$1Billion USD - Upgrading 23 important Military Assets DELAYED again for Corruption?

The Philippines relies on aging helicopters such as this UH-1 Huey seen on a recent mission in Mindanao. PHOTO: TREFOR MOSS/THE WALL STREET JOURNAL

Philippine Military Upgrade Stalls

Delay for $1 billion in defense deals leaves planned overhaul years from completion

MANILA—A push by the Philippines to overhaul its obsolete military has ground to a halt just as the U.S. ally is striving to deter China in the disputed waters between them.

A string of programs collectively valued at $1 billion stalled early last year, said military officials and executives involved in Philippine defense deals. The delay underscores how the government’s efforts to transform the country’s derelict navy and air force have become mired in red tape, funding problems and corruption allegations.

The delays leave long-held plans to build a “minimum credible deterrent”—comprising small but capable air and naval fleets—at least a decade from completion, said Jose Antonio Custodio, a Manila-based defense consultant. Even with a basic deterrent in place today, Manila would likely still lack the means to check Beijing’s assertiveness.

“We’re still at square one,” said Mr. Custodio. “With China building all these new bases [in the South China Sea], I’d say it’s already too late.”

Securing secondhand equipment from allies such as Japan and the U.S. may now be the Philippines’ only chance of quickly upgrading its forces, people familiar with the country’s procurement process said. The approach of presidential elections in May make it unlikely that any big contracts will be signed before then.

President Benigno Aquino III has promised to rejuvenate the military, which has been degraded by decades of underinvestment.

A pledge to spend $1.7 billion on new equipment initially bore fruit, as the administration signed a flurry of defense contracts valued at $834 million in late 2013 and early 2014, including deals for 12 Korean fighter jets, three Airbus transport planes and a new fleet of combat helicopters from Canada and the U.K.

“The record will show that the Aquino administration has stepped up the pace of [military modernization] considerably, surpassing the procurement program undertaken by three previous administrations combined,” said presidential spokesman Herminio Coloma.

However, Mr. Coloma said Mr. Aquino still hasn’t signed a law passed by the Philippines Congress in February 2013 earmarking $2 billion for defense procurement. Mr. Coloma didn’t explain the delay.

Government finances have been stretched thin after the government spent billions on reconstruction following Supertyphoon Haiyan (Yolanda) in 2013. Spending has also slowed after a recent scandal in which prosecutors charged three senators with corruption for their alleged involvement in the use of dummy NGOs to steal around $220 million in public money. All three senators denied the charges. Strict government procurement rules have been further tightened since then, putting the brakes on a range of spending programs.

The Philippine vessel Ramon Alcaraz participated in bilateral maritime exercise with the U.S. in June last year.PHOTO: AFP/GETTY IMAGES

Contracts for two naval frigates valued at $398 million and for two long-range patrol planes valued at $132 million—capabilities that would help the Philippines monitor its maritime territory, where it has overlapping claims with China—are among those that were scheduled to have been bid out last year but haven’t moved ahead. “It’s a bureaucratic logjam,” said Mr. Custodio.

Foreign defense companies seeking to supply these and other systems can only wait for the logjam to clear.

“It seems that all programs are paralyzed,” said a Western defense executive whose company is involved in one stalled project.

Another Western executive said the Philippines was hardly unique in experiencing lengthy holdups for military equipment, but recalled how the country’s defense leadership had built momentum in 2013, only to hit the buffers in early 2014.

“Defense officials just don’t have the authority to make things happen now,” he said.

The Philippine Department of National Defense and the Armed Forces of the Philippines didn’t respond to requests to comment.

With China accelerating its island-building program in the South China Sea, Philippine military chief Gen. Gregorio Pio Catapang recently urged Manila to spend more on defense as the country’s economy enjoys healthy growth. Last year’s defense budget was just $3.3 billion—far less than neighboring Singapore’s $9.5 billion.

A Philippines senate inquiry into the country’s military modernization efforts has meanwhile questioned the effectiveness of the funds spent so far, with one senator arguing there was practically nothing to show for the $1.4 billion spent on new weaponry in the decade to 2013.

Senators also looked into a deal for 21 secondhand helicopters, which the defense department canceled in April after only seven deliveries amid concerns about the quality of the technology, and with a Philippine tax official claiming that the aircraft had been ordered in exchange for kickbacks.

The defense department has denied the allegations.

The breakdown of the helicopter program has made defense officials even more reluctant to place new orders and expose themselves to further scrutiny, said Mr. Custodio.

Mr. Aquino has turned to allies for help. On a recent state visit to Japan, he requested secondhand P-3C Orion maritime patrol aircraft, having already received a $183 million loan from Tokyo to fund the construction of 10 new patrol boats. Tokyo has said it is considering the requests, though it hasn’t committed to anything specific. Australia, South Korea and the U.S. have all donated used military kit to Manila in recent years and have signaled a willingness to do more.

But hand-me-downs won’t deliver a deterrent capable of influencing decision makers in Beijing, Mr. Custodio says. “The Chinese are building islands on our doorstep.”  - THE WALL STREET JOURNAL: Write to Trefor Moss at trefor.moss@wsj.com

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Smartmatic bags ₱1.7-Billion Php voting machine contract for 2016 Election

In Resolution No. 2015-004, the Comelec Special Bids and Awards Committee -1 has recommended the issuance of the "Notice of Award" to Smartmatic-Total Information Management for its bid offer of more than ₱1.7 billion Php. photo: PhilStar

Smartmatic bags ₱1.7-B voting machine contract

MANILA, Philippines - The Commission on Elections (Comelec) has approved the awarding to Smartmatic-Total Information Management (TIM) of the contract to lease 23,000 optical mark reader (OMR) machines for the 2016 polls.

In Resolution No. 2015-004, the Comelec Special Bids and Awards Committee -1 (SBAC-1) has recommended the issuance of the "Notice of Award" to the joint venture for its bid offer of more than P1.7 billion.

"SBAC-1 resolves to recommend to the head of the procuring entity the issuance of the Notice of Award (to the joint venture) as the bidder with the lowest calculated responsive bid for the lease with option to purchase of election management system and precinct-based OMR or optical scan system," the committee said.

The project has an approved budget of ₱2.5 billion Php, but Smartmatic-TIM's bid offer was only ₱1.72 billion Php.

SBAC-1 had disqualified Smartmatic-TIM twice after it found the joint venture's bid documents to be "non-responsive" they did not contain Articles of Incorporation and actual bid price offer. The Comelec approved the joint venture's appeal for reconsideration.

The Comelec also declared a failure the joint venture's demonstration of its machines during the post qualification stage of the bidding. But when the joint venture protested, the poll body relented.

SBAC-1 added in its resolution that Smartmatic-TIM is required to "post its corresponding performance security in an amount equal to a percentage of the total contract price."

Currently, the Comelec is looking at two options for the conduct of polls next year.

One option is to refurbish some 81,000 precinct count optical scan (PCOS) machines, while the other option is to lease 70,000 more OMR machines.

The 23,000 OMR machines will supplement whichever of the two options is chosen.

Meanwhile, Comelec Chairman Andres Bautista met with officials and members of the Catholic Bishops' Conference of the Philippines (CBCP) last Sunday to brief them on what to expect from a computerized conduct of polls in 2016.

CBCP president Lingayen-Dagupan Arcbishop Socrates Villegas said the meeting coincided with the 111th Plenary Assembly of bishops.

Villegas said the prelates would further tackle election issues in the next plenary assembly in January. While the CBCP did not issue post-assembly statement on the elections, Villegas said it's the consensus among the bishops that next year's polls should be transparent, efficient and with public accountability.  – Evelyn Macairan :Sheila Crisostomo  - Philstar

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AFP is reinforcing rusting Navy ship on Spratly Ayungin reef outpost with Welding and Cement

Filipino soldiers wave from the dilapidated Sierra Madre ship of the Philippines Navy as it is anchored near Ayungin shoal (Second Thomas Shoal) in the Spratly group of islands in the South China Sea, west of Palawan, Philippines, in this photo taken in May. Photo: Reuters

Philippines reinforcing rusting Navy ship on Spratly reef outpost

Manila:  The Philippines navy is quietly reinforcing the hull and deck of a rusting ship it ran aground on a disputed South China Sea reef in 1999 to stop it breaking apart, determined to hold the shoal as Beijing creates a string of man-made islands nearby.

Using wooden fishing boats and other small craft, the navy has run the gauntlet of the Chinese coastguard to move cement, steel, cabling and welding equipment to the BRP Sierra Madre since late last year, according to two navy officers who have been inside the vessel.

The BRP Sierra Madre, a marooned transport ship which Philippine Marines live on as a military outpost, photographed last year. Photo: Reuters

The 100 meter-long tank landing ship was built for the US Navy during World War Two. It was eventually transferred to the Philippines navy, which deliberately grounded it on Second Thomas Shoal to mark Manila's claim to the reef in the Spratly archipelago of the South China Sea. A small contingent of Philippine soldiers are stationed onboard.

Manila regards Second Thomas Shoal, which lies 195 km south-west of the Philippines region of Palawan, as being within its exclusive economic zone. China, which claims virtually all the South China Sea, says the reef is part of its territory.

"We know China has been waiting for the ship to disintegrate but we are doing everything to hold it together," said one of the officers, adding that while the work was progressing slowly, it should be finished by the year-end.

A newly deployed Philippine Marine, part of a military detachment stationed aboard the BRP Sierra Madre, fishes near the ship in the disputed Second Thomas Shoal, part of the Spratly Islands in the South China Sea in this photo taken last year. Photo: Reuters

The other naval officer said welding was being done at night because of the heat. Concrete foundations were being laid inside the ship's hull to try to stabilize it, he added.

Without giving exact dates, both sources said they witnessed the repairs taking place earlier this year. They declined to be identified because they were not authorized to speak to the media. The soldiers currently stationed on the ship, who are demolition experts, were doing the work, said the second source.

Just to the west of Second Thomas Shoal is Mischief Reef, one of seven coral formations in the Spratlys that China is rapidly turning into islands that Beijing says will have undefined military purposes.

Vietnam, Malaysia, Taiwan and Brunei also have overlapping claims to the Spratly waterway, which is some 1,100 km from the Chinese mainland.

Asked about the repairs, Philippine Foreign Ministry spokesman Charles Jose declined to comment. But such work would not violate an informal code of conduct signed in 2002 by China and south-east Asian states that prohibited any change to the status quo in disputed areas, he said.

"In our view, repairs and maintenance of existing facilities are allowed ... especially if such repairs and maintenance work are for the safety of our personnel and safety of navigation," Mr Jose added.

A Philippines general familiar with the repairs  said the ship's hull and deck were being strengthened, and air-conditioning units added.

"We are improving the living quarters inside, to make life for our soldiers more comfortable," he said, declining to give further details about the repairs or to be identified.

Photos show a pockmarked vessel covered in rust, sitting on the permanently submerged reef but listing slightly to one side. Much of the boat's hull is visible.

Besides being a military outpost, the BRP Sierra Madre is also a commissioned Philippine navy ship.

That means Manila could request U.S. military assistance under a decades-old security treaty with Washington if the ship was attacked, said senior Philippine military officials.

"Even if it's covered with rust, it will remain an active duty commissioned navy ship. It's a symbol of our sovereignty," said the Philippine general.

Second Thomas Shoal illustrates the mismatch in power between the Philippines and China.

Since the start of 2014, the Philippine navy's regular attempts to resupply soldiers on the BRP Sierra Madre with food and water have become a cat-and-mouse routine, with large Chinese coastguard vessels on patrol in the area trying to block the path of the smaller Philippine boats, naval officials said.

The Philippine vessels have always got through by making a run for the shoal's shallow waters, which aren't deep enough for the Chinese coastguard, naval officials said. The tear-shaped shoal itself is large, some 10-11 nautical miles from top to bottom.

Zhang Baohui, a mainland security expert at Hong Kong's Lingnan University, said Beijing would be angry about the repairs, adding that Chinese ships would probably continue their "menacing" tactics. But they would not do anything that could be considered an act of war, Dr Zhang said.

"The larger geo-strategic context is more important than Second Thomas Shoal," he said. - Reuters/The Sydney Morning Herald

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Google Maps removes Chinese name for disputed South China Sea reef Scarborough Shoals

Google Maps shows the name Scarborough Shoal for the disputed island Photo: Google Maps

Google drops Chinese name from Maps after South China Sea controversy

Following pressure from the Philippines, Google redacts the Chinese name for the disputed Scarborough Shoal in the South China Sea

Google has removed the Chinese name for a disputed shoal in the South China Sea from its Maps service, following protests from Philippine citizens.

Google Maps English service on Tuesday corrected the labeling of the atoll to read Scarborough Shoal, the internationally neutral term for the territory claimed by both the Philippines and China.

Chinese protesters in Los Angeles, part of an escalating territorial dispute over the Huangyan Island, the Chinese name for Scarborough Shoal (Alamy)- image: The Telegraph

The move came after more than 2,000 people signed an online petition on Change.org asking for Google to stop identifying the shoal as part of China’s Zhongsha Island chain.

“We’ve updated Google Maps to fix the issue. We understand that geographic names can raise deep emotions which is why we worked quickly once this was brought to our attention,” Google’s office in Manila said in a statement.

In 2012, China and the Philippines engaged in a standoff at Scarborough Shoal, a rich fishing ground, after a Philippine warship attempted to expel Chinese fishing boats in the area. China has controlled the shoal since, though it is some 650 km away from Hainan island, the nearest major Chinese landmass.

China bases its claim to the area on its “nine-dash line”, a demarcation based on historical records that decrees almost the entire to South China Sea as Chinese territory.

A Filipino holds a sign during a demonstration in front of the Chinese embassy in Los Angeles (Alamy) - image: The Telegraph

The Philippines claims the shoal as part of its exclusive economic zone under the UN Convention on the Law of the Sea (UNCLOS).

“China’s sweeping claim of South China Sea under their nine-dash line purportedly historical boundary is illegal and is creating tension among nations,” the petition read.

“Google maps showing this is part of Zhongsha island chain gives credence to what is plainly a territory grab that peace loving nations should stand against.”

Construction at Kagitingan (Fiery Cross) Reef in the disputed Spratly Islands in the south China Sea by China (EPA) -image: The Telegraph

The kerfuffle comes at a moment when tension between China and the Philippines over South China Sea territory is high, following months of rapid and dramatic land reclamation work by China on the Spratly Islands, another disputed archipelago.

Last week the Philippines launched a case in the Permanent Court of Attribution in The Hague in an attempt to prove that China’s “nine-dash line” claim is incompatible with UNCLOS. - Source: The Telegraph

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The Fate of West Philippine Sea/South China Sea at the United Nation's Tribunal begin its Journey in Hague vs China

The Philippine delegation, with lawyers and advocates, before the start of Commencement of the 1st Round of Philippines Argument.- Image CNN Philippines

South China Sea dispute: Philippines warns China flouting UN maritime laws

THE HAGUE: The Philippines has appealed to an international tribunal to declare China's claims to most of the South China Sea illegal, warning the integrity of United Nations' maritime laws is at stake.

In opening comments to the tribunal in the Hague on Tuesday, Foreign Secretary Albert del Rosario said the Philippines had sought judicial intervention because China's behavior had become increasingly "aggressive" and negotiations had proved futile.

Del Rosario said the UN's Convention on the Law of the Sea, which the Philippines and China have both ratified, should be used to resolve their bitter territorial dispute.

"The case before you is of the utmost importance to the Philippines, to the region, and to the world," del Rosario told the tribunal.

"In our view, it is also of utmost significance to the integrity of the convention, and to the very fabric of the legal order of the seas and oceans."

China insists it has sovereign rights to nearly all of the South China Sea, a strategically vital waterway with shipping lanes through which about a third of all the world's traded oil passes.

Its claim, based on ancient Chinese maps, reaches close to the coasts of its southern neighbors.

The Philippines, Vietnam, Malaysia, Brunei and Taiwan also have claims to parts of the sea, which have for decades made it a potential military flashpoint.

Tensions have risen sharply in recent years as a rising China has sought to stake its claims more assertively.

Following a stand-off between Chinese ships and the weak Filipino Navy in 2012, China took control of a rich fishing ground called Scarborough Shoal that is within the Philippines' exclusive economic zone.

China has also undertaken giant reclamation activities that have raised fears it will use artificial islands to build new military outposts close to the Philippines  and other claimants.

China has rejected all criticism over its actions, insisting it has undisputed sovereign rights to the sea.

However del Rosario told the tribunal in the Hague that China's argument of claiming the sea based on "historic rights" was without foundation.

"The so-called nine dash line (based on an old map used by China) has no basis whatsoever under international law," he said.

The Philippines submitted its case to the Hague-based Permanent Court of Arbitration, a 117-state body that rules on disputes between countries, in early 2013.

Del Rosario's comments, held in closed door proceedings but released by his office in Manila on Wednesday, were part of the Philippines' opening oral arguments.

China has refused to participate in the proceedings and said it will not abide by any ruling, even though it is has ratified the UN's Convention on the Law of the Sea.

However the Philippines hopes a ruling in its favor will pressure China into making concessions.

Any ruling from the tribunal is not expected until next year.

The week covering July 7 to 13 will be pivotal to the Philippines’ legal battle to assert its claims over the portion of the South China Sea that it calls the West Philippine Sea.- Image CNN Philippines

Day 1: PH begins arguments in The Hague

On July 7, 2015, the Philippines has begun arguing before the Permanent Court of Arbitration in The Hague that the treaty-based court has jurisdiction — and should intervene — in the country's dispute with China over the West Philippine Sea.

Malacañan said the first day of hearings began with Solicitor General Florin Hilbay's introduction of the Philippines' case, and his presentation of the order of speakers.

Foreign Affairs Secretary Albert del Rosario made a plea for the tribunal to recognize its jurisdiction. He noted that the case is important not just to the country but also to the global community, owing to its impact on the rule of law in maritime disputes.

Paul Reichler, chief counsel of the Philippines, presented the justification for the five-man tribunal's jurisdiction over the Philippine claims under the United Nations Convention on the Law of the Sea (UNCLOS).

Reichler was followed by Philippe Sands, who explained that the Philippines did not raise questions of sovereignty over land or maritime delimitation.

Sands is the director of the University College London's Centre on International Courts and Tribunals.

The first round of Philippine arguments will continue Monday  (July 8) with two more hearings, from 4 p.m. to 7 p.m. and 8:30 p.m. to 11:30 p.m., Philippine time.

A few hours before the hearing, Undersecretary Abigail Valte, deputy presidential spokesperson, told CNN Philippines that the delegation is cautiously optimistic that the tribunal would rule in favor of Philippine' on the jurisdiction issue.

Valte is also in The Hague with the Philippine delegation.

"We have been preparing every day, every step of the way to come to a proceeding like this," she said.

China has refused to take part in the proceedings. It prefers to conduct bilateral talks with the Philippines. Sources: CNN Philippines and The Economic Times

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Philippines preparing Billion Dollars fund for Acquisition of NEW Submarine, Missiles, Ships, radars for AFP Upgrade

Kilo Class Diesel Submarine. Del Rosario said that between 2018 and 2023 the Philippines would buy electric-diesel submarines ($200 - $500 Million USD per unit)and advanced missile systems.

PH ramps up military spending in face of China threat

MANILA - The Philippines plans to ramp up military spending over the next 13 years, earmarking more than $20 billion to modernize its forces in the face of Beijing's maritime ambitions in the disputed West Philippine Sea (South China Sea), a top Air Force official told Reuters.

Major-General Raul del Rosario, military chief of plans, said the blueprint includes installing radars and sensors, and buying equipment such as submarines, frigates, fighters, surveillance planes and missile systems.

"By the time, we complete this plan, we will have complete coverage of the South China Sea," said del Rosario, a former fighter pilot, showing the military's detailed plan that was approved on Friday.

"We will have 24/7 awareness of what is happening in the disputed area and we'll be able to respond quicker to any contingency in our own exclusive economic zone."

He said the ambitious plan was initiated in 2013, but top brass had only approved overall spending of 998 billion pesos ($22.11 billion) last week.

Del Rosario said 83 billion pesos had been earmarked for the first five years, ₱444 billion pesos for the second five years and ₱471 billion pesos for the last five years.

In 1995, Congress had earmarked ₱364 billion pesos for a similar 15-year plan. Less than one-tenth of that sum was actually spent by 2010.

The modernization program is designed to strengthen Manila's claims in the South China Sea, believed to be rich in energy deposits.

China has become increasingly assertive in the South China Sea, building artificial islands in areas over which the Philippines and other countries have rival claims. The moves have sparked alarm regionally and in Washington.

SUBMARINES, MISSILES AND SURVEILLANCE PLANES

President Benigno Aquino has promised the military about ₱34 billion pesos this year, which will fund the purchase of two frigates and a twin-engine long range maritime aircraft.

So far, the government has given the military ₱9.4 billion pesos in 2014. This has been used to purchase eight combat utility helicopters and as a downpayment for 12 FA-50 fighter-trainers from South Korea. Two of the aircraft are expected in 2016.

Del Rosario said that between 2018 and 2023 the Philippines would buy electric-diesel submarines and advanced missile systems.

Three aerial surveillance radars with a range of 350 nautical miles will also be installed in Ilocos Norte, Lubang island and Mount Salacot in Palawan, all facing the South China Sea to detect movements in the disputed area.

These will complement the navy's two surface sensors capable of detecting ship activities 200 miles away. Three surveillance planes will also be on constant patrol in the area.

"We do not aim to defeat China," del Rosario said. "But our goal is make any state think twice before attacking. We will make sure anybody attacking us would end up with a bloodied nose." -  ABS-CBN News

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Lt. Gen. Iriberri is new Armed Forces of the Philippines chief; Facing Graft charges for ₱97.7 million Php Contract

In his speech during the change of command ceremony at Camp Aguinaldo, Lt. Gen. Hernando Iriberri said he will pursue a "straight and true" path. - image:CNN Philippines

Lt. Gen. Iriberri is new AFP chief

Metro Manila (CNN Philippines) — Lt. Gen. Hernando Iriberri is the new chief of the Armed Forces. He is the 46th to assume the position.

On Friday morning (July 10), Iriberri gave a speech at the change of command ceremony at Camp Aguinaldo where he vowed to follow "the path that is straight and true" — a reference to the Aquino administration's "Tuwid na Daan" campaign against corruption.

In his speech, he also expressed his acceptance of the responsibilities as chief of the Armed Forces of the Philippines (AFP).

"Mga mahal kong kababayan, buong pagpapakumbaba ko pong tinatanggap ang hamon at buong puso ko pong gagampanan ang aking katungkulan."

[Translation: My beloved countrymen, I humbly accept the challenges and will wholeheartedly perform my tasks as the AFP chief.]

He also vowed to win and secure peace in the country with his own brand of leadership.

"I only have one principle of leadership. To be a good leader, one must know how to understand people and the situation. To our countrymen, I am all yours to serve."

During the ceremony, President Benigno Aquino III ordered the newly appointed AFP chief to continue the reforms implemented by former AFP chief Gen. Gregorio Catapang Jr.

He also ordered Iriberri to ensure a peaceful and clean elections in 2016.

Gazmin aide

A Surigao del Sur​ native, Iriberri was the former Army chief, and before that, was the chief of the 7th Infantry Division, based in Nueva Ecija.

He was commissioned in the Armed Forces of the Philippines (AFP) after graduating from the Philippine Military Academy (PMA). He was part of the PMA Matikas Class of 1983.

Iriberri served as the Army spokesman in 2000 when Defense Secretary Voltaire Gazmin was its commanding general. When Gazmin was appointed as the Defense secretary, he served as the cabinet secretary's most senior aide.

Gazmin is believed to be highly influential in military appointments in the Aquino administration.

Graft charges

The new AFP chief, however, is facing graft charges before the Ombudsman for the alleged failure to issue documents involving three contracts worth ₱97.7 million Php. This resulted in the shelving of contracts won by Joavi Philippines.

The contracts were for ammunition delivery in 2010 and 2012. But Iriberri said he is ready to answer the charges. - CNN Philippines' David Santos  and Anjo Alimario contributed to this report.

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China stock loses $3.2 trillion US Dollars in weeks; Suicide rumor -Economy facing trouble

A stock investor looks up in a brokerage house in Shanghai. Chinese authorities have launched frantic efforts to shore up plunging stock prices following another 5.7 per cent decline in the country's main market index on Friday. Source: AP

Chinese chaos worse than Greece: Chinese stock market loses $3.2 trillion, authorities inject cash

WHILE the world worries about Greece, there’s an even bigger problem closer to home: China.

A stock market crash there has seen $3.2 trillion wiped from the value of Chinese shares in just three weeks, triggering an emergency response from the government and warnings of “monstrous” public disorder.

And the effects for Australia could be serious, affecting our key commodity exports and sparking the beginning of a period of recession-like conditions.

“State-owned newspapers have used their strongest language yet, telling people ‘not to lose their minds’ and ‘not to bury themselves in horror and anxiety’. [Our] positive measures will take time to produce results,” writes IG Markets.

“If China does not find support today, the disorder could be monstrous.”

In an extraordinary move, the People’s Bank of China has begun lending money to investors to buy shares in the flailing market. The Wall Street Journal reports this “liquidity assistance” will be provided to the regulator-owned China Securities Finance Corp, which will lend the money to brokerages, which will in turn lend to investors.

The dramatic intervention marks the first time funds from the central bank have been directed anywhere other than the banks, signaling serious concern from authorities about the crisis.

At the same time, Chinese authorities are putting a halt to any new stock listings. The market regulator announced on Friday it would limit initial public offerings — which disrupt the rest of the market — in an attempt to curb plunging share prices.

While the exact amount of assistance hasn’t been revealed, the WSJ reports no upper limit has been set.

All short-selling — the practice of betting that stocks will fall — has been banned, and Chinese media has rushed to reassure citizens.

Yesterday, shares in big state companies soared in response to the but many others sank as jittery small investors tried to cut their losses, Associated Press reports. The market benchmark Shanghai Composite closed up 2.4 percent but still was down 27 percent from its June 12 peak.

Experts fear it could turn into a full-blown crash introducing even more uncertainty into global markets as Europe teeters on the edge of a potential euro zone exit by Greece, after Sunday’s controversial referendum.

WHAT DOES IT MEAN FOR AUSTRALIA?

For Australia, the market crash in China is likely to impact earnings on key exports iron ore and coal, further slashing government revenue, while also putting downward pressure on the Australian dollar.

Jordan Eliseo, chief economist with ABC Bullion, said it was important to remember that the amount of wealth Chinese citizens have tied up in the stock market is relatively minor compared with western investors.

Stocks only make up about 8 per cent of household wealth in China, compared with around 20 per cent in developed nations.

“The market crash there is generating headlines, but it’s not going to have the same impact as a comparable crash would in a developed market,” he said.

“What it means for Australia, though, is it’s very clear there are some serious imbalances in the Chinese economy, and the rate of growth they’ve enjoyed in the past is over. There’s no question our export earnings are going to take another hit.”

Mr Eliseo predicts Australia is likely to experience “recession-like” conditions such as negative wage growth for many years to come. “I believe that’s going to be the new norm,” he said.

CRACKDOWN AS PANIC TRIGGERS ‘SUICIDE’ RUMOURS

Underscoring growing jitters amid the three-week sell-off, police in Beijing detained a man on Sunday for allegedly spreading a rumor online that a person jumped to their death in the city’s financial district due to China’s precarious stock markets.

The 29-year-old man detained was identified by the surname Tian, and is a manager at a technology and science company in Beijing, police said in a post on their official microblog.

Police said Tian’s alleged posting of the rumor took place Friday and called on internet users to obey laws and regulations, not to believe and spread rumors, and to cooperate with police.

The state-run Xinhua news agency reported that Tian allegedly posted the rumors with video clips and screenshots Friday afternoon.

The post, which is said to have gone viral, “provoked emotional responses among stock investors who suffered losses over the past weeks”, Xinhua said.

Xinhua added that a police investigation showed that the video in question had been shot on Friday morning in the eastern Chinese province of Jiangsu where a man had jumped to his death. Local police there were investigating that case, Xinhua said.

The original post was unavailable Sunday on China’s tightly controlled social media, where authorities are quick to delete controversial material. - Jews News /  News.com.au

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2 of 12 FA-50 Fighter jets delivered - now flying with Philippine Air Force

Philippines Receives Two F-50s From Korea

Two of the 12 FA-50 fighters of the ₱18.9 billion Php contract signed by President Benigno C. Aquino III in South Korea on March 28, 2014 has been received by the Philippine Air Force (PAF) ahead of schedule in December 2015. "FA-50PH's maiden flight took place on 19 June after the Philippines has signed a contract

Two of the 12 FA-50 fighters of the ₱18.9 Php billion contract signed by President Benigno C. Aquino III in South Korea on March 28, 2014 has been received by the Philippine Air Force (PAF) ahead of schedule in December 2015.

"FA-50PH's maiden flight took place on 19 June after the Philippines has signed a contract for 12 KAI FA-50 fighter aircraft in March last year," South Korea's Korean Aerospace Industry said

The FA-50 is an armed variant of the T-50 advanced jet trainer, which KAI jointly developed with Lockheed Martin. Other variants include the TA-50, a lightly armed variant of the original aircraft, and the T-50B, which is optimized as a performance aircraft. The T-50B is operational with South Korea's display team, the Black Eagles

High timer PAF pilots were selected to train using the FA-50 fighters in South Korea. These pilots will then become the instructor pilots to train the other pilots in army. The new FA-50s have a more advanced weaponry system than what the country has in present, which are 'ancient' planes like Nomad which can do only 8-9 hour round trips, as Pres. Aquino told reporters in Busan, South Korea. It could load up to 4.5 tons of weapons and has a wide-range of mobilization system. FA-50 has also, 20 mm three-barrel gun that can fire at extremely high rate internally installed. FA-50 can be fitted with AIM-9 Sidewinder, a short-range air-to-air missile; AGM-65, an air-to-surface missile designed for close-air support missions; cluster bombs and rocket launchers. KAI assured that by 2017 the procurement will be complete. - Manila Channel and Flight Global

 

 

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Death Execution just Suspended: Why Mary Jane Veloso got last-minute reprieve

  Widodo said Mary Jane Veloso's execution is just postponed. - image: pinoy-ofw.com

Why Mary Jane Veloso got last-minute reprieve 

by Nick Perry, Agence France-Presse Posted at 04/29/2015 3:18 AM | Updated as of 04/29/2015 5:00 AM

Indonesia early Wednesday executed eight drug convicts, including two Australians, by firing squad but a Filipina was spared at the 11th hour, local reports said.

Defying a firestorm of international criticism and heartrending pleas by relatives, authorities put the seven foreigners and a local man to death after midnight Tuesday (1700 GMT), the reports said.

However the Filipina, Mary Jane Veloso, was spared after someone suspected of recruiting her and tricking her into carrying drugs to Indonesia turned herself in to authorities in the Philippines, MetroTV and the Jakarta Post reported.

Eight convicts -- two Australians, one from Brazil and four from Africa, as well as the Indonesian -- were put to death on the high-security prison island of Nusakambangan, the reports said.

In Indonesian executions, convicts are led to clearings just after midnight, tied to posts and then giving the option of kneeling, standing or sitting before being executed by 12-man firing squads.

President Joko Widodo has been a vocal supporter of the death penalty for drug traffickers, claiming Indonesia is facing an emergency due to rising narcotics use.

He has turned a deaf ear to appeals from the international community led by United Nations chief Ban Ki-moon.

In an 11th hour bid to stop the executions, the European Union, Australia and France warned in a joint statement late Tuesday the move would have an "impact on Indonesia's position in the world and its international reputation".

Anguished visits

In the hours before the convicts were put to death, there was a flurry of activity as ambulances carried coffins to the island, and relatives made final anguished visits to their loved ones.

Relatives of Myuran Sukumaran and Andrew Chan, the Australian ringleaders of the so-called "Bali Nine" heroin trafficking group, wailed in grief as they headed to the island, and one relative collapsed amid a huge scrum of journalists.

"I am asking the government not to kill him. Call off the execution. Please don't take my son," said Sukumaran's mother Raji, in a tearful plea after visiting him.

Chan, who like Sukumaran is in his 30s, married his Indonesian girlfriend in a jailhouse ceremony with family and friends on Nusakambangan on Monday, his final wish.

The news of the temporary reprieve for Veloso, who claims she was duped into smuggling drugs into Indonesia by international drugs syndicates, comes after a huge campaign to save her in the Philippines.

President Benigno Aquino had urged Widodo on the sidelines of a summit this week to grant her clemency.

'Unspeakable grief'

Australia had mounted a sustained campaign to save its citizens, who have been on death row for almost a decade.

Ahead of the executions, Foreign Minister Julie Bishop Tuesday criticised Indonesia's "chaotic" handling of the execution arrangements.

The families "do deserve respect and they do deserve to have dignity shown to them at this time of unspeakable grief", she told the Australian Broadcasting Corporation.

In Sydney late Tuesday about 300 supporters of the Australian pair held a vigil, with several people displaying signs calling for the Indonesian president to show mercy.

The execution of the Brazilian convict, Rodrigo Gularte, has also generated much criticism in his homeland, with his family saying he should not face the firing squad as he has been diagnosed with schizophrenia.

Three of the African traffickers are confirmed as being from Nigeria. However it is not clear whether the fourth holds Ghanaian or Nigerian nationality.

A Frenchman was originally among the group set to be executed but was granted a temporary reprieve after authorities agreed to allow an outstanding legal appeal to run its course.

Jakarta executed six drug convicts, including five foreigners, in January sparking an international storm as Brazil and the Netherlands -- whose citizens were among those put to death -- recalled their ambassadors.

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Mayor Duterte got 34% Approval Rating for Philippine Presidential race in 2016

Davao City Mayor Rodrigo Duterte. Pic: AP

Southern Philippines Mayor Duterte emerges as presidential prospect

If the presidential elections were to be held solely in the island of Mindanao in the Philippines, Davao City’s Mayor Rodrigo Duterte would be the runaway winner.

According to the Pulse Asia survey, Duterte will win 34 percent of the Mindanao votes with Vice President Binay coming in second with 22 percent if the elections were held today.

Estrada, who previously lorded the Mindanao votes, was down to 18 percent while Grace Poe has 11.

The Asia Pulse survey was conducted on March 1-7.

Duterte has also inched up in the nationwide presidential survey with 12 percent, good enough for 3rd and 4th – tied with Estrada. That is just after less than 2 months of low-profile exposure using federalism as platform.

It is the first time Duterte figured prominently in a major survey.

Binay’s lead has improved from 26 percent in November 2014– 29 percent.

Poe is 2nd in voting preference with 14 percent.

This is a significant leap for Duterte who only in December was not even in the list of possible presidential candidates for 2016.

The Davao City mayor, who will turn 70 on March 28, however, is lagging far behind in the National Capital Region and the rest of Luzon, with only 7 and 4 percent voting preference respectively.

He was likewise only a distant 4th in Visayas with 9 per cent voter preference.

Mindanao is the second largest island in the Philippines.

Nobody from Mindanao has ever made it to Malacañang.

The closest was the late Vice President Emmanuel Pelaez who hailed from Misamis Oriental. Pelaez was VP to Ferdinand Marcos from 1961 to 1965.

Duterte is neck and neck with Binay over voter preference among the ABC class, but Binay continues to maintain his grip among D and E voters.

The vice president is likewise still leading the pack in NCR, Luzon and Visayas.

Maverick

Duterte is seen as a political maverick although he is officially a member of the PDP-Laban, a Mindanao-grown political party that is also the former political party of Binay.

The controversial Davao City mayor has been courted by all previous post-Cory Aquino Philippine presidents either as a cabinet member or part of the administration’s senatorial slate. The pistol-packing Duterte however politely declined all overtures saying he is not cut for a national position. Last year, he even threatened to shoot those who are egging him to run for president.

He once berated the US Federal Bureau of Investigation for spiriting out from the hospital an American who was injured in a bomb blast inside his rented hotel room in Davao City.

At the height of national indignation over the execution of Filipina overseas contract worker Flor Contemplacion, he led protesters in Davao City by burning the Singaporean flag.

Duterte likewise threatened to declare a revolutionary government if only to solve corruption in the country.

Listening tour

Early this year, he was prevailed to soften his stand against running for the presidency.

He used federalism as a platform for a nationwide listening tour which he started only this year.

He has been invited in Bicol, Pangasinan, Baguio, Manila, Iloilo and Leyte where he was mobbed by supporters and the media.

While he has not officially declared his intention to seek the presidency, a source said a survey that will land him no lower that fourth and in double digit approval will change his mind.

Mindanaoan in the senate

Meanwhile, at least three other Mindanaoans are prominently figuring in the same Pulse Asia survey.

Former Senator Miguel Zubiri of Bukidnon is ranked 7th in the survey while Pacquiao and incumbent Senator Teofisto Guingona III are battling it out for the 11-17th place.

Guingona is also from Bukidnon while Pacquiao, who is now in the US training for his May 2 fight, is a member of the House of Representative representing the lone district of Sarangani.

Pacquiao is expected to throw his hat into the 2016 senatorial race. - Asian Correspondent

Duterte soon to Officially Announce for his 2016 Presidential Race - Saving the Philippines from being fractured

SAAN MAGIGING MALAKAS SI MAYOR DUTERTE PAG TUMAKBONG PANGULO?

AKSYON | Ayon sa political analyst na si Prospero de Vera, posibleng maging malakas sa Local Government Units si Davao City Mayor Rodrigo Duterte oras na tumakbo siya bilang pangulo ng bansa. Bagay daw na makaaapekto kina Vice-President Jejomar Binay at Interior Sec. Mar Roxas na matagal nang may planong tumakbo bilang pangulo sa 2016 elections. Ang detalye sa ulat ni Jove Francisco.

(Video uploaded by James Relativo;

Manuscript edited by Pepher Operio;

Final editing by Seph Ubalde

For any concerns, you may E-Mail news 5 at newsfiveeverywhere@gmail.com) more on News5

 

 

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USA will Support the Philippines' Spratly issue but Filipinos - cautious might betray again

A United Nations convention is clear on what constitutes sovereign territory, and the United States is prepared to do whatever is asked of it by the Philippines in connection with the South China Sea / West Philippine Sea dispute, US Ambassador Harry Thomas Jr. said Monday (June 13, 2011) in Makati. Thomas Statement is absolutely opposite of the statement of Rebecca Thomson; US spokesperson saying “The US will not support the Philippine Spratly Issue as they are out of the Issue. Even USA is not united of their stands for the Spratlys issue.

 “We will do whatever we’re asked,” Thomas told The STAR during a visit to the newspaper office, when asked if the US would be willing to participate in the settlement of the territorial dispute.

But he quickly added, “What we want to say is right now we believe consistently that is not something for us to do. We have not been asked to do that. And we can’t deal with hypotheticals.”

Later, when pressed about US participation in negotiations, he said, “We have not been invited.”

Thomas spoke as China warned external powers to stay out of the overlapping territorial claims in the Spratly Islands.

Reuters reported Monday (June 13, 2011) from Beijing that the warning was contained in a commentary in the main military newspaper Liberation Army Daily, which is controlled by China’s Communist Party, and where articles are vetted to reflect official thinking.

President Aquino welcomed Thomas’ statement as he noted the military power of China and its huge population.

“We don’t want any hostility to break out,” Aquino said at Malacañang, even as he reaffirmed that islands in the West Philippine Sea are within undisputed Philippine territory under an international convention.

“Perhaps the presence of our treaty partner, which is the United States of America, ensures that all of us will have freedom of navigation, will conform to international law,” Aquino added.

Earlier Monday (June 13, 2011), Thomas said the US would stand with the Philippines in all issues.

“I want to assure you – on all subjects, we in the United States are with the Philippines. The Philippines and the United States are strategic treaty allies. We are partners,” Thomas said at the launching of the US-supported National Renewable Energy Program in Makati City.

“We will continue to consult and work with each other on all issues, including the South China Sea and Spratly Islands,” Thomas said.

The Philippines has protested Chinese military activities in the West Philippine Sea, which is within the country’s territory as defined under the 1982 United Nations Convention on the Law of the Sea (UNCLOS).

The UNCLOS, Thomas said, is “pretty clear on what is Philippine territory.”

Thomas mentioned that US President Barack Obama has said Washington supports the 2002 Code of Conduct in the South China Sea under UNCLOS.

Among other things, the Code of Conduct calls for all claimants to sit together and settle the dispute, he said.

President Aquino is so thankful

President Aquino welcomed Thomas’ declaration.

“We are grateful to the (US), especially when they reiterated that we are strategic partners, we have a treaty between us,” Aquino said when asked for his reaction to Thomas’ statement in a press briefing later at Malacañang.

The President stressed the importance of adhering to international laws, specifically UNCLOS.

“What that law says is that you have exclusive economic authority or exclusive economic zone extending 200 (nautical) miles from your continental shelf,” Aquino said.

“Reed (Recto) Bank, which is the subject of incidents lately, is located 80 (nautical) miles off Palawan, the closest of our contention in the Spratlys, the closest China (has) is 576 (nautical) miles if I remember correctly - 576 is obviously greater than 200,” he added.

“Why should there be a dispute if we are conforming to international law?” Aquino asked.

“Of course, they are a superpower, more than 10 times our population, we don’t want any hostility to break out. Perhaps the presence of our treaty partner which is the United States of America ensures that all of us will have freedom of navigation, will conform to international law,” the President said.

Deputy presidential spokesperson Abigail Valte said in a press briefing that the statement of the US ambassador “reaffirms even more our commitment to finding diplomatic and a peaceful resolution on the issues that we have in the West Philippine Sea.”

Valte said the statement was welcome because “everybody knows that we always have good relationship with the United States and so with other countries as well, even if we have issues with them.”

But Valte said there was no need to elaborate on the kind of assistance that the US is prepared to offer in the event of armed hostilities with China.

“We are in the process of trying to find a peaceful resolution to the conflict that we are in the middle of. So we do not want to make any statement that would be contrary to that position,” she said.

“I think with or without that clear statement, we have always been firm on our position on the issue. I don’t think anybody can doubt our resolve to have a resolution, a peaceful and diplomatic resolution on the issue,” Valte said.

“Our resolve cannot be questioned and that we will do so, we will pursue such resolution through diplomatic moves,” Valte said.

Valte said there should be no talk of military assistance yet because all claimant-countries were talking and seeking a peaceful resolution to the issue.

Chinese Ambassador Liu Jianchao said on Saturday that “military means” was not an option for China.

Authorities have recorded six to seven incursions into Philippine-claimed areas by Chinese vessels and aircraft.

Drilon appeal for Peace in Spratlys

Sen. Franklin Drilon, an administration ally, called for an end to incendiary statements on the West Philippine Sea issue.

“All sides should exercise calm and avoid issuing statements because this is a very sensitive issue. We must defend our sovereignty but we must also be very careful in issuing statements,” Drilon said.

Drilon emphasized that only the Department of Foreign Affairs should be allowed to issue statements because the issue involves diplomacy and foreign relations.

Drilon also said the country’s relations with China cannot be easily set aside. He was apparently referring to a call by Albay Gov. Joey Salceda for a boycott of Chinese products.

He also stressed that the issue should be discussed multilaterally, or taken up before the International Court of Justice.

The Philippines and other countries in the Association of Southeast Asian Nations (ASEAN), he added, may take a united stand against China’s alleged bullying.

“This cannot be resolved on a bilateral or one-on-one basis. China is too big so the discussions should be multilateral, meaning the claimants in ASEAN should form a body to face China,” Drilon said.

Senate committee on foreign relations chair Loren Legarda also pushed for diplomacy in resolving the issue.

“It is to the region’s and the international community’s collective interest that the parties remain committed to exploring ways for building trust and confidence on the basis of equality and mutual respect,” Legarda said.

Cagayan Rep. Juan Ponce Enrile Jr., for his part, called for sobriety.

“Let the concerned agencies do the talking instead of (Palace) spokespersons who may not have a full grasp of West Philippine Sea, diplomacy, conflict management, and negotiations,” he said.

“When it comes to foreign policy, we should speak with one voice. We cannot compromise our foreign relations from interpretations made by spokespersons who muddle the handling of a potential conflict,” he said.

Enrile decried the apparently contradictory statements made by presidential spokesman Edwin Lacierda and Valte, his deputy, on the Spratlys issue.

He said that while Lacierda was quoted as saying that the country is “committed to a multilateral approach to the resolution of claims in the Spratlys,” Valte invoked the RP-US Mutual Defense Treaty (MDT).

Enrile said the agencies that should speak for the country on the issue are the DFA and the Department of National Defense.

Enrile’s father, Senate President Juan Ponce Enrile, Sen. Joker Arroyo and other senators have expressed doubts on whether the MDT can compel the US to help the Philippines in case of an armed confrontation with China.

Enrile said the best way to resolve the conflict would be through negotiations under the framework of the UNCLOS.

Boycott All Chinese Product

Rep. Enrile also chided Salceda for calling for a boycott of Chinese-made goods. Salceda belongs to the ruling Liberal Party.

“Why on earth are we calling for a boycott of Chinese goods? China is bigger than the Philippines in terms of consumer market, so how can we, as a neighbor, even contemplate about it?” he asked.

“As responsible elected officials, we should refrain from instigating a trade war with the third biggest buyer of Philippine exports. The saber rattling is uncalled for. Let’s put a stop to that,” Rep. Enrile said.

“We should instead focus on setting up our national coast defense system to protect our baselines and buy and patronize Filipino products so that we help our economy,” he said.

Sen. Ralph Recto also slammed Salceda for his boycott call.

“The right response is to increase our trade and investments with China and perhaps, maybe with the right growth formula, we can get even economically years from now,” he added.

He said that it would be a “big economic victory” for the Philippines if it closes its $900-million trade deficit with China.

The country imported $7 billion worth of goods from China in 2010 as against its exports of a little over $6 billion.

Recto likewise noted that as part of the emerging economies and touted by respected global bodies as among the Top 25 countries with strong economies by 2025, the Philippines should “act accordingly” and should not be “boycott happy.”

“We should not only engage China diplomatically but also through business,” Recto stressed.

“The Spratlys question should be settled peacefully. You can’t be saber rattling with China. It’s our biggest trading neighbor,” Recto said.

“An action like that (boycott call) has repercussions. They can tell all you Filipino people in China, go home. They can call for a boycott of all Filipino products. I don’t know who will lose in this one. So we should take it easy,” Sen. Enrile said.

Recto said the Armed Forces of the Philippines should beef up its arsenal and capability “not for arms race but to protect our coral reefs and fishermen.”

Recto said the AFP should start buying modern equipment and fleet.

“We should start buying some of these equipment and I don’t care if we buy them from China,” he said.

 

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