Twin proposals

There is now a growing clamor from both the Duterte administration and the business community for a constitutional convention to propose amendments to the 1987 Constitution to allow a shift from a unitary to a federal system of government.

No less than President Duterte has expressed preference for the ConCon mode. Joining him is House Speaker Pantaleon Alvarez who filed House Concurrent Resolution No. 1 calling for a ConCon to push the shift to federalism.

The shift to a federal form of government via a ConCon is also gaining support from the business sector.

Philippine Chamber of Commerce and Industry president George Barcelon has said a ConCon provides a more equitable representation from various sectors of society in proposing amendments to the Constitution.

Federation of Philippine Industries chairman Jess Aranza says that while a constitutional assembly (composed of members of Congress) is cheaper to organize compared to a ConCon, the integrity of the (ConAss) process could be questioned.

Meanwhile, Management Association of the Philippines president Perry Lim Pe pointed out that forming a ConAss involves only the PDP-Laban and its grand coalition with other political parties, while a ConCon represents all sectors of society, making it a “better platform for a democratic exercise.”

And to facilitate the conduct of a ConCon, Camarines Sur Rep. LRay Villafuerte has filed two bills: the first calling for the postponement of the synchronized barangay and Sangguniang Kabataan elections originally scheduled in October to February next year; and the second, for the holding of these polls simultaneous with the election of ConCon delegates.

Villafuerte said the government would save P5-to P6-billion by holding the three elections at the same time and would also give Comelec officials and employees, along with teachers and the voters themselves, “a lot of breathing space” after taking part in national elections held just this year.

Villafuerte was among the first members of the 17thCongress to publicly back charter change to lay the groundwork for the shift to a federal system of government.

He explained that federalism gives local government units full autonomy in managing their funds and resources, along with crafting their respective economic agenda best suited to their needs, considering that each region has its unique geographic, economic, cultural and social characteristics.

Villafuerte, a former chairman of the League of Provinces, is widely credited for having transformed CamSur into a powerhouse in the Bicol region, from being the 39th poorest province in the country to the 10th richest.

According to reports, CamSur – which was once troubled by communist insurgency – is now an eco-tourism paradise frequented by extreme sports enthusiasts from all over. When he was governor of CamSur, particularly in 2010, the province was able to overtake Boracay as a top tourist destination.

He said a federal system could decongest Metro Manila and invigorate the countryside through the creation of economic zones in the regions and could redistribute the national wealth which is currently concentrated in “Imperial Manila.”

Villafuerte pointed out that P898 billion of the P2.6 trillion national budget for 2015, went to the NCR and government central offices, and only P982 billion went to the other regions.

He added that minimal interference from the central government would allow provinces and cities to reach their full economic potential.

SB recognized anew

Security Bank was named the Philippines Best Bank 2016 at the Euromoney Awards for Excellence 2016 Asia in Hong Kong last July 14.

Security Bank president and chief executive officer Alfonso “Yogi” Salcedo says the award is a testament to their commitment to provide better banking experience to their clients.

The bank bested industry giants in key metrics like return on equity (ROE), return on assets (ROA), cost-to-income ratio, non-performing loan and non-performing loans coverage.

In the first quarter, SB’s ROE which is a measure of profitability rose 22 percent as its net income reached P3 billion. ROA which measures efficiency in using assets to generate earnings also went up. Cost-to-income ratio stood at 42 percent. Provision for probable credit losses was at P 212 million, showing the banks fluid position.

In the last quarter of 2015, Security Bank was named Bank of the Year – Philippines by international magazine The Banker which cited the bank’s strong management, sound business model and prudent risk management approach to determine the winner.

Meanwhile, at the recent sixth Asian Excellence Awards, SB received four awards: Asia’s Best CEO-Philippines, Best Investor Relations Company-Philippines, Asia’s Best CSR (Corporate Social Responsibility)- Philippines and Best Investor Relations Professional- Philippines.

Last year, it was named Overall Best Managed Company in the Philippines -Medium Cap by Asiamoney; Best Improved Retail Bank in Asia Pacific, Central Asia, Africa and the Gulf Region by The Asian Banker’s Excellence in Retail Financial Services Award; Best Branch Innovation in the Philippines by The Asian Banker; Best Overall for Corporate Governance in the Philippines, Best for Responsibilities of Management and the Board of Directors, and Best for Investor Relations by Asiamoney; and one of the Best Mid-Cap Companies in the Philippines by FinanceAsia.

Continuing relations with China

During the recent 41st anniversary of China-Philippines diplomatic relations and 15th China-Philippines Friendship Day, it was shown that all is not lost in our relations with China, notwithstanding the ongoing maritime dispute involving the West Philippine Sea/South China Sea.

There are those who say we as a country and as a people have much to gain from maintaining good relations with China.

For one, China has helped in the construction of now-flourishing industrial centers in seven other ASEAN member-countries, each one attracting the business of hundreds of growing Chinese companies.

Secondly, China has recognized the Philippines as an important destination in its Belt and Road Initiative, a plan to establish trade-centric transportation networks all over Central, Western, and Southeast Asia.

Thirdly, President Duterte has asked China for help with a national railway, to which China has responded positively.

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