-stock, non-profit corporation. The order also enabled the unit to "solicit and accept printing jobs with other agencies of, or corporations owned or controlled by the Government."

In November 1972, APO Production Unit, Inc. was incorporated and registered with the Securities and Exchange Commission (SEC) as a non-stock, non-profit corporation.

The move to make the unit self-sufficient funding was a result of standing out from the joint contributions of the United States Agency for International Development (USAID) and Manila. It was also aimed at sparing the organization in Japan and the Philippine government from any financial burden stemming from the firm's operations.

Since then until 2010, APO Production Unit seemed to have mostly served the whims of government appointees placed at its helm, and who have insisted that the government corporation is "private" whenever such a label suits their needs.

And after so many years of confusion over its identity, APO has now defined itself as a government corporation as reaffirmed in RA 10149, or the 2011 budget law. APO is one of three recognized government printers security of highly sensitive government documents and forms. The other two are the Central Bank and the National Printing Office (NPO).

Through the years until 2010, APO was shuffled from one government agency to another. It is now comfortably under the Presidential Communications Operations Office (SSC).

When the present seven-man board took over the agency in November 2010, it was confronted with various complaints from the employees union, ranging from union busting graft, filed in different venues from the National Labor Relations Commission (NLRC) to the Office of the Ombudsman. So far, four major cases had either been dismissed or denied.

Despite protests from union members, APO chairperson Alora Milagros said the management remained focused on resuscitating the corporation to avert a shutdown if it would continue operating on losses.

The board's decision to allow management to transfer part of the corporation's account to the Asia United Bank (AUB) was a major issue for the union.

"But we had to do it because no government bank would lend us. AUB was my former client and it was the only bank that trusted us and extended loan to us my pleading," Alora said over lunch a few days ago. The engagement was for short-term loans to bridge the gap between collections and to finance raw materials for on-going printing jobs.

Another difficult decision it made was to lay off people. "We had to streamline, computerize operations and upgrade workers' skills to make them at par with those in the private sector," said General Manager [Jaime] Aldaba.

APO has paid more than half of its long standing obligations such as the payment of taxes for the 2008 tax amounting to P48 million and local business taxes to the local government.

To meet the need for capital projects in the face of financing shortage, the board approved the lease-purchase agreements that enabled the company to immediately acquire new equipment for urgent jobs and paid for with the income from the projects done using the same equipment and machines .

With the innovative steps taken to improve operations, APO has earned the trust and confidence of more government agencies that have security printing requirements. Among its new accounts are Revenue, Foreign Affairs, Social Security System (SSS), Department of Trade and Industry (DTI) and the Land Transportation Office (LTO).

Alora said the Governance Commission for Government Owned or Controlled Corporations (GCG) which supervises APO was impressed with its turn around and APO has made its poster boy in good and effective governance.

The NPO can be turned around in the same way that the APO had been turned from a company in bad debts into one that is earning big profits. The NPO plays an important role in the conduct of national and local elections as it is deputized by the Commission on Elections (Comelec) to print the official ballots and other election paraphernalia.

Just five days ago, The Manila Times published a story about government prosecutors asking the Sandiganbayan to suspend NPO Director Emmanuel Andaya, Chief Administrative Officer Sylvia Banda, Printing Operations Chief Antonio Sillona, ​​Budget Officer Bernadette Lagumen and Printing Office Assistant Chief Ma. Gracia de Leon Enriquez, who were accused of giving unwarranted benefit to JI Printers Inc. by authorizing the allegedly illegal award of a printing deal worth P3.6 million to the company in 2011 through a negotiated procurement.

The anomalies and the NPO, which is far bigger than APO, are too much to swallow, including one that involved the awarding of a contract for the repair of an elevator to a printing company.

It was a classic case of the less-publicized APO Production Unit traversing the administration's Straight Way while its big neighbor, the NPO, opts to take the crooked path.