Arryo regime brought Philippines deeper into crisis

MANILA — The Arroyo administration is, hopefully, about to end its term by the middle of next year. Lasting for nine years and a half, it is the longest-running presidency since the Marcos dictatorship. In fact, Gloria Macapagal-Arroyo is second only to Ferdinand E. Marcos who, for 20 years, held the reins of power the longest in the country’s history. But the similarities between the Marcos dictatorship and the Arroyo government do not end with them having the longest terms.
They both grabbed power when the country, and the world, was in deep economic crisis. By Marcos’s second term, in 1969, the world was moving toward a deep economic crisis, which resulted in the US being the world’s biggest debtor from being its biggest creditor. The value of the dollar plunged, thereby causing the devaluation of all currencies tied to it, such as the Philippine peso. The turn of the decade signaled a shift from the World War II-era Keynesian economics to neoliberal economics, or what we now call globalization, which is actually a drive to fully open up the economies of underdeveloped countries to foreign trade and investments. This pushed the Philippines deeper into economic crisis such that Marcos had to declare martial law to keep himself in power because the Filipino people’s protest actions were intensifying since the “First Quarter storm” of 1970. At the same time, the contradictions between the ruling elite was also worsening with the opposition led by the late senator Benigno Aquino Jr. and erstwhile Marcos ally, the late vice president Fernando Lopez, denouncing Marcos and his corrupt practices.
When Arroyo was catapulted to power via People Power II in 2001, the world was also being rocked by a crisis. The US, which until March 2000 was the only country that seemingly was shielded from the crisis, was already reeling from the bursting of the “high-tech or dot-com bubble.” The Filipino people, already feeling the effects of the crisis, were moved to action because of former president Joseph Estrada’s brazen display of profligacy amid the worsening poverty. The ruling elite was also hopelessly divided, with Arroyo, who was then vice-president, joining the opposition a few months before Estrada’s ouster.
While both Marcos in the 1970s and Arroyo in 2001 promised to usher in a new government that would supposedly benefit the people, the Marcos and Arroyo regimes pushed the country deeper into crisis.
By the end of the Marcos dictatorship the country was deeply indebted, prices were skyrocketing, unemployment and poverty had reached new highs, and all institutions of government were warped by the unbridled power and corruption under martial law. “Never again to martial law” became the people’s rallying call.
Also, by the end of the dictatorship, the divisions within the ruling elite were even deeper as manifested by the series of coups d’ etat that the Aquino government had to face and the unprecedented number of presidential aspirants — seven — during the 1992 elections. Another sign of the worsening political and economic crisis then was the increasing strength of the Communist Party of the Philippines-New People’s Army-National Democratic Front of the Philippines (CPP-NPA- NDFP).
Now that the Arroyo government is about to end (hopefully), prices have reached new highs in spite of the low inflation rates reported by the government; the country is experiencing the longest-running high unemployment and underemployment rates: as of July 2009, there are 4.3 million unemployed, 7 million underemployed, and 20.3 million either in “unpaid family work” (3.8 million), “own account” (12 million), and non-regular wage and salary workers (4.5 million); and the country is about to confront another round of fiscal crisis in 2010 with the deficit expected to reach P293 billion as per Finance Secretary Margarito Teves’s estimate. It could be remembered that the first fiscal crisis under the Arroyo government occurred in 2002 prompting Arroyo to promise, on Rizal Day, that she would not run again — a promise that she, of course, did not fulfill. Poverty has also worsened.
All institutions of government have likewise been warped by the impunity in corruption and bribery, electoral fraud, attacks on civil liberties and political killings. The Arroyo government has recorded the second highest number of extrajudicial killings at 1,118, second only to Marcos, and the third highest in enforced disappearances at 204. The Aquino government had the most number of enforced disappearances at more than 600 and the Marcos dictatorship second. However, only the Arroyo government has, as part of its counterinsurgency program Oplan Bantay Laya, clearly targeted legal political activists for “neutralization”. Marcos’s record of preemptively arresting leaders of activist organizations prior to planned protests actions pales in comparison to the Arroyo policy of subjecting all legal political activists to harassments, killings and abductions. The country may not be under martial law but it has become the most dangerous place for journalists. If the Arroyo government had its way — without the Filipino people protesting — civil liberties could have been severely constricted by now. She did try to experiment with martial law in Maguindanao but it was met by protests from a broad segment of society even as everybody feels the need for swift justice for the Amptuan massacre.
The divisions within the ruling elite have likewise deepened as manifested by the extreme isolation of the Arroyo government, the restlessness within the ranks of the Armed Forces of the Philippines (AFP) and Philippine National Police (PNP), and the six-cornered fight for the presidency. The Ampatuan massacre has raised the level of barbarity in Philippine politics. Arroyo’s fear of stepping down from power — thus her attempts at charter change and her bid for a Congress seat — is also a manifestation that the contradictions within the ruling elite have sharpened so much that she no longer feels secure after May 2010. Also, the strength of the CPP-NPA-NDFP has continued to grow despite Arroyo’s desperate militarist efforts to put an “end to the insurgency.”
While it would take more than a change in president to effectively address the worsening economic and political crisis, if Arroyo and her minions are able to get away with keeping themselves in power — by declaring a failure of elections, martial law, or charter change — the Filipino people would sink faster and deeper into the quagmire of backwardness and poverty. (Bulatlat.com)

Excess gov’t execs cost taxpayers P58 M a year

Excess gov’t execs cost taxpayers P58 M a year
Written by Jesus Llanto
Wednesday, 20 May 2009


The Office of the President has the most number of excess—unqualified—undersecretaries and assistant secretaries

The government could save as much as P58 million a year if it would remove all the redundant executives from the bureaucracy, a study by the United Nations Development Programme (UNDP) showed.

The 2008/2009 Philippine Human Development Report (PHDR), which was launched Wednesday in Quezon City, counted as many as 81 unneeded undersecretaries and assistant secretaries, most of them with the Office of the President.

More than half of these excess executives are unqualified for their positions, the study said.

The PHDR, called “Institution, Politics and Human Development,” said that aside from excess officials, the following factors have also undermined the quality of the bureaucracy at all levels in recent years: appointments made for political accommodation, an outdated compensation scheme, and the surge in the number of ad-hoc bodies, presidential consultants, and advisers.

The study noted that while only 131 undersecretaries and assistant secretaries are prescribed by law, the government had 222 incumbent employees occupying these positions as of December 2007. The figure represents an excess of 62 percent.
Ineligible

“If each draws an average of P722, 000 a year in salaries, allowances, and discretionary funds, then theses excess cost government an extra P58 million a year,” the study said.

The report also noted that more than half (56 percent) of these 222 department executives were “technically ineligible” to occupy their positions.

The Office of the President, the PHDR said, had the most number of excess undersecretaries and assistant secretaries at 31. Eighty-nine percent of them were ineligible for the position.

The study also said that the number of ad-hoc bodies and presidential advisers and consultants significantly increased in recent years.

“After peaking in 2002 at 175, there was a sharp decline in 2003 to 74 [ad-hoc bodies], attributed to the work of the Presidential Commision on Effective Governance (PCEG),” the study said. After the abolition of the PCEG in 2004, the number of ad-hoc bodies increased again and reached 85 in 2007.
Demoralizing

The significant increase in the number of consultants and advisers, meanwhile, started in 2002. Under the Ramos administration, the number of presidential consultants declined from 33 in 1994 to 27 in 1998. It reached 34 under the Estrada administration, but declined sharply to 15 during the early years of the Arroyo administration.

“The number of presidential consultants/ advisers has risen significantly since 2002, reaching an all-time high of 49 in 2008,” the study noted.

The study also warned against the creation of additional positions of presidential consultants and advisers. “Presidential consultants and advisers enjoy the title and authority, without accountability.”

Toby Melissa Monsod, one of the authors of the PHDR, said these appointments cause demoralization and destruction of initiative in the regular civil service.

“The practice of appointing non-career and non-eligible people into formal plantilla positions undermines the constitutional notion of ‘merit and fitness,’” Monsod said. She pointed out that about 10,000 positions are subject to presidential prerogative, which allows politicians to intervene in appointment process.
‘Perverse Incentives’

The study also identified the outdated compensation scheme as a factor in weakening the quality of government personnel. Paying low salaries, the government fails to retain its competent workers.

The government is the country’s biggest direct employer with 1.4 million workers.

“Perverse incentives in the civil service have weakened the quality of the bureaucracy at all levels in recent years,” the study said, adding that the compensation package for government employees pale in comparison with their peers in the private sectors.

“Salaries can be as much as 74 percent below comparative jobs in the private sector,” the study said, quoting a 2006 study by the Civil Service Commission.

“Most affected are directors, district engineers, school superintendents, college professors, prosecutors, state auditors, assistant secretaries, undersecretaries...people responsible for policy design, higher-level technical services, and the day-today management of the government,” the study said.

Other government positions suffering from low salaries are division chiefs, public lawyers, school principals, public health nurses, social workers, teachers, election officers, customs examiners, engineers, agriculturists, and those who are directly involved in the implementation of public programs.

The study said that there is a need to pass a law that would provide a new government classification and compensation scheme to restore professionalism and meritocracy in the bureaucracy.

Proposals for new salary standardization laws are pending in Congress. The proposed legislations seek to increase the salaries of government personnel and remove overlaps in salaries between positions, which resulted in instances where some subordinates receive higher salaries than their supervisors. (Newsbreak)

Oust Gloria Arroyo: Bishop Move, Checkmate?

Gloria must go: CBCP head
Says Arroyo hopelessly corrupt

Malaya 10/29/2008 BY GERARD NAVAL

ARCHBISHOP Angel Lagdameo yesterday called on Filipinos to start preparing for a new government, citing the need for transformation amid rampant state corruption.

Reading a prepared statement at a press conference, the Jaro (Iloilo) bishop said there is a real need to have a new government as the current one has been severely stricken by the "social and moral cancer" that is corruption.

"In response to the global economic crisis and the pitiful state of our country, the time to rebuild our country economically, socially, politically is now. The time to start radical reforms is now. The time for moral regeneration is now. The time to conquer complacency, cynicism and apathy and to prove that we have matured from our political disappointments is now. The time to prepare a new government is now," he said.

Asked if his statement is tantamount to calling for a public uprising to force President Arroyo to step down, Lagdameo said it is up to the people to decide what course of action to take.

"Kailangan ang taong bayan ay magsama-sama kung paano sila mag-response together dun sa sulat namin na sinabi naming communal discernment and communal action," he said in an interview.

Lagdameo clarified he was making the statement as a bishop and not as president of the Catholic Bishops Conference of the Philippines.

During the press conference, he was flanked by four other prelates — Lingayen-Dagupan Archbishop Oscar Cruz, and Bishops Joel Baylon (Masbate) and Socrates Villegas (Balanga), and Bishop emeritus Jose Sorra.

Lagdameo said the presence of the four signifies their concurrence to his statement which he said was spurred by a letter sent to him by the Association of Major Religious Superiors in the Philippines.

The AMRSP letter said: "At this time when people are losing hope and are becoming cynical and apathetic, a prophetic word from you will be like a Pentecost event, a rekindling of hope and an inspiration and impetus to take active part on social transformation."

Lagdameo said corruption has been continuously growing despite repeated condemnation by the Catholic Church and calls for widespread reform.

"In the past few years up to today, we have watched how corruption has become endemic, massive, systemic and rampant in our politics. The faces and symptoms of corruption are overprized projects, multi-billion scams of various kinds, election manipulations, anomalous transactions, bribery of both high and low, unsolved murders of media practitioners. Corruption is a social and moral cancer," Lagdameo said.

He noted there have been at least three CBCP statements denouncing corruption.

Lagdameo said he believes Arroyo is a corrupt leader and has done little in preparing for a new government that could make a transition away from a corrupt one.

In his statement, Lagdameo said corruption is the reason the country could not get out of the quagmire it is in.

"Corruption impedes economic development, worsens income inequity and poverty, endangers public order and safety. Corruption results in bureaucratic inefficiency and demoralization," Lagdameo said.

The bishops said they are hopeful new leaders will emerge in the process of "liberating" the country from the claws of corruption.

"In spite of the seemingly hopeless and negative prognosis, our liberation may yet serendipitously happen. We are dreaming, praying and hoping that our country may yet have the liberators. Yes, liberators who will, in a courageous peaceful way, effectively and uncompromisingly reform our country," they said in the statement.

Cruz said corruption under the Arroyo administration is something that cannot be dealt with by the human justice system alone.

"Corruption in such an extensive degree in the Philippines is a crime that cries to heaven for vengeance. Corruption in this country has become endemic, systemic, from top to bottom in government. Perhaps they may be given the punishment they deserve by the human justice system, but that’s not enough. Someone else in the Higher Authority will punish them as they deserve," said Cruz, former CBCP president.

The known Arroyo critic said it was not too long ago when the President received the "distinction" of being the most corrupt president in the country’s history.

"Though our country is at the 11th place of the most corrupt from the bottom, we even have a gold medalist of corruption in our national leader. To say that the Malacañang occupant is a follower of corruption and not a leader in corruption is already asking too much. Perhaps, if this is said, it will take someone from the moon to believe that the head of corruption is down below and not above," Cruz said.

Press Secretary Jesus Dureza pooh-poohed the4 statements. He said: "The President prefers to focus on her work rather than waste time on criticism and statements of critics like the reported claim of Lingayen Archbishop Oscar Cruz that President Arroyo is corrupt."

"We will continue to focus on our work for the poor and address a bigger issue which is addressing this global crisis. It is up to them to make (such statements). The priority of the President and the government now is to attend to the bigger issue which will be determinative of our future as a nation," he said.

Villegas said they are hoping their statement will continuously bother the public.

"We are not here to bring you peace. We are here to disturb you. I’m praying to God that after this meeting, may the Lord trouble you because the trouble that comes from the Lord is going to make you a better person and it’s going to make the country a better country," said the protégé of Cardinal Jaime Sin, archbishop of Manila.

Villegas said that with the current state of the government, there must be very drastic and dramatic actions from each and every one.

"If we have been only half less corrupt, we would have more money to feed our children, more money to put up schools, more money to bring medicines to hospitals. The problem is not population. The problem is corruption. Just cut the corruption in half and we would have enough money to take care of the poor," Villegas said. – With Jocelyn Montemayor

Resign Gloria Macapagal Arroyo!

Banner from Philippine Experience blogsite

Philippine bogus President Gloria Arroyo has no moral authority to lead our divided nation. Political scandal, scams and anomalous transactions under her inept corrupt regime is no longer acceptable. She is dragging the Senate investigation on Hello Garci political scam and China's ZTE Corp. broadband scam. The Arroyo government is run by thieves and Mafia-like cronies.

IBON Survey: Most Filipinos Want Arroyo To Step Down Due To Corruption Charges

Recent corruption scandals besetting the Arroyo administration have led most Filipinos to call for President Gloria Macapagal-Arroyo to step down, according to the results of the latest IBON survey.
Asked if they were aware of calls made recently by members of the Church and other sectoral groups for Pres. Arroyo to resign from office and face corruption charges levelled against her, 75% of the total 1,503 survey respondents said yes.
Of these, 77.4% said they agreed with such call to step down.
Various interfaith and sectoral groups such as Solidarity Philippines, Concerned Citizens Group, United Church of Christ in the Philippines, among others, have called for a rejection of what they called as Arroyo’s morally bankrupt government.
The IBON nationwide survey was conducted from January 7 to 14, 2008, with 1,503 respondents. It has a margin of error of plus or minus three percent.

House Speaker Jose de Venecia Ousted

The war among the thieves has begun. I smell blood. House Speaker Jose de Venecia (JDV) was ousted and spills election fraud beans and graft and massive corruption of the Arroyo administration. Malacanang orchestrated the ouster as revenge against Jose DeVenecia. JDV’s son Joey DeVenecia implicated presidential husband Miguel Arroyo in the $329 M NBN-ZTE broadband scam. What’s next? The 4th impeachment complaint against Gloria Arroyo this year is highly possible. JDV and his Lakas Party loyalists may join the opposition. There are presently 30 opposition members in the House of Representatives. It needs about 80 votes for the impeachment case to prosper and forwarded for trial in the opposition dominated Senate. Gloria Arroyo expects a stormy political climate until her 2010 term ends. V for De Venecia’s vengeance!

How lawmakers voted in vacating Speaker's seat

Sen. Obama Wins Iowa

Democratic presidential candidate Sen. Barack Obama tops Iowa caucus.

Sen. Panfilio Lacson For President 2010

“My own decision to run in 2010 will depend on three considerations -- intent, means and opportunity. If you ask me if I have the intention, the answer is yes,” Lacson said Sunday.
He said he would “definitely go for it” should “all three present themselves at the proper time.” Philippine Daily Inquirer

Resign Gloria-Noli Petition

A petition is now circulating online for the immediate resignation of President Gloria Macapagal Arroyo and Vice President Manuel "Noli" de Castro Jr., with Sen. Antonio Trillanes IV kicking off the signature drive.

The petition, started last Sunday by "Juan de la Cruz" on the Web site PetitionOnline , also called for the holding of special "snap" elections within 60 days.

GMA TV NEWS

Senators revive call on Gloria to resign

The Philippines’ political and religious leaders want unpopular leader Gloria Arroyo’s corrupt practices to end. The majority of the Filipino people want her ousted. We are just waiting for the knock-out punch, impeachment or extra constitutional means. Most likely a combination of people and military power will finish her off. Only time can tell. I think the GMA loyalist generals won’t fight until the last mans standing. They are political generals without followers. Gloria is lucky if she can survive politically in the current payola scandal.

Senators revive call on Gloria to resign
BY JP LOPEZ
SENATORS yesterday renewed demands for President Arroyo to resign, saying her "misgovernance" is pushing the country to the brink of political upheaval.
"President Arroyo should resign and turn over the government to Vice President de Castro as caretaker until 2010," Senate minority leader Aquilino Pimentel Jr. said.
Majority leader Francis Pangilinan said Arroyo’s resignation is the only constitutional solution to avert civil war. Malaya
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The True State of the Nation

Photo: Arkibong Bayan

Gloria’s First World in 20 years pure fantasy

By Chito Lozada Business Editor

Daily Tribune 07/24/2007

The most striking part of President Arroyo’s policy speech in the State of the Nation Address yesterday was her target of putting the Philippines in the ranks of First World nations in 20 years, which an economist described as an obvious publicity spin.

University of the Philippines (UP) economics Prof. Benjamin Diokno, who was Budget secretary during the term of deposed President Joseph Estrada, said the economy is far from going the path of an industrialized nation.

“Forget the First World status in 20 years. For the next three years, she’ll be lucky if she can make up for her neglect of educa-tion, health and infrastructure,” Diokno said.

He noted that for every P1-tax that the Arroyo administration has collected,

93 centavos went to debt service.

He noted that based on a recent UP research, the historical growth of the Philippine economy from the Nineties to the present, averages only slightly more than four percent even if only non-crisis years are included.

Diokno said except for 2004, the Arroyo administration has consistently failed to meet its own gross domestic product (GDP) growth rate targets, which is used as basis in tracking economic growth.

“The gap between the promise and actual performance has been widening and it would be much wider if no further reforms are adopted. Given how weak the government is, however, further reforms are highly unlikely,” Diokno asserted.

He noted that the economy has not performed well enough to improve the lives of the poor.

According to the Asian Development Bank’s (ADB) Asian Development Outlook 2007, which was released last March 27, the Philippine economy has been growing only moderately which was not enough to address the country’s worsening problems of unemployment, underemployment, and poverty, Diokno said.

The economy is being hobbled by fiscal mismanagement in government which resulted in the collection of higher taxes, thus reducing the disposable income of Filipinos.

“Every Filipino is now paying more taxes, effectively reducing the money in his pocket, and as a result, reducing his overall welfare,” Diokno said.

He said wrong priorities had made the plight of Filipinos worse. The Arroyo administration is spending less for education, basic health care and public infrastructure, and more for debt service, he said.

The fiscal mismanagement was reflected in the Arroyo administration’s failure to get congressional support for its budget plans.

“It operated on a reenacted budget for three of the six years it has been in power. The national budget is an important tool of public policy, it is supposed to provide the flesh and blood to the skeletal medium-term plan or vision of any government,” according to Diokno.

By agreeing to run the government without an approved budget, the critical role of the budget is lost, he added.

Mrs. Arroyo incurred the highest budget deficits, measured in terms of national government deficit, public sector borrowing requirements and consolidated public sector deficit, in recent Philippine history, Diokno said.

Her priorities were misplaced. The President neglected education, health and public infrastructure, thereby propelling the Philippine economy on a lower growth trajectory. Debt servicing became the government’s top priority, he said.

The Arroyo administration incurred the highest budget deficits — which peaked in 2002— in recent Philippine history. In 2002, the budget yawned to a P214 billion deficit, the biggest ever for a Philippine administration.

“After creating such a monumental fiscal mess, Mrs. Arroyo now wants credit for cleaning it up,” according to Diokno.

To cover the fiscal disaster, Mrs. Arroyo has to rely heavily on borrowings.

“When Mrs. Arroyo assumed power in 2001, the national government’s outstanding debt was P1.9 trillion; it now stands at P3.9 trillion, which means the national government’s debt rose by P2 trillion during Arroyo’s watch.

Interest payments as percent of GDP peaked at 5.5 percent in 2005, up from 3.6 percent in 1999 4.2 percent in 2000, Diokno added.

The result is the current debt servicing level quadrupling since Mrs. Arroyo took power in 2001.

The P854.4 billion spent to service the national government’s debt, covering interest and principal, in 2006 is almost equal to what it collected in taxes of P860 billion during the year.

Put differently, for every 100 pesos collected in taxes, P99.35 went to debt servicing, he said.

Government spending per student was P5,830 per student during the administration of former President Joseph Estrada compared to P5,467 during the present administration.

The combined per capita health spending, adjusted for inflation, in 2000 prices, was the highest during the term of Estrada; it dropped during Mrs. Arroyo’s watch. It was P201 during the term of Estrada against P184 for each Filipino in the Arroyo administration.

Poor priorities helped push the economy to uncompetitiveness in the world stage.

According to the World Economic Forum, the Philippines’ ranking in global competitiveness, has been falling, from a ranking of 48 in 2000 to 71 in 2006.

By contrast, the country’s neighbors in the Association of Southeast Asian Nations (Asean) garnered the following rankings in 2006: Singapore 5, Malaysia 26, Thailand 35, and Indonesia 50.

Poor governance and the dismal state of public infrastructure have deterred foreign direct investment, Diokno said.

The country’s investment rate is “extraordinarily low at about 15 percent,” as pointed out by the Joachim Von Amsberg, World Bank’s country representative, at the Philippine Development Forum held in Cebu last March 8 to 9.

The domestic investment rate of the Philippines has dropped from 19 percent in 2001 to a record low of 14.8 percent in 2006 while those of its neighbors have continued to rank from 20 percent to 40 percent based on ADB’s Asian Development Outlook 2007.

During the last six years, the economy has not performed well enough to make a difference in the lives of most Filipinos, especially the poor, Diokno said.

Not enough jobs were created, inflation remained high, and consequently the 2006 misery index is higher than the 2000 level.

Fitch says Philippine fiscal performance disappointing
RP stocks fall, dragged by Fitch statement on deficit

Political Horse Trading in the Senate

Welcome to the Republic of the Philippines’ prostituted democracy. Political horse-trading has shifted in high gear after the polls. Politicos have sold their souls to protect their interests. Malacanang is sabotaging the opposition’s victory in the senate. The real opposition becomes the minority. JUDASAN is the name of the game. Losers take all! It makes me puke.

Filipino old proverbs say: “Ako ang nagbayo ako ang nagsaing saka ng maluto'y iba ang kumain“. Sen. Juan Ponce Enrile and Miriam Santiago are feasting like hungry vultures in the disintegration of the opposition. Divide and rule tactics at work. This is the real politik in the quest for senate presidency. The GO-UNO is a coalition of different political parties. Malacanang operatives are exploiting GO-UNO weakness’ point via compromise and horse trading. The opposition should not fall onto Gloria Arroyo’s sinister plan. She wants a tame Senate and feels safe under Manny Villar leadership.

A peek at Senate committee chairmanships under Villar

BY DENNIS GADIL

SEN. Manuel Villar will endorse Senators-elect Alan Peter Cayetano and Francis Escudero to head the Senate committees on education and on ways and means if he wins a second term as Senate President, a Senate source said yesterday.

Cayetano is secretary general of Villar’s Nacionalista Party. Escudero is a stalwart of Eduardo Cojuangco’s Nationalist People’s Coalition.

The education panel became vacant after Sen. Franklin Drilon relinquished the Senate leadership to Villar under a term-sharing deal.

The ways and means panel was chaired by Sen. Ralph Recto who lost his re-election bid.

Cayetano said he and Escudero would not mind if they fail to get the major committees. He said he believes the committees are still subject to consultation.

"Meron o wala (committee), okay lang sa amin. Sanay kami ng walang committee," Cayetano said.
Escudero and Cayetano are the outgoing minority and deputy minority leaders of the House of Representatives.

The source said Sen. Juan Ponce Enrile, an ally of the administration, would get the Senate committee on finance previously occupied by Drilon.

The source said as of last week, the Senate blue ribbon committee is deemed "vacant" after the chairman, Sen. Joker Arroyo, reportedly agreed to pass the torch to his colleagues in the opposition. Arroyo could not be reached for confirmation of the report.

The source said opposition senators would still pick among Pimentel, Sen. Panfilo Lacson and Sen. Francis Pangilinan on who should chair the Blue Ribbon committee.

Pimentel will likely remain as minority leader.

The source said Sen. Jinggoy Estrada would be the incoming Senate pro tempore, last held by Sen. Juan Flavier.

Sen. Eduardo Angara has expressed preference to chair the committee on agriculture in exchange for supporting Villar. The post was previously held by Sen. Ramon Magsaysay Jr.

Villar has declined to confirm reports that he has already the support of 14 senators, which would seal his second term as Senate president.

He said anything can happen before the 14th Congress convenes on July 23.

He said even the distribution of Senate committees would still be subject to consultation.

Enrile said Villar is expected to keep his position as 14 senators will certainly vote for him.

There are only 22 senators as Alfredo Lim won the mayoralty race in the city of Manila.

Genuine Opposition spokesman Adel Tamano said Makati City Mayor Jejomar Binay, president of the United Opposition, and GO campaign manager Sen. Sergio Osmeña would host a "dialogue" to unite the Villar and Pimentel blocs.

Tamano said this would serve to remind opposition senators of the importance of fielding a common candidate for Senate president. "Hindi pa tapos ito. Each group has to reach out," Tamano said.

Osmeña blamed Pimentel’s backers namely Lacson, Loren Legarda and Manuel "Mar" Roxas II for creating "fissures" in the opposition bloc by picking on Villar.

"It’s a wrong motivation. Ano masasabi nila kay Manny, na nakikipag-usap sa admin? C’mon, hindi ba sila ang unang kumakausap sa admin, kaya di nila masisisi si Manny to react that way," Osmeña said in a radio interview.

Osmeña said the opposition leadership could also not blame Villar for not reaching out to the three senators.

Lacson is said to be pushing for Pimentel in exchange for the Blue Ribbon committee. Legarda hopes to reclaim the post of majority leader. Roxas reportedly wants the finance committee.

At the Kapihan sa Senado, Pimentel also took to task Roxas, Lacson and Legarda for complicating the race for the Senate presidency.

"The reason they want me to take a crack at it (Senate presidency) is that at 73, my eyes do not moist for the presidency anymore," Pimentel said.

Roxas, Lacson and Legarda reportedly have presidential ambitions in 2010.

Pimentel said the Senate president is entitled to many legal perks useful to any presidential ambition, including chairmanship of the Commission on Appointments.

He said Villar’s Senate presidency is "a little controversial" because he has aligned with administration senators.

But the choice of Senate president remains a numbers game, he said.

"It is reported that 14 senators are backing Villar. If that is true, congratulations to Manny," he said.

Asked if he considers Villar, who ran under the Genuine Opposition, to still be with the opposition, he said: "He has always said that he is with the opposition. Subject to proof to the contrary, I will take him at his word."

He maintained that the incoming Senate should be an opposition Senate. "That was the message of the people during the last elections," he said. – With JP Lopez
MALAYA 06/29/2007

Political Dynasty

Political Dynasty
Political dynasties are well-entrenched in the Philippines since colonial times. Even anti-dynasty law is enacted, political clans can always circumvent the law. Proxy candidates have been fielded to hold the seat until the incumbent can run again. Political clans continue to dominate electoral contests in the countryside by alliances thru convenience and coalition with dominant political party or ruling party. Political parties are like chop suey or pancit log-log. A genuine national democratic revolution may change the course of Philippine politics.

Political fiefdoms dig in

By the Center for People Empowerment in Governance (CenPEG)
One of the biggest gainers in the May 14 mid-term elections is the Macapagal-Arroyo political clan, now headed by incumbent President Gloria M. Arroyo. With two sons of Mrs. Arroyo winning House seats – Diosdado "Dato" Arroyo (1st District, Camarines Sur) and reelectionist Rep. Mikey Arroyo (2nd District, Pampanga) – and reelectionist Rep. Ignacio "Iggy" Arroyo, a brother-in-law, regaining his seat (5th District, Negros Occidental), the Macapagal-Arroyo clan expands the political dynasty began by patriarch Diosdado Macapagal who was elected to Congress in 1949. Diosdado eventually became the country's fifth President in 1961. Ignacio Arroyo is reportedly being groomed to succeed House Speaker Jose de Venecia who has also clinched his reelection bid (4th District, Pangasinan).
The clan of Macapagal-Arroyo has been in power for 58 years, broken only by the Marcos dictatorship. Even if the clan has spun out its political presence in Camarines Sur and Negros, it has a lot of damage control coming up what with the province of Pampanga - considered Mrs. Arroyo's bailiwick and father Diosdado's birthplace - going to a new governor, Fr. Ed Panlilio. "Among Ed" Panlilio, the first Catholic priest elected in government, won by a small margin over Lilia Pineda and incumbent Gov. Mark Lapid, both Arroyo allies. Pineda is married to Rodolfo "Bong" Pineda, alleged to be a top jueteng (illegal numbers game) lord.
Votes in nearly 50 of the country's 80 provincial posts have been counted along with those cast in many House district races. Many of the winners, including mayoralty candidates, have been proclaimed by the Commission on Elections (Comelec). Partial results of the elections show reigning political dynasties still well-entrenched, a few of them trounced but only to be replaced by new political clans while others have kept their fiefdoms with even more elective posts taken.
Except for new political figures such as Fr. Panlilio and Grace Padaca, who has regained her governorship of Isabela but whose proclamation has been stalled, the fraud-ridden mid-term elections saw no qualitative change in the structure of political dynasties that have dominated Philippine politics for over a century. In fact fraud and violence, in many cases, according to poll watch groups, backed by military and police forces, proved to be decisive in enabling political clans including many administration candidates to dig in.
Who's in, who's out
A look at the election outcome in some of the political turfs would show whether the geopolitical balance of power has changed even without necessarily shaking the infrastructures of political dynasties in those areas:
Tarlac: Victor Yap, who also belongs to a political clan, beats former Rep. Jose "Peping" Cojuangco, Jr., brother of former President Corazon Cojuangco-Aquino. Not to worry, Cojuangco, Jr.'s setback will not affect the political hold of the Aquino-Cojuangco dynasty, with Benigno "Noynoy" Aquino III expected to win in the Senate. Moreover, Jeci Lapus, is elected congressman (3rd District, Tarlac). He is a cousin of the late Sen. Benigno Aquino, Jr., and brother of former representative and now Education Secretary Jesli Lapus. Monica Louise Teodoro, wife of Gilberto Teodoro, Jr., also wins a seat (1st District, Tarlac). Teodoro, Jr., is a nephew of former Marcos crony Eduardo "Danding" Cojuangco, Jr., said to be the country's top political kingpin. "Danding" Cojuangco's son, Marcos Jr., is reelected congressman (4th District, Pangasinan).
Ilocos Sur: Despite doubts Ilocos political lord and outgoing Gov. Luis "Chavit" Singson will make it in the Senate under the Team Unity (TU) ticket, son Ronald is elected representative (2nd District, Ilocos Norte), brother Jeremias is elected vice governor, and cousin Eric retains his House post (2nd District, same province). A sister, "Honey Girl" Singson-de Leon, sits in the Arroyo government as chair of the Philippine Charity Sweepstakes Office (PCSO). Another Singson, Allen, wins as mayor of Candon City. The Singsons trace their ancestral roots to Joaquin Ayco, a 17th century merchant from China. Their forefathers have ruled the capital city, Vigan, as far back as the 1800s.
Nueva Ecija: Rep. Aurelio Umali wins as governor at the expense of a member of the Joson clan, Vice Gov. Mariano Cristino Joson. Another Joson, Tomas III, also loses his bid for governor of the province. But it's not all lost to the Joson dynasty that has lorded over Nueva Ecija for 47 years: Eduardo Nonato Joson (Tomas III's brother) is elected to the House (1st District, Nueva Ecija) while Eduardo Basilio Manuel is reelected mayor of Quezon town.
Bicol Region. There are both upsets and setbacks among political clans in this region. Clobbered are the Espinosas of Masbate with Rep. Emilio Espinosa, House deputy speaker for Luzon, beaten by Dr. Elisa Olga Kho, wife of outgoing Gov. Antonio Kho. Maloli Espinosa-Manalastas, eldest daughter of slain Rep. Moises Espinosa, loses to the new governor's husband, in the congressional race (2nd District, Masbate).The Espinosas were in power since the 1930s with family patriarch, Emilio Espinosa, Sr., elected to the 10th Philippine legislature. The Khos are also a long-time political clan. Rep. Luis Villafuerte is reportedly headed for a landslide (2nd District, Camarines Sur); Rep. Arnulfo Fuentebella and Rep. Felix Alferol, Jr. (3rd District and 4th District, Camarines Sur) also regain their seats. Villafuerte, a former Marcos crony, is at odds with his son, Luis Raymundo, Jr., who has won as governor. Meanwhile, Jesse Robredo is reelected mayor of Naga City against Jojo Villafuerte. The Fuentebellas and Robredos are now political rivals, despite their being relatives with a common Chinese ancestry dating back to the 19th century. The Fuentebella patriarch, Jose, won as assemblyman in 1909.
La Union: La Union in northern Philippines has been the fiefdom of the Ortegas since 1934 when Francisco Ortega first won as congressman. Son Rep. Manuel Ortega wins as governor while Pablo Ortega, brother of Francisco Ortega, Jr., is elected mayor of San Fernando, the capital city. Fifteen members of the Ortega clan ran for various elective positions and party-list (Abono) in La Union, Baguio City and Manila in the May 14 elections.
Cebu: Gwendolyn Garcia, who belongs to the pro-Arroyo Garcia clan, is reelected governor. Gwendolyn's father, Pablo Garcia, served as governor (1995-2004) and is running for Congress (2nd District) in the May 14 elections while brother Pablo John is vying for a House seat (3rd District). Political rivals in Cebu are the extended clan of the Osmeñas, Del Mars and Dela Ramas; the Cuencos; and Gullases. All of them have also fielded several candidates in the mid-term polls.
Others from political families who have won or been reelected are: Rodolfo Plaza and Democrito Plaza, won as congressman and mayor of Butuan City, respectively, Agusan del Sur; Jose Ma. Zubiri, Jr., Jose Ma. Zubiri III, and Ignacio Zubiri, governor, congressman (3rd District) and Malaybalay City vice mayor, respectively, Bukidnon; Ramon Durano III and Ramon Durano, Jr., mayor and vice mayor of Danao City, Cebu; Rogelio Espina, governor of Biliran; Julio Ledesma IV, congressman (3rd District, Negros Occidental); Raul Gonzales, Jr., congressman (Iloilo); Carmencita Reyes, congressman (Marinduque); and Vilma Santos, governor of Batangas, and wife of reelectionist Sen. Ralph Recto, a member of the Rectos whose political life dates back to Claro M. Recto (assemblyman, 1918).
Philippine politics has long been dominated by political dynasties numbering about 250 – or 0.00001667 percent of the country's 15 million families - with each of the country's 80 provinces kept under the thumbs of at least one dynasty. In turn, these political dynasties run a patronage system of local political families and networks of supporters bound together by interlocking political and commercial interests. ABCS-CBN News

Gloria Arroyo Where's Jonas Burgos?

Photo from Malaya DENR: Burgos kidnap vehicle is with Army

Nobody is safe under repressive Arroyo regime. Political dissenters are vanishing without a trace and the toll is rising. The discredited Arroyo regime “unofficially” declared war against the Filipino people who opposes government abuses, repressive policies, fraud and plunder. The common tao can no longer rely on government authorities mandated to protect, serve and save lives and properties. It appears that the police and the military establishment are leaning towards to protect bogus President Gloria Arroyo’s personal interest and political survival.

A one centavo question: To protect and serve - Who?

AFP chief orders soldiers: Cheat for TU bets

The current political climate is worst than the fraudulent 2004 presidential election. It’s evident that the military leadership is directly involved in partisan politics. Eleven soldiers were arrested and one army corporal killed in a firefight with Cibac party-list supporters in Bulacan province. Soldiers were removing Cibac campaign before the shot-out. The military has no business in partisan politics except to vote. The military, police and election body Comelec will definitely cheats in declared election hotspots areas in favor of Gloria Arroyo candidates. Defense chief Ebdane and AFP chief Esperon were involved in 2004 presidential election vote-rigging in Mindanao Island.

SWS survey: 6 GO, 4 TU bets likely to enter ‘Magic 12’

AFP chief orders soldiers: Cheat for TU bets—Trillanes
05/05/2007
Electoral cheating by the Armed Forces of the Philippines (AFP) may even be worse in May and more massive in areas where the military will be in control, compared to the electoral cheating in 2004 a detained Magdalo leader who is running for a Senate seat under the Genuine Opposition banner, yesterday said in an interview with Defense reporters held at his detention quarters.
In that interview, former Navy Lt./SG Antonio Trillanes IV bared that the AFP Chief of Staff Gen. Hermogenes Esperon Jr. had already issued a radio message to ground troops to engage in electoral fraud to ensure a victory for President Arroyo’s Team Unity senatorial bets, who are all lagging behind in the senatorial race.
He disclosed that, like 2004, the cheating operations would be conducted in certain areas in Mindanao,” including the autonomous region.
This was an echo of the warning issued yesterday by a National Movement for Free Elections (Namfrel) chairman in Lanao del Sur who had blown the whistle in the Mindanao cheating operations of 2004, saying bloodshed could take its toll in Mindanao if the Arroyo government continues to ignore
requests for more police personnel.
According to Namfrel chair Abdullah Dalidig, bloodshed could mar the elections even as the local candidates and their private armies have now resorted to vote buying.
“The elections could be bloody,” Dalidig said yesterday, pointing out that the Comelec cannot enforce the gun ban.
He said that as early as three days ago the candidates were already on a “vote buying spree” with some candidates paying as much as P10,000 to P20,000 per voter.
“Everybody is spending millions to get the votes,” he stressed.
Dalidig also said that as in the 2004 elections, the big problem of the Namfrel in Mindanao is the issue of “double registrants” or “flying voters.”
He said there are at least 100,000 double registrants in Lanao del Sur alone.
This developed as Mon Casiple, convenor of Bantay Election 2007, said that the Comelec is laying the ground work for massive cheating during the election.
Casiple said among the tell-tale signs of these “cheating plan” is the deliberate failure of the poll body to release the voters list and the list of precincts, many of which have been grouped in clusters.
Casiple warned that as a result of this, many ghost precincts could be resurrected by the Comelec without the knowledge of the voters and other election officials at the precinct level.
He said ballot boxes from these ghost precincts could contain completely new sets of “prefabricated” certificates of canvass.
But it was a different type of cheating that Trillanes spoke of.
He said he was informed of this new order from Esperon to cheat for the TU candidates by his comrades in arms, adding that it will be the battallion commanders who will be surfacing to show the radio message issued by Esperon for the soldiers to cheat.
But military sources close to the Trillanes camp also yesterday told the Tribune that a copy of Esperon’s radio message to the ground troops will soon be exposed by a group of retired generals, as any active AFP officer surfacing before the public to denounce this military intervention in elections knows he will be soon be charged and detained on trumped-up charges.
The detained officer however said that the reason the battalion commanders leaked this radio message from Esperon to him was precisely to preempt the cheating operations and prevent the plan from proceeding.
The way the cheating plans go, as revealed by Trillanes, the TU 12-0 victory will be carried out in “areas under military control. That is the directive from the chief of staff and they (soldiers will obey it).
But there is some resistance from the officers and men, Trillanes explained, which is why the radio message was leaked.“They (battalion commanders) don’t want to be part of the cheating operations and they hope that by making this public, the plan to cheat won’t push through,” Trillanes said.
An item in the Magdalo blogsite also earlier carried another radio message purportedly from the Commanding General, Philippine Army, to all units, ordering them to tear down the posters of Trillanes.
Part of the message stated: “ITR, Destroy/remove all campaign posters of LTSG Trillanes that are posted near the unit bases under your command. This is to show the general public that the AFP is not supporting or endorsing the candidacy of subject officer.”
Trillanes, said to be one of the leaders of the July 2003 Oakwood mutiny who now faces a military court for mutiny and a civilian court for coup d’etat charges, said that with this new radio message from Esperon, what can be expected in May is “massive cheating” and even “more massive than 2004.”
Almost immediately, the Trillanes charge was quickly denied by the military public information chief, Lt. Col. Bartolome Bacarro who challenged the Magdalo officer to bring out the evidence.
Bacarro said: “We challenge Trillanes to come up with evidence, to show that there is such a directive (from the chief of staff).”
He added that the allegation is serious, but doubted whether this could be substantiated by Trillanes.
The military sources said Baccaro may have to eat his words when the group of retired generals come up with the copy of the radio message from Esperon.
But others said that even with the evidence, this would be denied by the AFP leadership.
“If the Hello Garci tapes, which were already the proof that the AFP chief was involved in the 2004 cheating operations, was not taken as proof, and even Mayuga cleared him, what else can be expected?,” but they stressed that no matter the denials of the AFP, the copy of the radio message will be bared to the public.
Esperon was one of four military generals whose names were mentioned in the infamous “Hello Garci” tapes that detailed the conversations between President Arroyo and her cheating operator, former Comelec commissioner Virgilio Garcillano, who is now running for a seat in Congress in a district in Bukidnon, Mindanao.
It is said that for his role in the 2004 cheating operations, Esperon was rewarded with the post of AFP chief of staff. Two other generals were also promoted. The only general who was not promoted and was, in fact, charged with a military violation for testifying before the Senate on the poll cheating operations was Marine Gen. Francisco Gudani, who has linked up with a poll watching group for the May elections.
Trillanes also told reporters that soldiers who will not follow the orders of Esperon to cheat would be facing charges.
But he predicted that the cheating may even be worse because there are more votes to add to the votes of the TU candidates.
He also said that while the soldiers who are ordered to cheat may do so, they may make the cheating so sloppy to be found out, adding that even with the order of Esperon, the military chief can’t be too sure of all of his soldiers.
But he also said that the Genuine Opposition will be given a copy of this radio message and will have to discuss this matter.
Meanwhile, the US Government, expressing concern over the escalating political violence, said it continues to hope for fair, clean and credible polls.
The US government is seriously considering monitoring the May 14 elections and is planning to field some of their officers from the US embassy in Manila as poll observers in various polling precincts.
In a chance interview in Malacañang , US ambassador to Manila Kristie Kenney said the US government is concerned about the coming polls as it wants to ensure that these elections are credible and clean.
Kenney said they will dispatch some personnel from the US embassy to monitor the election.
“This is a country of peace and what we would hope for our friends, our Philippine colleagues, who live here would go for peaceful election, one that is transparent and fair, We would have some of our embassy folks go out to observe. They will be monitoring to see how the voting goes,” Kenney said.
Kenney said the US government is concerned about the country’s political violence and is hoping that it will not further escalate. “I’m watching the elections with interest, that’s a great time for people to exercise their democratic right and I think we’re all concerned when you see violence. Let the people express their views in the way our citizens would do it,” she said.
“ I don’t know any details. I think it’s always sad to see violence. I think, generally, this is a very peaceful country. People are compassionate and kind and I hope that spirit will carry on until election. It’s one thing to have differences of opinion, but that’s what democracy is all about,” she said. With Gerry Baldo, Sherwin C. Olaes and Tribune wires

Emerging police state under Arroyo government

Antonio Trillanes For Senator

“Tapusin ang the Greatest Road User’s Tax Robbery”
“Trillanes, Bayang Malinis.” Gloria Arroyo government’s scam in the P365-million lampposts at Cebu International Convention Center .

“Tapusin ang the Greatest Heist”
“Trillanes, Bayang Malinis.” The Gloria Arroyo administration squandered P27 billion of the P35-billion ill-gotten wealth of the late strongman Ferdinand Marcos. The recovered 35 billion pesos ($683 M) from Swiss bank solely for the purpose of indemnifying the martial-law victims of human rights violations and to fund comprehensive agrarian reform program (CARP). Hello Joc-Joc Bolante! Masarap ba ang liquid fertilizer?

“Tapusin ang the Greatest Railroad Robbery”
“Trillanes, Bayang Malinis.” Gloria Arroyo’s North Rail Project allegedly over-priced by P29 Billion ($503 million).

Antonio "Magadalo" Trillanes

Saturday, 02 12, 2005 Daily Tribune
GMA’s China North Rail project reeks of graft
HOUSE LEADER IMPLICATED IN ALLEGED P29-B RAIL OVERPRICE
The gloves are really off.

Opposition Sen. Juan Ponce Enrile yesterday heatedly denounced the North Rail project and the half a billion dollar loan secured by President Arroyo from the Chinese government during her state visit to China late last year.

Speaker Jose de Venecia Jr. was also linked to the alleged overpricing of $503 million or P29 billion in the foreign-funded North Rail Project has after his name, as well as one William Go, cropped up during the hearing in the Senate yesterday.

Enrile, in exposing the alleged P29-billion North Rail scam, vowed that it won't matter to him if he exposes the high and the mighty in government in this scam, saying “I will expose all of you before the Filipino people. I am old and I fear no one.”

Enrile stunned senators after he had disclosed that apart from the high 3 percent interest the Chinese Bank exacts from the government, the Department of Finance (DoF) also imposed a 1percent additional interest in the project cost, a move lawmakers in the upper chamber found questionable since this insertion was never part of the original arrangement.

With the additional 1 percent, this will increase the capital cost by 25 percent, Enrile stressed, adding the cost mentioned is still separate and distinct from the $82 million that will be borne by the government for undertaking the project and some P7.3 billion funding requirement for relocation of almost 41,000 affected families.

It was admitted by Arroyo officials in an earlier hearing that there was no money with which to fund the relocation of the squatters in the North Rail area.

Enrile, in exposing the North Rail project anomaly, said the loan for the project that was secured by Mrs. Arroyo from China's Export-Import Bank (Exim Bank) through the intercession of the government of People's Republic of China (PROC) during her state visit, is said to be a pet project of De Venecia.

The disclosure is seen to steer the ongoing investigation into the hands of the powerful blue ribbon committee given the alleged big names in the government supposedly involved in the purported scam.

In the hearing conducted by urban planning, housing and resettlement committee headed by Sen. Rodolfo Biazon, De Venecia was alluded to as the official behind this alleged highly-anomalous deal.

Enrile revealed this information reached his office as he questioned the one-percent additional interest rate the DoF had imposed as a means to guarantee government's payment of the loan.

In questioning the DoF officials, Enrile also made mention of a certain Hong Kong-based William Go, whom De Venecia allegedly used as a broker to ensure that the contractor, China National Machinery and Equipment Corp. (CNMEG), secures the contract.

Heatedly, Enrile charged: “You are plundering the people! The mere fact that you are doing this without notifying us of this, is already a crime.”

He added: What kind of bankers are you that you drain the blood of the country? This scam is being talked about in coffeeshops-and the word is out that very high government officials are involved in this scam. Even the name of De Venecia has been linked to this.

“And who is this William Go from Hong Kong? He (allegedly) has a commission in this (deal) and the public will be made to pay for it. Even other politicians being involved in this are (allegedly receiving) commissions...they are 'commissioners,'” Enrile said, in berating the DoF officials.

It was learned that Enrile was made aware of the fact that the DoF had imposed a 1 percent interest on top of the three percent.

“The cost of this is going to be four percent instead of three percent...and the people who tell me this are themselves in the board of this railways (North Luzon Railways Corp. (NLRC) project. They have told me that they are being exacted another one percent by the DoF in addition to the (one percent interest rate of) $503 million.

“The finance department is passing this on to the railways corporation...in effect an additional 25 percent of the cost of money... that will be passed on to the riding public...if this is true, we are bargaining off the nation and the people with 25 percent,” he said.

DoF officials confirmed the one percent interest, saying it is in the draft subsidiary loan of the agreement to cover the cost of managing of the relending of the loan.

Based on their explanation, it would appear that the additional interest rate was made to ensure the Chinese foreign bank of the Arroyo government's payment of the loan in case there would be a default in obligation.

“For God's sake why are you doing this kind of thing? Managing a loan? You are being paid to handle the finances of the government and you are going to act as if you were a corporation, a bank to exact money from the people like this...that's $5 million,” Enrile said.

The senator was assured, however, that the subsidiary agreement is yet to be signed but the opposition lawmaker would not hear of it as he still required the officials to submit in the next hearing their explanation on the matter along with the necessary documents and the signed contracts.

In view of this information, Biazon, during the hearing, moved that the ongoing investigation be turned over to the committee on accountability of public officers and investigations or the blue ribbon committee chaired by Sen. Joker Arroyo.

Biazon's decision was immediately supported by panel members, Enrile and Sen. Juan Flavier.

Minority Leader Aquilino Pimentel Jr. who paved the way for the conduct of the probe after he delivered a privilege speech earlier this month questioning the project said the matter is proving to be messy as the public was given the impression the North Rail project would be built at no cost to the government after President Arroyo claimed she had managed to secure a loan package from the Chinese government when she made her state visit to China.

The project has been awarded to CNMEG and is funded by a $503 million loan, of which $421 million comes from China's Export-Import Bank.

AFP Deployed Soldiers in Metro Manila's Depressed Areas

The strategic hamleting first used tactics during the Philippine-American War, then against the Huk agrarian rebellion in Central Luzon provinces, the Vietnam War and Gloria Arroyo government counter-insurgency campaign. The deployment of soldiers in the asphalt jungles of Metro Manila is related to counter-insurgency operations by intimidating militant party-list groups and their supporters. Why? Are they considered enemies of the state? The deployment of soldiers in depressed areas to maintain peace and order is a flimsy excuse. Soldiers are not trained to do police works. Peace and order in villages is the responsibility of barangay captains (village chiefs) and tanods (village guards). The barangay , country's smallest political unit may seek help from the mayor and local police to fight criminality. The militarization of Metro Manila may soon spill over in the provinces.



AFP nixes pullout; Comelec gives in

Daily Tribune 03/06/2007
The Armed Forces of the Philippines (AFP) isn’t going to pull out troops it deployed in slum areas all over Metro Manila, insisting that the troops are assigned to these areas merely to maintain peace and order in the community.
The Commission on Elections (Comelec), for its part, said it will not question the presence of the AFP troops deployed in the National Capital Region, if the purpose is “purely military.”
“If an operation is purely military and devoid of political motivation, the Comelec cannot intervene,” Comelec chairman Benjamin Abalos Sr., yesterday told reporters, despite the complaint lodged before it by the leftist Party-list groups, complete with pictures and affidavits stating that the soldiers have been harassing and intimidating the members of the party-list group and instructing the voters there not to vote for the leftist groups, which the military has accused of being the fronts of the communist party of the Philippines.
AFP Chief of Staff Gen. Hermogenes Esperon Jr. yesterday claimed that the presence of the military in Metro Manila has been requested by local government leaders to curb the drug problem in various areas and criminality, insisting that the accusations that the military troops deployed had been ordered to campaign against the leftist party-list groups were false.
But Esperon failed to show the alleged letters of requests from the local executives from 27 barangays.
Abalos seemed to have taken Esperon’s claim as gospel truth, and appeared to be disinterested in getting to the bottom
of things.
It also appears that all the military has to do, during the polls when the AFP gets into the picture, is merely to state that the activities the soldiers are engaged in are purely military and Comelec will not intervene.
The military brass said the AFP has no plan to pull out troops, with Esperon denying the allegations of party list groups on the military’s electioneering for the administration.
AFP spokesman Maj. Gen. Jose Angel Honrado also insisted that the deployment of troops will stay and said there is no order for a pullout. “It (deployment) is not election-related,” he stressed.
But when asked what the deployment was for, the spokesman said: “I don’t want to answer that. Let’s wait for our (AFP chief’s) reply to the Comelec.”
Maj.Gen. Benjamin Dolorfino, chief of AFP-National Capital Region Command said the deployment of soldiers in some areas of Metro Manila is “indirectly” related to counter-insurgency operations and part of a civil-military program to maintain peace and order in communities.
“Yes (the operations of the Armed Forces) are indirectly (related to counter-insurgency) because we are trying to help solve peace and order problems so the people will not go to streets or think of fighting the government,” Dolorfino said.
Dolorfino said the AFP is forging a partnership with the Philippine National Police (PNP) and local governments in maintaining peace and order in problematic communities.
“I think nothing is wrong when we have civil-military operations programs and these are promoting good relations between military and civilians,” he said.
He said the military has received requests to maintain peace and order in areas frequented by activist groups.
The party-list group Gabriela filed a complaint against the military whose troops were said to be campaigning against the group and harassing its supporters in Barangay Commonwealth in Quezon City.
Honrado said the military received formal notice from the Comelec seeking its comment on the deployment, on Monday
Comelec said it may ask the AFP, and in particular, Dolorfino to explain the extent of the military operations.
Abalos over the weekend asked Dolorfino to investigate the presence of military troops in Isla putting Bato and in Delpan all in Tondo and to submit a written report.
But Abalos said he has not received any report from Dolorfino as of yesterday.
Meanwhile, opposition leaders yesterday rebuked Esperon’s mobilization of soldiers to urban poor communities, saying this is a clear plot to harass candidates from militant partylist organizations and prevent from campaigning.
More than the issue of the military’s presence in areas not within their so-called war zones, the legality of the move by the AFP presents a danger, Senate Minority Leader Aquilino Pimentel Jr. pointed out the danger as far as legality of the move by the AFP hierarchy.
His counterpart in the House, Minority Leader Francis “Chiz” Escudero, denounced the AFP deployment saying: The threat against opposition candidates on the campaign trail, the presence of soldiers in places where they have no business to be, seen against the backdrop of the continuing extra-judicial executions, create an atmosphere of fear that makes a free, orderly, and fair election impossible.”
Escudero warned the administration against continuing the enforcement of such policy as it might compel the public to resort to violence if the people’s will is frustrated at the polls.
He reminded the administration over the public backlash experienced during the 2004 presidential election, which was a serious blow to country’s democracy when the people refused to accept the results.
“Another fraudulent election will again drive people to the streets, and this time they could very well succeed in their desire to oust the President. To an incensed people, impeachment would cease to be an option,” he said.
He said the mid-term elections had better be clean and honest. Otherwise, he added, the people will resort to extra-constitutional means.
“Do not make the elections a prologue to chaos and disorder that could very well run out of control,” he said, addressing the administration.
Pimentel, principal author of the Local Government Code, emphasized that under existing laws, it is only in the event that the civil agencies that maintain law and order are unable to do so that conceivably the military as military can now make its presence felt in the barangays.
“The barangay officials are the civilian arms of law and order in their barangays. They can assert that authority first by calling on their tanods to do so. If the tanods cannot do the job for one reason or another, the next civilian officials they can ask for help are the mayors of their cities and municipalities.
“The mayors can, then order the police, another civilian agency, to go out to the barangays concerned and maintain law and order there. If the mayors prove unavailable, the barangay officials can always call on the governor and the Sangguniang Panlalawigan concerned to help them out with their problem,” he explained.
He urged barangay captains and their barangay councils all over the country to now assert their right as civilian functionaries to maintain law and order in their barangays.
“They should do so before the nation becomes fully militarized under a President who is a captive of certain generals in the Armed Forces.
“Unless the local government officials are unable to maintain law and order, soldiers should stay in their barracks and wait until they are called upon to help. Or perhaps, they can do construction work,” he added,
Pimentel also said that their unwarranted intrusion into local government domain raises alarm bells that during this election period, they are sent to the barangays to intimidate people into voting for the administration candidates, or, worse, to condition the minds of the people that the law of the gun or martial law is inevitable and that there is nothing we can do about it.
Escudero also asked: What is the Comelec doing about it?,” pointing out that the various militant groups had already raised this issue long before the election period and yet nothing is being done about it either by the Comelec or Malacañang.
He also stressed that the AFP chief of Staff did not even bother to present any petition coming from the community or communities that demanded for the military presence to back his claim that the military acted on the request of the barangay leaders.
As early as the last two months of last year, partylist Gabriela has been sounding its alarm over the presence of military troops in many areas in Quezon City, and yet Malacañang and the AFP ignored this..
The Palace has admitted that it gave AFP the go signal to push through with the deployment of troops in some urban areas in the metropolis, claiming it is only the Palace and AFP’s will to protect civilians from the threat of insurgency and criminality.
But this was immediately dismissed by members of the partylist group Bayan Muna.
Reps. Satur Ocampo and Teodoro Casino belied claims made by Secretary Eduardo Ermita, Esperon. Dolorfino and Col. Bartolome Bacarro that the deployment of the military was for the protection of the people.
“They were dishing out barefaced lies to cover up the government’s dirty war against progressive partylist groups,” they said in a press statement.
It was also untrue, according to the legislators that the deployed military personnel were unarmed.
Aside from that, these military personnel impose curfews, and even threaten leaders and supporters of the partylist group, according to Casiño.
“The deployment began in November last year. This is part and parcel of two AFP documents entitled ‘CPP-NPA-NDF Partylist Operations for 2004 Elections,’ a 51-slide powerpoint presentation, and ‘AFP Onward to Political Warfare Arena,’ authored by Lt. Col. Yogyog-NIWG1. This is an anti-party-list plan to ‘make it hard for progressive partylist groups to campaign and make it easy for AFP partylist allies to campaign,” Casiño further said.
To achieve these aims, these documents pushed for “focus denial operations” in 305 cities and towns tagged as CPP-NPA-NDF strongholds, the division of potential votes by promoting AFP-preferred partylists, and the actual use of AFP and PNP operations.
According to Press Secretary Ignacio Bunye, in order to inform the public well and to avoid confusion, the AFP has to explain more thoroughly the issue of deployment of troops in the slum areas in the metropolis.
The Palace spokesman, however, became clueless and almost speechless when pressed if President Arroyo was aware of Esperon’s order or if proper consultation between the Palace and the AFP on the matter took place.
He appeared clueless and fell back on saying it will be the AFP that will do the explaining insread.
Presidential Adviser on Political Affairs Gabriel Claudio defended the AFP saying that its only objective is to protect the communities from the threat of insurgency and criminality. With Gina Peralta-Elorde, Angie M. Rosales, Dona Policar and Marie A. Surbano.

The United Opposition Senatorial Slate

Photo: Malaya News

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

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