MINDORO BULLETIN #1

29 September 2008

When I was in college, filled with the idealism – and the naivete – of youth, I believed that the best way to make a difference in the world was to join the government. After earning my degree in economics, I entered law school believing that it was the best way to prepare myself for the job I ultimately desired: that of legislator.

Over a decade later, the harsh realities of politics have taken the naivete of my youth away. Whereas I used to think that the ballot was the end all and be all of suffrage, now I know that the voice of the people can be muted by machinations of the powerful few. Whereas I used to believe that government was the saviour of the people, I have seen that there are times when it is the government that abuses the efforts and tramples on the hopes of the masses. Whereas I once thought that if you worked hard enough, nothing could get between you and your goals, now I know that there are men – and women – who will attempt to ruin your integrity through rumors and false accusations just to prevent you from moving forward and finding your dreams.

I saw these realities in the last election and, now being in the center of political action as spokesperson of former President Joseph Estrada, I am witness and sometimes even victim to these realities today. It would be easy to give up this life and go back to being a mere private citizen, to live oblivious to the mistakes of the current government. Some of us in the middle class can still afford to live that way. But foregoing vigilance would be tantamount to idly watching our country die. To stand silent on issues such as the ZTE-NBN scam, the Mindanao conflict or the rice crisis would be tantamount to witnessing the pillage of the nation and acquiescing to it.

Indeed, it is tiring to fight for the truth. It is frustrating to hear members of the incumbent government pay lip service to the people, with the audacity of resonating your ideals while in actuality stealing from the government coffers and tricking the masses. To see government signs that read “Ramdam ang Kaunlaran” when poverty levels and experiences of severe and involuntary hunger are at their worst. To hear speeches speaking of economic progress for the Philippines when the quality of life of our people has not improved and in fact has even worsened. To be unable to get to the bottom of the truth on the numerous anomalies of the incumbent administration because of the constant abuse of the concept of executive privilege.

But we cannot afford to be frustrated. Because at the end of the day, this is where we live. The Philippines is our country, the Filipinos our people. And we must do everything in our capacity, be it large or small, to protect the nation from those who abuse it. I am not going to fool myself into believing that I can change the world with my current job. I am but a small voice. But I believe there are many of us who see what is really going on with this Administration. And we will speak the truth. And, hopefully, together, we will be heard and somehow make a difference in the history of our nation.

The realities of today have sunk in but the idealisms of my youth remain. Core values, like love of country, have not changed. And so I continue to speak, I continue to write, as my small contribution to ensuring that our leaders remain dedicated not to themselves but to the nation.

I want to thank Mr. Joe Leuterio for giving me the avenue to do this; space to speak of my ideals and to speak of the truth. I hope that this column will serve as a platform to voice not only my dreams for the Filipino people, especially the Mindorenos, but to serve as a means by which the Mindorenos will express their dreams as well. And I hope that in my humble capacity as writer, I will be able to fulfill that dream of mine in my youth of making a difference.

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News Tracking 23 September 08

23 September 2008

ESTRADA’S ALL OUT WAR: A QUEST FOR PEACE

23 September 2008

SPEECH OF FORMER PRESIDENT JOSEPH E. ESTRADA
UP-HDN FORUM ON GRP-MORO CONFLICT
19 September 2008, 2:00 p.m., U.P. School of Economics Auditorium

ESTRADA’S ALL OUT WAR: A QUEST FOR PEACE

When I became President of the Philippines – with the largest margin ever in the history of Philippine elections, I might add – I felt humbled to have been entrusted with the greatest honor of the highest title in the land and eager to perform what I thought was my last major role. I did not imagine then that I would later on play the role of an ex-convict. That I would be a victim of a power grab and convicted by a Special Court that was only special because it was specially created to convict me; where the justices were handpicked and where the presiding justice was promoted to the Supreme Court immediately after my conviction. But anyway I am a forgiving man – I agree with Mahatma Gandhi who said that only the weak cannot forgive because forgiveness is an attribute of the strong. I know that history will vindicate me.

A Vision for Real Progress

So let’s talk policy. I had a vision for the Filipino people: real progress that would trickle down to the masa. To achieve that vision, I put together a team of learned and competent economists and other advisers, including UP Professors Ben Diokno, Liling Briones and Felipe Medalla – men of unquestionable integrity who comprised my Cabinet, none of whom have ever been involved in or accused of any scam, I might add -  and together we came up with our Plan for Progress for the Philippines. Our economic development plan was to be achieved by two major means: First, by restoring peace and order in the nation; and secondly, by achieving an effective agricultural program that would ensure the food security of the nation.

Through the program Agrikulturang Masa, my administration was able to achieve a record farm output growth of 6% in my first year in office, bringing inflation levels down from 11% in January of 1999 to only a little over 3% by the last quarter of that same year, thereby cushioning the Philippines from the harsh effects of the Asian Financial Crisis. But that’s another story.

More relevant to our discussion today was my vision for peace and order in the whole country. I believe that peace and order is a necessary condition for growth and development. Without peace, there can be no long-term development. If you recall, in the 1950s the Philippines was No. 2 only to Japan. We were ahead of Taiwan, Hong Kong, Malaysia, even South Korea. Today, we are No. 2 only in the field of corruption.

I attribute this failure for progress to the peace and order situation. So when I became President, I made peace and order in the country a top priority: in Metro Manila, where there were rampant incidences of carnapping and kidnapping; in the parts of Luzon and the Vizayas where we have seen the longest running insurgency in the world – an insurgency that has been going on for over fifty years; and in Mindanao, which has seen the longest running secessionist movement in the world – secessionism which has been going on for over thirty years.

To jumpstart the restoration of peace and order in the country, I appointed the then-General Ping Lacson to head the Presidential Anti-Organized Crime Task Force or PAOCTF, with the objective of minimizing if not totally eradicating the incidences of carnapping and kidnapping in the country. He was very successful at this and so for the first time in history, the Philippine National Police achieved a record high of +53% approval rating. I then promoted Lacson to become PNP Chief.

Peace as a Path to Progress: Negotiating in Good Faith

But while we made great progress in achieving peace and order in Metro Manila, the problem in Mindanao persisted. So I became dead set on achieving peace in Mindanao, in order to sooner achieve our goal of making Mindanao the food basket of the country.

As early as August 1998, I issued a Presidential Memorandum of Instruction (MOI) which instructed the GRP Panel to negotiate with the MILF. But even then I was mindful of working within the bounds of the law; and therefore the negotiations were to be conducted specifically within the following parameters: First, that negotiations would be conducted within the mandates of the Constitution and the laws of the land. Second, that it should seek a principled and peaceful resolution with dignity for all concerned.

With the objective of a lasting peace, the GRP-MILF peace talks formally opened in Sultan Kudarat, Maguindanao on October 25, 1999. We were encouraging the MILF then to return to mainstream society through the autonomy program of former President Fidel Ramos.

I want to EMPHASIZE that my administration’s objective was PEACE. And that we went through SEVERAL negotiations and NUMEROUS talks BEFORE we declared an all-out war.

The peace talks and negotiations, in fact, seemed hopeful in the beginning. I sent several members of my cabinet to negotiate with the MILF on different levels, including Robert Aventajado, who was Chief Negotiator, and Agrarian Reform Secretary Horacio ‘Boy’ Morales.

To emphasize that we went through not one, not two, but a SERIES of peace talks, allow me to enumerate some of the major agreements reached:

On February 10, 1999, the panel achieved a Joint GRP-MILF Acknowledgment and Agreement to Reaffirm the Pursuit of Peace;

On February 17, 1999, the parties issued a Joint Statement on the Cessation of Hostilities;

On September 2, 1999, a Statement for Joint Efforts to Pursue Just, Equitable, Lasting Peace signed by both the GRP and the MILF;

On October 6, 1999, a Second Joint GRP-MILF Agreement;

And on October 25, 1999, yet another Opening of Formal Peace Talks.

One would think that with all these peace talks and ceasefires, a lasting peace would have been achieved already. But the MILF, with all due respect, has proven to be an organization that does not remain true to its word; a group that only uses ceasefires to regroup and strengthen their forces. We saw this in November 1999, when the MILF, in spite of a peace agreement, initiated heavy fighting in Central Mindanao and North Cotabato. We saw this again on January 10, 2000, when the MILF, in spite of a peace agreement, took over the Talayaan Municipal Hall in Magindanao. We saw this again on February 25, when the MILF, in spite of a peace agreement, bombed a ferry in Ozamiz City, killing 25 people. We saw this again on March 16, when the MILF, in spite of a peace agreement, occupied the Kauswagan Town Hall. And these are only a few of the hostilities initiated by the MILF in a period of less than six months.  So after all these peace talks and ceasefires, it became clear that this was an organization that would neither respect the Philippine government nor salute the Philippine flag.
But we did not give up. We made one last attempt, on April 27, 2000. The GRP on that day met with the MILF and by midnight had reached an agreement “to get back on the road to peace” and to “normalize the brewing situation in Central Mindanao, Lanao area, and the Narciso Ramos Highway”. (By the way, the Narciso Ramos Highway is a 184-kilometer road that links the cities of Cotabato and Marawi. It had a 17-kilometer stretch where no military vehicles or troops could pass and where commercial vehicles were forced to pay “toll” or what the MILF called ‘zakat’.)

So we achieved another peace agreement with the MILF on that day. But barely six hours after the signing of the document, the MILF initiated hostilities AGAIN on the Narciso Ramos Highway. And then around a week after, they took over the municipal hall of Kauswagan town, killing soldiers and mercilessly burning three children to death.

So many lives have been killed, so many soldiers sacrificed – thousands, maybe even hundreds of thousands because of this conflict with the MILF in Mindanao. Even the government has lost count. Not to mention those who were victims of extortion, kidnappings and even rape.
I had had enough. I knew this violence was never going to end unless I declared an all out war. So bearing in mind our national security and with the conviction that it is the duty of the Commander in Chief to protect the territorial integrity of the country at all costs, I declared an all out war against the MILF.

War as a Means to Peace

I gave the MILF a deadline for the conclusion of the peace talks with the GRP panel: June 30. They would either accept or reject the offer of the Philippines: because the government must negotiate from a position of strength and not of weakness. The MILF refused to recognize the territorial integrity of our nation. So we pursued the war, as a means to finally achieving peace.

There were objections to the war.; and even appeals from a very influential religious leader and a very powerful head of state, asking me to desist from the all-out war. But bearing in mind the future of Mindanao and the country as a whole, I summoned my strength to put my commitment to the Filipino people first and continue my quest for peace. So in spite of the objections, I stood my ground and pursued the all out war because I believed that this war was now the only solution to attaining peace in Mindanao.

We won that war – swiftly and at a modest cost. All in all, the AFP overran 33 minor camps and 13 major camps or a total of 46 camps of the MILF, with breakaway groups of MILF forces withdrawing to different directions and Hashim Salamat fleeing to Malaysia.

On July 10, I personally went to Camp Abubakar to take down the flag of the MILF and hoist the Philippine flag. I believe that was a proud moment in the history of our country; a testament to the fact that we are a nation with one flag, one armed forces and one government. I consider that moment one of the legacies of the Estrada Administration because at that moment our soldiers stood proud, knowing that they had the capacity to end hostilities that had gone on for thirty years, seeing that they could conquer terrorists, and realizing that they had fought for peace for their Mindanao brothers and for the nation.

And that moment was supposed to be the beginning of real progress, of real development in Mindanao. For with the secessionists, extortionists, and terrorists finally out of sight, it signified that investors and tourists would finally come and invest heavily in that part of the Philippines.

Back to Square One – And Worse

Unfortunately, immediately after taking over, the new administration entertained these secessionists again. Soon enough, the kidnappings and extortionist acts returned. The American missionary couple Martin and Gracia Burnham, along with other tourists, were kidnapped in May 2001 and the Abu Sayyaf Group demanded $1 Million in ransom or P20 Million each for the Filipino hostages. The Philippine government has returned to the old pattern of peace talks and ceasefires with kidnap-for-ransom and other hostilities throughout. Just last year, ten marines were beheaded, Father Bossi was abducted, the Davao City airport was bombed; and just this year broadcaster Ces Drilon was kidnapped.
Then just last month, we almost lost a huge portion of Mindanao to the MILF forever, had the media not gotten wind of the slyly processed Memorandum of Agreement on Ancestral Domain. Clearly, the MILF have their own endgame: to have their own state. As Commander in Chief, I would never permit that. To allow the dismemberment of the country is nothing short of treason. Because Mindanao does not belong only to the Bangsamoro and certainly not to the MILF. Mindanao belongs to all Filipinos. And therefore I have been vehemently against the signing of the controversial Memorandum of Agreement on Ancestral Domain because it is not for a President to authorize the dismemberment of our country. On the contrary, it is the solemn duty of the President and Commander in Chief to protect the territorial integrity of the country at all costs.
People talk about the costs of war. The cost of the three-month all-out war in Mindanao was very small compared to the enormous benefits that would be reaped by achieving peace. I saw that even with the expertise of the best economists in the world, Mindanao would not see progress if the secessionist movement continued. And that is why we fought – and won – that all-out war.
Because sometimes men need to wage war in order to achieve peace.  (End.)


ESTRADA PAYS RESPECTS TO FAMILY OF MOTHER WHO KILLED SELF, CHILDREN DUE TO POVERTY

10 September 2008

ESTRADA PAYS RESPECTS TO FAMILY OF MOTHER WHO KILLED SELF, CHILDREN DUE TO POVERTY

Former President Joseph Estrada today attended the wake in Magdalena, Laguna of the woman who killed herself and her three children due to extreme poverty.

According to reports, Janeth Ponce forced her three children to drink liquid toilet bowl cleaner after midnight Monday, September 8, and thereafter drank the poison herself. All four were rushed to the hospital but the three children were declared dead on arrival and Janeth herself passed away shortly afterwards.

Estrada was deeply affected by the news, saying “Hindi ito mangyayari kung tama at tapat ang pamamalakad ng pamahalaan. Siguro ito na ang pinaka masaklap na insidenteng nagpapakita at nagbibigay ng mukha sa kagutumang nararanasan ng ating mga kababayan. I have been in public office for over thirty years. Never have I seen such desperation arise out of poverty, where a mother would kill her children and herself. This is a real tragedy.”

Estrada was especially affected because his father hails from Laguna, making this family his kababayans or townmates. Estrada received calls and reports from several of his kababayans, including former Congressman Benjie Agarao.

Estrada spokesperson Margaux Salcedo added, “This is a tragedy not only for this woman’s family but for the entire country because Janeth represents the many Filipino mothers and women who are forced into such desperate acts for no reason other than poverty.”

Salcedo recalled that this is not the first time that suicide was committed in light of poverty, citing the case of a 12-year old girl who killed herself last year, attributing her suicide to poverty. “You cannot consider this an isolated case because there have already been a few other reported instances of suicide due to poverty. It is miserable and unfortunate but this is the real state of the nation today. Our government, probably because it has been so focused on survival, has obviously failed in truly providing for the poor, so those of us who have the capacity should follow former President’s Estrada’s example and just help in any way we can.”

UNITED OPPOSITION: ADMIN POSTERS SHOULD READ ‘RAMDAM ANG KAHIRAPAN’

United Opposition spokesperson Adel Tamano says the administration’s “Ramdam ang Kaunlaran” posters are the height of insensitivity and should be pulled out.

“Take down GMA’s posters that say ‘Ramdam ang Kaunlaran’,” Tamano said. “When you have mothers killing themselves and their children because of extreme poverty, these posters are the epitome of bad taste and lack of empathy. Is it not a tragedy that the money used for those useless posters could have fed this poor family? Their deaths should make this administration realize that its vaunted economic gains are not reaching the masses and that no amount of propaganda will ever be able to address our very real problems of poverty and corruption.”

Makati Congresswoman Abby Binay added, “There is a big discrepancy between what the administration says and what the masa have to say. It appears that the dole outs and subsidies that the government proclaims to be giving to the poor are not really trickling down to those who need it.”

Uno National Capital Region Secretary-General and San Juan Mayor JV Ejercito for his part said the incident shows “that is the real picture of the country’s state today, the opposite of GMA’s pronouncements that the economy is doing well.”

“Billboads with Gloria’s face proclaiming “Ramdam ang Kaunlaran ” should be replaced with Ramdam ang Kahirapan.” Ejercito quipped.

In her last State of the Nation Address (Sona) GMA promised that the continued Value Added Tax program will help the poor. “Patuloy na gagamitin ng pamahalaan ang lumalago nating yaman upang tulungan ang mga pamilyang naghihirap sa taas ng bilihin, habang nagpupundar upang sanggahan ang bayan sa mga krisis sa hinaharap.” Arroyo said at the time. But Ejercito observed, “It seems Arroyo’s idea of investing in pro-poor programs only involves making over-sized banners to convince the poor that they are not growing hungry. But what else can we expect from a habitual liar?” 


ERAP VISITS DIGOS FOR 8TH ANNIVERSARY

8 September 2008

Didn’t go with the team today to Davao del Sur but heard from Rez Cortez that the reception was very warm.

They landed yesterday in Davao City where PJEE was met by Mayor Duterte. Then proceeded to Tagum then back to Davao. Today they went to Digos for the 8th Anniversary of the City.

Sent out this press release quoting from PJEE’s speech:

ESTRADA VISITS DAVAO FOR DIGOS ANNIVERSARY

Former President Joseph Estrada was very well received today as guest speaker of the 8th Anniversary of Digos City in Davao del Sur. Estrada was invited by Digos Mayor Arsenio Latasa  for the occasion. It was during Estrada’s term that the Municipality of Digos was converted into a component city by virtue of Republic Act No. 8798.

Estrada began by expressing sorrow for the victims of the bomb explosion at the bus passenger terminal in Digos last week. “(Ako ay) nakikiramay sa mga namatayan at napinsala ng insidente ng pagsabog ng isang bomba…”

He then shared with his audience why Mindanao is special to him: “Ang buong Mindanao ay malapit sa aking puso dahil ang Mindanao ang nagbigay sa akin ng mga pinaka malaking boto noong ako ay tumakbo bilang Senador, Vice President at bilang Pangulo.”

He then explained why he maintains that only an all-out war against secessionists will bring peace to Mindanao. Estrada recalled that he was determined to make Mindanao the food basket of the Philippines when he was President – “Ang pangarap ko ay hindi lamang palakasin ang Digos bilang ‘food bowl’ ng Davao del Sur kundi gawin ang buong Mindanao na tunay na food basket ng buong bansang Pilipinas“. As such, he made peace in Mindanao a priority, negotiating with the MILF early on in his administration. However, within three weeks of achieving an agreement, the MILF began attacks again. Estrada recalled, “We were negotiating in good faith but they were not. Napansin ko noon, ginagamit lang ang negosasyon para magpalakas ng puwersa ng MILF. The negotiations, ceasefires and peace talks were used only as opportunities and occasions for regrouping, repositioning of troops, mobilization of resources, arms and personnel and strategic planning for future attacks.”

Estrada said that these tactics are being employed once again by the MILF against the present government and that the government should know better. “(The government is trying) to appease a rebel group that cannot be appeased by any compromise unless they have full control of the territory they claim to belongs to them,” Estrada said in his speech.

Estrada blamed the present government for the absence of peace and the corresponding lack of progress in Mindanao: “Tapos na sana ang giyerang ito noong ako ang Pangulo, at kontrolado na ng gobyerno natin ang mga kampo at mga teritoryong sinakop ng MILF. Kung natuloy ito, sana hindi na peace process ang pinag-uusapan natin ngayon kundi negosyo, trabaho, livelihood, food production at infrastructure development.

Estrada stressed his opposition to the Arroyo administration’s entertaining the possibility of the dismemberment of Mindanao. “We are all Filipinos, whatever faith we profess, whatever dialect we speak, or whatever tribe, ethnic or regional grouping we represent…. (Therefore) we must all submit to only one flag, one nation and one government under one President and Commander-in-Chief who has command over one armed forces….Ang nagmamay-ari ng Mindanao ay ang sambayanang Pilipino. Ang Mindanao ay para sa lahat ng Pilipino…. (It is) the ancestral domain of all who live here, of all who make it their home, of all the coming generations of Filipinos who deserve ownership of this land and make it a true land of promise.” He reiterated the duty of the president as Commander-in-Chief of the Armed Forces of the Philippines to protect and defend the territorial integrity of the country at all costs”.

Estrada ended by pointing out that the war against poverty cannot be won if violence continues in the region: “The real enemy of the Filipino people today is poverty; and the real cause of poverty in Mindanao is the peace and order situation…Poverty cannot be defeated if there is violence … We must unite to fight this menace that has condemned our people to inhuman and impoverished lives.”

Estrada was joined in Digos by former Agrarian Reform Secretary Horacio ‘Boy’ Morales, Makati Mayor Jejomar Binay and former Senate President Ernesto Maceda.


Chavit Singson appointed Deputy National Security Adviser

7 September 2008

We’ve been getting calls to react to the appointment of Singson as Deputy National Security Adviser.

This is my official written statement:

“Considering the delicacy of our national security issues today, in light of the ongoing conflict in Mindanao, perhaps the Administration could have appointed someone with greater experience and credibility in this field. Of course, this is a presidential prerogative so we can only hope, for the sake of our national security and for the sake of resolving the peace crisis in Mindanao, that Mr. Singson will be able to deliver on the job – not only for the Administration’s purposes but for the good of the entire country.”

But the truth is that I’m terrified. I am terrified for Mindanao because of the possible out-of-the-box solutions Singson may propose and implement. I am terrified for Singson’s “enemies”, including Erap, because now Singson officially has it in his capacity to monitor everyone’s movements, and his reputation has it that he won’t keep these powers under the lid. Most of all, I am terrified for the country. We all know how desperate Arroyo is to stay in power. Singson had already gone out on a limb in 2000 to maneuver Arroyo into power in 2001, lashing out like a woman scorned at the Senate trial; now it appears this rook has been moved to ensure protection of the Queen again. This may be mere conjecture but it no longer seems farfetched to believe that Singson has been placed in this post to ensure that Plan A – charter change through forced implementation of the Memorandum of Agreement – still somehow pushes through.

Democracy, watch out.


ALEJANDRO LICHAUCO APPLAUDS ERAP’S STAND OF INDEPENDENCE FROM US INTERVENTION IN MINDANAO

4 September 2008

Erap puts to shame political military leaders on RP dismemberment

By Alejandro Lichauco

ANALYSIS

09/04/2008

The real problem in Mindanao isn’t the MILF. The real problem is the US interventionism there and its involvement in a project obviously designed to dismember the national territory. That is the problem which no one — repeat, no one — in the political and military establishment has dared to bring out in the open, discuss and denounce. That in spite of the fact that US involvement in project dismemberment has been widely exposed by media as well as by the report of the United States Institute of Peace (USIP), a quasi-governmental agency created by US government to serve as “broker” in the peace talks between the government and the MILF.

At some point in the negotiations, however, the US government decided to intervene directly and the USIP suddenly found itself out of a job. In the words of that agency’s report, “(US) embassy officials began meeting directly with MILF leaders and believed that USIP was no longer needed as an intermediary.”

There isn’t any question that the US embassy was involved in the finalization of the agreement between the Government and the MILF, an impression reinforced and clinched by the presence of the US ambassador on the occasion of the scheduled signing in Malaysia.

When the matter blew up following the release of the USIP report and various columns in the nation’s broadsheets, the US embassy was caught with its hand in the cookie jar. The matter, of course, wouldn’t have turned out to be the scandal that it did if only the agreement hadn’t explicitly and unmistakably provided for the outright dismemberment of Mindanao and the creation of a separate Bangsamoro state.

As it turned out, the agreement wasn’t really all about promoting peace in Mindanao but in creating what would have amounted to was a US “moro” puppet state. Such a US puppet state has been known to be a long-standing dream of the US government and it had always been a dream then with much more reason it should be a dream now considering geopolitical developments in the world and in the region in particular.

At any rate, of one thing we can be sure. The open involvement and activities of the US ambassador in Mindanao affairs as well as the USIP report reinforced by the presence of the US ambassador in Malaysia for the scheduled signing of the agreement constituted more than conclusive evidence of America’s outright intervention in Philippine affairs — and, far more serious than mere intervention, in its outright complicity in a plot to dismember the republic. In any country, these developments would have automatically stirred a hurricane of rage, protest and denunciation, of the US government, particularly among the nation’s political and military leaders. It would have led to nothing less than a demand for the recall of the US ambassador. But no such thing happened. Nothing but a resounding, deafening, silence on the part of the nation’s political and military officialdom.

To compound matters, the US ambassador has openly taken issues with the official position of the Philippine government to go all out against the MILF renegades and instead openly suggested her preference that “negotiations be tried instead.” And if that wasn’t really the official position of the Philippine government, that at least was the stated position of former President Joseph Estrada, and certainly of the overwhelming body of public opinion in this country.

Estrada didn’t lose time openly slapping down the foreign power because Mindanao isn’t its business nor the business of its government. “No foreign power should interfere in our domestic problems, it is solely our own, we are the ones who will have to think of a way to resolve it and we should not be beholden to anyone.”

If Erap’s open reprimand of the foreign powers had a distinctive ring, it was because no one — repeat and repeat and repeat, no one — in the political and military officialdom had the guts to do it. Dared to openly berate the US ambassador, which no Filipino politician in living memory (except for the late Claro M. Recto) had dared to do.

And precisely because Erap was alone in doing it, he has stood out in a very special way, marking him off from just about everyone with either a claim or aspiration to lead this nation and be leader of the Filipino people.

In the context of a political and military reality distinguished by the mortal fear and servility with which the political and military officialdom approach the US embassy Erap’s open castigation of the foreign power elevates him as the only Filipino political figure deserving of the presidency. He may have his flaws and these are many but in one stroke he has redeemed himself from all those flaws. This piece hazards to say that Mindanao and Erap’s response to the US ambassador’s naked interventionism virtually assure him — and him alone — of the opening to succeed GMA, either through elections or outright coup.

And if through a coup, who else will the military install?


RE AFP MODERNIZATION FUND

4 September 2008

Erap: FVR borrowed ‘modernization’ fund
Postscript By Federico D. Pascual Jr.
Thursday, September 4, 2008

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MODERN?: From Polk Street, comes now former President Joseph “Erap” Estrada debunking a claim of former President Fidel V. Ramos in Postscript that he left with Mr. Estrada (his successor) P5.484 billion for the “modernization” of the armed forces.

Mr. Estrada said Mr. Ramos did not use the trust fund from the sale of Fort Bonifacio for the armed forces — as dictated by law — but borrowed it for window-dressing his yearend financial report to minimize an expected budget deficit.

The government is now scrounging around for funds for AFP “modernization,” a euphemism for acquiring a few planes, ships, vehicles and other materiel rebuilt like new and polished to showroom quality.

The pathetic state of the armed forces has been brought to the fore by the campaign against better equipped and highly motivated ground fighters of the secessionist Moro Islamic Liberation Front in Mindanao.

As if to stress the obvious, one of two overworked C-130 Hercules transport planes of the air force plunged into the Davao Gulf last Aug. 26, killing its two pilots and a crew of seven. There are three other C-130’s, but they are under repair.

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MISSING FUNDS: Many people remember that the Ramos administration netted close to P8 billion from the sale of Fort Bonifacio in 1995 to Fort Bonifacio Development Corp., the buyers’ group organized by Metro Pacific.

Under RA 7898, the proceeds must go to a Trust Fund for the AFP. But until now, nobody seems to know what happened to the P8 billion, or who should go to jail for misappropriating it.

At P34,000 per square meter, the 240-hectare prime property should gross P81.6 billion. But only about P30,359,605,589 has been admitted by Mr. Ramos as having been collected and P5.484 billion supposedly left by him to his successor.

If Malacañang or the Commission on Audit is not interested in getting to the bottom of the mess, maybe a Senate committee should flush out the facts and figures.

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REACTION: Mr. Estrada would not take lying down any attempt to make him the fall guy.

Reacting to our last Postscript (Aug. 28) wherein Ramos was quoted as saying he left P5.484 billion with Mr. Estrada, the latter e-mailed us this recollection of former Budget Secretary Ben Diokno:

1. The P5.484 billion for the AFPMF from the sale of Fort Bonifacio was placed by the Bureau of Treasury in a Special Account in the General Fund. The law says that the share for AFPMF should be placed in a Trust Account.

2. The difference between the two modes is important. The first mode — Special Account — allows the Executive Department to use the money to finance any item in the budget. The Ramos administration used the proceeds to finance the national budget. Operationally, the Ramos administration “borrowed” money from the Special Account to finance government operations or finance the deficit rather than float treasury bills. Effectively, the fund in the Special Account was depleted. On paper, however, the P5.5-billion appears to be intact. But should the AFP need the money to implement its modernization program, the Treasury has to refinance what was “borrowed” — either by getting money from revenues collected or by floating T-bills. The second mode restricts the use of the fund for the modernization of the AFP. Interest on the money deposited in the Trust Account will form part of the Account.

3. On April 30, 1998, the AFP advised the Office of the President of its readiness to manage the AFPMF trust fund. It is in the interest of the military establishment to have the trust fund under its control. First, it assures them that the money for AFP modernization is intact and available. Second, interests of the trust fund form part of the fund; the fund will continue to grow even if the modernization program is delayed. DBM and other fiscal authorities have other motives. By not releasing P5.5-billion to AFP, the Ramos administration was able to window-dress the deficit — reducing the budget deficit by P5.5 billion.

4. The Estrada administration had to postpone the release of the modernization fund to AFP for two reasons. First, when Estrada assumed office, the Philippine economy was in the midst of the Asian financial crisis. There was a need to jump-start the slowing economy by creating more jobs and increasing economic activities in urban centers and rural areas. Studies show that the contribution of defense spending to economic growth and development is, at best, neutral and, at worst, negative. Second, the AFP leadership at that time had yet to decide on the size, specific content, and financial requirements of the modernization program. As I recall, and this personal recollection could be supported by minutes of proceedings of committee hearings in the House and the Senate, the major divisions of the military establishment (GHQ, Army, Navy, Air Force) at the time had yet to decide how the Modernization Fund would be allocated and prioritized.

5. But on May 29, 2000, DBM issued the Special Allotment Release Order (SARO) to the AFP in the amount of P5.484 billion. And with subsequent releases, we backed up the SARO with several NCAs based on specific proposals and progress in the utilization of the Fund.

Bottom line: Mr. Ramos “borrowed” money from the proceeds of the sale of the Bonifacio property earmarked for AFP modernization to finance his other projects. Mr. Estrada restored the money that Mr. Ramos “borrowed” from the modernization fund, and released the P5.484 billion fund in full on May 20, 2000.