POLITICAL 11

VP Binay’s rating drops to record low Vice President ’s satisfaction ratings dropped to a record low in the third quarter of the year while the scores of other top government offi cials improved, according to the latest Social Weather Stations (SWS) survey.

ccording to the SWS survey 70 % of respondents said they were satisfi ed with the Vice President while A17% said otherwise, for a net rating of +52. The Vice President’s score declined by 15 points from +67 (78% satisfi ed and 11% dissatisfi ed) posted in the second quarter. Despite the decline in satisfaction ratings, VP Binay still rated highest among the top 5 government offi cials. President Benigno Aquino lll’s net satisfaction rating in the third quarter improved by 9 points to +34 from +25 recorded in June but this is still lower than the Vice President’s +52 Senate President Franklin Drilon’s rating improved by 16 points to +36 from +20 in June. House Speaker Feliciano Belmonte Jr.’s score rose by 11 points to +13 from +2. Meanwhile, Chief Justice Maria Lourdes Sereno’s ratings improved by 4 points to +10 from +6. Meanwhile, the rating of the Aquino The satisfaction ratings of government institutions also administration’s cabinet also improved to +18 from +7. improved. Despite the decline, the Vice President said he remains grateful The Senate’s rating rose from +12 to +12 while the House for the “very good” rating he received from the Filipino people. of Representatives’ improved to +21 from +13. The Supreme Court received a net satisfaction rating of +32, a slight improvement from +30 recorded in the second quarter of the year.

Philippine ANALYST September 2014 12 POLITICAL

WINNING EDGE ISSUES/CONCERNS

Executive background; led Makati to fi nancial independence; Traditional politician; graft charges; made Makati his support from Makati’s sister cities; popular advocacies: fi efdom; association with Erap; reportedly lobbied for mass housing and OFW welfare; asked Congress to cancel Gen. Garcia (ex-military comptroller with plunder case); his pork barrel allocation under 2014 budget; “pork-less” allegedly overpriced parking building; allegations that he budget for 2015; consistent and effective campaign line used dummies to acquire business and properties (e.g. in 2010: to replicate nationwide what he accomplished in Batangas property) mishandled contretemps with his Makati City son: “Show a little respect.”

BLUE RIBBON INVITES VICE PRES. BINAY

The Senate Blue Ribbon committee has issued a formal invitation to Vice President Jejomar Binay for him to attend a hearing on Nov. 6 in connection with the allegedly overpriced parking building constructed by the city government of Makati when he was still its mayor. In his letter to the Vice President, Sen. Guingona gave his assurance that the committee will “extend courtesies befi tting the Offi ce of the Vice President.”

The Vice President previously said that the hearings conducted by the Senate Blue Ribon sub-committee were politically motivated. VP Binay said the hearings are meant to destroy his reputation and also derail his chances of winning in the 2016 presidential elections.

VICE PRES. BINAY FREE TO LEAVE CABINET – PRES. AQUINO

Vice Pres. Jejomar Binay is free to leave the Cabinet if he does not like the way the government is being run, according to Pres. Aquino. “If he thinks we are going in the wrong direction, he is free to leave,” President Aquino said. The president made the statement in light of a Senate Blue Ribbon subcommittee that is currently investigating reports of alleged overpricing in the construction of a parking building in Makati, where the Vice President was previously the mayor. The subcommittee is currently conducting hearings to investigate reports that VP Binay allegedly used dummies to illegally acquire properties, including a vast family resort in Batangas. Vice Pres. Binay has repeatedly denied the accusations, saying they were part of a demolition job by administration allies (including fellow cabinet secretaries) to ruin his chances in the 2016 polls.

“The numbers are surprising. Despite the toxic atmosphere In an interview, Vice President Jejomar Binay said that Interior brought about by the kangaroo court of the senate and the Secretary is one of the masterminds behind “Oplan incessant attacks by political detractors, he still outperforms Stop Nognog 2016,” a campaign allegedly hatched to lower VP the rest of the fi eld. It really goes to show that it’s hard to Binay’s ratings and destroy his chances of winning the presidency put a good man down,” vice presidential spokesperson for in 2016. “They want to show that I am not fi t to become President. political concerns and Cavite governor Jonvic Remulla said Then they will fi nd ways for me to be put in jail, to be impeached. in a statement. Gov. Remulla added that the results of the They are doing all of these things to prevent me from running latest SWS poll makes VP Binay “more committed to bring or becoming President of our country,” VP Binay said. Interior the issues directly to the people and perform his duties.” secretary Roxas has vehemently denied VP Binay’s accusation. Vice President Binay has been linked to several controversies. Sec. Roxas’ allies also disputed the allegations, saying He and his son, Makati Mayor Jejomar Binay Jr. are facing graft the Interior secretary has no time to be involved in the and plunder complaints before the offi ce of the Ombudsman for supposed demolition jobs against the Vice President because allegedly pocketing kickbacks from the construction of the Makati he is preoccupied with his tasks as a Cabinet secretary. City Hall Parking Building ll. The Vice President has also been “Secretary Roxas would never be involved in such so-called accused of owning a 350-hectare agricultural estate in Batangas. demolition job because for one, he doesn’t need it and two, he Recall that a Pulse Asia poll conducted from September is too busy with his job as DILG Secretary and has no time for 8 to 15 also showed that VP Binay’s rating dropped to 31% such nonsense,” Western Rep. Mel Senen Sarmiento, from 41% in June. Despite a 10-percentage point drop in secretary general of the ruling Liberal Party, said in a statement. his rating, Vice President Jejomar Binay remains as the top contender for the 2016 presidential elections. The decline is attributed to allegations that VP Binay received kickbacks from various Makati projects when he was the city’s chief executive. VP Binay’s rival in the 2010 elections, Interior and Local Government Secretary Mar Roxas, came in a far second with 13%, up from seven percent in the previous survey. Sec. Roxas jumped to 2nd spot from 4th place in June.

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Net Satisfaction Ratings Net Satisfaction Ratings Vice President Jejomar Binay Senate President Franklin Drilon

80 +76 +73 80 +70 +69 +67 70 +62 +62 70 60 +52 60 50 50 +37 40 40 +36 30 30 +25 +17 +20 20 20 10 10 0 0

Philippine ANALYST September 2014 14 POLITICAL

Net Satisfaction Ratings Net Satisfaction Ratings House Speaker Feliciano Belmonte Jr. Chief Justice Maria Lourdes Sereno

30 35

25 30 25 20 +18 +15 +16 +16 20 +17 +16 15 +13 14 +11 15 +13 10 +9 +10 10 +6 +4 5 +2 5 -1 0 0

-5

The fi rst two are subsidiaries of the state-owned Philippine President Aquino approves closure of 7 National Oil Company (PNOC) while the latter fi ve are subsidiaries nonperforming GOCCs of the Philippine National Construction Corporation (PNCC). The GCG recommended the abolition of PNOC-AFC President Aquino has approved the closure of 7 nonperforming and PNOC-DMC in the 3rd quarter of this year “as they and dormant government owned or controlled corporations are no longer achieving the objectives and purposes for (GOCCs) following the recommendation of the Governance which they were originally designed.” ASDI, DCBGSI, Commission for GOCCs (GCG). The GCG is the primary CDCP-FC, TCPC, and TFC, on the other hand, were regulatory agency for the country’s GOCCs. The GCG abolished since they were non-operational corporations. In a statement, GCG said it will convene inter-agency Technical is mandated to evaluate the performance of GOCCs and Working Groups (TWGs) that will implement the abolition/ determine their relevance with current national development dissolution such as: winding down of operations, disposition of goals and economic realities. assets and liabilities, closing of books, and the transfer of functions. Affected offi cers and employees will be given due benefi ts and The seven GOCCs that will be closed are the following: separation pays pursuant to civil service rules and other existing laws.  PNOC Alternative Fuels Corporation (PNOC-AFC); For PNOC, the GCG expects that the closure of  PNOC Development and Management Corporation (PNOC- its two subsidiaries will mean improved efficiency in DMC); operations and annual cost savings of P210 million.  Alabang-Sto. Tomas Development Incorporated (ASDI); Meanwhile, PNCC is expected to gain at least P237 million with the dissolution of its non-performing subsidiaries.  DISC Contractors Builders and General Services Incorporated Since its establishment as the government’s central advisory (DCBGSI); and oversight body over the public corporate sector in 2011, the  Traffi c Control Products Corporation (TCPC); and GCG now has abolished 20 dormant or nonperforming GOCCs  CDCP Farms Corporation (CDCP-FC) and Tierra Factors and has classifi ed 20 more as inactive or nonoperational. It Corporation (TFC). continues to study and monitor GOCCs to ensure that the sector becomes a signifi cant tool for economic growth and development.

BACKGROUNDER: GOCC GOVERNANCE ACT OF 2011

President Benigno Aquino lll revealed in his fi rst State of the Nation Address (SONA) that top executives of Metropolitan Waterworks and Sewerage System (MWSS), a GOCC, receive excessive allowances and bonuses (e.g. rate rebasing bonus, privatization bonus, family week allowance, GOCC incentive, etc.) despite losing P3.5 billion and P2.9 billion in 2008 and 2009, respectively. This prompted Pres. Aquino to release executive orders (EOs) in 2010 and 2011 which effectively suspended the allowances received by members of GOCCs’ and GFIs’ directors or trustees.

Senate President Franklin Drilon was the principal author of the GOCC Reform law. “The abusive practices of the board as you have seen in the MWSS, which grants 36 months pay for 12 months of work or GSIS where the directors would earn a million for attending one board meeting and a manicurist appointed as member of the board of trust fund, all of these practices will no longer now be possible,” Sen. Drilon stressed during his sponsorhip speech.

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The GCG was conceptualized in the swirl of irregularities and charges of corruption that adversely affected the image of GOCCs in the past. Foremost among these were issues of unregulated bonuses and salaries granted by GOCC boards to their executives and directors as well as charges of graft and corruption in other GOCCs. Among the regulatory and policy milestones the GCG has instituted in the previously unregulated GOCC sector are the following:  Issuance of a Fit and Proper Rule for GOCC directors and offi cers;  Institution of the Code of Corporate Governance, Ownership and Operations Manual for the entire GOCC sector; and  Initiation of performance scorecards and various good governance conditions for its directors and offi cers. The GCG has also reported that it was able to successfully bid out its Integrated Corporate Reporting System (ICRS) which will become the central repository of all fi nancial and non-fi nancial information on the GOCC Sector. GCG also completed its compensation study for the development of the Compensation and Position Classifi cation System (CPCS) which shall ensure the just and equitable wages of all GOCC personnel. Upon approval of the President and the implementation of CPCS, the Salary Standardization Law will no longer be applicable to GOCCs’ Directors, Offi cers, and employees.

President Aquino approves P167.9-billion rehabilitation plan for Eastern Visayas

President Aquino has fi nally approved the P167.9-billion rehabilitation master plan for communities devastated by typhoon Haiyan in Novermber last year.

According to Presidential Communications Operations Secretary Herminio Coloma Jr. the Comprehensive Rehabilitation and Recovery Plan (CRRP) aims to “build back better” the resettlement, infrastructure, livelihood, and social services in 171 cities and municipalities ravaged by the powerful typhoon. “Upon the recommendation of the Presidential Assistant for Rehabilitation and Recovery and the favorable endorsement of the National Economic Development Authority, the President approved yesterday 29 October 2014 the 8,000- page Yolanda Comprehensive Rehabilitation and Recovery Plan, which outlines the National Government’s commitment to implement over 25,000 rehabilitation and recovery specific plans and programs and activities,” Presidential Communications Operations Office Secretary Herminio Coloma, Jr. said in a statement issued on Wednesday. According to Sec. Coloma the recovery plan focuses on long- term and sustainable efforts to reduce vulnerabilities and strengthen the capacities of communities to cope with future hazard events. The rebuilding efforts require a total amount of P167.9 billion aimed at restoring infrastructure, settlements and basic community facilities, livelihood, and the resilience of vulnerable communities, Coloma said.

Philippine ANALYST September 2014 16 POLITICAL

The P167.9 billion is broken down into P35.1 billion for infrastructure; P26.4 billion for social services; P75.7 billion for resettlement; and P30.6 billion for livelihood. The approval of the rehabilitation master plan is expected to help expedite the implementation of rehabilitation programs in Eastern Visayas. Several organizations have criticized the Aquino administration over its purportedly slow response to the natural calamity. The slow rehabilitation efforts has been identifi ed as one of the reasons behind the decline in President Aquino’s satisfaction ratings. According to the Social Weather Stations President Aquino’s net satisfaction rating for the third quarter of the year rose to +34 from the record low +25 in June. Despite the improvement, the +34 rating still pales in comparison to the record-high +67 the president received in August 2012 and the +60 in September 2010, barely 3 months after he was sworn into offi ce. Meanwhile, there are reports that former senator and now Presidential Assistant for Rehabilitation and Recovery (PARR) Panfi lo Lacson has admitted that he is thinking of resigning because of his frustrations with the limited power granted him as rehab czar. “I don’t have implementation authority. I don’t have a budget, three consultants under government payroll, no capital outlay, no MOOE (maintenance and other operating expenses), and probably the only czar of its kind. A superman, if you will, without power,” the former senator said. Senator Lacson has the most diffi cult task, and that is to put Leyte and other provinces ravaged by typhoon Haiyan back on the map. He should be given emergency powers to fast-track reconstruction.

House approves 2015 budget

The House of Representatives has approved on third and fi nal reading House Bill 4968 which provides for a P2.606 trillion budget of the national government for 2015. The timely approval of the national budget prevents the government from reenacting the 2014 General Appropriations Act (GAA).

Rep. Isidro T. Ungab (3rd District, Davao City), Chairman of the Committee on Appropriations, lauded House members for working hard at ensuring the approval of the budget by the House on time. The approved measure will eventually be transmitted to the Senate. “We congratulate the passage of the 2015 budget on third and fi nal reading. The P2.606-Trillion budget is a budget that is intended to deliver the much needed projects and services to the country for inclusive and sustainable development,” Rep. Ungab said. Rep. Ungab said the list of Top 10 departments that received the largest allocation did not change as the adjustments were minimal to affect their total budgets. The final budgets of the Top 10 departments are: 1. Department of Education (DepEd) P365 Billion 2. Department of Public Works and Highways (DPWH) P300.5 Billion 3. Department of National Defense (DND) P144 Billion 4. Department of the Interior and Local Government (DILG) P141.1 Billion

Philippine ANALYST September 2014 POLITICAL 171

5. Department of Social Welfare and Development (DSWD) P109 Billion 6. Department of Health (DOH) P102.2 Billion 7. Department of Agriculture P88.8 Billion 8. Department of Transportation and Communications (DOTC) P59.5 Billion 9. Department of Environment and Natural Resources (DENR) P21.3 Billion 10. Judiciary P20.3 Billion. The P2.606 trillion proposed budget is in fulfi llment of the Aquino administration’s commitment to further facilitate rapid, inclusive, and sustainable growth in the country. It is 15% higher than the current year’s P2.265-trillion budget. Per sectoral allocation, social services continues to take the lion’s share of the proposed 2015 budget, attesting to the Administration’s continuing pursuit of its antipoverty goals. Social protection and welfare services - which include the provision of basic education and universal health care - account for 37.1 percent of the proposed expenditure program, with P967.9 billion now devoted to the sector. Education will receive the biggest share of the 2015 national budget with P365 billion. The funds will be used to build 31,728 classrooms and repair around 9,500 dilapidated ones. The government has also set aside funds for the purchase of nearly 71 million textbooks and the hiring of 39,000 additional teachers for next school year. The Health department’s budget will be increased from P90.8 billion currently to P102 billion. A portion of the funds will be used to upgrade rural health stations and rehabilitation centers. The government has also set aside funds for the PhilHealth coverage of 15 million indigents and around 6 million senior citizens. The economic services sector continues to play a crucial role in the President’s inclusive growth agenda. For 2015, the government is allotting P700 billion to this sector. According to the Department of Budget and Management some P560 billion has been allotted for various infrastructure projects, including the construction and rehabilitation of roads, bridges, and integrated transport systems nationwide. The infrastructure allocation represents 4% of the country’s GDP. The Budget department said spending will increase to 5% of GDP in 2016. Speaker Feliciano Belmonte is optimistic that the 2015 national budget, when implemented, can help accelerate GDP growth and distribute more projects to the countryside. This is in line with the Aquino administration’s goal of fostering “inclusive growth” or economic growth that provides jobs and livelihood to Filipinos. Meanwhile, Budget secretary Florencio “Butch” Abad stressed that the current administration has implemented some crucial budgetary reforms that intend to make public spending “more transparent, accountable, and participatory.” These reforms include the Zero-Based Budgeting, the disaggregation of lump-sum funds, Grassroots Participatory Budgeting (previously known as Bottom-Up Budgeting), Performance-Informed Budgeting, and the General Appropriations Act (GAA)-as-Release-Document regime, as

Philippine ANALYST September 2014 18 POLITICAL

well as other information technology and digitization initiatives. Sec. Abad added that these innovations put the Philippines on the global map for public spending reform, and the international community has since hailed the country as a “pioneer in budget transparency and openness.” The Congress remains on track in approving the national budget before the end of the year. This prevents the government from re-enacting the 2014 General Appropriations Act (GAA). All national budgets under the Aquino administration were approved on time, thus getting rid of the corruption-prone system of re-enacting previous GAAs. While frontloading the P2.6-trillion budget, the government must also make sure that safeguards are in place to ensure the efficient spending of public funds.

Philippine ANALYST September 2014