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27 SEPTEMBER 2005
bulet-arow.gif (856 bytes) Caretaker shares fond memories of PGMA's Iligan ancestral home
bulet-arow.gif (856 bytes) PGMA congratulates new Miss Int'l beauty queen
bulet-arow.gif (856 bytes) Statement of Secretary Ignacio R. Bunye: On IRA
bulet-arow.gif (856 bytes) Statement of Secretary Ignacio R. Bunye: On the economy
bulet-arow.gif (856 bytes) LGU empowerment a continuing process -- Malacaņang
bulet-arow.gif (856 bytes) P5 billion earmarked for poor LGUs in proposed 2006 national budget
bulet-arow.gif (856 bytes) PGMA commends lawmen behind the arrest of the notorious Waray KFR gang
bulet-arow.gif (856 bytes) Improved fiscal position, fast economic growth seen in 2006
bulet-arow.gif (856 bytes) Recto predicts investments, businesses to flourish in 2 years
bulet-arow.gif (856 bytes) 8 percent increase in wages of gov't workers included in proposed 2006 budget
bulet-arow.gif (856 bytes) Ermita: Like Cabinet secretaries, undersecretaries also serve at the pleasure of the President
bulet-arow.gif (856 bytes) PGMA to check on Malate school enercon program
bulet-arow.gif (856 bytes) ConCom members to meet and start work Wednesday

Caretaker shares fond memories of PGMA's Iligan ancestral home

ILIGAN CITY -- Internal House Affairs Office (IHAO) Director Gloria Villaraza has only fond memories of President Gloria Macapagal Arroyo’s ancestral home located at Timoga, Barangay Buru-un here.

The President’s ancestral home in this northern Mindanao city was formally declared and dedicated as a heritage site by the National Historical Institute on Monday, September 26, 2005. The Chief Executive witnessed the event.

Having served as caretaker of said house since the term of President Diosdado Macapagal, Villaraza said her fondest memories of the Macapagal-Macaraeg household were of the times she and President Arroyo, then a little girl, would swim in the river just at the back of the house or when they would play home-making or "bahay-bahayan."

"When we were younger, we would take a fallen banana tree trunk and ride it down the river at the back of our house until the river would meet the sea," Villaraza recalls.

"Other times, we would play house by pretending to be one family. We would pretend that the grass leaves we gathered were vegetables and pretend to cook them in one of our clay pots. Then, when the "vegetables" were cooked, we’d pretend to eat them," Villaraza said with a wide easy smile painted across her face.

She also recalled that in her private time, the President as a young girl, would settle down and read anything she could get her hands on – mostly books and magazines.

"When the President had nothing to do then, she would sit down and read. She would read books or magazines or anything she could get her hands on," she recalled.

Villaraza said she is proud of the rare opportunity to have served two Presidents who occupied the same house. "Its really an honor," she stressed.

Aside from the house, which according to the National Historical Institute, "exemplifies the architectural prominence of the 1950s," there is a bronze statue of the late President Diosdado Macapagal pushing a younger Gloria on a swing that catches one’s attention.

According to Villaraza, the bronze statue representation was a replica of an actual swing the family owned during their younger years.

She said the statue shows just how much of a daddy’s girl President Arroyo was and how much of a doting father the late President Diodado Macapagal had been.

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PGMA congratulates new Miss Int'l beauty queen

President Gloria Macapagal-Arroyo extended her and the Filipino people’s felicitations to Miss Philippines Precious Lara Quigaman, winner of the prestigious 2005 Miss International beauty pageant held in Tokyo.

"On behalf of all Filipinos, I congratulate Precious Lara Quigaman for winning the Miss International title. She joins a long list of Filipinas who have brought our country honor and prestige, not only for their beauty, but also for their intelligence, charm and grace," the President said in a statement released by Malacanang immediately after the crowning ceremonies at the Japanese capital last night.

"May she serve as a responsible role model for young women in our country," she added.

Quigaman, a 22-year-old fashion model, is the fourth Filipina to win the Miss International title. The first was Gemma Cruz in 1965, followed by Aurora Pijuan in 1970, and Melanie Marquez in 1979.

The new Miss International won the Binibining Pilipinas pageant last March.

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Statement of Secretary Ignacio R. Bunye: On IRA

The empowerment of local government units is a continuing process and we need to beef up their resources for development, social services and peace and order.

The Internal Revenue Allotment (IRA) is inadequate in many areas, and this is the rationale behind the P8 billion we are seeking from Congress.

This is not about partisanship. This is about building the capacity of LGUs to generate investments, enterprise and jobs.

All disbursements by LGUs will be done with transparency and accountability.

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Statement of Secretary Ignacio R. Bunye: On the economy

We appreciate the constancy and optimism of PCCI (Philippine Chamber of Commerce and Industry) over our collective efforts to improve and strengthen the economy.

Such unwavering confidence is an affirmation that we should devote our energies to inviting investments, encouraging enterprise and creating new jobs rather than in engaging in noisy politics.

We are encouraged to work double time for fiscal stability, stronger infrastructure and social equity.

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LGU empowerment a continuing process -- Malacaņang

Malacanang said today that the empowerment of local government units (LGUs) is a continuing process, pointing out that there is a need to beef up their resources for development, social services and peace and order.

Press Secretary Ignacio R. Bunye said in a statement today that since the Internal Revenue Allotment (IRA) is inadequate in many areas, the government deemed it fit to seek P8 billion from Congress in the proposed P1.053 trillion budget proposal for 2006.

"This is not about partisanship. This is about building the capacity of LGUs to generate investments, enterprise and jobs," he said.

Bunye made the pronouncements in reaction to criticisms that there is partisanship in the way Malacanang allocated P8 billion in "pork" to LGUs and only P6.2 billion for congressmen and senators.

The President, in her budget message to Congress, sought the approval of her requests of P5 billion for the Kilos Asenso (Move for Progress) support fund and P3 billion for the Kalayaan Barangay (Barangay Freedom) program fund.

The President explained to the congressmen that the program requires the component members to implement action projects, such as the building of farm-to-market roads and potable water systems in their respective communities, down to sitios.

The funds, she said, will enable the national government to provide counterpart funds for the LGU-led effort.

Bunye assured that all disbursements by LGUs would be done with transparency and accountability.

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P5 billion earmarked for poor LGUs in proposed 2006 national budget

Department of Budget and Management (DBM) Secretary Romulo L. Neri said today that the proposed P1.053 trillion 2006 national budget includes a P5-billion Kilos Asenso program, a grassroots-based productivity movement initiated by local government units (LGUs) to make sure that the budget trickles down to the poor.

The Budget chief also said another P3 billion was incorporated in the proposed budget for the development of conflict-affected barangays to be identified by the Department of National Defense (DND) and the Office of the Presidential Adviser on the Peace Process (OPAPP).

Neri presented the proposed 2006 budget during the 104th Legislative-Executive Development Advisory Council (LEDAC) meeting this morning at the Aguinaldo State Dining Room in Malacanang.

"The President wants to make sure that our budget really reach the poorest of the poor," Neri said.

The Kilos Asenso program was unanimously supported by all organizations of local officials in support of President Gloria Macapagal-Arroyo’s 10-point agenda and the Medium-Term Philippine Development Plan (MTPDP), Neri said.

He said the P5 billion represents the government counterpart fund for the LGUs’ development projects such as farm-to-market roads, water systems, fertilizers, and funds for livelihood, "all to improve the productivity of the barangay."

"It is not a pork barrel, it is more of a counterparting fund. Hindi si Presidente ang magsasabi kung saan ilalagay unlike yung congressman sila ang nagsasabi kung saan ilalagay yung pork barrel nila. We are just counterparting based on the projects proposed by the LGUs," Neri said.

The Kilos Asenso program would be spread out to ensure that the poorest LGUs are benefited, he added.

Neri said he and Bohol Governor Erico Aumentado, president of the League of Governors of the Philippines (LGP), would issue a guideline identifying and prioritizing the poorest among the LGUs and how the Kilos Asenso fund would be used.

"Governor Aumentado has expressed his sincere thanks to the President for putting this in the budget proposal," he said.

The DND and OPAPP would identify about 500 conflict-affected barangays and introduce development projects such as farm-to-market roads, school buildings, and water systems.

He added that during the LEDAC meeting, members of both houses of Congress agreed to expedite their deliberations on the proposed 2006 budget.

"Because they have only about three months, ang target nila before January ay maipasa na ang budget na ito," Neri said.

If Congress passes the 2006 budget by December, Neri said the eight percent increase in the salary of government employees would also be given starting January next year.

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PGMA commends lawmen behind the arrest of the notorious Waray KFR gang

President Gloria Macapagal-Arroyo today commended the key operatives of the Police Anti-Crime and Emergency Response (PACER) and PNP Intelligence Group (PNP-IG) who plotted and effected the arrest of the leader and members of the notorious Waray criminal gang.

The Waray gang has been tagged as the crime group behind the series of celebrated kidnap-for-ransom (KFR) and highway robbery cases in Metro Manila and nearby regions for the past several years.

The President presented this afternoon to media the arrested criminal suspects at the Presidential Security Group headquarters at Malacanang Park.

"I would like to again congratulate the members of our anti-kidnapping task force for yet another achievement. And I’m sure this is something many people feel justice is being done somehow because this is the group that has victimized so many over many years," the President said.

In her brief remarks, the President noted that even when she was still senator years back, she had already heard the name of the notorious Waray crime group.

The group’s leader was identified as Hector Cornista aka Toyay/Eng, 37. His confederates were Renato Superable, 28; Alvin Labra y Cornista, 22, the alleged financier; Dominador Ricardo Cornista, 22, chief planner; and Rogelio Mendoza y Samson. All suspects are from Barangay Sta. Cruz in Jaro, Leyte.

In a press conference that followed, Interior Secretary Angelo Reyes said the suspects were arrested by virtue of warrants of arrest issued by Judge Baclig of Branch 76 of the Quezon City Regional Trial Court for a string of kidnapping and highway robbery cases pending before the same court sala.

Reyes said the suspects were arrested in simultaneous police operations in Antipolo City, Valenzuela City, Novaliches in Quezon City, Tanauan City in Batangas and San Francisco in Quezon Province.

Hector Cornista, leader of the group, carries a P5-million reward on his head, while Superable, the gunman in the slaying of Betty Chua Sy, carries a P1-million price tag.

The suspects were allegedly involved in at least 16 KFR cases in Metro Manila and Regions 3, 4, 5 and 8. They were also reportedly involved in the celebrated kidnap-slaying of Betty Chua Sy, a Chinese-Filipino Coca-Cola executive on November 17, 2003.

President Arroyo personally awarded the PNP Heroism Medals to the lawmen who effected the arrest of the suspects.

The arresting officers in five groups were led by Supt. Rosauro Acio, Chief Inspector Simnar Gran, Senior Inspector Ronnie Visco, Senior Police Officer 4 Eufrocino Maunahan and Police Officer 1 Frederick Tupaz.

Among the group’s kidnap-for-ransom victims were Arturo Pecunes (2005), Carrie Choa (2005), William Uy (2003), Wilbert Uy (2003), Vicente Ty (2003), Josephine Chua (2004), Daniel Ong (2003), Antonio Tanchay (2002), Edwin Tan (2003), Boromeo Ang (2003), Arcanghel Lim (2003), John Macatangay (2003), Genlina Dy (2003), Erwin Manikis (2003) and Johnny Corpuz and Mike Batuigas (September 25, 2005),

During the press conference, Secretary Reyes and PNP Director General Arturo Lomibao handed over the reward money amounting P1.5 million to the two informants who provided the information that led to the arrest of Cornista and Superable and their other gang members.

The informants hid their identities by wearing masks.

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Improved fiscal position, fast economic growth seen in 2006

The government’s fiscal position is expected to improve from 3.4 percent of gross domestic product (GDP) in 2005 to 2.1 percent of GDP in 2006, while revenues are projected to reach P968.6 billion next year, a 23.7 percent growth over the 2005 level, according to Budget and Management Secretary Romulo L. Neri.

In his presentation of the proposed 2006 national budget during the 104th Legislative-Executive Development Advisory Council (LEDAC) meeting this morning in Malacanang, Neri said the improvement in the national government’s fiscal position is premised on the implementation of the reformed Value Added Tax (VAT) Law and the assumption that about 70 percent of the revenue to be generated by VAT would be utilized to reduce the budget deficit and upgrade public services.

"The improvement in the (national government’s) fiscal position will be critical to the reduction in the overall public sector deficit to 2.1 percent of GDP from 3.4 percent in 2005," he said.

President Gloria Macapagal-Arroyo called the LEDAC meeting to discuss the proposed 2006 national budget. Present during the meeting were congressional leaders led by Senate President Franklin Drilon and House Speaker Jose de Venecia Jr. and members of the Cabinet.

The proposed national budget of P1.053 trillion is higher by P134.7 billion, or 14.7 percent over the 2005 appropriation. Sixty percent of the budgetary increment or P81.6 billion will be allocated for government departments and government-owned and controlled corporations (GOCCs), 19 percent or P25.2 billion would be set aside for local government units (LGUs), and 21 percent or P27.9 billion for interest payments and net lending.

"Our budget proposal continues to be anchored on the growth and job creation targets of the President under the Ten-Point Agenda," Neri said.

Pushed by higher investments and increased exports, the country’s gross domestic product (GDP) is expected to grow 6.3 percent next year, a one percentage point increase over the 2005 full year growth at 5.3 percent.

"The economy will grow at a fast pace assuming that the reformed VAT Law is implemented and that the interest in mining will be sustained and will accelerate in 2006," Neri said.

He said the inflation rate this year is expected to reach 7.9 percent, although it is seen to ease to 7.5 percent in 2006, "despite the continuous rise in oil prices with the supply side measures and the improvement of the fiscal position."

Under the proposed national budget, the Department of Education (DepEd) tops the lists of 10 departments and agencies with the biggest allocation at P119.1 billion, followed by the Department of Public Works and Highways (DPWH), P62.3 billion; Department of National Defense (DND), P46.6 billion; Department of Interior and Local Government (DILG), 45.6 billion; Department of Agriculture (DA), P15.7 billion.

Department of Transportation and Communications (DOTC), P14.3 billion; Department of Health (DoH), P10.6 billion; Judiciary, P8.5 billion; Autonomous Region in Muslim Mindanao (ARMM), P8.3 billion, and Department of Finance (DoF), P6.8 billion.

Neri said that on a per capita basis, the Visayas has been allotted the biggest allocation at P4.603 billion, followed by Mindanao with P4.594 billion although by island group Luzon has the highest slice of the budget on the regional level.

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Recto predicts investments, businesses to flourish in 2 years

Sen. Ralph Recto said today investments and businesses will flourish in the next two years because the government is investing heavily in infrastructure projects in tandem with its program of putting its fiscal house in order.

Recto made the prediction after the 104th Legislative-Executive Development Advisory Council (LEDAC) meeting this morning at the Aguinaldo State Dining Room in Malacanang.

He said he is very optimistic that the country could attain a balance budget by 2008 because many reform measures have been passed and are now in place.

"Because of these measures, I foresee that in the next two years, between 18 to 24 months, we expect a lot of investments to take place because we have put our fiscal house in order and we have invested much in infrastructure," he said.

Recto was among the congressional leaders led by Senate President Franklin Drilon and House Speaker Jose de Venecia Jr. who attended the LEDAC meeting.

Discussed during the meeting was the proposed P1.053 trillion 2006 national budget, which Recto described as one of the most progressive budgets ever in years.

He lauded the 50 percent increase in the proposed infrastructure budget, from roughly P65 billion this year to P95 billion next year.

He said that one of the reasons for the high inflation rate was the lack of infrastructure projects.

"Kung ang kalsada ay pangit, mataas ang cost ng transport and products," he said.

Recto said investing in infrastructure projects would not only create jobs but also make the economy grow and attract more investments.

The implementation of the reformed Value-Added Tax (VAT) is also crucial in attaining a balance budget by 2008, he said.

"Kung wala yung VAT hindi natin makikita ang increases in the budget particularly sa health, education and infrastructure," he added.

Recto said it is possible that prices will go up with the implementation of the VAT, but at least the government has increased its revenues to help attain a balanced budget.

Without the VAT, Recto said the country would not attain self- sufficiency, its debt would further balloon to an uncontrollable proportion, the peso would be devalued and prices would go up.

Incorporated in the proposed 2006 budget is the projected increase in revenues by roughly 24 percent and expenditures by 14.7 percent.

"At kapag yung deficit ay lumiit ibig sabihin kokonti lang ang uutangin natin. Kung masusunod ito, the economy would grow at a faster rate than the debt is growing," Recto said.

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8 percent increase in wages of gov't workers included in proposed 2006 budget

An eight percent increase in basic salaries for government employes is incorporated in the proposed 2006 national budget, according to Budget Secretary Romulo Neri.

In his presentation of the proposed 2006 national budget during the Legislative-Executive Development Advisory Council (LEDAC) meeting at the Aguinaldo State Dining Room of Malacanang this morning, Neri said a total of P13.1 billion has been provided for the adjustment in compensation of national government workers which would be no less than P500 per month per employe.

"This will increase the take-home pay of both civilian and military personnel, allowances not being subject to tax," he said.

Salaries of Bureau of Jail Management and Penology (BJMP) personnel will also be upgraded to make their compensation at par with members of the Philippine National Police (PNP). In all, this would require P579.5 million, according to Neri.

The compensation increase has been bunched with new programs and provisions in the proposed P1.05 trillion national budget for next year.

Also in the program is the Kilos Asenso Support fund with P5 billion, Kalayaan Barangay Program Fund, P3 billion, and the payment of arrears on employes’ share in premium contributions like the Government Service Insurance System (GSIS), Pag-Ibig, Employes Compensation Fund and the PHIC with P4.9 billion, and the MRT 3 with P.09 billion.

The 2006 proposed budget, which is now being tackled in Congress, is anchored on the 10-Point Agenda of President Gloria Macapagal-Arroyo.

Neri appealed to the legislators in both houses of Congress to facilitate the passage of the 2006 budget to fast-track the economic recovery of the country.

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Ermita: Like Cabinet secretaries, undersecretaries also serve at the pleasure of the President

Like Cabinet secretaries, undersecretaries as presidential appointees also serve at the pleasure of the appointing authority although if they also happen to be career executive service officers (CESOs), their stint in government cannot be terminated by the President.

Executive Secretary Eduardo Ermita made this clarification today to put in proper context the case of Undersecretary Juan Miguel Luz, who is due for transfer from his post at the Department of Education (DepEd).

Ermita said Luz’s case is not a rare instance and he is not being removed from government service nor his item as Career Executive Service Officer III is being revoked. He will only be transferred to another office.

"As undersecretary for which the President issued an appointment, Mr. Luz can be removed any time from the office he is serving. He serves at the pleasure of the President," as do all Cabinet officials who are all political appointees, Ermita explained.

Press Secretary and Presidential Spokesperson Ignacio R. Bunye said Luz will be transferred to an office where his services will be better utilized.

Ermita said Labor Secretary Patricia Sto. Tomas agrees that as a political appointee, Luz can be removed, but as a qualified career service official, his stint with government cannot be terminated at will but he can be moved to another post.

He said Luz has sought a meeting with him and he will try to find time for him.

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PGMA to check on Malate school enercon program

President Gloria Macapagal-Arroyo will visit the Aurora A. Quezon Elementary School (AAQES) in Malate, Manila Wednesday morning to check on the school’s compliance with the government’s Energy Conservation (Enercon) measure.

The visit will also enable the President to stress the significance of the Enercon program and impress its importance among school teachers and children. She will interact with selected AAQES pupils who have completed their nine-week special class on energy conservation program.

The participating pupils are also expected to relate to the President how their Enercon special class training helped their families save on electricity costs at home.

Expected to accompany the President in her visit at Aurora A. Quezon Elementary School are Education acting Secretary Fe Hidalgo, Energy Secretary Raphael Lotilla and representatives from Manila City Hall, among others.

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ConCom members to meet and start work Wednesday

Members of the Consultative Commission (ConCom) will hold their first formal meeting tomorrow, Sept. 28 at the Innotech Building along Commonwealth Avenue in Diliman, Quezon City to start their work.

Executive Secretary Eduardo Ermita will initially preside over the body’s maiden session where the Commission is expected to elect its officers and organize its sectoral working committees.

Ermita will be assisted by Secretary Rigoberto Tiglao, Presidential Management Staff chief. PMS will provide the Secretariat for the ConCom.

In his regular media briefing this afternoon in Malacanang, Press Secretary Ignacio R. Bunye said the ConCom would study and review the 1987 Constitution and, in consultations with various sectors, draw up recommendations on amendments to the charter.

The ConCom is expected to work full time and complete its work within three months. It will submit its recommendations to President Gloria Macapagal-Arroyo who, in turn, would refer their work to Congress.

"So, this will be recommendatory. That is the nature of the Consultative Commission. And this Consultative Commission can proceed even separately and independently of whatever deliberations there would be in the House (of Representatives)," Bunye said.

President Arroyo created the ConCom under Executive Order No. 453 dated August 19, 2005.

Its primary mandate is to draw up proposed amendments to the 1987 Constitution to make the country more attuned and responsive to global challenges and changes.

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