A happy ending

First Pacific directors Michael Healy and Ron Brown are currently finalizing the blueprint for the Hong Kong-based company’s new strategy. Dubbed ‘Decisions, Directions,’ the strategy involves a regional expansion for First Pacific’s core assets in Indofood and the Philippine Long Distance Telephone Co.

Sources privy to the plans say that First Pacific intends to exploit its market dominance in food and telecommunications in Indonesia and the Philippines, respectively, to grow the conglomerate not just locally but regionally. Now that First Pacific has settled a big chunk of its debts coupled with the phenomenal performance of PLDT and Indofood, the conglomerate has a much stronger balance sheet and its financial prospects have started to shine. And when these happens, you know that financial investors, backers, and lenders are not far behind to fuel or fund growth.

On a personal note, First Pacific executive chairman Manny Pangilinan has asked Healy and Brown to finish their terms as director of First Pacific despite their decision to resign by the end of month. After the dust has settled on the First Pacific camp, it is nice to know that all’s well that ends well.

A real threat

If the President really believes that the Pandacan oil depots are a threat, then she should also consider a more serious and real danger – that posed by dilapidated, rusty and underfilled LPG cylinders.

These LPG cylinders, produced and sold by unauthorized establishments and which have caused some 500 fires in the country, sit there at the kitchens like menacing tinderboxes that could explode anytime due to the absence of safety features, exposing mothers, wives and household help to possible fatal accidents.

I am glad Justice Secretary Simeon Datumanong has retained the commitment of his predecessor, Nani Perez, to go after illegal LPG refillers. Meanwhile, his dedicated agents in the National Bureau of Investigation (NBI) have silently stalked these establishments, raiding them at the opportune time and filing charges before the Department of Justice (DOJ). I understand most of the cases have not yet been acted upon by the DOJ. But following Secretary Datumanong’s public commitment to the fights versus illegal LPG refillers, we can be sure the wheels of justice can grind even just a wee bit faster.

I also know that Energy Secretary Vincent Perez is working zealously with Local Government Secretary Joey Lina to have these establishments padlocked. At one time, even Trade Secretary Mar Roxas was running after dilapidated illegal cylinders himself.

So, there you have it: Three line departments and one law enforcement agency arrayed against this menace. Could the deathblow be within sight?

Our hope is that President Gloria Macapagal-Arroyo would take up the cause herself. Anyway, the government is practically at war with the syndicates behind the illegal LPG trade, what with her key Cabinet men already in the frontlines.

A bill proposing an LPG Industry Code seems to have been buried somewhere in the Lower House. It is a good draft code since the proposed legislation is designed to make the LPG industry accountable and responsible while stamping out the illegal refilling business by making it more difficult for refillers to steal LPG cylinders. The proposed code also imposes very stiff fines and penalties, way more severe than what present laws pose. After all, lives are at stake here.

Stiffer penalties against illegal refillers and higher quality standards for LPG cylinders should make it unprofitable for unauthorized refillers to continue doing business. The code also wants to make it easier for law enforcement authorities to spot an illegal cylinder. Possession of one makes it feel like holding on to an unlicensed firearm. Fine with us. An illegal LPG cylinder and a gun are both instruments for killing.

Secretary Perez said the proposed law could weed out the so-called "backyard refillers" which pose the most hazard to our neighborhoods. Higher standards of safety and cylinder quality will also be imposed.

President Arroyo could be the Chief Executive who could succeed on getting rid of the illegal LPG refilling terror. Homemakers would be grateful.

Cheap cars, anyone?

A 2002 Volkswagen Beetle with a declared value of P27,237; a BMW Z3 Roadster appraised at P74,644; a brand-new Mitsubishi Pajero valued at P191,103; a brand-new Toyota Land Cruiser Land valued at P279,260; a BMW 525IA valued at P320,274 and a Mercedes 190E appraised at P482,350?

Or how about this: 16 units of used Mitsubishi vans with a total value of P412,926, or P25,984 each? Or 13 units of used Toyota utility vans with total value of P209,602, or P15,670 each ?

No wonder our local car manufacturers are fuming mad.

According to Sen. Ralph Recto, chairman of the Senate ways and means committee, there were easily a thousand used vehicles which were imported last year, each valued at an ukay-ukay rate of less than P70,000 each, and misdeclared in an attempt to evade the payment of the proper duties and taxes.

It was the Department of Finance that provided Recto’s committee with documents indicating the models and quantities of the vehicles imported last year and the duties, excise and VAT taxes paid for these.

An excise tax ranging from 15 percent to 100 percent is slapped on imported vehicles. On top of this, a 30-percent duty is assessed plus a VAT of 10 percent . The excise tax is based on the importer’s selling price or the declared value taking into consideration engine displacement and type of fuel.

Bulk of the vehicles cars entered through the Ports of Manila and Subic.

There is no reason why government cannot raise the money it needs, if only it will be serious enough in minimizing, if not putting a stop to, incidences of technical smuggling and tax evasion.

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