Aquino vows support for the Navy
President Benigno S. Aquino III on Tuesday expressed confidence in the competence of the Philippine Navy in securing the country’s coastal waters and assured full support in its pursuit of peace and development for the nation.
In a speech at the Navy’s change of command ceremonies at the Naval Station on Roxas Boulevard, Manila, President Aquino noted the unrelenting dedication of the Navy personnel in protecting the country’s territorial waters despite the various challenges hounding the organization.
“Saludo ako sa pagtupad ninyo sa inyong tungkuling protrektahan ang ating teritoryo, nariyan man ang mga balakid tulad ng mga pinaglumaang barko at kakulangan sa ilang mahahalagang kagamitan, asahan po ninyo doble kayod din ang inyong gobyerno upang makahanap pa ng maiinam na paraan upang mapabuti ang mga ito at maipag-patuloy ang integridad ng ating hukbong dagat,” the President said.
“Malaki ang aking kumpiyansa na habang pinalalakas natin ang inyong hanay at isinasaayos ang inyong mga kagamitan, patuloy ninyong mapapangalagaan ang kaligtasan ng ating karagatan,” he added.
Apart from peace and security, the Chief Executive also noted the Navy’s valuable efforts in ensuring social stability through its humanitarian response and disaster relief operations during natural calamities.
One of these successful operations, the President said, was the Task Force “Amianan Recovery” involving at least 170 Sailors and Marines on board LC 551 Navy Logistic Support Vessel that spent 25 days afloat rough sea conditions to bring tons of relief goods, engineering equipment, constructions materials and rescue teams to the coastal towns of Isabela Province which was ravaged by Typhoon Juan last October.
The President recognized the Navy’s constant coordination with foreign counterparts within the Asia Pacific Region leading to a strengthened and a more unified drive in maintaining order within the area.
During the event, President Aquino witnessed the formal assumption of Rear Admiral Alexander Pama as the 32nd Flag Officer in Command.
Rear Admiral Pama succeeded Rear Admiral Danilo Cortez who retired from almost 38 years of military service.
Also in attendance were Defense Secretary Voltaire Gazmin, Armed Forces Chief of Staff General Ricardo David and defense, military and other government officials, among others.
Admiral Pama vowed to prioritize programs that would uplift the morale of Navy personnel and upgrade the capability of the troops.
The new Navy flag officer said uplifting the morale of troops and maintaining discipline among soldiers are important in accomplishing the Navy’s mission.
Right after the turnover ceremonies, President Aquino presided over his first command conference for the year with military officers to discuss the new security plan “Bayanihan.”
The new defense plan focuses on developmental programs designed to curb the roots of rebellion such as poverty. (PCOO)
Aquino confident next batch of peso-denominated global bonds to be favorably accepted
President Benigno S. Aquino III on Tuesday expressed confidence that the next batch of peso-denominated global bonds to be floated by the Department of Finance will be received with the same enthusiasm as the first offering.
Speaking to reporters after a command conference with Armed Forces officials at the Philippine Navy Headquarters in Manila, the President said increased investor confidence in the country would support this government program.
Strengthened investments particularly in the business process outsourcing industry such as the expansion made by global BPO leader Convergys at its San Lazaro complex and the billing of the Philippines as one of the best BPO sites in the world have made the country among the “hottest destinations for all of these investments,” he said.
“So, will I say it (global-peso bonds) will be 13 times oversubscribed, I don’t know. But we think it will be in that general frame…the response will be in the same vein as what happened in the first global offering,” he added.
Last September, the government issued 10-year, peso-denominated global bonds priced at 99.607 percent with a coupon of 4.95 percent and a yield of 5 percent.
The sale, which was participated in by a mix of Asian, American and European investors, netted for the country $1-billion (P44.1 billion) after only 16 hours of its issuance with bids reaching over 13 times the offer.
President Aquino lauded the sale saying, “the success of the peso bond float is a quantifiable and real vote of confidence in the country and the government, particularly our economic managers.” (PCOO)
Solgen says decision on NAIA 3 has no impact on compensation claim
Solicitor General Anselmo Cadiz said on Tuesday that the decision of an international arbitration body on the construction and operation of the NAIA Terminal 3 was based on a procedural ground and had no impact on the merits of claim for compensation by Fraport AG Frankfurt Worldwide Services.
An ad hoc committee of the US-based International Centre for Settlement of Investment Disputes (ICSID) annulled on Dec. 23, 2010 the ICSID Award of August 2007 based on the Committee’s conclusion that the ICSID Tribunal failed to provide enough opportunity for the parties to comment upon the evidentiary record before the DOJ Special Prosecutor in the Anti-Dummy Law criminal proceedings.
Cadiz, however, stressed that the ad hoc committee’s decision did not in any way find the Philippine government liable for compensation to Fraport.
“Rather the decision merely provides Fraport the opportunity to commence a new arbitration and to present its claims again. Likewise, the Philippine government is entitled to present the evidence against Fraport again,” Cadiz said.
Fraport is the primary investor in PIATCO, which procured the concession to construct and operate the NAIA Terminal 3.
“With the annulment decision, the parties are brought to the situation prior to the filing of Fraport’s request for arbitration,” Cadiz explained.
Since 2002, the project to construct and operate the NAIA Terminal 3 has been the subject of a string of civil and criminal investigations due to allegations of violations of Philippine laws by PIATCO and Fraport.
The Senate Blue Ribbon Committee issued a report in December 2002 concluding that the Terminal 3 concession was void because PIATCO violated the Build-Operate-Transfer (BOT) Law and illegally attempted to purchase government approvals through a consultant.
In May 2003, the Supreme Court ruled that the Terminal 3 concessions were null and void ab initio due to PIATCO’s violations of the Constitution, BOT Law, banking laws and public policy.
Subsequently, the Department of Justice, the Office of the Ombudsman and the Anti-Money Laundering Council initiated criminal investigations against PIATCO and Fraport officials on charges that they violated the Anti-Dummy Law and Anti-Graft and Corrupt Practices Act.
In August 2007, an international tribunal in an arbitration before the ICSID junked Fraport’s bid to collect $425 million from the government after the German firm was found to have violated the Anti-Dummy Law in a complaint lodged by the Philippines.
Six months ago, an arbitration before the International Centre of Arbitration of the International Chamber of Commerce (ICC) similarly dismissed PIATCO’s claims due to violations of the Anti-Dummy Law. (PCOO)
Palace extends suspension of GOCC, GFI allowances
Malacañang has extended the suspension of all allowances, bonuses, incentives and other perks of board of directors and trustees of government-owned and -controlled corporations (GOCCs) and government financial institutions (GFIs) until January 31, 2011, according to Executive Order No. 19 signed by President Benigno Aquino III.
The suspension was extended for another month pending the issuance of policies and guidelines by the Task Force on Corporate Compensation (TFCC), which was created by Executive Order No. 7 to review all remuneration granted to board directors or trustees, officers and rank-and-file employees, as well as discretionary funds of GOCCs and GFIs.
The President signed EO No. 19 on December 30, 2010.
EO No. 19 says that “complexity of issues and number of GOCCs and GFIs” merit the “need to further review the grant of all remunerations and discretionary funds of the board members.”
Executive Secretary Paquito N. Ochoa Jr. said the TFCC had requested a one-month extension to allow it to finish its study and finalize its recommendations.
“The additional time they requested is understandable. We know that they want to come up with recommended policies and guidelines that are fair and reasonable to all those concerned, as well as cognizant of the need to balance the need for prudent government spending and the operational flexibility accorded to GOCCs and GFIs to allow them to be effective,” Ochoa said.
The Palace issued EO No. 7 last September in light of the questions surrounding the allowances and benefits given to executives and staff of GOCCs and GFIs, which generally exceed those given to government employees.
Aside from creating the TFCC and requiring GOCCs and GFIs to provide the task force with the information it requires for the review, EO No. 7 also imposes a moratorium on “increases in the rates of salaries and the grant of new increases in the rates of allowances, incentives and other benefits” of GOCC and GFI employees, except salary adjustments provided in EO Nos. 801 and 900, unless specifically authorized by the President.
The TFCC is composed of representatives from the Office of the President, the Departments of Finance and Budget and Management, the Civil Service Commission. (PCOO)
Aquino wants review of disaster reduction measures
President Benigno S. Aquino III on Tuesday ordered the National Disaster Risk Reduction and Management Council (NDRRMC) to conduct a thorough review of the country’s disaster risk reduction measures to minimize loss of lives during calamities especially in communities.
The President issued the directive to NDRRMC head and Defense Secretary Voltaire Gazmin following reports of casualties in Southern Luzon, Bicol region, Eastern Visayas and Mindanao due to floods and landslides last month.
The President, in an ambush interview during the Philippine Navy command turnover rites, noted that in spite of his earlier directive for concerned agencies to evacuate residents in risk areas, there were still casualties.
“Today , I asked the Secretary of National Defense, being the head of the NDRRMC, to find out exactly why there were two people who died in the same place, “ he said referring to St. Bernard in Southern Leyte , where over a thousand residents died when flashfloods hit the community in 2006. The recent heavy downpour also caused floods and landslides in the area and claimed at least two lives.
The NDRRMC said at least 37,124 families or 197,641 people from 242 barangays in 39 towns in 10 provinces had been affected.
Based on NDRRMC's Monday update, the following areas are still affected either by floods or landslides:
* Region IV-A (Calabarzon): Barangays El Vita and Paraca, Narra, Palawan
* Region V (Bicol region): Barangays in Jovellar, Daraga, Camalig, Malinao, Polangui, Libon and Tiwi in Albay and Castilla, Sorsogon
* Region VIII (Eastern Visayas): Brgy 92 in Tacloban City, Leyte; majority of the barangays in Saint Bernard, Southern Leyte; upstream barangays in Oras, Maslog, Canavid, Dolores, Jipapad and Taft, Eastern Samar; Brgy Fatima, Hinabangan, Western Samar; and Northern Samar
* Region X (Northern Mindanao): Flooding incidents occurred in Tubod, Baroy and Lala, Lanao del Norte due to the overflowing of Bulod River due to continuous rains
* Region XI (Davao region): Monkayo, Compostela, New Bataan and Montevista in Compostela Province due to the overflowing of Agusan River
* CARAGA: Surigao City, Surigao del Sur, Agusan del Norte and Agusan del Sur
* ARMM: 13 barangays in Maguindanao Province; 11 in Talayan and two in Datu Anggal Midtimban
Landslides were reported in Region V (Bicol region): Manito, Sto Domingo, Malilipot and Bacacay, all of Albay with 18 barangays affected; and Region VIII (Eastern Visayas): Artemio Mate Avenue, Tacloban City, Leyte and Brgy. San Rafael, Hinabangan, Western Samar.
In Mindanao, the CARAGA experienced minor landslides in Surigao City and Dinagat Islands, Brgy Salvacion, Prosperidad, Agusan del Sur, and three road sections in Agusan del Sur are still impassable to all types of vehicles due to flooding and landslide: Bah-Bah-Talacogon Road, Awa-Aspetia and Butuan Lapaz Road.
In Region XI (Davao region), two footbridges in Brgy Andap, New Bataan, Compostela Valley were washed out while the National Highway along Barangays Cabinuangan and San Roque, New Bataan, Compostela Valley is scoured.
Of the 10 fatalities, five were from Southern Leyte province in Eastern Visayas. (PCOO)
Aquino eyeing PNCC proceeds to cushion impact of toll hike
The government is eyeing the proceeds from the sale of Philippine National Construction Corporation (PNCC) interests in the South Luzon Expressway (SLEx) to cushion the impact of the toll rate increases.
In an ambush interview after the command conference at the Philippine Navy on Tuesday, President Benigno S. Aquino III said they have already studied its pros and cons before the Toll Regulatory Board (TRB) approved the 250 percent toll rate increase.
“Although it has yet to be finalized, the instructions are very clear. We will mitigate as much as possible the increases in the rates for these toll rates,” the President said.
The state-owned PNCC has 20-percent and 40-percent stakes in the South Luzon Tollways Corp. and Manila Toll Expressway Systems Inc. (Mates), respectively, valued at a combined P3.6 billion.
This is close to the P3.9 billion in unpaid concession fees from 1995 to 2005 that the Department of Finance (DOF) had ordered the PNCC to remit to state coffers to help plug a record budget deficit this year.
Known bidders for the SLEx shares include infrastructure giant Metro Pacific Investments Corp. and conglomerate San Miguel Corp.
The President said that aside from the PNCC proceeds, he is also considering to ask Congress for a possible appropriation.
On the other hand, the President assured that before the end of the month, he will convene the Legislative-Executive Development Advisory Council to tackle some issues particularly the impact of toll and fare hikes. (PCOO)
