President Gloria Macapagal-Arroyo received this morning the credentials of new United States Ambassador to the Philippines Kristie Kenney and Republic of South Africa Ambassador Pieter Andries Vermeulen.

The simple ceremonies, which took place 30 minutes apart of each other, were held at the Reception Hall of Malacaņang.

Kenney, the first female US ambassador to the Philippines, succeeds Ambassador Francis Ricciardone, who left the country in May 2005 at the end of his diplomatic posting here.

Kenney arrived in Manila on March 17, 11 days after she was sworn in by US State Department Secretary Condoleezza Rice on March 6 as the new US envoy to the Philippines.

"Welcome to the Philippines. We look forward in working with you," President Arroyo told the US ambassador.

In her response, Kenney said she was honored to "present my credentials in representing our beautiful country to this wonderful country."

A senior member of the US foreign service, Kenney is also the first woman to serve as Executive Secretary of the State Department. Before her Philippine assignment, she served as US ambassador to the Republic of Ecuador from September 2002 to July 2005.

Kenney’s overseas postings include as economic counselor at the US Mission to International Organizations in Geneva, economic officer at the US Embassy in Argentina, and consular officer at the US Embassy in Jamaica.

She is married to William Brownfield, currently the US ambassador to Venezuela.

"Our bilateral relationship with the Philippines is based on a deep affection between our peoples and shared democratic values. We each have the goal of making our democracies strong and stable so that every citizen’s vote has meaning," Kenney said before the US Senate Committee on Foreign Relations last January during her confirmation hearings.

"I believe our historic relationship with the Philippines will continue to flourish as we pursue our common vision of peace, stability, and prosperity. I will work to promote US interests by developing a relationship with the leadership and people of the Philippines that will benefit both our nations," she added.

Foreign Affairs Secretary Alberto Romulo witnessed the presentation of credentials of the two new ambassadors to the country.

South African Ambassador to the Philippines Vermeulen was accompanied by his wife Christina Vermeulen, Eugene Grobles, Counselor; and 1^st Secretaries Sylvia Matona and Pierre de Villiers.

The South African envoy was officially introduced to the President by Department of Foreign Affairs (DFA) Chief Protocol Jerril Santos. Also present was DFA Assistant Secretary for Middle East and African Affairs (OMEA) Oscar Valenzuela.

The fact that former President Joseph Estrada was taking the witness stand is a clear proof that due process has been strictly observed in his case.

For the first time in decades, our goal of reducing our debt to 50% of Gross Domestic Product is within reach, especially with the stability of the peso strengthening our fiscal position.

With our good fiscal performance, we can possibly garner a credit upgrade in the months to come, making unprecedented investor confidence.

Intermittent political storms will not distract us from our course toward economic takeoff.

The government does not want the Small Town Lottery (STL) to suffer the same fate as the Bingo-2-Ball during the Estrada administration, and is meticulously reviewing the guidelines before implementation.

We assure the public and all concerned sectors that this project will be fully transparent in its operational and financial aspects. In the process, we shall also take steps to protect the interest and welfare of the youth.

It is a pity that the interest and welfare of the nation is being set back by the continuing impasse between the Senate and the Lower House on the issue of Charter change.

We hope that both chambers can work out a principled middle ground in settling their differences so we can overhaul our poisoned political system.

We look forward to the forthcoming approval of the Juvenile Justice System bill, which we consider as vital legislation that would lead to greater protection of the rights and welfare of children in conflict with the law.

We welcome the resumption of formal peace talks between the government and Moro Islamic Liberation Front to discuss concerns pertaining to ancestral domain.

President Gloria Macapagal-Arroyo hailed today the signing of a new fisheries agreement between the Philippines and Indonesia, saying the accord is a welcome development to the fishing industry in Mindanao.

In a roundtable discussion with the President aired over channel NBN 4, the President pointed out that the fishing industry contributes a lot to the government’s development efforts in Mindanao.

She said that with the new fisheries agreement, Filipino fishermen could continue fishing in Indonesian territorial waters.

The President said that before the signing of the new fisheries accord, she was worried that Indonesia might "ban Filipino fishermen from fishing in their waters. That would create a negative impact on our exports, and jobs would be lost."

Agriculture Secretary Domingo Panganiban, who signed the fisheries cooperation pact with Indonesian Minister on Marine Affairs Freddy Numberie, said the agreement binds the Philippines and Indonesia to cooperate in fisheries research and other aquatic concerns.

Panganiban said Indonesia wants to develop its tuna industry and is asking the Philippines to train its nationals on tuna fishing methods.

The termination of the 2002 Fisheries Agreement with Indonesia would hurt General Santos City’s P50 billion fish trade and the country’s economy, resulting in massive unemployment in the tuna capital.

The bilateral fishing access accord signed in 2002 allows Philippine tuna fleets to catch tuna and tuna-like species within the Indonesian Exclusive Economic Zone.

It provided licenses for 75 catcher vessels, 150 fish carriers, 20 long liners, 300 light boats and 10 single purse seiners, and allowed access to the Pacific and Indian Ocean areas of the Indonesian EEZ. It also provides off-loading and re-supply access to 10 Indonesian ports.

The President, however, said there is a need to further strengthen the fishing industry and other industries in Mindanao so progress in the dynamic areas such as Davao City and General Santos City would be integrated in the whole island.

Around 100,000 fishermen in General Santos City alone rely on the tuna industry.

Despite the impasse between the Senate and the House of Representatives on the issue of Charter change, Malacanang remains confident the two chambers could work out a principled middle ground in settling their differences.

Press Secretary and Presidential Spokesperson Ignacio R. Bunye has expressed dismay that the interest and welfare of the nation is being set back by the continuing deadlock.

"We hope that both chambers can work out a principled middle ground in settling their differences so we can overhaul our poisoned political system," he said in a statement issued this afternoon.

Bunye was reacting to reports that the Senate formally rejected Tuesday the House position that both chambers vote as one – not separately – on the issue of amending the 1987 Constitution through a Constituent Assembly (Con-ass).

In a resolution signed by 22 senators, the Senate expressed the sense "that any proposed amendment to or revision of the Constitution requires the approval of the Senate and the House of Representatives voting separately."

The senators contend that the Constitution clearly states "the Congress of the Philippines shall consist of a Senate and a House of Representatives."

Majority of the congressmen, led by House Speaker Jose de Venecia, however, have been batting for a Charter change through a Constituent Assembly in support of President Gloria Macapagal-Arroyo who wants a change in the country’s political system "to move the country forward."

Malacanang assured the public today that the operation of the Small Town Lottery (STL) will be fully transparent, including the finances of the project.

"The government does not want the STL to suffer the same fate as the Bingo-2 Ball during the Estrada administration," Press Secretary and concurrently Presidential Spokesman Ignacio R. Bunye said.

The government has stopped the operation of the STL pending a meticulous review of the guidelines on its implementation.

Bunye said that in the process of ensuring the full transparency of the STL project, the government will also take the steps necessary to protect the interest and welfare of the youth.

He added that the legal numbers game would not only be a "boon to thousands of collectors who were affected by the massive crackdown on jueteng for the past months, but also as another source of income on the part of the government’s pro-poor programs."

Meanwhile, Presidential Chief of Staff Secretary Michael Defensor said the government will review the performance of the STL during the time of President Corazon Aquino, particularly as regards the parameters of its implementation.

In a radio interview this morning, Defensor said it is also important to pilot test the operation of the STL in certain areas to study its acceptability before the full implementation of the project.

"It is important to pilot test the STL to further study it. If it would benefit many stakeholders and turn out okay to all stakeholders, then we could expand it to other areas," Defensor said.

President Gloria Macapagal-Arroyo inducted into office today two ambassadors, two assistant secretaries and a general from the Bureau of Fire Protection (BFP) in simple rites at Malacanang’s Rizal Hall.

Inducted were Sonia Brady, Ambassador Extraordinary and Plenipotentiary to the People’s Republic of China with concurrent jurisdiction over the Democratic People’s Republic of Korea and Mongolia; Isaias Begonia, Ambassador Extraordinary and Plenipotentiary to the State of Qatar;

Rinand Maquiling, Assistant Secretary of the Office of the President (OP); Parisya Taradji, Assistant Secretary of the Department of Social Welfare and Development (DSWD); and Chief Superintendent Enrique Linsangan of the Bureau of Fire Protection (BFP).

The President also administered the mass oathtaking of the newly elected officers of the Association of Filipino Firefighters and Philippine Academy of Aesthetic Surgery.

During the program, the President received a P1-million check donation from George Lee, president of the Chinese Filipino Business Club Inc., for the calamity, social and welfare programs of the Department of Social Welfare and Development (DSWD).

Malacanang hailed today the resumption of formal peace talks between the government and the Moro Islamic Liberation Front (MILF) in Kuala Lumpur.

The resumption of the peace negotiations "signals the advancement of our Mindanao peace agenda that has drawn the interest and support of the international community," Press Secretary and Presidential Spokesman Ignacio R. Bunye said.

"There is much room for optimism that an agreement will be finalized this year," he added.

Topping the agenda in the resumed government-MILF talks is the contentious issue of ancestral domain.

Both panels had expressed optimism that before the end of the year a final peace accord could be reached and pave the way for the final settlement of the decades old Mindanao conflict.

The promise of peace in Mindanao has opened the way for new possibilities for the economic development of the region by way of massive government financing and foreign assistance.

The World Bank had promised trust funding for the development of conflict-affected areas in the western and central parts of Mindanao.

The United States, Japan, Australia and several Islamic countries are among the foreign countries raring to pour funding into development projects in Mindanao.

The formal GRP-MILF talks resumed Tuesday in Kuala Lumpur, with both sides expressing optimism that the ancestral domain, the most contentious issue of the peace talks, would be threshed out.

Malaysia is hosting the peace negotiations.

Malacaņang assured today that the Department of Social Welfare and Development (DSWD) is ready to undertake its role in facilitating the rehabilitation of minor offenders once the Juvenile Justice System bill is passed into law.

Press Secretary and Presidential Spokesman Ignacio R. Bunye made the assurance in the wake of the positive outcome of the bicameral panel debate in Congress on the proposed law excepting children 15 years and younger from criminal prosecution and imprisonment.

"The DSWD is prepared to undertake its role in facilitating the rehabilitation of children who have been caught violating the law," Bunye said in a statement.

Bunye said the Executive department is optimistic that the Juvenile Justice System bill will be passed into law in the near future.

"We look forward to the forthcoming approval of the Juvenile Justice System bill, which we consider as vital legislation that would lead to greater protection of the rights and welfare of children in conflict with the law," he said.

The Senate-House of Representatives bicameral panel on Tuesday agreed that minor offenders would have to undergo a diversion program such as socio-civic work and mandatory counseling.

Under the measure, the DSWD will head the Juvenile Justice and Welfare Council which would oversee the implementation of the law.