Sunday, September 18, 2005

PAL Blues

Public Lives : Surviving PAL country

Randy David randolf@pacific.net.ph
Inquirer News Service

OUR COUNTRY IS AN AIRCRAFT, AND ITS NAME is Philippine Airlines. We are its patient passengers. This plane is long-delayed for a host of reasons-a bomb threat from nowhere, a malfunctioning engine that has seen better days, chaotic procedures, and a crew that is too timid and too uncaring to explain the situation to the passengers.

I did not realize how uncannily close this parallelism was until I took PR 812 from Davao to Manila the other day. The flight was supposed to leave Davao at 2:15 p.m. on Sept. 16. It was able to take off only at 8:50 a.m. the following day, Sept. 17. The passengers were mostly teachers, priests and nuns who attended a convention of Catholic schools. I flew into Davao the previous day for a lecture at the University of the Philippines in Mindanao. I thought of squeezing in some birdwatching while there, and so I had myself re-booked for a mid-day flight the following day. It was a mistake.

Twenty minutes after boarding should have begun, a voice in the PA system curtly announced that further security procedures needed to be conducted. The plane was pulled away from the airport terminal. The cargo bins were towed to the tarmac and their contents spread out on the cement floor. From the large glass panes of the waiting lounge of the new airport, we spotted a couple of sniff dogs that were put to work. It meant only one thing-they were looking for bombs. But this caused hardly any alarm, only mild grumbling over a possibly long delay.

One of the dogs appeared to stage its own revolt. As it was led to an endless line of cartons containing the durian fruit, the dog suddenly broke loose from its trainer and circled the whole cargo over and over like a horse gone mad. We all laughed and took vicarious delight in this amazing act of rebellion. Later, passengers with checked-in baggage were asked to go down to the tarmac to identify their baggage and to drag it to the cargo bins. Two small vans shuttled back and forth to ferry the passengers. I was pleasantly surprised by the extraordinary serenity with which my fellow passengers complied with this task.

Finally, at almost 6 p.m., boarding was announced. Before this, no PAL personnel bothered to show up at the waiting lounge; neither was there any explanation offered by anyone for the extended delay. Inside the plane, more bad news awaited us. One of the plane's engines failed to start. At around 7:30 p.m., we were asked to return to the airport lounge to wait for further instructions. No such instructions came. Some passengers decided to withdraw from the flight, and asked that their baggage be off-loaded. It was supper time. This was a nation left to fend for itself.

At 9 p.m., a re-boarding was announced. Patiently, we all made a line for the door. Everyone was either calling or texting someone who was waiting at the Manila terminal. I had run out of battery charge and all I could manage was a short message to Karina, my wife, telling her that I would miss the birthday dinner for our daughter Kara. This wasn't as bad, I said, as missing a connecting flight to San Francisco or to Dubai where some passengers were headed. She was all praise for my seeming patience and coolness. At 10 p.m., the captain announced that the same problem with the engine had recurred.

At that point, more people decided to leave the plane. They saw the engine malfunction as a bad omen. Once more, cargo was off-loaded from the plane. Snack packets containing peanuts and some jello were distributed. This was our dinner. Seeing this meager fare, one passenger opened a large box of pastries and shared the goodies with everyone. Another passenger offered a gallon of rare durian ice cream. It is funny and heart-warming. Abandoned by their leaders, Pinoys take stock of what they have and share it.

At a little before 11 p.m., Captain Rocha announced that the plane was all right and it was safe to fly, but that the baggage of those who were quitting the flight had to be unloaded. This was taking time. We were told that the PAL terminal in Manila would already be closed by the time we landed. There was no choice but to abort the flight. All the baggage had to be off-loaded and collected by the passengers. The same plane would leave at 7:30 the next morning.

That was when I began to lose my cool. I sought out and confronted the PAL manager in Davao, a Mr. Arturo Balaga. Unknown to many of us, he was in his office all this time, but not once did he bother to come out to explain the situation to the passengers. He said that PAL could not offer accommodation because all hotels were fully booked. However, he said PAL would reimburse those who would find a place to stay for the night. It was almost midnight.

Weary from the long wait, children began to fret and the elderly were moving around in a daze, wondering where they might deposit their suitcases and fruit boxes. One of the passengers, the writer Sylvia Marfori, approached passengers to ask if they needed a bed for the night, offering to put them up in her own home. She gathered more than a dozen people, myself included. She called up a friend of hers, Min Ponce-Millan, and asked her to accommodate more people in her apartelle. That's how we survived PAL's deceitful negligence.

The PAL manager had lied to us; some passengers found vacant rooms in various hotels. But many slept with no blankets in the cold iron benches of the waiting lounge. PAL's in-flight crews are its saving grace, but the indifference of management cancels everything they do. I found new friends on this trip, and discovered a trait that makes this nation survive despite its leaders-the instinct for generosity of its people.

Thursday, September 15, 2005

School Droputs

Posted by Yvonne Chua 
PCIJ

HARD times have forced more than half a million high school students and 336,000 post-secondary students to quit school this year, according to Pulse Asia's July 2005 nationwide survey.

In addition, 168,000 elementary students did not enroll this year, the poll showed.

Lack of money for school expenses (40 percent) and tuition (35 percent) were the chief reasons given for leaving school.  Twenty-nine percent cited the student's refusal to study as reason as well.

PCIJ earlier reported that the dropout problem in high school was especially alarming among boys.

Pulse Asia, which polled 1,200 adults, also found that the controversy surrounding educational plans has resulted in the public's mistrust of pre-need firms.

About 70 percent of families that still don't own a plan say they won't buy one even if they had the money. Of this group, 41 percent say pre-need companies can't be depended on to honor the provisions.

Big pre-need companies like the College Assurance Plan and Pacific Plans have failed to pay many planholders, especially those owning traditional plans, their full benefits.

Pulse Asia said only a tenth of households have at least one family member who has or had an education plan.

 Read Pulse Asia's full report.

Marcos Legacy

Viewpoint : Fire sale

Juan Mercado
Inquirer News Service

"NOT FOR SALE!"

Ilocos Norte Rep. Imee Marcos tacked that shingle on her tattered crusader's credentials after she skipped to Singapore to avoid the impeachment vote. This "failure of judgment" stemmed from love for mother, she murmured.

Marcos reasonably notes that Imelda backs President Gloria Macapagal-Arroyo. Right, greater love than this no woman has than to mortgage a congressional vote to bury dear old dad in Libingan ng mga Bayani [Heroes' Cemetery].

"Not for Sale" is also her mama's slogan. The former first lady told BBC she'd sue a cash-strapped regime if it auctioned an estimated $10 million (P560 million) worth of jewelry. These were seized from the Marcoses after People Power I sent them scampering to Hawaiian exile. "Some are family heirlooms," she explained to The Independent. "I'm praying for their return."

That may put calluses on Madame's knees. Three batches of precious stones were seized. One batch was recovered in MalacaƱang. Worth $9 million, the Roumeliotes collection was seized in March 1986 from a fleeing Greek national. US customs officers impounded jewels in "32 to 34 Louis Vuitton cases" when the Marcoses disembarked in Honolulu.

Current plans set an auction in Geneva this November, the peak season for jewelry sales there, or May 2006. But experts from Christie's and Sotheby's auction houses are due to assess the stones stashed in the vaults of the central bank.

The trove includes a Persian-style necklace studded with more than 100 carats of pink and canary diamonds. Another bracelet, crafted by Bulgari, has a 30.7-carat stone embedded in the center. That is appraised at $800,000.

"The government has not shown any proof the funds used to purchase them were ill-gotten," Imelda protested to Reuters. But the Presidential Commission on Good Government scoffs that the Supreme Court has upheld the seizures.

"'Tis plate of rare device and jewels / Of rich and exquisite form, their values great, /And I am something curious, being strange / To have them in sale stowage," Shakespeare notes in "The Comedy of Errors."

As in other Imelda sallies, there'll be varied reactions to this fire sale. That's guaranteed by what former Prime Minister Lee Kwan Yew called, in his memoirs "The Singapore Story," the Marcoses' "penchant for flamboyant frivolity in a country of desperate poverty."

Filipinos have "a soft forgiving culture," he wrote. "Only in the Philippines could a leader like Ferdinand Marcos, who pillaged his country for 20 years, still be considered for a national [hero's] burial."

"Imelda had a penchant for luxury," Lee adds. "When they visited Singapore, they came in two DC-8s, his and hers... Like Hollywood melodrama, these could have happened only in the Philippines."

"Even the devil can participate in the auction," says Presidential Commission on Good Government (PCGG) Commissioner Ricardo Abcede. "She can bid for the jewels in an open market."

The PCGG, in fact, under the late graft-buster Haydee Yorac, won a Supreme Court decision that saw $683 million, squirreled in Marcos shell foundations abroad, returned to the national treasury.

Others will recall Supreme Court decisions that found disparity between the declared income of the Marcos couple and their properties. Some will dust off the old martial law wisecrack: "Imelda is into the mining industry. This is mine. That is mine. All is mine."

This controversy reminds me of the time I drove a United Nations colleague from the Termini in central Rome to Leonardo da Vinci Airport. As International Labor Organization economist Lim Lin Lean buckled herself, she cracked, "I didn't know you Filipinos were that rich!"

Seeing the puzzled look on my face, she explained. In her spare time, she gawked through the jewelry displays at Bulgari. Suddenly, store employees began shooing everybody out.

"It was your first lady, Imelda Marcos, who was shopping. Proletariats like us were locked out," she laughed.

"Well, diamonds are a woman's best friend," I weakly countered.

"Those of us in the cheaper sets are told to clap. The rest rattle their jewelry." But this is farce that sears. The yardstick for man's worth is measured in carats, not in his God-given nature.

"Next to a spirit of discernment, the rarest things in the world, are diamonds and pearls," Jean de la Bruyere once wrote.

Shaped by Ignatian discernment, held by Japanese captors and afflicted by World War II shortages, this Jesuit seminarian wrote about the carat-less wealth. Here are excerpts from the 1943 (?) "Jewels of the Pauper" written by Horacio de la Costa, SJ:

"We are a remarkably poor people ... even in riches of the spirit… No Shakespeare, no Cervantes has yet been born among us to touch, with immortality, that in our landscape, in our customs, which is most vital, most original, most ourselves....

"But this pauper, among the nations of the earth, hides two jewels in her rags. One of them is our music. We are one people when we sing....

"We are again one people when we pray. This is our other treasure: our faith. It gives somehow to our little uneventful days a kind of splendor, as though touched by a King....

"These are the bands that bind us together. These are the soul that makes us one... As long as there remains one mother to sing a lullaby and one priest to offer God to God, this nation may be conquered, trampled upon, enslaved, but it cannot perish. Like the sun that dies every evening, it will rise again from the dead."

Tuesday, September 13, 2005

Arangkada for September 14, 2005

 

       LACSON SUSPEK?

 

Si Sen. Panfilo Lacson ang usa sa tulo ka opisyal sa gobyerno sa Pilipinas nga gipasanginlang maoy nakadawat sa sekretong mga dokumento nga nakuha sa giingong pagpangespiya sa duha ka Pinoy nga naposasan ug nakiha na sa Federal Bureau of Investigation. Silang Michael Ray Aquino, 39, batabata ni Lacson, ug FBI analyst Leandro Aragoncillo, 46, naturalized US citizen, giingong nasakpan nga nagpayuhot og classified nga mga dokumento sa FBI labot sa krisis sa politika sa Pilipinas.

Si Aragoncillo nasakpan sa modernong teknolohiya sa paniktik sa FBI nga nipasa sa sekretong mga dokumento ngadto ni Aquino gikan sa Pebrero hangtod sa Agosto ning tuiga, kanus-a nisulbong pag-ayo ang Gloriagate scandal sa Pilipinas, pinaagi sa text messages sa cellphone ug e-mail messages pinaagi sa Hotmail ug Yahoo.

-o0o-

Wa ilha ang tulo ka opisyal sa Pilipinas nga napadad-an sa classified nga mga dokumento. Pero gidudahan nga ang mga dokumento maoy tinubdan sa pagbisto ni Lacson ug sa ubang lider sa oposisyon nga ang US government mas unang nahibawo kay sa atong mga politiko sa giingong panag-istorya sa telepono nilang Presidente Arroyo ug kanhi Comelec Commissioner Virgilio Garcillano.

Samang mga dokumento ang gitoohang tinubdan sa kasayuran sa kaandam sa FBI pag-authenticate sa Garci tapes atubangan sa pagkuwestiyon sa Malakanyang sa katinuod sa recording. Pero sa kapulihay wa na manghilabot ang FBI kay ang oposisyon ug ang Malakanyang niuna pagdangop sa ubang mga eksperto sa Australia, New Jersey ug Texas.

Si Lacson man o dili ang utok sa nabulilyasong operasyon klarong gitumong ni sa paglili sa mga kasayuran nga nahipos sa FBI nga posibleng maka-influencia sa administrasyon ni US Pres. George Bush Jr. pagbakwi sa suporta parang Pres. Arroyo.

-o0o-

Silang Aquino ug Aragoncillo gipriso nga way piyansa. Matod ni US Attorney Christopher J. Christie samtang ang pagpangespiya wa mahilambigit sa terorismo, tinud-on pagukod ang mga dinakpan kay ang ilang krimen nakabuslot sa nasudnong seguridad sa US.

Nasakpan si Aragoncillo sa FBI dihang iyang gikumbinser ang mga opisyal sa imigrasyon paglugway sa visa ni Aquino nga dugay nang napupos. Human gi-alerto sa imigrasyon, gilusad dayon sa FBI ang audit sa computer activities ni Aragoncillo. Nagduda si Christie nga si Aragoncillo klarong nanguwarta ug nisuporta sa pamolitika sa mga nibayad sa iyang serbisyo.

-o0o-

Bisan wa pang mga dokumento sa FBI, naklarong managlahi ang baruganan sa mga opisyal sa US tungod sa pagsaway sa mga opisyal sa US embassy sa Manila batok sa Malakanyang bisan kon ang opisyal nga baruganan sa Washington mao ang pagsuporta ni Presidente Arroyo.

Pero kay wa man kabuylo ang pagpresentar sa mga ebidensiya sa giingong pagtikas sa niaging eleksiyon ginamit ang payola sa jueteng, wa dasiga sa US ang kampanya pagpalagpot ni Arroyo sa palasyo. [30]  leo_lastimosa@abs-cbn.com

Oil Smuggling

Fuel smuggling costing gov't P9.5B a year Michelle V. RemoInquirer News Service
THE Department of Finance and the Bureau of Customs have estimated that the government has been losing about P9.5 billion in revenues a year due to fuel smuggling, Finance Secretary Margarito Teves said.
Of the amount, P7 billion are in the form of lost excise taxes and P2.5 billion in uncollected import duties, Teves said.
"While the Bureau of Customs has apprehended suspected fuel smugglers, the lack of incontrovertible evidence has made it difficult for them to confiscate the products or prosecute the offenders," he said.
Caltex Philippines Inc., at a recent forum on the VAT Reform Law, earlier raised its concern over the growing number of fuel smugglers, which it said were directly competing with their legitimate oil dealers.
The finance department and the customs bureau have come up with a strategy that would help detect whether fuel sold in the market was smuggled, Teves said.
They have signed a memorandum of agreement with the Philippine Institute of Petroleum (PIP), a private sector organization, that will help the government implement a chemical technology in detecting smuggled fuel, he said.
With the chemical technology, authorities will use a certain chemical to mark fuel whose taxes and duties have been paid by the importers.
Under the government's anti-smuggling plan, customs authorities would regularly check the market to monitor sale of fuel. When a fuel does not contain the chemical markings, then they would have reason to suspect that the product was smuggled, the Department of Finance said in the statement.
Aside from addressing fuel smuggling, Customs Commissioner Alexander Arevalo earlier said the bureau had also tapped the assistance of courier service companies FedEx, UPS and DHL to help combat smuggling of other products.
The three companies will serve as third-party informants to help the Bureau of Customs detect smuggled items, Arevalo said. In particular, the couriers, from point of departure, will inform the bureau of the contents of the products they will deliver to the Philippines, he said. With INQ7.net

RPN, IBC For Sale

RPN-9, IBC-13 to be sold jointly Michelle V. RemoInquirer News Service
THE government is studying various options for the privatization of state-owned television stations, with the possibility of jointly selling Radio Philippines Network Inc. (RPN) Channel 9 and Intercontinental Broadcasting Network (IBC) Channel 13, Finance Undersecretary Jay Singson, who is in charge of the government's privatization program, said Monday.
The interagency Privatization Council has decided to offer for re-bidding the financial advisory services for the privatization of RPN-9 so that the service package can include IBC-13, Singson said.
"The financial adviser would suggest whether it would be best to sell the two stations separately or jointly," he told reporters.
The government had declared CLSA Exchange Capital as winning bidder six other advisory firms at the bidding on June 27 for the financial advisory contract for the privatization of RPN-9.
Singson said the bidding process would have to be done again because the government wanted to include IBC-13 in the package, and CLSA had agreed with the decision and had expressed intention to join in a bidding again.
Other bidders at the previous auction were BPI Capital Corp.; Ernst & Young; KPMG, Laya, Mananghaya & Co.; PCI Capital Corp.; PricewaterhouseCoopers; and Punongbayan Araullo.
Singson said the privatization of RPN-9 and IBC-13 would be pushed to next year but the new bidding of the contract would be held before the end of this year.
Reportedly interested in buying RPN-9 are Manuel Pangilinan, chairman of Philippine Long Distance Telephone Co.; Solar Sports of businessman Wilson Tieng; and Mike Velarde, leader of the Catholic charismatic group El Shaddai.

Monday, September 12, 2005

HK's Disney Opens

Disney opens its first theme park in China

Agence France-Presse

HONG KONG -- Disney officially opened its newest theme park in Hong Kong by Chinese Vice President Zeng Qinghong Monday, marking its first step into the lucrative China market.

Some 2,500 dignitaries and guests were on hand, including Hong Kong leader Donald Tsang, Walt Disney Company CEO Michael Eisner and company president Robert Iger.

The ceremony opening the three-billion US dollar park kicked off with a traditional Chinese lion dance in the forecourt of Sleeping Beauty Castle.

The Hong Kong government, which chipped in 1.8 billion Hong Kong dollars of the construction cost and owns a half-share of equity in the project, is hoping the park will spur local tourism and bring in more than 100 billion dollars over the next 40 years.

RP Exports

 

China gives Philippine exports a lift

By Francisco Alcuaz Jr. Bloomberg News
MANILA Philippine exports grew in July at the fastest pace in six months as overseas sales of electronics revived and shipments to China increased threefold.
 
Shipments to China climbed to $567.6 million from $188.9 million, the National Statistics Office said Friday in Manila, bringing them into the range of the Philippines' two biggest markets: Japan at $598.1 million and the United States at $567.6 million. Sales to Japan were flat. Shipments to the United States dropped 23 percent.
 
Overseas sales rose 11.4 percent to $3.46 billion, the Statistics Office said. That compares with 1 percent increases in May and June and was the biggest gain since January's 15.2 percent rise.
 
Rising exports may help President Gloria Macapagal Arroyo's government improve growth in a country where a third of the population lives on less than 60 U.S. cents a day and where more revenue is needed to curb debt that swallows a third of state spending on interest payments alone. Exports make up two-fifths of the $85 billion Philippine economy.
 
"This may help put us back on track as far as the economy is concerned," said Emma Pante, an economist at Rizal Commercial Banking in Manila. "We're benefiting from demand China cannot meet."
 
But the recovery in exports growth may be "shaky" because it is not based on improved competitiveness, Pante said.
 
Arroyo's government says growth may slow this year to less than its minimum 5.3 percent target, from 6.1 percent in 2004, in part because higher prices of crude oil have raised local energy prices, damping demand for some products and services. The Philippines imports almost all of its fuel. The Asian Development Bank cut its 2005 growth estimate for the Philippines last week to 4.7 percent from 5 percent.
 
Electronics exports rose 14 percent to $2.29 billion. That followed declines in the previous two months and a 1 percent increase in the first six.
 
Arthur Young, president of the chip maker PSi Technologies, estimated that Philippine electronic exports will grow 7 percent this year, driven by worldwide demand for mobile phones, flat-screen televisions, iPod-like music devices and new versions of video game consoles. Philippine companies make chips that go into these products.
 
" I don't see killer applications in the market today, but there are a lot of new products like the new Xbox and PlayStation," Young said. "There are new opportunities for driving growth. The second half will be better than the first."
 
Young said first-half growth had been dragged down by Toshiba's transfer to China of its local notebook operation, which produced two million computers a year.
 
Growth may also falter if rising crude oil prices slows world economies, Young said.

Wednesday, September 07, 2005

People Power

Analysis : A judgment of guilt based on perception

Amando Doronila
Inquirer News Service

THE DISMISSAL of the three impeachment complaints against President Gloria Macapagal-Arroyo by the House committee on justice has rekindled the dying embers of the street-driven movement demanding her resignation.

Following the junking of the complaints, a broad coalition, calling itself Bukluran para sa Katotohanan, or Coalition for Truth, intensified street marches in an attempt to put pressure on the plenary of the House of Representatives that was in the midst of deciding what to do with the quashed complaints and whether to endorse any one of the complaints or a consolidated version to the Senate.

In a march to the Batasan [Legislature complex] yesterday, the coalition, led by former President Corazon Aquino, among others, tried to show it was not a spent force and was now gaining adherents among a wide assortment of organizations, with disparate political and ideological tendencies to back their move to oust Ms Arroyo, either through impeachment or other means, not excluding extra-constitutional means, such as another people power.

Aquino took pains to explain that the march of several thousands was "to show support" for the congressmen signing the complaint. The intensified street action appeared to have been intended to give heart to other congressmen to join the pro-impeachment movement whose fast track had been blocked by the numbers of the administration majority in the House.

Since the filing of the complaints in June and July, the opposition had encountered difficulty in winning the critical support that would bring the number of signatories to the 79 needed to send the case to the Senate. While the proponents of impeachment in the House have failed to collect the 79 signatures, they have succeeded in getting crowds out in the street, where the battle over the ouster of Ms Arroyo has now shifted. One possible explanation for their failure to secure the required number of signatures is that for two months and until yesterday, it was not clear what complaint would be endorsed to the Senate, considering that each of the three complaints contained different sets of charges.

As legal authorities have pointed out, the first complaint filed by lawyer Oliver Lozano alleged, among other things, that the President had been silent about the wiretapped conversations with Election Commissioner Virgilio Garcillano and such silence amounted to "a betrayal of public trust"; and that she lied when she confessed to "a lapse in judgment" when she talked over the telephone with Garcillano about election results.

Fr. Joaquin Bernas, S.J. cited an attempt by the opposition to reinforce and amend the Lozano complaint with accusations of impeding the administration of justice, of concealing ownership of property contrary to law, of tax evasion, of acquiescing in the killing of political dissenters, of approving contracts "disadvantageous to the Republic." This shotgun blast led to the blurring of the focus of the complaint. The omnibus nature of the complaints undermined the main issue raised by the Coalition for Truth seeking the President's ouster for allegedly "stealing" the 2004 elections.

Those driving the movement to oust Ms Arroyo are not clear about what wrong she had committed to warrant her dismissal, either through an impeachment trial or through people power.

Before the people power advocates can win wider public support for their oust-Arroyo movement, they have to stop insulting the intelligence of the public with their ambiguous definition of truth. For example, a group belonging to the Coalition of Truth, the Black and White Movement, said, "We have to make a judgment (on election cheating) on the information available to us -- the transcript of the Garci tapes, the testimony, the maneuverings of both the opposition and the administration, and the political developments as these unfold before us."

This statement was made before any complaint, with a bill of particulars and articles of impeachment, has been sent to the Senate. In other words, judgment on cheating has already been made on the basis of perception rather than on verified evidence reached through a methodical and rigorous process that is provided by an impeachment trial. It is this perception that is fueling the movement to shift the resolution of the crisis to the streets.

It is very dangerous for the members of the Black and White Movement to declare that they "believe the issues surrounding the presidency and the impeachment complaint are as clear as Black and White. There are no shades of gray when it comes to the Truth."

Truth has as many sides as there are to a controversy. This movement imposes its own version of truth arrived at arbitrarily without scrutinizing allegations and controverting them with other facts. This notion of making judgment on right or wrong based on unverified facts, which those sitting in judgment would like to believe, has a notorious history. It has been the foundation of obscurantism and the cradle of the most cruel and deplorable witch-hunts in history, including the Holy Inquisition, the Salem witch trials and the anti-communist hysteria of the McCarthy era.

Maybe it might be a good idea for those trying to incite another people to pause and ask why the accusations against the regime have not provoked the outrage they seek to bring down an intensely reviled regime. Maybe their unilateral version of the truth is not shared by a large enough segment of the public, which has reacted tepidly to calls for mass mobilization.

Oil Prices Soar

Oil, power costs to rise 6.4% with new VAT law

Inquirer News Service

OIL prices will further increase by an average of 6.4 percent when the expanded value-added tax (VAT) law takes effect, Department of Finance officials said Tuesday.

The Supreme Court recently declared the new VAT law, which removes exemptions of certain sectors, including oil and electricity, as constitutional. Opponents of the law are expected to ask the court for reconsideration, pending which the court's temporary restraining order on implementation of the law stays in force.

Finance officials are hopeful the court will lift the restraining order before the end of the month.

The officials said government simulations based on oil prices as of Monday showed the price of unleaded gasoline would rise P2.76 or 8.3 percent when the VAT is applied.

Electricity prices are expected to inch up 6.0 percent, they said.

The price of regular gasoline will go up P2.23 or 6.9 percent, diesel by P0.72 or 2.3 percent, kerosene by P1.87 or 6.0 percent, bunker fuel by P1.31 or 6.5 percent, and liquefied petroleum gas (LPG) by P30.97 or 7.8 percent, they added.

RVAT, the name preferred by the Department of Finance to identify the new VAT law, has been suspended following complaints raised by opposition lawmakers and petroleum dealers.

The expanded VAT law gives President Gloria Macapagal-Arroyo conditional authority to raise the VAT rate to 12 percent, from the present 10 percent, in January.

The law also removes exemptions of medical and certain other services. With INQ7.

More Debts

Gov't to borrow P532B next year; debt P3.9 trillion in June

Inquirer News Service

THE NATIONAL government will borrow P531.6 billion next year from local and foreign creditors to finance spending requirements and pay maturing debts that cannot be covered by revenues, Finance Secretary Margarito Teves said.

Next year's borrowings will be 58 percent (P310.2 billion) domestic and 42 percent (P221.4 billion) foreign, he said.

The Department of Finance has adopted a policy of borrowing more locally to lessen foreign exchange risks.

The Bureau of Treasury meanwhile said the national government's outstanding debt reached P3.89 trillion at end-June, of which P1.86 trillion was to foreign creditors.

With a national population of 85.2 million, the debt amounts to P45,699 per person.

Domestic debts were down P1.6 billion or 1.3 percent from end-May, following net redemptions of government securities.

Foreign debts increased by 29.82 billion pesos, the Treasury said. It said the depreciation of the peso against the US dollar resulted in an increase of P55 billion in the foreign debt, but net repayments and the appreciation of other foreign currencies against the US dollar reduced the foreign debt by P8 billion and P17 billion, respectively.

The debt figure does not include contingent liabilities, composed mainly of government guarantees, which rose to P612 billion in June from P604 billion in May, mainly as a result of the peso's depreciation.

The peso fell to 56.05 to the dollar at end-June from 54.40 to the dollar at end-May. With INQ7.net

Tuesday, September 06, 2005

National Tombstone

Sense and Sensibility : You gotta be kidding!

Bambi Harper
Inquirer News Service

SOME time last week, an article appeared in the press that Manila Hotel Corp. had agreed to buy the equity of Fraport AG and two other investors in the Philippine International Air Terminals Co. Inc. (Piatco), the builder of the new terminal. The German firm was reported to be willing to sell for $200 million, half of what it originally wanted (maybe anything, just to get rid of us). And it wasn't only the Germans who want out but the Singaporeans and the Japanese who are selling for a mere $30 million. The corporation allegedly still has outstanding debts with the Government Service Insurance System from the sale of the historic hotel, but it doesn't seem to bother GSIS president Winston Garcia. After all, it's GSIS money, not his.

In case you're not familiar with or have forgotten our economic misadventures and mismanaged finances, let me refresh your memory. Some 13 years ago, the government put the Manila Hotel on the block. The winning bid was submitted by the Malaysian group Renong Berhad in partnership with Sheraton. Lo and behold, the Supreme Court had a bout of galloping patriotism and overturned the winning bid and gave it to Emilio Yap, owner of the Manila Bulletin, on the grounds that patrimony should remain in Filipino hands. In one fell swoop, Chief Justice Andres Narvasa and his Court dealt a fatal blow to government credibility and foreign investment. The real losers in all these shenanigans were, of course, the Filipino people but it wasn't as though any of their leaders gave a hoot. For those of us who saw the Manila Hotel when it was the jewel in the crown of hotels in the country, to see it today transformed into a sleazy "panciteria" [noodle shop] smelling of stale smoke, redolent of vinyl placemats and varnished plywood paneling is to realize the Filipino people has been had. Because the hotel actually belonged to them and it wasn't up to the Narvasa Court to give it to Fu Manchu's descendent who had zilch experience in running hotels, much less a five-star one.

This was meant as a showcase of Filipino culture with Ming martabans in the lobby and beautiful huge tropical floral arrangements. The jars have now been replaced by schlock -- gold painted containers (remember this is supposed to be good luck in the owner's culture) plus a fake, kitschy copy of an Amorsolo right beside an original. A bombastically huge plastic Kodak image of the hotel is displayed prominently for its sando-clad guests to stand in front to have their pictures taken. The once elegant lobby sofas have been re-upholstered with a seedy, dark, cheap material that a friend described as the "Taiwan special," suggesting it was bought on sale and looks it.

The Manila Hotel was once the place to be seen in much the same way as the Four Seasons anywhere or the Ritz in Madrid or the George V in Paris. It could stand the comparison. Today it stands neck to neck with that other Yap hotel, Prince, and some others on Raon Street and Quezon Avenue. We were sold down the tube, guys, and as usual you don't hear anyone protesting. Are we to believe that if a property is considered "patrimonial," (a) it can be sold and (b) the interiors are a free-for-all and the owner can do whatever his tastelessness declares? Because if that's the case, Rizal Park can likewise be sold and Lito Atienza can lease the front of the boulevard fronting Malate Church to SM Shoemart to put up a mall, forevermore blocking the view of the sunset.

I once tried to explain to a government official that the people need to have something to be proud about ("puedeng ipagmalaki"), something we could brag about for being world-class. Well, we had it and we trashed it, thanks to Narvasa. Of course, any number of politicians may have had a hand in the decision to overturn Malaysia's bid in favor of the owner of the Manila Bulletin, which explains a lot of things otherwise incomprehensible.

Part of the terms was that Yap was supposed to infuse P600 million to refurbish the hotel. Where? Most of what he has built and remodeled has been depressing, ugly, brutal and spiritually degrading. There's that dreadful joke of a dreary centennial building where, for P2,000 a plate, we were served paella, salad, fish and spaghetti lumped all together in one plate. That's elegant? That's worthy of patrimony?

The depths to which we have sunk can be measured by the shabbiness and total tastelessness of the whole complex. Would you believe using varnished plywood for paneling in a hotel once advertised in Town & Country as the place to stay in Manila and where government today has the temerity to house its VIP guests? "Talagang wala na tayong hiya" [We have lost all shame]."

The catastrophe that is the Champagne Room with its imitation Louie XIV (or is it XV or XVI?) dƩcor more suited to Sioctong than to Perrier-Jouet breaks your heart. Its lifelessness is frightening. Is this what happens in a marriage of poverty and corruption?

The final, inescapable fact is that the Manila Hotel may be the biggest tombstone to Filipino heritage yet. It may supersede the empty lot where the Jai-Alai building once stood and the derelict Army & Navy Club, no thanks to government officials.

But, just when you think the worst has befallen us, think again. Ladies and Gentlemen of this suffering nation, we are now being told that the only international airport terminal built in this country in the past 40 years at a cost of hundreds of millions of dollars is now going to be owned by the same nightmarish, destructive group running the Manila Hotel.

There is scant refuge from the disorder in our national life. Sen. Richard Gordon, with his endorsement, now seems to be saying, "Hey, you nation of morons, this is all you deserve."

Monday, September 05, 2005

GOCCs Ultimatum

DOF whips GOCCs into shape
Michelle V. Remo
Inquirer News Service

THE DEPARTMENT of Finance is set to come out with performance contracts that will force heavily losing government-owned and -controlled corporations (GOOCs) to shape up.

Failure to comply with the contracts would mean dissolution or privatization for the GOCCs, the DOF said.

Finance Secretary Margarito "Gary" Teves said the DOF was looking at implementing the performance contracts for 2006.

He is hoping that the contracts will result in a marked improvement in the financial standing of the state-owned firms, especially the distressed ones.

Teves said GOCCs would be classified into three types depending on their mandates: profit-oriented, cost-centered, and service centered state-owned companies. Their classification will determine the type of contract they will have to observe.

He said the GOCCs, established for the purpose of generating revenues for the government, would be assessed based on the profit they earned, while the rest would be evaluated based on the fulfillment of their mandates.

"We [DOF and concerned GOCCs] have to mutually agree on the objectives," Teves told reporters. "If they don't perform according to the contracts, then they could be phased out or sold."

The finance chief said the DOF would initially come up with contracts for the 14 monitored GOCCs.

These are National Power Corp., National Electrification Administration, Local Water Utilities Administration, Metropolitan Waterworks and Sewerage System, Home Guarantee Corp., National Housing Authority, Light Rail Transit Authority, Philippine National Oil Co., National Irrigation Administration, National Development Co., Philippine Ports Authority, Philippine Economic Zone Authority, Philippine National Railways and National Food Authority.

For this year, the 14 monitored GOCCs are expected to post a combined budget deficit of P42.5 billion this year. Although still a deficit, the figure is already a significant improvement from the actual budget gap of P90.7 billion recorded in 2004.

The DOF earlier said the expected improvement in the fiscal standing of the state-owned firms was due to the sale of some of the assets of Napocor, which accounted for the bulk of the combined deficits last year. The DOF likewise cited this year the relatively lower interest rate, which served to trim down the cost of debt servicing by the GOCCs.

At present, the GOCCs are being reviewed for possible rationalization of their organizational setup.

Officials from the DOF and the Department of Budget and Management met last week to continue discussing the rationalization plan.

The rationalization plan is in accordance with the issuance of Executive Order No. 366.

Carabao Milk

PCCI pushes increased carabao milk production
Ronnel W. Domingo
Inquirer News Service

THE COUNTRY'S biggest business group is pushing for the increased production of carabao milk to help reduce the country's dependence on imported dairy products.

Donald G. Dee, president of the Philippine Chamber of Commerce and Industry, said the group was looking at successful milk production campaigns in India, Pakistan and China that can be replicated in the country.

"The continued rise of our import bill against export earnings is expected considering the minimal resources government has in promoting export businesses," Dee said.

"We must increase our exports to or step up production of items that take up significant parts of imports such as dairy products," he said.

The PCCI chief said some P497 million worth of milk was shipped in from abroad in 2004.

Government data show that in the past decade, imports of fresh milk was growing at a rate of 28 percent a year while domestic production was generally declining, although there was growth of up to 6 percent yearly in certain years.

Dee said the private sector was also pushing for the establishment of a body that would facilitate lending to small and medium businesses by maximizing a lending fund that has grown to P5.5 billion.

He said the government has shown that there were ample supply of funds for small businesses but that the problem was how to make it easy for entrepreneurs to secure loans.

Dee said efforts were under way to put up a Micro, Small and Medium Enterprises Surety Fund with an initial P1 billion from the World Bank's Industrial Guarantee and Loan Fund.

He said the government, through the IGLF, could work with a public sector-initiated SME Development Center, which would manage the P1-billion MSME Surety Fund.

"The objective is to increase availability and effectiveness of risk capital to SMEs," he said. "The fund will provide guarantee for SMEs with little or no collateral but have strong cash flows."

According to the Institute for Development and Econometric Analysis Inc., an Asian Development Bank study made in 2003 showed that the biggest constraint in existing lending programs for SMEs was that loan decisions depended on collateral such as land.

Cayetano Paderanga, who heads IDEA Inc., added that other past studies suggest that SMEs could not avail of available funds because loan requirements were too difficult to comply with.

"With the MSME Surety Fund, we can make it easy for prospective milk producers to secure loans for buying carabaos that are bred to yield more milk than the average cattle," Dee said.

Price War

GLOBE, PLDT OFFERING 5 TO 10 US CENTS/MINUTE
Price war shifts to overseas call rates
Clarissa S. Batino
Inquirer News Service

LOCAL telecom giants are bringing the price war to a higher level-their overseas call rates.

Philippine Long Distance Telephone Co. said it would offer an international long distance rate of as low as 10 US cents a minute to all its DSL subscribers starting Sept. 15. This would be equivalent to about P5.60 a minute at current exchange rates.

But Globe Telecom Inc. and its wholly owned subsidiary Innove Communications Inc. said they could bring down their IDD rates to as low as 5 US cents a minute after they secured the approval of the National Telecommunications Commission last week.

The standard IDD rate is 40 US cents a minute. Globe had cut its overseas call rate to 20 US cents a minute starting on the fifth minute under its ongoing promo. Sun Cellular is offering a similar 20 US cents-a-minute deal.

Butch Jimenez, head of PLDT's retail division, said the public should expect more price and product innovations from PLDT. "We intend to remain the leading player in the telecom industry by offering innovative service packages whenever new technology arises."

Not to be outdone, Globe assistant vice president Froilan Castelo said the recent NTC approval would allow his company to charge an even lower rate than what the competitors were offering.

"The NTC now allows us to charge as low as 5 US cents a minute on IDD. This will benefit our customers as we intend to give them more value for their money," Castelo said.

"We want to give our DSL subscribers better value for their money by offering attractive IDD rates," Jimenez said. Short for Digital Subscriber Line, DSL is PLDT's brand for its high-speed Internet product, which is now being used by about 70,000 customers.

Dubbed as PLDT ID-DSL, the new deal allows all DSL subscribers to avail themselves of IDD rates for as low as 10 US cents a minute.

Subscribers, however, have to pay a service fee of P50 a month. Starting Sept. 12, PLDT will also start charging P20 a month for those who would avail themselves of the P10 per local call promo.

DSL subscribers with Plans 2500 and up will enjoy a rate of 10 US cents a minute while subscribers with Plans 1995 and below will enjoy a rate of 15 US cents a minute.

Jimenez said the rates would be 62 to 75 percent cheaper against the 40 US cents a minute.

To offset any negative impact on its overseas revenues, Jimenez said PLDT would aggressively pursue DSL connections and upgrades.

"These new IDD rates bundled with our DSL subscriptions will drive more people to hook up to our broadband service. Also, we see some of those in Plan 1995 and below upgrading their plan to 2500 and above," he said.

DSL subscribers who want an even lower rate than 10 US cents can get PLDT's VoicePad service. This is a PC-to-phone service where DSL subscribers just need to log on to the PLDT myPad website and use the soft dialer from that site to call overseas for as low as 8 US cents a minute.

Tough competition had been bringing down telecom prices, according to NTC Chair Ronald Solis, saying these innovative deals were benefiting consumers.

Sun Cellular, which set off a price war in October 2004 when it launched its unlimited, within-network 24/7 pricing, started offering its Daylite Call and Text Unlimited.

With the new deal, Sun Cellular will charge a peso for every minute of within-network calls from 6 p.m. to a minute before midnight. But from midnight to a minute before 6 a.m., calls within Sun Cellular network will remain unlimited. Within-network text messaging will remain free all day long. Sun's 24/7 promo remains in effect even with these new offerings.

Globe is offering a new Celebrate promo that charges only P10 for every three-minute call and P15 for unlimited texting for 24 hours. Globe's nonstop, within-network text promo is also available for P25 for two days and P50 for five days.

PLDT had confined its P10-a-call promo strictly within the PLDT fixed-line network of 2.1 million subscribers.

CAP Takeover

SEC's plans for CAP put on hold
Elizabeth L. Sanchez
Inquirer News Service

THE CREATION of a management committee that will take over the troubled pre-need firm College Assurance Plan Philippines Inc. may be put on hold after the company filed for rehabilitation with a local court last week.

An official of the Securities and Exchange Commission said however that CAP's rehabilitation plan would not prevent the SEC from exercising its regulatory powers such as imposing sanctions on the company for perceived violations.

CAP earlier told the Makati Regional Trial Court that there was a need for the immediate suspension of payment of all claims against the company.

CAP officials explained that they decided to go to court to keep its business going. They said that this was the only way they could discharge their obligations to their plan holders.

CAP officials also said that they were forced to make the legal turn when the SEC threat to take over management became imminent.

CAP officials are afraid that the takeover will lead to the liquidation of the pre-need firm.

"In deference to the proceedings in court, we may [hold off] the appointment of a management committee," SEC commission secretary Gerard Lukban said. "Any effort on our part may be rendered academic."

Lukban explained that once a company filed for rehabilitation, the court would usually appoint a receiver to implement the rehabilitation plan.

"The receiver is also appointed to safeguard the assets ... of creditors or, in this case, the plan holders," Lukban said. "This is the same goal we want to achieve if and when we create a management committee."

CAP has admitted that it will be unable to service its debts falling due. CAP also said that it has more liabilities than assets.

CAP has proposed under an eight-year business development plan to build up its capital to P8.36 billion, and its trust fund to P14.36 billion.

United Against Glo

The Long View : Unity is the only choice

Manuel L. Quezon III
Inquirer News Service

TO DIVIDE, and thus conquer: that is the objective of the administration. To unite, and thus be impregnable: that is the challenge of the times.

A broad coalition of forces is heeding that challenge. The coalition was symbolized by Cory Aquino and Susan Roces' coming together in prayer last Friday night. It has a name: "Bukluran para sa Katotohanan." Its statement of principles will be released today.

Does the broad coalition represent only opportunism, desperation and naked ambition? To reflect on this question is to miss the essential point. This isn't about those arrayed against the President. This is about the President. The President showed cunning when she dared anyone who is without sin to cast the first stone, as Jesus did to the people who were about to stone to death a woman accused of adultery.

What the President forgot is that she is not the Christ. She is in the position of the woman accused of adultery. The closest that we can come to a stand-in for Christ is not the president of a secular state, but the Catholic bishops who said, "if she is accused of adultery, let the charges be investigated." They did not say, "No, she did not commit adultery," or "No, we are morally convinced no adultery took place." They said: "There are too many disturbing details in the allegations, and so some sort of human justice must take its course."

What did the country get? No form of human justice. No truth commission, and quite possibly, no impeachment. What it got, instead, is the woman accused of adultery proclaiming that all are adulterers, which is beside the point.

You would think she never went to school. In school, you can break the rules many times, even cheat many times, but once you get caught, it is irrelevant if the entire class broke the rules with you, or cheated with you, because you're the one who has been caught. You're the one who gets punished. As it is for being caught cutting class, or copying notes, so it is for adultery and any conceivable sin-including the sins that are in a class of their own, because only presidents can commit them.

It boggles the mind that someone accused of committing adultery against the nation-for after all, a president, some say, is wedded to the country-should now be proclaiming that everyone is an adulterer, and even suggesting that adultery be decriminalized. The price of adultery is supposed to be an annulment or divorce. It is not supposed to result in a coronation, much less the transformation of the state into a world-class bordello, which is what the move to institute Charter change is meant to do. But to do so is to be unfair to whores; it reduces all politics to the level of prostitution, where it may be now, but where it ought not to remain. Furthermore, to do so makes certain that politics never rises above the level of whoring, without taking into account that the ones agitating for the prostitutes' rights are not the prostitutes themselves but the pimps. For even if you say that the people are a bunch of whores, what has driven them and keeps them in prostitution? The pimps. It is the pimps who make a whore out of the public for the pleasure of vested interests.

This whole political crisis is about change and a fundamental reality about our society (which thrives on open secrets, but which reserves a curious kind of fury for those caught doing what everyone knew they were doing all along). Is it unfair? The President thinks so; but it is very Filipino.

We all have dirty linen, and no one wants them exposed. But once exposed, they must be washed, and some sort of redemption must be achieved. The religious-minded can reflect on the fact that Jesus kept company with tax collectors and prostitutes, but he was the Christ and his objective was to show no one was beyond redemption. In a political crisis, such as the one taking place, the President has refused to acknowledge culpability and defied every attempt to clear her name. Her supporters say, it is because those prosecuting her are as dirty as she is, or that their objective is not to clear the President's name but to topple her from power.

They forget that it requires neither sainthood nor good character or intentions to be a prosecutor and pursue a prosecution. There are accusations of sanctimoniousness and false piety all around, to be sure. But who, in our government, is expected to be the exemplar of secular virtues, or at the very least, the kind of leadership unafraid to be challenged? Who, of our leaders, must be imbued with a firm and unflinching faith and confidence in the people? Only the President of the Philippines has that burden and responsibility.

The President not only confuses herself with Christ; she thinks she is living in biblical times. The President's supporters see red flags, the faces of disreputable politicians, the lack of teeth in the ranks of the protesting poor, the inability of the clergy to undertake a crusade, the defection of some of the President's own people, and see a motley group of the disgruntled. They should see, instead, a grave crisis in the legitimacy of the President and in the society she exemplifies. She was given so much, and did so little; she could have led so well, instead she leads so badly; she could have given the country hope, but she had so little faith in her people and herself that she has done, and is doing, things that have brought her to the level of the worst of our past leaders. She continues to fatally divide her people. As Oliver Cromwell said to the Long Parliament, "You have sat too long for any good you have been doing. Depart, I say, and let us have done with you. In the name of God, go!"

Sunday, September 04, 2005

Marcoleta Unmasked

Posted by Luz Rimban 
PCIJ

THE "Hello, Garci" controversy and the impeachment process have exposed the seamy side of party-list politics and showed how supposed representatives of the marginal sectors of society may have been eaten up by what they themselves call "dirty politics." 

Wednesday night, ABS-CBN reporter Aladin Bacolodan interviewed ex-Alagad party-list representative Diogenes Osabel, a former friend of impeachment-complaint-endorser Rep. Rodante Marcoleta. In that story, Osabel's main contention was that the party had expelled Marcoleta last year for failing to share congressional funding with Alagad and for refusing to consult with his party-list colleagues on vital issues. The expulsion, Osabel says, stripped Marcoleta of the right to sit as member of Congress and to endorse the first impeachment complaint. 

Osabel also added to what former social welfare secretary Dinky Soliman revealed on Tuesday: that it was the Arroyo administration that put Marcoleta up to it as part of a "grand conspiracy" to thwart a genuine impeachment process.

In an interview with PCIJ, Osabel alleged that Marcoleta's close ties to the administration began when the party first filed a case before the Commission on Elections months ago, asking the poll body to revoke Marcoleta's nomination as party list rep.  The Comelec's second division has washed its hands of the issue, saying it was the House of Representatives Electoral Tribunal that had jurisdiction over the case, now on appeal at the Comelec.

Osabel alleges that this was how Marcoleta may have developed close ties with Garci himself, Comelec Commissioner Virgilio Garcillano, and with Presidential Political Affairs Adviser Gabriel Claudio. With a case pending before the Comelec and placed in a vulnerable position of possibly losing his seat, Marcoleta may have struck a deal with the administration.  (In a subsequent talk with PCIJ, Osabel clarified he was not aware of any friendship between Garcillano and Marcoleta.)

"This guy (Marcoleta) would do anything to survive," Osabel said.

Not true, according to Marcoleta, who denies he and Garci are friends. In fact, Marcoleta told PCIJ, it was Comelec Commissioner Mehol Sadain and not Garci who handled the Comelec case. "I know them (Comelec commissioners) by name only. As for Garcillano, ngayon ko lang nakita yun with this Garci tapes controversy (The first time I saw Garcillano was in connection with the Garci tapes controversy)," Marcoleta said.

Marcoleta has tossed back the accusations to Osabel, a friend of Soliman and former official of the Presidential Commission for the Urban Poor, who Marcoleta claims has hung on to power,  refused to give up the party presidency for the past seven years and was actually the one disowned by Alagad. What's more, Marcoleta said, there's a reason ABS-CBN gave Osabel airtime. Marcoleta cites a House resolution his erstwhile partymate Osabel filed in 2000 asking the water utility office MWSS to help bail out Maynilad water, a company that like ABS-CBN is owned by the influential Lopez family.

(Osabel also clarified in a later phone conversation with PCIJ that many members of Congress signed that resolution because "they were aware of Maynilad's problems at that time. The resolution sought to stop the financial hemorrahage the company which was then implementing the pro-poor Tubig Bayan in our communities.")

Osabel, however, insists that the point is Marcoleta's role in the impeachment process. If indeed Marcoleta was not a pawn of the administration, why did he not cast a vote in favor of the "sufficiency in form and substance" of the original impeachment complaint?

Osabel asks: Why did Marcoleta allow the majority to dismiss the original Lozano complaint, the very complaint that he endorsed on June 29?  What did Marcoleta do to defend what to civil society was the "legal, proper and peaceful" manner of resolving the political crisis?

Once upon a time, all of them—Marcoleta, Osabel and Soliman—were on one side of the fence, counting themselves part of civil society. These days civil society has been wracked by dissension and power struggles. Some of its members have gone their separate ways and are far from civil.

Thursday, September 01, 2005

Snap Election

There's The Rub : What is to be done?

Conrado de Quiros dequiros@info.com.ph
Inquirer News Service

THERE was something a little heroic in the desperation with which the pro-impeachment representatives looked at their project. Gathered at Albergus last Monday night for a dinner Susan Roces threw in their honor, they took turns talking not only about the seeming hopelessness of their fight -- money from MalacaƱang was flowing, each congressman who would vote to quash the impeachment stood to gain P25 million, they said -- but also about the glowing resplendence of it. They looked headed to lose the battle, they said to a woman, or man, but they were destined to win the war.

For a minute there, I remembered Katsimoto (Ken Watanabe) asking Nathan Algren (Tom Cruise) in "The Last Samurai," while they huddled in the trenches, their enemies pounding them with cannons, what happened to the 300 Spartans. Algren had earlier told him the story of 300 warriors that held off an invader's horde in a pass called Thermopylae. Algren answers: "Dead to the last man." Katsimuto smiles, enthused by the answer. And they rush their enemies on horseback, their banners flailing in the wind, their swords glinting in the sun.

Some defeats are glorious victories.

Detractors, of course, will say that the walkout the other day at Congress was rehearsed. I don't know, maybe it was. But who cares? It was still the proper reaction to a disgusting display of lack of moral scruple, of people in power using the law to thwart justice, the favorite pastime of Ferdinand Marcos then, and the favorite pastime of Gloria Macapagal-Arroyo now. Well, they share more than height.

I can't say I'm greatly dismayed at what happened last Tuesday. It's not just that I expected the impeachment to be killed -- there was little doubt of it, even if the pro-impeachment representatives also expressed the slim hope the last-minute converts might help turn the tide -- it's also that I've always been two minds about impeaching Ms Arroyo.

On the plus side, impeaching Ms Arroyo stood to remind the world she was guilty of humongous wrongdoing, something Cory's and Dinky et al.'s call for her to resign failed to mention -- they merely said the people had lost faith in her. On the downside, it stood to assert she was a president who, like Joseph Estrada, betrayed the public trust when her public apology for the "Hello Garci" tape clearly voided the premise of her being President at all. You do not impeach a non-president, you simply remove her.

I can only hope MalacaƱang sets off more fireworks and Jose de Venecia gloats some more, if only to rile the public sufficiently and rouse it from its stupor. But I'm not unhappy that De Venecia's horde in Congress killed the move to impeach Ms Arroyo because, quite apart from showing what "representative" really represents, it thrusts the issue back to its rightful forum. That is not the parliament of the Batasan [Legislature] complex -- reclaimed from a place once overrun by weeds only to be given back to the weeds -- but the parliament of the streets. There is no need to convoke that parliament, it has already been convoked. By Ms Arroyo herself: The day she appeared on TV apologizing for her "lapse in judgment" -- she forgot that the voters, and not Virgilio Garcillano, or Ronaldo Puno, put presidents in MalacaƱang -- was the day she resurrected it. The force that brings this country's parliament of the streets back to life has always been the death of the presidency.

What is to be done now?

I've always thought the answer to that question was fairly simple. The problem is that we do not have a president that was voted by the voters. The solution is to have a president that has been voted by the voters.

If Ms Arroyo has no legal claim to being the president -- and she voided that claim the moment she said "Hello Garci" -- then she has to be made to step down. That is a not just a moral imperative, it is a legal one. It is not a conditional demand, it is a categorical one. The task of ousting someone who has not been voted by the voters is not premised on finding a "suitable replacement," it is its own compulsion. No mandate, no rule. I don't know what methods others have in mind for ungluing Ate Glue from MalacaƱang. Like I said, mine is civil disobedience. I refuse to be a dutiful citizen to a dutiless ruler. A threatened country has the right to self-defense.

To this day, of course, I still keep hearing people say, "But who do you want in her place? Vice President Noli de Castro? Estrada? Senator Panfilo Lacson? A transitional revolutionary government? A council of elders?" Well, the answer is not who I want in her place. The answer is not who you want in her place. The answer is not who the opposition and the various groups fighting Ms Arroyo want in her place. The answer is who the people want, period. It's not her place, to begin with. Who the people want we can know only in and through elections. If the problem is that we do not have an elected president, then by all means let us elect one. Let us have snap elections for president.

I may not like it if Estrada or De Castro wins the elections, but I must respect it. That is the people's will; that is what we have elections for. No individual or group may presume to know what's best for the people, only the people may presume to know what's best for them. The question is not who or what, it is how. It is the people themselves answering the question of who and what, through their vote. Snap elections are the only thing that can guarantee a new government that the citizens can at least uphold, if not admire. Snap elections are the only thing that can unite rather than divide all those who want an end to the current travesty. All other solutions will always suffer from questions of legitimacy and self-interest. The various groups and individuals fighting Ms Arroyo cannot grasp this, they won't just lose the battle, they'll lose the war.

As will the rest of the country.

Wednesday, August 31, 2005

Newsbreak Story

Cheats Inc
By Miriam Grace A. Go
Newsbreak Assistant Managing Editor



Around this time last year, some of the political operators who helped President Arroyo win in the 2004 elections were called to work again. The month before, on Aug. 8, 2004, the President filed her reply (with a counter-protest) to the election protest of actor Fernando Poe Jr., her closest rival. Poe had alleged that Arroyo's votes were padded by more than one million and thus reversed the results of the election in her favor.

There were two ways Poe wanted the votes verified, both involving revisiting the election returns (ERs). The documents accomplished by teachers who man the polling precincts, the ER is the first step in consolidating the ballot count. In the absence of any manipulation, it should reflect the true number of votes. The figures from the ERs are then consolidated in the municipal statement of votes (SOVs), and the figures in the SOVs are totaled in city or provincial certificates of canvass (COCs).

For Luzon and the Visayas, Poe asked for the "ER-down" counter-checking. Through this approach the totals in the ERs would be compared with the ballots from the corresponding precincts. His camp was convinced that in the President's bailiwicks in these island groups, the figures in the ERs, SOVs, and COCs were consistent since these were supposedly accomplished before the elections, and were switched with the genuine forms before the local canvassing.

For Mindanao, he wanted the "ER-up" approach. The figures in the ERs would be added up again to check if the SOVs reflect the accurate totals, then the SOV figures will be totaled and checked against the figures in the COCs. (This is the move that President Arroyo's allies in Congress refused to do during the canvassing of presidential and vice presidential votes.) Poe was convinced that in this southern island, operators for President Arroyo left the ERs and SOVs alone and just tampered with the figures in the COCs.

In questioning or proving President Arroyo's victory, therefore, the election returns would be the most crucial documents.

Switching ERs

So starting September 2004, or three months after President Arroyo was proclaimed winner, a group hired by the administration reportedly started printing ERs that they intended to fill up and then switch with the genuine ERs that were in some of the ballot boxes being kept in the House of Representatives.

The target of the operation was ERs from the Muslim Mindanao area and surrounding provinces, where the alleged vote padding was done only in the COCs. Apparently, the ER-switching was meant to fix the records to pass future scrutiny. The figures in the new ERs, when added up, would now be consistent with the totals in the COCs.

The administration has repeatedly denied allegations of cheating.

But this is the story that six operators who worked for President Arroyo told NEWSBREAK in recent interviews. We sought them out as we tried to complete the picture of what actually happened during the presidential elections. Most of them are long-time NEWSBREAK sources, and had provided information in our series of reports on poll fraud last year.

They said that even if they revealed damaging information regarding the elections, they doubt if the opposition would really go out of its way to identify them and ask them to surface. "Some of them have utilized us in the past and they will be needing us in the future," one of them said. For security reasons, however, these sources shall remain unidentified.

One of the sources entered the room in the Batasan complex and participated in switching the fabricated ERs with the original ones in January and February this year. His participation was confirmed by two other sources, one of them a police officer who belonged to the group that planned this post-proclamation operation.

The other sources were privy to this Batasan operation because they belong to the small circle of operators who carried out the padding of Ms. Arroyo's votes before elections and after canvassing in various regions nationwide.

The President, her close advisers, and officials of her party have maintained that she won in the elections fair and square. If the accounts of her own operators are to be believed, however, the administration not only planned to cheat way before the May 10, 2004, elections, but continued tampering with the presidential votes even after Poe had died in December 2004, and just before the Presidential Electoral Tribunal dismissed with finality his protest in March 2005.

Testing the Waters in 2001

Three sources, who did special operations for the senatorial candidates of the People Power Coalition in 2001, said Ms. Arroyo and her strategists, as early as then, were already studying how vote-rigging could be done for her possible candidacy in 2004. At the time, she had just assumed the unfinished term of ousted President Joseph Estrada, and was therefore eligible to run to get her own mandate.

On May 18, 2001, the Friday after the senatorial elections, President Arroyo reportedly met with election lawyer Roque Bello, a retired regional director of the Commission on Elections (Comelec) in his 60s who is known in political circles to have the sophistication and the right contacts within the poll body to influence the votes to favor whoever his principal is. We were able to reach Bello on his cell phone last August 2, but he declined to give an interview.

In that 2001 meeting, the President was supposed to have been given Bello the orders to make sure Ralph Recto would win a full six-year term, to prevent Francis Pangilinan's votes from being shaven, and to keep hardline opposition candidates from winning.

What the President actually wanted from Bello at the time was to effect a 13-0 sweep for her slate, one of the sources said. The President, he disclosed, was apparently aware of how Bello was said to have achieved for former President Ferdinand Marcos's slate the 21-0 sweep during the Interim Batasang Pambansa elections in 1978. Still, some opposition candidates "who also operated" slipped into the winning circle.

"She realized [from the 2001 results] that [unlike during the dictatorship] it is no longer possible to carry out special operations for entire slates; individual candidates pay for operators. She learned that it would be easier if she focused on her votes alone," another operator said.

In early 2004, the President reportedly considered Bello and Garcillano for the two commissioners' seats about to be vacated at the Comelec. Garcillano was eventually named and on February 19 started a series of meetings with local Comelec officials at the residence of alleged jueteng lord Rodolfo "Bong" Pineda in Greenhills, San Juan. The meetings continued until March.

Bello, however, was reportedly tapped to devise a strategy to get a pre-determined number of votes for the President. One of those who worked in Bello's group said Bello proposed that genuine ballots be filled up before the elections and switched with the ballots that voters will cast at the precincts. He reportedly explained that working on the ballots would mean that the succeeding documents, from the ERs up to the COCs, would be "clean" and pass any scrutiny.

By April, the President's strategists decided to abandon Bello's proposal because they deemed that dealing with the ballots would be a lot costlier and would involve more risk of getting discovered. They left the ballot stage out of their strategy and opted for filling up genuine ERs, SOVs, and COCs with pre-determined numbers of votes. The forms were provided by the Comelec.

'Blackjack,' the Operator

The wholesale switching of pre-fabricated election forms was done in a few provinces in Luzon, particularly Ilocos Sur and the Arroyo's home province of Pampanga, and in the entire Visayas. The Visayas operation, particularly in Cebu, was considered more sophisticated because the administration effected an artificial dramatic increase of voters' population and registered "ghost precincts." This was to justify the lopsided share of votes that operators would enter into the prepared election forms.

The regional and provincial election officials whose cooperation was needed for this operation were planed in to Manila and billeted either at the Aloha Hotel or at the Grand Boulevard Hotel, both along Roxas Boulevard. The "production line," sources said, was in safehouses in the target provinces.

"Nobody would be too stupid to bring in those bulky ERs and COCs in the hotels," one of them said. He said that the safehouse in Cebu was rented for six months, but was occupied only from March to June 2004. The safehouse in Iloilo was located in a private subdivision. The forgers of signatures (called "golden arms") and those who thumbmarked the forms (called "pianistas") were flown in from Manila, the sources said.

The master operator, or the one who gave direction to negotiators and bagmen, for the three regions in the Visayas, was said to be Victor Rigor, who was a liaison between MalacaƱang and the then Ministry of Local Government during the Marcos regime. This means that Rigor, now in his mid-50s and known in the political circle as "Blackjack," was connected to the agency in the same years that Ronaldo Puno, Ed Soliman, and Gabriel Claudio were there. The three worked in Arroyo's campaign, either officially or in the shadow campaign teams. Puno is a strategist closely identified with the First Gentleman, and is now congressman of Antipolo City. Soliman is an undersecretary of the Department of the Interior and Local Government. Claudio was the campaign manager of the President last year and is at present the presidential adviser on political affairs.

NEWSBREAK was unable to reach Rigor, but one of his operatives confirmed the information.

This operator said Rigor differentiates his work from cheating, which is "the changing of the election results." He said Rigor would maintain that what he does is just "influencing" the outcome of the election by a vote-delivery system.

Vote Padding

The Arroyo camp was confident that with the fixed votes coming mainly from the Visayas, the President would be able to win by at least one million votes. However, when the results from Poe's bailiwicks in Luzon came in, the President's strategists estimated that the votes could wipe out her margin from the Visayas.

Dagdag-bawas was then carried out in the Muslim region and a few neighboring provinces in Mindanao.

"They panicked, so Garcillano's operators just switched votes indiscriminately," one of the operators said. Since the Autonomous Region in Muslim Mindanao was Poe's stronghold, the easiest way to pad Arroyo's votes there was to just switch her totals with Poe's in the COCs, the source pointed out.

Evidence in the custody of the opposition—including the fifth copy of the ERs that they were entitled to under the law, but which the police and military confiscated in a raid in Rizal—seem to support the accounts of the administration operators.

An administration strategist said that the top 11 provinces where the padding of votes for the President was maximized were (according to the percentage of votes they contributed, from the highest): Cebu, Pampanga, Iloilo, Negros Occidental, Bohol, Southern Leyte, Zamboanga del Sur, Maguindanao, Lanao del Sur, Sultan Kudarat, and Basilan. The padded votes amounted to 1.2 million.

Arroyo officially finished with 12,905,808 votes, against Poe's 11,782,232. If the alleged padding of votes is true, then her lead of 1.12 million is well within the margin provided by the operation.

The extent of the vote-padding acknowledged by the source is not very far from estimates that other camps have come up with.

Verzola Study

Roberto Verzola, an engineer teaching at the UP, published a study on the results of the 2004 elections based on the ER-based quick count of the National Citizens' Movement for Free Elections (Namfrel). He said the ERs from Namfrel, although incomplete, already indicated a total vote padding of 837,454 in favor of President Arroyo—mostly from the "source" provinces acknowledged by the administration strategist.

Sixto Brillantes, who was Poe's counsel in the election protest, said that based on the evidence they have, the extent of the cheating was between 1.3 million to 1.5 million votes.

Verzola and Brillantes separately pointed out that when Namfrel stopped its quick count, Arroyo's lead over Poe was only about 600,000 votes. At the time, there were still 4 million votes from Poe's bailiwicks that had yet to be counted, and only 1 million uncounted votes from Arroyo's areas.

In a briefing with journalists in August, Verzola said that based on the Namfrel figures, President Arroyo could have won over Poe by only 77,000 votes, but only because the "highly questionable" votes from Central Visayas and the ARMM were included.

To Poe's camp, this means that if the votes from these two regions would be corrected, Poe could emerge the winner, with a lead of 200,000 to 300,000 votes over Ms. Arroyo.

So when Poe filed his protest, according to administration operators, the Arroyo camp intended to "correct" the incriminating ERs from Mindanao that were in the ballot boxes in Batasan. This was when Bello and his network of operators were again called in.

Clandestine Trips to Batasan

The operator from Bello's group said that the questioned Mindanao provinces involved 10,000 ERs, but 4,000 were "duly corrected" before these were sent to Manila during the canvassing. Using official paper from Comelec, they tried printing the 6,000 more ERs from September to November 2004.

He said "wastage resulted [because] the ERs could not be reproduced exactly as the ones done by Ernest Printing," referring to Comelec's official printer of ERs for last year's polls. They couldn't source a numbering machine, a Heidelberg similar to what Ernest Printing used.

In mid-December, however, a contact of Bello was able to "borrow" the numbering machine from Ernest Printing. The operator said they printed the ERs during the Christmas week. The ERs were accomplished by "golden arms" and "pianistas" again.

The source said they made "four clandestine entries" into the Batasan in January and February 2005. He said a police general helped them in the operation. Policemen guarded the room of ballot boxes. He said the guards "looked the other way" when they entered, which was either late Sunday evening or early Monday morning.

The last entry, the source said, was made the weekend before Valentine's Day. The police official who facilitated their entries was named to another government agency immediately after the operation.

As election campaigns go, the operators said, they consider their work completed once their principal has been proclaimed. After the proclamation comes the "cleanup," when they close headquarters, abandon safehouses, recall those assigned in the field, and hopefully count victory bonuses.

For their biggest candidate last year, they noted, their "cleanup" was of a different kind.