We erroneously reported that Ambassador Alfonso Yuchengco has declined his nomination to the Consultative Commission (Con-Com).

The budget proposed by the administration reflects the resources needed to sustain the pro-poor agenda of the President, build the infrastructure needed to attract investments, stimulate commerce, generate jobs and expand social services to the most underprivileged.

The North Rail project was done in good faith and in the national interest.

This is part of the President’s urgent agenda to decongest Metro Manila.

We respect the position of our critics on the handling of mass actions.

But let it be clear that calibrated preemptive response is limited to the stronger enforcement of laws and ordinances.

It does not unduly curtail constitutional liberties. Neither does it entail nor portend the exercise of extraordinary powers.

We would hope that our critics would also note the widespread opinion that the chronic political noise is sabotaging the economy and projecting the Philippines in a bad light to investors.

Malacanang said today that the P1.053-trillion proposed 2006 budget reflects the resources needed to sustain the pro-poor agenda of President Gloria Macapagal-Arroyo.

Press Secretary and Presidential Spokesman Ignacio R. Bunye said in a statement that the unprecedented budget proposal, which will be tackled by the House Appropriations Committee starting today, will also build the infrastructure needed to attract investments, stimulate commerce, generate jobs and expand social services to the most underprivileged.

"We expect to raise the resources to fund the budget through our stepped-up revenue-generating measures, particularly the e-VAT law," he said.

Bunye was reacting to certain lawmakers’ doubts that the government may not be able to fund the budget considering the present situation of the economy.

The Palace, however, was quick to point out that the budget can be funded by internal revenues as promised by the President in her budget message to Congress.

The President has promised to whip revenue agencies to collect the promised P968.6 billion next year to keep net government borrowings to P125 billion.

The record-high 2006 budget was submitted to Congress by Malacanang last August 24, a month after the President’s State-of-the-Nation Address (SONA) on July 25.

Malacanang today debunked allegations of overpricing of the North Rail project, saying the modern, multi-million-dollar railway system funded by China under a government-to-government loan agreement is above-board.

"The North Rail project was done in good faith and in the national interest. This is part of the President’s urgent agenda to decongest Metro Manila," Press Secretary Ignacio R. Bunye said this morning.

He added that the project, which will link Metro Manila and Northern Luzon, is on schedule and will be pursued to its completion.

Malacanang pointed out that modernization of the railway system will help decongest Metro Manila, make travel convenient to areas served by the project and accelerate economic development of the Luzon countryside.

It will also ease vehicular traffic along MacArthur Highway as commuters would have an alternate, faster and cheaper mode of transportation.

Funding for the project comes from a $400 million soft loan from the Beijing government with a 20-year repayment schedule. Covered by the loan is the construction of the entire railway system, including rails, stations and a double track, not a single track system as erroneously reported in media.

The National Economic and Development Authority (NEDA) has defended the cost of the project, saying there could not be an overpricing of a "government-to-government loan arrangement" similar to North Rail system.

"The government fully understands the feasibility and viability of the project, which was the basis of the repayment plan drawn up," a NEDA official said.

The original North Rail project plan was approved in 1998 and was supposed to be funded by the Japanese government but because of right-of-way problems along the tracks the needed foreign financing could not be secured.

Following the loan agreement with China, work on the project immediately started with the relocation of 2,000 squatters along the 1.7-kilometer stretch of the rail line cutting across four densely populated barangays in Malabon City.

The project is under the overall supervision of Vice President Noli de Castro, who is also chairman of the Housing and Urban Development Coordinating Council (HUDCC).

Department of Education (DepEd) Undersecretary Juan Miguel Luz was not removed nor his services terminated.

Press Secretary and Presidential Spokesman Ignacio R. Bunye made this clarification today in reaction to reports that Luz’s removal from office was the offshoot of his refusal to honor three postdated checks Malacanang had issued for the scholarship program of an anti-impeachment lawmaker from Zambales.

"He was not removed; he was not terminated," Bunye told Malacanang reporters in his regular press briefing this afternoon.

He said Executive Secretary Eduardo Ermita would meet with Undersecretary Luz this afternoon to clarify things on the issue.

Bunye also clarified that there is no truth to allegations that President Gloria Macapagal–Arroyo has started to crack down on her political foes by filing cases against them.

"There is no move to that effect. The President and the agencies of the government are only enforcing the rules and regulations related to existing laws," Bunye said.

Press Secretary Ignacio R. Bunye today clarified that National Security Adviser Norberto Gonzales is merely on medical leave and has not been replaced.

Bunye, who is also Presidential Spokesman, made the clarification during his regular media briefing in Malacanang to dispel speculations that Gonzales has been removed from his post.

The Press Secretary said Gonzales’ deputies are ably filling up his shoes during his temporary absence.

Gonzales is currently confined at the Philippine Heart Center (PHC) where he was taken immediately after he was grilled by the Senate Blue Ribbon committee, chaired by Senator Joker Arroyo, during its Sept. 21 hearing on the controversial Venable LLP lobby contract.

During the hearing, Gonzales’ blood pressure shot up to 160/120 and his blood sugar became unstable.

"He still has his position. Let us just wait for the results of his medical tests to determine if he is still fit for the job," Bunye said.

Senators cited Gonzales for contempt and placed him under Senate custody for not giving them straightforward answers they wanted relative to the Venable contract.

Executive Secretary Eduardo Ermita, in a letter to Senator Arroyo, has formally asked the Senate to lift the contempt order and release Gonzales.

ILIGAN CITY – President Gloria Macapagal-Arroyo today presided over the rites that formally declared her ancestral home in Timoga, Barangay Buru-un in this city as a heritage site and its formal turnover to the Iligan City government.

President Arroyo’s visit to Iligan City today was her first since she won the May 2004 presidential elections. She came to meet with relatives and old friends and to witness the rites formally declaring and dedicating her ancestral home here as a heritage site.

Residents of this city gave a rousing homecoming welcome to the Chief Executive whom they consider as Iligan City’s most prominent daughter.

Arriving at about 11:30 this morning to cheers and applauses from her fellow Iliganons who lined the streets from where her helicopter had landed at the Global Steel Works International, Inc. (formerly National Steel Corporation) compound, President Arroyo looked calm and relaxed in her trademark Marian blue suit as she gamely waved her hellos to her "kababayans."

She was met by Iligan City Mayor Lawrence Cruz, Lanao del Norte 1st District Rep. Cirilo Alipio Badelles, GSII president Sushant Das, and operations manager Bhimsen Mohnani, Task Force Ranao commander Brig. Gen. Ben Dolorfino, Philippine National Police-10 Regional Director Chief Supt. Dante Tejada and Presidential Assistant for Northern Mindanao Pacifico Pupos.

The President then presided over the unveiling of the marker declaring her family’s ancestral home a heritage house. The marker was blessed by Monsignor Ramon Fruto after which National Historical Institute (NHI) Executive Director Ludovico Badoy turned over the Certificate of Transfer of the property to Mayor Cruz.

Built in 1950, the Macapagal-Macareag house was declared by the NHI as "the house that exemplified the architecture of the 1950s, not only reflecting the ingenuity and artistry of its builders but also a significant phase in the development of Philippine domestic architecture," in its Resolution No. 10, series of 2002.

"The house and land on which it stands have been donated to the City Government of Iligan and today serves as a museum for the Macapagal-Macaraeg family," the NHI said.

During the dedication rites, the President also administered the oaths of office to 20 officers of the Kababayan Riders Association for New Cultural Harmony and Order (KARANCHO) led by its Secretary General Ted Khan Juanite.

Established in 1996 at Tagum, Davao, Karancho is a civic-oriented group that aims to assist those in need of emergency assistance. It also serves as a "link" between the police and the people.

Juanite said KARANCHO now has about 40,000 members in its 300 chapters nationwide.

He added that President Arroyo has been a staunch supporter of KARANCHO and is in fact "a member and legendary inspiration to all Karanchos in the country."

Malacanang reiterated today that the government’s calibrated preemptive response to street protests "does not unduly curtail constitutional liberties."

Press Secretary Ignacio R. Bunye said that in instituting the calibrated preemptive response in place of the previous maximum tolerance policy, the government is keeping "its option of enforcing all laws that will protect commerce, mobility, jobs, livelihood and the overall peace of mind of the community of the streets."

At the same time, Bunye, who is also the Presidential Spokesman, denied the new policy was a prelude to the declaration of emergency rule. "There is no need for martial powers and no intention at all to use them," he said.

"We respect the position of our critics on the handling of mass actions. But let it be clear that calibrated preemptive response is limited to the stronger enforcement of laws and ordinances," Bunye said in a statement.

"It does not unduly curtail constitutional liberties. Neither does it entail nor portend the exercise of extraordinary powers," he added.

ILIGAN CITY – President Gloria Macapagal-Arroyo today paid honors and presided over the awards ceremonies for the Ten Outstanding Iliganons (TOIL) in this Northern Mindanao city.

Assisted by Iligan City Mayor Lawrence Cruz and Lanao del Norte 1st District Rep. Cirilo Alipio Badelles, President Arroyo personally handed out trophies to the awardees who were publicly recognized for their outstanding and exceptional achievements in their respective fields, in ceremonies held at the 7th Floor of the Elena Tower here.

There are actually six awardees only for this year -- Professor Marcelo Salazar, school administration; Police Supt. Rene Orbe, law enforcement; Nikki Bacolod, arts and music; Professor Christian Aguado, performing arts; Susan Unde, education; and Macadato Paporo, agriculture.

The TOIL awards recognize the outstanding achievements of Iliganons whose achievements have significantly benefited the community and country. The TOIL search was started in 1993.

President Arroyo herself was a TOIL honoree, having been awardee in 1998. Her award was personally received by presidential son, Pampanga 2nd District Rep. Mikey Arroyo on June 16, 1998.

During the awards ceremonies today, various sectors here also took advantage of the occasion to present their resolutions of support for the President.

Among the groups who presented their manifestation of support were the Association of Barangay Chairmen led by Bagong Silang Barangay Captain Priscilla Cuevas, the Federation of Purok presidents led by Simeon Clerigo and the private business group led by Medardo Hermano.

They all pledged their unwavering and unconditional support for the Constitution and the presidency of Mrs. Arroyo.

After the awarding rites, the President paid a visit to the city’s cathedral named after St. Michael, the patron saint of Iligan whose feast day will be celebrated on Sept. 29.

Apostolic Administrator Monsignor Ramon Fruto and Vicar General and Parish Priest Monsignor Jemar Vera Cruz welcomed Mrs. Arroyo.

The Philippine Heart Center released this afternoon the results of the coronary angiogram test on National Security Adviser, Secretary Norberto Gonzales.

The report on the medical procedure was signed by Dr. Lutgardo D. Torres, PHC medical director, who is Gonzales’ attending physician himself.

Following is the full text of the report:

"There is a marked diffuse narrowing of the left main Coronary Artery by almost 50%. The length of this vessel is 2 centimeters long. It divided into two major branches wherein one of the two important branches is further narrowed by almost 80% and very critical. It did not open up when given drug to remove the spasm. During the initial injection of contrast media, the blood pressure went down, hence any balloon angioplasty will not be tolerated by the patient.

"The right coronary artery is normal in size but there was delay in the flow of the contrast material.

"Furthermore, the left ventricular cavity was demonstrated to be very small due to marked hypertrophy and thickness of heart muscle (CARDIOMYOPATHY) which makes his heart condition more critical than expected.