Do we have megabucks to fund the Mega regions?

1 August 2006—On 24 July, President Gloria Macapagal-Arroyo boasted the government has the money to bankroll its programs. She said, “We now have the funds to address social inequity and economic disparity.” But a week after the State of the Nation Address, her economic managers are still in a quandary as to the estimated cost for all the infrastructure projects she mentioned in her speech.

President Macapagal Arroyo introduced the “super regions” comprised of North Luzon Agribusiness Quadrangle, Metro Luzon Urban Beltway, Central Philippines, Mindanao and the Cyber Corridor. Her main agenda is to build airports, mass transport systems, bridges, and ports, boost agricultural capacity, institute electoral reform, reduce red tape, and pursue Charter change. Budget Secretary Rolando Andaya in a Cabinet meeting on 1 August said the major projects will cost P372 billion. The President plans to do all this with support from heads of local government and Congressmen by the end of her term in 2010.

Despite her positive outlook, surveys released on 20 July report 59% of household heads report themselves as poor (Social Weather Stations) and about one out of two Filipinos or 56% were undecided about truthfulness of the 24 July SONA (Pulse Asia). On top of these, the President is also facing 8 impeachment complaints before the House Committee on Justice.

16 May 2006—In March 2006, all in a month’s time, President Macapagal Arroyo placed three government-owned and controlled corporations under her control. The reason given is to coordinate policies and programs to ensure effective implementation of the President’s policies. However, it cannot be discounted that two of the three GOCC’s are cash cows and major sources of public funds. She says funds will be used for her “priority” projects.

The first Executive order was signed on 6 March 2006, placing the PAGCOR in the control of the Office of the President. Executive Order 330-A effectively amended EO 330, which placed PAGCOR under the Department of Finance to manage and maximize PAGCOR’s fund generating capacity. But in a reversal of her own policy, the GOCC was transferred back to the Office of the President "to finance priority infrastructure and socio-economic projects as determined by the President."

Three weeks later on 27 March, PAGCOR’s twin agency PCSO was also placed under the control of the President’s Office with the end view of effectively implementing the social agenda of the President. PCSO was under the Department of Health, mainly to fund its health programs, medical assistance, and charities.

The third, Executive Order 516, placed the Bases Conversion Development Authority under the President’s supervision formerly under the Department of Trade. The two EO’s concerning PAGCOR and PCSO are cause for concern because it gives the Office of the President broad powers over funds amounting to billions, where proper accounting, transparent use, and accountability may be non-issues in the future.


Military secrets

18 April 2006—Just when everybody was on a holiday mood last Wednesday, 12 April 2006, the findings of the Mayuga report was released. The complete report, however, with names of witnesses and their testimonies, is being kept confidential by the AFP Fact-finding Board headed by Vice-Admiral Mateo Mayuga.

Vice-Admiral Mayuga read a summary of the findings over a government network around mid-night. It cleared the four generals (Lt. Gen. Hermogenes Esperon, Maj. Gen. Gabriel Habacon, retired Maj. Gen. Roy Kyamko, and retired Brig. Gen. Francisco Gudani) mentioned in the “Hello, Garci” tape of participating in any election fraud.

While the fact-finding investigation was meant to shed light on alleged involvement of military officers in the election fraud, findings of the report leave doubts in its wake. Based on the findings, “not one witness testified of any direct knowledge whether or not they participated in any election fraud.” The Mayuga report also came up with these recommendations:

Another recommendation is to further investigate and determine specific culpability of some personnel on alleged “unprofessional” conduct while performing election duties. But there was no mention of who will be investigated. In August 2005, the Young Officers’ Union suggested investigating several officials suspected of participating in poll cheating, including Brig. Gen. Nehemias Pajarito and Brig. Gen. Nelson Allaga, then colonels assigned in Sulu under Gen. Gabriel Habacon. Both have since been promoted.

The report was also quick to point out that the board’s purpose is to make recommendations on the future role of the AFP in the electoral exercise. It was clear in saying, “Ours is not to pass judgement on culpability.” As far as the Mayuga board is concerned, the rest of the report including testimonies are confidential and cannot be disclosed – despite requests from Congress and Sen. Rodolfo Biazon for copies of the full report. Meanwhile, the Philippine Center for Investigative Journalism has released some of the resource persons interviewed by the fact-finding board.

The fact-finding board was established under then AFP Chief of Staff Gen. Efren Abu in July 2005. Other members of the board are Commodore Emilio Marayag, Brig. Gen. Romeo Alamillo, Col. Caridad Aguilar, and Maj. Gen. Raul Relano. The report was prompted by the mention of AFP officials in alleged wiretapped conversations between President Gloria Macapagal Arroyo and Comelec Commissioner Virgilio Garcillano during the 2004 elections.






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