Twobigbusinessorganizations,theFederationofPhilippineIndustries(FPI)andtheFederationofFilipino-ChineseChamberofCommerceandIndustries,Inc. (FFCCCII), will forge a joint campaign to launch a combined effort that willstrikeat theveryheartof themotive forcethatabetssmugglingandcauses ittoendure andflourishdespite relentless interdictoryaction byanti-smugglingadvocatesandgovernmentagencies.

Theiragreementtore-launchthecampaignofpatronizinglocalproductswas inspired by the speech of President Gloria Macapagal-Arroyo during thecommand conference held last March 25, 2008 at Malacañang Palace wheresheopenlyannouncedthatshewillgivepriority totheprocurementof locallymadeproducts.Moreover,inthecampaignagainstsmugglingsheunequivocallydeclaredinthesameoccasion,“thatwhenthebuyingstops,smugglingstops”.

Mr. Jesus L. Arranza, President of FPI, said that FFCCCII under the ableleadership of Mr. John K. Tan agreed to marry and jointly re-launch their“BuyPinoy” with FPI’s “Pinoy Identity, Buy Local” under a consolidated campaignslogan““BuyPinoy-BuyLocal”duringtheGeneralAssemblyoftheFederationofPhilippineindustries,wherePresidentGloriaMacapagal-Arroyowillbetheguestofhonorandkeynotespeaker,whichwillbeheldonFriday,May02,2008,12:00NN(registration will start at 10AM) at the Grand Ballroom of the InterContinentalManila,MakatiCity,becausetheyhavethesameobjective.

Arranzasaid thecampaignmessageto‘BuyPinoy,’ theFFCCCII slogan,and‘Buy Local,’ the FPI slogan, is not an empty, meaningless exhortation as itisaimedattwinobjectives—“one, toprotectconsumers fromfakeor imitationproducts which smuggled goods generally are, and two, to waste the termitesfeastingonoureconomywhichsmugglingis.”

President Arroyo Graces Launching Of The FPI–FFCCCII Joint Campaign “Buy Pinoy – Buy Local”

SUGAR INDUSTRY GROUP TO AVAIL OF TESDA’S EXPERTISE ON TECHNICAL &

VOCATIONAL TRAINING

Forreasonsthatthehumanresourceattheshopfloorlevelofthesugarindustry,representedbythePhilippineSugarMillersAssociation, Inc. (PSMA), has to proactivelycomplement the ongoing installation,operation and maintenance of upgradedand technology intensive machineries,PSMAExecutiveVice–President,V.FranciscoVarua, also concurrent FPI Director/Vice–President For Agriculture, had advised theDirectorate Of Technology of the PSMASecretariattocoordinatewithitspeerattheFPI toharmonizethesalientneedsof theirindustryassociationapropostheexpertiseandwherewithalofTESDA.

Consequently,thePSMASecretariatarranged a meeting with its counterpartat the FPI and Mr. Oscar L. Cortes, DeputyDirector For Technology of PSMA, metwith the Federation’s Secretary General,

Seated, from right to left: Edison Co Seteng - FPI Director/Executive Vice-President; Arsenio Tanco - FPI Director; John K. Tan - President, FFCCCII; Jesus L. Arranza - President, FPI & Chairman, Anti-Smuggling Committee; & Ernesto Ordoñez - FPI Director.Standing, from right to left: Victor Lim - Chairman, FFCCCII External Affairs Committee; David O. Chua - FFCCCII Board Member & Chairman, Trade & Industry Committee; Atty. Rufino M. Margate Jr. - Secretary General, FPI; Dr. Fernando Gan - Secretary General, FFCCCII; & Leonardo Chua - Vice Chairman, FFCCCII Trade & Industry Committee.

Atty. Rufino M. Margate Jr. and bernardm. feliciano, Project Officer For The FPI-TESDAPartnership,foranexplicationoftheMemorandumOfUnderstandingprevailingbetweentheFPIandTESDA.

Last April 11, 2008, the 1stExploratory Conference was carried–out atthePSMAHeadquarters locatedattheCityOfMakati, attended by the representatives fromPSMA,TESDAandFPI.

Clockwise, from left to right - Mr. Archimedes Amarra, PSMA ExecutiveDirector; Mr. Oscar Cortes, PSMA Deputy Director For Technology; Atty.RufinoMargateJr.,FPISecretaryGeneral;bernardfeliciano,ProjectOfficerForTheFPI-TESDAPartnership;Ms.IreneIsaac,TESDAExecutiveDirectorForQualificationsStandardsOffice&Mr.EdwinGatinao,TESDAExecutiveDirectorForTVETSystemsDevelopment

Continued on page 2 Continued on page 2

PresidentGloriaMacapagal-Arroyo

EXECUTIVE EDITORS:

Jesus L. Arranza;

Henry A. Tañedo;

George S. Chua;

Renato R. Ermita.

Conributors:

A. Articles-Jesus L. Arranza

FPI President & Chairman of Anti-Smuggling Committee

bernard m. felicianoTechnical Staff-Media Affairs

Stevenson C. TaveraTechnical Staff

B. Technical Inputs- Atty. Rufino M. Margate Jr. Secretary General & Judanito F. Yap IT Specialist

C. General Services-Ellen R. Cusilit

Communications and Follow-up Calls

Judanito F. Yap &

Allan A. Salvador P.O. Box Relocation and

Materials Distribution

Jocelyn C.Delos Santos; Accounting Functions

The TAMBULI Magazine, entered as a third-class mail matter at the Makati Central Post Office and published once a month, is the official publication of the Federation of Philippine Industries, Inc., with editorial office located at Suite 701 Atlanta Center, Annapolis St. Greenhills, City San Juan, Philippines. Tel. Nos. 722-3409; 721-9642; 727-4359; Fax: 722-9737 ; E-mail: fpi@fpi.ph or fpi@philonline.com; Website: http://www.fpi.ph

The views expressed in any articles or items appearing in the magazine, are those of the authors and do not necessarily reflect those of the FPI Management.

To contribute any articles, whether in the form of an industry situation analysis, position papers, or feature articles touching on issues related to industry/trade, banking and finance, environment, labor, energy and so forth, please contact the FPI Secretariat in the same address given above.

T a m b u l i

E d i t o r i a l B o a r d

For queries on subscription and/or to advertise, please contact the FPI Secretariat in the same address / contact numbers given above.

Dario A. BoragayConcept and Layout-Design

Cover & PagesPrinters

He expressed sadness that not many show concern about the pernicious effect upon the nation ofsmuggling“as its implication is generally equated only with loss of customs revenues, hardly with the moreseriousdamageitinflictsintermsoflossofjobs,lessfoodonthetable,emptypocketsforagreatmajorityofthepeopleespeciallythepoor.” “Wedon’tseeindignationralliesdenouncingsmugglers,orstreetdemonstrationsproclaimingsupportforthemenandwomentoilingsilentlytofoilsmugglingattempts,andactuallycatchingsmugglers.NotthatIamagreatfanofstreetralliesbutanydramaticshowofpublicdispleasureovertheactivitiesofsmugglers,andsupportforthosewhorisktheirnecksfightingthemcannotbuthaveapositiveeffectonthecampaignagainstsmuggling.,”Arranzasaid. Itistheferventhopeofthe2organizationsthatduringthesaidoccasionthePresidentwilldirectallgovernmentagenciesandinstrumentalitiestogivepreferencetolocallymadeproductsintheirprocurement,especiallyatthistimethatwearenotyetasignatorytotheWTOongovernmentprocurement.

Director Isaacof the Qualifications StandardsOfficeshared thatTESDA is notonlya training institution,butalso the government agency operating on the principle of partnering with industry, in terms of developing the skills,competencies, qualifications, knowledge and attitude of our human resources, aligned with the requirement/s of thespecific industrial sub–sector within the FPI sphere. Likewise, as there is the growing body of evidence that there arequalifications more effectively taught in–house and hands–on–the–job, this is one possible mode of entry where theefficacyofthetraininginterventionstobeappliedwiththesugarindustryisensured.Theprecedingiswhetheritinvolvesthecultivationof theprimarycrop,millingof therawmaterial,or refiningthesemi–finishedproduct.Such is thecasebecausealthoughTESDAisindustryled,ontheotherhand,therealqualificationstandards/trainingregulationswillhavetobegeneratedattheindustrylevel.

Mr.ArchimedesAmarra,PSMAExecutiveDirector,ontheotherhandislookingforwardofthepossibilitywhereTESDAcanapply itsorganizationalsavvy inupgradingtheskillsof thesugar industry’shumanresource relative to itsmillingoperations.Hehadexpressedconfidencethatthe ideabehind in interactingwithTESDAisthat if thepartnerscanworktogetherandcomeoutwithsomethingmutuallybeneficialtoallpartiesconcerned,theundertakingcanthenembracetheparticipationofnotonlythemembersofthePSMA,butothermillers,aswell,fromthesugarindustry.

Thus,intheprocessofenlargingthecoverageofparticipation,duringthelearningprocess,hefurtheraddedthattheundertakingcanalsoderivethecorrespondingstatisticsanddemographicswhichareprerequisitesinguaranteeingthesustainabilityoftheendeavor.

PSMADeputyDirectorForTechnology,Mr.OscarCortesaddedthatalthoughthereistheabsenceofastructuredtrainingintervention,theywereabletoidentifypositionsrequiringskills,namely–industrialelectronics,machineshopwelding and fabrication, pneumatics and repair/maintenance/troubleshooting of automated machineries in the sugarmills.Also,thereistheneedtodeveloptheskillsofthelaboratorypeopleforqualityassurance.Theprecedingarethetentativelyidentifiedoccupationsneedingenhancements,quitepalpablenow,moresothatforthepastseveralyears,themachineriesusedinthemillingoperationshaveundergonerehabilitationandmodernization.Consequently,thecontrolandinstrumentationcomponentofthesefacilitiesnowrequirehigherlevelofskillsonthepartoftheworkers.

Correspondingly, as all the foregoing are the initially identified skills entailing enrichment in the industry’sinventoryofpositions,thereistheneedthatPSMA,TESDAandFPIcollectivelypooltheirexpertiseandresourcestobeabletocomeupwithareallycomprehensiveprofilingofthesugarindustry.

FPI Secretary General, Atty. Rufino M. Margate Jr. reminded the body that there is the existing conceptualframeworkfromwhichtheactionplanapprovedbytheFPIBoDwasderived.TheforegoingactualizestheprovisionsofthememorandumofunderstandingsignedbetweentheFPIandTESDA.What’smore,theobjectiveinformulatingtheactionplanisforittoserveasthetemplateonhowtheconcernedstakeholderswillgoabouttheirrespectiverolesandresponsibilitieswithinthepurviewoftheMOU.

It was then proposed by the PSMA that they would tentatively schedule a workshop this 1st week of June,involvingpersonnelfromtheProduction,Engineering&AdministrationDepartmentsfromamongtheirmembersugarmillslocatedintheProvinceofNegros.

TESDA,fortheirpart,willsenditsexpertsinBacolodtoconducttheworkshop,aswiththeFPIwhoserepresentativewillobserveandrecordtheentiretyoftheproceedingsfordocumentationpurposes.

tosubmitquarterlySelf-MonitoringReports(SMRs)onanannualbasis,whilethosewithBlueratingsareallowedtosubmittheirSMRssemi-annually.Thisincentivewillcontinueaslongasthefirmmaintainsorimprovesitscorrespondingrating.Otherwise,suchincentiveswillbeautomaticallydowngradedorwithdrawn.

TheEcowatchRatingsystemwillbeoneofthecriteriaingivingrewardstocomplyingfirmsasprovidedforinSection2.5ofRA9275ortheCleanWaterActof2004.

IntheimplementationoftheCleanWaterAct,moreandmorecompaniesarebeingorderedbythePollutionAdjudicationBoard(PAB),acollegialbodyattachedtotheDENR,topayhugefinesandpenaltiesforviolations,whichrangestoaminimumofP10,000perdaytoamaximumofP200,000perdayasprovidedforinthelaw.ThisshowhowfirmtheDepartmentisinmakingindustriescomplywithwatereffluentstandardstoensurethatthecountry’swaterwaysarekeptcleanandfreefromanypollution.

b.3) FINALIZING THE NEW WATER QUALITY GUIDELINES AND GENERAL EFFLUENT STANDARDS OF 2008

PursuanttoSection19(e)and19(f )oftheRA9275orthePhilippineCleanWaterActof2004,theDENR-EMB,inconsultationwiththeindustrysectors,isnowfinalizingthenewWaterQualityGuidelines(WQG)andGeneralEffluentStandards(GES).ThiswillrevisetheDENRDepartmentAdministrativeOrder(DAO)34and35issuedin1990,priortotheenactmentofRA9275.Thenewguidelineswillreviseorprovideforthefollowing:

1.Scopeandcoverage2.Definitionofterms3.Classificationandguidelinesofwaterbodies (inlandandmarine)onusage, intendedbeneficialuse,andtheprimaryparameters,secondaryparameters(inorganics,toxicmetalsandorganics)4.Qualityofgroundwaterandintendedbeneficialuse5. General effluent standards on: quality parameters per sector under the PSIC industry category, based on flowrate, effluent discharge onestablishmentdischarging>30m3/day,discharging<30m3/day,discharging>3,000mg/LBOD,regardlessofvolume,andBODforstrongindustrialwastes,6.Modificationofdesignatedwateruses7.Additionalprimarywaterqualityparameters8.ModificationofWQGvalues9.ModificationofsignificanteffluentqualityparametersandGESvalues10.And,approvedmethodofanalysis,andtheapplicationofpenaltiesandsanctionsthereof

FailuretocomplywithanyoftheaboveprovisionsshallbeliableunderSection28oftheCWA,andshallbemetedwithhugefinesandimposedofothersanctionsuptoclosureofviolatingestablishments.

ThefinaldraftoftheproposedWQGandGESasofMarch2008wasemailedtotheFPImembersforcomments.TheinputsgatheredweresubmittedtotheEMBonthe1stweekofApril2008forconsideration.Thelatestindustryconsultationwasheldon10April2008whichwasorganizedbyPCCIandtheEMB.

TheEMBatpresentisfinalizingtheproposedWQGandGESandisbeingreadiedforthesignatureoftheDENRSecretary,ideallytargetedonorbeforeApril22,2008,forimplementation.NextwouldbethecraftingoftheSpecificEffluentStandardsorSESorspecificeffluentstandardsperindustrysector.

b.4) EMB PROJECT TO DESTROY PERSISTENT ORGANIC POLLUTANTS COMMENCES

The DENR-EMB, in partnership with the United Nations Industrial Development Organization (UNIDO) and the Global Environment Facility(GEF), recentlycommencedits four-yearprojectaimedatdemonstratingtheviabilityandremovalofbarriersthat impedetheadoptionandsuccessfulimplementationofavailablenon-combustiontechnologiesfordestroyingPersistentOrganicPollutants(POPS)inthecountry,includingthepolychlorinatedbiphenylorPCBpresentinvariousindustries.

Theprojectwillcoverthedestructionof1,500tonsofPCB-containingequipmentandwastesasthefirstpartofthe6,879tonsactuallyidentifiedduringtheinitialinventoryprocess.

InMay2004,theGEFCouncilapprovedtheprojectbriefwhichaimstointroduceandapplysuchtechnologytodestroysignificantobsoletePCBwastesandwillhelpremovebarrierstothefurtheradoptionandeffectiveimplementationofaselectednon-combustiontechnology.ThesameisexpectedtomeettheStockholmConventionrequirementstoensuretheuseofbestavailabletechniques(BAT)andbestenvironmentalpractices(BEP).

TheNational ImplementationPlanof theStockholmConvention inthePhilippines favors theapplicationofnon-combustiontechnologies todestroyPOPs.

Theprojectwill:1.makeavailablealltechnical,economicandfinancialparametersoftheselectedtechnologyinacomparative,and2. open and transparent way that would facilitate to provide further incentive to the global diffusion of innovative alternative non-combustiontechnologies.

Theprojecthasrecentlyconveneditsmulti-stakeholdersteeringcommitteemeetingtodiscussinitialstepslinedup.

President Arroyo Graces.....Continued from page 1

SugarIndustryGroup.....Continued from page 1

reportfiledby:bernardm.feliciano

2 7

HAPPYENDOFSUMILAOLANDCONFLICTHAILED

Thecountry’sbiggestmulti-industryorganizationyesterdayhailedthecomingtotermsbySanMiguelFoods,IncandtheSumilaofarmersthatendedtheirlong-drawnownershipconflictoverthe144-hectarefarmlandinSumilao,Bukidnon. TheFederationofPhilippineIndustries,speakingthroughitsPresidentJesusL.Arranza,saidthe“win-win”solutiontotheconflictwhichgivesthefarmers50hectaresfromthecontestedland,andleavesthebalancetoSMFIforitsstate-of-the-arthogfarm,“isatriumphofreasonandcompassionoveremotionalismanddiscernmentlackwhichisoftenthecauseofdelayorevenfailureinheadingoffaclashbetweentwopartiesonacollisioncourse.” Arranzasaid it is to thegreatcredit of the farmers that theysawthegreateradvantageandpracticalwisdomof acceptingaresolutionthatdidnotgivethem100%oftheirdemandthangoingintoaprotractedcourtbattleinwhichthere’snoguaranteetheywouldgetapositiveresult..

“San Miguel officials should also be commended for showing that steam-rolling opposition is not a virtue nor an admirabledemonstrationofcorporatemuscle.Showingcompassionforthelittlemenis,andgivingconcessionsthatdonotcompromiseprinciplesbutpromoteharmony,moreso,”Arranzaadded.

Atthesametime,ArranzasaidtherearesomelessonstobelearnedfromtheSumilaolandcontroversy.Oneofthemistheneedforthegovernmenttorevisititslanddistributionpolicy.

Hesaidatpresent,thestrategyistoparceloutbiglandedestatestotheirtenantsthroughthecomprehensiveagrarianreformprogram.Whatthisstrategyhasresultedinisbadbloodbetweenthefarmersandlandowners,andrashofconversionsofagriculturallandsintosubdivisionsandgolfcourses.

“Whatwehaveachievedbythestrategyisdiminutionofourrice-producingareainsteadofenlargingittokeepinstepwithourpopulationgrowth.That’swhytryhardaswedowecannotachievericeself-sufficiency.”Arranzapointedout.

Hesaidinsteadofeyeingalwaysprivatelyownedlandstogivetothelandless,thegovernmentshouldlookatpubliclandsofwhichtherearemillionsofhectares“lyingoutthereidle,undevelopedandunproductiveanddistributetheseinsteadtofarmers.”“Wehaveasuccessfulmodelforsuchastrategy,”hesaid.

Arranzarecalledthatinthe1950’sthelatePresidentRamonMagsaysayinitiatedaland-for-the-landlessprogramtoaddresstheagrarianunrestinCentralLuzonandelsewhere.Throughanagencyhecreated,theNationalResettlementandRehabilitationAdministration(NARRA)hemovedlandlessfamiliesbythethousandstosettlementsitesinMaramag,Bukidnon,Wao,Lanao,andPanacan,Palawanwheretheyweregiveneach8hectaresoffarmlotand600squaremeterhomelot.

Thesettlersweregiven farm implements,workanimalsandsubsistenceration forfivemonthswhentheywereexpectedthegathertheirfirstfarmharvests.Itwasnotatallasoftlifeofhandouts.LikethepioneersoftheOldAmericanWestNARRAsettlershadtoclear.thelandawardedtothem.

“Ihaveoftenwonderedwhyweabandonedthisstrategytosolveinapositivewaytheproblemoflandlessness.NeedlesstosaytheseNARRAsettlementprojectsaretodaynotonlythrivingbutwealthycommunities,’Arranzasaid.

Hesaidthegovernmentshouldasksomehardquestionsbeforeitsinksmoremoneyintolandreformprogramlike:Havethelandstakenawayfromprivatelandownersbecomemoreproductiveorinfactproducedlessaftertheyweregiventothetenants?HowmanyofthelandsgiventothefarmersthroughCARPhavecontinuedtoremainwiththemandhavenotbeensoldoff?

Arranzasaidthegovernmentwouldachievemoremeaningfulresultsforitslandredistributionpolicyifinsteadofusingitsfundstopayforthelandsofprivatelandowners,itre-channelsthefundstoclearingofpubliclands,buildingroadsandirrigationfacilitiesandotherinfrastructurestherein.

“ThestrategyworkedwellduringRM’stime,Idon’tseeanyreasonwhyitwon’tworkjustaswellnow,”hesaid.

JesusL.Arranza

3

EDISON T. CO SETENGDirector/Executive Vice-President

Vice-Chairman, FPI Anti-Smuggling Committee

Co-Chairman, FPI/PCCI Customs Consultative Group

•Vice-Chairman of the FPI Anti-Smuggling Committee•President of Ceramic Tile Manufacturers’ Association•Member of Philippine-Japan Friendship Society•Member of Philippine Chamber of Commerce and Industries•Chairman of the Board, Mariwasa Manufacturing, Inc.•Chairman of the Board, Siam Mariwasa Toto•Chairman of the Board, Mariwasa Siam Ceramics, Inc.

JESUS L. ARRANZAFPI President and Chairman of FPI Anti-

Smuggling Committee

•President and past Chairman of the Federation of Philippine Industries•Chairman of the Board and President of AFTA Corporation•President of Duratainers, Inc.•President (and founder) of the Confederation of Homeowners Association for Reforms in Government and Environment•Chairman of the Board of the Coconut Oil Refiners Association•Member of the Advisory Council of National Anti-Smuggling Task Force •Consultant on Homeowners Affairs, Housing and Land Use Regulatory Board (HLURB)•Consultant to the Presidential Anti-Smuggling Group (PASG)•Consultant to the National Bureau of Investigation (NBI)•Member Governing Board, Philippine Coconut Authority (PCA)•Consultant to the Department of Energy (DOE)•Director, United Coconut Planters Bank (UCPB)•Designated by PGMA as head of Private Sector in Anti-Smuggling Campaign.•former Chairman of the Board of United Coconut Association of the Philippines•founding Chairman of the Board of the ASEAN Vegetable Oils Club•former President of San Pablo Manufacturing Corporation•former Professor of University of the East Graduate School for Public Administration•Master of Public Administration, University of the East•Bachelor of Arts in Economics, University of the East

MENELEO J. CARLOS, JR.Chairman of the Board

•Chairman of the Board of Federation of Philippine Industries•President of Resins, Inc.•President of RI Chemical Corporation•President of Riverbanks Development Corporation•Director of Integrated Microelectronics, Inc.•Director of Ayala Corporation•Chairman of Networking Committee on Materials Supply Chain, Export Development Council•Chairman of Philippine Product Safety and Quality Foundation•B. Chemical Engineering with Certificate of Advanced Engineering Study, Cornell University, Ithaca, New York

RENATO R. ERMITADirector/Vice President for Manufacturing

Chairman of the FPI Golf Committee

•Director/Vice-President, Manufacturing of the Federation of Philippine Industries•President of Asahi Glass Philippines, Inc.•President of Republic-Asahi Realty Corporation•President of Flat Glass Alliance of the Philippines•Director of Chamber Lending Corporation•Chairman of Pietro Quarries•Chairman of Acacia Realty•Director of Pasig Chamber of Commerce and Industry•Member of the DOH Organ Donation Program Advisory Board•Member of the Board of Directors of the Meralco Foundation•B.S. Chemical Engineering, De La Salle University•passed (Top Ten) Board of Chemical Engineering•Top Management Profession, Asian Institute of Management•past Director of Philippine Institute of Chemical Engineers•Glass Technology, AFG, Kingsport Tenn., USA

HENRY A. TAÑEDODirector and Chairman of FPI Ways and

Means CommitteeMember, FPI Golf Committee

•President and CEO of PHILCAN Industrial Corporation•President of Starforce Security and Allied Services•President of Magaforce Security and Allied Services•President of Galacticforce Security Services•Chairman of Mr. Cook’s International•Chairman of Food Maker Center Corporation – Jollibee•Managing Director of Scitech Outdoor Advertising, Inc.•Executive Vice-President of Duratainers, Inc.•Chairman, Sights and Graphics Outdoor Media, Inc.•President and Chairman of the Board of Tin Can Makers Association of the Philippines•Director of Philippine Iron and Steel Institute•Member of Packaging Institute of the Philippines•Member of Philippine Chamber of Commerce and Industry•President of Rotary Club of Greenmeadows, 2006-2007•Member of Philippine Association of Paint Manufacturers•BS Industrial Management Engineering/Mechanical Engineering, De La Salle Univ.•Master of Industrial Engineering, University of the Philippines

COMMODORE GEORGE S. CHUA, PCGADirector and Treasurer, FPI

Chairman, Management Committee, FPIMember, Ways and Means Committee, FPI

Member, Golf Committee, FPI

•Chief Operating Officer, EVP & Director, Arms Corporation of the Philippines•Director, Precision Foundry of the Philippines, Inc. (PFPI)•Director, ARMSCOR Shooting Ranges, Inc.•President, Kimberly Realty Corporation•President, Fotoland, Inc.•President, Photomick, Inc.•Chairman and President, Dos Mundos Sanglaan Corporation•Professorial Lecturer, MBA-University of the Philippines, Diliman•Trustee, FINEX Foundation•Business Columnist of Manila Bulletin•MBA, major in Finance and Management, Wharton, University of Pennsylvania•B.S. Mechanical Engineering, De La Salle University•B.S. Industrial Management Engineering, De La Salle University

V. FRANCISCO VARUAFPI Director/Vice-President, Agriculture

•Director of Federation of Philippine Industries•Vice-President/Member of the Executive Committee of Jose Cojuangco and Sons, Inc.•Vice-President of Central Azucarera de Tarlac•Executive Vice-President/Board of Trustees of Philippine Sugar Millers Association•President/Board of Directors of Subic Bay Biofuels, Inc.•Bachelor of Arts, Major in Economics, Ateneo de Manila University•Masters in Business Administration, University of the Philippines

RAMON C. AGUSTINESDirector/Assistant Treasurer of FPIChairman, Committee on Academe

•Director of Federation of Philippine Industries•Chairman of FPI Academe Committee•President of Philippine Association of Battery Manufacturers•President of Oriental and Motolite Corporation•President of Philippine Batteries, Inc.•Master in Business Administration, Asian Institute of Management•B.S. Industrial Engineering, Lehigh University, Bethlehem, PA., USA

CHRIS J. NELSONDirector

•Managing Director, Philip Morris Philippines Manufacturing Inc.•Director, American Chamber of the Philippines•Member, Management Association of the Philippines•Member of Philippine Chamber of Commerce and Industry•Master of History, Cambridge University

ARSENIO N. TANCODirector

•Director of Federation of Philippine Industries•President and Executive Chairman of Coats Manila Bay, Inc.•Senior Vice-President of Philippine First Insurance Company, Inc.•Director of Philippine Belt Manufacturing Corporation•Director of Manila Bay Hosiery Mills, Inc.•Past District Governor of Rotary International District 3800 •Past Deputy Chair, Philippine College of Rotary District Governor•Chairman of (Rotary) AICHI D2760 D3800 Scholarship Foundation, Inc.•Vice-President/Director of Textile Mills Association of the Philippines•Chairman of Federation of Philippine Textile Industries•Listed in Marquis Who’s Who in the World, 1978-2003; Marquis Who’s Who in Finance and Industry, 1999-2003; Who’s Who of Professionals, 2003; Men of Achievement, 1979 (International Biographical Center); International Who’s Who of Intellectuals, 1982; International Book of Honor, American Biographical Institute; Dictionary of International Biography, 1987; Who’s Who in Australia and in the Far East, 1991 (International Biographical Center)•Listed in Marquez Who’s Who in the World in finance and business, 2008-2009

JOSE CH. ALVAREZDirector

•Director of Federation of Philippine Industries•Chairman and CEO of Philippine Phosphate Fertilizer Corporation•Chairman of BMW Philippines Corporation•Chairman of Columbian Motors Corporation•Chairman and President of Penta Pacific Realty Corporation•Chairman of Columbian Autocar Corporation•Chairman of Rio Verde Water Consortium•Bachelor Degree, Xavier University

ERNESTO ORDOÑEZDirector

•Director of Federation of Philippine Industries•President of Cement Manufacturers Association of the Philippines•Chairman, Agriwatch, Inc.•National Coordinator, Alyansa Agrikultura•Weekly Columnist of Philippine Daily Inquirer•past Cabinet Secretary for Presidential Flagship Programs and Projects•past Undersecretary of the Department of Trade & Industry and Department of Agriculture•past Governor of the Board of Investments•past Chairman of the Construction Industry Authority of the Philippines•past Commissioner of the Export Processing Zone Authority•past Director of the National Housing Authority•past Senior Manager of Xerox Corporation in USA•M.S. in Marketing•Ph.D. in Business Administration. New York University where he received straight A’s for three consecutive years•M.A. in Administrative Sciences, Yale University, Summa Cum Laude•A.B. Economics, Ateneo de Manila University, Cum Laude

EDWIN LLANA UMALIDirector

•Director of Federation of Philippine Industries•President and Chief Operating Officer, Mabuhay Vinyl Corporation•past President of Chemical Industries Association of the Philippines•Member of Philippine Business for SocialProgress, Luzon Regional Committee•past Adviser of Philippine Plastics Industries Association•Member of Management Association of the Philippines•Member of Philippine-Japan Economic Cooperation Committee •B.S. Industrial Management Engineering Minor in Mechanical Engineering, De La Salle University

ABETO A. UYDirector

•Director of Federation of Philippine Industries•Chairman and Stockholder of PHILSTEEL Holdings Corporation•Chairman and Stockholder of Steel Corporation of the Philippines•Chairman and Stockholder of Philippine Steel Coating Corporation•Chairman and Stockholder of Philmetal Products, Inc.•Chairman and Stockholder of Steel Frame Philippines, Inc.•Chairman and Stockholder of Philsteel Ventures, Inc.•Chairman and Stockholder of AAU Real Estate Development Corporation•Chairman and Stockholder of Omni-Asia Property Ventures, Inc.•Director of Investment and Capital Corporation of the Philippines•Director of Beacon Property Ventures, Inc.•Member of Presidential Iron and Steel Committee•past President of Filipino Galvanizers Institute•past President of Philippine Iron and Steel Institute •BSBA, Economics, Wartburg College•Law, Adamson University•MBA units, Ateneo de Manila University

ELIZABETH H. LEEDirector

•Director of Federation of Philippine Industries•President, Chamber of Automotive Manufacturers of the Phils. Inc. (CAMPI)•Executive Vice-President, Universal Motors Corporation (UMC)•Director, Philippine Automotive Federation (PAFI) •Council Member, ASEAN Automotive Federation (AAF)•Awardee, 2007 TOWNS (The Outstanding Women in the Nation’s Service)•Awardee, 2002 – 2004 Nissan EVP Award •previously connected with SGV/Arthur Andersen’s Business Consulting Group and Merrill Lynch’s Private Client Group in California, USA• M.A. in Business Administration,California State University

ATTY. RUFINO M. MARGATE, JR.Secretary General

•Secretary General, Federation Of Philippine Industries•Member, Integrated Bar of the Philippines (IBP)•Member, World Jurist Association (WJA)•Member, Immigration Lawyers Association of the Philippines•Member, Lambda Rho Beta Fraternity, San Beda College of Law•Writer, Discover Philippines (Immigration Section)•Former Special Counsel, Iriga City Prosecutors Office•A.B. Political Science, San Beda College•Law, San Beda College

T h e F P I D i r e c t o r at e 2 0 0 8 - 2 0 1 04 5

EDISON T. CO SETENGDirector/Executive Vice-President

Vice-Chairman, FPI Anti-Smuggling Committee

Co-Chairman, FPI/PCCI Customs Consultative Group

•Vice-Chairman of the FPI Anti-Smuggling Committee•President of Ceramic Tile Manufacturers’ Association•Member of Philippine-Japan Friendship Society•Member of Philippine Chamber of Commerce and Industries•Chairman of the Board, Mariwasa Manufacturing, Inc.•Chairman of the Board, Siam Mariwasa Toto•Chairman of the Board, Mariwasa Siam Ceramics, Inc.

JESUS L. ARRANZAFPI President and Chairman of FPI Anti-

Smuggling Committee

•President and past Chairman of the Federation of Philippine Industries•Chairman of the Board and President of AFTA Corporation•President of Duratainers, Inc.•President (and founder) of the Confederation of Homeowners Association for Reforms in Government and Environment•Chairman of the Board of the Coconut Oil Refiners Association•Member of the Advisory Council of National Anti-Smuggling Task Force •Consultant on Homeowners Affairs, Housing and Land Use Regulatory Board (HLURB)•Consultant to the Presidential Anti-Smuggling Group (PASG)•Consultant to the National Bureau of Investigation (NBI)•Member Governing Board, Philippine Coconut Authority (PCA)•Consultant to the Department of Energy (DOE)•Director, United Coconut Planters Bank (UCPB)•Designated by PGMA as head of Private Sector in Anti-Smuggling Campaign.•former Chairman of the Board of United Coconut Association of the Philippines•founding Chairman of the Board of the ASEAN Vegetable Oils Club•former President of San Pablo Manufacturing Corporation•former Professor of University of the East Graduate School for Public Administration•Master of Public Administration, University of the East•Bachelor of Arts in Economics, University of the East

MENELEO J. CARLOS, JR.Chairman of the Board

•Chairman of the Board of Federation of Philippine Industries•President of Resins, Inc.•President of RI Chemical Corporation•President of Riverbanks Development Corporation•Director of Integrated Microelectronics, Inc.•Director of Ayala Corporation•Chairman of Networking Committee on Materials Supply Chain, Export Development Council•Chairman of Philippine Product Safety and Quality Foundation•B. Chemical Engineering with Certificate of Advanced Engineering Study, Cornell University, Ithaca, New York

RENATO R. ERMITADirector/Vice President for Manufacturing

Chairman of the FPI Golf Committee

•Director/Vice-President, Manufacturing of the Federation of Philippine Industries•President of Asahi Glass Philippines, Inc.•President of Republic-Asahi Realty Corporation•President of Flat Glass Alliance of the Philippines•Director of Chamber Lending Corporation•Chairman of Pietro Quarries•Chairman of Acacia Realty•Director of Pasig Chamber of Commerce and Industry•Member of the DOH Organ Donation Program Advisory Board•Member of the Board of Directors of the Meralco Foundation•B.S. Chemical Engineering, De La Salle University•passed (Top Ten) Board of Chemical Engineering•Top Management Profession, Asian Institute of Management•past Director of Philippine Institute of Chemical Engineers•Glass Technology, AFG, Kingsport Tenn., USA

HENRY A. TAÑEDODirector and Chairman of FPI Ways and

Means CommitteeMember, FPI Golf Committee

•President and CEO of PHILCAN Industrial Corporation•President of Starforce Security and Allied Services•President of Magaforce Security and Allied Services•President of Galacticforce Security Services•Chairman of Mr. Cook’s International•Chairman of Food Maker Center Corporation – Jollibee•Managing Director of Scitech Outdoor Advertising, Inc.•Executive Vice-President of Duratainers, Inc.•Chairman, Sights and Graphics Outdoor Media, Inc.•President and Chairman of the Board of Tin Can Makers Association of the Philippines•Director of Philippine Iron and Steel Institute•Member of Packaging Institute of the Philippines•Member of Philippine Chamber of Commerce and Industry•President of Rotary Club of Greenmeadows, 2006-2007•Member of Philippine Association of Paint Manufacturers•BS Industrial Management Engineering/Mechanical Engineering, De La Salle Univ.•Master of Industrial Engineering, University of the Philippines

COMMODORE GEORGE S. CHUA, PCGADirector and Treasurer, FPI

Chairman, Management Committee, FPIMember, Ways and Means Committee, FPI

Member, Golf Committee, FPI

•Chief Operating Officer, EVP & Director, Arms Corporation of the Philippines•Director, Precision Foundry of the Philippines, Inc. (PFPI)•Director, ARMSCOR Shooting Ranges, Inc.•President, Kimberly Realty Corporation•President, Fotoland, Inc.•President, Photomick, Inc.•Chairman and President, Dos Mundos Sanglaan Corporation•Professorial Lecturer, MBA-University of the Philippines, Diliman•Trustee, FINEX Foundation•Business Columnist of Manila Bulletin•MBA, major in Finance and Management, Wharton, University of Pennsylvania•B.S. Mechanical Engineering, De La Salle University•B.S. Industrial Management Engineering, De La Salle University

V. FRANCISCO VARUAFPI Director/Vice-President, Agriculture

•Director of Federation of Philippine Industries•Vice-President/Member of the Executive Committee of Jose Cojuangco and Sons, Inc.•Vice-President of Central Azucarera de Tarlac•Executive Vice-President/Board of Trustees of Philippine Sugar Millers Association•President/Board of Directors of Subic Bay Biofuels, Inc.•Bachelor of Arts, Major in Economics, Ateneo de Manila University•Masters in Business Administration, University of the Philippines

RAMON C. AGUSTINESDirector/Assistant Treasurer of FPIChairman, Committee on Academe

•Director of Federation of Philippine Industries•Chairman of FPI Academe Committee•President of Philippine Association of Battery Manufacturers•President of Oriental and Motolite Corporation•President of Philippine Batteries, Inc.•Master in Business Administration, Asian Institute of Management•B.S. Industrial Engineering, Lehigh University, Bethlehem, PA., USA

CHRIS J. NELSONDirector

•Managing Director, Philip Morris Philippines Manufacturing Inc.•Director, American Chamber of the Philippines•Member, Management Association of the Philippines•Member of Philippine Chamber of Commerce and Industry•Master of History, Cambridge University

ARSENIO N. TANCODirector

•Director of Federation of Philippine Industries•President and Executive Chairman of Coats Manila Bay, Inc.•Senior Vice-President of Philippine First Insurance Company, Inc.•Director of Philippine Belt Manufacturing Corporation•Director of Manila Bay Hosiery Mills, Inc.•Past District Governor of Rotary International District 3800 •Past Deputy Chair, Philippine College of Rotary District Governor•Chairman of (Rotary) AICHI D2760 D3800 Scholarship Foundation, Inc.•Vice-President/Director of Textile Mills Association of the Philippines•Chairman of Federation of Philippine Textile Industries•Listed in Marquis Who’s Who in the World, 1978-2003; Marquis Who’s Who in Finance and Industry, 1999-2003; Who’s Who of Professionals, 2003; Men of Achievement, 1979 (International Biographical Center); International Who’s Who of Intellectuals, 1982; International Book of Honor, American Biographical Institute; Dictionary of International Biography, 1987; Who’s Who in Australia and in the Far East, 1991 (International Biographical Center)•Listed in Marquez Who’s Who in the World in finance and business, 2008-2009

JOSE CH. ALVAREZDirector

•Director of Federation of Philippine Industries•Chairman and CEO of Philippine Phosphate Fertilizer Corporation•Chairman of BMW Philippines Corporation•Chairman of Columbian Motors Corporation•Chairman and President of Penta Pacific Realty Corporation•Chairman of Columbian Autocar Corporation•Chairman of Rio Verde Water Consortium•Bachelor Degree, Xavier University

ERNESTO ORDOÑEZDirector

•Director of Federation of Philippine Industries•President of Cement Manufacturers Association of the Philippines•Chairman, Agriwatch, Inc.•National Coordinator, Alyansa Agrikultura•Weekly Columnist of Philippine Daily Inquirer•past Cabinet Secretary for Presidential Flagship Programs and Projects•past Undersecretary of the Department of Trade & Industry and Department of Agriculture•past Governor of the Board of Investments•past Chairman of the Construction Industry Authority of the Philippines•past Commissioner of the Export Processing Zone Authority•past Director of the National Housing Authority•past Senior Manager of Xerox Corporation in USA•M.S. in Marketing•Ph.D. in Business Administration. New York University where he received straight A’s for three consecutive years•M.A. in Administrative Sciences, Yale University, Summa Cum Laude•A.B. Economics, Ateneo de Manila University, Cum Laude

EDWIN LLANA UMALIDirector

•Director of Federation of Philippine Industries•President and Chief Operating Officer, Mabuhay Vinyl Corporation•past President of Chemical Industries Association of the Philippines•Member of Philippine Business for SocialProgress, Luzon Regional Committee•past Adviser of Philippine Plastics Industries Association•Member of Management Association of the Philippines•Member of Philippine-Japan Economic Cooperation Committee •B.S. Industrial Management Engineering Minor in Mechanical Engineering, De La Salle University

ABETO A. UYDirector

•Director of Federation of Philippine Industries•Chairman and Stockholder of PHILSTEEL Holdings Corporation•Chairman and Stockholder of Steel Corporation of the Philippines•Chairman and Stockholder of Philippine Steel Coating Corporation•Chairman and Stockholder of Philmetal Products, Inc.•Chairman and Stockholder of Steel Frame Philippines, Inc.•Chairman and Stockholder of Philsteel Ventures, Inc.•Chairman and Stockholder of AAU Real Estate Development Corporation•Chairman and Stockholder of Omni-Asia Property Ventures, Inc.•Director of Investment and Capital Corporation of the Philippines•Director of Beacon Property Ventures, Inc.•Member of Presidential Iron and Steel Committee•past President of Filipino Galvanizers Institute•past President of Philippine Iron and Steel Institute •BSBA, Economics, Wartburg College•Law, Adamson University•MBA units, Ateneo de Manila University

ELIZABETH H. LEEDirector

•Director of Federation of Philippine Industries•President, Chamber of Automotive Manufacturers of the Phils. Inc. (CAMPI)•Executive Vice-President, Universal Motors Corporation (UMC)•Director, Philippine Automotive Federation (PAFI) •Council Member, ASEAN Automotive Federation (AAF)•Awardee, 2007 TOWNS (The Outstanding Women in the Nation’s Service)•Awardee, 2002 – 2004 Nissan EVP Award •previously connected with SGV/Arthur Andersen’s Business Consulting Group and Merrill Lynch’s Private Client Group in California, USA• M.A. in Business Administration,California State University

ATTY. RUFINO M. MARGATE, JR.Secretary General

•Secretary General, Federation Of Philippine Industries•Member, Integrated Bar of the Philippines (IBP)•Member, World Jurist Association (WJA)•Member, Immigration Lawyers Association of the Philippines•Member, Lambda Rho Beta Fraternity, San Beda College of Law•Writer, Discover Philippines (Immigration Section)•Former Special Counsel, Iriga City Prosecutors Office•A.B. Political Science, San Beda College•Law, San Beda College

T h e F P I D i r e c t o r at e 2 0 0 8 - 2 0 1 04 5

A. POWER and ENERGYa) DOE INAUGURATED THE FIRST CNG REFILLING STATION

AlternativeFuels…aresubstantiallynon-petroleumsourceoffuelconsumedtoprovideenergytopoweranengineandyieldenergysecurityand environmental benefits. These comprises the: natural gas (compressed or liquefied form), biofuels such as bioethanol and biodiesel (e.g. coco-biodiesel),electricityfromelectricvehicle,hybridvehicle,hydrogen,coal-derivedliquidfuels,andfuelsderivedfrombiomass.Theuseofalternativefuelsandrenewableenergyresources(wind,solar,oceancurrent,etc.)isintendedtoachieveenergyself-sufficiencyandlessenthecountry’sdependenceonoilimports.

Inthegovernment’seffortstopromotetheuseofalternativefuels,theDepartmentofEnergy(DOE),incooperationwiththePhilippineNationalOilCompany(PNOC)andShellPhilippines,recentlyinauguratedacompressednaturalgas(CNG)refillingstationofShell,forthreeCNGgascylinderedvehicles,locatedinMamplasan,BiñaninLaguna.

ForafulltankonlyworthatP340.00,aCNG-runvehiclecantravelabout320km.Priortotherun,thecar’sengineandcylinders(madeofaluminumwrappedwithresinplastics)werealsoexamined.ThetestingwillprovideresultsfortheformulationofsafetystandardsandpolicyregulationthatneedtobedevelopedfortheCNGindustryandfortheconversionofvehiclestoCNG-fuelledengines.

In line with the above, the DOE plans to put up petroleum engineering courses in local universities, initially to be set up at the PolytechnicUniversityofthePhilippines,asoneofthestepsindevelopingthealternativefuelssectorinthecountry.

EnergySecretaryAngeloT.Reyeshaschallengedlocalentrepreneursandscientiststojoinhandswithgovernmentandtheacademetoexploreanddevelopthecountry’svastalternativeandrenewableenergysources.Thiswillnotonlyserveasasteptowardsachievingenergysecuritybutwouldalsoaddresstheworld-wideproblemofclimatechange.

B. ENVIRONMENTb.1) DENR LEADS WORLD WATER DAY CELEBRATION

TheDepartmentofEnvironmentandNaturalResources(DENR)ledthenationalobservanceofWorldWaterDayonMarch24andthePhilippineWaterWeek fromMarch24-28,withactivitiesaimedatpromotingwaterconservationand improvingthecountry’swaterquality.Thisyear’s theme is“AngTubigayYamanatBuhay”whichhighlightedissuesonsanitationinsupportoftheUnitedNationsDeclarationof2008asthe“InternationalYearofSanitation”.

Theactivityunderscoredthatwaterisavitalresourceforlifeandmeasuresmustbeundertakentoensurethatthequalityandquantityofthecountry’swaterwealthisprotected.Hence,thecelebrationtackledissuesontheunhealthystateproblemsofwatersourcessuchasinadequatesanitationfacilitiesandindiscriminatedisposalofwastewaterintotheenvironment.Yet,thrusustainedpublicinformationcampaignsonwaterconservation,effortstoimprovewaterqualitycouldbeachieved.

TheDENRundertookanumberofactivitiestohighlightthewaterdiscussions.Thisincludes:aweek-longTechnologyExhibitionandProductExpositiononWaterProductionandWaterQualityImprovementandanEMBSeminaronPhotographyofWaterResourcesattheNinoyAquinoParksandWildlifeNatureCenter,andaForumonPhilippineRiverswithanMOUsigningbetweentheDENRandBantayKalikasanregardingMetroManilaRiverBasinProtectionheldattheDENROperationsCenter.

b.2) DENR’S INDUSTRIAL ECOWATCH GOES FULL BLAST

PartofDENR’swaterconservationeffortsisthefullblastimplementationoftheIndustrial“EcoWatchProgram”,whereit’sfullblastimplementationwillbehighlightedintheAnnualEarthDaycelebrationonApril22,2008.Thisintroducethepublicdisclosureprogramthatratesindustriesincolorcodesofgold,silver,green,blue,redandblack.

TheEcowatchprogram(initiallyonwater)isacomponentofDENR’scompliancemonitoringsystemwhichaimstopromoteindustrycompliancewithenvironmentallawsandencouragethemtoimprovetheirenvironmentalperformancethroughpublicdisclosure.Thisyear,theDepartmentintendstoincludecomplianceratingsonairquality.

Thenamesofcompaniesandtheircorrespondingcolorratingsfortheir2007performanceandcompliancetoDENReffluentstandardswillbepubliclyannouncedonJune2008.

The industrial sectors initially covered by the Ecowatch program includes: sugar central and refinery, beverage, pulp and paper and cementplants,meatandfishprocessing,soysauceandcondimentsmanufacturing,foodprocessinganddressingplants,beerandsoftdrinksmanufacturing.Malloperationandcommercialestablishmentsarealsocoveredinthemonitoring.

Undertheprogram,theEnvironmentalManagementBureau(EMB)ofDENRevaluatesthecoveredindustries.IndustriesareratedGoldorSilverforenvironmentaleffortsthatgobeyondlegalrequirements,GreenorBlueforsufficienteffortstocomplywithDENRstandards,RedforinsufficientefforttoabidebyenvironmentalregulationsandBlackforcompaniesthatmakenoefforttoimprovetheircompliance.

Administrativeincentiveswillbegiventoallcompaniesparticipatingintheprogram.FirmswithratingsofGold,SilverandGreenareallowed

Committee on Power / Energy & Environment Update ReportsStevensonC.Tavera

6

EXECUTIVE EDITORS:

Jesus L. Arranza;

Henry A. Tañedo;

George S. Chua;

Renato R. Ermita.

Conributors:

A. Articles-Jesus L. Arranza

FPI President & Chairman of Anti-Smuggling Committee

bernard m. felicianoTechnical Staff-Media Affairs

Stevenson C. TaveraTechnical Staff

B. Technical Inputs- Atty. Rufino M. Margate Jr. Secretary General & Judanito F. Yap IT Specialist

C. General Services-Ellen R. Cusilit

Communications and Follow-up Calls

Judanito F. Yap &

Allan A. Salvador P.O. Box Relocation and

Materials Distribution

Jocelyn C.Delos Santos; Accounting Functions

The TAMBULI Magazine, entered as a third-class mail matter at the Makati Central Post Office and published once a month, is the official publication of the Federation of Philippine Industries, Inc., with editorial office located at Suite 701 Atlanta Center, Annapolis St. Greenhills, City San Juan, Philippines. Tel. Nos. 722-3409; 721-9642; 727-4359; Fax: 722-9737 ; E-mail: fpi@fpi.ph or fpi@philonline.com; Website: http://www.fpi.ph

The views expressed in any articles or items appearing in the magazine, are those of the authors and do not necessarily reflect those of the FPI Management.

To contribute any articles, whether in the form of an industry situation analysis, position papers, or feature articles touching on issues related to industry/trade, banking and finance, environment, labor, energy and so forth, please contact the FPI Secretariat in the same address given above.

T a m b u l i

E d i t o r i a l B o a r d

For queries on subscription and/or to advertise, please contact the FPI Secretariat in the same address / contact numbers given above.

Dario A. BoragayConcept and Layout-Design

Cover & PagesPrinters

He expressed sadness that not many show concern about the pernicious effect upon the nation ofsmuggling“as its implication is generally equated only with loss of customs revenues, hardly with the moreseriousdamageitinflictsintermsoflossofjobs,lessfoodonthetable,emptypocketsforagreatmajorityofthepeopleespeciallythepoor.” “Wedon’tseeindignationralliesdenouncingsmugglers,orstreetdemonstrationsproclaimingsupportforthemenandwomentoilingsilentlytofoilsmugglingattempts,andactuallycatchingsmugglers.NotthatIamagreatfanofstreetralliesbutanydramaticshowofpublicdispleasureovertheactivitiesofsmugglers,andsupportforthosewhorisktheirnecksfightingthemcannotbuthaveapositiveeffectonthecampaignagainstsmuggling.,”Arranzasaid. Itistheferventhopeofthe2organizationsthatduringthesaidoccasionthePresidentwilldirectallgovernmentagenciesandinstrumentalitiestogivepreferencetolocallymadeproductsintheirprocurement,especiallyatthistimethatwearenotyetasignatorytotheWTOongovernmentprocurement.

Director Isaacof theQualifications StandardsOfficeshared thatTESDA isnot only a training institution,butalso the government agency operating on the principle of partnering with industry, in terms of developing the skills,competencies, qualifications, knowledge and attitude of our human resources, aligned with the requirement/s of thespecific industrial sub–sector within the FPI sphere. Likewise, as there is the growing body of evidence that there arequalifications more effectively taught in–house and hands–on–the–job, this is one possible mode of entry where theefficacyofthetraininginterventionstobeappliedwiththesugarindustryisensured.Theprecedingiswhetheritinvolvesthecultivationof theprimarycrop,millingof therawmaterial,or refiningthesemi–finishedproduct.Such is thecasebecausealthoughTESDAisindustryled,ontheotherhand,therealqualificationstandards/trainingregulationswillhavetobegeneratedattheindustrylevel.

Mr.ArchimedesAmarra,PSMAExecutiveDirector,ontheotherhandislookingforwardofthepossibilitywhereTESDAcanapply itsorganizationalsavvy inupgradingtheskillsof thesugar industry’shumanresource relative to itsmillingoperations.Hehadexpressedconfidencethatthe ideabehind in interactingwithTESDAisthat if thepartnerscanworktogetherandcomeoutwithsomethingmutuallybeneficialtoallpartiesconcerned,theundertakingcanthenembracetheparticipationofnotonlythemembersofthePSMA,butothermillers,aswell,fromthesugarindustry.

Thus,intheprocessofenlargingthecoverageofparticipation,duringthelearningprocess,hefurtheraddedthattheundertakingcanalsoderivethecorrespondingstatisticsanddemographicswhichareprerequisitesinguaranteeingthesustainabilityoftheendeavor.

PSMADeputyDirectorForTechnology,Mr.OscarCortesaddedthatalthoughthereistheabsenceofastructuredtrainingintervention,theywereabletoidentifypositionsrequiringskills,namely–industrialelectronics,machineshopwelding and fabrication, pneumatics and repair/maintenance/troubleshooting of automated machineries in the sugarmills.Also,thereistheneedtodeveloptheskillsofthelaboratorypeopleforqualityassurance.Theprecedingarethetentativelyidentifiedoccupationsneedingenhancements,quitepalpablenow,moresothatforthepastseveralyears,themachineriesusedinthemillingoperationshaveundergonerehabilitationandmodernization.Consequently,thecontrolandinstrumentationcomponentofthesefacilitiesnowrequirehigherlevelofskillsonthepartoftheworkers.

Correspondingly, as all the foregoing are the initially identified skills entailing enrichment in the industry’sinventoryofpositions,thereistheneedthatPSMA,TESDAandFPIcollectivelypooltheirexpertiseandresourcestobeabletocomeupwithareallycomprehensiveprofilingofthesugarindustry.

FPI Secretary General, Atty. Rufino M. Margate Jr. reminded the body that there is the existing conceptualframeworkfromwhichtheactionplanapprovedbytheFPIBoDwasderived.TheforegoingactualizestheprovisionsofthememorandumofunderstandingsignedbetweentheFPIandTESDA.What’smore,theobjectiveinformulatingtheactionplanisforittoserveasthetemplateonhowtheconcernedstakeholderswillgoabouttheirrespectiverolesandresponsibilitieswithinthepurviewoftheMOU.

It was then proposed by the PSMA that they would tentatively schedule a workshop this 1st week of June,involvingpersonnelfromtheProduction,Engineering&AdministrationDepartmentsfromamongtheirmembersugarmillslocatedintheProvinceofNegros.

TESDA,fortheirpart,willsenditsexpertsinBacolodtoconducttheworkshop,aswiththeFPIwhoserepresentativewillobserveandrecordtheentiretyoftheproceedingsfordocumentationpurposes.

tosubmitquarterlySelf-MonitoringReports(SMRs)onanannualbasis,whilethosewithBlueratingsareallowedtosubmittheirSMRssemi-annually.Thisincentivewillcontinueaslongasthefirmmaintainsorimprovesitscorrespondingrating.Otherwise,suchincentiveswillbeautomaticallydowngradedorwithdrawn.

TheEcowatchRatingsystemwillbeoneofthecriteriaingivingrewardstocomplyingfirmsasprovidedforinSection2.5ofRA9275ortheCleanWaterActof2004.

IntheimplementationoftheCleanWaterAct,moreandmorecompaniesarebeingorderedbythePollutionAdjudicationBoard(PAB),acollegialbodyattachedtotheDENR,topayhugefinesandpenaltiesforviolations,whichrangestoaminimumofP10,000perdaytoamaximumofP200,000perdayasprovidedforinthelaw.ThisshowhowfirmtheDepartmentisinmakingindustriescomplywithwatereffluentstandardstoensurethatthecountry’swaterwaysarekeptcleanandfreefromanypollution.

b.3) FINALIZING THE NEW WATER QUALITY GUIDELINES AND GENERAL EFFLUENT STANDARDS OF 2008

PursuanttoSection19(e)and19(f )oftheRA9275orthePhilippineCleanWaterActof2004,theDENR-EMB,inconsultationwiththeindustrysectors,isnowfinalizingthenewWaterQualityGuidelines(WQG)andGeneralEffluentStandards(GES).ThiswillrevisetheDENRDepartmentAdministrativeOrder(DAO)34and35issuedin1990,priortotheenactmentofRA9275.Thenewguidelineswillreviseorprovideforthefollowing:

1.Scopeandcoverage2.Definitionofterms3.Classificationandguidelinesofwaterbodies (inlandandmarine)onusage, intendedbeneficialuse,andtheprimaryparameters,secondaryparameters(inorganics,toxicmetalsandorganics)4.Qualityofgroundwaterandintendedbeneficialuse5. General effluent standards on: quality parameters per sector under the PSIC industry category, based on flowrate, effluent discharge onestablishmentdischarging>30m3/day,discharging<30m3/day,discharging>3,000mg/LBOD,regardlessofvolume,andBODforstrongindustrialwastes,6.Modificationofdesignatedwateruses7.Additionalprimarywaterqualityparameters8.ModificationofWQGvalues9.ModificationofsignificanteffluentqualityparametersandGESvalues10.And,approvedmethodofanalysis,andtheapplicationofpenaltiesandsanctionsthereof

FailuretocomplywithanyoftheaboveprovisionsshallbeliableunderSection28oftheCWA,andshallbemetedwithhugefinesandimposedofothersanctionsuptoclosureofviolatingestablishments.

ThefinaldraftoftheproposedWQGandGESasofMarch2008wasemailedtotheFPImembersforcomments.TheinputsgatheredweresubmittedtotheEMBonthe1stweekofApril2008forconsideration.Thelatestindustryconsultationwasheldon10April2008whichwasorganizedbyPCCIandtheEMB.

TheEMBatpresentisfinalizingtheproposedWQGandGESandisbeingreadiedforthesignatureoftheDENRSecretary,ideallytargetedonorbeforeApril22,2008,forimplementation.NextwouldbethecraftingoftheSpecificEffluentStandardsorSESorspecificeffluentstandardsperindustrysector.

b.4) EMB PROJECT TO DESTROY PERSISTENT ORGANIC POLLUTANTS COMMENCES

The DENR-EMB, in partnership with the United Nations Industrial Development Organization (UNIDO) and the Global Environment Facility(GEF), recentlycommencedits four-yearprojectaimedatdemonstratingtheviabilityandremovalofbarriersthat impedetheadoptionandsuccessfulimplementationofavailablenon-combustiontechnologiesfordestroyingPersistentOrganicPollutants(POPS)inthecountry,includingthepolychlorinatedbiphenylorPCBpresentinvariousindustries.

Theprojectwillcoverthedestructionof1,500tonsofPCB-containingequipmentandwastesasthefirstpartofthe6,879tonsactuallyidentifiedduringtheinitialinventoryprocess.

InMay2004,theGEFCouncilapprovedtheprojectbriefwhichaimstointroduceandapplysuchtechnologytodestroysignificantobsoletePCBwastesandwillhelpremovebarrierstothefurtheradoptionandeffectiveimplementationofaselectednon-combustiontechnology.ThesameisexpectedtomeettheStockholmConventionrequirementstoensuretheuseofbestavailabletechniques(BAT)andbestenvironmentalpractices(BEP).

TheNational ImplementationPlanof theStockholmConvention inthePhilippines favors theapplicationofnon-combustiontechnologies todestroyPOPs.

Theprojectwill:1.makeavailablealltechnical,economicandfinancialparametersoftheselectedtechnologyinacomparative,and2. open and transparent way that would facilitate to provide further incentive to the global diffusion of innovative alternative non-combustiontechnologies.

Theprojecthasrecentlyconveneditsmulti-stakeholdersteeringcommitteemeetingtodiscussinitialstepslinedup.

President Arroyo Graces.....Continued from page 1

SugarIndustryGroup.....Continued from page 1

reportfiledby:bernardm.feliciano

2 7

Printed Matter3rd Class Mail- Post paid at San Juan CPO-OM-04-16 NCR.Valid Date:31 December 2007

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FPI RETURN ADDRESS: Suite 701 Atlanta Center, Annapolis St. Greenhills, City San Juan, Philippines.

Fraudandvariousschemesthatresultsinlossesforthecompanycanbeofsuchmagnitudethatitcanthreatentheexistenceofthebusiness.Itcancomefromtwosources,internalandexternal.Whenwetalkaboutinternalfraud,itissomeoneoragroupofpeoplewithinthecompanythatexecutesorispartytothefraudulentact.Inexternalfraud,theactisdonebypeopleoutsideoftheorganizationbutinmostcases,peoplewithintheorganizationareinvolvedthroughconnivanceornegligence.

Toponthelistofthecriticalareaswherefraudandotherillicitschemesoccurwouldbethepurchasingandmarketingunitsoftheorganization.Thereareavarietyofthingstowatchoutforinthepurchasingdepartmentsuchasoverpricing,commissions,materialssubstitution,ghostdeliveriesandsimplynotgettingthebestdealforthecompanythroughnegligenceorapathy.Alotofthesethingsoccurwiththecooperationofthesuppliersandinmostcasesitisthepurchasingpersonnelthataretheperpetrators.

To avoid this type of fraud, be suspicious of cash transactions where payments covering overprice and commissions are easilymade.Alsohavesomeonedoaperiodicindependentcanvassofpricesforyoursuppliestocomparewithhowgoodorhowhonestyourpurchasingdepartmentis.Materialssubstitutionandghostdeliveriescanbepreventedbyhavingsomeonecapableotherthantheonewhomadeorprocessedthepurchaseorderreceiveandinspectthedeliveredgoods.Youmayalsodoalifestylecheckonthepeoplethatarehandlingthepurchasingforyourcompany.Alifestylethatisnotcommensuratewiththeemployeespayorasuddenchangeinlifestyleoftenindicatesthatthereisaneedtoinvestigatefurther.

Onthesalesandmarketingside,mostofthefraudiscommittedthroughoverdelivery,unauthorizedorimprudentcreditsalesanddiverteddeliveries.Preventivemeasureswouldincluderequiringpurchaseordersfromyourclients,releasingofgoodsbasedonapprovedpurchaseordersandcreditlimitsorproofofpaymentsuchastheofficialreceiptissuedbythecashier.Itisalsoagoodideatohavethewarehouse man sign off on the delivery receipt to indicate that he had released the right goods with the right approval. The deliverydocumentsmustalsobesignedbythedriverofthedeliverytrucktoindicatethatthedriverloadedthecorrectgoodsintohisdeliveryvehicleandthatsuchgoodsweredeliveredtothecorrectaddressofthecustomer,towhichyoushouldhavetheauthorizedsignatureofthecustomeronthedeliveryreceipttoacknowledgehisreceiptofthesaidgoods.

External fraudisoftendonebyhavingaregularcustomerplaceanorderoncreditorcheckbasis fordeliverytoasuspiciouslydifferentaddress.Therearealsonumerouscaseswherecustomersbuilduptheircreditstandingwithyoubyinitiallypayingforbigordersincashandeventuallygainingsomecreditavailabilityontheirsubsequentpurchaseswhicharepaidpromptly.Eventually,thecustomerbuildsuphiscreditstandingthatyouendupgivingmoreandmorecredituntilonedayhehitsyouforabigoneanddisappearsfromthefaceoftheearth. Thegrantingofcreditfacilitiesrequiresworkonyourpart,donotrelysolelyonyourshortcreditexperiencewiththecustomer,itisalwaysgoodtodoabackgroundcheckandaskfortheirbankreferralsbeforeevenconsideringgrantingacreditfacility.

Havingsomeone illegallygainaccess toyour facility topilfer, stealoracquireprivateandconfidentialdocuments isnowmorecommonplace.Thebestwaytopreventthistypeoflossisbyputtingupphysicalsecuritymeasureswhichincludetheuseofsecurityguards,monitoringcameras,theuseoflocksandsafesforphysicalgoodsanddocumentsandtheuseoffirewallsandotheraccesscontrolsoftwaretoprotectyoursoftassets.Knowingyourcustomerisalsokeyinpreventingexternalfraud,makesurethatthepersonyouaredealingwithisthecorrectperson.Itisbettertogothroughtheproperproceduresthanbreakyourownrulesandendupwithunauthorizedtransactionsorbeavictimoffraud.

Illegalandfraudulentuseofchecks,receiptsandother“official”documentsareaseriousconcern.Whenindoubtalwaysverifyfirstbeforepartingwithyourgoodsormoney.Peopleandsuppliersmisrepresentingthemselvesarealsoeverpresent.Whenyouareaskedtopayforanorderbeforedelivery,checkonthereputationofthecompany,seeiftheyareregisteredandchecktheirphysicaladdress.Alotofcompaniesnowexistonlyincyberspace.Thenormaltrapwouldbetoofferyouadealthatistoogoodtobetrue,andyesitis.

(Comments may be sent to chua.george@yahoo.com)

Preventing Business Fraud

BUSINESS OPTIONS by George S. Chua

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