Tuesday, 27 July 2010 17:07 Public Information Service
Unit
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 through service to the public.
In the soonest possible time, we will convene the Legislative
Executive Development Advisory Council (LEDAC) to discuss the
important bills that needs to be addressed. Rest assured that
I will keep an open mind in order for our relationship to be true
to our people.
We will push for the Fiscal Responsibility Bill, where we cannot
push for bills that will need funding, rather only those that
have already identified its sources 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 this law in order to
make it 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 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, which
sprung upon the people an agreement reached without consultation
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 during
the first one hundred days of my administration as your president.
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 to call 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 scent of
gun powder still hangs in the air. I call on everyone concerned
not to waste a good opportunity to rally behind one goal 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 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 the cudgels in policing your own.
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 discourse with the public.
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 meddling. 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.
I believe that God and the people have brought us to where we
are now. While we focus on uplifting the lives of our fellow men,
we are assured of blessings and guidance from God Almighty. If
we truly believe that we have God on our side, is there anything
that we cannot endure?
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.
Thank you very much.
