PH faces transparency test by independent OGP team

TRANSPARENCY TRUE OR FALSE? Real or reel?

Is the Aquino administration fully committed in theory as much as in practice in fulfilling its promises to achieve transparency, accountability, and good governance? But what about its failure to lead the passage of the Freedom of Information Act in the 15th Congress?

This March, the answers will be known in part as the Philippines comes under review by a team from the Independent Reporting Mechanism (IRM) of the Open Government Partnership (OGP), a network of 57 nations (governments and civil society) that was initiated by US President Barack Obama in 2010.

In December 2011, the Aquino government submitted the Philippines’ OGP Action Plan titled “Institutionalizing People Power in Governance To Ensure Direct, Immediate and Substantial Benefits to the Poor.” It pledged to implement most of its program commitments until December 2012.

Yet it seems like the govenrment has some catching up to do in regard to the pace and progress of promises it has pledged to fulfill under the OGP framework.

For one, the government — represented in the OGP by Budget and Management Secretary Florencio “Butch” Abad — has not yet convened a steering committee of civil society leaders, as it had promised to do for the OGP. Abad sits in the nine-person OGP Steering Committee of government leaders.

But thus far, Abad has only convened in early 2012 an interim steering committee of three CSO representatives from groups familiar to or working closely with the DBM. The interim committee was expected to convene an assembly of CSO leaders who were supposed to elect the members of the regular CSO Steering Committee but this has not happened as of this writing.

In its OGP Action Plan, the government assured that it will “Organize a Philippine Open Governance Partnership” throughout the OGP process. It stated: “During the preparatory phase of this Action Plan, the Government will organize a Philippine Open Governance Partnership that will be tapped in plotting open government reforms in the medium-term, in monitoring performance and in surfacing broader areas where interventions need to be escalated. Government will engage a broad spectrum of national and local CSOs, business groups, academe and other stakeholders; as well as reach out to the Legislature, the Judiciary, Constitutional Bodies and Local Governments for them to take part in open government endeavors.”

Apart from the Philippines, seven other countries will be assessed by the IRM’s panels this year: Brazil, Indonesia, Mexico, Norway, Tanzania, United Kingdom, and United States.

The OGP’s Independent Reporting Mechanism is “a multilateral initiative that aims to secure concrete commitments from governments to promote transparency, empower citizens, fight corruption, and harness new technologies to strengthen governance.”

To become and remain eligible as OGP members, participating countries “must embrace a high-level Open Government Declaration, deliver a country action plan developed with public consultation; and commit to independent reporting on their progress going forward through the… IRM.”

The OGP said, “the IRM is a key means by which all stakeholders can track progress and OGP’s impact within participating countries. By tracking progress, it promotes strong accountability between member governments and citizens.”

“The IRM works primarily through annual independent assessment reports for each OGP participating government. Each report will assess country on development and implementation of action plans, progress in fulfilling open government principles, and will develop technical recommendations,” the OGP said.

A panel of “well-respected individuals, the International Experts Panel (IEP) directly oversees the IRM. The independent reports “will assess implementation of the commitments adopted by OGP participating governments in their country action plans.. with emphasis on development and implementation of action plans,” including:

* “The extent to which the action plan and its commitments reflect, in a country-specific way, the OGP values of transparency, accountability, and civic participation, as articulated in the OGP Declaration of Principles and the Articles of Governance.

* “Wherever relevant, IRM reports may reflect actions or measures relevant to the country’s participation in OGP that were not originally reflected in the action plan.

* “The degree to which OGP governments are following OGP process requirements and guidance in the development and implementation of their plans, in keeping with the (OGP) Articles of Governance.

* “Progress made on the articulation and implementation of each commitment and the plan as a whole, according to milestones laid out by the government in its action plan.

* “Technical recommendations regarding how countries can improve implementation of each commitment and the plan as a whole, as well as how to better realize the values and principles of OGP, with specific reference to the OGP Articles of Governance and the OGP Declaration of Principles.”

Cyberscouts, restrictive laws choking cyberspace in Asia – CPJ

THE PHILIPPINES is well on her way to joining a roll of dishonor of nations in Southeast Asia that are restricting online freedom. That is, if President Aquino should insist on enforcing the much-criticized Cybercrime Prevention Act.

It is not a charming company at all of countries in the region that are now infringing on freedom of expression in cyberspace through national security-hinged laws, judicial crackdown, surveillance and censorship.

These are the findings of a fresh report, In Asia, Three Nations Clip Once-Budding Online Freedom,” by Shawn W. Crispin, senior representative for Southeast Asia of the Committee to Protect Journalists (CPJ).

In particular, Thailand, Malaysia and Vietnam — “countries that once had some of the region’s most promising online openings and vibrant blogospheres — stand out as the most egregious backsliders due to official crackdowns,” he said.

And yet, it was “through critical postings and commentaries, online journalists in the three countries had challenged officialdom’s traditional control over the mainstream media,” Crispin noted. “Their independent reporting opened once untouchable institutions and largely unaccountable politicians to more public scrutiny and criticism.”

Seeing online commentaries as “a threat to their authority,” the governments in these nations “are fighting back with a vengeance, employing increasingly harsh tactics including the imposition of intermediary liability and local data hosting requirements, and the use of underlying anti-state and national security laws to crack down on Internet freedoms,” he said.

In China, Crispin said journalists believe “Beijing’s repressive model” now seems to be serving other governments a reference. Thus, the deployment of “Internet agents,” known respectively in Malaysia, Thailand, and Vietnam as “cybertroopers,” “cyberscouts,” and “red guards,” are now “flooding online political forums with pro-government propaganda or undermine critical bloggers through ad hominem attacks.”

Nonetheless, the Philippines, Cambodia, and Singapore are charting parallel restrictive tracks. The three nations, Crispin averred, “are moving more tentatively, mostly through legal measures governing the Internet, in the same restrictive direction.”

For the here and now, “they have only partially succeeded,”because “tech-savvy reporters have made effective use of proxy servers and other technological roundabouts to circumvent state-administered blocks and maintain their online anonymity and security.

Indeed, across Southeast Asia, Crispin wrote, “governments have curtailed Internet freedoms through increasingly restrictive practices, including prohibitive laws, heightened surveillance and censorship, and threats of imprisonment on various national security-related offenses.”

“In Thailand, a court recently ruled that website editor Chiranuch Premchaiporn criminally liable for a criticism of the monarchy that an anonymous visitor had posted on her news website Prachatai. The landmark verdict, Crispin wrote, “effectively shifted the onus of Internet censorship in Thailand from government authorities to Internet intermediaries.”

Because she failed to remove the comment quickly enough — it lingered for over 20 days on Prachatai — the court ruled that Chiranuch had “mutually consented” to the critical comment.

She was acquitted of nine other charges but in this intance, Chiranuch was dealt an eight-month suspended prison term under the 2007 Computer Crime Act. This law passed in May 2012 in the wake of a military coup applies Thailand’s strict lese majeste law to online content, among other restrictions.

“While the ruling sent a stark warning to all online journalists in Thailand,” Crispin said, “it also implied that Web managers of user-generated platforms like political chat rooms, social media applications, and e-commerce hubs could also be held accountable for content posted to their sites deemed offensive to the royal family, a criminal offense punishable by 15 years in prison under Thai law.”

“The verdict,” Chiranuch was quoted as saying, “confirmed that the [Computer Crime Act] could be implemented to restrict Internet freedom by requiring intermediaries to police Internet content.” The law, she lamented, “has had direct effects on freedom of expression and free flow of information because Internet intermediaries now must practice self-censorship.”

Meanwhile in Vietnam, “pseudonymous bloggers have gravitated from domestic to foreign-hosted platforms to conceal their identities.”

Thirteen of the 14 journalists imprisoned in late 2012 were jailed “primarily for their online writings.” They include prominent bloggers Nguyen Van Hai, Ta Phong Tan, and Phan Thanh Hai, who were sentenced respectively to 12, 10, and four years in prison for online postings, Crispin reported. The judge assigned to the case ruled that the bloggers had “abused the popularity of the Internet” and “destroyed people’s trust in the state.”

Bloggers Dinh Dang Dinh and Le Thanh Tung had also been slapped jail terms to six and five years for supposedly mounting “propaganda against the state” online.

In Malaysia, “where the government tries to maintain the illusion of an uncensored Internet,” Crispin said, “curbs against online freedom have been less overt but similarly disruptive for journalists.”

“In 1996, in an effort to lure foreign investment to the Multimedia Super Corridor, a state-led information technology development project, then-Prime Minister Mahathir Mohamad and other senior officials vowed not to censor the Internet,” he recalled. “The no-censorship promise was also included in the corridor’s 10-point ‘bill of guarantees’ and the 1998 Communication and Multimedia Act.”

“Despite the Internet freedoms guaranteed under the Communication and Multimedia Act, bloggers have been detained and charged under provisions of the Official Secrets Act, the Sedition Act, and the Security Offenses Act for postings on such sensitive topics as race, religion, and official corruption. The vague national security-related laws have recently been extended to stifle online criticism of Malaysia’s royal sultans.”

In July 2012, Crispin said, blogger Syed Abdullah Syed Hussein al-Attas was briefly detained by the police under the Official Secrets Act over a series of investigative articles he posted about the sultan of the state of Johor.

In 2010, Khairul Nizam Abd Ghani, who blogs under the name Aduka Taruna, was detained under the Sedition Act for postings considered insulting to Johor state’s royal family, Crispin wrote. The blogger was acquitted in June 2012 “after state prosecutors failed to present evidence to justify the charges.”

Additionally, “Malaysiakini, the country’s leading online news portal, has been persistently singled out for harassment, both from official and anonymous sources,” Crispin said. “Days before a pivotal state election in 2011, Malaysiakini and two other news websites were hit by debilitating denial-of-service attacks of unknown origin that forced them to publish through alternative domain names and platforms.”

The CPJ’s research showed that the news portal “has also been hit by unexplained cyber attacks at least 35 times since the site was founded in 1999.”

In April 2012, Malaysia’s parliament passed an amendment to the 1950 Evidence Act “that made intermediaries liable for any seditious postings made by anonymous visitors to their online platforms or over their Wi-Fi networks.”

Crispin wrote: “The amendment threatened to ‘open the door to selective, politically motivated prosecutions,’ the U.S. government-funded Freedom House said in a September report on global Internet conditions.”

“The amendment has sent a chill down the spine of Internet users,” Crispin quoted Anil Netto, a prominent Malaysian political blogger, as saying. “It makes me more careful about moderating comments that are posted on my blog… just to be on the safe side against seditious or potentially libelous remarks.”

Crispin is a reporter and editor for Asia Times Online, and author of the 2012 CPJ report, “As Vietnam’s economy opens, press freedom shrinks.”

Facebook glitch redirected sites to error pages

Early this morning, thousands of sites that use some form of Facebook integration were being redirected to an error page on Facebook, driving all traffic away from their original site destination.

The incident happened around 9AM this morning when pages from sites and blogs are redirected to Facebook’s error page.

This also affected our blog and we caught the glitch this morning. Since we did not know what was causing the redirection, we thought it was caused by a recent plugin that we installed from yesterday. This is the reason you are seeing Fb pages instead off this blog this morning.

Apparently, this also happened to a number of other sites that uses Facebook Authentication and numerous other sites were affected as well. {via}

This incident is a good reminder that a lot of website owners and webmasters as slowly integrating some of their critical services with Facebook (like FB user login, etc) and Facebook could become a single source of problem when similar incidents happen in the future.

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Comelec rules for bloggers, Twitter and FB this election

The Commission on Election has posted new rules during the election campaign that will significantly affect bloggers and folks using Twitter and Facebook, among other sites.

Under Comelec Resolution No. 9615, the commission put forth a number of restrictions when bloggers and social media users are involved in political campaigning.

Comelec does allow people to express their opinion freely on blogs, Twitter and Facebook — “Personal opinions, views, and preferences for candidates, contained in blogs shall not be considered acts of election campaigning…

However, if you have be compensated or given special consideration, it could already be considered political campaigning:

Political advertising includes matters, not falling within the scope of personal opinion, that appear on any Internet website, including, but not limited to, social networks, blogging sites, and micro-blogging sites, in return for consideration, or otherwise capable of pecuniary estimation.

There’s also the provision on the right to reply wherein “candidates shall have the right to reply to charges published or aired against them… with the same prominence or in the same page or section, or in the same time slot as the first statement” although there was no mention of a website or blog it could also be applicable.

One other thing that the Comelec wants is that if you promote a candidate, you will have to “disclose” that you have been compensated for doing so.

With the growing number of blogs and Twitter celebrities getting paid for promoting a product of service, these implementing rules and regulations are in order. We encourage folks to read these rules to be aware of it and be familiar with the restrictions.

You can download the full copy of the rules here.

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Are you ready for Online Shopping to be taxed?

There’s been a lot of news lately about the announcement of the Bureau of Internal Revenue (BIR) to go after online sellers. This is because a lot of the ones doing purely online retail may not be applying the standard duties on sales like VAT.

Commissioner Henares has been stressing that they are looking for ways to be able to monitor and collect taxes from online retailers. For one, the usual government bureaucracy of putting up a brick-and-mortar business can be easily bypassed when you do it purely online (you can skip the building permit, mayor’s permit, etc.).

Let’s be clear first that whether it’s offline or online, generating revenue/income from selling products or services is taxable. There’s nothing new that will be introduced. It’s more like enforcing what’s already there.

The closest analogy that I can think of is jaywalking. Anybody who jaywalks can be penalized; it’s already imposed a long time ago. However, there are streets that are not monitored by MMDA so when people crosses that street, they don’t get penalized. Now, the MMDA is saying they will start monitoring those streets that people used to jaywalk all the time because nobody was looking.

Anyway, to give you a better perspective of the difference between brick-and-mortar retailing (those stores in the mall) and online selling, let’s look at an example.

Take for example the Galaxy S3. My sources tell me that the distributor cost of the unit is around Php16,000 only. If the suggested retail price is Php32,000, you subtract the 12% VAT and you are left with Php28,571 (while the Php3,429 is remitted to BIR at the end of the month).

Here’s what we think is the estimate computation:

Suggested Retail Price: Php32,990

Less:
VAT — Php3,535
Unit Cost — Php16,000

Gross Revenue: Php13,455

Less:
Operating Expenses (@ 30%): Php4,037

Income (before Taxes): Php9,418

Business Tax (30% of Income): Php2,825

Net Income: Php6,593

The amount of Php6,593 is the estimated income per unit sold if this was a regular retail store in the mall.

When we look at the same for an online store, it should look the same. The biggest difference would be the operating expenses (OPEX) which might be lower than our estimated 30%.

However, if all else is the same but we remove the tax incidence, we are looking at Php6,360 in savings. If all of these savings are passed on to the customer, then we are looking at an online price of Php26,630.

This is where the mall price and the online price differ. This is the single biggest reason why mall retailers cannot compete with the prices of online retailers.

What if the BIR was so strict and it runs after the online sellers and ask them to pay taxes? The most logical step is for the sellers to tuck those taxes into the price of the unit.

That would mean that our computation above would revert back to the highest mall price. If the online sellers want to be more competitive, they might lower their retail price a bit. They would normally get this from the savings they get from doing the selling purely online (that’s less rent, bills, etc). So instead of our 30% estimated opex, it could be just 15% (Php2,018).

They could then pass on that savings to the customer for a little lower retail price.

Then again, the online sellers would look at this situation differently. They would stick to their usual pricing, keep the little margins that they get from selling way below SRP, and pray hope that the BIR would not go after them for not declaring any sales.

Otherwise, if they abide by the norm and pay the respective dues (and at the same time stick to their competitive pricing), I don’t think there would be any income left after paying VAT and business tax. In some cases, I would even think they’d lose money altogether. This is where a lot of the resentment by online sellers come from.

Worse comes worst, the online sellers to cave in and start selling their products at almost the same price as the ones in the malls.

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