12 POLITICAL

Ombudsman Gutierrez quits, maintains innocence Beleaguered Ombudsman Merceditas Gutierrez submitted her resignation letter to President Aquino on April 29, less than 2 weeks before the scheduled impeachment hearing against her at the Senate.

s. Gutierrez’s lawyer, Tomas Syquia, quoted the Ombudsman as saying in her letter: “I am resigning M my offi ce effective May 6. Even as a private citizen I will still support the efforts of government in stamping out corruption.” The Ombudsman’s resignation came 10 days before her impeachment trial at the Senate, which was set after a majority of House lawmakers pushed for her ouster based on 6 allegations, including inaction in the P728-million fertilizer fund scam, the Euro general case, the 2004 Mega Pacifi c deal, the NBN-ZTE deal, the Philip Pestano case, and the low conviction rate during her term in offi ce. Ms. Gutierrez had insisted on her innocence and denied protecting former President Gloria Arroyo. Iloilo Rep. Niel Tupas, head of the House justice committee, said Ms. Gutierrez’s resignation cancels the Senate impeachment trial on May 9. In later developments, Supreme Court Associate Justice Conchita Carpio-Morales has accepted her nomination as was picked by former elections chairman Christian Monsod a possible successor to Ms. Gutierrez. Ms. Morales was and former Agrarian Reform undersecretary Hector Soliman, nominated to the Judicial and Bar Council by Mr. Beda Fajardo, who cited his experience in litigation and “passion for justice.” president of the University of the Law Alumni With corruption among the most serious problems besetting Association Class ’68; retired Judge Dolores Español, chairman this country, the ombudsman has one of the toughest jobs. of Transparency International Philippines; and retired Judge Ms. Gutierrez, under fi re for her performance, has quit. Her Leticia Sablan, president of the Women Lawyers Association predecessor, Mr. Simeon Marcelo, also resigned, saying the of the Philippines Inc. Justice Carpio-Morales is scheduled to job made him physically ill. His predecessor, Mr. Aniano retire from the Supreme Court on June 19. Earlier, two more Desierto, had his share of controversies. The person who serves candidates for Ombudsman were nominated before the Judicial as the nation’s vanguard against corruption also faces high and Bar Council just before the May 16 deadline. Law Dean public expectations at the start of his or her term. When those Jose Manuel Diokno of the De La Salle University and public expectations are not met, the ombudsman is in for a hard fall. interest lawyer Marlon Manuel were nominated to take over There is a need to upgrade the capability of the Offi ce of the from Ms. Gutierrez. Mr. Diokno is a son of the late human Ombudsman. The offi ce needs more investigators and logistics rights icon Jose Wright Diokno. His nomination came from to carry out its mandate. It can also use more assistance in this the Free Legal Assistance Group, the group his father founded battle from agencies such as the Commission on Audit and during the martial law years. The other nominee, Mr. Manuel, investigating arms of the Department of Finance. It cannot be

There is a need to upgrade the capability of the Offi ce of the Ombudsman.

Philippine Alert May 2011 POLITICAL 131 emphasized enough that the next ombudsman must have not offi cials. Justice Secretary said the case would only integrity but also the competence to perform the diffi cult go through the usual process, including the creation of a panel tasks of unearthing and proving cases of corruption. This job of prosecutors that will conduct a preliminary investigation. involves painstaking sleuthing to dig up evidence that will In other developments, Local Water Utilities Administration stand in court. Guilt is established in a court of law and not chairman Prospero Pichay Jr. was suspended by the Offi ce of in the court of public opinion, and it must be guilt beyond the Ombudsman over the acquisition of a controlling stake in reasonable doubt. Obtaining even a single incriminating a thrift bank in 2009. Acting Ombudsman Orlando Casimiro document can be a daunting task; just as challenging is putting ruled there was enough evidence that Mr. Pichay, a former together an airtight case to secure a conviction that will not be congressman from Surigao del Sur, committed the administrative overturned by a higher court. The nation can only hope that a offense of grave misconduct. President Aquino earlier also person of probity and competence will be chosen for the job. suspended three LWUA Board members—Bonifacio Mario Peña, Susana Dumlao Vargas, and Renato Velasco—for the alleged anomalous purchase of a stake in Express Savings Plunder case fi led vs. Pres. Arroyo Bank Inc. The charges against Mr. Pichay and three LWUA offi cials-—Acting Administrator Daniel Landingin, Acting Former Solicitor General Frank Chavez has fi led plunder Deputy Administrator for Investment and Financial Services charges against former President and now Pampanga Rep. Wilfredo Feleo, and Corporate Legal Offi cer and Board Secretary Gloria Arroyo and 3 members of her Cabinet, claiming lawyer Arnaldo Espinas—were fi led by LWUA employees. The they used a P533-million fund from the Overseas Workers complaint against the 3 trustees, on the other hand, was fi led by Finance Secretary . The complainants accused Welfare Administration to fi nance Ms. Arroyo’s re-election Mr. Pichay and the 3 offi cials of violating the Code of Conduct bid, among other things. and Ethical Standards for Public Offi cials and Employees, and of grave misconduct for the alleged unlawful disbursement and Mr. Chavez fi led the case with the Justice Department against investment of P870 million in LWUA funds in the thrift bank. Ms. Arroyo, former Foreign Affairs Secretary , The plunder case against Ms. Arroyo and several of her former Health Secretary and Philippine Health Insurance Corp. former offi cials is “full of holes,” her camp said yesterday. president Francisco Duque III, and former OWWA chief Virgilio Those behind the complaint are private citizens, but the Angelo. Mr. Chavez fi led the same complaint with the Ombudsman OWWA has promised to cooperate and provide assistance in in July 2004, but the case was shelved because Ms. Arroyo then bolstering the case. With the OWWA wading in, a dismissal had immunity from suits. He had said the money from OWWA of the case will give the Arroyo faction in the opposition brought to P2.7 billion the total amount of funds that Ms. Arroyo reason to cry political persecution. And each time the had diverted to her campaign kitty for the 2004 elections. Mr. opposition succeeds in making that point, it will undermine Chavez and the workers’ group Migrante International claim that efforts of the Aquino administration to stamp out corruption the accused had also conspired to use the OWWA money to fi nance – an effort that includes successful prosecution of the corrupt. questionable acquisitions by several diplomatic posts in the Failure to punish the corrupt has given the impression Middle East and the Philippines’ humanitarian assistance to Iraq. that crime pays. Two presidents have been ousted through A 3-man panel has been formed to look into the plunder popular revolts that were fueled partly by public disgust over complaint against Ms. Arroyo. In a Department Order dated corruption at the highest levels of government. The victory May 3, 2011, Justice Secretary Leila de Lima designated Senior of President Benigno Aquino III was largely perceived as Deputy State Prosecutor Theodore Villanueva as chairman of the an outcry against graft and corruption. Candidate Aquino panel, and Senior Assistant State Prosecutors Elizabeth Inton- successfully tapped into that public discontent, promising Santos and Lilian Doris Alejo as members. Mr. Villanueva is voters that his administration would take the straight path. also a member of the fi ve-man fact-fi nding committee Sec. de One of the toughest challenges in delivering on that promise Lima has created to probe the alleged corruption in the Armed is making charges stick against those who are being called to Forces. Meanwhile, Sen. Panfi lo Lacson said he was preparing account for corrupt deals of the past as it is extremely diffi cult to fi le more plunder cases against Ms. Arroyo, claiming the time to get incontrovertible proof-and to overcome the blandishments had come for her to pay for the sins of the last nine years. He offered. So those behind the latest effort to prosecute the corrupt said he would review the documents against Ms. Arroyo that had must be thoroughly prepared for the tough legal battle ahead. been unearthed with the help of former government offi cials. Sen. Lacson also said he hoped that the plunder case against Ms. Arroyo would “reach its logical conclusion” and that the efforts to make the past administration accountable would be in keeping with President Aquino’s anti-corruption campaign. Meanwhile, the Justice Department said it will take full jurisdiction over the plunder charges fi led against Ms. Arroyo and three of her Cabinet

Philippine Alert May 2011 14 POLITICAL

Mar Roxas is Pres. Aquino’s chief of staff has a White House Chief of Staff who performs the functions of executive secretary. The reverse is true in the Philippines: Former Senator Manuel Roxas II will be President Aquino’s there is no Chief of Staff but there is an executive secretary chief of staff, Malacanang announced. who exercises the powers of the US Chief of Staff. In the end, Mr. Roxas entry into the power structure in Malacañang may “We are defi ning the functions of the chief of staff so there will only end up being detrimental to the Aquino administration. be no overlap with the executive secretary and the Presidential Management Staff,” Mr. Aquino said. “We are trying to clearly delineate the functions.” The position of chief of staff was abolished Pres. Aquino shrugs off decline in public during the Arroyo administration. Mr. Roxas was Mr. Aquino’s approval rating runningmate during the May 2010 polls. He had been serving as the President’s chief trouble-shooter in an informal capacity. The The opposition on May 3 hammered the administration one-year appointment ban on defeated candidates lapsed on May over an 18-point drop in the approval rating of President 10. Mr. Roxas had been joining Mr. Aquino’s local and foreign Aquino in the latest Social Weather Stations survey, but the trips, and was earlier dispatched to Taipei as presidential emissary to try and assuage Taiwanese offi cials who had complained Palace shrugged off the decline, saying the fi gures were about the deportation of 14 Taiwanese nationals to China. expected. In related developments, Mr. Aquino said he is satisfi ed with his Cabinet and will not be revamping it anytime soon despite In its March 4 to 7 survey, SWS said Mr. Aquino’s net the jockeying for position by some of his Liberal Party allies satisfaction rating, which subtracts the percentage of dissatisfi ed who lost in the 2010 elections. Mr. Aquino said he was inclined respondents from the percentage of satisfi ed respondents, fell to to make permanent 2 Cabinet offi cials who are now serving +46, down 18 points from +64 in November 2010. The survey used in an acting capacity: Interior Secretary and face-to-face interviews with 1,200 respondents nationwide and Environment Secretary Ramon Paje. Communications Secretary had a 3% margin of error. The survey company said +46 was still Ramon Carandang said those hoping to join the Cabinet should “good,” but House Minority Leader Edcel Lagman said the decline stop issuing statements to the media and instead wait for Mr. was a judgment of the President’s failure to deliver on his promise Aquino to make an announcement. Late last month, losing Liberal of more jobs and less corruption. The President’s purchase of a Party senatorial candidate Nereus Acosta said he had accepted the Porsche, which had been criticized by many, could have infl uenced Environment portfolio that Mr. Aquino purportedly had offered the outcome of the survey, the SWS said. But as it was the only him. Fellow losing Liberal senatorial candidate Rufi no Biazon has question asked their might be an exaggeration Mr. Aquino’s rating also expressed interest in a position related to defense and security. was down in almost all areas and social classes. Among the upper It is diffi cult to ascertain at the moment what Mr. Roxas’ role and middle classes, his net satisfaction rating plunged 43 points. will be in the Palace, especially since the position of Chief of Among the poor (2 categories), it fell by 18 points and 15 points. Staff is non-existent and there is already an Executive Secretary Any which way one looks at it, the latest SWS survey does in the person of Paquito Ochoa. Sen. Joker Arroyo on May not bode well for the fl edging administration. Mr. Aquino’s net 16 correctly criticized the Roxas appointment, saying that the satisfaction pales next to those of the past 4 presidents in the move would likely “cause confusion and pandemonium” in the same time period. Furthermore, none of his predecessors’ numbers Palace. He said that to install Mr. Roxas in a Cabinet position fell nearly as fast as Aquino’s did. In fact, most of them had as chief of staff would be unlawful as “there is no such offi ce performance ratings that grew 9 months after they assumed offi ce. created by law.” Mr. Arroyo also said the Palace is “creating Communications Secretary questioned the a situation where the offi ces of the executive secretary and SWS’ use of the net ratings method, opting instead to focus only chief of staff will be fi ghting will lead to a power struggle.” He on those respondents who were satisfi ed with his boss. “If you warned that there can be no other offi ce in the Cabinet higher look at the absolute numbers, which is what we tend to do at the than the offi ce of the executive secretary. The lawmaker said the Palace, approval was down by about 5% only,” he claimed. That’s Philippines patterns its governmental structure after that of the a shallow way of looking as if, he’ll do better to face the reality United States where there is no executive secretary, but which that fewer people approve, and seek the reason, and correct it.

Mr. Roxas’s entry into the power structure in Malacañang may only end up being detrimental to the Aquino administration.

A sit down with big business should have been one of the fi rst items on his agenda.

Philippine Alert May 2011 POLITICAL 151

Mr. Aquino has not revealed any clear long-term plan for the country.

Holding public offi cials accountable for their misdeeds in offi ce is vital to good government and in this area, the Aquino administration may be commended. However, running after Gloria Arroyo is not going to put food on people’s tables. Instead of spending precious time and political capital chasing offi cials of the previous regime, this task that should be left to agencies like the PCGG and Department of Justice.

Even if we accept Mr. Carandang’s theory of absolute numbers, Probe into Leviste caper starts. Prisons chief Mr. Aquino still fares badly. The 5% decline in those who approve of the way the President is doing his job reveals that support Diokno resigns. from his base—the Yellow crowd—is still relatively intact, but nonetheless eroding. However, the number of people who are Bureau of Corrections director Ernesto Diokno has resigned becoming dissatisfi ed with him is signifi cant. Recall that Mr. from his post in the midst of the inquiry into how former Aquino was elected a minority President—more voters combined Batangas governor Jose Antonio Leviste managed to slip chose other candidates over him. Before the election, people were out of the national penitentiary. understandably skeptical about Mr. Aquino due to his lackluster track record and defi cit of accomplishments in public offi ce. Justice Undersecretary Francisco Baraan III said the inquiry, However, after his victory, many gave him a chance to prove which will include testimony from Mr. Leviste himself, was himself and deliver the goods, for the sake of the country and part of the “due process” accorded to Mr. Diokno who has been national unity. The SWS poll shows that these same voters may accused of negligence by allowing Mr. Leviste, convicted of be growing pessimistic about the situation. In the well-informed killing his longtime aide four years ago, to leave the New Bilibid ABC classes, Mr. Aquino recorded a huge 43% drop. Media reports Prison reservation in Muntinlupa City recently. He is expected to have put it down to his apparent lack of leadership and vision testify into what Usec. Baraan described as the former governor’s To be fair, a big factor that is contributing to the decline in “caper.” The offi cial described Mr. Leviste’s willingness to speak Mr. Aquino’s numbers is the worsening economic situation in “a good start for the investigation.” He added that Mr. Diokno and the country brought on by global conditions. Spiraling fuel prices other prison offi cials were also expected to testify. The hearings and it’s effect on the cost of goods and services that are making will enable the panel “to get to the facts” on what led to Mr. Leviste life more diffi cult for everyone. Mr. Aquino should focus on leaving the Bilibid reservation for Makati City where agents of issues that will directly impact people’s lives. A good example the National Bureau of Investigation rearrested him on May 18. is the business sector, which Mr. Aquino has woefully neglected Earlier, President Aquino summoned Mr. Diokno and and which should be the government’s partner in employment demanded he explain how Mr. Leviste, convicted of homicide, generation and poverty reduction. His predecessors—even was able to leave the prison compound. Presidential spokesman the intellectually maligned Joseph Estrada—realized this and said the Mr. Aquino met with the embattled held productive meetings with captains of industry as soon Bureau of Corrections chief, whom he appointed in September as they assumed offi ce. Since Mr. Aquino became President, 2010, but offered no other details about the meeting. Justice he has not conducted a single meaningful dialogue with the Secretary Leila de Lima, who is investigating the case, said business community, save for a handful of short, scripted heads would roll, noting that Mr. Diokno was not off the encounters. If he were really serious about change and uplifting hook. Mr. Lacierda said the Leviste case would be a litmus the lives of ordinary Filipinos, a sit down with big business test of the administration’s “Tuwid na Daan [Straight Path]” should have been one of the fi rst items on his agenda. For platform of good governance, even as he acknowledged that instance, apart from his anti-corruption platform, Mr. Aquino the former governor had enough money and connections has not revealed any clear long-term plan for the country. to make the illegal trip out of the National Bilibid Prisons. Holding public offi cials accountable for their misdeeds Prisoners are allowed “living out” privilege or to serve in offi ce is vital to good government and in this area, the their sentence outside a detention cell but within a prison Aquino administration may be commended. However, running reservation for humanitarian reasons in the case of inmates aged after Gloria Arroyo is not going to put food on people’s 70 or older. For the rest, the privilege is in line with the main tables. Instead of spending precious time and political capital purpose of the modern penal system, which is rehabilitation: chasing offi cials of the previous regime, this task should be “living out” is meant to provide community immersion to left to agencies like the PCGG and Department of Justice. a prisoner whose release is imminent. With lax security or corrupt custodians, however, the privilege can be easily abused. This appears to be the case with regard to Mr. Leviste.

Philippine Alert May 2011 16 POLITICAL

Bureau of Corrections offi cials led by Mr. Diokno claimed While the Aquino administration is appealing the Mr. Leviste was allowed living out privilege because he is past Sandiganbayan’s ruling, reforms can be initiated to plug 70. Now the privilege has been cancelled, Mr. Leviste faces opportunities for corruption in the AFP and promote transparency charges of evasion of sentence, and he could lose any eligibility in funding and procurement. Reforms have in fact been undertaken for a shorter prison term. The Department of Justice, which has in the AFP and Department of National Defense since 2004 under jurisdiction over the Bureau of Corrections, is looking into reports the US-supported Philippine Defense Reform Program. AFP that another convicted killer, Rolito Go, has also abused the living chiefs of staff in recent years have emphasized that the systems out privilege. This abuse can be stopped only if measures are and procedures that allowed the “conversion” and diversion of implemented to tighten security within prison reservations and military funds to private pockets have been amended or scrapped. to improve monitoring of the activities of living out prisoners. The offi ce of the AFP comptroller has been abolished and bidding Philippine prison authorities are supposed to conduct procedures simplifi ed. Some AFP units have also started posting regular checks on the activities of living out prisoners precisely their funding requests and actual expenditures on their websites. to prevent the abuse of the privilege. If there is such a system A defense department committee formed to look into the at the New Bilibid Prisons in Muntinlupa, it was certainly not problem of corruption in the military has proposed, among applied in the case of Mr. Leviste, who was caught only because other things, the computerization of the AFP’s logistics and he is a known personality. Offi cials said about 400 prisoners fi nancial management system as well as the creation of a enjoyed living out privilege. If the abuse is to be stopped, those defense acquisition bureau. The committee is also proposing the responsible for Mr. Leviste’s caper, whether due to incompetence audit of intelligence funds, but without compromising national or for personal gain, should be fi red from the government. security. Implementing this last one can be tricky. But at least the willingness is there, and military offi cers themselves are crafting measures to clean up their organization. After the corruption scandal that has driven a former chief to kill himself and seen Garcia, wife deny P235Mn tax evasion raps several generals on trial for plunder, the AFP should emerge stronger, on its way to becoming a graft-free, professional force. Former military comptroller Carlos Garcia and his wife denied the P235-million tax evasion charges fi led against them before the Department of Justice. They asked the in- vestigating panel to dismiss the charges for lack of merit. Bin Laden’s death seen hurting local extremists Gen. Garcia said the charges against them must be dismissed because these were allegedly committed in 2004. BIR rules Security offi cials said they expected Osama bin Laden’s provide for a fi ve-year prescription for tax evasion, he added. death to weaken local Islamic extremists and perhaps even Gen. Garcia also cited a rule in the Revised Penal Code that a lead to their eventual elimination. person is exempted from criminal liability if the person “could not perform an act because of insuperable cause.” He claimed They made the statement even as President Aquino ordered he could not fi le his income tax returns for 2004 because he an assessment of security threats and possible retaliatory attacks was already in jail. The Bureau of Internal Revenue said that following an Interpol warning of “heightened terror risk” with the the Garcias willfully attempted to evade payment of taxes and death of Al Qaida leader Bin Laden. The military and police have willfully failed to fi le their income tax returns for earnings strengthened security in Mindanao, where the Al Qaida-linked amounting to P273 million in 2004. This case is separate Abu Sayyaf has waged attacks for years, but have not monitored from 2 other tax evasion complaints the Garcias are facing. any specifi c threats arising from the US military assault that killed The DOJ has already found probable cause to indict them, the world’s most wanted terror suspect on May 2 in Pakistan. but they are still appealing the resolution. Gen. Garcia is also More than 500 American troops have been helping their Filipino facing a P303-million plunder complaint at the Sandiganbayan. counterparts fi ght the militants with weapons, combat training In related developments, the Supreme Court will likely be and intelligence for nearly a decade. The Abu Sayyaf, which has the next battleground in the Aquino administration’s bid to stop an estimated 410 fi ghters, is listed by Washington as a terrorist a plea bargain agreement that allowed Gen. Garcia to avoid organization engaged in bombings, kidnappings and beheadings. plunder charges, the Justice department said. Gen. Garcia avoided In related developments, the largest Muslim rebel group in the charges by returning less than half of the P300 million he the Philippines urged the government to speed up peace talks, but was accused of stealing and pleading guilty to a lesser charge. remained vague about its plans to handle a renegade commander But Justice Secretary Leila de Lima said that while the Offi ce who threatens to derail the process. The negotiations seek to end of the Solicitor General could still appeal the decision of the a decades-long armed struggle by the 11,000-strong Moro Islamic Sandiganbayan anti-graft court to approve the plea bargain, the Liberation Front for Muslim self-rule in Mindanao, which is urgency of the situation suggested that the government take its homeland of the Muslim minority in the predominantly Roman case directly to the Supreme Court. Sec. de Lima said the anti-graft Catholic country. In a speech to start the latest round of two-day court’s acceptance of the plea bargain was “palpably wrong” and talks brokered by Malaysia, rebel chief negotiator Mohagher accused the justices of “judicial callousness.” The Sandiganbayan’s Iqbal noted that negotiations have gone on since 1997, which he 2nd Division upheld the legality of the plea bargain, which called “too long a process.” He urged the Philippine government allowed Gen. Garcia to go free on bail in December 2010. to submit a draft of a comprehensive accord when both sides Philippine Alert May 2011 POLITICAL 171 hold their next meeting in Kuala Lumpur. Upcoming talks are COA auditor said the fertilizer was supposed to be distributed expected in June. Mr. Iqbal added that the rebels were working to farmers in time for the cropping season from May to to solve problems with Mr. Ameril Umbra Kato, a hard-line October 2003. Rep. Yap said the deal was aboveboard and commander who opposes the talks because he says they have involved only 198,654 bags of fertilizer worth P93.8 million. yielded no major results for years. Mr. Kato has formed his own The COA report comes on the heels of the fi ling in court of group of a few hundred followers but has indicated that he still plunder cases in connection with the P728-million fertilizer scam. belongs to the MILF group. However, government negotiator Mr. Bolante is accused of distributing funds meant for farmers’ Marvic Leonen voiced concerns about whether a peace deal can fertilizer needs to political allies of then President Gloria Arroyo, be implemented if there were “unaddressed splinter groups.” including those whose districts had no agricultural areas, during her The killing of Mr. Bin Laden prompted a heightened campaign for the presidency in the 2004 elections. Unfortunately, alert in the US and several other countries in anticipation of the case against Messrs. Bolante and Lorenzo could drag on for retaliatory attacks. While al-Qaeda is now decapitated, the years before a fi nal verdict is handed down. In the meantime, terrorist threat has become globalized, with Islamic extremists the Aquino administration that came to power on the promise of espousing localized causes in spreading their gospel of violence stamping out corruption should focus on measures that would and fear. The Philippines has had its share of the attacks, with prevent the misuse of funds meant to assist agricultural workers. over 100 people killed when the Abu Sayyaf, in tandem with The Philippines is blessed with fertile lands and other natural the Southeast Asian terror cell Jemaah Islamiyah (JI), set off resources, and agriculture accounts for a large chunk of annual a bomb on a SuperFerry in Bay. There have also been economic growth. Yet sadly, the country is outpaced in various numerous cases of high-profi le kidnappings over the years. aspects of agricultural production by several neighboring There have been some gains against the terrorists. JI itself countries with similar climates and farming conditions. There has lost 2 of its most notorious members, with the death of Bali are many reasons for this, but one of them has to be the bombing brains Dulmatin and the capture of Umar Patek, but mismanagement of agricultural support funds. In particular, the its spiritual leader is still around. Security offi cials have often government must put in place measures that will prevent the use likened this threat to a monster whose head, once cut off, is of agricultural funds for partisan political purposes. The local quickly replaced by a new one. But no one in the global terrorist and midterm elections are two years away. Politicians should hierarchy has achieved the notoriety of Bin Laden, and his killing disabuse their minds from the idea of using agricultural funds is a major blow to the forces of violence. The world can allow for campaign purposes. The last thing the Aquino administration itself a moment of celebration before returning to the task of should want is to have its own version of a fertilizer scam. battling a continuing threat and confronting the roots of extremism.

NBI to investigate politicians in seized black Fertilizer fund mess: 3 accused post bail book Three former public offi cials who have been implicated in The National Bureau of Investigation said it would in- the P728-million fertilizer scam posted bail at the Sandi- vestigate the involvement of powerful politicians and top ganbayan on May 16. government offi cials in Mindanao who were named in the black book seized from car smuggling suspect Lynard Al- Former Catanduanes governor Leonardo Verceles Jr. who lan Bigcas. is facing a graft case paid P30,000 for his temporary liberty. Former congressmen Nanette Castelo-Daza of Quezon City The black book was made public during the hearing of the and Carmencita Reyes of posted bail in the House committee on ways and means led by Ilocos Norte Rep. amount of P60,000 each on charges of technical malversation Rodolfo Fariñas, which was investigating the smuggling of luxury apart from violation of the anti-graft law. The 3 were the fi rst vehicles, some of which were stolen from the United States, into batch of respondents to appear before the anti-graft court and the country. NBI Northern Mindanao Regional Director Jose to post bail for their provisional liberty after their cases were Justo Yap said, however, that it was premature to conclude that raffl ed off to several Sandiganbayan Divisions on May 13. Mr. they were involved in smuggling. The names in the black book Verceles, Ms. Reyes and Ms. Daza were named as benefi ciaries included Zamboanga Sibugay Gov. Rommel Jalosjos, Sultan Naga of proceeds from the sale of fertilizer intended for farmers. The Dimaporo (Lanao del Norte), Mayor Mutalib Dimaporo, a certain Ombudsman ordered the fi ling of charges against them last Col. Pimentel, Messrs. Bullet Jalosjos, Noah Dimaporo, Edward month after years of conducting an investigation into the alleged Emillan, Boy Plaza, and Ms. Hannah Toronto. Mr. Yap said the fertilizer fund anomaly involving public funds. It also ordered NBI could not simply accept Mr. Bigcas’ explanation without the fi ling of plunder charges against former Agriculture secretary further investigation; Mr. Bigcas claimed that the people named Luis Lorenzo and former undersecretary Jocelyn Bolante. had merely asked him to canvass for prices of motorcycle spare The former administrator of the National Food Authority, parts in the United States. An NBI raid on Mr. Bigcas’ warehouses now Bohol Rep. Arthur Yap, has defended the procurement in Cagayan de Oro City and Bukidnon on May 3 yielded several of fertilizer in May 2003 by the NFA for the Department of luxury vehicles and motorcycles and fi rearms and ammunition. Agriculture. In early 2004, the Commission on Audit reportedly called Rep. Yap’s attention to the P428-million procurement. A

Philippine Alert May 2011 18 POLITICAL

Philippine authorities, together with agents of the US Federal Unfortunately, the Philippines is in a very weak position. With Bureau of Investigation, have found that the 25 vehicles seized a decrepit military and a practically non-existent air force and are covered by certifi cates of registration obtained from branches navy, the country can only invoke its defense alliances, notably of the Land Transportation Offi ce in Lanao and Bukidnon. The with the world’s remaining superpower. The latest incident in LTO branches, according to Bureau of Customs offi cials, were not Kalayaan occurred as the US aircraft carrier Carl Vinson was authorized to register imported vehicles. Customs offi cials also approaching Philippine waters for a port call in Manila. It was said the vehicles were not covered by documents to prove payment the fi rst visit in the country of the Carl Vinson, whose most of required import duties and taxes. Only 2 LTO satellite offi ces recent mission was to bury terrorist leader Osama bin Laden have been singled out. It shouldn’t be impossible for offi cials of the at sea. No country should keep depending on another for its LTO and the Department of Transportation and Communications own defense. These days America has many other confl icts to trace the sources of those spurious registration papers. to confront: Iraq, Afghanistan, political turmoil sweeping the Apart from involvement in vehicle smuggling, LTO Arab world, piracy in Somali waters. In addition, Washington personnel are also widely believed to be involved in carjacking is busy assisting in numerous humanitarian crises around the operations, together with some law enforcement elements planet. The last thing it wants is to get entangled in a messy and owners of garages where engine and chassis numbers are confl ict with China over a third-party’s interests, in this case the altered. Philippine law enforcement authorities should cast a Philippines. Washington has promised to stand by its ally if it wider net, zeroing in on infl uential personalities suspected of faces external threats, but the realities of geopolitics may force it smuggling vehicles in other parts of the country. The LTO should to compromise on its promises. For the day-to-day requirements also increase its cooperation with law enforcement agencies. of protecting national territory, the Philippines needs to develop its own capability for credible defense-but needs money to do it

China announces naval build-up to enforce claims

China says it is adding 36 new ships over the next 5 years to beef up the enforcement of the country’s vast maritime claims in the South China Sea.

China Marine Surveillance says it will add 1,000 offi cers this year to raise staffi ng to 10,000 and will buy 36 new ships over the next fi ve years. The offi cial China Daily reported Monday that the agency now had 300 vessels of all types, along with 10 aircraft. The paper said the increased capacity was needed to deal with a rising number of disputes involving China and other countries that share overlapping claims to the waters and island groups in the South China and East China seas. The Philippines said in March that it planned to acquire patrol ships, aircraft and an air defense radar system to assert its claims. Last March, Chinese navy gunboats chased away a Philippine National Oil Company exploration ship conducting a study on possible energy resources around Reed Bank off Palawan. More recently, it was reported that Chinese Mig-29 fi ghter jets passed ominously close to 2 turboprop planes of the Philippine Air Force near the same area. Beijing has a formal claim over the South China Sea, parts of which the Philippines and several other countries are also claiming. The Chinese are increasingly backing their claim with military muscle as they build up a defense capability commensurate with their economic power.

Philippine Alert May 2011