Fine. The owner and the captain of M/B Kim Nirvana have been taken into custody and charged with murder. Global media dutifully reported the action of Philippine authorities.

Why the case filed is for “murder” and not the more sustainable “negligence resulting in homicide” makes one suspicious. The more severe charge filed was indeed dramatic — although it is rather likely to be dismissed eventually by some court because premeditation could not be established.

Nevertheless, the early filing of charges does succeed in focusing culpability on the ship owner and the captain. It takes away focus from the failure of the regulatory bodies that allowed such a vulnerable vessel to sail in the first place.

This is the real scandal here. Nowhere else in the world will a wooden-hulled double-decker outrigger be allowed to sail in the open sea — with over 178 passengers on board.

The company that owned this ill-fated boat was registered only recently. Why did the Maritime Industry Authority (MARINA) issue this boat a Certificate of Convenience?

Engr. Elson Ramirez, president of United Filipino Seafarers, asks some pretty disturbing questions.

Did the naval architects and maritime safety officers of MARINA conduct an inclining experiment to test the stability of this vessel? How did the naval architects of MARINA determine the load water line of this vessel? Who allowed this vessel to ply in the open sea when regulations are clear that outriggers are allowed to operate only three miles from the shoreline?

Whoever allowed this vessel to operate obviously ignored the provisions outlined in MARINA Memorandum Circular No. 190 (Series of 2003). This document called for the phasing out of all wooden hulled ships in order to ensure safety of conveyances and accelerate the modernization of our domestic shipping industry.

Ramirez also points out that since June 2013, his group has not monitored any move by MARINA to suspend any shipping company or any sea-going vessel for failing to comply with the safety regulations outlined in Memorandum Circular 190. He fears the MARINA has been negligent in its duties. The case of this wooden hulled outrigger says that.

From just looking at the photographs, Ramirez says this boat should not have been allowed to sail, much less certified as a public conveyance. It should have been junked at first sight.

The leader of the 45,000-strong maritime industry labor federation says there are other culprits that ought to be charged here, not just the owner and captain.

The MARINA is, of course, an agency under the DOTC, arguably the sloppiest department in all of government.

Illicit

A lively debate has been opened up around the effects of raising excise taxes, the actual revenues government gained and the consequent surge in illicit tobacco trade.

Earlier a report was put out by the International Tax and Investment Center (ITTC) and Oxford Economics (OE) attempting to measure the rise of illicit tobacco flows in 14 economies in Asia and the Pacific. This report if often referred to as the nAsia-14 Illicit Tobacco Indicator 2013.

The study was undertaken in the face of recent sharp increases in excise taxes on tobacco products. Those sharp increases in excise taxation was expected to encourage illicit tobacco flows.

Illicit tobacco refers to smuggled or counterfeit products intending to skirt around the fiscal penalties of “sin taxes.” The sharp increase in excise taxes, for its part, was intended both as a health and as a fiscal measure. It was meant to discourage tobacco use by forcing up costs and at the same time improve government revenue flows.

The “Asia-14” report seems to suggest that illicit tobacco flows sharply increased, undermining the two-pronged goals of “sin taxes.” Illicit tobacco flows encouraged more smokers and undermined tax collection.

Last May, however, a second report sharply criticized the “Asia-14” study for its many flaws in methods of study as well as data used. The critique was prepared by Dr. Hana Ross, professor and principal research officer of the Economics of Tobacco Control Project at the University of Cape Town.

Ross’ critique, after pointing out the flaws of the first report, argued rather contrary findings. It found out that sharp increases in excise taxation did achieve the twin goals of reducing the number of smokers and higher revenues for government. Scanning a large amount of data, the Ross report estimates illicit tobacco use is marginal. The share of smuggled cigarettes is no more than 1.8% of total consumption.

That should be happy news for advocates of “sin taxes.”

No!

Imagine throwing a life vest at a drowning man and he rejects it. Adamantly.

By a two-to-one vote, the Greeks have rejected the austerity program prescribed by the rest of Europe to enable the country to climb out of its debt crisis – although it might take them about five decades to do so. Preceding surveys suggested a close vote. The actual count showed a landslide.

The results of the referendum certainly won’t solve Greece’s financial troubles. If at all, it will make things worse – possibly leading to a Greek exit from the Eurozone.

Stock markets around the globe reacted promptly — and sharply. Trillions of dollars in equity value will likely be swept off the boards. The Greek people will likely endure weeks and months without functioning banks. The outlook is in no way encouraging.

This is what happens when a nation, refusing to accept responsibility for its massive indebtedness, falls under the sway of leftwing demagogues. We will see in the next few weeks how terrible a financial meltdown could be.

Source: www.philstar.com/opinion