Transparent Economics

The Surplus Fetish

Both the economics and the politics of current fiscal policy seem flawed.

Yesterday the Department of Finance trumpeted the news that the government in April posted the largest fiscal surplus in 25 years. The PDI reports today that

The Aquino administration posted a budget surplus of P26.26 billion in April… more than 10 times the P2.6-billion surplus a year ago, Finance Secretary Cesar V. Purisima announced Monday.

The fiscal performance for the month of April brought the record for the first four months to a surplus of P61 million, documents from the Bureau of the Treasury showed.

Good news, right? To use a popular phrase, the government seems to be “living within its means.” This is certainly the impression DoF wants to create. After last year’s poor fiscal performance led to a 6.3% of GDP blowout, Finance officials seem fixated on reining in the budget once again this year. So this should come as a bit of a respite from the constant talk about deficits for them.

Unfortunately when one digs deeper into the figures, a very unappealing picture emerges. Let us start off with the January to March figures for 2011. According to the department’s official website, expenditures for the first quarter declined by 12.7% compared to the same period in 2010 (Php349 B in 2011 v Php400 B in 2010).

You might argue that this Php 50 billion “underspend” was due to the elections last year and so you might be excused for thinking that costs would recede to normal levels in a non-election year. So what were the programmed expenditures for the first quarter of 2011? The answer is Php431 billion. That means that the real underspend amounts to Php82 billion!

Now why should that be shocking, you might ask. Well, consider it from the point of view of program recipients not receiving their promised benefits or public infrastructure projects that did not get funded in the first quarter. Budget experts will tell you that the non-rainy months in the first semester are critical for infrastructure projects. This is especially true this year with the early rains coming in May.

If a government is unable to spend its budget in a timely manner, it speaks unfavorably of its abilities in fiscal management. This government credited itself with getting its first budget approved by Congress early prior to the start of the year. It had plenty of room to get its ducks lined up to see spending out the door. One would expect a new administration to be quite anxious to see this happen to differentiate itself from the previous one.

Unfortunately, that didn’t happen.

From reform budget to deformed budget

The government got itself “back in the black” by contracting expenditures (experiencing “strong yet below-target revenues”). The government under-spent 18.8% of its programmed budget and incurred a much smaller deficit in the first quarter amounting to a mere Php26.2 billion down from the expected Php112 billion (note: that is why it’s January to April surplus was 61 million after posting a surplus of 26.26 billion during the fourth month).

Was this to paint a rosy picture for:

  • the bond market?
  • credit rating agencies?
  • the public at large?
  • all of the above?

One wonders at this point, what has happened to the “reform” budget? Has it turned into the “de-formed” budget? This lies at the heart of its “credible commitment” problem.

Indeed for the so-called economic managers in charge of steering the course not only of the budget but the economy at large, does this approach seem rational? Or have they been overtaken by their passions, influenced by the fetish for surpluses?

This not only makes for bad policy, it consists of poor politics as well. Not only will the government not contribute to the economic and social infrastructure needed for a thriving economy, if it seeks to pass new revenue measures next year, it will be undermined by the false impression created that these new measures are not urgently needed.

The public once accustomed to hearing that the government is in surplus will find it hard to accept the need for new taxes. Indeed, it wouldn’t make sense to the ordinary man on the street reading these news reports.

Once again, the story the government intends to weave will somehow get it entangled down the track because it does not portray the true picture. This is not what you might call “strategic communication”. If it wants the public to become apprised of the real situation concerning the structural deficit in our budget, it needs to allow spending to commence as it should.

By accepting poor policy and misreading the politics, the benign one’s fetish with surpluses could prove detrimental to the country in the end.

A double edged sword

A news bulletin was released earlier this week with very little fanfare on the latest round of results for the Family Income and Expenditure Survey (or FIES). It showed that between 2006 and 2009, there was an improvement in the overall incomes, savings and expenditures of families on average and a reduction of income disparities between the wealthiest and poorest of households.

Prof Winnie Monsod of the UP School of Economics attributes this to a sustained period of economic growth peaking at 7% in 2007, the longest and highest rate over the past 30 years. Augusto Santos of NEDA on the other hand credits the conditional cash transfers program initiated by the previous government in 2008 as one of the policy interventions that could have led to this outcome.

All this would have served the Arroyo regime well had it been reported prior to or during the last presidential election, when it was seeking a mandate for its anointed successor. Its economic credentials were tarnished by reports of poverty incidence worsening between 2003 and 2006 contrary to what you would expect following a period of sustained economic expansion under her stewardship.

Of course one could argue that the increase in the VAT rate in 2005 from 10-12% which while regressive was also deemed necessary to avert a fiscal crisis caused all the grief. Government planners then quickly realized that the fiscal space they created had to be used to counter the harsh impact of higher taxes on the most vulnerable. This is what led to many of the socially targeted interventions including the Conditional Cash Transfers program (or CCT) and the infrastructure plan that followed. It now appears that they got it right although hardly anyone will trumpet these successes now.

All this points to the problems associated with time lags in measuring and reporting social and economic indicators for the purpose of crafting public policy. Data gathering always comes at a cost, but without frequent and timely reporting, policymakers are practically flying blind not knowing what impact if any their programs are having on the ground. It may not suit PNoy’s government to acknowledge the policy successes of its predecessor and arch-nemesis in the house, but it can also serve its purpose given that it is pushing for the expansion of the CCT and infrastructure through the PPPs.

According to Prof Monsod, the Gini coefficient for 2009 which reflects income inequality is “the lowest it’s ever been as far as I can remember.” If that is the case then it could account for improvements in the mood of the people as reported by some public surveys (the science of happiness suggests there is a causal link between income equality and happiness). It would also point to the importance of maintaining the momentum for growth through investments in public infrastructure as well as social policies that reduce income disparity like the CCT.

Agrarian reform which has a spotty record globally was an attempt to correct poverty and social inequality through asset distribution. That has proved difficult to implement in the Philippines. Now the CCT and other social programs like improving education and health are attempting to do it through income and human capital distribution.

If the policy settings of the previous government were effective in bringing about an improvement in economic and social well-being, then it would be a sign of maturity for all parties to come together now and work towards expanding them in a responsible manner. Enough with the bickering: it is time for a development consensus to be formed about the way forward.

Forum cites development tasks

Forum cites development tasks
BusinessWorld Online

ASIA is now increasingly the focus of growth in the world, but individual economies like the Philippines and similarly less developed markets have to identify sectors that need support in order to boost their competitiveness, experts said at a forum yesterday in the Asian Institute of Management in Makati City.

In her presentation, Suzanne Rosselet, deputy director of the International Institute for Management Development World Competitiveness Center, noted that Asia’s population will hit 5.26 billion by 2050, compared to Africa’s 1.77 billion, the European Union’s 628 million and the United States’ 447 million.

“This pretty much sums up where the long-term growth will be. [It] will be in Asia,” she said.

In the Philippines, she said, the government needs to focus on supporting small- and medium-scale enterprises (SMEs) and services, which have been an engine of growth.

She added that “there has to be job creation for young people moving into the workforce.”

David Jay Green, a fellow of the Asian Development Bank-Asian Institute of Management Knowledge Hub for Trade and Investment, noted that within the Association of Southeast Asian Nations (ASEAN) are pockets of less developed clusters like that of the otherwise resource-rich sub-region grouped into the Brunei Darussalam-Indonesia-Malaysia-Philippines-East ASEAN Growth Area (BIMP-EAGA).

He noted this group, which was formally established in 1984, was formed precisely to enable the less developed component areas to pool resources and efforts to help them catch up with more developed urban areas in the same countries. The Philippine components of BIMP-EAGA are Palawan and Mindanao.

Experts have prescribed increasing trade and other economic ties within Asia, as demand recovery in the US and Europe remains sluggish.

But Mr. Green stressed the need to further streamline trade processes within BIMP-EAGA if it is to live up to expectations as a driver of growth in Southeast Asia.

This, in turn, requires more efficient government operations, better infrastructure and “connectivity policies” — all of which will facilitate the transport of goods and trade in services.

“It’s a whole series of things that has to be done to encourage the business environment, trading environment and the ability of people to invest in their own country,” Mr. Green said.

Sought for comment, Augusto B. Santos, deputy director general of the National Economic and Development Authority, said the government has been finding ways to provide cheap loans to SMEs, help localities focus on a few products and services they can excel in, and is poised to embark on an infrastructure buildup under public-private partnerships in order to lay the groundwork for sustained, faster growth. — JJAC

The Quest for an Elusive Development Framework

After unveiling his strategy for unblocking investments in public infrastructure, the policy statement of PNoy was drawing flak from all sides. The statement concerned his proposed method for mitigating regulatory risk which was to compensate private investors for any losses caused by legal or congressional action preventing them from charging fees in accordance with their agreements with the government.

This was the statement of Rep Edcel Lagman leader of the opposition in the house:

Government contracts are not inordinately sacrosanct so as to be immune from judicial review by the Supreme Court and police power legislation by the Congress. It is beyond presidential prerogative to shield contracts from final court judgments and valid legislative enactments.

Recalling perhaps the power purchase adjustments that gave power generators the right to charge unmet demand to power users after the Asian Financial Crisis, party-list member Rafael Mariano issued this statement:

It’s hogwash … just a tweak [of the] past administration’s marketing sell-out strategy at the expense of the Filipino people.

The problem with the president’s policy statement goes even beyond these issues alone. Most of these projects have a life of between 15 to 30 years. His administration will only last for the next five and a half. Given the amount of time devoted to the pre-feasibility phase all the way to construction, most of these might still be in the pipeline when PNoy steps down. So even assuming that it is able to defy the two other branches of government, how can it guarantee protection for private investors for the remainder of these projects’ lives?

Second, since the public projects being listed for private participation is based on the principle of user pay per use, they are entirely dependent on the ability to charge an appropriate fee. The fact that many projects such as the Metro Light Rail Transit and Southern Expressway have not been able to do so puts into question the business case that justifies the investment in the first place. In other words, the market for such goods cannot clear at the prices desired by the buyers and sellers.

This puts into question the project feasibility assessment process. All sorts of regulatory and administrative risk factors have to be priced into the project cost. If the government cannot justify them in this manner then it should not put it up for investment to begin with.

On the other hand, if the government sees the need to subsidize these projects in the long run based on some notion of public benefit, then it ought to build projections of its future obligations in forward multi-year budget estimates so that they can be subjected to congressional scrutiny. Such transparency is still missing.

Third, the 10 or so projects in roads, rail, and airports being characterized as “shovel ready” to be bid out next year are in metropolitan centers. The jobs to be generated during their construction are going to be centered there. If the PPP’s are meant to be the engine for development, then it appears to be development highly skewed in favor of city residents.

The problem of joblessness in the countryside won’t be addressed, not in the immediate future at least, not with the initial list of projects. If ever, it will lead to greater migration flows from the rural places to the cities. Somehow, what gets lost in all of this is a development framework wherein the needs of public investment are prioritized based on some holistic model of sustainability.

Despite all this, investor appetite seems to be there. One cannot discount the legitimacy issue that hounded the Arroyo regime which has now been effectively dealt with by a smooth transfer of power. PNoy is right to strike when the iron is hot. Conditions in the global village do support his thrust in leveraging private investment for public use.

Perhaps instead of searching for some quixotic fix to deal with all the bottle necks to our development, we need to take a long hard look at the system as a whole. I am not advocating a shift to a parliamentary system, although that would deal with the problem of congressional oversight since the executive and legislative branches would speak as one. What I am advocating is a roots to branch rethink of our assessment process.

A framework is still lacking in the PPP program. It needs to be more clearly articulated to the public. Beyond that, a strategy for bringing more equitable public and private investments in areas where they are sorely needed, such as in innovation, regional and rural development and natural and environmental conservation, remains elusive.

Aquino to protect big infra investors

Aquino to protect big infra investors
Philippine Daily Inquirer

President Benigno Aquino III Thursday said that his administration would compensate investors prevented by the courts or Congress from collecting contractually agreed toll or user fees.

“If for some reason, a court decision threatens the adjustment, the government will compensate the private concessionaire for the difference between what the tariff should have been under the formula and the tariff which it is actually able to collect,” the President said at the opening of the public-private partnership conference in Pasay City.

Before some 500 foreign fund managers at the Marriott Hotel, Mr. Aquino unveiled this landmark policy that his economic team hoped would assuage overseas businessmen’s fears about their ability to recoup investments.

“If we are truly interested in a square deal for all, then what we shake hands on, should be what endures,” he said. “To this end, what we will be doing in so far as solicited projects are concerned is to minimize your risk in a meaningful and fair manner.”

Mr. Aquino said the government would provide investors with protection against so-called “regulatory risk” or the risk of being unable to recoup one’s investments due to changes in the local regulatory environment—a common complaint among foreign businesses operating in the Philippines.

“Infrastructure can only be paid for from user fees or taxes,” he said.

“When government commits to allow investors to earn their return from user fees, it is important that that commitment be reliable and enforceable. And if private investors are impeded from collecting contractually agreed fees—by regulators, courts, or the legislature—then our government will use its own resources to ensure that they are kept whole.”

Seeking to lure back foreign investors, many of whom have been personally burned by soured investments or deterred by tales about the perils of doing business in the country, he said: “You cannot deal with a government where the right hand is offering a handshake while the left hand is trying to pick your pocket.”

SLEx example

Mr. Aquino gave the example of a private firm that agreed with the government on a specific formula for toll increases for the public’s use of a road it rehabilitated.

Malaysian-backed South Luzon Tollways Corp. (SLTC), which holds the 30-year concession for the South Luzon Expressway (SLEx), was earlier stopped by the Supreme Court from implementing a new toll rate.

The new rate, which is 250-percent higher than the existing toll, is meant to help the company recover the minimum of P12 billion it spent to rehabilitate and modernize the road.

The additional funds will also allow the company to maintain world-class services at SLEx.

The delay caused by the restraining order, which has since then been lifted, has cost SLTC up to P1 billion in foregone revenues.

Market risk not covered

“Commercial or market risk, which you are in the business of determining, will be borne by investors, as it should be,” the President said.

Mr. Aquino said the guarantee he was giving was different from the “politically difficult guarantees” that past administrations had given.

He cited the power supply contracts that committed government to buying electricity “regardless of what the actual demand was”—known as “take-or-pay.”

Take-or-pay means that a company will still be able to collect payments even for energy it is not able to deliver due to lower-than-expected-demand from consumers.

Honest, transparent

Mr. Aquino said the contracting of projects under the public-private partnerships would be “clear, honest and transparent.”

He unveiled 10 rail, road and airport projects to be formally put out to tender at the end of next year and worth a combined $3.4 billion.

Break from past

In an interview with the Inquirer, Finance Secretary Cesar Purisima said the new regulatory risk guarantee marked a crucial break from policies of past administrations which guaranteed investors’ “commercial risk.”

“Back then, the government committed to pay a fixed amount whether the investors could sell [their product or service] or not,” he said.

“That is how we got saddled with expensive power rates from these IPPs (independent power producers, contracted at the height of the 1990s power shortage),” he added.

“Today, we will no longer guarantee commercial risk, but instead cover only regulatory risk for solicited projects.”

Funding pool

The finance secretary said the scheme would involve the creation of a funding pool, initially put up by government financial institutions, that will be, in turn, backed by guarantees from multilateral lending institutions like the World Bank and the Asian Development Bank.

“If the investors cannot collect their agreed return on investment—for example, because of a court-issued injunction on a toll hike—the government will pay them the difference of the existing rate and the rate that they should be collecting,” Purisima said.

He said this “regulatory” risk guarantee sought to preserve the sanctity of the contract.

This also ensures that there are no sudden changes in government policies that may hinder a company from recovering its investment.

Alistair Macdonald, head of the European Union delegation in the Philippines, said he welcomed the government’s pledges of fair play and transparency.

“I think it’s something that’s extremely important that I was delighted to hear. The President … addressed precisely this question, which will also be very encouraging for the business community,” Macdonald said.

Protest rally

Activists staged a rally in front of Marriott Hotel at the launching of the public-private partnership (PPP) program.

Senior Insp. Prudencio Lumapad said some 40 members of militant groups led by Bayan Muna held the demonstration at around 10:30 a.m.

Bagong Alyansang Makabayan (Bayan) secretary general Renato Reyes Jr. said policemen took away the streamer carrying the message “Philippines not for sale!”

Critics said the PPP program would bloat the country’s debt and speed up corporations taking over roles played by the government at the expense of public interest. With reports from Tina G. Santos and Agence France-Presse

ODA use just slightly better in first half

ODA use just slightly better in first half
BusinessWorld Online
THE GOVERNMENT slightly improved its use of official development assistance (ODA) in the first half, compared to the same period last year, the National Economic and Development Authority (NEDA) said in a press release yesterday.

Citing details of its latest ODA loan performance report, NEDA noted that ODA commitments totaled $8.8 billion as of June, about $800 million more than the amount pledged in the same period last year.

The government availed of $3.899 billion out of the $4.764 billion scheduled for use in the first half, NEDA said.

That, in turn, brought availment rate, or actual use of loan against the total programmed for a specific period, to a slightly better 81.84% from 81% last year.

Of the amount availed, the government disbursed about $963.74 million in the first half, or 16.59% more than the $826.59 million disbursed in the same period last year.

Disbursement rate (actual versus target disbursements) slightly increased to 86.68% in the first semester from 86.37% in the same period last year.

Moreover, disbursement ratio, or the proportion of actual disbursement against the total loan balance, rose to 20% from 17%.

Three program loans worth a total of $452.8 million accounted for bulk of the disbursements in the first semester, namely:

  • the French Development Agency’s “Local Government Financing and Budget Reform Program-Subprogram 2,” which aims to strengthen financing of local governments to enhance delivery of environmental, health and social services;
  • the Japan International Cooperation Agency’s (JICA) “Emergency Budget Support Loan,” designed to support economic measures deemed needed to expand domestic demand amid the economic crisis; and
  • JICA’s “Development Policy Support Program III,” which aims to help improve the country’s attractiveness to foreign investments through reforms in tax refund, customs services and procedures.

ODA consists of either loans or grants, provided for purposes of capital or technical assistance to the government. Loans are earmarked either for specific projects, designed to achieve particular objectives given specific resources and implementation time tables, or for programs in the form of budget support for regular activities of the government.

Strong growth would cut Philippine deficit -fin min

(Reuters) – The Philippines’ budget deficit could fall to 2.5 percent of GDP in 2011 if economic growth hits 7 percent, Finance Secretary Cesar Purisima said on Wednesday.

“Assuming we attain the 7 percent target… the deficit will be much lower than what was expected,” Purisima told lawmakers.

The government’s goal is to lower the deficit to 3.2 percent of GDP, or 290 billion pesos, in 2011 from an estimated 3.9 percent this year.

It has forecast growth of 7-8 percent next year.

1st State of the Nation Address of His Excellency Benigno S. Aquino III

2010 SONA President Benigno S. Aquino III

State of the Nation Address

of His Excellency

Benigno S. Aquino III

President of the Philippines

to the Congress of the Philippines

Session Hall of the House of Representatives

July 26, 2010

[Batasan Pambansa Complex, Quezon City]

PANIMULA

Speaker Feliciano Belmonte; Senate President Juan Ponce Enrile; Vice President Jejomar Binay; Chief Justice Renato Corona; Former Presidents Fidel Valdez Ramos and Joseph Ejercito Estrada; members of the House of Representatives and the Senate; distinguished members of the diplomatic corps; my fellow workers in government;

Mga minamahal kong kababayan:

Sa bawat sandali po ng pamamahala ay nahaharap tayo sa isang sangandaan.

Sa isang banda po ay ang pagpili para sa ikabubuti ng taumbayan. Ang pagtanaw sa interes ng nakakarami; ang pagkapit sa prinsipyo; at ang pagiging tapat sa sinumpaan nating tungkulin bilang lingkod-bayan. Ito po ang tuwid na daan.

Sa kabilang banda ay ang pag-una sa pansariling interes. Ang pagpapaalipin sa pulitikal na konsiderasyon, at pagsasakripisyo ng kapakanan ng taumbayan. Ito po ang baluktot na daan.

Matagal pong naligaw ang pamahalaan sa daang baluktot. Araw-araw po, lalong lumilinaw sa akin ang lawak ng problemang ating namana. Damang-dama ko ang bigat ng aking responsibilidad.

Sa unang tatlong linggo ng aming panunungkulan, marami po kaming natuklasan. Nais ko pong ipahayag sa inyo ang iilan lamang sa mga namana nating suliranin at ang ginagawa naming hakbang para lutasin ang mga ito.

Sulyap lamang po ito; hindi pa ito ang lahat ng problemang haharapin natin. Inilihim at sadyang iniligaw ang sambayanan sa totoong kalagayan ng ating bansa.

PROBLEMA SA BUDGET

Sa unang anim na buwan ng taon, mas malaki ang ginastos ng gobyerno kaysa sa pumasok na kita. Lalong lumaki ang deficit natin, na umakyat na sa 196.7 billion pesos. Sa target na kuleksyon, kinapos tayo ng 23.8 billion pesos; ang tinataya namang gastos, nalagpasan natin ng 45.1 billion pesos.

Ang budget po sa 2010 ay 1.54 trillion pesos.

Nasa isandaang bilyong piso o anim at kalahating porsyento na lang ng kabuuan ang malaya nating magagamit para sa nalalabing anim na buwan ng taong ito.

Halos isang porsyento na lang po ng kabuuang budget ang natitira para sa bawat buwan.

Saan naman po dinala ang pera?

CALAMITY FUND

Naglaan ng dalawang bilyong piso na Calamity Fund bilang paghahanda para sa mga kalamidad na hindi pa nangyayari. Napakaliit na nga po ng pondong ito, ngunit kapapasok pa lang natin sa panahon ng baha at bagyo, 1.4 billion pesos o sitenta porsyento na ang nagastos.

Sa kabuuan ng 108 million pesos para sa lalawigan ng Pampanga, 105 million pesos nito ay napunta sa iisang distrito lamang. Samantala, ang lalawigan ng Pangasinan na sinalanta ng Pepeng ay nakatanggap ng limang milyong piso lamang para sa pinsalang idinulot ng bagyong Cosme, na nangyari noong 2008 pa.

Ibinigay po ang pondo ng Pampanga sa buwan ng eleksyon, pitong buwan pagkatapos ng Ondoy at Pepeng. Paano kung bumagyo bukas? Inubos na ang pondo nito para sa bagyong nangyari noong isang taon pa. Pagbabayaran ng kinabukasan ang kasakiman ng nakaraan.

MWSS

Ganyan din po ang nangyari sa pondo ng MWSS. Kamakailan lamang, pumipila ang mga tao para lang makakuha ng tubig. Sa kabila nito, minabuti pa ng liderato ng MWSS na magbigay ng gantimpala sa sarili kahit hindi pa nababayaran ang pensyon ng mga retiradong empleyado.

Noong 2009, ang buong payroll ng MWSS ay 51.4 million pesos. Pero hindi lang naman po ito ang sahod nila; may mga additional allowances at benefits pa sila na aabot sa 160.1 million pesos. Sa madaling sabi, nakatanggap sila ng 211.5 million pesos noong nakaraang taon. Beinte-kuwatro porsyento lang nito ang normal na sahod, at sitenta’y sais porsyento ang dagdag.
Ang karaniwang manggagawa hanggang 13th month pay plus cash gift lang ang nakukuha. Sa MWSS, aabot sa katumbas ng mahigit sa tatlumpung buwan ang sahod kasama na ang lahat ng mga bonuses at allowances na nakuha nila.

Mas matindi po ang natuklasan natin sa pasahod ng kanilang Board of Trustees. Tingnan po natin ang mga allowances na tinatanggap nila:

Umupo ka lang sa Board of Trustees at Board Committee meeting, katorse mil na. Aabot ng nobenta’y otso mil ito kada buwan. May grocery incentive pa sila na otsenta mil kada taon.

Hindi lang iyon: may mid-year bonus, productivity bonus, anniversary bonus, year-end bonus, at Financial Assistance. May Christmas bonus na, may Additional Christmas Package pa. Kada isa sa mga ito, nobenta’y otso mil.

Sa suma total po, aabot ang lahat ng dalawa’t kalahating milyong piso kada taon sa bawat miyembro ng Board maliban sa pakotse, technical assistance, at pautang. Uulitin ko po. Lahat ng ito ay ibinibigay nila sa kanilang mga sarili habang hindi pa nababayaran ang mga pensyon ng kanilang mga retirees.

Pati po ang La Mesa Watershed ay hindi nila pinatawad. Para magkaroon ng tamang supply ng tubig, kailangang alagaan ang mga watershed. Sa watershed, puno ang kailangan. Pati po iyon na dapat puno ang nakatayo, tinayuan nila ng bahay para sa matataas na opisyal ng MWSS.

Hindi naman sila agad maaalis sa puwesto dahil kabilang sila sa mga Midnight Appointees ni dating Pangulong Arroyo. Iniimbestigahan na natin ang lahat nang ito. Kung mayroon pa silang kahit kaunting hiya na natitira – sana kusa na lang silang magbitiw sa puwesto.

ROAD USERS’ FUND

Pag-usapan naman po natin ang pondo para sa imprastruktura. Tumukoy ang DPWH ng dalawandaan apatnapu’t anim na priority safety projects na popondohan ng Motor Vehicle Users Charge. Mangangailangan po ito ng budget na 425 million pesos.
Ang pinondohan po, dalawampu’t walong proyekto lang. Kinalimutan po ang dalawandaan at labing walong proyekto at pinalitan ng pitumpung proyekto na wala naman sa plano. Ang hininging 425 million pesos, naging 480 million pesos pa, lumaki lalo dahil sa mga proyektong sa piling-piling mga benepisyaryo lang napunta.

Mga proyekto po itong walang saysay, hindi pinag-aralan at hindi pinaghandaan, kaya parang kabuteng sumusulpot.
Tapos na po ang panahon para dito. Sa administrasyon po natin, walang kota-kota, walang tongpats, ang pera ng taumbayan ay gagastusin para sa taumbayan lamang.

NEGOTIATED CONTRACTS

Meron pa po tayong natuklasan. Limang araw bago matapos ang termino ng nakaraang administrasyon, nagpautos silang maglabas ng 3.5 billion pesos para sa rehabilitasyon ng mga nasalanta nina Ondoy at Pepeng.

Walumpu’t anim na proyekto ang paglalaanan dapat nito na hindi na sana idadaan sa public bidding. Labingsiyam sa mga ito na nagkakahalaga ng 981 million pesos ang muntik nang makalusot. Hindi pa nailalabas ang Special Allotment Release Order ay pirmado na ang mga kontrata.

Buti na lang po ay natuklasan at pinigilan ito ni Secretary Rogelio Singson ng DPWH. Ngayon po ay dadaan na ang kabuuan ng 3.5 billion pesos sa tapat na bidding, at magagamit na ang pondo na ito sa pagbibigay ng lingap sa mga nawalan ng tahanan dahil kina Ondoy at Pepeng.

NAPOCOR

Pag-usapan naman natin ang nangyari sa NAPOCOR. Noong 2001 hanggang 2004, pinilit ng gobyerno ang NAPOCOR na magbenta ng kuryente nang palugi para hindi tumaas ang presyo. Tila ang dahilan: pinaghahandaan na nila ang eleksyon.
Dahil dito, noong 2004, sumagad ang pagkakabaon sa utang ng NAPOCOR. Napilitan ang pambansang gobyerno na sagutin ang dalawandaang bilyong pisong utang nito.

Ang inakala ng taumbayan na natipid nila sa kuryente ay binabayaran din natin mula sa kaban ng bayan. May gastos na tayo sa kuryente, binabayaran pa natin ang dagdag na pagkakautang ng gobyerno.

Kung naging matino ang pag-utang, sana’y nadagdagan ang ating kasiguruhan sa supply ng kuryente. Pero ang desisyon ay ibinatay sa maling pulitika, at hindi sa pangangailangan ng taumbayan. Ang taumbayan, matapos pinagsakripisyo ay lalo pang pinahirapan.

MRT

Ganito rin po ang nangyari sa MRT. Sinubukan na namang bilhin ang ating pagmamahal. Pinilit ang operator na panatilihing mababa ang pamasahe.

Hindi tuloy nagampanan ang garantiyang ibinigay sa operator na mababawi nila ang kanilang puhunan. Dahil dito, inutusan ang Landbank at Development Bank of the Philippines na bilhin ang MRT.

Ang pera ng taumbayan, ipinagpalit sa isang naluluging operasyon.

NFA

Dumako naman po tayo sa pondo ng NFA.

Noong 2004: 117,000 metric tons ang pagkukulang ng supply ng Pilipinas. Ang binili nila, 900,000 metric tons. Kahit ulitin mo pa ng mahigit pitong beses ang pagkukulang, sobra pa rin ang binili nila.

Noong 2007: 589,000 metric tons ang pagkukulang ng supply sa Pilipinas. Ang binili nila, 1.827 million metric tons. Kahit ulitin mo pa ng mahigit tatlong beses ang pagkukulang, sobra na naman ang binili nila.

Ang masakit nito, dahil sobra-sobra ang binibili nila taun-taon, nabubulok lang pala sa mga kamalig ang bigas, kagaya ng nangyari noong 2008.

Hindi po ba krimen ito, na hinahayaan nilang mabulok ang bigas, sa kabila ng apat na milyong Pilipinong hindi kumakain ng tatlong beses sa isang araw?

Ang resulta nito, umabot na sa 171.6 billion pesos ang utang ng NFA noong Mayo ng taong ito.

Ang tinapon na ito, halos puwede na sanang pondohan ang mga sumusunod:

Ang budget ng buong Hudikatura, na 12.7 billion pesos sa taong ito.

Ang Conditional Cash Transfers para sa susunod na taon, na nagkakahalaga ng 29.6 billion pesos.

Ang lahat ng classroom na kailangan ng ating bansa, na nagkakahalaga ng 130 billion pesos.

Kasuklam-suklam ang kalakarang ito. Pera na, naging bato pa.

ZERO BUDGET

Narinig po ninyo kung paano nilustay ang kaban ng bayan. Ang malinaw po sa ngayon: ang anumang pagbabago ay magmumula sa pagsiguro natin na magwawakas na ang pagiging maluho at pagwawaldas.

Kaya nga po mula ngayon: ititigil na natin ang paglulustay sa salapi ng bayan. Tatanggalin natin ang mga proyektong mali.
Ito po ang punto ng tinatawag nating zero-based approach sa ating budget. Ang naging kalakaran po, taun-taon ay inuulit lamang ang budget na puno ng tagas. Dadagdagan lang nang konti, puwede na.

Sa susunod na buwan ay maghahain tayo ng budget na kumikilala nang tama sa mga problema, at magtutuon din ng pansin sa tamang solusyon.

IMMEDIATE STEPS

TAX EVASION

Ilan lang ito sa mga natuklasan nating problema. Heto naman po ang ilang halimbawa ng mga hakbang na ginagawa natin.
Nandiyan po ang kaso ng isang may-ari ng sanglaan. Bumili siya ng sasakyang tinatayang nasa dalawampu’t anim na milyong piso ang halaga.

Kung kaya mong bumili ng Lamborghini, bakit hindi mo kayang magbayad ng buwis?

Nasampahan na po ito ng kaso. Sa pangunguna nina Finance Secretary Cesar Purisima, Justice Secretary Leila de Lima, BIR Commissioner Kim Henares at Customs Commissioner Lito Alvarez, bawat linggo po ay may bago tayong kasong isinasampa kontra sa mga smuggler at sa mga hindi nagbabayad ng tamang buwis.

EXTRALEGAL KILLINGS

Natukoy na rin po ang salarin sa mga kaso nina Francisco Baldomero, Jose Daguio at Miguel Belen, tatlo sa anim na insidente ng extralegal killings mula nang umupo tayo.

Singkuwenta porsyento po ng mga insidente ng extralegal killings ang patungo na sa kanilang resolusyon.

Ang natitira pong kalahati ay hindi natin tatantanan ang pag-usig hanggang makamit ang katarungan.

TRUTH COMMISSION

Pananagutin natin ang mga mamamatay-tao. Pananagutin din natin ang mga corrupt sa gobyerno.

Nagsimula nang mabuo ang ating Truth Commission, sa pangunguna ni dating Chief Justice Hilario Davide. Hahanapin natin ang katotohanan sa mga nangyari diumanong katiwalian noong nakaraang siyam na taon.

Sa loob ng linggong ito, pipirmahan ko ang kauna-unahang Executive Order na nagtatalaga sa pagbuo nitong Truth Commission.

PUBLIC-PRIVATE PARTNERSHIPS

Kung ang sagot sa kawalan ng katarungan ay pananagutan, ang sagot naman sa kakulangan natin sa pondo ay mga makabago at malikhaing paraan para tugunan ang mga pagkatagal-tagal nang problema.

Napakarami po ng ating pangangailangan: mula sa edukasyon, imprastruktura, pangkalusugan, pangangailangan ng militar at kapulisan, at marami pang iba. Hindi kakasya ang pondo para mapunan ang lahat ng ito.

Kahit gaano po kalaki ang kakulangan para mapunan ang mga listahan ng ating pangangailangan, ganado pa rin ako dahil marami nang nagpakita ng panibagong interes at kumpyansa sa Pilipinas.

Ito ang magiging solusyon: mga Public-Private Partnerships. Kahit wala pa pong pirmahang nangyayari dito, masasabi kong maganda ang magiging bunga ng maraming usapin ukol dito.

May mga nagpakita na po ng interes, gustong magtayo ng expressway na mula Maynila, tatahak ng Bulacan, Nueva Ecija, Nueva Vizcaya, hanggang sa dulo ng Cagayan Valley nang hindi gugugol ang estado kahit na po piso.

Sa larangan ng ating Sandatahang Lakas:

Mayroon po tayong 36,000 nautical miles ng baybayin. Ang mayroon lamang tayo: tatlumpu’t dalawang barko. Itong mga barkong ito, panahon pa ni MacArthur.

May nagmungkahi sa atin, ito ang proposisyon: uupahan po nila ang headquarters ng Navy sa Roxas Boulevard at ang Naval Station sa Fort Bonifacio.

Sagot po nila ang paglipat ng Navy Headquarters sa Camp Aguinaldo. Agaran, bibigyan tayo ng isandaang milyong dolyar. At dagdag pa sa lahat nang iyan, magsusubi pa sila sa atin ng kita mula sa mga negosyong itatayo nila sa uupahan nilang lupa.
Sa madali pong sabi: Makukuha natin ang kailangan natin, hindi tatayo gagastos, kikita pa tayo.

Marami na pong nag-alok at nagmungkahi sa atin, mula lokal hanggang dayuhang negosyante, na magpuno ng iba’t ibang pangangailangan.

Mula sa mga public-private partnerships na ito, lalago ang ating ekonomiya, at bawat Pilipino makikinabang. Napakaraming sektor na matutulungan nito.

Maipapatayo na po ang imprastrukturang kailangan natin para palaguin ang turismo.

Sa agrikultura, makapagtatayo na tayo ng mga grains terminals, refrigeration facilities, maayos na road networks at post-harvest facilities.

Kung maisasaayos natin ang ating food supply chain sa tulong ng pribadong sektor, sa halip na mag-angkat tayo ay maari na sana tayong mangarap na mag-supply sa pandaigdigang merkado.

Kung maitatayo ang minumungkahi sa ating railway system, bababa ang presyo ng bilihin. Mas mura, mas mabilis, mas maginhawa, at makakaiwas pa sa kotong cops at mga kumokotong na rebelde ang mga bumibiyahe.

STREAMLINING PROCESSES

Paalala lang po: una sa ating plataporma ang paglikha ng mga trabaho, at nanggagaling ang trabaho sa paglago ng industriya. Lalago lamang ang industriya kung gagawin nating mas malinis, mas mabilis, at mas maginhawa ang proseso para sa mga gustong magnegosyo.

Pabibilisin natin ang proseso ng mga proyektong sumasailalim sa Build-Operate-Transfer. Sa tulong ng lahat ng sangay ng gobyerno at ng mga mamamayan, pabababain natin sa anim na buwan ang proseso na noon ay inaabot ng taon kung hindi dekada.

May mga hakbang na rin pong sinisimulan ang DTI, sa pamumuno ni Secretary Gregory Domingo:

Ang walang-katapusang pabalik-balik sa proseso ng pagrehistro ng pangalan ng kumpanya, na kada dalaw ay umaabot ng apat hanggang walong oras, ibababa na natin sa labinlimang minuto.

Ang dating listahan ng tatlumpu’t anim na dokumento, ibababa natin sa anim. Ang dating walong pahinang application form, ibababa natin sa isang pahina.

Nananawagan ako sa ating mga LGUs. Habang naghahanap tayo ng paraan para gawing mas mabilis ang pagbubukas ng mga negosyo, pag-aralan din sana nila ang kanilang mga proseso. Kailangan itong gawing mas mabilis, at kailangan itong itugma sa mga sinisumulan nating reporma.

Negosyante, sundalo, rebelde, at karaniwang Pilipino, lahat po makikinabang dito. Basta po hindi dehado ang Pilipino, papasukin po natin lahat iyan. Kailangan na po nating simulan ang pagtutulungan para makamit ito. Huwag nating pahirapan ang isa’t isa.

Parating na po ang panahon na hindi na natin kailangang mamili sa pagitan ng seguridad ng ating mamamayan o sa kinabukasan ng inyong mga anak.

FREEING UP FUNDS

EDUCATION

Oras na maipatupad ang public-private partnerships na ito, mapopondohan ang mga serbisyong panlipunan, alinsunod sa ating plataporma.

Magkakapondo na po para maipatupad ang mga plano natin sa edukasyon.

Mapapalawak natin ang basic education cycle mula sa napakaikling sampung taon tungo sa global standard na labindalawang taon.

Madadagdagan natin ang mga classroom. Mapopondohan natin ang service contracting sa ilalim ng GASTPE.

Pati ang conditional cash transfers, na magbabawas ng pabigat sa bulsa ng mga pamilya, madadagdan na rin ng pondo.

PHILHEALTH

Maipapatupad ang plano natin sa PhilHealth.

Una, tutukuyin natin ang tunay na bilang ng mga nangangailangan nito. Sa ngayon, hindi magkakatugma ang datos. Sabi ng PhilHealth sa isang bibig, walumpu’t pitong porsyento na raw ang merong coverage. Sa kabilang bibig naman, singkuwenta’y tres porsyento naman. Ayon naman sa National Statistics Office, tatlumpu’t walong porsyento ang may coverage.

Ngayon pa lang, kumikilos na si Secretary Dinky Soliman at ang DSWD upang ipatupad ang National Household Targetting System, na magtutukoy sa mga pamilyang higit na nagangailangan ng tulong. Tinatayang siyam na bilyon ang kailangan para mabigyan ng PhilHealth ang limang milyong pinakamaralitang pamilyang Pilipino.

LEGISLATIVE AGENDA

Napakaganda po ng hinaharap natin. Kasama na po natin ang pribadong sektor, at kasama na rin natin ang League of Provinces, sa pangunguna nina Governor Alfonso Umali kasama sina Governor L-Ray Villafuerte at Governor Icot Petilla. Handa na pong makipagtulungan para makibahagi sa pagtustos ng mga gastusin. Alam ko rin pong hindi magpapahuli ang League of Cities sa pangunguna ni Mayor Oscar Rodriguez.

Kung ang mga gobyernong lokal ay nakikiramay na sa ating mga adhikain, ang Kongreso namang pinanggalingan ko, siguro naman maasahan ko din.

Nagpakitang-gilas na po ang gabinete sa pagtukoy ng ating mga problema at sa paglulunsad ng mga solusyon sa loob lamang ng tatlong linggo.

Nang bagyo pong Basyang, ang sabi sa atin ng mga may prangkisa sa kuryente, apat na araw na walang kuryente. Dahil sa mabilis na pagkilos ni Secretary Rene Almendras at ng Department of Energy, naibalik ang kuryente sa halos lahat sa loob lamang ng beinte-kwatro oras.

Ito pong sinasabing kakulangan sa tubig sa Metro Manila, kinilusan agad ni Secretary Rogelio Singson at ng DPWH. Hindi na siya naghintay ng utos, kaya nabawasan ang perwisyo.

Nakita na rin natin ang gilas ng mga hinirang nating makatulong sa Gabinete. Makatuwiran naman po sigurong umasa na hindi na sila padadaanin sa butas ng karayom para makumpirma ng Commission on Appointments. Kung mangyayari po ito, marami pa sa mga mahuhusay na Pilipino ang maeengganyong magsilbi sa gobyerno.

Sa lalong madaling panahon po, uupo na tayo sa LEDAC at pag-uusapan ang mga mahahalagang batas na kailangan nating ipasa. Makakaasa kayo na mananatiling bukas ang aking isipan, at ang ating ugnayan ay mananatiling tapat.

Isinusulong po natin ang Fiscal Responsibility Bill, kung saan hindi tayo magpapasa ng batas na mangangailangan ng pondo kung hindi pa natukoy ang panggagalingan nito. May 104.1 billion pesos tayong kailangan para pondohan ang mga batas na naipasa na, ngunit hindi maipatupad.

Kailangan din nating isaayos ang mga insentibong piskal na ibinigay noong nakaraan. Ngayong naghihigpit tayo ng sinturon, kailangang balikan kung alin sa mga ito ang dapat manatili at kung ano ang dapat nang itigil.

Huwag po tayong pumayag na magkaroon ng isa pang NBN-ZTE. Sa lokal man o dayuhan manggagaling ang pondo, dapat dumaan ito sa tamang proseso. Hinihingi ko po ang tulong ninyo upang amiyendahan ang ating Procurement Law.

Ayon po sa Saligang Batas, tungkulin ng estado ang siguruhing walang lamangan sa merkado. Bawal ang monopolya, bawal ang mga cartel na sasakal sa kumpetisyon. Kailangan po natin ng isang Anti-Trust Law na magbibigay-buhay sa mga prinsipyong ito. Ito ang magbibigay ng pagkakataon sa mga Small- at Medium-scale Enterprises na makilahok at tumulong sa paglago ng ating ekonomiya.

Ipasa na po natin ang National Land Use Bill.

Una rin pong naging batas ng Commonwealth ang National Defense Act, na ipinasa noon pang 1935. Kailangan nang palitan ito ng batas na tutugon sa pangangailangan ng pambansang seguridad sa kasalukuyan.

Nakikiusap po akong isulong ang Whistleblower’s Bill upang patuloy nang iwaksi ang kultura ng takot at pananahimik.

Palalakasin pa lalo ang Witness Protection Program. Alalahanin po natin na noong taong 2009 hanggang 2010, may nahatulan sa 95% ng mga kaso kung saan may witness na sumailalim sa programang ito.

Kailangang repasuhin ang ating mga batas. Nanawagan po akong umpisahan na ang rekodipikasyon ng ating mga batas, upang siguruhing magkakatugma sila at hindi salu-salungat.

PEACE PROCESS

Ito pong mga batas na ito ang batayan ng kaayusan, ngunit ang pundasyon ng lahat ng ginagawa natin ay ang prinsipyong wala tayong mararating kung walang kapayapaan at katahimikan.

Dalawa ang hinaharap nating suliranin sa usapin ng kapayapaan: ang situwasyon sa Mindanao, at ang patuloy na pag-aaklas ng CPP-NPA-NDF.

Tungkol sa situwasyon sa Mindanao: Hindi po nagbabago ang ating pananaw. Mararating lamang ang kapayapaan at katahimikan kung mag-uusap ang lahat ng apektado: Moro, Lumad, at Kristiyano. Inatasan na natin si Dean Marvic Leonen na mangasiwa sa ginagawa nating pakikipag-usap sa MILF.

Iiwasan natin ang mga pagkakamaling nangyari sa nakaraang administrasyon, kung saan binulaga na lang ang mga mamamayan ng Mindanao. Hindi tayo puwedeng magbulag-bulagan sa mga dudang may kulay ng pulitika ang proseso, at hindi ang kapakanan ng taumbayan ang tanging interes.

Kinikilala natin ang mga hakbang na ginagawa ng MILF sa pamamagitan ng pagdidisplina sa kanilang hanay. Inaasahan natin na muling magsisimula ang negosasyon pagkatapos ng Ramadan.

Tungkol naman po sa CPP-NPA-NDF: handa na ba kayong maglaan ng kongkretong mungkahi, sa halip na pawang batikos lamang?

Kung kapayapaan din ang hangad ninyo, handa po kami sa malawakang tigil-putukan. Mag-usap tayo.

Mahirap magsimula ang usapan habang mayroon pang amoy ng pulbura sa hangin. Nananawagan ako: huwag po natin hayaang masayang ang napakagandang pagkakataong ito upang magtipon sa ilalim ng iisang adhikain.

Kapayapaan at katahimikan po ang pundasyon ng kaunlaran. Habang nagpapatuloy ang barilan, patuloy din ang pagkakagapos natin sa kahirapan.

PANAWAGAN

Dapat din po nating mabatid: ito ay panahon ng sakripisyo. At ang sakripisyong ito ay magiging puhunan para sa ating kinabukasan. Kaakibat ng ating mga karapatan at kalayaan ay ang tungkulin natin sa kapwa at sa bayan.

Inaasahan ko po ang ating mga kaibigan sa media, lalo na sa radyo at sa print, sa mga nagbablock-time, at sa community newspapers, kayo na po mismo ang magbantay sa inyong hanay.

Mabigyang-buhay sana ang mga batayang prinsipyo ng inyong bokasyon: ang magbigay-linaw sa mahahalagang isyu; ang maging patas at makatotohanan, at ang itaas ang antas ng pampublikong diskurso.

Tungkulin po ng bawat Pilipino na tutukan ang mga pinunong tayo rin naman ang nagluklok sa puwesto. Humakbang mula sa pakikialam tungo sa pakikilahok. Dahil ang nakikialam, walang-hanggan ang reklamo. Ang nakikilahok, nakikibahagi sa solusyon.

Napakatagal na pong namamayani ang pananaw na ang susi sa asenso ay ang intindihin ang sarili kaysa intindihin ang kapwa. Malinaw po sa akin: paano tayo aasenso habang nilalamangan ang kapwa?

Ang hindi nabigyan ng pagkakataong mag-aral, paanong makakakuha ng trabaho? Kung walang trabaho, paanong magiging konsumer? Paanong mag-iimpok sa bangko?

Ngunit kung babaliktarin natin ang pananaw—kung iisipin nating “Dadagdagan ko ang kakayahan ng aking kapwa”—magbubunga po ito, at ang lahat ay magkakaroon ng pagkakataon.

Maganda na po ang nasimulan natin. At mas lalong maganda po ang mararating natin. Ngunit huwag nating kalimutan na mayroong mga nagnanasang hindi tayo magtagumpay. Dahil kapag hindi tayo nagtagumpay, makakabalik na naman sila sa kapangyarihan, at sa pagsasamantala sa taumbayan.

Akin pong paniwala na Diyos at taumbayan ang nagdala sa ating kinalalagyan ngayon. Habang nakatutok tayo sa kapakanan ng ating kapwa, bendisyon at patnubay ay tiyak na maaasahan natin sa Poong Maykapal. At kapag nanalig tayo na ang kasangga natin ay ang Diyos, mayroon ba tayong hindi kakayanin?

Ang mandato nating nakuha sa huling eleksyon ay patunay na umaasa pa rin ang Pilipino sa pagbabago. Iba na talaga ang situwasyon. Puwede na muling mangarap. Tayo nang tumungo sa katuparan ng ating mga pinangarap.
Maraming salamat po.

ENGLISH TRANSLATION:

Speaker Feliciano Belmonte; Senate President Juan Ponce Enrile; Vice President Jejomar Binay, Chief Justice Renato Corona, Former Presidents Fidel Valdez Ramos and Joseph Ejercito Estrada; Members of the House of Representatives and the Senate; distinguished members of the diplomatic corps;

My beloved countrymen:

Our administration is facing a forked road. On one direction, decisions are made to protect the welfare of our people; to look after the interest of the majority; to have a firm grip on principles; and to be faithful to the public servant’s sworn oath to serve the country honestly.

This is the straight path.

On the other side, personal interest is the priority, and where one becomes a slave to political considerations to the detriment of our nation.

This is the crooked path.

For a long time, our country lost its way in the crooked path. As days go by (since I became President), the massive scope of the problems we have inherited becomes much clearer. I could almost feel the weight of my responsibilities.

In the first three weeks of our administration, we discovered many things, and I will report to you some of the problems we have uncovered, and the steps we are taking to solve them.

This report is merely a glimpse of our situation. It is not the entire picture of the crises we are facing. The reality was hidden from our people, who seem to have been deliberately obfuscated on the real state of our nation.

In the first six years of this year, government expenditure exceeded our revenues. Our deficit further increased to PhP196.7 billion. Our collection targets, which lack PhP23.8 billion, were not fully met, while we went beyond our spending by PhP45.1 billion.

Our budget for 2010 is PhP1.54 trillion. Of this, only PhP100 billion – or 6.5% of the total budget – can be used for the remaining six months of the current year. Roughly 1% of the total budget is left for each of the remaining month.

Where did the funds go?

A calamity fund worth PhP2 billion was reserved in preparation for anticipated calamities. Of this already miniscule amount, at a time when the rainy season has yet to set in, PhP1.4 billion or 70% was already spent.

The entire province of Pampanga received PhP108 million. Of this, PhP105 million went to only one district. On the other hand, the province of Pangasinan, which was severely affected by Typhoon Pepeng, received a mere PhP5 million, which had to be used to fix damages inflicted not even by Pepeng, but by a previous typhoon, Cosme.

The funds were released on election month, which was seven months after the typhoon. What will happen if a typhoon arrives tomorrow? The fund has been used up to repair damage from typhoons that hit us last year. Our future will pay for the greed of yesterday.

This is also what happened to the funds of the MWSS. Just recently, people lined up for water while the leadership of the MWSS rewarded itself even though the pensions of retired employees remain unpaid.

The entire payroll of the MWSS amounts to 51.4 million pesos annually.

But this isn’t the full extent of what they receive: they receive additional allowances and benefits amounting to 81.1 million pesos.

In short, they receive 211.5 million pesos annually. Twenty four percent of this is for normal salaries, and sixty six percent is added on.

The average worker receives up to 13th month pay plus a cash gift. In the MWSS, they receive the equivalent of over thirty months pay if you include all their additional bonuses and allowances.

What we discovered in the case of the salaries of their board of trustees is even more shocking. Let’s take a look at the allowances they receive:

Attending board of trustees and board committee meetings, and you get fourteen thousands pesos. This totals ninety eight thousand pesos a month. They also get an annual grocery incentive of eighty thousand pesos.

And that’s not all. They get a mid-year bonus, productivity bonus, anniversary bonus, year-end bonus, and financial assistance.

They not only get a Christmas bonus, but an additional Christmas package as well. Each of these amounts to eighty thousand pesos. All in all, each member of the board receives two and a half million pesos a year exclusive of car service, technical assistance, and loans. Let me repeat. They award themselves all of these while being in arrears for the pensions of their retired employees.

Even the La Mesa watershed wasn’t spared. In order to ensure an adequate supply of water, we need to protect our watersheds.

In watersheds, trees are needed. Where there should be trees, they built homes for the top officials of the MWSS.

We cannot remove them from their positions quickly because they are among the midnight appointees of former president Arroyo. We are investigating all of these things. But if they have any shame left, they should voluntarily relinquish their positions.

Now let’s discuss funds for infrastructure. The DPWH identified two hundred forty six priority safety projects to be funded by the motor vehicle user’s charge. This needs a budget of 425 million pesos. What they ended up funding were only 28 projects. They disregarded 218 projects and replaced these with seventy projects that weren’t in the plans. The 425 million pesos originally asked for became 480 million pesos, increasing because of projects allocated for a favored few.

These projects make no sense: unstudied and unprepared for, sprouting like mushrooms.

The era of such projects is at an end. Under our administration, there will be no quotas, there will be no overpricing, the funds of the people will be spent for the people.

There’s more. Five days before the term of the previous administration ended, they ordered 3.5 billion pesos to be released for the rehabilitation of those affected by typhoons Ondoy and Pepeng. This was supposed to fund eighty-nine projects. But nineteen of these projects amounting to 981 million pesos didn’t go through public bidding. Special Allotment Release Orders hadn’t even been released and yet the contracts were already signed. It’s a good thing Secretary Rogelio Singson spotted and stopped them.

Instead, they will all go through the proper bidding, and the funds will be used to provide relief to those who lost their homes due to typhoons Ondoy and Pepeng.

Let’s discuss what happened in Napocor. From 2001 to 2004, the government forced Napocor to sell electricity at a loss to prevent increases in electricity rates. The real motivation for this is that they were preparing for the election.

As a result, in 2004, NAPOCOR slumped deeply in debt. The government was obligated to shoulder the 200 billion pesos it owed.

What the public thought they saved from electricity, we are now paying for using public coffers. Not only are we paying for the cost of electricity; we are also paying for the interest arising from the debt.

If the money we borrowed was used properly, then there would be added assurance that constant supply of electricity is available. However, this decision was based on bad politics, not on the true needs of the people.

The people, after having to sacrifice, suffered even more.

This is also what happened to the MRT. The government tried again to buy the people’s love. The operator was forced to keep the rates low.

In effect, the guarantee given to the operator that he will still be able to recoup his investment was not fulfilled. Because of this, Landbank and the Development Bank of the Philippines were ordered to purchase the MRT.

The money of the people was used in exchange for an operation that was losing money.

Let us now move on to the funds of the National Food Authority (NFA).

In 2004: 117,000 metric tons (of rice) was the shortage in the supply of the Philippines. What they (the government) bought were 900,000 metric tons.

Even if you multiply for more than seven times the amount of shortage, they still bought more than what was needed.

In 2007: 589,000 metric tons was the shortage in the supply of the Philippines. What they bought were 1.827 million metric tons. Even if you multiply for more than three times the amount of shortage, they again bought more than what was needed.

What hurts is, because they keep purchasing more than what they need year after year, the excess rice that had to be stored in warehouses ended up rotting, just like what happened in 2008.

Is this not a crime, letting rice rot, despite the fact that there are 4 million Filipinos who do not eat three times a day?

The result is NFA’s current debt of 177 billion pesos.

This money that was wasted could have funded the following:

– The budget of the entire judiciary, which is at 12.7 billion pesos this year.
– The Conditional Cash Transfers for the following year, which cost 29.6 billion pesos.
– All the classrooms that our country needs, which cost 130 billion pesos.

This way of doing things is revolting. Money was there only to be wasted. You have heard how the public coffers were squandered. This is what is clear to me now: change can only come from our determination to stamp out this extravagance and profligacy.

That is why starting now: we will stop the wasteful use of government funds. We will eradicate projects that are wrong.

This is the point of what we call the zero-based approach in our budget.

What used to be the norm was every year, the budget merely gets re-enacted without plugging the holes.

Next month we will be submitting a budget that accurately identifies the problem and gives much attention on the right solution.
Those that I have mentioned were only some of the problems we have discovered. Here now are examples of the steps we are undertaking to solve them.

There is a case of one pawnshop owner. He purchased a vehicle at an estimated cost of 26 million pesos.

If he can afford to buy a Lamborghini, why can’t he pay his taxes?

A case has already been filed against him. Through the leadership of Finance Secretary Cesar Purisima, BIR Commissioner Kim Henares, Customs Commissioner Lito Alvarez, and Justice Secretary Leila de Lima, every week we have new cases filed against smugglers and against those who do not pay the right taxes.

We have also already identified the suspects of the cases of Francisco Baldomero, Jose Daguio and Miguel Belen, 3 of the 6 incidents of extralegal killings since we assumed the Presidency.

Fifty percent (50%) of these incidents of extralegal killings are now on their way to being resolved.

We will not stop the pursuit of the remaining half of these killings until justice has been achieved.

We will hold murderers accountable. We will also hold those who are corrupt that work in government accountable for their actions.

We have begun forming our Truth Commission, through the leadership of former Chief Justice Hilario Davide. We will search for the truth on the alleged wrongdoing committed in the last nine years.

This week, I will sign the first ever Executive Order on the formation of this Truth Commission.

If the answer to justice is accountability, the answer to the dearth in funds is a new and creative approach to our long-standing problems.

We have so many needs: from education, infrastructure, health, military, police and more. Our funds will not be enough to meet them.

No matter how massive the deficit is that may keep us from paying for this list of needs, I am heartened because many have already expressed renewed interest and confidence in the Philippines.

Our solution: public-private partnerships. Although no contract has been signed yet, I can say that ongoing talks with interested investors will yield fruitful outcomes.

There are some who have already shown interest and want to build an expressway from Manila that will pass through Bulacan, Nueva Ecija, Nueva Vizcaya, until the end of Cagayan Valley, without the government having to spend a single peso.

On national defense:

We have 36,000 nautical miles of shoreline, but we only have 32 boats.

These boats are as old as the time of (US General Douglas) MacArthur.

Some had this proposition: they will rent the Navy headquarters on Roxas Boulevard and the Naval Station in Fort Bonifacio.

They will take care of the funding necessary to transfer the Navy Headquarters to Camp Aguinaldo. Immediately, we will be given 100 million dollars. Furthermore, they will give us a portion of their profits from their businesses that would occupy the land they will rent.

In short, we will meet our needs without spending, and we will also earn.

There have already been many proposals from local to foreign investors to provide for our various needs.

From these public-private partnerships, our economy will grow and every Filipino will be the beneficiary. There are so many sectors that could benefit from this.

We will be able to construct the needed infrastructure in order to help tourism grow.

In agriculture, we will be able to have access to grains terminals, refrigeration facilities, orderly road networks and post-harvest facilities.

If we can fix out food supply chain with the help of the private sector, instead of importing, we will hopefully be able to supply for the needs of the global market.

The prices of commodities will go down if we are able to make this efficient railway system a reality. It will be cheaper and faster, and it will be easier for travelers to avoid crooked cops and rebels.

A reminder to all: creating jobs is foremost on our agenda, and the creation of jobs will come from the growth of our industries. Growth will only be possible if we streamline processes to make them predictable, reliable and efficient for those who want to invest.

We make sure that the Build-Operate-and-Transfer projects will undergo quick and efficient processes. With the help of all government agencies concerned and the people, a process that used to take as short as a year and as long as a decade will now only take six months.

The Department of Trade and Industry has already taken steps to effect this change, under the leadership of Secretary Gregory Domingo:

The never-ending horror story of registering business names, which used to take a minimum of four to eight hours depending on the day, will be cut down drastically to fifteen minutes.

What used to be a check list of thirty-six documents will be shortened to a list of six, and the old eight-page application form will be whittled down to one page.

I call on our local government units to review its own procedures. While we look for more ways to streamline our processes to make business start-ups easier, I hope the LGUs can also find ways to implement reforms that will be consistent with the ones we have already started.

All will certainly benefit from this streamlining — be it businessmen, soldiers, rebels and ordinary Filipinos. As long as the interests of Filipinos will not be jeopardized, we will explore all available avenues to make this a reality. We must start now, and we should all help achieve this and not stand in each other’s way.

The time when we will no longer be made to choose between our people’s security and the future of our children is upon us now.

Once we implement these public-private partnerships, we will be able to fund public service in accordance with our platform.

This will enable us to fund our plans for education.

We will be able to expand our basic education cycle from seven years to the global standard of twelve years.

We can build more classrooms, and we will fund service contracting under the Government Assistance to Students and Teachers in Private Education Program (GASTPE).

Conditional cash transfers that aim to lessen the burden of education on parents will also be funded if this partnership becomes a reality.

Our plans for improving PhilHealth can now be within reach.

First, we will identify the correct number of Filipinos who sorely need PhilHealth coverage, as current data is conflicting on this matter. On one hand, PhilHealth says that eighty-seven percent (87%) of Filipinos are covered, then lowers the number to only fifty-three percent (53%). On the other hand, the National Statistics Office says that only thirty-eight percent (38%) of Filipinos are covered by Philhealth.

Even as we speak, Secretary Dinky Soliman and the Department of Social Welfare and Development are moving to implement the National Household Targeting System that will identify the families that most urgently need assistance. An estimated 9 billion pesos is needed in order to provide coverage for five million poor Filipinos.

Our country is beginning to see better days ahead. The private sector, the League of Provinces headed by Governor Alfonso Umali, together with Governors L-Ray Villafuerte and Icot Petilla, are now ready to do their share when it comes to shouldering the financial burden. I know that the League of Cities under the leadership of Mayor Oscar Rodriguez will not be far behind.

If the local governments share in our goals, I know that I can surely count on Congress, the institution where I began public service, to push for our agenda for change.

Our Cabinet has already showed it skill by identifying not just problems but also proposing solutions in a matter of three weeks.

In the aftermath of Typhoon Basyang, we were told by those in the power sector that we would be without electricity for four days. The quick action of Secretary Rene Almendras and the Department of Energy resulted in the restoration of power to almost all those affected within twenty-four hours.

The so-called water shortage in Metro Manila was quickly attended to by Secretary Rogelio Singson and the Department of Public Works and Highways. Secretary Singson did it without prodding, which alleviated the suffering of those affected.

We also witnessed the competence and initiative of those we appointed to be part of our Cabinet. It is but just that they not be forced to go through the eye of a needle to be confirmed by the Commission on Appointments.

Should this happen, competent Filipinos will be encouraged to help our country by becoming public servants.

In the soonest possible time, we will convene the Legislative Executive Development Advisory Council (LEDAC) to discuss the important bills that need to be addressed. Rest assured that I will keep an open mind and treat you honorably.

We will push for the Fiscal Responsibility Bill, which will limit spending bills only for appropriations that have identified a source of funding. We need 104.1 billion pesos to fund those laws already passed but whose implementation remains pending because of lack of funds.

We will re-evaluate fiscal incentives given in the past. Now that we are tightening our purse strings, we need to identify those incentives that will remain and those that need to be done away with.

We will not allow another NBN-ZTE scandal to happen again. Whether from local or foreign sources, all proposed contracts must undergo the scrutiny of correct procedures. I now ask for your help with amending our Procurement Law.

According to our Constitution, it is the government’s duty to ensure that the market is fair for all. No monopolies, no cartels that kill competition. We need an Anti-Trust Law that will give life to these principles, to afford Small- and Medium-Scale Enterprises the opportunity to participate in the growth of our economy.

Let us pass into law the National Land Use Bill.

It was in 1935, during the Commonwealth, that the National Defense Act was passed. There is a need to amend for a new law that is more responsive to the current needs of national security.

I appeal to our legislators to pass the Whistleblower’s Bill to eradicate the prevalent culture of fear and silence that has hounded our system.

We will strengthen the Witness Protection Program. We must remember that from 2009 to 2010 alone, cases which involved the participation of witnesses under the program resulted in a ninety-five percent conviction.

There is a need to review our laws. I call on our lawmakers to begin a re-codification of our laws to ensure harmony in legislation and eliminate contradictions.

These laws serve as the basis of order in our land, but the foundation of all rests on the principle that we cannot grow without peace and order.

We face two obstacles on our road to peace: the situation in Mindanao and the continued revolt of the CPP-NPA-NDF.

Our view has not changed when it comes to the situation in Mindanao. We will only achieve lasting peace if all stakeholders engage in an honest dialogue: may they be Moro, Lumad, or Christian. We have asked Dean Marvic Leonen to head our efforts to talk to the MILF.

We will learn from the mistakes of the past administration, that suddenly announced an agreement reached without consultations from all concerned. We are not blind to the fact that it was done with political motivation, and that the interest behind it was not that of the people.

We recognize the efforts of the MILF to discipline those within its ranks. We are hopeful that the negotiations will begin after Ramadan.

To the CPP-NPA-NDF: are you prepared to put forth concrete solutions rather than pure criticism and finger-pointing?

If it is peace you truly desire, then we are ready for an immediate cease-fire. Let us go back to the table and begin talking again.

It is difficult to begin discussions in earnest if the smell of gun powder still hangs in the air. I call on everyone concerned not to waste a good opportunity to rally behind our common aspiration for peace.

Our foundation for growth is peace. We will continue to be shackled by poverty if the crossfire persists.

We must understand that now is a time for sacrifice. It is this sacrifice that will pave the way for a better future. With our freedom comes our responsibility to do good unto our fellows and to our country.

To our friends in media, especially those in radio and print, to the block-timers and those in our community newspapers, I trust that you will take up the cudgels to police your own ranks.

May you give new meaning to the principles of your vocation: to provide clarity to pressing issues; to be fair and truthful in your reporting, and to raise the level of public discourse.

It is every Filipino’s duty to closely watch the leaders that you have elected. I encourage everyone to take a step towards participation rather than fault-finding. The former takes part in finding a solution; from the latter, never-ending complaints.

We have always known that the key to growth is putting the interest of others beyond one’s own. One thing is clear: how do we move forward if we keep putting others down?

How will those without education secure quality jobs? How will the unemployed become consumers? How will they save money for their future needs?

If we change all this, if we prioritize enabling others, we will open a world of opportunities not just for ourselves but for those who direly need it.

We have already begun the process of change, and we are now able to dream of better things for our country. Let us not forget that there are those who wish us to fail, so that they will once again reclaim power to do as they please at the expense of our people.

My firm belief is that our fate is in the hands of God and our people. While we focus on uplifting the lives of our fellow men, I have an unshakeable faith that Almighty God will give us His blessings and support. If we remain firm in our belief that God is on our side, is there anything impossible for us to achieve?

The mandate we received last May 10 is testament to the fact that the Filipino continues to hope for true change. The situation is not what it was before; we can all dream again. Let us all become one in achieving a fulfilment of our hopes and aspirations for our country.

Maraming Salamat Po!

A Philippines that Works: Economic Vision and Platform

Speech by Senator Benigno S. “Noynoy” Aquino III delivered on January 21, 2010 before the members of the Makati Business Club at the Peninsula Manila Hotel, Makati City

Four-part video of the speech, courtesy of NoyTV on YouTube:

[youtube]http://www.youtube.com/watch?v=oAFlybsqCjc&feature=player_embedded[/youtube]

[youtube]http://www.youtube.com/watch?v=NV-Uyoe_eso&feature=player_embedded[/youtube]

[youtube]http://www.youtube.com/watch?v=DnM2qrEpEes&feature=player_embedded[/youtube]

[youtube]http://www.youtube.com/watch?v=Andlyzn6f1A&feature=player_embedded[/youtube]

A Philippines That Works Economic Vision and Platform

Officers and members of the Makati Business Club, Your Excellencies of the diplomatic corps, ladies and gentlemen, my friends and countrymen.

Thank you very much for giving me the opportunity to address you. I trust your asking me first is not based on alphabetical order, or based on age, but perhaps, based on who you think will most likely win the coming election.

As managers, you recognize that one of the necessary skills of an effective manager is time management. Is it possible that you have invited me to determine if there is still a necessity to spend time with the others?

Baka naman inuna niyo ako upang malaman kung sapat na ako at hindi na kailangang pansinin yung iba?

I think we are all aware of the problems facing our country. We share the same statistics. We probably even share the same conclusions about the need for better governance. To rehash all of these problems at this forum would be a waste of your time. But what we have now is an opportunity for you to get to know me, to find out the advocacies that I champion, the perspective and philosophies I bring to the equation and some of my proposed solutions to give an insight into my inner persona.

Levity aside, the political exercise that we will engage in this May is a crucial one. It will be, as it is for every fledgling democracy, a test of the strength of our political institutions. The peaceful transition of power has become a symbol of political maturity across the world, with many still failing to achieve the credibility that is the cornerstone of a genuine political mandate. With the electoral scandals that have stalled our democratic progress as of late, it is not a test that we can afford to fail.

We have an administration whose mandate is clouded in doubt and overshadowed by allegations of fraud because it refused every opportunity to clear the air and be held to account. Its choices have limited its decision-making to seeking ways to ensure day-to-day political survival and self-interest. We must now become a government committed to accountability. A government that works with the people in achieving long-term change.

We must make the shift from bare economic survival to robust economic growth. We must make the change from treading water to keep afloat, to reaching that promised shore where we can all stand tall as healthy, happy, educated and responsible fellow citizens.

But why does transformation seem like such an impossible dream?

Isa sa mga tema ng ating kalaban, yung “ang pagbabago, madaling sabihin yan pero mahirap gawin,” is probably echoed by a lot of Filipinos. The oft-repeated question is, why can’t we advance? Why can’t we progress? What is it in us that limits or prohibits our growth as a people and as a country?

All of you are aware that most of the contenders have had years, possibly even decades, of preparation for this electoral exercise. I had no such ambitions to run in the 2010 elections but I responded to the people’s clamor. I am but the face of what we believe is the overwhelming demand of our people to repudiate everything wrong in the current administration.

Given that I only announced my decision to seek the presidency on September 9, and I only came to that decision the day before, I have not had material time comparable to our opponents. What is perplexing is that viewing the same problems, and having access to the same data for the most part, we believe the solutions have been there all along, and necessitate only clear political will to execute. But most of our opponents seem to indicate the contrary opinion that there is very little that we can do to change the situation. One has to wonder: did they overstudy the problem, or are they committed to preserving the status quo?

If the leader is not convinced that change is not only necessary, but extremely possible, how does he lead us to the promised land?

What is it that we want to change?

We want to repair the damage that has been wrought on our democratic institutions by those who have sought to manipulate them for their own selfish ends.

We want to improve the situation of our people, who have suffered years of neglect because of a self-absorbed leadership obsessed with political survival.

They are poor. Many of them are homeless. Each year, we add some 2.5 million mouths to feed to our already hungry population. Of these new additions, one third were the result of unplanned pregnancies. We have a growing underclass that statistics tell us have given up looking for work. A permanent underclass that includes the five million of our countrymen that are illiterate, which means their opportunities in life will always be limited to living hand-to-mouth.

We want to give our young the opportunity and means to improve their lot in life.

It can only begin if our children and their parents are assured that money spent on education is money well spent. Unfortunately, students are at the mercy of our decrepit education system that allows double shifting, erroneous textbooks and substandard nursing schools to exist. No less than DepEd officials admitted that students in Grade 1 take three subjects in one class period. We have a procurement program so heedless of the need for excellence that it doesn’t care if it produces a textbook series riddled with 500 factual errors. For every hundred kids that start grade school with the hope of achieving their dreams, only fourteen will graduate from college and possess a tangible means to materially improve their lives.

To my mind, the crucial, lacking element in all these is a government committed to a transformation: from a society overwhelmingly poor to one overwhelmingly middle class. In every developed, progressive, prosperous democracy, it is the middle class that is the biggest class. Government, for one, has failed to make the conceptual leap from patronage to development. Efforts at feeding the hungry, clothing the naked, providing basic care to the sick, and offering a quality education aren’t only the people’s rights; they are the essential tools for individual self-improvement.

In 1998, when I first campaigned for office, one lady bluntly told me that regardless of who is elected, things would remain the same for her.

What did she mean?

That she was poor to begin with; that she would remain poor, and in fact, she would be lucky if she didn’t end up poorer, after the candidates leave office.

This brings up the question at the forefront of the minds of our countrymen still undecided on whom to vote for, and pursued by my critics. If this is a time that calls for national transformation, am I qualified to be that transformative leader? Having answered the call of duty, can I ask you or anyone to entrust me with your vote, on faith alone? Never having sought the presidency, I preferred to do my duty and not seek the limelight. Now that I have been thrust in the limelight, it is only fair to answer the question: before you tell us what we can do, what have you done?

I have always believed that the job of an effective legislator goes beyond merely proposing laws, for what are laws but written agreements entered into by members of society on how to harmonize their mutual relations? In fact, I do not believe that we suffer from the problem of too few laws. One of my proposed measures was the recodification of laws, in response to an appeal from the legal community to put some order into our laws, their amendments and those that have been repealed, because even our lawyers are at times confused.

Consider the recent controversy over who gets to appoint the next Chief Justice. We maintain that there are no ifs and buts in Article 7 Section 15 of the Constitution where it states that the current President cannot appoint anybody within two months prior to a presidential election up to the end of her term. An exemption exists, but it applies only for positions in the Executive Department. Yet you have two retired justices arguing exactly the opposite. How can former justices of the Supreme Court be so seemingly confused, when the fact is that the provision regarding presidential appointments is stated clearly in the law?

Our problem is the lack of political will to faithfully implement the many world-class laws that our legislature has passed. A preference for ambiguity even when times call for clarity, leads to artificial controversies. Insecure or overly ambitious leaders need to create a climate of doubt, because it’s in the grey areas that its ambitions thrive.

It is in addressing this problem that I focused on the fiscalizing aspect of a legislator’s job – on Congress’ oversight and investigative functions.

Consider intelligence funds. In the proposed 2010 budget, a total of 1.4 billion was allocated to confidential and intelligence funds.

Woodrow Wilson once wrote that oversight is always preferable to investigation, which is like putting out a fire instead of preventing one. We proposed that if the Executive wants orderly transactions, at least a few members of Congress should be privy to all of the details to determine if they were spent properly. However, this proposal was dismissed out of hand without even a single hearing for the reason that they undermined the Executive’s privileges.

And yes, the investigations were a vital part of my functions, too. I don’t think anyone will begrudge me my efforts in this regard. From Hello Garci and the impeachments, to NBN-ZTE and the fertilizer scam, I did my duty at the forefront of these issues.

The original design of the NBN-ZTE project required a BOT agreement between government and the supplier, not a government loan. But during the NBN-ZTE hearings, we learned that the project was entered into through a government loan despite instructions to the contrary from no less than the President herself. The cost of the intended government loan was P40 billion, (in which P16 billion was for the backbone and P24 billion was for the CyberEd project.) Jun Lozada belied this when he cited P5 billion as the actual cost of the entire project. Ito yung sinasabi niyang kalakaran ng gobyerno, kung saan sa sobrang laki ng patong, bubukol na.

SCTEx took around 8 years to construct before it finally opened. Projects of this scale normally require two years to complete. Furthermore, when SCTEx finally became operational, it was found that the central hub, which was Clark, did not have an exit, excluding Clark from the Subic Clark Tarlac expressway itself. How can one justify these kinds of delays where opportunities are lost, costs have escalated and the people’s burdens, instead of being reduced, end up being compounded?

My active role in these congressional hearings has put me at odds with the administration. In 2005, it cost me my post as Deputy Speaker. It continues to put me at odds with the coalition of self-interest that currently holds power. It puts me at odds with other candidates for the presidency.

To lead transformation, you cannot be part of the problem. As I said when I accepted the people’s draft, the job of chief executive is about the efficient allocation of resources. If you have hogged those resources for yourself, if you have lied, cheated, and stolen to gain power, how can you be trusted to lead the transformation our country needs?

Going back on the issue of appointing a Chief Justice prior to the forthcoming elections. If we are to transform the country, it begins with doing what we can, now, to limit the damage and give our people a fighting chance to rebuild our damaged institutions. The Constitution imposes a blanket prohibition with few exceptions concerning midnight appointments. A candidate cannot ask for the people’s mandate, pledging to improve the situation tomorrow, if he becomes complicit in worsening the situation today.

Hindi naman mahirap gawin ang tama. Alam naman ng lahat yan eh. Wala namang magic, wala namang sikreto. Pero bakit pilit pa ring ginagawa ang mali?

There is a widespread perception that success in the business milieu can almost be directly correlated to your closeness to the powers-that-be. Because of this, some players in the industry are forced to focus their activities on maintaining relationships in order to retain the favors that they receive in exchange for cultivating that relationship. This has fostered the wrong kind of competitiveness. While it may work, locally, for now, it has not enabled these players to become competitive in the world market, where the rules of the game do not take special relationships into consideration.

We will encourage free and fair competition in a level playing field. One not need be a crony in order to succeed in the field of business. More importantly, government will not compete with business. Nor will government use its regulatory powers to extort, intimidate and harass.

We will transform our systems to foster service to the public instead of making citizens jump through hoops. We will streamline the approval process, not only for setting up new businesses but also in the regular day-to-day transactions with government, such as the payment of taxes. We will do this on a national as well as the local level.

In 2010, our next President will inherit a continually bloating deficit. As of November 2009, the deficit of the national government already reached P272.5 billion, or 4.1% of GDP.

In addressing the looming fiscal crisis, good governance and the drive against corruption are critical components in our strategy. We will refrain from imposing new taxes or increasing tax rates.

I strongly believe that we can collect more taxes at the BIR and higher duties at Customs if we become more serious in curbing and punishing tax evasion and smuggling. The BIR’s collection dropped by 5.5%, while that of Customs declined by 16.6%. This is the first time in recent history that absolute revenues have actually declined.

Our initial focus then will be to capture a good part of the revenue leaks caused by smuggling and evasion. In this effort, we will not be starting from zero. Be assured that those smugglers and evaders are not faceless and unknown entities. The ideas to improve tax administration and to control smuggling have been there for some time and some programs have been initiated in the past. One of these successful programs was the RATE or Run After Tax Evaders. In fact, some of the people at the Department of Finance and the BIR who have tried to implement reforms before are with us now, and together with reform-minded career executives, we intend to put their commitment and talents to good use under my administration.

My vision is to transform our country into one where we have lower tax rates enjoyed by all, rather than have some enjoy absolute tax exemptions while we burden the rest of the economy with very high tax rates. I believe that markets are better than government in spotting where the growth opportunities are, and, with universal low tax rates, we will encourage entrepreneurs and enterprises to invest and create jobs in any industry. We will, therefore, pursue the rationalization of fiscal incentives early in my administration.

There is a lot of room for our revenue base to grow. Our tax effort has gone down from 17% at its peak to a worrisome 13% today. If we can only bring this back even to just the 15% level, that will translate to P150 billion in additional revenues, which would make a significant dent in cutting our deficit.

My budget team estimates that for 2009 alone, around P280 billion of our national budget was lost to corruption. If we take the years 2002 to 2009 the total estimates exceed one trillion. Estimates vary, but everyone agrees that the numbers are huge.

If we agree that change is necessary, how can a Presidential aspirant, whose own financial and political ethics are questionable, be effective in leading transformation as the head of the bureaucracy? How can a leader, who is benefiting from the status quo, be able to restore a civic sense and pride in our citizenry? The leader, who has used public office for private gain, will always be the most committed enemy of change.

Rich or poor alike, we have a tangible experience of the sorry state of public infrastructure at present: traffic, which eats up time, which as the saying goes, is money. Railways are built at bloated cost; urban transport is constructed, but not enough trains are on track. Our people are the first to experience the effect of something that works and conversely, something that is badly done because bad intentions handicapped the project from the start.

It is time that our infrastructure agencies and LGUs transform into cooperative ventures with the private sector by bringing forth an agreed public infrastructure program, based on a cohesive plan that optimizes the value of the entire network. In our conversations with members of the private sector, there has been a lot of positive feedback about possibly working with government on this endeavor.

To transform infrastructure projects from sources of waste and scandal into examples of cooperation and efficiency, we will set objective criteria for different types of projects and develop a scorecard that will assess various projects against benchmarks transparent to the public.

Initially we want our infrastructure program to transform from being the means to enrich a few, to being labor-intensive and biased for employment as a means to pump-prime the economy.

When I read about countries that have invested in their agriculture sectors and succeeded, it always pains me to find that these countries – Vietnam and Thailand, to name just a couple – had started by sending their experts to be educated in the Philippines. It seems that we cannot implement among ourselves the lessons we successfully imparted to experts from elsewhere. This will have to change. We must be able to harness our homegrown talent in order to further our local industries.

When we change administrations, there must be a complete review of all the programs in the Department of Agriculture. We can do a lot for our farmers given the present budget of the Department if we eliminate the leaks and focus on the efficient use of resources. For example, we must stop eating up millions in mere administrative costs as in the case of NABCOR, which charged our government P60 million because it served as a useless conduit to regional offices. We will also support efforts such as supply chain management that minimizes losses, creates jobs, consults with stakeholders, and capitalizes on our competitive advantage.

Our core belief is that the current approach to governance and power must change. That is why our terms of reference always begin with the present government, what it has done, and how different our institutions and our nation must be six years from June 30, 2010.

In a small-scale operation it is easy for everyone involved to visualize that entity as the combination of their collective efforts. As opposed to, say, when you are a bigger firm, and there is the management side and there is the labor side. In Tagalog, it’s even more dramatic. Kayo at kami, sa halip na tayo.

We must find a unity that transcends the divisions of today, based on a shared commitment to transforming our country into one that works: One where traffic flows well, garbage is collected efficiently, crimes are solved, justice is served, and our kids are educated properly. It works in the sense that you do not have to flee the country to move up in the world, improve your lot in life, and rise to the highest level your personal merits can achieve.

We are a nation of sacrifice, of diligence, dedication and, idealism, because we are a people imbued with compassion even when we have officials who lie, cheat, and steal. Our faith teaches us that we are our brother’s keeper. Our logic should tell us that in taking care of others, their growth equals our own.

In the movie “Invictus,” Nelson Mandela says, “In order to rebuild our nation, we must exceed our own expectations.” It requires us to insist, always, that we are not a nation of crooks, of thieves, of murderers who get off scot-free and where justice is won by the highest bidder.

In May, you will be asked to make a choice. Will you choose transformation and change or will you choose to uphold the status quo?

We have already made our choice. Ours is a journey towards transformation. I ask you today to join us in this journey now.

Thank you.

[Archived from the official campaign web site of President Benigno S. “Noynoy” Aquino III]

Transcript of BSAIII's answers during the Makati Business Club open forum

Transcript of Sen. Benigno S. “Noynoy” Aquino’s answers during the Makati Business Club (MBC) open forum, following his delivery of “A Philippines That Works: Economic Vision and Platform“, January 21, 2010

Four-part video of the open forum, courtesy of NoyTV on YouTube:

[youtube]http://www.youtube.com/watch?v=TE3cdLk_JEo[/youtube]

[youtube]http://www.youtube.com/watch?v=2R94-wr_4c0[/youtube]

[youtube]http://www.youtube.com/watch?v=a6nJ8OnI-jo[/youtube]

[youtube]http://www.youtube.com/watch?v=_f7xhhZKEzs[/youtube]

Transcript of Responses at the Makati Business Club Forum

Question: In governing you will need the cooperation of Congress, what’s your strategy for getting their cooperation particularly in a situation where you do not control either or both of the houses?

Sen. Noynoy Aquino: Well sir I think you will agree with me that the tradition for the past congresses has been that the dominant party becomes the party to which the President belongs to. If I’m elected president, we already have our Liberal Party, we have our allies in other aggregations and party-list groups but more importantly, the vast majority will always want to be siding with the administration, whoever it is, so cooperation with congress doesn’t seem to be a problem at this point in time as we foresee.

Question: South Africa, after apartheid, formed a Truth Commission. De Klerk, Mandela, wound up winning the Nobel Prize. In South Korea, a similar search for the truth landed … in jail. Given the sustained unpopularity and perceived excesses of the present leadership, will there be priority given by your administration if you win, to ferret out truths about the GMA years? You talk about Garcillano, you talk about Pidal, Peter Wallace and his Wallace 11, ZTE and the like of transactions. What is your administration going to do in this regard?

Sen. Noynoy Aquino: The job of the Chief Executive is to enforce all of the laws; recovery of ill-gotten wealth, if it exists, is not a proscribed activity, meaning there are no time limits to it but it has to be a priority. I’ve already made a public statement that I want closure on all of these issues if elected president. That means that one of the four platforms, the top four in the agenda is judicial reform. There has to be certainty of conviction and punishment if you do commit crimes in this country.

A sad fact is that all of the cases that are filed by the prosecutors, only about 18% wind up as convictions. As you know our system says that a prosecutor, before he introduces a case, should be convinced about the validity of the case, the preponderance of evidence at present. But after having undergone that process, it only results in 18% and those are official statistics. 33% are dismissed; we lose all of these cases. Therefore, adherence to the rule of law seems to be honored more in the breach. Now so, in direct answer to your question, there have never been answers to all of the issues that you have mentioned, be it Hello Garci, be it ZTE. For instance in ZTE, there was a board meeting by the NEDA, there were clear-cut instructions on sovereign guarantees on a BOT basis. This was reversed. Those were orders of the head of NEDA and also who happens concurrently to be the head of republic. Who can supersede the orders of the president of this republic? That has to be settled. What are the loopholes that were exploited so that the NBN-ZTE deal almost became the nightmare? But fortunately the people rose up to oppose.

Again, let me reiterate, it will be one of the priorities that will happen within the first 6 months; I guess within the first month we will already be tackling all of these issues under the Department of Justice and to ferret out and move the investigation, and if so warranted, to file the necessary charges.

Question: Will you or will you not form a Truth Commission?

Sen. Noynoy Aquino: In the Truth Commission, was something I’ve always been studying ever since I became a congressman the first time in 1998. I thought that the model and the idea of closure for a lot of things. One question that I wasn’t able to answer then was, as you know, in South Africa, a necessary component of availing of the privileges was to reveal everything you knew about crimes that you had committed during the apartheid regime, by both sides, which included very vivid descriptions of various tortures employed. I was asking myself, in the Philippine context, if a father were to revisit a crime committed to a child, who was tortured by government forces in the martial law years, will that not in turn, foster a new cycle of violence? I’ve never really been able to answer that question. But in terms of reviewing this past decade and the lost opportunities in what are the systemic loopholes that were exploited that got us to this point, yes, but in terms of filing charges against those who are guilty of committing crimes that I think should be left to the Department of Justice, in the very capable hands of a very active and proactive Secretary of Justice, who I will not name at this point in time lest he be persecuted for that.

Question: Over the last decade or so the Philippine economy has not done well in manufacturing, it has not come out competitive in the world, and agriculture has not developed as you mentioned the way it should, and the country has moved more and more toward being a service industry, very successfully in some cases, call centers, BPO, tourism beginning to pick up, this is an area which I think there is a great potential for the Philippines. But it requires one thing that the two other sectors don’t require, education. And the educational system in the Philippines has deteriorated dramatically and alarmingly. We only have a ten-year primary/secondary school system where everywhere else in the world has 12. as you mentioned only 14% graduate from college level. We don’t have enough classrooms, books full or errors, all the things you know. What specific things will you do to correct the situation? And where and how will you get the funds?

Sen. Noynoy Aquino: There are various solutions to the problem, and first of all let me agree with you Mr. Juarez with all the things you’ve said previously. What are solutions? How much will it cost to…there is an estimated twenty to forty thousand classroom need in this country. If our main focus will be to pump prime the economy and generate employment, then we will build the schools.

Our experts tell us within a year, maximum of two years we can complete the twenty to forty thousand, even at the cost of a million per classroom, although at this point in time the average is at about 500,000, and where will we get the money? As I’ve mentioned earlier, there are so much leakages in our revenue collection efforts. The 150 billion, we can allocate a portion of the 150 billion towards meeting at least part of the 40 billion necessary, if pump-priming was the necessary goal.

On the other hand we want a more effective use of the resource, we can contract private schools. I’m made to understand that middle-tier schools have a tuition in the 5,000 to 8,000 bracket. What does that mean? For a class size of 50, that translates into Php400,000 cost per classroom of 50. When we build classrooms, the shell, the basic shell lacking, the chairs, the blackboard, electricity, the books, the teachers, etc., just the basic shell is already on average nation-wide Php500,000. So if we are to send these children, there’s an existing program using a voucher system called “Gasbi.” If we send these children to private schools but in a direct contracting basis so that there are no abuses in the system, we can save about Php100,000 per classroom. That translates into, or we can utilize that resource into supplemental feeding programs, into a better book development program, into a scholarships for college, into scholarships for teachers, benefits, so on and so forth.

So, the plan is, transform it from 10 to 12, there is a bridge program, it’s already in the books, that’s why my theme is always “there are no secrets.” The plan is a good plan, it’s already there, it’s really just a question of implementing the same. Now, I think it is unfair for our students to, to expect rather, our students to be able to absorb 12 years’ worth of education in a 10-year program, further compounded by the desire to be solving the problems by saying we have no more classroom shortages, and this was done basically by shifting. Shifting is making 2 or 3 classes utilize 1 classroom. And I would just like to emphasize because that really angers me every time I think about it. You’re a Grade 1 student, which is the entry level, in our public school system, you have a class supposedly for English, to which Science and Health have been included. So, the child who probably doesn’t understand English, is tasked to understand scientific concepts taught in English and together with health. To further compound it, as if he didn’t have enough problems, he’s given a textbook that has errors known only to the teacher, who is in possession of teacher’s notes. The Grade 1 student, I think no, by the DepEd is expected to be able to discern what is right and what is wrong at Grade 1, in a language he doesn’t understand.

Therefore the investment is a guarantee of problems down the line. People who cannot be employed think, limitations as to what we can do given the talent that is there before us. So we want to get to the 12-year program, we want to have a pre-school level where they are taught or conditioned to be able to study. And of course those textbooks will really have to be corrected and people who accepted the same and contracted for the same should be liable.

Question: Could we encourage Congress to spend its pork barrel on education?

Sen. Noynoy Aquino: Pork barrel will be limited to national priority programs, and of course one of them will be school-building programs.

Question: Mr. Senator, there are a couple of questions that deal with governance issues, particularly corruption, and I’d like to read them and maybe you can answer them as a whole. How will you handle the Lucio Tan cases of tax evasion and the Marcos wealth? Second, you talk about how different you will be from the present administration, what exactly will you do to make GMA, FG and all pay for their crimes? What will you do with the tong of all congressmen? There’s another one that has to do with encouraging whistle-blowers. So maybe your strategy with dealing with corruption?

Sen. Noynoy Aquino: Can I start with how do I deal with whistle-blowers? It’s a sad fact no, I learned this close to about 3 decades ago, if you catch somebody smuggling, you’re supposed to entitled to, I’m talking about at this point in time, to a reward of 20% when you give information to catch the smugglers. If you facilitate smuggling, I was told by my informants, you get a 10% fee. So I asked this person, why will you participate in something illegal to get 10% when you can go legal? And point the authorities towards the commission of this crime and get a double reward? And the simple answer was: the 10% is kaliwaan, I get it right away, the 20% I will get when I retire and probably 5 years after that. The explanation is you go through so many processes, the seizing, the goods, for instance, of smuggling, the appeals process, auctioning, etc., I don’t think it’s that difficult point for government to advance this reward system to make it an effective reward system, point one.

Point 2, as I keep saying, the judicial reform is so essential. We cannot have a situation where a criminal is not deterred from committing a crime basically because even if he gets to trial, he doesn’t even have a 1 in 5 chance of being convicted. It seems you are the most unlucky individual to be convicted in this country. Now we have so many leads with regards to the first family, statements of assets and liabilities are there, there are dramatic changes in the statements of various members, and obviously, there are various provisions already with our laws, unexplained wealth, is presumed to be ill-gotten. And in that situation, they are tasked to answer for that.

And at the same time, my father was a very…one of my father’s most important advocacies was human rights. Therefore I will ensure that their rights are also protected. Because again, from my father, the true test of a democracy is not your ability to defend the rights of your friends, but more importantly those of your enemies. Because if you allow one group to be oppressed, you are setting up the situation for your group to be oppressed at some point in time. So they will be afforded all of the rights, they will be given all of the opportunities to answer the charges, and like any other citizen, they will be presumed to be innocent until proven guilty.

Now with regards to the Marcos and Lucio Tan cases, and these are subjudice, I will be entering the situation, what, at the second or third decade of litigation? One would hope that there is closure to all, even to those issues. When you go into this country, you can expect adjudication of cases to happen in a timely manner. One of the sad facts, and that’s why judicial reform, again, our stake, has to be improved, is that on average we understand that it takes 6 years to adjudicate a case. Again, it leads to, a condition where it moves everybody not to follow the laws, and that has to stop.

Question: 2 quick questions, Senator. the heart of the Cory Constitution is social justice. The phrase is not anywhere in your platform, as advertised. What are the specifics of your social justice program? And related, that is the question of what will you do June 30, 2010, we do not have a president or vice president who can be proclaimed and we wake up on July 1, 2010, GMA is still the ruler of this country in one form or another?

Sen. Noynoy Aquino: I take exception to the fact that social justice is not in the platform, it is actually embodied in practically all of the 16 points of the platform that we have published on the site. For instance, we want to have the provision of opportunities for everybody to improve themselves, that’s why job generation is first in the list of priorities. What does that mean? I think a father wants best, provide me the job and I’ll take care of my children’s education and health. Education is the second factor, again empowerment, again, opportunities. If you are not educated enough, there are you know, what jobs actually can, what skills do you have, and what jobs can you acquire? Therefore, to have meaningful job generation, the educational support should be there, hence our drive for the 12-year program and even the inclusion of a nursery stage prior to the formal education program.

The ecology, the platform on ecology is very, very simple. We want to translate it so that there’s no confusion among anyone. If there are no forests, there are no watersheds. No watersheds, no water. No water, no food, no food, no people. Are you aware that we have an 8% remaining primary forest cover? But what is more criminal, is up to today, we have not delineated the forestry lines. So when you talk about preserving forests, you don’t even define what the forests is obviously, we are not preserving anything, and that is there also. I’m sorry, I’m missing the second question.

Question: The second questions asks what you will do come June 30, 2010 when we have no elected president and vice president…

Sen. Noynoy Aquino: Number one, the laws on succession are very clear. But can I just tell you, instead of telling all of you our plans, people, let’s not be naive, no? There are talks that certain quarters want to exploit that situation. There are talks of failure of elections or non-proclamation, no-el, so on and so forth. Now, does it behoove me to reveal publicly the plans that we are contemplating at this point in time, and to make our job of preserving this democracy harder by telling our enemies precisely what we will do. I think I will leave my plans close guarded at this point in time and we assure you we are not babes in the woods, and we are ready, as much as possible, we are getting all the necessary info, intelligence and alliances in place, to forestall the grabbing of power by people with purely vested self-interest.

Can I just add, sorry, this has to be really laid in the minds of everybody. We in the Liberal Party say that we are espousing platform-based, issue-based politics. And I am very, very confident that even if I were not in the seat, this occupation is fraught with dangers. I have in the person of my partner, Mar Roxas, somebody who is exactly of like mind, somebody who will pick up if I am unable to finish the job. Therefore, we can assure everybody that will join us, there is a continuity of expectations that are realistic. This is not person-based.

Question: That highlights a weakness in the political system in the Philippines. When we elect you, we don’t automatically elect Sen. Roxas because you’re voted for independently—so it has to be as a team. In the papers recently there was a two-page ad put in by the government claiming all kinds of things: that this president has achieved. It has numerous faults in it. One of the things is that they are very proud of the fact that this economy had been stimulated and helped by the OFWs and their remittances to the Philippines. Those OFWs are Filipinos who have had to leave their families. So society has been hurt badly by it. It’s in fact an economic failure. A failure of government to provide the jobs that they should have had here. What would you do to reverse the situation, to be able to provide the jobs here for Filipinos instead of overseas?

Sen. Noynoy Aquino:: Well, number one, I think I will be lying if I told you that we will have comparable jobs within six years. That I think is an impossibility. But there is I think an obtainable objective of having compensation for people who have skills that have been improved. We can get it to a certain level whereby the increase in wages—although not the same as working abroad—together with the family being in tact, and together with the idea of being a first-class citizen in your own country will be enough to win people away from seeking the greener pasture elsewhere. We believe that the people who have left and who are opting to leave, primarily have no choice. They are political refugees, they are being forced, not for improvement—where it was 20 years ago—but rather even just for survival. And again you’re right. The opportunities have to exist here. Now, when I go around the country, when I go around Metro Manila, the opportunities are so abundant, and all it takes is to do the right thing. For instance, in Surigao City, the table you’re using right now was about the length of this fish—I don’t know what breed of fish that was. But that particular stall in the public market in Surigao City had three of it. The next stall had five of the same size. And the Media asked me in that point in time—this was the senatorial campaign—”Can you raise it up for a photo op?” And of course I’m very macho, and I proceeded to raise it by the head. And the only thing I raised was the head. It was that heavy. And I was saying: “How much would it cost to set up a blast freezing facility here? How much would it cost to turn these things into steaks, train the people to marinate it into that, and export it to countries like Japan or elsewhere, where they’d be thanking us for sharing the bounty … ” Mar Roxas’s home province of Capiz, you go to the beach at low tide, you have a rake, you rake the sand, you get clams. In Metro Manila you get [the fry] of the clams. Why can’t we even get it from Capiz to Metro Manila?

I’m sorry, sometimes I can’t stop, because really, the absurdity, the simplicity of the solutions that are not being implemented really gets to me. The fertilizer scam: The greatest sin is 723 million pesos at least could have started a chain of improving productivity. And for those of you who are not aware, when you plant rice in irrigated lands—and that was the hybrid rice program, that was the fertilizer input program —you can double to quadruple your income for our farmers, especially if it’s irrigated. You can have five harvests in two years. But this current government made the program in 2004 and really turned it into a disaster. We had ten cropping cycles that we lost an opportunity in. But the biggest sin is that even in investigating this alleged crime took four years. That’s why I said ten harvests were lost. So, again, from Masagana ’99 we had a hundred kabans per hectare. Commercially we are already now growing 240 to 320 kabans per hectare. I am told, but I’m still validating this, that UPLB and IRRI are even working further than that. And again: a true fertilizer input program, adequate monitoring, serious credit facilities, can undoubtedly at least make us self-sufficient in rice. We teach agriculturists worldwide. At the end of the day, we import food. That has to stop also.

Question: I think you will welcome this next question. It says: do you already have enough money for the campaign?

Sen. Noynoy Aquino: I will be lying if I tell you we have enough money. But, there is adequate … but of course, it makes the process that much simpler. Can I just share with you this bit of information that was given to me yesterday? I understand there was a tsinoy who went to our headquarters in EDSA the other day. He proceeds to donate a certain amount of money, I was not told how much, but he had a simple request. I’ll say it Tagalog cause it really was… I really made my day that day. He said: “Ito yung pera, bumili kayo ng commercial niyo. Naiinis na ko dito sa isang ‘to.” That by the way is not a joke. It really did happen. At some point in time we will have to report that contribution to Comelec. We’ll have all the details then. But it really made my day.

Question: Two quick questions again, Mr Senator. What will be the roles of your sister Kris and your uncle Peping if you become president? Can you give us a specifically categorical answer on your stand on the Reproductive Health Bill?

Sen. Noynoy Aquino: Kris I think will still be my fashion adviser, which means if she does not like what I’m wearing, she will not keep quiet. I think she even had this barong made. So if she complains I’ll tell her you’re the one who designed it. And that will be the extent. Most of my sisters, and Kris included—Kris is a very busy individual … Anything I ask her, I ask her to attend some ribbon-cutting thing if I become president, that will be an imposition on her time. The three are eagerly looking forward to regaining their anonymity. In fact I’m not even sure if I celebrate my birthday, in the period of incumbency, that they will be present, since it will be a Media event. The role of my Tito Peping: I would be foolish not to seek his wisdom, because of his experience; but at the same time, I will be the one holding the fort. The buck really has to stop with me. I am responsible ultimately for all my actions. Therefore any or all of my decisions will be based on discussion with all the stakeholders as much as possible, but in the end of the day it will be something I can live with in conscience, in what I believe is right regardless on who propounded it.

On reproductive health: Of course, somehow, the secretariat at the senate made it appear that I was an author of the Reproductive Heath Bill. Unfortunately I never authored such a bill. And I intend to interpolate the proposed version before us. The portion that I want to interpolate on is: In government when you have a budget, you don’t use it, you lose it. And there will be provisions of the reproductive health for artificial means of family control. And I want provisions that will ensure that if government hospitals—by cunning, by deceit, by misinformation, etc, are able to expend these budgetary items so that they are replenished, then there’d be penal sanctions for the same.

My position is more properly called Responsible Parenthood; and basically it says, “The state has an obligation to remind parents each child you bring into this world carries with it a certain set of responsibilities: to clothe, to shelter, to educate, etc. That is the extent of what the state should do. So there will be educational programs, campaigns, seminars, symposia, to which we will invite all of the churches to put in their two-cents worth. At the end of the day, the state, in preserving the family, mandated by the constitution has to remind everybody that they will and that they should have these set of responsibilities. The state cannot force as to size, the state cannot force as to method. Now, in fact we will oppose any attempt to do so, because a democratic state has to proceed from individual freedoms.

Question: President Arroyo has intervened in a number of industries: power, oil, cement, pharmaceuticals, food—particularly, sensitively, rice. In state of belief, it was necessary to give people relief from otherwise excessive prices. What would be your policy and action?

Sen. Noynoy Aquino: Mrs Arroyo when she was my professor said that there should be minimal government intervention (Questioner: “She’s got a poor memory …”), because distortions are created in the marketplace. But then again, given that … you know, it proceeds from a governance of survival there’s no logic used except “will it help me retain power or not?” Therefore every decision is faulted from the onset because of that perception. We are hoping that we will get our mandate clear: clear and clearly won, therefore we will have the confidence to embark and ask our people. At this point in time we will have to sacrifice by X amount to get to this level. We want to be transparent in all of the dealings. At the end of the day I assume, god willing we have an intervention for instance in agriculture. You had that 723 million debt really bought fertilizers that were correct. That were delivered at a timely manner at an appropriate price. And perhaps even the, as I mentioned, the purchasing aspect of it be reformed. Things will work out on themselves because we made the right decisions on every aspect. When I pass EDSA, and I guess everybody who passes … can I just a question? When was the last time you remember EDSA as being a smoothly paved road? And this is the premiere road of our National Capital Region. I think most of you will say Highway 54, those who are honest. But when we export our construction companies, our engineers, our designers elsewhere, hindi ba world class? How many of you are aware that in this recent tragedy in Haiti, there were so many Filipinos in a professional basis. And I was surprised that even in Bermuda, the same situation holds: Accountants, lawyers, etc. I always assumed that Bermuda, beneficiary of the British Civil Service System, would have a very efficient bureaucracy, and an efficient professional corps. But it turns out it is again it’s again another area for Filipino expertise to shine. So again, they can do it there, undoubtably they can do it better here, so long as the milieu is present that opportunities for everybody are extant. Nobody is excluded, hence our phrase is “Walang iwanan at walang maiiwan.”

Question: I was told that we have to wind this up after two final questions, that I’d like to read. One is: “How will you handle the issue of pagbabago the Filipino people dreamt and longed for” and “as a transformational president, what key qualities would you bring to this task?”

Sen. Noynoy Aquino: Well, number one, you will have to lead by example. I think in fairness to my mother, at the onset of her term she inherited a government that was corrupt top to bottom, for the most part because the top set the example. Something as cop on the street who was being bribed for a minor traffic violation: he used to demand for his bribe. At the onset of my mom’s term, the phrase was, “Teka, hindi ko hinihingi yan a. Binibigay mo yan, pinipilit mo.” There was a recognition that that was wrong. And after that, something as simple as … I complain about traffic, and Mar in I already have an agreement. If we win, and if traffic isn’t solved, we’ll participate in the traffic. We will not ask of anybody that which we are not ready to do ourselves first. Hopefully we will not talk as much, because we are trying to put a spin on something that is indefensible. And siguro the biggest ambition is in the fourth year, it will just be Mar and I talking because everything is working and it’s boring.

Sana po ay hindi na naming kailangan tutukan minut-minuto, dahil nga maayos na ang systema. E ngayon palang ho nagiipon na kami ng mga kwento just in case magkatotoo po yan. Diba? Lahat naman ng magulo sa mundo nating to ay dahil nga yung systema, hinayaan na kung saan interes ng isang tao, isang grupo lang ang importante. Yun ang gusto naming baguhin.

[Archived from the official campaign web site of President Benigno S. “Noynoy” Aquino III]