Chinese Boats in Disputed S. China Sea Area

Philippine government to file Beijing protest agains 30-strong Chinese fishing fleet encroachment on Spratly Islands waters

China’s 30-ship fleet was reportedly being escorted by a fisheries administration patrol ship and a 3,000-ton supply ship, enough provision for five to 10 days of fishing, according to a 'Manila Standard Today' news report.

Meanwhile, United States Pacific Command chief Admiral Samuel Locklear III reiterated Washington’s commitment to help the Philippines build a “minimum credible defense posture.”

Locklear, who arrived Monday for a three-day visit, met with President Benigno Aquino III at the Palace where they discussed “in broad strokes” China amid the rising tensions over territorial disputes in the West Philippine Sea.

Presidential spokesman Edwin Lacierda said Locklear’s courtesy call on Mr. Aquino was meant to “reaffirm the long-standing partnership between Washington and Manila.

“Admiral Locklear reiterated the commitment of the US to help the Philippines establish a minimum credible defense posture,” Lacierda said.

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Expensive coffee earns ex-PAGCOR chair Genuino and others graft, plunder charges

The Philippine Amusement and Gaming Corporation (PAGCOR) on Tuesday filed graft and plunder charges against its former chairman Efraim Genuino and other PAGCOR former officials and coffee concessionaire Carlota Manalo-Tan for allegedly conniving in a P258-million coffee supply contract in which the government lost a lot of money.

PAGCOR claimed that Genuino, former senior vice president Rene Figueroa and former president Rafael "Butch" Francisco allowed Tan’s Promolabels Specialty Shop to operate in casinos and serve coffee bought over and above the usual selling price.

"PAGCOR's audit team discovered that from 2005-2008 alone, five Casino Filipino branches paid at least P258 million to Promolabels… PAGCOR could have saved at least P78 million if only the prices of Promolabels' Figaro coffee products were the same as those of other Figaro franchises," the gaming firm noted in its complaint filed before the Office of the Ombudsman on Tuesday.

"Respondents Genuino, Francisco, Figueroa acted with manifest partiality, evident bad faith and or gross inexcusable negligence by awarding the concession agreements to Promolabels," read the complaint signed by current directors Jose Tanjuatco and Enriquito Nuguid.

The former PAGCOR officials were in connivance with Tan "with a view of enriching themselves and coffee concessionaire Manalo-Tan through the sale and purchase of overpriced Figaro coffee products."

According to the state-owned PAGCOR which also regulates the gaming industry, Tan's husband, Johnny Tan, is a 'known ally' of Genuino.

As of this posting, GMA could not immediately contact Genuino or his legal counsel for comment.

PAGCOR’s overpriced coffee was first revealed in President Benigno Aquino III’s State of the Nation Address last year. Under Genuino's leadership, the gaming company spent about P1 billion for coffee from August 2001 to June 2010.

It was also discovered that Promolabels, was not registered with the Securities and Exchange Commission.

Tan's Promolabels had a three- to five-year contract to operate Figaro coffee shops in Parañaque, Angeles City, Heritage Hotel, Olongapo City, Manila Pavilion, Tagaytay and the former Casino Filipino Silahis.

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PH to file protest if Chinese fleet enter EEZ

MANILA, Philippines - The Philippine Coast Guard is inspecting the actual location of about 30 Chinese fishing vessels that arrived in the Spratly Islands over the weekend.

Department of Foreign Affairs Spokesperson Raul Hernandez said the government will file a maritime protest against China if the Chinese ships venture inside the Philippines' exclusive economic zone (EEZ).

The Chinese fleet was spotted near the Yong Shu Reef, escorted by a vessel supposedly under the “Chinese Fisheries Law Enforcement Command.”

"Our Coast Guard is doing our mandate of monitoring our maritime domain and making sure that intrusions are not undertaken by any foreign vessels. Whenever there are intrusions, what we do is to file protest so that it is put on record... and we are protesting those intrusions in our territories and sovereign rights,” he said.

"Yesterday we asked the Coast Guard to check the area to identify location of Chinese fishing vessels,” he added.

The Spratly islands, a potentially oil-rich archipelago, are being claimed by the Philippines, China, Vietnam, Brunei, Malaysia, and Taiwan.

Hernandez said a United States official is in the country holding discussions with the government on matters of maritime security.

He said they hope to get equipment to help modernize the capability of the Philippine Navy and Coast Guard.

US support

While the United States is not directly taking a side in the Scarborough dispute out of diplomacy, America's military deployment to the Philippines is quiet proof of its support to an ally, US Pinoys for Good Governance chairperson Loida Nicolas-Lewis.

“It's as if the US was saying, ‘China be careful, don't be warmongering, it's going to cost you,’” she said.

She added: “The US fleet is around here, they are sending 60% of their military power. Quietly, they're saying when you shoot the Philippines, nariyan kami."

Amid ongoing efforts to pursue a resolution through diplomatic means, she added her group will call on the Philippine government not to backtrack in its fight for its territories.

The group is calling for a boycott of Chinese products, to voice its protest over the "invasion of made in China products" in the market, and China's alleged intrusion in Philippine waters.

"Tayong mga Filipino, we should show that we are not in favor and [we should] boycott made in China goods,” she said.

"Each one of us is singing the National Anthem, ‘aming ligaya na pag may mangaapi, ang mamatay ng dahil sa iyo.’ Our territory is being invaded by China. Huwag na tayo mamatay, magboycott nalang tayo,” she added.

"Yes, it's going to affect out banana growers, our pineapple growers, but more is at stake. What is at stake is the Philippines' integrity as a nation, the trillions of dollars (in oil deposits) so we have to take a stand, not just President Aquino or the DFA, 100 million Filipinos have to make a stand. You can do something, boycott made in China products,” she added.

She said the Philippines should look at other countries where it can market its products.

Black gold

Meantime, Lewis said the Philippines should not be afraid to negotiate with a superpower like China and protect the national interest.

Studies done during the Arroyo administration showed oil or "black gold" estimated to be worth trillions of dollars lies beneath Philippine waters.

"The best way is to allow it to be bidded by all nations, ayaw yan ng China. Gusto nila sila lang...,” she said.
"The Philippines has to negotiate for foreign power to extract oil there. We have to partner and it has to be 50/50, that's the only practical solution,” she added.

The group is also pushing for a global hour of prayer, and calling on all Filipinos to join in prayer at noon on August 21, the anniversary of the death of the late Senator Benigno `Ninoy' Aquino Jr., for peace and justice to reign in the West Philippine Sea.

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Philippines Targets $10B in Foreign Investments

The Philippines said it aims to boost foreign direct investments in call centers, factories and shipyards to more than $10 billion a year, as President Benigno Aquino strives to create jobs and bolster growth.

The Philippines received 24 business teams in the first half of the year from countries including Russia, Turkey and Japan, Trade Secretary Gregory Domingo said. Investors are keen on shipbuilding, agriculture, energy, steel, garments, and business process outsourcing, he said.

“The biggest thing that has improved our standing in the investment community globally has been President Aquino’s governance,” Domingo said in an interview in his office in Manila yesterday.

Aquino is winning confidence from investors and rating companies as he fights corruption and boosts infrastructure spending to transform the nation into a manufacturing hub in the region. Moody’s Investors Service boosted its outlook on the Philippines to positive in May, when the country’s top judge was impeached for illegally concealing his wealth, while Standard & Poor’s this month raised the long-term foreign currency- denominated debt rating to the highest level since 2003.

The $225 billion economy expanded 6.4 percent in the first quarter, the fastest pace since 2010, and the peso is the best performer against the U.S. dollar among Asia’s 11 most-traded currencies this year, having gained about 5 percent. The Philippine Stock Exchange Index (PCOMP) surged to a record this month.

The peso rose a third day today to 41.732 per dollar as of 9:27 a.m. in Manila. Benchmark bonds due March 2021 gained, with the yield falling to the lowest level since February, according to Tradition Financial Services.
’Tremendous Interest’

“When he first assumed office, there were still a lot of people who doubted he will really pursue” good governance, Domingo said. “But now, he has convinced everybody that he is sincere. We’ve seen tremendous interest in investment.”

From 1970 to 2010, the Philippines drew $33.98 billion in foreign direct investment compared to $322.13 billion for Singapore and $108.87 billion for Thailand, according to the United Nations Conference on Trade and Development.

The Philippines lured about $6 billion in pledged foreign investments last year, and has drawn commitments from companies including Glencore International Plc and Gazasia Ltd. this year. Business groups from Mexico and Argentina are due to visit the country, Domingo said yesterday.

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Plunder Vs GMA

MANILA, Philippines --- The Office of the Ombudsman on Monday filed plunder charges against former President Gloria Macapagal-Arroyo and nine other former state officials, mostly of the Philippine Charity Sweepstakes Office (PCSO), for allegedly misusing P365,997,915 in PCSO funds.

It was the first plunder case against Arroyo who is under hospital arrest at the Veterans Memorial Medical Center in Quezon City for electoral sabotage during the 2007 senatorial election.

Also named respondents in the 10-page complaint filed before the Sandiganbayan are former PCSO General Manager Rosario Uriarte, Assistant General Manager for Finance Benigno Aguas, and former PCSO board members Sergio Valencia, Manuel Morato, Raymon Roquero, Maria Fatima Valdez and Jose R. Taruc V.

Former Commission on Audit (COA) Chairman Reynaldo Villar and COA Region 5 head Nilda Plaras were also named in the complaint.

PCSO Director Aleta Tolentino earlier said the COA officials were included because of their “conspiracy and connivance.”

No bail was recommended for the accused, said the Sandiganbayan.

Ombudsman Conchita Carpio-Morales approved the plunder case.

Based on the information filed by the Ombudsman, Arroyo and her nine co-accused conspired and connived to acquire ill-gotten wealth from the PCSO from January 2008 to June 2010.

Morales underscored the evidence that indicated Uriarte wrote to Arroyo eight times requesting that she be allowed to draw from the agency’s intelligence fund.

The money to be drawn from the fund was supposed to have been used “to monitor the PCSO’s charitable activities and projects; to buy information to determine if the funds were being used for the purposes for which [they] were intended; to fund an investigation of how medicine given to beneficiaries marked “Botika ng Masa” had ended up in commercial markets, and to counter various scams victimizing lotto bettors and winners.”

Morales earlier filed a graft case against Arroyo in connection with the $329-million national broadband (NBN) deal with China’s ZTE.

An inquiry by the Senate Blue Ribbon Committee earlier showed Arroyo approved Uriarte’s request to draw from the intelligence fund. The investigation showed the money was used instead to purchase relief goods and pay “blood money” for the freedom if detained overseas Filipino workers (OFWs).

Uriarte allegedly got nearly P310 million, more than half of which were withdrawn in the first six months of 2010, an election year.

The investigation showed that the funds were liquidated with a mere certification, and transferred in the respondents’ possession and control through irregularly-issued disbursement vouchers and fictitious expenditures.

The Ombudsman said the accused took advantage of their positions, authority, relationships, connections or influence to enrich themselves.

The complaint sheet alleged that the respondents “conspired in withdrawing, amassing, accumulating public funds from July 2008 to January 2010 and by circumventing and/or violating the subject COA circulars relative to the liquidation of complainant PCSO’s intelligence/confidential funds.”

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US Pacific chief affirms commitment to Philippines

MANILA, Philippines - The head of US forces in the Pacific reaffirmed American commitment to support the Philippines Monday, amid the country's continuing territorial dispute with China.

Admiral Samuel Locklear met with President Benigno Aquino and voiced his support in helping modernise the country's ill-equipped armed forces, considered to be among the weakest in the region, the presidential spokesman said.

Locklear "reaffirmed the long-standing partnership between the US and the Philippines," Aquino's spokesman Ramon Carandang told reporters.

The admiral also "reiterated the commitment of the US to help the Philippines establish a minimum credible defence", Carandang said.

The two officials discussed the South China Sea issue in "broad strokes" with no specific details given, Carandang said.

The Philippines, which has a mutual defence treaty with the United States, has been seeking greater support from its main defence ally after a face-off with China over the Scarborough Shoal in the South China Sea in April.

Locklear was due to meet with Filipino defence officials later Monday, in which he would discuss "domain awareness" amid a changing security climate, according to the US Department of Defense website.

"So what we are looking for is to try to provide [the Philippines] assistance that builds the interoperability of our defence forces over time," the website quoted him as saying.

He also warned that a possible "miscalculation" in the dispute could threaten regional stability and reiterated that the US and Philippine militaries needed to learn to work together better.

"I'm looking forward to giving the message to the Filipino military and to the leaders there that the United States is a very reliable ally. We want the Filipinos to be a reliable ally to us as well," he was quoted as saying.

Chinese-Philippine tensions have increased due to the standoff with the Philippines accusing China of "duplicity" and "intimidation" in a recent regional forum in Cambodia.

China claims the entire South China Sea as its historical territory, even up to the coasts of other Southeast Asian countries like the Philippines.

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Chinese fishing fleet casts nets off Philippines

MANILA, Philippines - A 30-vessel Chinese fishing fleet anchored off the Spratly Islands in the South China Sea on Sunday (July 15), amid tensions involving territorial disputes in the region.

The fleet, which includes a patrol vessel for protection and a 3,000-tonne supply ship, left China's southern Hainan province on July 12 to explore new fishing areas, state agency Xinhua reported.

The ships will cast their nets on Monday night, and plan to stay on fishing by the islands' Yongshu reef for about 10 days, Xinhua said.

The South China Sea has become Asia's biggest potential military flashpoint as Beijing's sovereignty claim over the huge area has set it against Vietnam and the Philippines. Taiwan, Malaysia and Brunei also have claims.

Last month, China said it "vehemently opposed" a Vietnamese law asserting sovereignty over the Paracel and Spratly Islands, which straddle key shipping lanes and are thought to contain rich energy reserves.

That row came days after an easing in a months-long standoff between China and the Philippines, but shows the persistent cycle of territorial frictions triggered by what some see as China's growing assertiveness in the area.

The stakes have risen in the area as the U.S. military shifts its attention and resources back to Asia, emboldening its long-time ally the Philippines and former foe Vietnam to take a bolder stance against Beijing.

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