Year of the Dog

The Chinese Lunar New Year marks 2018 as the Year of the Dog. Unfortunately for former CHED secretary Patricia Licuanan and Rappler, far from being an auspicious year, they ended up in the presidential dog house. 

First, former CHED chairman Patricia Licuanan, who according to those who should know —mainly the academic community and not bureaucrats honed in the art of infighting — is one of the most competent and dedicated official to occupy that post.  She received a not so subtle letter from Executive Secretary Salvador Medialdea, suggesting like the proverbial gun placed in front of her and told to do the honorable things. She resigned last Monday. Her crime? Too much traveling. But exactly when is too much? Government officials are required to seek authority from the Office of the President, so they should have stopped approving those permits when it deems them unnecessary or excessive. In any case, her transgressions pales in comparison with a number of other officials who are guilty as sin of corruption, or are plain incompetent but who remain in office. Licuanan is not the first to be drummed out of office for excessive travel. Does this suggest that having itchy feet is a far greater crime than having itchy fingers under this administration? 

Then Rappler, finds its certificate of registration canceled by the SEC for violating the constitutional provisions barring foreign entities or individuals from investing in equity in mass media. The SEC ruled that the conditions of the Philippine Depositary Receipts issued to Omidyar Plc, a foreign company, constitutes a violation of that constitutional provision. Given the President’s well-documented dislike for Rappler, stemming from its criticism on, among others, the anti-drug war, many people are wondering about the timing of the SEC decision which essentially strips Rappler of its right to exist.

To top off the first 15 days of the new year, came the news that the Department of Foreign Affairs had given permission for the Chinese to conduct scientific research in the Benham Rise while allegedly denying a similar request from a French non-profit organization. While our obligation under UNCLOS requires the Philippines to allow marine research to be conducted in such areas that are part of our continental shelf, but not part of the Philippine territory, it behooves the question of the preference to Chinese presence over the French when they have been asserting sovereignty on disputed areas in the South China Sea which the UN Permanent Court of Arbitration says China has no right to claim. Wouldn’t this be like giving the fox the keys to the hen house? A fox is a canine as well, so would that explain why we chose China — this being the Year of the Dog? I suppose its as good as any explanation at this point.

China’s NDRC

 Last Dec. 26, 2017, the National Development and Reform Commission (NDRC) issued No. 11 Order which covers Administrative Measures for Outbound Investments by Enterprises. This new order expands and further specifies the scope of NDRC’s supervision authority.

The No. 11 Order is a key step taken by NDRC to streamline its supervision of Chinese outbound investment activities and improve the current governance structure. NDRC has indicated that the No. 11 Order is aimed to enhance macro administration of outbound investments, improve the government’s support of Chinese investors, improve the supervision of and promote continuous development of overseas investments, and safeguard the Chinese national interest.

The order specifies eight typical outbound investment activities that would be covered, such as acquisition of real property or natural resources, investment into infrastructure or fixed assets, equity investments or investments into investment funds, etc. However, the list is not intended to be exclusive. 

The order explicitly points out the financial institutions that will need NDRC’s approval or registration to make any outbound investments.

I think it is important for China watchers to realize how the Chinese government encourages and, at the same time, controls investments abroad.  In other words, we should be fully aware that potential investors in the Philippines automatically have the Chinese government’s imprimatur. Geo-political reasons may even supersede purely commercial objectives. Trojan Horse???  

Rohingya crisis

 UN Secretary-General Antonio Guterres calls the Rohingya crisis a “humanitarian and human rights nightmare.” At an emergency UN Security Council meeting, US Ambassador to the United Nations Nikki Haley said Myanmar authorities have carried out “brutal, sustained campaign to cleanse the country of an ethnic minority,” and she called on members to suspend weapons provisions to the military. Zaid Ra’ad Al Hussein, who heads the UN’s watchdog for human rights across the world, doesn’t rule out the possibility that Aung San Suu Kyi and Armed Forces head General Aung Min Hlaing could face genocide charges in the future.

 A popular children’s book entitled Good Night Stories for Rebel Girls is a collection of female role models from Amelia Earhart to Hillary Clinton and Serena Williams. Because of her fall from grace, regarding her cover up of the Rohingya Muslims violence, (called by the UN as textbook ethnic cleansing), the authors are considering removing her from the reprints.  

 As one who held her with great respect in the past, I support the condemnation she is now facing.  Ironically she once said “It is not power that corrupts, but fear. Fear of losing power corrupts those who wield it and fear of the scourge of power corrupts, those who are subject to it.”