Newscast: The World Tonight - Broadcast date: 01/31/97
Homepage: ABS-CBN Broadcasting Corp.
Copyright © 1996, ABS-CBN Broadcasting Corp.

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MWSS privatization stopped by the Court of Appeals

THE COURT of appeals has temporarily stopped the privatization of the MWSS.

The court was acting on a petition by a group of private citizens who say the sale of the water utility is against the constitution.

Since the winning bidders were announced January 23, Malacanang has been trying to downplay fears of higher water rates and more jobless MWSS workers. The MWSS privatization is not yet water under the bridge. The court of appeals won't allow it not until Malacanang defends the deal from five petitioners who want it cancelled.

The petitioners are led by Rizal Governor Casimiro Ynares and former Congressman Francisco Sumulong. The group is protesting the possible lay-offs from the M-W-S-S and the lack of public consultation on the privatization.

But sources say there are business interests also at stake. One of the petitioners, former Armed Forces Chief Lisandro Abadia, is chairman of a Rizal-based company that could have been a private contractor of the MWSS. The appelate court says Malacanang and the MWSS should respond to the complaints within ten days before it decides on issuing a preliminary injunction. The government is prevented from finalizing the sale to the Benpres and Ayala Groups.

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Ayalas and Lopezes: Oligarchs

They have been called oligarchs. A reference to the wealthy and influential families Marcos once vowed to crush. But the Ayalas and the Lopezes say it was good business sense not special privileges that put them where they are now.

The winning consortia are led by two of the biggest and most respected names in business. The Ayala Corporation is one of the oldest business houses in the country. Dating back to 1834, Benpres holdings is into broadcasting, financial services, power and energy and telecommunications.

Fernando Zobel is a sixth generation Zobel de Ayala. Eugenio Lopez, an entrepreneur and industrialist was behind the Filipinization of Meralco. His son, Eugenio Lopez, Jr. is the president and C-E-O of Benpres holdings.

They say oligarchy went out with the Marcos regime. Fernando Zobel says "those words are normally used when people get special privileges. When they cornered the market with sweetheart deals, that's the thing. I don't think that's the case right now. With the liberalization of the economy more and more foreign firms are coming into the country and the big names in Philippine business are hard put to compete even Malaysian and Indonesian companies have come to invest. That's because they were allowed to grow in their countries."

While Eugenio Lopez II says " we, despite our size, i can't say we will expect to go to other countries outside of the Philippines cause i think we're not that big. Do we have the resources to go regional. And yet what has happened here is when the president deregulated and demonopolized a lot of industries in effect he likes to say hey guys you have to get your acts together, you have to be world class. The companies want to be judged against their track record."

The Benpres-lyonnaise waterworks will run the west zone while the manila waterworks will run the east. Each will pay an annual concession fee which the MWSS will use to pay off its debts as for the difference in water rates.

IFC documents show that's because 80 percent of the fees will be shouldered by the west concessionaire. Equivalent to a 4-73 per cubic meter concession fees for the east translate to 1-43. The water rate for the west is 4.97 while in the east it's 2.32.

No miracles are promised, only the assurance. The sound business sense that has kept their companies going through the years will apply in the delivery of water. Giving the consumers value for their money.

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9 alleged coddlers of Jalosjos charged

The National Bureau of Investigation recommends the filing of criminal charges against nine alleged coddlers of Congressman Romeo Jalosjos for obstruction ofjustice.

There were no big names in the list, only drivers, some friends and a bodyguard. One of them, Elizabeth Sunga who owns the farm in Batangas where Jalosjos hid.

Justice Secretary Teofisto Guingona says they are gathering evidence against other suspected coddlers. The prosecution is asking Makati RTC Judge Roberto Diokno to provide maximum security for Jalosjos on his way to the dentist. The court allowed Jalosjos to see his personal dentist because of swollen gums.

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Melchor Gabais finally met the man he calls "Daddy"

Melchor Gabais visited Congressman Romeo Jalosjos at the Makati City Jail Thursday midnight. He says he hugged Jalosjos but Jalosjos did not reciprocate. Melchor says he wants to follow in the footsteps of his daddy in politics. Now that he's a celebrity of sorts. Melchor, who is from Capiz, is planning to run for barangay councilor this May.

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Chinese woes death penalty

There was increased police visibility in Binondo today. The effort may have come too late after the Filipino-Chinese community decided to revive its neighborhood watchdogs.

In Angeles City, Pampanga, a court sentenced to death three men for kidnapping and murdering a 14-year-old high school student in July 1995. Sent to death row were Melvin Espiritu, Nixon Catli and Rommel Deang, a cousin of the victim.

The boy, Arturo Tanjueco Jr, was abducted inside his school and killed. Even after his family paid 1-point-4 million pesos in ransom.

The police were very much visible in the streets of Binondo today. There was a cop in almost every corner and patrol cars passed by every now and then. The increased visibility was meant to assure the Chinese community there was no need to take matters into their own hands.

But the community, it seems, feels more secure with the presence of their own volunteer street patrols. The volunteers are not armed but they are experts in martial arts.

Still, others are not taking any chances. They want to make sure they can protect their families and properties. But efforts by the police to make the chinese community feel more secure may have come too late, Senators Ople and Herrera say. The emergence of the volunteers indicates the chinese community may have already lost their faith in the police.

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DENR completed extermination of 600 monkeys

The Department of Environment has completed the extermination of almost 600 monkeys at a farm in Calamba, Laguna.

The Ferlite Farm was closed down to prevent an outbreak of the ebola reston strain. Seven monkeys died from the virus while 596 monkeys were killed by lethal injection. The farm was disinfected after the extermination.

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DOH lifted shellfish ban

The Department of Health and the Department of Agriculture have lifted the shellfish ban in the entire Manila Bay. Laboratory analysis show shellfish samples from Cavite, Las Pi¤as, Navotas, Bulacan and Bataan yielded negative for gynodinium catenatum -- the organisms causing red tide toxin.

The tests were done for three consecutive weeks. But Health Secretary Carmencita Reodica ordered continous monitoring of toxin levels since the organisms are known to have erratic patterns and can surface anytime.

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Anatomy of a bureaucracy

We look into why government must sometimes get out of business.

Administrator Angel Lazaro is the first to admit some things are just done better by the private sector such as running utilities like the multi-million peso water system.

Red tape is a fact of government. Lazaro says it's needed to establish checks and balances in the system and discourage corruption. But red tape has also become a source of corruption and it's the reason why things just don't get done on time.

Government agencies are not under pressure to make money, either. Agencies that don't perform well can always rely on subsidies not so with private companies. Those that don't perform well will always just go bankrupt.

Of course, accountability is one thing the private sector doesn't have and it's the reason why privatizations cast so much doubt.

In the end, it's a question of whom to trust and when government begs off from responsibility as in the case of the MWSS. Then it might be best to agree that some things are better left to the private sector.

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FVR URGE DPWH to speed up Metro Rail Transit along Edsa

President Ramos orders the Public Works Department to speed up construction of the Metro Rail Transit along Edsa.

The MRT will be partially operational by June 1998 just before the end of the President's term. The president visited the project site this morning... Despite his recent surgery, there's no stopping some sectors from seeking a second term for the president. The Philippines for Jesus Movement has launched its own signature campaign to amend the constitution.

The group's movement, "SIGN" aims to gather 3-million signatures. SIGN or "Support Initiatives for the Good of the Nation" is also pushing for the lifting of term limits of elected officials.

The first phase of the Edsa Mass Rail Transit from North Triangle in Quezon City to Shaw Boulevard will be completed in June next year. The project is ahead of schedule. But the president, who inspected the site this morning, wants it done faster.

The only problem are squatters living on land at the North Triangle where the MRT's Central station will rise projected to service over a million commuters a day. The rail line is designed to decongest Edsa. The president was in high spirits. Apparently encouraged by the construction's progress.

Before being briefed by project engineers, Ramos showed off his own credentials, he is a licensed civil engineer and he gamely signed autographs. Some attribute this light-heartedness to orders from the president's doctors to take things easy. He may have eased up, but today, Ramos showed he's still very much a hands-on president.

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DTI backs SMEX

The Trade and Industry Department will finalize a study before the end of the year to justify the creation of a separate exchange for small and medium enterprises.

The Finance Department earlier opposed the proposal saying there was not enough reason to put up a separate exchange for SME's. But Trade and Industry Secretary Cesar Bautista says the SMEX will provide more incentive for venture capital in the country.

Where a company provides financial support to help a small enterprise grow in exchange for shares in the company. He says a small and medium enterprise exchange will provide the exit mechanism for a venture capital company to take profit.

The DTI is getting an expert from nasdaq to help them make their position paper and soliciting funding for the study from the world bank.

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Toyota Open in Canlubang

At the Toyota open in Canlubang, the seasoned pros played steady when it mattered most and 3-round leader juvic pagunsan, cracked under pressure.

Danny Zarate staged a come-from-behind victory with a 2-under par 70. One shot back was Ruben Sasutil who scored a day's best 3-under par 69.

Defending champion Robert Pactolerin was 4 shots further behind. He finished joint 3rd place with Rodrigo Cuello who also fired a 69.

Pagunsan who led the first 3 rounds skyrocketed to a 79 but he managed to share the top honors in the amatuer division with national mainstay Tony Lascuna. Zarate who's leaving for Thailand on Sunday for the Honda Classic received 100-thousand pesos.

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Windsurfing in Boracay

Boracay is host to many international sporting events, divefests, mountain biking, festivals, and paraw regatta competitions.

But none can compare with the original Boracay event the windsurfing funboard cup. The Boracay funboard cup started in 1989 when a couple who owns a resort decided to hold a race at Bulabog beach to celebrate their wedding anniversary.

What started as a regatta among friends has become Asia's biggest windsurfing blast. Word about Boracay's potential as a major windsurfing destination spread fast.

Since 1992, when only 37 sailors entered the event, the number of participants has grown to 126 from 16 different countries. International friendships keeping Boracay polution free are the goals of the funboard cup. Interestingly, it does not offer any prize money. Yet majority of the participants come back year after year.

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