MANSION HOUSE, Baguio City - President Gloria Macapagal-Arroyo will unveil Tuesday the historical markers of this venerable summer residence of Philippine presidents that is celebrating its hundredth year of existence.
The commemorative ceremonies will start at 10 a.m. at the Mansions front gates, where the two centennial historical markers one in English inscription, the other in Pilipino will be installed.
National Historical Institute (NHI) Executive Director Ludovico Badoy will assist the President in the unveiling of the 27x35 markers which chronicle the beginnings of the Mansion House or simply the Mansion.
The presidential summer residence was constructed during the American rule at the instance of then Philippine Vice Governor-General William Cameron Forbes as part of the Burnham Plan for Baguio in 1908.
William E. Parsons, who designed the Mansion as part of the Burnham Plan for Baguio in 1908, drew inspiration for the edifice from the then City Beautiful Movement in the United States.
Forbes would later become the governor-general of the Philippines from 1909 to1913 when William Howard Taft was the US president.
Forbes started out as the Commissioner of Commerce and Police in the Philippines from 1904 through 1908 under US President Theodore Roosevelt. He became the Vice Governor of the Philippines from 1908 to 1909, before becoming governor-general for four years.
He would come back to the Philippines 12 years later in 1921 as the head of the Woods-Forbes Commission under US President Warren G. Harding to investigate conditions in the Philippines.
Ambeth Ocampo, NHI chairman, said the presidential mansion at Baguio’s wooded Pacdal area served as the summer residence of American governors-general from1908 to 1935, and later of Philippine presidents starting with Manuel L. Quezon.
The Mansion also served as the venue of the special session of the Second Philippine Legislature in 1910.
Destroyed in 1945 during World War II, the Mansion was rehabilitated two years later in 1947 and immediately became the venue of the United Nations (UN) Economic Commission of Asia and the Far East (ECAFE).
The Mansion was also the venue of the 1948 summit of the United Nations (UN) Food and Agriculture Organization (FAO) and the First Meeting of the Southeast Asian Union (SEAU), also known as the Baguio Conference, in 1950.
PGMA renews call for unity in face of global financial debacle
President Gloria Macapagal-Arroyo has renewed her call for all Filipinos to end all "political bickerings" and instead forge ahead as a united people in meeting the challenges of the financial crisis sweeping the world, Press Secretary Jesus Dureza said today.
In an interview aired over government-run dzRB this afternoon, Dureza said the President made the call for national unity in order that the country will be “ready to face these challenges in all fields and in all levels."
The 2010 election is still 17 months away; political bickerings should not be allowed to divert the people’s attention from the immediate challenges the Philippines faces, he pointed out.
"Yun siguro ang paghandaan natin at i-minimize natin yung usapang politika dahil malayo pa ang 2010 at mahalaga na magkaisa tayong lahat dahil kailangan natin unity of purpose here because the challenges that we face are non-partisan,” Dureza said.
The Palace official stressed that the issue is not about politics. “It is about our survival as a nation and being able to withstand anuman yung difficulties na haharapin natin together.”
"So yan ang panawagan ng ating Pangulo everytime, all the time at sana naman bigyan natin ng pagkakataon na magkatulong-tulong tayong lahat, yung mga political bickerings natin ay isantabi na muna natin dahil matagal pa ang 2010," he added.
Dureza pointed out that while the government, or any person for that matter, cannot prevent people from having their own political agenda, "we are merely focused on governance and doing what we should do together as a nation."
PGMA to lead 112th Rizal Day rites in San Fernando, La Union
SAN FERNANDO CITY, La Union – For the second year in a row, President Gloria Macapagal-Arroyo will lead the commemoration here on Tuesday (Dec. 30) of the anniversary of the martyrdom of the country’s national hero, Dr. Jose Rizal.
President Arroyo, who will first unveil the twin centennial markers of the Mansion House in Baguio City earlier in the day, will arrive at 11 a.m. at the San Fernando City Plaza for the 112th Rizal Day celebration.
Upon arrival at the city plaza, the President will be accorded full military honors, complete with a 21-gun salute, by a contingent from the Philippine Military Academy (PMA).
The presidential military honors will be followed by the flag-raising ceremony to be led by the Chief Executive.
She will be assisted by La Union officials led by Gov. Manuel Ortega, Rep. Victor Ortega (1st Dist.), Rep. Tomas Dumpit Jr. (2nd Dist.) and San Fernando City Mayor Pablo Ortega, and National Historical Institute (NHI) Executive Director Ludovico Badoy.
The traditional wreath-laying at the foot of the Rizal Monument will follow with Armed Forces of the Philippines (AFP) Chief of Staff Alexander Yano assisting the President. A program at the City Plaza has been set for this year’s observance of Rizal Day to be highlighted by a statement of the President.
The Rizal Day rites will be televised live over the government’s TV stations.
On Wednesday (Dec.31), the President will return to Baguio City for a 10:30 a.m. interview with the local media at the Guesthouse of the Mansion House.
The media interview will be followed by the distribution of Christmas food packs to some 3,000 families from the city’s 128 barangays.
External Debt Drops by US$1.3 Billion in Third Quarter
As of end-September 2008 outstanding Philippine external debt stood at US$53.5 billion, down by US$1.3 billion from the end-June 2008 level of US$54.8 billion and by US$0.9 billion from the US$54.4 billion recorded as of end-September 2007.
External debt refers to all types of borrowings of Philippine residents owed to non-residents that were approved and/or registered by the Bangko Sentral ng Pilipinas (BSP).
Improvements in Major External Debt Ratios Continue.
“The decline in external debt stock was also accompanied by a continuing improvement in the country’s external debt related ratios,” BSP Governor Amando M. Tetangco, Jr. said.
First, the external debt ratio, or total outstanding debt as a percentage of the country’s Gross National Product (GNP 1 ), declined to 28.9 percent, from 36.8 percent in September 2007 and 35.0 percent in December 2007. In terms of Gross Domestic Product (GDP 1), the external debt ratio also improved to 31.8 percent, from 40.2 percent in September 2007 and 38.1 percent in December 2007. Since 2002, the ratio has generally traced a downward trend, indicating a sustained improvement in the country’s capacity to service its maturing foreign obligations.
Second, the external debt service ratio (DSR) or the percentage of total principal and interest payments to total exports of goods and receipts from services and income (which include remittances of overseas Filipino workers) was estimated at 10.1 percent during the period January to September 2008, lower than the 10.5 percent recorded during the same period last year. The DSR has remained well below the 20 to 25 percent international benchmark, indicating that the country has sufficient foreign exchange earnings to service maturing principal and interest payments during the current period.
Third, gross international reserves (GIR), which stood at US$36.7 billion as of end-September 2008, rose to the equivalent to 4.4 times (from 4.2 times last quarter) the level of short-term debt based on the original maturity concept and 3.0 times (from 2.9 times last quarter) under the remaining maturity concept. Short-term accounts under the latter category include obligations with original maturities of one year or less plus amortizations on medium and long-term accounts falling due within the next 12 months, i.e., from October 2008 to September 2009.
Please refer to the attached table for the time series data from 2000.
Changes in External Debt Stock
The substantial reduction in the debt stock during the third quarter was due to the overall net principal repayments posted by both the public and private sectors aggregating US$1.3 billion. This amount included prepayments of US$511 million during the period, made primarily by the National Power Corporation (NPC).
Year-on-year, the debt stock declined by US$945 million, also as a result of net principal repayments which reached US$3.3 billion. These were partially offset by: (a) upward foreign exchange revaluation adjustments (US$1.5 billion), mainly reflecting the increase in the U.S. dollar equivalent of loans denominated in Japanese yen, which has strengthened vis-à-vis the U.S. dollar; (b) increased holdings of Philippine debt papers by non-residents (US$442 million); and (c) upward audit adjustments (US$404 million).
Prepayments on external debt accounts during the 12-month period ending September 2008 totaled US$1.8 billion. Major portions of these prepayments were made by the NPC, private commercial banks for their tier 2 capital issues and other major private borrowers across various sectors.
External Debt Profile
The maturity profile of the country’s external debt remained predominantly medium to long term, which accounted for 84.5 percent of the total. These loans which have original tenors of more than one year, had a weighted average maturity of 19.8 years, longer than the 18.9 years recorded at end-2007. Public sector borrowings had an average term of 21.6 years, much longer than the private sector’s 11.7 years. Short-term external debt (mostly inter-bank borrowings and import obligations) represented 15.5 percent of the total.
Total consolidated public sector external debt declined by US$0.4 billion quarter on quarter to US$38.3 billion as of end-September 2008. Its share to total, however, increased to 71.7 percent, from 70.6 percent due to the lower net repayments posted by the public sector compared to the private sector.
Private sector external debt dropped by nearly US$1.0 billion to US$15.1 billion, from US$16.1 billion in June 2008; its share to total also dropped to 28.3 percent, from 29.4 percent.
By type of creditor, official creditors (consisting of multilateral institutions, such as the Asian Development Bank and the World Bank, and bilateral creditors, mainly the Japan Bank for International Cooperation) accounted for 42.0 percent of the country’s total external debt, followed by foreign holders of bonds and notes at 33.4 percent, and foreign banks and other financial institutions, 16.5 percent. The rest of the creditors (8.1 percent) were mostly foreign suppliers.
Classified by currency, U.S. dollar-denominated accounts comprised more than half of the debt stock (53.0 percent) while Japanese yen-denominated accounts comprised 26.8 percent. Multi-currency loans from the Asian Development Bank and the World Bank comprised 9.3 percent, and the rest of the accounts, which were in 18 other currencies, accounted for 10.9 percent balance.
DILG seeking hike in subsistence, medical allowances for inmates under 2009 proposed budget
The Department of the Interior and Local Government (DILG) wants to increase the subsistence allowance per inmate under the supervision of the Bureau of Jail Management and Penology by P10 a day.
This food allowance increase is among the proposals that the DILG is asking the bicameral conference committee of the Senate and the House of Representatives to consider when it tackles the proposed 2009 General Appropriations Act (GAA).
Both chambers have already approved their respective versions of the 2009 budget plan and will hammer out the final version in the bicameral conference committee starting Jan. 6 next year.
DILG Secretary Ronaldo Puno said that on top of the proposed hike in the subsistence allowance of BJMP prisoners, the department is also asking Congress to approve the proposal to increase the medical allowance of each inmate by P2 a day.
He said that the proposed increase hikes from P50 to P60 a day the subsistence allowance of 69,360 inmates under the supervision of the BJMP in the country’s district, municipal and city jails nationwide and the medical allowance from P3 to P5 a day.
The BJMP exercises supervision over 150 district jails, 93 city jails, 835 municipal jails, 2 youth centers, and 2 female dormitories.
Puno said the proposed hike in the subsistence and medical allowances of inmates takes into account adjustments due to inflation and plans to improve living conditions inside BJMP-supervised jails.
The BJMP proposed budget of P4.16 billion for 2009 is 12% higher than its 2008 appropriations of 3.71 billion.
Of the amount of P4.16 billion, P1.74 billion will be for maintenance and other operating expenses (MOOE); P2.21 billion for personal services; and P201.62 million for capital outlay.
Under the proposed budget of the BJMP for 2009, P63.59 million will be allocated to hire 500 new jail officers and another P201.62 million will be used to improve the bureau’s security capabilities and decongest overcrowded facilities for inmates.
Puno noted that the hiring of new jail officers under the proposed 2009 national budget will help address the acute shortage of manpower in the BJMP, where there is only one jail custodian for every 53 inmates.
The United Nations standard on jail custodial ratio is one officer for every 7 inmates.
The proposed P201.62 million capital outlay for the Bureau will be used to construct new jail buildings and offices and procure short and long firearms, prisoners’ vans, and other equipment like gas masks and tear gas canisters.
For 2009, the BJMP plans to procure at least 250 units of short firearms, which requires an allocation of P12.7 million; 125 units of long firearms worth P18.15 million; 150 units of prisoners’ van, P127.05 million; and other equipment like gas masks, tear gas canisters, and computers, P5.842 million.
For the construction of new jail buildings, regional offices, additional cells for inmates, and perimeter fences, the DILG is seeking an allocation of P39.46 million next year.
The present personnel strength of the BJMP at 7,476 employees is only 15% of the ideal manpower requirement of 31,643 for the bureau for a total jail population of over 60,000 inmates, Puno noted.
For an average of 6,000 inmates nationwide who need to be transported to and from court daily, the BJMP only has 130 prisoners’ vans, 8,085 serviceable handcuffs, 4,034 short and 1,239 long firearms.
Even more alarming, an estimated 48% of its jail officers have not been issued firearms as a result of the supply shortfall.
Puno likewise pointed that additional jails are needed to decongest existing facilities, where inmates are now packed in the most primitive and inhuman conditions, causing deaths from diseases and jail disturbances.
Department officials crafting blueprint for 2009 high-impact projects vs global crisis
Secretary Arthur Yap of the Department of Agriculture has given marching orders to DA officials to craft a comprehensive blueprint that would ensure the effective and speedy implementation of the agency’s “high-impact” projects in 2009, in sync with Malacanang’s plan to pump-prime the economy and preserve as well as create jobs in the midst of the global economic meltdown.
Meeting with key DA officials and regional executive directors (REDs) during last Monday’s Management Committee (ManCom) session, Yap said these “high-impact” projects are topped by those that are “labor-intensive” and can be quickly implemented as soon as the Palace has frontloaded funds for its economic stimulus program for 2009.
He said during the meeting at the Bureau of Soils and Water Management (BWSM) convention hall that these upcoming projects should be able to preserve jobs and generate new employment opportunities, given that “job creation is the first line of defense against the global financial meltdown”.
Projects that are encountering problems such as those with right-of-way issues or are difficult to implement will be set aside until they can be resolved, Yap said.
“We should hit the ground running in 2009,” Yap said. “Our goal is to award and implement 60% of our hard infrastructure projects by the first half of 2009 so that we can create more jobs and rev up the economy, especially in the countryside.”
Yap’s directives came as Malacañang moved to improve the ‘absorptive capacity” (or ability to utilize budgetary allocations) of government agencies in 2009 by baring plans to slash the allocations of offices that are slow in implementing projects and rechanneling such funds to other agencies able to deliver on their program commitments for the year.
“The DA family will draw up this master plan on the implementation of its high-impact projects in consultation with industry leaders in the agriculture and fisheries sector, so that the Department can pinpoint where the government will have to invest its resources and where the private sector can provide funding and other forms of assistance for other economic stimulus initiatives.
Yap pointed out the need for the Department to “synchronize” its investments with the private sector to optimize public spending in response to this suggestion by industry leaders from the various agriculture subsectors during an executive session or consultative meeting at the BWSM that was held prior to the ManCom meeting.
At the same time, Yap also stressed that the DA will monitor closely the implementation of its high-impact projects to ensure the judicious disbursement of funds particularly to its program partners in the private sector.
This objective dovetails with Yap’s earlier order on the creation of national and regional monitoring teams to conduct “periodic field validation and rapid appraisal” of the Department’s intervention measures under its banner program Ginintuang Masaganang Ani (GMA), and the adoption of stringent guidelines on the release of funds to program partners like nongovernment organizations (NGOs) and people’s organizations (POs).
To maximize the use of DA funds, Yap said the DA is also shifting its focus on hard or “big-ticket” projects covering irrigation maintenance, postharvest facilities, farm-to-market roads (FMRs) and rural extension work, in lieu of “soft” projects like fertilizer support to farmers.
For instance, he said, instead of the fertilizer discount coupons that the DA has given out in 2008 to farmer-beneficiaries in partnership with local government units (LGUs), the Department will instead provide organic fertilizer manufacturing support to farmers in 2,600 clusters or sites
where the DA will channel a bulk of its funds for intervention measures in 2009.
These clusters of adjacent or neighboring farms are spread out across 48 provinces, mostly in rainfed areas, where per-hectare yields are below the national average of 3.8 tons per hectare.
Organic fertilizer manufacturing support and other intervention measures will be channelled to these 2,600 clusters as a way to rapidly boost palay harvests by raising their per-hectare yields to the national average, he said.
Moreover, the DA will give priority to areas where the local government units are willing to provide counterpart funding for farm-friendly programs, as a way to funnel more funds into the countryside, stimulate rapid growth and create more jobs. (DA-PRESS OFFICE)
DA lobbying for RP's FMD-free status
The Department of Agriculture (DA) will soon submit to world animal health authorities all documents required to have Luzon certified as free of the Foot-and-Mouth Disease and pave the way for the global declaration of the Philippines as an FMD-free country.
Luzon is the only remaining area in the country that has not yet been declared by the Office Internationale des Epizooties (OIE) or World Organization for Animal Health as FMD-free, according to Bureau of Animal Industry (BAI) officials.
BAI director Davinio Catbagan said that the OIE already declared as FMD-free the entire Mindanao in May 2001, and then Masbate, Palawan and the entire Visayas in the same month the following year.
Catbagan said the DA remains confident that the issue on the Ebola Reston virus, which was earlier detected in a few hogs in two swine farms in Luzon, would not affect the Philippines’ bid to secure a clean bill of health from the OIE, considering that the government has been fully transparent and decisive in dealing with this animal health concern.
“We have exerted extra efforts to make sure that we deal with the Reston issue in a transparent and responsible manner, which is why the DA is highly optimistic that the OIE will act positively on our application for an FMD-free status,” Catbagan said.
He noted that the DA had acted on the Reston case by placing the two farms on quarantine.
As an additional precautionary measure, even the handlers in the farms and the butchers in the slaughterhouses where the animals are usually brought, were tested, even though the virus has been known to be non-pathogenic in the past, which means it is not harmful to humans. All the tests conducted on human samples yielded negative results for the presence of the Reston virus, Catbagan said.
Additional precautionary measures being carried out by the DA include the continuous monitoring of the movement of animals and pork meat and the imposition of stringent requirements in the issuance of health certifications on animal shipments, he said.
Executives of international health institutions such as the WHO, the United Nations Food and Agriculture Organization (FAO) and the Office International des Epizooties (OIE) or World Organization for Animal Health have commended Secretaries Arthur Yap of the DA and Health Secretary Francisco Duque for their respective offices’ quick or “appropriate action” in containing the latest resurfacing of the Reston virus.
WHO country representative to the Philippines Dr. Soe Nyunt spoke on behalf of OIE and FAO in thanking Yap and Duque for their efforts during a marathon meeting with over 20 industry stakeholders at the DA on the Reston issue. Also present during that meeting were Dr. Julie Hall, team leader of its Emerging Infectious Diseases Division; Anthony Hazzard, WHO regional adviser for Food Safety; Carolyn Anne Coulombe, WHO technical officer (Risk Communications) Communicable Disease Surveillance and Response; and Research Institute for Tropical Medicine (RITM) director Remigio Olveda.
In a report to Yap, Catbagan said that the DA aims to secure OIE certification for most of Luzon as FMD-free "without vaccination," and the regions of Central Luzon and Calabarzon (Cavite-Laguna-Batangas-Rizal-Quezon) as FMD-free areas with vaccination.
Catbagan pointed out that the Philippines has not had an FMD outbreak in almost three years.
"Our papers are complete so we are now looking at the possibility of submitting our application to certify Luzon as FMD-free as well depending on the timetable of the OIE," he said.
He said BAI would submit the paper requirements next month, in time for the meeting of the OIE’s Scientific Commission within the first two months of next year.
The last case of FMD was reported in Lucban, Quezon on Dec. 28, 2005.
FMD is a highly contagious viral disease that strikes cloven-hoofed animals.
According to Reildrin Morales, the deputy head of the FMD National Task Force, the .OIE has asked the government on sanitary checks on swill feeding in backyard farms. Majority of backyard hog farmers who use swill either cook it or just add it to livestock feeds, he noted.
They thought that most hogs from backyard farms feed on swill so we conducted a national survey to scientifically answer their questions,". Morales said.
Backyard farming accounts for 73% of the country’s hog production.
Morales said the OIE also asked the BAI about controls on hog transport between areas where vaccination is practiced and the areas that are less stringent on this requirement.
To date, the DA has established 42 checkpoints surrounding the high-risk areas of Central Luzon and Calabarzon (Cavite-Laguna-Batangas-Rizal-Quezon).
He said that the OIE also requires applicants to cite measures to prevent, detect, diagnose and eradicate FMD, control pork imports and contingency plans as part of the application for FMD-free certification.
The DA has been stepping up the implementation of measures to keep the Philippines FMD-free as part of its ongoing initiatives to help Filipino hog producers penetrate the export market and make the Philippines a viable site for halal food production. (DA-PRESS OFFICE)
Speaking Out
December 28, 2008
By Ignacio R. Bunye
The New Year is always a chance for everyone to start with a clean slate. While it is challenging to make resolutions and even more challenging to keep them, it is never too late to seriously consider putting one's life in order. This is especially true in matters of personal and family finance.
One particular New Year's resolution would be to start saving your money in banks. If one can afford to send text messages or drink a bottle of beer daily, certainly one can afford to save. Of course, it will take some degree of discipline to do it.
True, banks are a common sight nowadays—a testament to their indispensability to Philippine society. But there are still many Filipinos who refuse to entrust their hard-earned savings to thesefinancial institutions.
The Bangko Sentral ng Pilipinas (BSP), through its Corporate Affairs Office, headed by Director Fe de la Cruz, has come up with convincing reasons why depositing one's money in banks is way more advantageous than keeping it at home or in the office.
According to the BSP, small sums deposited regularly in banks can become a big amount over time because the earnings from the interest add to the savings. These savings can then be used to finance one's endeavors such as a new business or a down payment for a house.
Another important reason is the safety of one's money with the bank. You have peace of mind knowing that your money is kept in the bank's steel vault, safe from thieves, fire, floods, termites, and other calamities.
Officials of the BSP's Currency Management Sub-Sector, headed by Managing Director Maria Aurora Cruz, tell the heart-wrenching story of a retired couple who made the mistake of keeping their money at home instead of heading straight to the bank. The couple, both in their60s, had decided to sell their lot in Cavite for P1.5 million and immediately hid the proceeds under their bed after the transaction. When they inspected the cash after some time, they were horrified to see that the bills had been eaten away by termites. The couple was able to recover only P50,000 of the P1.5 million when they sent the damaged bills to the BSP for examination.
Despite the recent decision of the BSP to close some rural banks associated with the Legacy Group, for having engaged in unsound and unsafe practices, the BSP assures the banking system, as a whole, remains sound and stable.
Deposits with banks are also insured with the Philippine Deposit Insurance Corporation (PDIC) up to the amount of P250,000. A proposal is pending in both houses of Congress to increase the coverage to P500,000. In the rare event of a bank failure, depositors could gettheir money back up to the specified amount.
Managing one's finances wisely also means taking utmost care in deciding where to invest them.
A few weeks ago, the front pages of newspapers highlighted the escapades of a supposedly well-respected Wall Street money manager, who turned out to be the brains behind one of Wall Street's biggest Ponzi schemes.
In 70-year-old Bernard Madoff's pyramid scheme, money provided by new investors was used to pay seemingly high returns to early stage investors. The scheme collapsed when required redemptions exceeded new investments.
Madoff was able to victimize people from all walks of life: from the super rich to pensioners, and from big financial institutions to local charities.
In this case, a sensible New Year's resolution for your money is to keep in mind that if the returns offered in an investment proposition are too good to be true, then they most probablyaren't.
***There is street talk as to whether coins of the smallest denominations (such as 1 centavo, 5 centavos and 10 centavos) should still be used in financial transactions.
Many consumers complain that jeepney drivers and store owners refuse to accept these coins because they are reportedly not accepted by bigger businesses such as gas stations and supermarkets.
This may sound like these coins have no value, which according to the BSP, is the farthest from the truth. In fact, the BSP spends 6 centavos for every 1 centavo minted at the Bank's Security Plant Complex because of the importance of small change.
Ms. Maja Gratia Malic of the BSP's Currency Management Sub-Sector explains that if the 5-centavo coin is not around, businessmen would round prices off to the next higher value. A commodity which should only cost P1.95 would then be charged at P2.00.
So the next time someone refuses to accept your 1-centavo or 5-centavo coin, gently explain how these humble coins play an important role in the Philippine economy by keeping prices of commodities down.
