Beware this Chinese company

BY DUCKY PAREDES
MALAYA

 ‘The BIR should exercise extreme caution in qualifying Huagong Tech to participate in its bidding process for the agency’s new cigarette tax stamp system.’

IN preparation for the expected increase in excise taxes on cigarettes, our revenue officials are looking at modern laser scanning systems to monitor the excise stamp taxes due on tobacco products. Hopefully, they will choose the supplier carefully. As we hear it, the low bidder is a Chinese company.

Huagong Tech Co. Limited is a company with a history of corporate malpractice, even to being suspected of having corporate corruption issues earlier this year. The BIR should exercise extreme caution in qualifying Huagong Tech to participate in its bidding process for the agency’s new cigarette tax stamp system.

Otherwise, there goes the Matuwid na Daan. We may find that government funds are wasted on obsolete or unreliable technology bought cheap, but totally useless when finally delivered by the supplier.

Originally put up 13 years ago, Huagong Tech based in Wuhan, China was listed on the Shenzhen Stock Exchange in 2000, Huagong Tech specializes in laser processing systems and laser holographic anti-counterfeiting products.

Last July, Ma Xinqiang, the company’s chairman was removed from his position on suspicions of insider stock trading.

In early June, the company released a list naming several of its managers and shareholders who were accused of violating the country’s securities laws. The list included Luo Xiaoming, its independent director, and Liu Wei, its secretary to the chairman of board. Luo resigned from his post at the company on June 15.

Reports indicated that Chinese officials had already met with BIR Commissioner Kim Henares to signify their intention to compete with the merged entities Philip Morris Fortune Tobacco Corp.(PMFTC) for the provision of a reliable excise stamp tax technology.

Allowing the substandard Chinese technology could cause more problems and delays for the BIR’s cigarette tax stamp system, a controversial project that has been several years in the pipeline.

Aside from being fairly new to the business, Huagong, it must be stressed, does not manufacture the same stamp tax technology in its home country since China does not adopt the system.

The bidding followed the government’s decision to no longer accept build-operate-transfer (BOT) proposals for tax stamps. Some government members think BOTs are more suitable for infrastructure projects like roads.

Aside from the Chinese proposal, there is also an offer from Philip Morris and Fortune Tobacco (PMFTC) for its self-monitoring digital marking system.

However, BIR Commissioner Kim Henares has announced that the shortlist of suppliers may be limited to those which do not manufacture tobacco products. This could mean that PMFTC’s proposal is no longer being considered.

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Reader Marecelo Tecson writes long letters to government officials, copies of which he often sends me. In a recent one arguing that the Oil Price Deregulation Law actually gave us more expensive fuel, we find this undisputed evidence from the audits of the Oil Industry undertaken by government:

• On gasoline prices: “(1) Under regulation as of 1998: Percent margin on industry sales: 23% of P11.62 price per liter = P2.67 margin per liter.”

• “(2) Under deregulation as of 2005: Percent margin on industry sales: 16% of P31.18 price per liter = P4.99 margin per liter.

• “(3) Under deregulation as of 2008: Percent margin on refiner sales:18% of P44.45 price per liter = P8.00 margin per liter.”

While the margin decreases as a percentage of the price, with the price doubling and tripling, the oil companies are actually making more on every liter. Of course, the main reason why deregulation did not work is that the world market price of oil went crazy.

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Todd Akin is a Republican Congressman who is running for the U.S. Senate. Recently, he caused a stir when he said this to the media in answer to a question:

“It seems to me, from what I understand from doctors, that’s really rare,” Akin said, referring to conception following a rape. “If it’s a legitimate rape, the female body has ways to try to shut that whole thing down. But let’s assume that maybe that didn’t work or something, I think there should be some punishment, but the punishment ought to be of the rapist, and not attacking the child.”

What has this to do with the Philippines? Just to show that when it comes to matters about reproduction and such, specially when it comes to how the law and religion impact on the issues, there are just as many dumbos in other countries as there are dealing with the Reproductive Health legislation that is being discussed in our legislature at the moment!

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I have been an Apple user ever since I discovered that its computers were sturdier that the IBM (which were mostly fake IBMs locally assembled machines). Using those local IBMs, I would often even lose what I was working on. As a journalist, only the Apple Macintosh OSX worked for me.

Recently, in a US court, Apple won over a billion dollars in the US after it sued Samsung for infringing on Apple’s patents. In Korea, where Samsung has its corporate headquarters, a court also heard an infringement case filed by Samsung. The Korean court found both Apple and Samsung guilty of patent infringement. It banned some Apple products from Korea and also some Samsung products.

The Korean judge banned the sales of Apple’s iPhone 4 and iPad 2. Also banned were Samsung’s Galaxy S and Galaxy S II.

This will have an effect on Android products in general and specifically on the smartphone and tablet markets.

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Readers who missed a column can access www.duckyparedes.com/blogs. This is updated daily. Your reactions are welcome at duckyparedes@yahoo.com