BAYAN: Evidence Showed Malacañang Sanctioned Killings

What is Operation Phoenix? Oplan Bantay Laya is patterned after Operation Phoenix in Vietnam. Central Intelligence Agency (CIA) operative Colonel Edward Lansdale masterminded the 1950s counter-insurgency program of the Quirino government and later against the Vietcong. The CIA used death squads during the agrarian Huk rebellion in Central Luzon provinces.



Bagong Alyansang Makabayan (BAYAN), a left-leaning activist group, claimed Tuesday "Cabinet-level documents" showed that Malacañang sanctioned extrajudicial killings in the country.

"The responsibility for the killings goes all the way up to Malacañang and the Cabinet Oversight Committee on Internal Security. We have seen Cabinet-level documents that show how these killings were sanctioned at the highest levels of office," BAYAN Secretary General Renato Reyes Jr. said in a press statement.

Reyes said BAYAN is set to present the evidence to international bodies Permanent People's Tribunal and the United Nations Special Rapporteurs, which is scheduled to visit the country this year.

Reyes said the documents detail a "step-by-step matrix" on how to "neutralize" legal organizations. He added that the document was presented to the Arroyo Cabinet.

The group, meanwhile, challenged Malacañang to abide by the Melo Commission's recommendation to pursue charges against retired Major General Jovito Palparan and other military field commanders for their involvement in the killings.

"If the Melo Commission report is to be believed, cases must be filed otherwise the Melo report will not really amount to much. It’s like telling us what we already know. We thus dare Raul Gonzalez and the Department of Justice to file the necessary cases against Palparan. This is the logical next step," Reyes said.

He also said President Arroyo, as commander-in-chief, should "take responsibility for the killings."

Karapatan, a left-leaning human rights group, said more than 700 leftist activists, farmers, community organizers and journalists have been killed since Mrs. Arroyo came to power in 2001.

On Saturday, Bishop Juan de Dios Pueblos, member of the Melo Commission, said the body found out that aside from some members of the military, leftist groups and private armies of politicians were involved in a rash of politically-motivated killings in the country.

"There are different results in the killings. We have identified that there are killings really perpetuated by the military," Pueblos said. "There are other killings by politicians and the military, politicians and their goons and killings as part of a [family] vendetta."

"There are also some killings perpetrated by the leftists," he said, referring to the communist New People's Army and its front groups.

"The thing that is bad in the country is that vigilante killings are tolerated," he said, referring to extrajudicial murders. ABS-CBN News

Related Links:
Melo Panel Tags Palparan In Slays
Palparan: Killings Not Part Of Our Operations
Focus on the Extrajudicial Killings in RP:
Operation Phoenix's Long Shadow
Stop the Killings

Overprice In Comelec Ballot Paper Deal Bared

Who benefited from the overpriced security ballot paper? Why the Comelec-BAC revised the specifications of the ballot paper three days before the scheduled bidding last Jan. 20? I hope the Senate will investigate the alleged anomaly and culprits should be sent to jail.

Overprice in Comelec
ballot paper deal bared
Higher of two bidders get P300M supply contract

ANOTHER controversy is brewing at the Commission on Elections four months before the mid-term elections over the purchase of P300 million worth of security paper to be used in the printing of ballots.
A Comelec insider said Lamco Paper Products Corp. was awarded the contract despite posting a bid of P23,899 per ream, compared to that of Advance Computer Forms, which had the lowest bid at P14,999 per ream, or a price difference of P8,999 per ream.
The source said Lamco tendered a total bid of P310,543,606 while Advance submitted a total bid of P194,897,006, or a difference of P115,646,600.
Lamco and Advance were the only firms which qualified out of four bidders. The other two, Noah’s Paper and Multi-Forms Corp., failed to meet the requirements of the Comelec Bids and Awards Committee (BAC).
The Comelec en banc approved the recommendation of the BAC in a resolution dated Jan. 23, 2007.
Another source said the Comelec-BAC made the award under "questionable circumstances" since no representative from the bidders or any technical expert was present during the evaluation procedure for the security features of the samples provided by Lamco and Advance.
Records also showed that the Comelec-BAC revised the specifications of the ballot paper three days before the scheduled bidding last Jan. 20. Normally, bidders get a notice of seven days.
In the first notice for bidders published last Dec. 29, the BAC described the specification of the ballot paper subject for bidding as "watermarked mechanical bond paper for official ballots, 70 gsm, with watermarked impression."
The specifications for the paper were subsequently revised as "wood-free book paper, white-85 gsm. Paper shall contain watermark made through mechanical process by dandy roll."
The Comelec-BAC also made additional required security features for the paper as follows:
* Dark violet spots that appear at random when exposed to direct sunlight or ultra-violet light.
* After-glow spots that appear in the dark after the paper is exposed to fluorescent light.
* Chemical or solvent sensitive features similar to those found in a CBS-1 (clearing board specification 1) or security paper used in the production of bank checks.
A source said the BAC move threw Advance off balance while "Lamco surprisingly passed the evaluation despite being virtually a neophyte in the bidding, supply and delivery of ballot paper."
The source said producing a paper that contains a "watermark made through a mechanical process by dandy roll" ordinarily takes more than a month.
The source said Lamco, which is owned by a Terry Sy, supplies the paper used in books procured by the Department of Education. This is its first known venture in the supply of ballot paper. MALAYA 01/29/2006

Fantasia Gloria Arroyo and the Desperados

Mrs. Gloria Arroyo and her candidates must win whatever means for political survival. The Commission on Audit must scrutinize Malacanang’s black propaganda expenses and other dole-outs for purpose of electioneering. The crooks in the Comelec must resign to regain its lost credibility and integrity. The Catholic Bishop’s Conference of the Philippines (CBCP) issued educational guidelines for electorates to ensure the integrity of May 2007 midterm elections.

The Ten Commandments
1. Thou shall vote according to the dictate of your conscience.
2. Thou shall respect the decision of others in choosing their candidates.
3. Thou shall seek to know the moral integrity, capabilities and other personal qualities of the candidates you will vote for.
4. Thou shall strive to understand the issues, platform and programs of candidates in parties seeking our vote.
5. Thou shall not sell vote.
6. Thou shall not vote for candidates using guns, goons and gold.
7. Thou shall not vote for candidates with records of graft and corruption.
8. Thou shall not vote for candidates just because of popularity, "utang na loob (debt of gratitude) or "pakikisama (sense of camaraderie)."
9. Thou shall not vote for candidates living an immoral life.
10. Thou shall put the welfare of the country above all else in choosing the candidates you will vote for.

The civil society, Black and White movement will issue a “blacklist” of undersirable local and national candidates. Jueteng, the illegal numbers game may finance some candidates’ campaign funds. The influence of the Roman Catholic Church in the Philippines is waning. The CBCP bishop’s 10 commandants may not take it seriously by Filipino voters particularly the masses due to moral and credibility problem. Some bishops accepted donations from gambling lords and other illegal sources.


Palace to use gov’t funds resources for 2007 polls
By Sherwin C. Olaes

Daily Tribune 01/20/2007
Malacañang will definitely be massively utilizing government funds and other resources for the 2007 elections, to ensure an 8-4 win in the Senate and to gain full control of the House of Representatives. Additional plans call for Malacañang to manage the Philippine media’s stories.
This and more were accidentally disclosed publicly by President Arroyo’s chief aide, Executive Secretary Eduardo Ermita, as his orders and directives to all public information officers (PIO) of every government agency to intensify the propaganda on Mrs. Arroyo and ensure the victory of her administration bets was accidentally aired over government’s radio station dzRB yesterday.
“The image of the President is at stake in these elections,” Ermita told the PIOs from all government agencies attending the close-door workshop organized by the Philippine Information Agency (PIA) headed by Conrado “Dodie” Limcaoco.
Ermita intimated that no expense would be spared for this massive election propaganda, saying Malacañang is ready to tap and hire well-known commercial directors to produce television ads that would create a strong impact on the public, and with reports similar to the media hype created by the boxing matches of Filipino boxer Manny Pacquiao as well as the TV programs, Pinoy Big Brother and Philippine Idol.
“We need to be more aggressive and more proactive. We need to manage media, and not the other way around. And we need to dig deep into our creative spirits and be resourceful enough to get the right message
through and across. Do we need a media director for each project, much like a director of a movie or a musical concert to get people’s attention? You tell us after this day is over,” Ermita said.
The Palace aide also admitted at the workshop that the public response to the “achievements of President Arroyo” has been “lukewarm” and “negative,” adding that the public has reacted negatively to these “achievements.”
“Government manages only a few applauses here and there; most of the time, the halls are silent. As public information officers, it will be your responsibility to get our people to heartily applaud those messages. Instead of applause, we get survey results that speak of people’s dissatisfaction toward government, all because of media’s penchant for what sells – politicking, political personalities and political controversies,” Ermita stressed.
Ermita said that the fate of the administration candidates, especially in the Senate slot depends on how the public perceives the governance and leadership of Mrs. Arroyo and that it is necessary to step-up public ‘awareness on the achievements of the administration.
“The fate of these officials in May, depends on how well the people perceive governance. How well the people see the President. The image of the President is at stake here. While the President is not seeking elections or reelection because this is a midterm election, perhaps it will not be difficult for the people to accept the results of the elections since this will be based on the performance of the President, the performance of her government,” Ermita said.
Ermita told the PIOs that the Palace aims for an 8-4 slot in the Senate and said this would be easily materialized if the public has a good perception of the governance of Mrs. Arroyo through an intensified media and propaganda campaign.
On the part of the Cabinet, Ermita said Cabinet officials must hold regular press conferences and even visit universities and colleges so the information of the achievements of Mrs. Arroyo and her allies could be passed on to the students.
“All Cabinet members and their respective agencies are to actively lead in stepping up the dissemination to the citizenry of the effective socio-economic reforms, enhanced pro-poor programs and evident economic gains, specifically those brought about under the Medium-Term Development Plan and the 10-Point Legacy Agenda. All Cabinet members, together with their officials, should continue to hold press conferences to ensure the proper dissemination of the government’s programs, efforts and achievements,” he said.
“All Cabinet members are also enjoined to visit State universities and colleges to inform the students, faculty, and staff of the economic gains primarily brought about by the socio-economic reforms initiated by the government, and to encourage their active participation in meeting the socio-economic targets,” Ermita added.
Mrs. Arroyo, in the 2004 elections, also utilized government funds and resources for her candidacy, with government agency ads all geared toward her election bid. She was also accused of having used P3 billion of the fertilizer funds which did not benefit the farmers, with the money spent for the campaigns of her local executives bets, with the bulk going to her campaign chest.
Opposition leader Sen. Aquilino Pimentel Jr. yesterday twitted the Palace over reports that its supposed senatorial bets have spurned invitations to join the slate courting instead ousted President Joseph Estrada’s endorsement.
“In my long life in politics, this is a phenomenon that I am witnessing happening in the country for the first time. It is the fact that here is a former president, who is behind bars, technically speaking, who is being deluged with people seeking his blessing.
“And here is an incumbent President who cannot even seem to complete a senatorial slate at this point. So you can see here a big disparity in the appreciation of the people regarding this matter,” the Senate minority leader said in chiding the administration.
The reported difficulty being experienced by the administration in forming a winnable and credible 12-man senatorial slate reflects the continuing public distrust, he said, adding that it is quite embarrassing for the Palace that even senators whom it considers its allies and who won through the President’s help have spurned her overtures to join the administration ticket and instead prefer to join forces with the opposition.
In contrast, the senator observed that senatorial aspirants of diverse political persuasions have been trekking to Tanay, Rizal to court the endorsement of Estrada for their candidates.
Normally, he said, there should be a mad scramble for senatorial slots of the administration camp specially in a mid-term election like the forthcoming one, because it has the resources or logistic to provide for its candidates and to make them win.
Pimentel said the excessive number of aspirants jostling to be included in the senatorial ticket has caused a king-sized headache for the united opposition, the major pillars of which are Partido ng Masang Pilipino (PMP), PDP-Laban and a faction of the Nationalist People’s Coalition.
However, he expressed the hope the united opposition will be able to put up a strong senatorial lineup without causing a split in its ranks.
Pimentel said that while the emergence of a so-called “third force” with its own senatorial team is theoretically possible, “the history of a third force in senatorial elections in the country has been very dismal.”
Meanwhile, claiming he is against political dynasty, Speaker Jose de Venecia ended speculations that his wife, Gina, is running for the Senate in May.
Although he admitted that his wife is more popular than he, his wife, he pointed out “is not keen on running for the Senate.”
The Speaker made the statement following reports that the administration coalition has been courting his wife to run under the ticket of the administration since she has been consistently topping the party’s surveys.
But a reliable source close to De Venecia, told the Tribune that de Venecia’s wife had been ready for that position (as senator) as early as 2004. “And I don’t believe she will not run because there is already an agreement between (the Speaker and Malacañang),” the source said.
The Speaker at the same time said that the full administration ticket would be made public close to the start of the campaign period in February.
He refused to name those in the list, but was quick to add that his wife’s name is not included.
He claimed he could not name those people since the coalition has been weighing at least 25 candidates for the 12 slots.
“We’re putting up a grand coalition slate, and we will name our candidates based on the politics of achievement and politics of performance—not on the politics of hate that has become pervasive,” he said. With Angie M. Rosales and Dona Policar

Comelec After Garci

Political Gambit: Former Justice Secretary Nani Perez Charged For $2-M Impsa Bribe

Photo: Newsbreak

Why only now four months before midterm elections? There’s no surprise in the latest Ombudsman move or Moro-Moro. I don’t think ex-DOJ chief Nani Perez is ready to spill the beans. It may take years before final judgment of the bribery and extortion case. It’s a calculated political gambit or to gain pogi points for the discredited Arroyo administration. The issue next year's poll is Gloria Arroyo and her inept government. It appears that Ombudsman Merceditas Gutierrez is trying to boost her big boss' credibility in fighting graft and corruption. The midterm elections will be a referendum on usurper Gloria Arroyo and on her tyrant policy. An opposition controlled-Congress may end Gloria’s Enchanted Kingdom. How about Joc-Joc Bolante’s P728 M fertilizer scam? This case is gathering dust at Office of Ombudsman. Are they willing to sacrifice the bagman Bolante for pogi points?

Perez charged for $2-M Impsa bribe

By Dona Policar and Gerry Baldo

Daily Tribune 01/09/2007

He was the Secretary of Justice then, but he was found to have extorted some $2 million from a businessman, said to be part of the bribe money offered by the Argentine power firm Industrias Metalurgicas Pescarmona Sociedad Anonima (Impsa), in exchange for a sovereign guarantee contract for the power producer just two days after Gloria Arroyo and her Justice secretary assumed office following the Edsa II coup d’etat.

President Arroyo’s first Justice chief, Hernando “Nani” Perez, has finally been charged with extortion, graft and corruption and falsification of public documents by the Office of the Ombudsman, along with his wife, Rosario, his brother-in-law Ramon Arceo and Ernest Escaler, the private banker at Coutts Bank in Hong Kong,

who is also a known fund-raiser for Mrs. Arroyo’s many questionable foundations.

Ombudsman Merceditas Gutierrez approved the filing of the charges against Perez et al, but spared him the charges of plunder, despite the fact that the amount involved is over the plunder threshold of P50 million.

Reliable sources told the Tribune yesterday that this was purposely done to ensure that Perez, who had insisted on charging deposed President Joseph Estrada with plunder, would have the opportunity to post bail.

The charges against Perez stemmed from the allegations leveled against him by then Manila Rep. Mark Jimenez, a.k.a. Mario Crespo, who accused the then Justice secretary of having extorted $2 million from him, in exchange for not including him in the plunder case against Estrada, or testifying against him. It was also said that the $2 million from Jimenez formed part of the Impsa bribe, with the bulk of it going to the top officials in the new Arroyo government, as their “commission” for the immediate approval of the Impsa deal.

The Ombudsman’s investigators found that the bank documents showed the illegal acts of the then Cabinet official.

The 66-page ruling was released only yesterday although it was promulgated on Friday last week. The cases are scheduled to be filed this week at the Sandiganbayan against Perez, his wife, Rosario, his brother-in-law Ramon Arceo and business associate Ernest Escaler.

The Swiss authorities over two years ago, sought the assistance of the Arroyo government in getting certain bank documents for them to be able to file a case of money laundering against Perez and his wife, who had opened an account in the Swiss bank while depositing the $2 million. Both Malacañang, along with the Department of Foreign Affairs and the Senate, then dominated by Arroyo allies, rejected the Swiss Government’s request. The Ombudsman, even with all the documents to prove the plunder and graft committed by Perez, sat on the case for years.

Government probers, in charging Perez et al, concluded that evidence of the illegal acts committed by the four accused, cannot merely be denied by them.

“The denial of Perez cannot overcome the positive assertion of Jimenez, more so that the charges were substantiated with convincing evidence,” the prosecutors said, referring to the $2million Jimenez deposited in the Coutts Bank in Hong Kong in February 2001.

“This Office finds that Perez, in conspiracy with Escaler, Arceo and Rosario Perez, took advantage of his position as the DoJ Secretary by demanding Jimenez to deliver the $2 million in connection with the execution of affidavits.”

Jimenez accused Perez of extortion. He claimed Perez demanded from him the money so he (Perez) would stop coercing Jimenez into executing affidavits against the detained leader, as well as the other officials of former President Joseph Estrada, whom the congressman referred to as “targets” of Perez.

It will also be recalled that the Tribune published a notarized affidavit from a petitioner in a different case where it said that Perez was also known to have extorted money from several other individuals who had become “witnesses” for the prosecution against Estrada, and had threatened to charge them with plunder if they did not provide the grease money and testify against the deposed leader.

During a privilege speech, then congressman Jimenez claimed that the former Justice secretary extorted money from him during a meeting two days after Mrs. Arroyo assumed the presidency in January 2001.

That meeting was followed by another one on Feb. 13 of the same year where the act of extortion was alleged, a meeting which was not specifically denied by Perez

It will be recalled that shortly after that meeting, and when the money from Jimenez’ Cayman’s bank account was deposited in Escaler’s account for Perez, he flew to Hong Kong, apparently to check on the deposit and to have this transferred to another account.

Jimenez, who was also convicted of tax evasion cases in the United States, claimed to have deposited $2million in a numbered account of Escaler at the Coutts Bank in Hong Kong on Feb. 13, 2001.

Records showed that Jimenez deposited $2 million in beneficiary account HO133706 of Coutts Bank in Hong Kong, from Trade and Commerce Bank, Cayman Islands through the Chase Manhattan Bank in New York.

Bank documents provided by both Swiss and Hong Kong authorities, according to the probers, have clearly established the transfer of funds from Escaler’s HK Coutts Bank account to Rosario’s and Arceo’s Swiss accounts.

Escaler, whom Perez had reportedly conspired with, being the initial transferee of the Jimenez fund, offered “no explanation to show that the transfer to his account was the outcome of a legitimate transaction with Jimenez.”

The Ombudsman also said that “no specific denial was made that Jimenez, in accordance with the instructions of Escaler, transmitted the $2 million to the account, and subsequently, Escaler transmitted the $1.7 million to Rosario and the $250,000 to Arceo through a check or bank draft.”

“If indeed Rosario and Arceo had no knowledge of, nor participated in the opening of the supposed escrow accounts, then how could they have effectively served as trustees for the amount supposedly held in escrow? Perez and Escaler imply that only they were privy to the MOU as well as the escrow agreement. This renders their defense suspect,” it added.

The Ombudsman took note of the accused initial declaration that the money deposited constituted the inheritance of Rosario and Arceo. The Perezes said in their Joint Counter-Affidavit that the funds were proceeds of the same, through a Memorandum of Understanding, of their Batangas property Malvarosa Ventures Inc. to Escaler, which in fact was not notarized.

This, according to the Ombudsman was a “mere private instrument” that did not prove the sale of Malvarosa.

“Indeed, it is curious that as vendee, Escaler would allow the consideration for the supposed sale to be deposited in an account held by close relations of the vendor, Perez, and over which the vendor himself had control as attorney-in-fact,” the resolution said.

“This office finds that Perez, in conspiracy with Escaler, Arceo and Rosario Perez took advantage of his position as the DoJ Secretary by demanding Jimenez to deliver that $2 million,” the report said.

Perez, a former Batangas congressman, is closely identified with Mrs. Arroyo, who has been known to protect him from all these charges, which surfaced early during her first stint at the presidency.

Perez, then Justice secretary, also barred immigration, which was under his supervision, from releasing any documents pertaining to his flight to Hong Kong, in what could be termed as an obstruction of justice.

Jimenez filed a complaint-affidavit before the Ombudsman on Dec. 23, 2002 after his privilege speech and described how the $2-million payoff was made to the former justice secretary. He also provided the then Ombudsman, Simeon Marcelo, the copies of the bank documents and checks from his Cayman’s bank, as well as the New York bank routing.

Jimenez was known to have been the point man in the Philippines for Impsa. He tried pushing the approval of the sovereign guarantee from Estrada, bribing him with $14 million. Estrada rejected it.

In a Senate inquiry where the former President was called upon to testify to the Impsa bribery which included the highest official in the land, Estrada said Jimenez offered him $14 million in bribe money in exchange for a sovereign guarantee for the Impsa power plant. Estrada said he rejected the bribe, which was why Impsa was unable to get the sovereign guarantee. But a few days after the Edsa revolt, Jimenez and the Impsa officials were in Malacañang, forging the deal with the new government officials.

The sovereign guarantee was quickly granted, even as Malacañang, through the prosecution in the plunder case, insists it was Estrada who had signed the Impsa sovereign guarantee.

After Mrs. Arroyo and Perez signed the contract, Jimenez claimed he deposited $2 million to the Coutts Bank in the Hong Kong account of Escaler, said to be a facilitator for money laundering activities.

Escaler made no denial.

“No specific denial was made that Jimenez, in accordance with the instructions of Escaler, did transmit the $2-million to the account and subsequently, Escaler transmitted the $1.7-million to Arceo-Rosario and the $250,000 to Arceo through a cheque or bank draft. Perez also did not specifically deny the accusations in the complaint pertaining to the meeting in Feb. 13 where the act of extortion was alleged,” the panel said.

Perez isn’t the only one responsible for the controversial IMPSA deal
Timeline of extortion accusations against ex-DoJ chief
Closing in On Nani

NAIA3: PIATCo Fiasco

Malaya 01/06/2006

Corruption wraps Piatco concession
Time line shows it all

BY AMADO P. MACASAET
EVENTS and dates hardly leave any doubt that the award of the NAIA Terminal 3 to Philippine International Airport Terminals Corp. and its partner, Fraport, was attended by corruption, deceit and bribery.
The award was, as declared by the Supreme Court, illegal from the very beginning and therefore did not exist.
Yet, Piatco filed a request for arbitration with the International Chamber of Commerce in Singapore. Fraport filed a similar request with the International Center for the Settlement of Investment Disputes in Washington DC. Both of them are seeking compensation in spite of the fact that the panel of lawyers defending the Philippines has shown beyond doubt because it is undisputed that the Philippines is a victim of what could be considered criminal acts by the partners.
The time line of Piatco’s corrupted concession shows it all.
Yet, Malacañang is said to be prepared to award Piatco and/or Fraport the incredible amount of $450 million in payment for a supposedly world-class airport that is unfinished and certified as unsafe.
Records show that in June 1996, or around the time the countdown started for the last two years of the Ramos presidency, the Department of Transportation and Communications issued competitive and comparative proposals and bid documents for the construction of the proposed new terminal of the Ninoy Aquino International Airport.
In September of the same year, Pantaleon D. Alvarez, a member of the pre-qualification and bid awards committee (PBAC), set up a meeting and introduced Jeffrey Cheng to Antonio Henson, president of Asian Emerging Dragons Corp. which earlier submitted an unsolicited original proposal for NAIA 3.
On Oct. 15, 1996, the PBAC declared Paircargo as the winning bidder. Nevertheless, the PBAC invited AEDC to submit a counter bid.
On Feb. 27, 1997, the Paircargo group was formally incorporated as the Philippine International Air Terminals Corp.
In a short period from January to April 1997, Piatco negotiated the terms of the concession agreement with the PBAC.
On April 15, AEDC filed a suit with the Pasig City regional trial court demanding that the award to Piatco be nullified, claiming that the company was not properly pre-qualified.
Two events took place in 1996. On September 20, Paircargo of the family of Cheng Yong submitted the only competing bid to the PBAC.
Four days later, on September 24, the PBAC pre-qualified Paircargo. AEDC objected, saying that Paircargo did not satisfy the nationality requirements of the BOT law. Neither did Paircargo satisfy the financial requirements specified in the bid documents.
On Dec. 11, 1996, the PBAC awarded the bid to Piatco.
The Investment Coordinating Committee of the NEDA noted the concession agreement but did not approve it for lack of signatories.
Piatco hired Fraport on September 1998 as consultant. The German company insisted on a rebidding.
The DOTC, Manila International Airport Authority, and Piatco signed an "amended and restated concession agreement" (ARCA). The DOTC proceeded to submit the ARCA to the ICC for approval.
Quisumbing Torres, the firm that did due diligence, alerted Fraport "to the serious limitations and risks arising from the Terminal 3 project."
President Estrada wrote a memorandum on Feb. 11, 1999, "affirming the government’s commitment to extend full assistance to Terminal 3 in order to insure its completion and the commencement of its commercial operation by 2001."
On March 12, 1999, the Fraport supervisory board decided to invest in Piatco through equity and interest free-loan in spite of the warnings of Quisumbing Torres of the risks and serious limitations in the Terminal 3 project.
CHANGES
On the same day, Rodom Fetiza of the technical staff of the NEDA informed the ICC Technical Board of 80 substantial changes in the text of the ARCA compared to the 1997 concession agreement. The changes, according to Fetiza, affected the rights of government.
He argued with DOTC Secretary Wilfredo Trinidad that the changes were illegal because they translated into government guarantees which were not allowed under the Build-Operate-Transfer Law.
In spite of the objections, the ICC Cabinet committee conditionally approved the ARCA although the technical working group objected to the language.
Fraport put in equity in the Terminal 3 project and acquired 25 percent of Piatco. In addition, the German company acquired 40 percent of Philippine Air Ground Services (PAGS) and another 40 percent of PAGS Terminal Inc.
The two companies both controlled by the family of Cheng Yong are direct and major stockholders of Piatco.
The purchase of shares by Fraport resulted in a cascade that in turn raised the equity of Fraport, a foreign company, beyond the 40 percent constitutional limit.
On Aug. 19, 1999, the board of NEDA approved the ARCA. Slightly more than a week later, on Aug. 27, 1999, the first supplement to the ARCA was signed.
TAKENAKA HIRED
Takenaka, a 300-year-old Japanese company, got from Piatco the engineering procurement contract.
A Dr. Losch, consultant of Fraport, reported on April 1, 2000, that prospective long-term lenders were unhappy with the project "because they recognize that the Chengs lack the money, experience, competence and business reputation to make Terminal 3 successful."
Prophetic warning, as it now turns out.
Piatco established a kickback scheme identified under Schedule 7 of the engineering and procurement contract.
Also as early as April 2000, the quality assurance inspector noted that the design drawings were "extremely different from the tender design drawings."
Wintrack was hired on June 7, 2000 as subcontractor to demolish and clear subterranean structures from the construction site.
In the same month, on the 15th, construction of Terminal 3 finally began.



Philippines complies with ICC order
The people pay for Arroyo's corruption
Corruption Still Haunts Arroyo Presidency
International court rules in favor of PIATCo
Judge Handling PIATCo Case Murdered
An Idle Airport
GERMANS OWN 61% OF PIATCo

VFA Fallout: The Subic Rape Case Is A Political Issue

The Subic rape case is a political issue. It’s no longer a legal issue. The Philippine sovereignty is at stake. The problem is the negative credibility of great usurper Gloria Arroyo. Majority of Filipinos do not trust her. The president’s men arrogant lies and gung-ho manner in the transfer of convicted rapist Daniel Smith to the US Embassy is total disregard of separation of powers. Why the official transfer of Daniel Smith to U.S. Embassy came first before any court ruling? It should be court ruling first before actual transfer. Where’s the rule of law? National outrage is really mounting in this case.

Philippine bogus President Gloria Arroyo bowed-out to Uncle Sam’s demand in exchange of US military aid. She betrayed the Filipino people and Philippine sovereignty for 40 units of Vietnam war-vintage Huey helicopters and other military hardware. It’s the foremost duty of any government to its citizenry. The Arroyo government is a national disgrace for miserably failed to protect its citizens locally and overseas.

The U.S. is pressuring on small, vulnerable, impoverished states that are hugely dependent on military, economic, political assistance from the United States. Uncle Sam treats Filipinos as little brown brothers not co-equals even after full independence in 1946. Gloria Arroyo’s credibility has eroded since she grabbed power in 2001 and cheated in 2004 presidential election. GMA ruled the country thru deceit, cronyism and political accommodation. Gloria’s Judas' 30 pieces of silver won’t make dent in fight against poverty and insurgency.



CA cops out, moots Smith case, upholds Pozon ruling

By Benjamin B. Pulta

Daily Tribune 01/04/2007

A ruling by the Court of Appeals (CA) has turned down the suit filed by lawyers of convicted rapist American Lance Cpl. Daniel Smith and upheld the ruling of the Makati Trial Court Judge Benjamin Pozon, saying he did not commit grave abuse.

The CA, however, said the controversy over the custodial issue has become moot following the Marine’s clandestine’s transfer to the US Embassy over the holidays.

In its 38-page decision,the CA’s Special Sixteenth Division through Associate Justice Apolinario Bruselas Jr. said in part allowing Smith to stay with the Americans after proceedings in the trial court may leave Philippine justice empty-handed.

“His (Smith’s) remaining in US custody will keep him beyond the jurisdiction of Philippine authorities who have exclusive jurisdiction over him with respect to the offense that he has committed,” the decision said in part.

Around 20 protesters from the pro-women group Gabriela trooped to the gates of the Justice department (DoJ) beside the CA

yesterday barely an hour after news of the decision was reported. A handful of policemen also barricaded the area.

Two other magistrates, Josefina Guevara-Salonga and Fernanda Lampas-Peralta concurred with the ruling which also pointed out that Judge Pozon did not act whimsically in ordering Smith’s detention in the city jail temporarily.

The appellate court however underscored that the case is moot. “Conformably with the wise observation that the other branches of government are equally the ultimate guardians of the liberties and welfare of the people, we resolve to consider the matter treated in the petition moot.

“It may as well be stated that it is not the physical layout of the agreed on confinement or detention facility, or the stringency of security but the simple fact that it be run by Philippine authorities that makes any such agreement fully compliant with the VFA and with our national law.” the tribunal added referring to the agreement signed between the Foreign Affairs department and the US embassy allowing Smith’s detention in the Rowe Building inside the embassy compound.

The CA decision stated there had been no grave abuse of discretion on the part of the Makati judge in rendering the decision for Smith’s conviction and his subsequent commitment to the Makati City Jail.

“In the case now before us, we note that the respondent judge heard the petitioner on his proposition. He also heard the prosecution on the issue of custody. It was only after hearing them that the respondent judge maintained his original order of commitment.”

The appellate court pointed out that under criminal law and procedure, a judgment of conviction that imposes the penalty of imprisonment above six years is immediately followed by an order of commitment to the appropriate detention facility.

“Given the foregoing behavior of the respondent judge, we cannot say easily that the issuance of the questioned orders had been attended by whim, caprice or arbitrariness.”

The court said it “does not see a clear disregard of any settled jurisprudence that bears on the issue.”

The tribunal also said the ruling that the treaty provision allowing the US embassy to keep custody in all judicial proceedings means only proceedings while it is before the lower court and not when it is already on appeal.

“The term all judicial proceedings...refers to all trial court proceedings. The term is used in its descriptive sense, not in its all embracing sense.”

The CA also said the Smith may not remain further under custody by US authorities after completion of all trial proceedings because there is no longer any further co-relative obligation to hold and produce him for any other investigative or trial court proceedings.

“His remaining in US custody will keep him beyond the jurisdiction of Philippine authorities who have exclusive jurisdiction over him with respect to the offense that he has committed .

“It may have been in this light that the order of the respondent judge to temporarily commit the petitioner to the MCJ (Makati City Jail) was issued.”

All judicial proceedings meant all proceedings at the trial court, the appellate court said because “under Philippine law, it is the judicial proceedings at the trial court level that are held in open court. Appellate procedure under Philippine law does not require the presence of the accused nor of witnesses.”

Despite the clear ruling of the CA upholding Pozon’s decision and its warning that the Philippine justice may be left empty-handed with the US government now taking custody of Smith, Malacañang yesterday claimed it felt vindicated over the CA decision that rendered moot and academic” the government petition.

In a press briefing in the Palace, Department of Justice Secretary Raul Gonzalez said the CA merely recognized the actions taken by the Executive Department to have Smith returned to the US custody on the basis of the Visiting Forces Agreement (VFA), which had been forged by both countries.

Gonzalez assured the public that even if Smith is detained at the US Embassy, there have been no negotiations that the convicted rapist would be transferred to other countries where the US has military bases such as in Okinawa, Japan.

Gonzalez said US Ambassador Kristie Kenney assured the Arroyo administration that once the Supreme Court (SC) comes out with a final verdict that convicts Smith on rape charge, they would cooperate in the transfer of the US Marine at the New Bilibid Prison, in Muntinlupa City.

“His (Smith) detention (at the US Embassy) was just temporary,” he stressed.

For his part, Executive Secretary Eduardo Ermita said the President was relieved and felt vindicated over the CA ruling saying Americans were also happy over her administration’s move to have Smith transferred to the US embassy.

“We must remember that a nation stands by its leader. Our leader must be believed, perceived credible, competent and has political will to exercise harsh decisions. It is not an issue over how she (Mrs. Arroyo) makes it in surveys (public approval ratings),” he said.

“Remember the US is a good ally, a super power. Since the Second World War the US stood by the Philippines in assisting us either in military or political developments. Why should we not enhance such relationships when both governments are only fighting for the compliance in the VFA agreement,” he added.

Ermita said if Mrs. Arroyo did not take the necessary moves, the Philippines would be placed in a bad light before the international community which had been watching the situation.

“What is important is respectability that the Philippines as a nation will gain if we do not take this action... other countries with whom we’re talking to such as those in the Asean (Association of Southeast Asian Nation) and OIC (Organization of Islamic Conference) would have a second look... because they were asking... are we going to sign an agreements with the Philippines when things written (with the US ) are not being complied with?... That is why our President was vindicated... Look! Within 48 hours the US government made a decision to resume the (RP-US) Balikatan exercises (that were earlier been suspended),” he said.

“(Prior to Smith transfer of custody) everybody was watching... I don’t know how many (foreign) embassies we have here in the Philippines that were watching... but everybody is watching... they’re watching what our government actions would be... our credibility as a nation,” he added.

Ermita confirmed that they have met with Kelly recently to assure the US government that the Philippines would comply with the VFA agreement.

Ermita said the Palace expects a backlash from the Filipino public over the President’s action, but it is confident that proper information dissemination would water down public resentment.

Meanwhile, the Department of Foreign Affairs (DFA) virtually admitted yesterday that the Philippine government was pressured into releasing Smith from a local jail as it said the country stands to lose millions of dollars worth of aid from the United States.

Rafael Seguis, DFA Undersecretary for Special Concerns, said the Philippines “has lots to lose” if the custody issue was not resolved.

“This is a sigh of relief,” Seguis told a press conference. “There has been vindication. The action has been vindicated by the decision taken by the Court of Appeals.”

With the government’s decision, Seguis said it has averted the US pullout of several aid projects in the country.

“We have advantages and benefits to gain in the Balikatan. Under the program, we have this security assistance program to train units of the Armed Forces of the Philippines, we have humanitarian assistance the civic action and civic projects,” Seguis said.

Also scheduled under this year’s Balikatan civic project is the construction of three school buildings Jolo with a US allocation of $220,000, Seguis said.

“Apart from the Balikatan benefits, there is also other assistance extended to other agencies of the government the Department of Interior and Local Government (DILG) for instance, to the National Bureau of Investigation and other agencies of the government,” Seguis said.

“Well, certainly under strained relations all these will be jeopardized,” he noted.

Seguis also believes that the Philippines would have suffered in the long term. The US is the Philippines’ number one trading partner.

Meanwhile, Seguis said the Philippines is open to the review of the Visiting Forces Agreement.

“We have telegraphed our desire to review the VFA but…after this case is resolved,” he said. With Michaela P. del Callar and Sherwin C. Olaes

2006: The Economics of Hype

ECONOMY

2006: The Economics of Hype

Administration propaganda one-sidedly presents growth, peso appreciation, lower public deficits and foreign investments as if these were development ends in themselves. But the deteriorating social conditions of joblessness, hunger and poverty are the sharpest rebuttal of any government economic hype.

BY SONNY AFRICA
IBON Foundation
Posted by Bulatlat

The government has been bombarding the public for months with news of a supposedly strengthening economy: continued growth, strong peso, low budget deficits, improving credit ratings and continuing foreign investments. Big business has dutifully joined the chorus with segments even visibly taking the political side of the beleaguered Arroyo administration. Yet the reality of historic joblessness, deepening poverty and hunger of tens of millions of Filipinos is undeniable.

The seeming contradiction merely shows different sides of the same coin – a national economy that, especially under the Arroyo watch, does not serve the needs of the people. The economic “good news” has been good only for foreign creditors, investors and the administration which works so hard to deliver what they want. However even the “good news” as such will likely be short-lived with the underlying fiscal crunch and continuing borrowing portending problems in the near future. The domestic economy remains weak and, moreover, excessively vulnerable to global economic disturbances.

The year just passed has seen four significant economic trends: 1) the continuing historic jobs crisis; 2) the implementation of burdensome economic policies to address the government’s fiscal crisis; 3) the increasing dependence of the domestic economy on external sourcing of financing, especially overseas remittances; and 4) continued efforts to open up the economy to foreign trade and investment. Since all these happen in the context of a backward and pre-industrial economy, their adverse implications are far-reaching: the people have suffered in the year gone by, are likely to suffer even more in the medium-term, and – absent real changes in economic policies – will continue to suffer even beyond this.

Historic joblessness

The biggest failure of the Arroyo regime is the unprecedented lack of jobs where the country is facing its worst jobs crisis. That this is happening amid continued economic growth (5.4 percent growth in gross domestic product in the first three quarters of 2006) and higher net income of corporations (32.5 percent increase in earnings of companies listed in the Philippine Stock Exchange in the first nine months of 2006) underscores the problem of an inequitable economy that favors a few while increasingly unable to provide jobs for millions of Filipinos.

There were 4.0 million unemployed Filipinos and 7.3 million underemployed in 2006 – i.e. 11.3 million Filipinos or nearly a third of the labor force were either jobless or, even if employed, nonetheless still seeking more work. (This dismal reality is barely concealed by a convenient change in the definition of unemployment last April 2005 that reduces the officially reported rate by around three percent and the number by around 1.5 million.)

The problem is clearly not just momentary. The average annual unemployment rate of 11.3 percent and underemployment rate of 18.5 percent over the last six years is the worst six-year period in the country’s history, which indicates a deep-seated problem. While the unemployment rate has remained stable around a high 11 percent, the underemployment rate on the other hand has severely deteriorated and increased by some five percentage points in the last six years to nearly 22 percent. This draws attention to the worsening quality of employment and how already having a job is increasingly not even enough.

A particular development in 2006 is the sudden drastic drop in the labor force participation rate (LFPR) which fell from 67.0 percent in 2005 to 65.4 percent in 2006. The LFPR measures how many Filipinos over 15 years old are looking for work and thus considered part of the labor force. The drop in the LFPR implies that some 890,000 Filipinos (equivalent to the difference had the LFPR remained the same since the year before) ceased to be considered part of the labor force. Considering the previous five years of record joblessness, it is possible that many or all of these 890,000 Filipinos are discouraged job-seekers. If so, their “departure” from the labor force has the effect of greatly reducing reported unemployment.

Burdens in the year gone by

The Arroyo administration’s major economic effort in 2006 has been to rein in mounting government fiscal deficits. The national government deficit of P50.4 billion ($1,024,494,359 at an exchange rate of $1=P49.195) in the first nine months of 2006 is projected to come to a full-year deficit of around P100 billion ($2,032,726,903). However the achievements on this front are less signs of a strengthening economy than indications of how economic burdens are placed on those already least able to bear them – the deficit was reduced by charging higher taxes while drastically reducing critical spending especially on social services.

Conspicuously implemented amid a climate of harsh political repression were higher taxes and reduced public spending on education, health, housing and economic services – bringing to mind images of a strong state forcing unpopular measures on the people. On one hand, some P278 billion ($5,650,980,790) are targeted to be raised in 2006 from higher taxes, fees, rates and charges for public services. The new 12 percent Value-Added Tax (VAT) since February alone has taken an additional P61.7 billion ($1,254,192,499) from consumers’ pockets in the first ten months of 2006.

On the other hand, the government opted to cut back further on already emaciated social service budgets. Real public spending on education continued to fall in 2006. The current P1, 296 ($26.34) per Filipino (in 2001 pesos) spending for education is 13 percent down from its 2001 level. Health spending has fallen by an even more drastic 27 percent over the same period amounting to a meager P120 ($2.43) per Filipino.

These fiscally repressive measures are aimed at assuring creditors that loans would be paid and foreign investors that foreign exchange would be available for their globally-integrated commercial, financial and pseudo-manufacturing operations. Around P721.7 billion ($14,570,190,059) is programmed to be repaid to creditors in 2006 which is equivalent to P6, 391 ($129.91) per Filipino (in 2001 pesos), or nearly five times the combined spending on education and health. As it is, the government borrowed P592.4 billion ($12,041,874,174) in the first 11 months or slightly less than in the same period in 2005. Over four-fifths of this borrowing went straight back to creditors for debt servicing.

The International Monetary Fund (IMF) and World Bank (WB) have visibly supported the Arroyo administration’s fiscal squeeze. Aside from the IMF-WB issuing favorable country assessments of government finances, the WB in December approved the immediate single tranche disbursement of a US$250 million policy loan – its first in almost a decade – because the associated fiscal policy conditionalities were already met.

Erosion of the domestic economy

Seeming improvements in various external indicators are also hyped as signs of an improving economy. The “resurgent” peso which hit a near 6-year high of P49.19 to the US dollar in late December is particularly hyped as a sign of strength. Yet, on the contrary, most of the factors underlying the recent appreciation of the peso in fact highlight the opposite (aside from the actual weakening of the US dollar because of the U.S.’s internal economic problems). The peso has not been appreciating because of increasing global demand for genuinely Philippine-made goods. If it were the case, it would have been a good thing insofar as that would imply increased domestic production for the international market. The gains from the increased production of local firms would supposedly accrue to the domestic economy and its producers.

However the appreciation of the peso has instead been driven by factors with little relationship to building domestic productive capacity. The country’s biggest source of foreign exchange is remittances from some nine million overseas Filipino workers (OFWs) driven to seek work abroad. OFWs sent back US$10.3 billion in the first ten months of 2006, or a 16.6 percent increase from the same period the year before. OFW remittances benefit the economy in two ways. The accumulation of foreign exchange brought about by the remittances eases local demand for dollars causing its value to go down. Second, it supports the consumption and survival of tens of millions of OFW family members left behind. But in a deeper economic sense the cheaply bought labor of OFWs actually contributes more to building the economies of their host countries than of the Philippines. Moreover, the increasing deployment of OFWs is actually an indication that the local economy – eroded by decades of retrogressive “free market” policies – is bereft of opportunities for productive employment, which is the reason OFWs went abroad in the first place.

The country’s other sources of foreign exchange are not only much less but also basically hollow in their own specific ways. Exports in the first ten months of 2006 grew 16.4 percent from a year ago to US$39.3 billion. But over four-fifths of these exports are heavily import-intensive electronics (some 75 percent), clothing and a few other manufactures, mainly by foreign TNCs. Because the country’s export products are heavy on imported components, not to mention the imported machines and oil needed to produce these, net foreign exchange earned from exports is much less and even smaller than that coming from OFW remittances. There were also net portfolio investments in the first eleven months of the year of US$2.1 billion, marginally higher than in the same period last year. Portfolio investments are highly mobile and do not actually contribute to the economy except as temporary sources of foreign exchange.

Surrendering economic sovereignty

The country’s economic problems are essentially the result of decades of anti-people and elite-oriented economic policies. The so-called neoliberal “globalization” policies that surrender economies to the profit-oriented dynamic of foreign monopoly capital and domestic big business are trade and investment liberalization, privatization and deregulation.

Pres. Gloria Macapagal-Arroyo has been a dogmatic advocate of “free market” policies since her technocratic days in the 1980s, her senatorial stint in the 1990s and up to her presidency in the 2000s. In 2006 she took these policies as far as possible within the current Constitution and, deeming this the last remaining legal fetter, also pushed to change the charter itself.

There was the renewed drive to open up the country’s rich mineral resources to foreign plunder. Building on various mining-related plans and programs and a favorable Supreme Court decision in 2004 and 2005, the government held international mining conferences and went on an international road show in 2006. Within the Association of Southeast Asian Nations (ASEAN) the Philippines pushed for so-called “regional integration” – deceitful spin for economic policies geared at attracting American, European and Japanese investors away from China and India by offering cheaper labor, greater freedom to exploit natural resources, lower environmental standards, lower taxes, and as unrestricted operations as possible.

Especially significant in 2006 is how the Arroyo administration entered into the country’s first full-fledged free trade agreement (FTA) with Japan: the Japan-Philippines Economic Partnership Agreement (JPEPA). The JPEPA is a patently unequal deal that one-sidedly demands much greater trade and investment liberalization from the backward pre-industrial Philippines than advanced capitalist Japan makes. The unprecedented deal also gravely undermines the country’s negotiating position in all subsequent trade and investment agreements. The end result of the JPEPA and other such agreements will be to decisively prevent any real domestic industrial growth and economic progress.

The closing weeks of 2006 finally also saw the Arroyo administration’s attempts to overhaul the 1987 Constitution including, aside from changes in the political set-up, removing various economic sovereignty provisions for developing the domestic economy. Among others these provisions include controls on foreign equity investments, exploitation of natural resources and land ownership and provisions promoting Filipino economic activity.

Challenges in 2007

The deteriorating social conditions of joblessness, hunger and poverty – IBON’s last October 2006 survey had over 70 percent of respondents rating themselves as poor – are the sharpest rebuttal of any government economic hype. Administration propaganda one-sidedly presents growth, peso appreciation, lower public deficits and foreign investments as if these were development ends in themselves. Similarly, the usual government argument that the fiscal sacrifices are short-term pain for long-term gain is specious considering that the fiscal squeeze is precisely aimed at furthering the administration’s bankrupt neoliberal agenda. As it is, the New Year will already open with further privatization-driven water and power rate hikes.

In her speech at the 28th Catholic Mass Media Awards (CMMA) ceremonies in November, Pres. Arroyo dreamily said, “So much is going well in the Philippines… I hope to leave office in 2010 with the nation well on its way to First World status.” Yet, clearly, little is going well for the majority of Filipinos. It is entirely understandable that many will probably think that the three years until 2010 is too long and, equally understandably, do their utmost to ensure that she leaves office as early as possible before then. IBONFoundation/posted by Bulatlat

Two Versions Of The Philippine Political Economy