Senate panel approves CIA nominee Haspel despite torture background

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In this file photo taken on May 9, 2018 Gina Haspel testifies before the Senate Intelligence Committee on her nomination to be the next CIA director in the Hart Senate Office Building on Capitol Hill in Washington, DC./AFP
In this file photo taken on May 9, 2018 Gina Haspel testifies before the Senate Intelligence Committee on her nomination to be the next CIA director in the Hart Senate Office Building on Capitol Hill in Washington, DC./AFP

Senate panel approves CIA nominee Haspel despite torture background

ASEAN+ May 17, 2018 10:29

By Agence France-Presse
Washington

A key US Senate panel on Wednesday greenlighted the nomination of veteran covert operative Gina Haspel to become director of the Central Intelligence Agency, despite her involvement in the torture of Al-Qaeda detainees in the early 2000s.

The Intelligence Committee voted 10-5 to forward her nomination to the entire Senate, virtually assuring that she will earn final approval to lead the US spy agency, replacing Mike Pompeo, who is now Secretary of State.

Republican Senator John McCain, who was tortured during years spent as a prisoner of war in Vietnam, led a push to reject Haspel after she refused to describe the interrogation methods used after the 9/11 attacks as “immoral.”

But she reiterated her opposition to the practice in a letter sent earlier this week to the committee’s senior Democrat, Mark Warner, persuading him to endorse her.

“With the benefit of hindsight and my experience as a senior agency leader, the enhanced interrogation program is not one the CIA should have undertaken,” she told Warner in the letter dated Monday.

Warner’s support was matched by one other unnamed Democrat in the secret vote, ensuring the closely divided Senate will also be able to pass Haspel through in a vote expected as early as this week.

It will make Haspel, a 61-year-old Russia specialist, the first-ever woman to lead the CIA, and the first director who spent an entire career in the agency’s clandestine services.

“Gina Haspel is the most qualified person the president could choose to lead the CIA and the most prepared nominee in the 70-year history of the agency,” committee chairman Richard Burr said in a statement.

Warner echoed that sentiment.

“I believe that she will be a strong advocate for the agency’s workforce, and an independent voice who can and will stand up on behalf of our nation’s intelligence community,” he said.

“Most importantly, I believe she is someone who can and will stand up to the president if ordered to do something illegal or immoral — like a return to torture.”

President Donald Trump, in a tweet, called Haspel “exceptionally qualified and the Senate should confirm her immediately. We need her to keep our great country safe!”

But Democrat Ron Wyden, one of the most strident opponents of the torture program, said he still has “grave concerns” about her suitability, rooted in still-classified matters that Haspel and the agency refused to make public.

The refusal to declassify the matters, Wyden said, has “only to do with protecting her own image.”

Out of the shadows

After a lifetime spent in the clandestine service, almost nothing was known about Haspel, even what she looked like, until a sketchy official biography and a few photographs were released in the last two months.

She joined the CIA in 1985, a few years after graduating from a Kentucky university where she studied languages and journalism.

Her first position was in Africa as a case officer, an assignment she says “was right out of a spy novel. It really didn’t get any better than that.”

Learning Russian and Turkish, in the 1990s she worked in Eastern Europe, and was CIA station chief in a country reported as Azerbaijan.

She joined the agency’s Counterterrorism Center on September 11, 2001, the day when Al-Qaeda operatives hijacked and crashed four US airliners, leaving almost 3,000 dead.

It was that period, from 2001 to 2005, that has cast a shadow both on the CIA and Haspel’s resume.

Former CIA officials say Haspel oversaw a secret prison in Thailand run by the agency where Al-Qaeda suspects Abu Zubaydah and Abd al-Rahim al-Nashiri were water-boarded.

She has won praise from some for following orders; others criticize her for not refusing to do so. In her Senate confirmation hearing, she said agents were working under orders they understood were legal.

“We had been charged with making sure the country wasn’t attacked again,” she said.

Her nomination had strong support from inside the agency and across the intelligence community, where even strong opponents of Trump backed her.

“Gina Haspel is precisely the kind of truth teller you want in the room when important decisions are being made,” said former CIA director Michael Hayden.

Trump says ‘we’ll see’ as North Korea threatens to cancel summit

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Trump says ‘we’ll see’ as North Korea threatens to cancel summit

Breaking News May 17, 2018 08:35

By Agence France-Presse
Washington

US President Donald Trump sounded a note of caution Wednesday about his much-vaunted summit with Kim Jong Un, saying “we’ll see” after Pyongyang threatened to cancel.

Trump said the US government had not received any official word of a change in plans for the June 12 meeting in Singapore.

“We haven’t been notified at all. We’ll have to see,” Trump said in the Oval Office.

“We haven’t seen anything. We haven’t heard anything. We will see what happens. Whatever it is, it is.”

After weeks of warm words and diplomatic backslapping, Pyongyang abruptly threatened to pull out Tuesday, over US demands for “unilateral nuclear abandonment.”

In an angrily worded statement, the North warned “if the US is trying to drive us into a corner to force our unilateral nuclear abandonment, we will no longer be interested in such dialogue.”

The statement was attributed to first vice foreign minister Kim Kye Gwan and carried by state media KCNA.

In that case, he added, Pyongyang would have to “reconsider” its participation at next month’s summit in Singapore.

The first vice foreign minister also tore into Trump’s National Security Advisor John Bolton for drawing parallels between North Korea and Libya, calling the comparison “absolutely absurd.”

“We do not hide our feeling of repugnance towards him,” he said of Bolton.

Bolton has pushed the idea of a deal with North Korea like that reached with Libya’s Moamer Kadhafi, who agreed in 2003 to the elimination of his country’s nuclear program and chemical weapons arsenal to gain sanctions relief.

After giving up his atomic program, Kadhafi was killed in 2011 in an uprising backed by NATO bombing.

A plea from China

Experts have not been surprised by the sudden about face, expecting bumps in the road as tough issues to be discussed in the meeting come into sharper focus.

Washington is pressing for North Korea’s complete, verifiable and irreversible denuclearization. But so far, the North has given no public indication of what it is offering, beyond a broad commitment to denuclearization of the “Korean peninsula.”

Pyongyang “made clear on several occasions that precondition for denuclearization is to put an end to anti-DPRK hostile policy and nuclear threats and blackmail of the United States,” the North Korean minister said.

In the past, Pyongyang has demanded the withdrawal of US troops stationed in the South, and an end to Washington’s nuclear umbrella over its ally.

China, North Korea’s sole major ally, called for the summit to go ahead.

“The situation on the peninsula has eased up, which is worth cherishing,” Chinese foreign ministry spokesman Lu Kang told a regular briefing.

Minister Kim also dismissed offers by US Secretary of State Mike Pompeo for US economic aid if the North denuclearizes.

“We have never had any expectation of US support in carrying out our economic construction and will not at all make such a deal in future,” he said.

French Foreign Minister Jean-Yves Le Drian urged North Korea to “demonstrate its sincerity to negotiate on its denuclearization.”

During a meeting with his Chinese counterpart Wang Yi, Le Drian said: “Highs and lows can come along as the recent news from the peninsula shows, but we must not lose sight of the goal.”

The White House said plans for the summit were moving ahead.

“The president is ready if the meeting takes place. And if it doesn’t, we will continue the maximum pressure campaign that has been ongoing,” White House Press Secretary Sarah Sanders said.

Tightrope diplomacy

The North Korean warning follows a weeks-long charm offensive that has seen Kim Jong Un hold a historic summit with the South’s president and meet twice with Chinese President Xi Jinping.

Pyongyang also raised hopes ahead of the US summit by announcing it will destroy its nuclear testing site next week.

Analysts said Pyongyang appeared to be trying to redefine the terms of the debate.

“It’s a diplomatic tactic,” Kim Hyun-wook, professor at the Korea National Diplomatic Academy, told AFP, calling it “brinkmanship to change the US position.”

“It looks like Kim Jong Un was pushed into accepting US demands for ‘denuclearization-first’ but is now trying to change its position after normalizing North Korea-China relations and securing economic assistance,” he added.

“The classic North Korean tightrope diplomacy between the US and China has begun.”

US officials have repeatedly claimed credit for Washington’s “maximum pressure” policy for bringing Pyongyang to the negotiating table.

Joshua Pollack of the Middlebury Institute for International Studies said Pyongyang had been irritated by the “triumphalist tone.”

“The North Koreans aren’t happy with what they’re seeing and hearing,” he said. “There is still a yawning gulf between expectations for diplomacy in Pyongyang and Washington, DC.”

Thunderstruck

KCNA also denounced the Max Thunder joint military exercises being held between the US and South Korea as a “rude and wicked provocation,” and Seoul said it had received a message cancelling planned high-level talks “indefinitely.”

The two-week drills started last Friday and involves some 100 aircraft from the two allies, including F-22 stealth fighter jets.

State Department spokeswoman Heather Nauert told reporters it had received “no notification” of a position change by North Korea on next month’s meeting.

The exercises were “not provocative” and would continue, she added.

Canada’s Trudeau calls for inquiry into Gaza deaths

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Canada’s Trudeau calls for inquiry into Gaza deaths

Breaking News May 17, 2018 07:55

By Agence France-Presse
Ottawa

Canadian Prime Minister Justin Trudeau on Wednesday called for an “independent investigation” after the death of 60 Palestinians killed by the Israeli army during protests on Monday.

“Reported use of excessive force and live ammunition is inexcusable,” he said. “It is imperative we establish the facts of what is happening in Gaza.”

“Canada calls for an immediate independent investigation to thoroughly examine the facts on the ground — including any incitement, violence, and the excessive use of force.”

Monday’s violence coincided with the controversial inauguration of the new US embassy in Jerusalem, which broke with decades of international tradition.

Israel justified the use of force against Palestinian protesters by citing the need to defend its borders, which the demonstrators were trying to overwhelm.

Tens of thousands of Palestinians had gathered near the border while smaller numbers approached the fence and sought to break through.

Trudeau offered Canadian assistance in the probe, while vowing to work with partners and multilateral institutions “to address this serious situation.”

The prime minister also said he is “appalled” that a Canadian doctor, Tarek Loubani, was among at least 2,400 unarmed protestors, media, first responders and children wounded.

“We are doing everything we can to assist Dr Loubani and his family, and to determine how a Canadian citizen came to be injured,” he said.

“We are engaging with Israeli officials to get to the bottom of these events.”

Canada has been a longstanding ally and supporter of Israel, but the Trudeau administration has been more critical of some of its policies regarding settlements and refugees than the previous Conservative government.

Now in opposition, the Conservatives said in February that they would recognize Jerusalem as Israel’s capital if they win power in the next election in 2019.

With friends like Trump, who needs enemies: EU chief

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US President Donald Trump makes remarks at a roundtable meeting on sanctuary cities May 16, 2018, in the Cabinet Room at the White House in Washington, DC. / AFP PHOTO / Jim WATSON
US President Donald Trump makes remarks at a roundtable meeting on sanctuary cities May 16, 2018, in the Cabinet Room at the White House in Washington, DC. / AFP PHOTO / Jim WATSON

With friends like Trump, who needs enemies: EU chief

Breaking News May 17, 2018 07:50

By Agence France-Presse
Sofia

The European Union’s top official launched a stinging attack Wednesday on President Donald Trump, slamming his “capricious assertiveness” and saying the US leader acted more like an enemy than a friend.

EU president Donald Tusk urged leaders meeting in Bulgaria to form a “united European front” against Trump’s withdrawal from the Iranian nuclear deal and his move to impose trade tariffs on Europe.

Tusk even compared the US administration to Europe’s traditional foes Moscow and Beijing as he launched his broadside before a dinner of the 28 leaders in Sofia where they discussed the issue.

“Looking at the latest decisions of President Trump, someone could even think with friends like that, who needs enemies,” Tusk told reporters.

“But frankly speaking, Europe should be grateful to President Trump, because thanks to him we have got rid of all illusions. He has made us realise that if you need a helping hand you will find one at the end of your arm.”

The transatlantic rift has hijacked the agenda of a summit on Thursday at which the EU leaders will meet their Balkan counterparts in a bid to foster closer ties and keep Russia out of their backyard.

European ministers met a top Iranian official in Brussels on Tuesday in a bid to save the Iranian nuclear accord after Trump decided to pull out. Meanwhile the EU is still trying to win exemptions from tariffs on steel and aluminium exports.

Tusk called for more unity in the divided EU — which is set to lose Britain as a member next year — to face the growing challenges.

‘Capricious assertiveness’

“Besides the traditional political challenges such as the rise of China or the aggressive stance of Russia, we are witnessing today a new phenomenon: the capricious assertiveness of the American administration,” Tusk said.

“I have no doubt that in the new global game, Europe will either be one of the major players, or a pawn. This is the only real alternative.”

After the talks, a European source told AFP the leaders agreed on a “united EU approach” on the Iran deal, including continued support for the agreement if Tehran abides by it.

They also agreed to “initiate work to protect European companies negatively affected by the US decision,” which involves Washington reimposing sanctions on the Iranian nuclear programme.

“The EU will continue fighting for a rules-based international system despite recent decisions on climate change, tariffs and Iran,” the source said after the leaders met over dinner in Sofia.

British Prime Minister Theresa May, German Chancellor Angela Merkel and French President Emmanuel Macron — whose countries are the signatories to the Iran deal along with the US, Russia and China, gave their views on the situation to their colleagues, he said.

Merkel however said earlier that Europe had no choice but to stick with the ties that have bound it to Washington since World War II.

“Despite all the difficulties we have these days, the transatlantic relations are and will remain of outstanding importance,” Merkel told the German parliament.

‘Gun at its head’

On Trump’s decision to impose tariffs on steel and aluminium imports, a move the EU has warned could spark a trade war, the leaders also presented a united front.

They backed plans to offer concessions if the US gives Europe a permanent exemption from the tariffs, but added that the “EU will not negotiate with a gun at its head”.

Tusk said earlier that it was “absurd to even think that the EU could be a threat to the US” in terms of trade.

Behind their message of unity and firmness, some member states seem open to tolerating limited quotas from the United States on metals imports while others want a harder line, diplomats said.

The EU leaders were also due to discuss the deaths of dozens of Palestinians in Gaza after Trump moved the US embassy to Jerusalem, in another move that the Europeans had strongly opposed, but there were no details on that discussion.

The EU has called for “utmost restraint” after Israeli forces killed 60 Palestinians during clashes and protests along the Gaza border against the opening of the US embassy in Jerusalem, in the conflict’s bloodiest day in years.

But there are divisions over the embassy move within the EU itself, with the Czech Republic, Hungary and Romania having recently blocked an EU statement slamming the US decision.

Wednesday’s dinner will be followed by a summit on Thursday where EU leaders will meet their counterparts from the Balkan nations of Albania, Bosnia, Kosovo, Montenegro, Macedonia and Serbia.

The oldest (and youngest) Asian leaders

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The oldest (and youngest) Asian leaders

ASEAN+ May 17, 2018 06:42

By DataLEADS
Asia News Network
NEW DELHI

Malaysian leader Mahathir Mohamad has become world’s oldest head of state. How does he compare to other Asian leaders?

Although the world has seen old elected leaders agism has always been a rallying point for politicians. During the campaign for US election there were lot of references to Trump’s age making him unfit to hold the highest position.

While the opposition did refer to age as a factor in making him unsuitable for the position, Malaysians elected the oldest leader in history to head the country. Mutahir Muhammad aged 92 is 21 years older than US President Donald Trump and twice the age of Canadian Prime Minister Justin Trudeau.

Experience in politics seems to be a key deciding factor for Asians to elect leaders thus most of the leaders are on the higher side of age. Philippine President Rodrigo Duterte 73 years of age is the most controversial president of the country. He has been attracting lot of criticism owing to his undiplomatic remarks and his war on drugs. Lao Prime Minister Thongloun Sisoulith is 72 years of age. He has been in power since 2016 and has held significant political positions before being the prime minister of Laos.

Sheikh Hasina, 70 is the prime minister of Bangladesh. Her father led the liberation war of Bangladesh and continuing his legacy she has stood firmly against two military regimes. She is one of the 100 influential people on the list of Time magazine. While she has received lot of recognition for accepting Rohingya refugees, she has also faced criticism within her country for mauling dissent.

Ranil Wickremesinghe was the youngest cabinet minister in Sri Lanka. At age 69 he is the tenth prime minister of the country.

Indian Prime Minister Narender Modi (67) is the star attraction. He is considered as one of the most famous political leaders that the country has seen. Although the minority rights violation has increased under his rule, his popularity seems anything but diminishing.

At 66 the leaders of South Korea, Myanmar, Nepal and Singapore are the same age.

Cambodian PM (65) Hun Sen has been in power since 1985 and is one of the longest serving Prime minister in the world. While he has been responsible for pulling the country out of the devastation caused by Khmer Rouge, he is also seen as a very authoritarian leader with a poor human rights record.

Xi Jingping (64), the leader of the ruling Chinese Communist Party has been one of the most influential leaders of the country with his name mentioned in the constitution, an honour reserved for  after Mao Zedong until now.

Hailing from a political family Shinzo Abe (63) is on the fourth term of being Japan’s highest leader. Under his leadership and economic policies known as “Abenomics” Japan managed to pump billions of dollars into its economic growth. The controversial Thai army chief Prayut Cha Chan (64) became the prime minister after the dramatic coup after which the country did not see elections.

While Brunei Sultan Haji Hassanal Bolkiah Mu’izzaddin Waddaulah (51) is youngest in age, Bhutan PM Tshering Tobgay (52) is the youngest elected leader in the region. The Harvard educated leader is the second elected prime minister of the country.

Fiscal policy ‘key to growth if rate rises’

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Fiscal policy ‘key to growth if rate rises’

ASEAN+ May 17, 2018 01:00

By THE JAKARTA POST
ASIA NEWS NETWORK
JAKARTA

THE CENTRAL BANK hinted at the Bank Indonesia (BI) Board of Governors meeting yesterday at increasing its benchmark seven-day reverse repo rate in trying to maintain the rupiah exchange rate at its reasonable value.

Should the decision be made, it would end the era of low interest rates that has become one of the country’s economic growth-pushing factors.

Finance Minister Sri Mulyani Indrawati said the fiscal policy would be important in maintaining economic growth amid the withdrawal of foreign funds from Indonesia as an impact of the “normalisation” of the world’s economy.

“Our challenge is fiscal. While we have to collect taxes, we have also to offer incentives,” Sri Mulyani said at the annual bankers’ gathering, themed “Fiscal Policy Reform as a Stimulus to Boost the Economy”.

She added that after revising a tax holiday regulation, which was mainly for investments starting from 500 billion rupiah (US$35.49 million), the government was currently revising a regulation on tax allowances for investments below 500 billion rupiah.

“[The revision] of a regulation on tax allowances is in the finalisation process. Investors do not need to worry about taxes. They have a long time [until the government collects taxes],” Sri Mulyani added as quoted by kontan.co.id. Under the newly issued Finance Ministry Regulation No 35/2018, the government offers simpler procedures and more attractive incentives.

Old companies can now obtain a tax holiday for expansions, as well as a tax deduction rate of 100 per cent for five to 20 years, and more business players are now eligible for tax incentives.

1MDB: JV with PetroSaudi decided hastily

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1MDB: JV with PetroSaudi decided hastily

ASEAN+ May 17, 2018 01:00

By THE STAR
ASIA NEWS NETWORK

1MALAYSIA DEVELOPMENT BHD (1MDB) investment decisions in joint-venture companies involving PetroSaudi were made within eight days, without a detailed assessment process and before the issues or conditions raised by the 1MDB Board are resolved, the declassified auditor-general’s report on 1MDB released on Tuesday stated.

Joint-venture investments by controversial 1MDB with companies abroad began in 2009 with the intention of exploring investment opportunities overseas.

The first joint venture was signed between 1MDB, PetroSaudi Holdings (Cayman) Ltd and 1MDB PetroSaudi Ltd on September 28, 2009.

1MDB holds a 40 per cent equity interest with an investment contribution of US$1bil in cash while PetroSaudi Holdings (Cayman) Ltd holds 60 per cent equity stake in the form of assets worth at least US$1.5 billion.

In the report, it was noted that there were four different companies registered under the name of PetroSaudi but the proposed investment paper submitted to the Board of Directors of 1MDB did not include such information.

The asset valuation report prepared by Edward L. Morse was submitted on Sept 29, 2009, which was the same date of confirmation of his appointment by 1MDB Chief Executive Officer, and received one day after the JV agreement was signed.

The assessment report takes into account assets on oil exploration and production rights in Turkmenistan and Argentina.”

An assessment was implemented on PetroSaudi International Ltd’s assets despite the JV agreement clearly stating that the company owning all the rights and interests of the agreed assets for the joint venture project is PetroSaudi International Cayman, the report said.

Besides that, the JV agreement contained clauses that lacked in guarding the interests of the company.

Among them was an advance received by 1MDB PetroSaudi Ltd amounting to US$700 million from its parent company, PetroSaudi Holdings (Cayman) Ltd on Sept 25, 2009, to be fully repayable on or before Sept 30, 2009.

As of September 30, 2009, a total of US$1 billion (3.487 billion ringgit) was transferred by 1MDB into two separate accounts, with US$300 million into the joint venture account and US$700 million into another company’s account with the aim of repaying the advance taken by the joint venture company.

Board approval of 1MDB was also not obtained before making the US$700 million payment into the account of the other company, the report stated.

AEC Feed

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ASEAN+ May 17, 2018 01:00

By Asia News Network

Keppel sells more rigs to Borr Drilling for S$1bn

KEPPEL Offshore & Marine (Keppel O&M) has, through its wholly owned subsidiary Keppel FELS, inked a master agreement to sell five jack-up rigs to Oslo-based drilling contractor Borr Drilling for around US$745 million (S$1 billion).

These are existing jack-up rigs which are being built by Keppel FELS to the KFELS B class designs, said Keppel in a statement yesterday. This price excludes any down payments made by the original owners.

The master agreement is contingent on certain conditions, including Borr Drilling raising sufficient funds. Borr Drilling will pay a first instalment of US$288 million within 20 business days of the effective date of the master agreement and the remaining amounts are payable within five years from the delivery date of each individual rig.

The rigs are scheduled to be delivered from the fourth quarter of 2019 to the fourth quarter of 2020, with one rig to be delivered next year and four rigs in |2020. – The Straits Times

Largest co-working space in Philippines to open in June

Spaces, an Amsterdam-born firm, will open in June the largest co-working space in the Philippines, where the demand is “exceptional,” a top official said.

In a press briefing yesterday, country manager Lars Wittig said that they are opening the company’s first site in the Philippines with a 500-square meter co-working space.

The first and largest international provider of this type of office space, Spaces will offer competitive rates to both start-ups and Fortune 500 companies, Wittig said.

Spaces, the sister company of world-renown office space provider Regus, will be located at the World Plaza in Bonifacio Global City, Taguig, where it would cover the more than 3,000 square metres.

This includes the co-working space, which Wittig calls a “community hall.”

“Co-working space is a term of yesterday. What we are building is a community,” he said, noting that it would even have Wild Flour Bakery + Cafe Corp. serving Spaces’ patrons.

According to a separate statement, the company said the area would have more than 400 workstations, with |ample space for private meetings in offices and meeting rooms. – Philippine Daily Inquirer

Widodo sees off first export with giant ship to US

Indonesian President Joko Widodo officiated at the departure of the first CMA CGM Tage container ship of exports from the Jakarta International Containers Terminal (JICT) at Tanjung Priok in North Jakarta.

The CMA CGM Tage ship, which has a capacity of 10,000 twenty-foot equivalent unit (TEU) containers, will serve direct calls from Jakarta to Los Angeles, the United States.

“We loaded the ship with 4,300 TEU containers. It is a large number. With the direct call, the transporting of goods is more efficient,” Widodo said as reported by tribunnews.com.

The ship has a gross Tonnage (TG) of 95.263 and is 347 meters long. It is one of several massive ships that regularly |dock at Tanjung Priok port. – The Jakarta Post

Mitsubishi, partner plan $1 bn homes

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Mitsubishi, partner plan $1 bn homes

ASEAN+ May 17, 2018 01:00

By PHILIPPINE DAILY INQUIRER
ASIA NEWS NETWORK
MANILA

PROPERTY developer Century Properties Group Inc (CPG) and Mitsubishi Corp yesterday signed a deal to create a joint venture corporation that will bring to the Philippine property market more than US$1 billion in affordable homes over the next five years.

Seeking to cover part of the country’s huge backlog of 6.6 million housing units, the new venture plans to launch about 15 new housing projects equivalent to around 33,000 housing units within the next five years.

Each unit will be priced between 1 million pesos and 6 million pesos, targeting middle-income first time homebuyers. Overall, the deal will deliver homes worth more than 57 billion pesos.

The joint venture company, to be named Phirst Park Homes, will be incorporated after the joint venture agreement has secured clearance from the Philippine Competition Commission. The projects will be launched in key locations outside of Metro Manila under a new brand called PHirst Park Homes.

Capital expenditures for the first five years are estimated at around 10 billion pesos. Under the terms of the agreement, CPG will subscribe to 60 per cent and Mitsubishi to 40 per cent of the authorised capital stock equivalent to 5 billion |pesos over the same five-year horizon.

From a return on equity point of view, deepening their affordable housing partnership is seen beneficial for both CPG and Mitsubishi because of the faster turnaround time and higher margins from this type of development compared to high-rise residential developments.

“Our joint venture partnership with Mitsubishi Corp solidifies Century’s plans of diversification and strengthens its positioning not just in the affordable housing |category, but in the broader first home buyer market,” Century Properties chairman Jose Antonio said.

“We thank Mitsubishi for its continued trust and confidence in Century Properties. Our relationship has certainly been fruitful to date with our two projects with them – both for the office building in Century City, and in Tanza, Cavite to date. It is but natural to take it to the next level.”

“The big housing demand, coupled by the natural and good chemistry between Century Properties and Mitsubishi Corp., led us to a great milestone today – the signing of an agreement to form a joint venture company for affordable housing.

Mitsubishi general manager of Asean urban development department Hidetoshi Suzuki said: “This is not just for one project but for a long-term relationship that will make significant contributions in addressing the housing backlog in the Philippines.”

Lao govt urged to hasten privatisation of ailing state units

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Lao govt urged to hasten privatisation of ailing state units

ASEAN+ May 17, 2018 01:00

By VIENTIANE TIMES
ASIA NEWS NETWORK
VIENTIANE

LAO economists have urged the government to accelerate the privatisation of state enterprises that have been underperforming, as part of measures to improve its financial position.

Economists at the Lao National Economic Research Institute made the recommendation in their March economic update, aiming to help the government find ways to reduce its subsidisation of state organisations.

Another option open to the government to improve its financial position is to turn underperforming state enterprises into state-private joint ventures. This would enable the government to access new sources of development funding.

According to a report from the Ministry of Finance, the government is facing a big challenge in collecting sufficient revenue to meet its expenditure needs. Over the first quarter of this year, the government was able to collect only 20 percent of its target figure.

In addition, public debt is rising as the country borrows money to finance infrastructure development. This poses a big challenge for the government’s attempts to stabilise national economic development, according to reports from the World Bank and IMF.

Economists believe that if the government could reduce its subsidy to underperforming enterprises or sell its shares to the private sector, its financial position would be better. The government would then have more funds at its disposal to finance its priority projects.

According to a report from the Ministry of Planning and Investment, there are about 135 state-owned enterprises in Laos with more than US$5 billion in assets. In recent years, the government sold its shares in major state-owned enterprises such as BCEL and EDL-Gen to the private sector.

The government is now planning to sell its shares in Lao Airlines so the national flag carrier can operate more efficiently and become more innovative and competitive.With regard to state financial sector reform, economists said the government should continue to identify sustainable sources of revenue. At present, a large proportion of the government’s revenue comes from the resources sector, such as mining, whose reserves will one day be exhausted.

As part of this reform, the government should also transform ways of balancing the budgets of local administrations.

Instead of providing financial support to local administrations that are facing a budget deficit, the government should encourage local authorities to maximise the use of their resources to generate revenue so they can become self-sufficient, the economists said.

They said the adoption of new financial management methods would not only strengthen the government’s financial position but also reduce its reliance on external funding and assistance.

The economists also suggested that private and state enterprises should be encouraged to adopt electronic transaction methods and pay taxes electronically. This would help the government to prevent further leaks of state revenue.

With regard to state financial sector reform, economists said the government should continue to identify sustainable sources of revenue. At present, a large proportion of the government’s revenue comes from the resources sector, such as mining, whose reserves will one day be exhausted. As part of this reform, the government should also transform ways of balancing the budgets of local administrations.

Instead of providing financial support to local administrations that are facing a budget deficit, the government should encourage local authorities to maximise the use of their resources to generate revenue so they can become selfsufficient, the economists said.

They said the adoption of new financial management methods would not only strengthen the government’s financial position but also reduce its reliance on external funding and assistance.

The economists also suggested that private and state enterprises should be encouraged to adopt electronic transaction methods and pay taxes electronically. This would help the government to prevent further leaks of state revenue.