February 4, 2014 Edition

An international advocacy group said the Philippines lost $410 billion in illicit transactions. The $133 billion in outflows and $277 billion in inflows mean so much trade goes on unreported. Global Financial Integrity managing director Tom Cardamone said the country has “continually ranked very high” in terms of illicit money flowing in and out of it over the last several years. Cardamone said the illicit transactions needed to be addressed in the immediate term, adding, “It’s unclear where the economy is going to go from here with that kind of tax loss.” He also said there appears to be a correlation between levels of corruption and levels of illicit flows. Since 1995, the Philippines has shown a “steady decline in the control of corruption.” Poorly-governed countries also tend to have a large underground economy. In the Philippines, this constitutes about 39% of the GDP.

Read the full story on Rappler.

The United States warned against moves to stage a military coup in Thailand as anti-government protesters vowed to press on with their fight after a disrupted weekend election. The US said it was “concerned that political tensions” were challenging the divided kingdom’s democracy. Thailand’s protest-plagued elections have ushered in a new chapter of political uncertainty that experts say leaves the embattled government increasingly vulnerable to court intervention or a military coup. “We certainly do not want to see a coup or violence,” US State Department spokeswoman Jen Psaki said. Defiant demonstrators pledge to continue weeks-long street rallies aimed at ousting Thai Prime Minister Yingluck Shinawatra. There is little sign of an end to the deadlock, with the ruling Puea Thai party braced for court challenges against the poll.

Read the full story here and here.

Despite a relatively peaceful election, tourists in Thailand are advised to avoid rally sites as anti-government protests are still expected in the capital Bangkok, which remains under a state of emergency. CNN reports the biggest issue for tourists is mobility, with six major intersections closed off by protesters. Some of the protests are also in popular tourism areas near major hotels. Tourists are advised to leave for the airport four hours before their flight. Thailand’s Ministry of Tourism has also set up assistance centers at the country’s two major airports.

Read the full story on CNN.

The European Union said corruption is costing the EU economy at least 120 billion euros annually. In a BBC report, EU Home Affairs Commissioner Cecilia Malmstroem said the extent of the problem was “breathtaking,” with the cost roughly equivalent to the bloc’s annual budget. The Commission studied corruption in all 28 EU member states, the first time it has done such a survey. In Croatia, the Czech Republic, Lithuania, Bulgaria, Romania and Greece, between 6% and 29% of respondents said they had been asked for a bribe, or had been expected to pay one, in the past 12 months. There were also high levels of bribery in Poland, Slovakia and Hungary, where the most prevalent instances were in healthcare. The best results were from the UK, where only five people out of 1,115 – less than 1% – said they had been expected to pay a bribe. The BBC quoted Malmstroem saying corruption was eroding trust in democracy and draining resources from the legal economy. The report had its share of controversy, as some countries criticized the European Commission for interfering in areas which they believed were none of its business.

Read the full story on BBC.

The Philippines is among the countries in Southeast Asia where tobacco companies enjoy unregulated influence over policies affecting their industry. With a score of 71, the Philippines ranks 3rd in the Tobacco Industry Interference Index. The Philippines follows Indonesia (78) and Malaysia (72). Following the Philippines are Cambodia (68), Lao PDR (61), Thailand (51) and Brunei (29). This indicates the Philippines is failing to implement a global treaty on tobacco control, which seeks to limit interference by tobacco industry in the implementation of health policies. The index found that there is a high level of unnecessary government interaction with the tobacco industry, like corporate social responsibility (CSR) activities and participation in policy development.

Read the full story on Rappler.

The Philippines’ National Bureau of Investigation or NBI arrested alleged rice smuggler Davidson Bangayan Monday, right after a Senate hearing on his illegal operations. This came after the Senate agriculture and food committee held Bangayan in contempt for lying that he is not David Tan. Committee chair Cynthia Villar said the panel also asked the foreign affairs department to cancel Bangayan’s passport. The NBI used an existing arrest warrant for an electricity pilferage case, where Bangayan is one of the 3 accused. He filed bail soon after. Bangayan is accused of using farmers’ cooperatives as fronts to import rice under the agriculture department’s Minimum Access Volume program. The scheme is illegal because it negates the purpose of the program which is to help farmers. During the hearing, Davao City Mayor Rodrigo Duterte confirmed Bangayan is the alleged big-time rice smuggler. The mayor holds up a photo to identify Bangayan as the face provided by Davao’s intelligence community. He also threatens the alleged smuggler. “I said, starting now, for all you who come to town carrying smuggled goods, I’ll shoot all of you.”

More of the story here and here.

On January 25, the government and the Moro Islamic Liberation Front or MILF signed the final annex that paves the way for a peace deal to end decades of fighting in Mindanao. Both sides now enter the crucial phase of ground implementation. In an interview with Rappler, government peace panel chair Miriam Coronel-Ferrer said the next challenge is to create terms of reference for the different bodies involved in the implementation of the agreement and fast-tracking the creation of the Bangsamoro Basic Law.  Hours after the final annex was signed, fighting broke out between the military and members of the MILF breakaway group, the Bangsamoro Islamic Freedom Fighters or BIFF. Ferrer noted dealing with other groups is also part of the challenges they need to hurdle. She said setting the foundation for lasting peace in Mindanao will take some time but peace panel member Senen Bacani adds it’s important to address immediate needs as a short-term goals like potable water and electricity. Panel member Yasmin Lao says one of the key achievements is a recognition of the Bangsamoro identity. “From a derogatory Moro to a Bangsamoro people with their dignity, history, it’s already a big big achievement in itself.”

Read the full story on Rappler.

Facebook celebrates its 10th anniversary, but the world’s biggest social network now finds itself adapting to an aging user base. From its initial core base of teens and university students, Facebook is now widely used by people in all age groups. Pew Research Center says 57% of the adult population in the United States use Facebook. While it’s used by 89% of online adults in the 18-29 age group, it is also used by 60% in the 50-64 age category and 45% of those over 65. Analysts say Facebook has to shift strategy for an aging user base to generate revenue and profit. Lou Kerner of the Social Internet Fund said, “You can’t be the cool place forever. One of two things happen to companies when they’re done being cool. They either go away, or they transition to becoming more of a utility. And Facebook is very successfully doing the latter.”

Read the full story on Rappler.

As Facebook turns 10, Pew Research comes out with new data on the dominant social networking platform. Pew says adult Facebook use is intensifying: 64% of Facebook users visit the site on a daily basis, up from 51% of users who were daily users in 2010. It also says among teens, the total number of users remains high, adding they are not abandoning the site. In an article on its website, Pew says users dislike certain aspects of Facebook, but “fear of missing out” on social activities isn’t one of them, with oversharing and posting of personal information as top complaints. Top reasons for using Facebook include appreciatING photos and videos from friends, the ability to share with many people at once, updates from others and humorous content. Other aspects such as getting the news or receiving support appeals only to a modest audience. Among adult Facebook users, the average number of friends is 338.  Younger users tend to have larger friend networks: less than one third of 18-29 year old users have more than 500 friends.

Read the story on Pew Research.

Oscar-winning actor Philip Seymour Hoffman died of a suspected drug overdose Sunday. Fans and fellow actors mourn the passing of the critically acclaimed actor. In a report, CNN calls Hoffman “Hollywood royalty,” and lists five reasons why he was adored. Although Hoffman starred in many beloved movies and earned a name for himself as a prolific and talented actor — both on screen and on the theater stage — he didn’t lose his reputation as a regular guy. Hoffman was often seen taking the subway from his New York apartment, or walking his kids to the public school. He also didn’t shy away from supporting roles, playing unlikeable characters that made him memorable: his role as Freddie Miles in “The Talented Mr Ripley” and the game master in the popular “Hunger Games” film. Hoffman may have accomplished a lot in his years in the business, but he never forgot his roots: when he accepted his Oscar for best actor in “Capote,” he thanked his mom for raising him and his siblings.

Read the full story on CNN.