PIA Dispatch - Sunday, January 18, 2009

Govt focused on pump-priming economy, not on 2010 elections – Golez

Malacanang is focused on policies and programs that will "pump-prime" the economy and soften the impact of the global economic crisis on the Filipinos, especially the poorest of the poor.

Thus, declared Deputy Presidential Spokesman Anthony Golez Jr. today in answer to questions on the Palace’s reaction to the jockeying for the 2010 presidential contest.

"Hindi po namin tinututukan ang pamumulitika dahil ngayong 2009, ang pinaka-importante would be the pump-priming of our economy para ang mga kababayan nating mahihirap ang makinabang, particularly dahil nararamdaman ng mga bansa sa buong mundo ang global financial crisis," Golez said in an interview over Radyo ng Bayan.

Asked about the calls by certain political personalities to push the candidacy for president of Supreme Court Chief Justice Reynato Puno in 2010, Golez pointed out that every Filipino qualified for the presidency can run for the highest political post in the land.

"Karapatan ng isang Filipino na mag-ambisyon o managinip maging presidente ng ating bansa," Golez said, adding that “at the end of the day ang magde-decide ang mamamayang Pilipino.”

"Nirerespeto natin kung may ambisyon ang ibang mga kasamahan natin sa kawani ng gobyerno. We wish them well. We wish them luck," Golez added.


Palace welcomes probe of reported bid-rigging

Malacañang welcomes an investigation into the alleged bid-rigging of World Bank (WB)-funded government infrastructure projects involving at least three Philippine construction companies.

Deputy Presidential Spokesman Anthony Golez Jr., in an interview with Radyo ng Bayan today, said an investigation would shed light on the reported anomaly, as he urged all concerned to cooperate in ferreting out the truth of the matter.

He pointed out that the alleged bid-rigging was reported by the WB without any participation in the investigation of others involved in the projects.

“Sila-sila lang (WB) ang nag-imbestiga. Hindi nila isinama ang mga key players,” he said.

Golez pointed out that it would be good to get to the bottom of the matter. “Mas maganda na mag-tulung-tulongan ang lahat… para malaman kung sinu-sino ang nagkamali.”

Even if some of the contractors may have violated some unknown internal rules of the World Bank, they may not have necessarily violated Republic Act (RA) 9184, the Philippines’ Procurement Act, Golez explained.

He added: “Mas maganda nga po na ito ay review-hin para malaman kung may nilabag. Mas maganda kung titingnan natin ito… para masampahan ng kaso.”

“Ito dapat review-hin, imbestigahan kung may nilalabag na batas, kung may nilabag sa internal regulation ng World Bank. Maari ring walang nilabag na batas sa atin. Kung may nilabag na batas, dapat sampahan ng kaso,” Golez said.

Asked if the government planned to ask the WB to share its findings on the alleged collusion of the three Philippines-based companies, Golez said, “’Di ko alam kung ano ang terms of engagement pag dating sa internal investigation nila.”

“Definitely, kung pwede tayo makahingi ng kopya, I’m sure si (Budget Secretary Rolando) Andaya ay humingi na ng kopya ng investigation. But let me remind you that the investigation into the ban (in bidding) is internal to WB. ‘Di nila sinama ang key players.

“Sa lumabas na resulta nung investigation nila, sabi may maling nangyari. Yun, eh base sa kanilang -- ang paglabag sa procurement (rules) nila duon. Not necessarily lumabag sila (the three firms) sa ating batas. Hindi (RA) 9184 ang ginamit nilang basehan para sabihing may rigging o pandaraya,” he said.

The Office of the Ombudsman earlier said that it was already investigating the bidding of the projects even before the WB came out with its report and, consequently, banned seven construction firms – three of them Filipino, three Chinese and one Korean.

Earlier last Thursday (Jan. 15), President Gloria Macapagal-Arroyo ordered the Department of Trade and Industry (DTI) and other concerned agencies to look into the alleged bid-rigging cases.

The Palace recognizes that the “World Bank is stepping up its efforts to curb corruption” and that the WB “has the right to act accordingly when suspicions of collusion are raised,” Deputy Spokesperson Lorelei Fajardo had told media, adding that Malacanang “will make its recommendations once the facts are determined.”

On the same day that the WB report came out in Reuters, Budget Secretary Andaya said that the Department of Public Works and Highways (DPWH) “is suspending the involved companies from participating in any DPWH bidding for locally-funded or foreign-assisted projects.”

“Following the WB action against companies involved in a Philippine road project… the DPWH will make a decision whether to pursue blacklisting procedures against these companies within 15 days,” Andaya said.

Aside from going after the construction firms in question, “the Office of the Ombudsman is also set to complete its fact-finding investigation on public officials alleged to be involved in the WB road project by the first week of February,” Andaya added, stressing that the Arroyo administration remains “committed in the fight against corruption in government, procurement and recent efforts have already paved the way for the approval of new WB loans for roads improvement.”

The Jan. 15 Reuters report said one of the three Philippine-based companies barred by the World Bank – E.C. de Luna Construction Corp. -- had been barred permanently, and so was its owner, Eduardo de Luna.

Barred for four years were the Cavite Ideal International Construction and Development Corporation and the CM Pancho Construction, Inc.


PGMA, Church leaders join hands in implementing pro-poor service

President Gloria Macapagal-Arroyo will join hands with the leaders of the Catholic Church again on Monday (Jan. 19) in Pasay City in the implementation of the government’s program to provide basic social services to the marginalized sectors of society.

Like her visit to Don Bosco Parish in Tondo, Manila last Friday, the President will visit San Jose Nepumuceno Parish Church along C. Jose St. in Malibay, Pasay City to lead Caritas Manila and government agencies in delivering free medical consultation and medicines and livelihood assistance to some 800 poor parishioners.

Some 500 members of Caritas Savings and Livelihood with Values Education (SALVE) are scheduled to receive micro-finance livelihood assistance from the President.

On the other hand, some 45 elementary, high school, college and vocational student-beneficiaries of the Caritas Scholarship Program will receive scholarship certificates from the President.

Under the joint scholarship program, qualified elementary and high school students will be given subsidies for school supplies, projects and books, on top of a P600-monthly transportation allowance.

Meanwhile, college and vocational scholars will receive projects and book subsidies, plus a P1,000-monthly transportation allowance.

The President will also distribute “champorado” to some 250 malnourished parishioners identified by Caritas Manila, the lead Catholic agency for social services and development in the Archdiocese of Manila.

Caritas directly serves the 13 vicariates of the archdiocese and provides technical assistance to parish social services, according to the Caritas 2007 Annual Report.

Among the agencies the President tapped for the pro-poor project are the Department of Social Welfare and Development (DSWD), Department of Health (DOH), Department of Education (DepEd), Technical Education and Skills Development Authority (TESDA), Philippine Charity Sweepstakes Office (PCSO), and the Philippine Amusement and Gaming Corporation (PAGCOR).

SIGNIFICANCE OF THE EVENT

To provide cheap medicines, improve the health and provide vocational education to the marginalized sectors of society is the top priority of President Gloria Macapagal-Arroyo’s pro-poor program.

The President’s visit to San Jose Nepumuceno Parish Church is part of the government’s initiative in partnership with the Church to personally deliver the basic social services needed by the poor, not only in Metro Manila but throughout the countryside.


PGMA opens newest BPO center in RP tomorrow

President Gloria Macapagal-Arroyo will open on Monday (Jan. 19) the newest business process outsourcing (BPO) center in the Philippines, a development that Malacañang said affirms that the country’s conducive business environment continues to pull in international investors despite the bleak forecast for the global economy this year.

The StarTek International Limited in Makati City complements the 21 BPO facilities operating in North America of the Denver, Colorado-based firm.

StarTek’s 21 facilities provide clients with the highest quality in customer management solutions, including customer care, technical support and back-office support.

StarTek announced its Philippine operation in July last year despite the world financial turmoil.

StarTek president and Chief Executive Officer (CEO) Larry Jones said his company selected the Philippines as the optimal location for his company’s offshore center due to the country’s large talent pool of highly literate, English- speaking, college-educated workers, with great cultural affinity to the United States and reliable customer care skills.

Jones also cited the Philippines’ reliable and redundant communications infrastructure, including dedicated connectivity to the US that ensures high voice quality to US-based customers.

“Cable, telephone and wireless communications companies require high quality, cost-effective support in order to achieve their business objectives in the current competitive marketplace,” Jones said.

“When it really matters, clients look to StarTek to optimize and leverage multiple delivery platforms. By opening a new facility in the Philippines, we expect to provide them with the flexibility of three quality delivery channels for customer service and back-office support,” he added.

Located on a 78,000-square-foot center on Sen. Gil J. Puyat Avenue in Makati City, StarTek’s newest facility will employ approximately 1,100 customer care representatives at full capacity.

“We’re committed to giving our clients a quality experience whether they are using a center in Greeley, Colorado or Makati City, Philippines,” said Jones. “To our clients and their customers, our goal is that the experience be seamless.”

StarTek services include customer care, sales support, complex order processing, accounts receivable management, technical support and other industry-specific processes.

Jones will welcome the President during the launching of the new BPO center.

SIGNIFICANCE

PGMA opens on Monday (Jan. 19) the newest business process outsourcing (BPO) center in Makati City. The new overseas BPO center of the US-based Star-Tek International Limited once again affirms the Philippines’ conducive business environment despite the expected slowdown of the global economy this year. As pointed out by President Gloria Macapagal-Arroyo, heavy investments in human resource development and infrastructure have promoted the Philippines as a great destination for international investors, as well as created millions of high-paying jobs for Filipinos.


Palace says AFP, PNP capable of rescuing ICRC staff

Malacañang stressed today that the Armed Forces of the Philippines (AFP) and the Philippine National Police (PNP) are capable of locating and rescuing the three International Committee of the Red Cross (ICRC) staff reportedly kidnapped in Sulu last Thursday (Jan. 15).

Deputy Presidential Spokesperson Dr. Anthony Golez, in an interview his morning over government-run Radyo ng Bayan, said there is no need, “at least, for now” to call in foreign help on the rescue operations for the ICRC personnel.”

“We have not received requests for foreign help. The AFP and PNP are capable of doing this on their own,” he said.

At the same time, Golez appealed to the residents of Sulu province to "share" with the police and the military much-needed information on the whereabouts of the workers and to notify authorities if they see the ICRC workers.

He added that the situation will be resolved faster with the community’s cooperation, saying that in other countries, crimes are resolved more quickly when citizens cooperate with the authorities.

Reports say it was armed men believed to be Abu Sayyaf bandits who abducted the three ICRC workers.

The military, upon orders of the President, is conducting pursuit operations.

Golez said the Philippine government is assuring the families of Filipino engineer Mary Jean Lacaba, Italian Eugenio Vagni, and Swiss Andreas Notter, that all efforts are being exerted to locate and rescue them.

“The only assurance we can give their families and embassies is that the AFP and PNP are doing everything they can to rescue them safely and return them to their loved ones the soonest possible time," he said.


Inflation slowed down further last December

Press Secretary Jesus G. Dureza said today that the country’s decelerating inflation rate proves the resiliency of the economy due to the strong fundamentals implemented by the Arroyo administration early on in her Presidency.

“Financial analysts from both here and abroad have expressed confidence in our capacity to weather the global financial storm and we are determined to prove them right,” he said.

Socio-Economic Planning Secretary Ralph G. Recto earlier reported to President Gloria Macapagal-Arroyo that the inflation slowed down further in December last year to 8.0 percent from almost a double-digit rate in November.

Recto told the President that this development brought the average inflation for the full year of 2008 to 9.3 percent.

According to Recto, last year’s record was significantly higher than the 2.8 percent registered in 2007 but close to the low-end of Bangko Sentral ng Pilipinas’ (BSP) forecast of 9.0-11.0 percent for 2008.

Core inflation also declined from 7.9 percent in November to 7.3 percent in December. This gives further support to indications that inflationary pressures are beginning to ease, Recto said.

The core inflation of 6.2 percent in 2008 was also higher than that in 2007 which was 2.8 percent.

The decline in inflation was broad-based geographic-wise as inflation rates in November for Areas Outside NCR and NCR slowed down to 4.5 percent and 9.6 percent from 6.8 percent and 11.2 percent, respectively.

Recto, however, said that the BSP-announced target inflation in 2009 of 3.5+1.0 percent is unlikely to be met given the shocks to inflation during the past year. But it would fall within the DBCC forecast of 6.0 to 8.0 percent, he added. Nevertheless, inflation is expected to return to within target rates in 2010.

The NEDA also disclosed that despite the announcement of OPEC production cuts, prices of crude oil fell in the international market due to slackening worldwide demand.

Reports from the International Energy Agency (IEA) estimate that worldwide demand for crude oil declined in 2008, the first time that global demand decreased in 1983. This precipitated price rollbacks of local fuel products in December.

As of mid-December, prices of Dubai oil were lower by $8/bbl than the November average price while local retail prices of unleaded gasoline and diesel were P1/liter less.

Electricity prices also declined during the month. According to a prominent electric company, the use of “banked” gas, i.e., natural gas that was contracted but not consumed for a certain year but made available for future use, reduced generation charges by P0.45/kWh.


DA, private sector agree to import 200,000 MT of corn to stabilize prices

The Department of Agriculture (DA) and the private sector have reached an agreement that will have the National Food Authority (NFA) import initially 200,000 metric tons of corn primarily for the benefit of small industry players to address the temporary tightening of yellow corn primarily supply arising from a number of factors, including climate related events that have altered the local planting season as well as financial difficulties of small and medium players in the livestock industry.

At the same time, DA Secretary Arthur Yap said the Department is now studying ways on how to establish a buffer stock for corn, which will primarily benefit small players that do not have the means to import the commodity during temporary supply tightness and address seasonal volatilities in the production and demand for corn.

Corn imports, Yap explained, have already been liberalized, which means that the government’s involvement in importing the grain should only be limited to meeting the Philippines’ World Trade Organization (WTO) commitment on the minimum access volume (MAV) on corn. With a liberalized product like corn, the private sector takes the lead in addressing any domestic supply gap, he noted.

Yap and other DA officials with 50 private stakeholders in the corn industry agreed to these initial courses of action during a marathon meeting at the DA central office on Wednesday to discuss ways of addressing the temporary shortage and price spike of the grain, which now sells at over P16 per kilo compared to last year’s prevailing rate of just P13 a kilo.

The current situation is expected to improve by February when the imports of corn and feed wheat have arrived.

The DA chief said he has also assured the corn industry that the Department will use all legal means possible to run after possible hoarders and profiteers to flush out corn and corn substitutes in private warehouses.

Among those present during the meeting were representatives from the Corn Board, Philippine Association of Feed Millers, Inc. (PAFMI), the National Federation of Hog Farmers Inc. (NFHFI), United Broilers Association (UBRA), Swift, Fil-Am Foods Inc., National Hog Raisers Association (NAHRA), Philippine Association of Broiler Integrators (PABI), Foremost Farms, Philmaize, and AGAP party-list Rep. Nicanor Briones, who represented the subsector of small livestock stakeholders.

“Corn is already a liberalized commodity, so we can only come in to help address the woes of the industry when the private sector asks for our help, as what has happened now with the temporary tightening of supply, which is expected to last for two or three weeks,” Yap said. “The courses of action we are now undertaking are being done in close consultation with leaders of the corn industry and will do in a manner that does not unnecessarily disadvantage corn farmers.”

Unlike rice where the DA can project demand based on human population in corn estimation of demand can be better done by the private sector as they are in a better position to know what their chicken and populations are.

Yap said the NFA will import 200,000 MT of corn and then sell the grain to small industry players at a price equivalent to its acquisition cost plus a service fee that will just be enough for the food agency to recover its expenses and set a price that will not hurt local corn growers and continue to encourage them to plant more corn.

As for appeals by some groups to allow to import corn at zero tariff, Yap said the government cannot allow this because it will hurt over a million corn farmers who were also subjected to high fertilizer prices and should get good prices for their corn if they are to make money and continue to be motivated to plant. At zero tariff, imported corn will have a landed cost of about P11 a kilo as against the prevailing government support price of P11.50.

Yap called on big players in the corn industry to also utilize their 2008 Minimum Access Volume (MAV) allocations, which he noted remained unused. Moreover, he noted that feed wheat is available in the world market and can be used as a substitute for corn.

Private groups using their MAV quotas enjoy a lower tariff rate of 35% as against the standard corn import tariff of 50%.

Although on a normal year some corn harvest commence in January, plantings this year’s harvests, will come only in February to April as farmers plantings were delayed by about one to two months as a result of changing weather patterns, according to Assistant Secretary Dennis Araullo, the national coordinator of the Ginintuang Masaganang Ani (GMA) Corn Program.

He said that the Department also encouraged the private sector last year to import corn in anticipation of this temporary tightness of the grain at the start of 2009 though the use of their import allocation under the MAV.

Araullo said 40,000 MT of yellow corn imported by the Philippine Association of Feed Millers, Inc. (PAFMI) will arrive in the third week of January, followed by another 60,000 MT from Brazil imported by San Miguel and other private firms.

Araullo said a total of 120,000MT of feedwheat imported by the private sector from Ukraine , is also expected to arrive this month.

Moreover, the DA expects harvests in March and April, which is estimated to reach two million metric tons, to further stabilize corn prices. (DA-PRESS OFFICE)


Cops Undergo Workshop on Decentralizing the Formulation and Implementation of Anti- Criminality Plans

General Santos City (18 January) - The Philippine National Police Chief has focused on another development of responsible leadership at all levels of the chain of command.

He orchestrated the Decentralization of the Formulation and Implementation of Anti- Criminality Plans that will empower PNP leaders within the respective spheres of influence and will be responsible in resource management and output generation.

“Effective leaders, particularly in the field and in the frontlines, are indispensable in the localized implementation of the PNP Transformation Program,” Director General Jesus A. Versoza said, in his instruction.

The vital role that the municipal and city police office stations play as the PNP’s main contact points with the community at large and the business and government sectors can not be overemphasized. Considering the fact that different areas have their respective peculiar peace and order priorities, issues and concerns, the need to localize the formulation and implementation of anti- criminality plans come to the fore.

Police Regional Office 12 through the office of the deputy for operations, operations, community relations and regional investigation conduct a series of workshops on Decentralizing the Formulation and Implementation of Anti- Criminality Plans intended for the chiefs of city and municipal police stations.

Decentralizing the Formulation and Implementation of Anti- Criminality Plans is a turn around from the usual practice of the PNP national headquarters formulating and issuing all anti- crime plans for implementation down to the station level which is deemed to be restrictive to the empowerment and development of responsible leadership in the field.

The PNP higher headquarters will decentralize the formulation and implementation of anti- criminality plans to effectively address identified peace and order priorities and concerns peculiar to an area and engender community participation, engagement and ownership of their security and safety issues.

In the regional headquarters today, Sarangani and General Santos City police chiefs went through a one-day workshop. Same workshop will be scheduled in Koronadal City for South Cotabato and Sultan Kudarat COPs and another in Amas, Kidapawan City for COPs of North Cotabato and Cotabato City.

The workshop prescribed the general guidelines and procedure of the National Headquarters in the formulation of anti- criminality plans at the municipal and city police station level.

The concept of operation starts with the determination of peace and order issues, concerns and requirements of the community at large and the business and government sectors through meetings and public for a; interaction with known leaders of the community; surveys and barangay and field visits. Conceptualization and design of action plans to effectively address the prioritized peace and order issues and concerns follows after the classification and prioritization of issues and concerns.

Anti- criminality formulated by the COPs will be submitted to the city or municipal peace and order council for review and refinement. When adopted by the POC, the plan will be submitted to the Sangguniang Panglungsod/ Bayan for the enactment of an implementing ordinance and appropriating resources.

The formulation and implementation of localized anti- criminality plans decentralized in the city and municipal police stations will make chiefs of offices more responsive and attuned to the prevailing peace and order priorities, issues and concerns peculiar to an area.

This is in consonance to the policy focus of the PNP Chief to develop leaders in all levels, particularly at the frontlines where our unit commanders are expected to exercise leadership both as a role by virtue of position and as a function.

“Chiefs of police offices should be endowed with the ability to discern and recognize problems and dysfunctions and envision corresponding alternatives to address them.” Chief Superintendent Fidel Agullana Cimatu Jr, PRO 12 director said, re-echoing the instructions of the PNP Chief. (PRO12/PIA SarGen)