Ferdinand "Bong-Bong" Marcos Jr reaches out to supporters after filing his candidacy papers last month.
Ferdinand "Bong-Bong" Marcos Jr reaches out to supporters after filing his candidacy papers last month.
Ferdinand "Bong-Bong" Marcos Jr reaches out to supporters after filing his candidacy papers last month.
Ferdinand "Bong-Bong" Marcos Jr reaches out to supporters after filing his candidacy papers last month.

Marcos family takes another run at power


Daniel Bardsley
  • English
  • Arabic

BATAC, PHILIPPINES // The mausoleum where Ferdinand Marcos's body is on show to the public hardly has an air of grandeur, or even of dignity. It is slightly musty inside and the late president's remains look more like a waxwork, which indeed is what some guidebooks and locals suggest the supposed body actually is.

But while Marcos's resting place may fail to impress, his hometown, in the province of Ilocos Norte, remains a power base for his family. His son, Ferdinand "Bong-Bong" Marcos, 52, is a congressman for the second district of Ilocos Norte who next year hopes to win a seat in the Philippine senate. Looking to replace him in congress is none other than his mother, Imelda Marcos, 80, who became notorious internationally for collecting 3,000 pairs of shoes as first lady while many of her country's people lived in poverty.

Also searching for votes in the 2010 elections is Imee Marcos, Bong-Bong's 54-year-old sister and his predecessor in congress, who hopes to be elected the province's governor, a position Bong-Bong has previously held. There is no denying the continued fondness in which the family name is held locally, despite what many see as the wanton abuses of power of Ferdinand Marcos's 21-year rule, eight years of which were spent under martial law.

Ferdinand Marcos was accused of human rights abuses, corruption and embezzlement before being ousted in the 1986 "People Power" revolution led by Cory Aquino, the widow of Benigno "Ninoy" Aquino, an opposition leader assassinated while Marcos was in office. Cristina Bajo, who runs a shoe shop in Batac a few minutes' walk from the mausoleum and not far from a Marcos statue, is one of many local devotees.

"He was a nice person," she said. "He had so many projects. He was the only one who completed the electrification of the Philippines. He was the only person who improved all the roads and bridges. "He's an Ilocano. He's a product of Ilocos Norte so we are very proud of him." Her enthusiasm extends to Mr Marcos, who she said would garner heavy support locally in his 2010 election bid. "One hundred per cent of the Ilocos people are in favour of Bong-Bong to become a senator," she insisted.

June Racho, 40, who runs a sporting goods business and lives in the town of Vigan to the south of Batac, is another enthusiast. "With Marcos being the son of Ilocos, we feel bad about Cory Aquino [ousting Marcos as president] because people here loved Ferdinand Marcos because of what he did during his time," he said. "He made us proud to be an Ilocano. Maybe martial law was a way of preventing a bigger problem from happening. He was a dictator in the sense he gave priority to the Philippines rather than the United States or any other country. During his time the Philippines were solely managed by Filipinos."

But for Mr Marcos, becoming a senator will require him to reach beyond his home constituency, since members are elected nationally rather than provincially. His mother Imelda, 80, will just have to convince Ilocos Norte voters when she squares up to Mariano Nalupta Jr, a former governor of the province. In an interview shortly after he filed his papers to stand as a candidate for senator, Mr Marcos said he felt "proud" and "lucky" to be a Marcos. But he also tried to distance himself from his father, implicitly acknowledging the Marcos name could prove a drag on his candidacy. His father's nemesis Ninoy Aquino remains a national hero, with prominent statues in the capital, and his face on banknotes.

"You're trying to put me in comparison with my father," Bong-Bong told local media. "I don't compare myself with my father. I think about the problems as they come." Mr Marcos will stand for the senate on behalf of the Nacionalista Party, having been expelled from the Kilusang Bagong Lipunan party, which his father founded. If he succeeds, Mr Marcos could use the senate as a springboard for the presidency, just as Benigno "Noynoy" Aquino, the 49-year-old son of Ninoy and Cory Aquino, hopes to in the elections next year. It would also mirror his father's career, since Ferdinand Marcos was a congressman and senator before becoming president.

Efren Bartolome, one of Mr Marcos's aides at his Batac offices, which are based next to the former president's mausoleum, said he was "very, very, very" much a potential presidential candidate and insisted the Marcos name need not be a handicap. "It's a positive [legacy] because he will continue the unfinished projects that the father had almost completed when he was deposed," he said. "We are just waiting for our congressman to become president."

dbardsley@thenational.ae

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

Gulf rugby

Who’s won what so far in 2018/19

Western Clubs Champions League: Bahrain
Dubai Rugby Sevens: Dubai Hurricanes
West Asia Premiership: Bahrain

What’s left

UAE Conference

March 22, play-offs:
Dubai Hurricanes II v Al Ain Amblers, Jebel Ali Dragons II v Dubai Tigers

March 29, final

UAE Premiership

March 22, play-offs: 
Dubai Exiles v Jebel Ali Dragons, Abu Dhabi Harlequins v Dubai Hurricanes

March 29, final

MAIN CARD

Bantamweight 56.4kg
Abrorbek Madiminbekov v Mehdi El Jamari

Super heavyweight 94 kg
Adnan Mohammad v Mohammed Ajaraam

Lightweight 60kg
Zakaria Eljamari v Faridoon Alik Zai

Light heavyweight 81.4kg
Mahmood Amin v Taha Marrouni

Light welterweight 64.5kg
Siyovush Gulmamadov v Nouredine Samir

Light heavyweight 81.4kg
Ilyass Habibali v Haroun Baka

MATCH INFO

Champions League quarter-final, first leg

Ajax v Juventus, Wednesday, 11pm (UAE)

Match on BeIN Sports

Our legal consultants

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

War and the virus
How to become a Boglehead

Bogleheads follow simple investing philosophies to build their wealth and live better lives. Just follow these steps.

•   Spend less than you earn and save the rest. You can do this by earning more, or being frugal. Better still, do both.

•   Invest early, invest often. It takes time to grow your wealth on the stock market. The sooner you begin, the better.

•   Choose the right level of risk. Don't gamble by investing in get-rich-quick schemes or high-risk plays. Don't play it too safe, either, by leaving long-term savings in cash.

•   Diversify. Do not keep all your eggs in one basket. Spread your money between different companies, sectors, markets and asset classes such as bonds and property.

•   Keep charges low. The biggest drag on investment performance is all the charges you pay to advisers and active fund managers.

•   Keep it simple. Complexity is your enemy. You can build a balanced, diversified portfolio with just a handful of ETFs.

•   Forget timing the market. Nobody knows where share prices will go next, so don't try to second-guess them.

•   Stick with it. Do not sell up in a market crash. Use the opportunity to invest more at the lower price.

RESULTS

Cagliari 5-2 Fiorentina
Udinese 0-0 SPAL
Sampdoria 0-0 Atalanta
Lazio 4-2 Lecce
Parma 2-0 Roma
Juventus 1-0 AC Milan