.
But their hopes have been dashed when sources close to Aquino relayed the message that Romulo would be retained.
It’s demoralization time again for the country’s global frontliners.
It’s bad enough that Romulo is incompetent. What is worse is that he has been the face of the Arroyo government to the world throughout these years of corruption and human rights violations. He defended Arroyo in international fora amidst accusations of cheating in the 2004 election, extra-judicial killings, and massive corruption.
If Aquino pushes through with plans to retain Romulo, the same face will represent his government to the world.
Is this the change that Aquino promised?
I don’t know how Romulo finally got the nod of Aquino. Last week, he confided to an undersecretary it was unlikely that he would be retained because there are many others who are being considered for the position.
One of the names recommended and was reportedly turned down by Aquino was former Ambassador to the United States Albert del Rosario.
In fact Romulo promised his favorites undersecretaries, Erlinda Basilio for policy and Esteban Conejos for migrant affairs, that he would work for their retention even if he didn’t make it.
Romulo maybe incompetent in running the department of foreign affairs but he is a master of self-preservation and advancement. His “You have my vote” declaration when Aquino announced his presidential bid last September must have clinched the job for him in the new administration.
But that declaration was an unprincipled stand and sheer opportunism because Romulo at the same time said, “I am standing by the President until the end of her term and beyond.”
Yes, he continued defending to the world Gloria Arroyo, whom Aquino promised to investigate for the string of anomalous deals concluded by her government.
He said democracy under Arroyo was “strong and vibrant.” He also said, “I am confident that in the end, our people will choose a leader who will build on the legacy of President Gloria Macapagal-Arroyo.”
Romulo bucked calls for his resignation with “I will continue to discharge my duties with utmost integrity, professionalism and loyalty which have been the hallmark of my long years of public service.”
Aquino should ask members of the Union of Foreign Service Officers or UNIFORS. In their statement of concern September last year over the relief of UNIFORS president Victoria Bataclan from her duties as Assistant Secretary for the Office of European Affairs because she opposed the illegal appointment of Conejos to a post in Geneva, the foreign service corps said, “ His (Romulo’s) grasp of foreign affairs leaves much to be desired and decisions on important foreign policy issues are, if not ambivalent, absent and many times have led to embarrassment.
“He runs the DFA like his fiefdom, often deciding the fate of the officers and staff without the benefit of consultation. He uses the Department’s limited resources for unnecessary expenditures, most glaring of which are frequent foreign trips in the guise of promoting better relations but are actually jaunts,” they said.
They further said, “ It is therefore not surprising that among the rank and file, there is widespread discontent and loss of confidence on his ability to lead the DFA, a fact that the Secretary probably does not realize because he is not in touch with them.”
Told about Aquino’s plan to retain Romulo, DFA officers were very disappointed. “I thought Noynoy said he will only have the best and the brightest, let alone change. Is he aware of his (Romulo) performance? “
The officer said Aquino might have been swayed by columnists who sang praises to Romulo. “Please ask them what good work Romulo has done to the DFA?”
A retired ambassador said, “If it happens, I grieve for the DFA and the Philippine foreign service and diplomacy.”
He said Aquino should be well advised on the impact of his retaining Romulo. He can start by talking with officers of UNIFORS
The idiot must go indeed… Let’s hope Aquino is a good judge of character and that he’ll see that this Romulo idiot is the laughingstock in the diplomatic world.
Until this point, everything is still speculative. . . smoke and mirrors. . . a lot of disinformation going on between ‘interested’ applicants and incumbents. . . maganda yan para di mahimbing tulog nila. . . 😛
Noynoy should consult the best people in the know on Romulo’s performance as Secretary of Foreign affairs before making his final decision. His choices for government posts should be based on accomplishments, qualifications and character.
He should not make the mistake of replacing everyone in government just because they happen to be under Gloria Macapagal Arroyo’s administration. This kind of move had created havoc in certain regions in Pinas after Ferdinand Marcos’s reign wherein government posts were indiscriminately revamped.
Magmumura uli ako pag nagkataon! Don’t ever make a mistake of retaining this hinayupak na Bert Romulo or hindi ko sila patutulugin sa mura total nagmomonitor sila sa Ellenville. Sans hindi at nang makapahinga naman kami…
What can I say? This Romulo is not only a disgrace to his father’s integrity but also to the Filipino people.
He is the epitome of a true lapdog, tuta ni Gloria! Parroting Gloria’s line about Philippine democracy is the worst thing I’ve ever heard from a diplomat.
Out!
henry90, not everything is speculation. Deles and Soliman’s soon to be appointments or reappointments have been confirmed. These choices do not show change at all. They are recycled Gloria people who have spotty records. It does not speak well of Aquino of being a good judge of character. If Romulo’s appointment is true, that is number 3. Very disappointing.
Pakiusap ko sa iyo Noynoy…Please release Romulo and let him go…he is a liability…waay pulos!
If it’s true, very disappointing indeed.
Sapagkat maraming kumokontra kay Romulo bilang DFA secretary, baka naman makinig si Noynoy at si dating SCCJ & UN Ambassador Davide ang siyang italaga. Natalo kasi yung anak sa Cebu, baka bigyan ng konting pa-consuelo de bobo dela yuca.
Sa DepEd, may balitang umuugong sa Ugong, Pasig na posibleng i-retain si Jesli Lapus. Pero may grupong kumokontra dahil kamag-anak nga naman, bad to look at.
About DFA Romulo, tama na, iba naman..maraming mas-bata-bata pa sa kanya na dapat mabigyan ng break !.Marurunong sila, at
mas-mahusay ( sa LA consulate mayroon nito, batang-bata, nag-papahinog pa yata ). Mula ki Mcarthur-Quezon admin, laging Romulo na lang, wala na bang iba, na pweding mag-karoon ng BREAK. Mag-pahinga na si Tatang Romulo at may isa pa yatang uli-aning ninombrahan sa Germany, na 87-years old. Bigyan sana nila ng pansin ang pag-ka-retiro ( adviser siguro pwede, ngunit, give chance to others na deserving ).
i recall Bert Romulo was one of the earliest gma cabinet member to declare support to Noynoy, however this should not be his passport to being retained his credibility and performance must be the measure.
btw, foreign dignitaries like China, America, Australia,Japan, Spain and many others were already paying courtesy calls to Pres elect Noynoy while Phil Tongress shamelessly engages in delaying tactics
28 May 2010
Yes I agree that romuo has to go.. But please bear in mind it is also UNIFOR’s doing that romulo will be retained, except for vicky bataclan, no other members of the unifors really came out in the open and complained romulo or went aganist the will of romulo.
All members of the UNIFORs are the same to those who are asking noynoy for cabinet post, they are all the same. kanya kanya silang sipsipan, to each his own yang mga unifors.
for instance, why do they (unifors) allow a rotten ambassador who is overstaying somewhere in ASEAN country to stay longer and leave their staff in that embassy goes demoralized? kasi nga malakas sumipsip kay romulo.
What I know is he is already sending correspondence to mr. villacorta, the adviser of noynoy on foreign affairs, if I were mr. villacorta, I will be careful in dealing with this ambassador, kasi nga balimbing, sobra kabalimbingan nitong ambassador na ito.
Ang pinagmamalaki pa nito ay palaging daw sya extended ni romulo dahuil sa magaling daw sya pero, pulos kasipsipan naman ang alam.
prans
Reyp:
Soliman and Deles’ appointments have been confirmed by Aquino himself. The others, like Ex-Solgen Chavez’s claims that Nonong Cruz and Simeon Marcelo’s supposed lobbying for the justice and JBC portfolios, were proven to be without basis. Ergo, unless Aquino himself announces it, everything else is speculation. That’s what I meant.
Thanks. 🙂
Just to make it clear:
The current foreign secretary, Alberto Romulo is NOT the son of the Carlos P. Romulo. He is the nephew.
CPR’s son is Roberto R. Romulo, who was also foreign secretary during the Ramos administration. RRR, as we call him, was one of the respected secretary of foreign affairs for his competence,professionalism and appreciation of the importance of foreign relations.
Aquino himself said that he’s going to appoint career officials to head departments, why he even floats the name of this Gloria loyalist beats me? Get one DFA career official who knows what the foreign office is all about! Bert Romulo does not even know his mouth from his ass!
Baka nga ibalik pa nya si Davide, Joeseg. Paktaylo na ang kuya ni Kristeta.
28 May 2010
As an additional inquiry, shouldn’t all ambassadors also resign in their posts, as they are also appointed to become ambassador by the president, the only difference with so called political appointees is they are from the outside.
But what I understand, is they also become an appointee once they are “APPOINTED” by the president to represent him/her to another country? that is why the word “appointed” is used for confirming them as ambassador.
If they are retained/if not accepted good for them, anyhow, all ambassadors are already playing politics.
there are a lot of overstaying “so called career” ambassadors now, shouldn’t they also tender their resignation, or shouldn’t they be recalled, anyway embassies can have an acting ambassador or CDA, right?
what is your take on this ellen?
prans
hindi ba ang mga appointed cabinet members ay magtender ng courtesy resignation? courtesy lang sa bagong boss..pero talagang walang hiya ata ang mga appointees ni putot..hindi ba dapat mag resign din si Neri kung may hiya siya? talagang wala ata…ganoon din si Davide?
If recycling is the game of Noynoy, it doesn’t surprise me. He is just following the footsteps of her mother. Cory did not recycle people because in the first place, there’s nobody to recycle but she put almost all people without regards to quality and whose only qualifications are against the rule of Marcos and being alongside with her in her campaign with the exception of Enrile who started it all and Laurel who gave way to her just like Mar Roxas to Noynoy. She filled the whole country with OICs as bayad-utang. Most prominent of them all is Binay who was appointed as OIC in Makati and carried by campaign staff of Noynoy in the VP race at the expense of Roxas and soon to be proclaimed as the winner.
Sa kaso naman ni Noynoy marami siyang mare-recycle dahil lahat ng mga daga na tumalon sa barko ni Gloria ay pumunta sa kaniya at tinanggap naman niya ng buong puso at pagmamahal. Si Romulo, hindi tumalon pero he let it be known to one and all that he’s for Noynoy, kahit na nakasilong pa siya sa palda ni Gloria, which until now puzzles me no end how he was able to do his thing and got away with it.
These people one way or another helped him in his campaign and being part of the winning team they expect a share of the spoils. Now its payback time and he is in a situation where he has almost no choice but to accommodate everybody. But if he is his own man as he said and walk his talk during the campaign that will not pose any problem at all. No sweat. It will be just a walk in the park but with a big IF.
To him, this is the best time to show and prove what stuff he is made of, if he has a strong character needed to be a leader that can lead the country out of the woods.
This is just one chance in a lifetime so he should make the most of it, to lead, as Lincoln said “a government of the people, by the people and for the people”.
Kung kay Erap pa, “Weder-weder lang?” 🙂
Yes, Madam Chi, umaasa ako sa sinabi ni Aquino na may priority ang career officials to head the departments.
Naglilipana ang mga press releases ng mga gustong mag hold over sa position sa term ni Aquino pagkatapos magpapasasa kay GMA. Mga indirect way para parating kina Aquino na gusto pa nila sa pwesto nila. Ang palagay ko ma retain si Romulo pero sa DBM malalagay, hindi sa DFA
SA ngayon wala pang definite except si Soliman. Kahit na nga yung search committee hindi pa alam kung sino ang uupo.
sionil jose is correct, Noynoy must seek out good men, because really good ones are those who don’t ask and fight for the position,
Noynoy doesn’t have to change the whole team just because we don’t like them. I don’t believe we have the resources to even judge these people accurately, we’ll just have to trust in our leader and do our own jobs well.
If you’ve ever experienced managing an organization, you don’t just revamp the old set up, you assess it first, you make an inventory of the skillset on hand, performance, experience, professionalism, and check if these will contribute to your organization’s objectives. Then you go deep and personal, you draw the line, which ones are for you and which ones have reservations, then cut.
Its going to be an uphill battle for Noynoy if he will have to reinvent the wheel, he doesn’t have to. He doesn’t need to wipe out the former administration, like God did in the first big flood leaving Noah and sons, our current set up may have a wealth of expertise and experience that only needs proper direction.
Noynoy could even study the past presidents’ strengths and weaknesses…whether we like it or not, Gloria, Erap, Ramos – have strengths…they brought something to the table, they achieved something in their own time.
Gloria has superb international relations performance, not to mention, it was on her watch that we weathered the financial crisis, Erap can talk to people and make them see his vision, believe in his direction, Ramos with his “levelling the playing field” dismantling of monopolies and solving the energy crisis in his time.
Like all men and leaders, they had they weaknesses and shortcomings…but they were leaders nevertheless, more than what we can inspire to be.
If Romulo doesn’t deserve to be retained, can anybody come up with a more comprehensive, solid, position paper as to “why” and not just resort to name calling?
Whether we see it or not, there are people who worked with the past administration that were experts in their fields and were professional enough to work within the bounds of the law and their oath, if they worked for a crooked boss, its not their fault, they gave it their best in the most professional means possible…
…Noynoy will do better if he moves to unite, not divide, improve, not destroy…and we on the other hand, must also work to improve ourselves, achieve, so that collectively we win…its not Noynoy’s job to improve our lot in life, its ours…
Pres Noynoy can utilize facebook and internet to keep his line of communication with people open and constant, and as concrete sign of transparency, maybe a monthly or weekly radio program is also a good start , the power of a president is awesome, Pres Noynoy has the sole power even to pardon innocent prisoners and sending to jail corrupt gov’t officials and criminals, Pres Noynoy must use his power fully for truth, justice and good governance
Henry90, you are correct that Romulo’s case has not been confirmed. I think what is very disappointing and alarming for many is that out of the 2 confirmed, both (100%) are old rotten apples. Hope it will not become a 3 out of 3 or 4 out of 4 rotten appointments or more.
Mabuti hindi ko nadinig kay Noy yan. Not a sign of a gracious winner.
One of the reasons why I supported Erap this time was his cabinet. Pinili ni Erap yung career, at magaling.
Siazon at the DFA (career); Ben Diokno (DBM); Fred Lim, DILG, Justice Cuevas, DOJ, William Padolina, DOST (now with IRRI), Boy Morales, DAR, Mar Roxas, DTI at iba pa.
Ang palpak lang, the Glue, and Orly Mercado (come on Pepsodent, sa Defense?
I hope the search committee can duplicate this.
A DFA official said their information is that Romulo will only stay for one year until Sen Mar Roxas is available to assume the post.
Even so they said, a career officer would be better to be the interim foreign secretary.
I agree. As I said in the article, Romulo has been the face of Gloria Arroyo to the world. There must be a new face to represent the new government, that promised “Change” during the campaign.
lowering of meralco rate and gasoline prices , will be a very welcome first acts of Pres Noynoy. this will immediately be felt and benefit all sectors of the society, this will make Pres Noynoy a great president right away…….
sen ralph recto claimed gasoline prices could be lowered by 8.00 per liter during the campaign, the new administration now has the power to correct this huge overprice of gasolines
lowering of electricity bills and gasoline prices will immediately give positive impact on the lives of filipinos
NBI arrests 5 persons ‘selling’ party-list seats
http://newsinfo.inquirer.net/inquirerheadlines/nation/view/20100528-272454/NBI-arrests-5-persons-selling-party-list-seats
I hope Noy stops this practice. Ano yan, hihiyain? So that the “good guys” like the Glue can have their photo op and gloat?
Fine, so mukhang karumal-dumal ito. But there may be a case where the fellow is innocent. In that case, can the NBI undo the damage? Can they assuage the shame of the family? And what about the presumption of innocence?
The con artists, when found guilty, or even as early as the trial, will have plenty of media attention enough to shame them. There is no need for the NBI to “present” them to the media.
Ang media naman, huwag nang patulan, para lang sa scoop.
Or, if I were made by my boss to attend, I would ask my cameramen to train the lenses on the NBI. Then I would pepper them with questions like:
Anong purpose nang inyong pag-present po? The Constitution guarantees the right of the accused to remain silent. So anong purpose ng pag-present po sa amin?
Kinonsulta niyo ba ang kanilang mga abogado bago iharap sa amin? Nakausap na ba nila ang Public Attorney’s Office bago iharap sa amin?
In what way will the prosecution be assisted by the presentation of the accused to the media?
Hindi ba cruel and unusual punishment yang paghiya? Worse, you do it before they are found guilty.
Kung kay Erap pa, “Weder-weder lang?”
Mabuti hindi ko nadinig kay Noy yan. Not a sign of a gracious winner.
The problem with critics is they don’t see the mote in their own eyes. Pag si Erap ang napipikon, iyan ang malimit nyang sinasabi to justify his ‘presidential prerogative’.
Political bystanders, are quick to the draw to excoriate a perceived lousy choice for a particular cabinet position.
If we come to think of it, ano ba ang napakalaking kasalanan nina Dinky Soliman at Tere Deles, especially Dinky? Not because I’m her apologist, but are her critics objecting to her qualifications for the DSWD post per se or are they objecting to her out of tune singing of ” If We Hold on Together”? If we exhort people to always observe due process all the time, why are we judging the members of Hyatt 10 for jumping ship ONLY when it became clear to them that indeed, Goyang stole the vote via Garci. Let’s face it. Other people have a different threshold of pain before they shout ‘Ouch’. At the very least, they should be commended for displaying a rare defiance of Goyang during those tumultuous times. Conversely, what if Aquino rejected Gen Lim’s running for Senator under his line up because he was a key player in the Dec 89 putsch which nearly toppled his mother’s administration? Oh, I’m sure he would have taken a lot of brickbats in Ellenville.
Suffice it to say that I may not agree with all the appointments that Aquino will make in his cabinet in the following days. That is a decision he alone will make and one that will either haunt or comfort him in the bewitching hour while he is alone by his lonesome self, taking a slow and deep drag of his favorite Marlboro Light menthols pondering the fate of the nation. At the end of the day, only HE, as the Chief Executive, will take the brunt of public opinion for the sins of commission/omission of his alter egos. Having the likes of Diokno, Siazon, Cuevas,and a Lacson in the PNP in his cabinet will not guarantee his stability of tenure in office. Erap has proved that. He is going to sink or swim depending on his personal attributes and level of decision making. Leadership is PERSONAL, the military taught me. It’s either people like you or hate you. There is no in between. 🙂
Ellen – May 28, 2010 6:34 pm
A DFA official said their information is that Romulo will only stay for one year until Sen Mar Roxas is available to assume the post.
__
Oh NO! Kahit isang araw lang, don’t do it or sasabihin ko na buti na lang marunong ako na mag-judge ng karakter! If it happens, a big disappointment to DFA officials and employes. Sige lang Noy, ituloy mo yang ganyan na direction at nang malaos ka ng wala sa oras.
congress is making a big fool of itself by asking questions, most of which should have been asked comelec and smartmatic before the election, they should focus on canvassing which is their main task on hand.
trapos struggling to sound as if they are computer expert only make them laughing stocks.
nene pimentel is pathetic
If we come to think of it, ano ba ang napakalaking kasalanan nina Dinky Soliman at Tere Deles, especially Dinky? – henry
Wala naman akong alam na malaki nilang kasalanan but they were identified with Gloria (once). And that’s enough for me (and some like me) to reject them, remember Gibo?
Isa pa, did Aquino promise change or not? If he did, then even these old faces must be changed or replaced so Pinas can start anew without a trace of Gloria. I may be unreasonable but pinoys expect so much from him that’s why he was elected by 40% of the voting populace. Huwag mo kaming bigyan ng mga lumang pagmumukha, sabi nga ng ate ko na 100% Noynoyan.
Ellen: A DFA official said their information is that Romulo will only stay for one year until Sen Mar Roxas is available to assume the post.
Mar Roxas is a good choice as DFA secretary, talagang ibang mukha yan kapag nangyari. But what interest me more dito sa post ni Ms. Ellen is, talagang bang, inspite of being a dark horse and the black propaganda, si Binay na?
Change is subjective. It can be change in personalities, attitude, governance, etc. Now which Change was Aquino referring to in his campaign trail? Gibo’s case is an entirely different matter. Knowing what Gloria did, he opted to remain with her. Why, he even promised to continue Goyang’s policies. Dinky didn’t. When Garci surfaced, she cut clean and became a consistent critic since then. She might be no saint, but she sure knew her job at DSWD. I will not second guess Aquino, but I’m sure he would want someone to hit the ground running once he assumes office unlike a newbie who will still learn the ropes in office. 🙂
Henry, # 31 If we come to think of it, ano ba ang napakalaking kasalanan nina Dinky Soliman at Tere Deles, especially Dinky?
Remember the P35 billion Peace Bonds?
Will Noynoy also demand accountability for that controversial project?
The people behind that project were all part of his campaign organization.
Henry:
Hindi ako kasali doon sa bumabatikos ukol kay Romulo. Basahin mo uli ang mga posts.
Pine-personal mo naman. Ang batikos, ay tungkol sa kakayahan ni Romulo to perform, hindi kakayahan ni Noy na mamili. The critics have a valid point, as to Romulo’s ability.
The part about change, is to use Noy’s principle (which the electorate agreed to, when they voted him) as a yardstick for measuring Noy’s prospective appointees.
Binanggit ko lang ang mga appointees ni Erap, bilang halimbawa. Tama ang pinili, because of the attributes of the appointees, not because si Erap ang pumili. It is about the appointees, not about Erap.
I do not subscribe to the partisan principle of “my brother right or wrong” (kaya hindi ako sumali ng frat), or in this case, “my candidate, right or wrong”. Objectively, Romulo is a lousy choice. As a secretary of the DBM, he would be passable, pero wala bang batang may kakayahan din?
Calm down. Remember our exchanges in the campaign period? Nakabasa ka na ba ng postko “excoriating” Noy after the elections? Most of my posts have been wishes, or recommendations of what I hope he will do. This thread is about Alberto Romulo, not Dinky Soliman or Deles. I do not even know about Deles. Dinky, I met personally, through her brother Hector. I’m sure I am too inconsequential for her to remember me.
Nakapagpasya na ang taumbayan. Noy is now my president; so we are in the same camp now. But I don’t want to be a yes-man or a cheerleader. A good leader must see the good and bad, in order to better inform his leadership.
The best make-up artist is one who sees what is not good in the face of an actor or actress, so he/she can fix it. Ganyan din ang tingin ko sa supporter. Yung pinakamabuti ay yung franca, at sinasabi kung paano puwedeng pagbutihin ang isang bagay.
I did not vote for your candidate, but I will support our president.
Basic responsibility of DFA, “to protect the rights and promote the welfare of Filipinos overseas and to mobilize them as partners in national development”, i dont think the institution protect the welfare of our OFW’s abroad, especially in Middle East. Although they call them bayani because of their remittances.
Baka naman compromised na talaga yung ibang posisyon ng Gabinete na iiwan ni Gloria. Patatapusin munang asikasuhin yung mga dapat ‘linisin’ na bakas ng anomalya. Hindi na ko excited sa magiging ‘change’ sa pamunuan ni Nyoynyoy. Actually, hindi ako umaasa!
Hintayin na lang muna natin na ma proclaim si Aquino. Hindi rin makaporma si Aquino at wala pang proclamation. Kapag naglabas na yan ng cabinet members bago ma proklama, kukuyugin na naman sya at sasabihing arogante, adelantado, mayabang na kung akala mo maka asta Presidente na.
Kapag na proclaim na, na inaugurate, nag issue na official statement sa composition ng cabinet nya, umpisahan ng kilatisin ang na appoint.
Sa ngayon si Soliman at si Deles pa lang.Kung buhay pa siguro si Boncodin, sure shot din sana. Sa akin okay si Soliman. Dikit dati kay GMA pero nang mabuko ang dayaan, kumalas at siniwalat ang nalalaman. Tsaka cute naman si Soliman!
http://newsinfo.inquirer.net/breakingnews/nation/view/20100528-272610/Palace-proposes-joint-meeting-of-Arroyo-Aquino-Cabinets
In the guise of cooperation, the Glue wants to force Noy’s hand. Inter-cabinet meeting daw, anytime between June 1, and June 20. So now, Noy must make his pick before June 20, before he is even proclaimed.
And what is the value of the meeting to Noy? He can always ask the usecs and asecs when he takes office. Besides, sinibak na o umalis na ang mga secs, like Devanadera. What advice can Noy’s cabinet get from those who have barely warmed their seats?
Paalis na humihirit pa.
Good intention shows high morality, like what Versosa did, he tender resignation to give Sen. Noy a clear choice.
Diba mas ok yung galing sa ranks, yung career officials ng DFA? Ganun din dapat sa NBI, PNP at sa military at sa mga hukom.
Deles and Soliman were at the forefront in the unconstitutional power grab from Estrada. And so they were among the violators of the constitution, and as their rewards, they were made cabinet members of Gloria. But that is now beside the point.
Fast forward to 2004, they supported Gloria’s presidential ran despite various reports of corruption and of course with their knowledge, since she took office, most infamous was the IMPSA deal just two days after she assumed as (acting) president. Their group was also richly rewarded with a 35 billion peace bonds courtesy of Gloria as their reward and one wonders what had happened to that money of Juan. So how clean and straight are these people? Just because they jumped ship and left Gloria they can now be declared as pure gold? For all we know, they jumped ship because there’s too much heat accumulating and they can no longer stand it. They quit not because they are clean and honest as they want us to believe but because of pressure and stink of the hello garci scandal which can no longer be controlled and ignored. And yes, they have jumped ship, but its too late, so much damage had been done to the country under the stewardship of the corrupt Gloria which they vigorously helped installed.
Following their script pattern after the Gloria episode, here they are again, helped Noynoy in his quest for the presidency, and hereafter expecting their rewards for a seat among the chosen ones around a table chaired by Aquino.
To say the least, these people are shameless, opportunistic and predatory animals. And that includes Romulo, the baddest of them all.
Sax:
I agree with you. Walang personalan dito. I am just following the thread here:
“Kung kay Erap pa, “Weder-weder lang?”
Mabuti hindi ko nadinig kay Noy yan. Not a sign of a gracious winner.”
Since you made a comment on my weder-weder quote, sinundan ko lang sinabi mo. It’s obvious wala namang personal sa sinabi mo. In the same token, there was nothing personal doon sa repartee ko. Halo-halo na yung comment ko doon sa mga comment nina Florry, Chi and the others. It was not addressed to you personally, so relax. I dont like Romulo also. What I was giving emphasis on was that until there’s no official appointment, the situation is fluid.
Al even pointed out the reported involvement of Soliman and Seles in the 35 billion peace bonds scam. Wow! That’s huge. If this is true, Aquino should have this investigated and have Soliman et al haled to court pronto!
The alter egos are only as good as the appointing authority. A president may have the best of cabinet secretaries in his team but if the policy guidelines and the body language are like worlds apart, patay tayo nyan. We can only look at Gloria. Hers is like the magic of Midas’ touch, albeit in the negative sense. Lahat ng nahahawakan nya ay natatanso.
I hope this clarifies things. Sabi nga nila, I don’t easily get insulted . Madali lang naman gumanti eh. 🙂
Al – May 28, 2010 9:40 pm
Henry, # 31 If we come to think of it, ano ba ang napakalaking kasalanan nina Dinky Soliman at Tere Deles, especially Dinky?
Remember the P35 billion Peace Bonds?
__
Al, thank you for the reminder…
Noynoy doesn’t have to change the whole team just because we don’t like them. I don’t believe we have the resources to even judge these people accurately, we’ll just have to trust in our leader and do our own jobs well. — Jug
I’m sorry to disagree completely but I believe that in order to turn over a good, new leaf, every single member of the Gloria corrupt cabal of political appointees must not be retained. They must be booted out of govt with finality. They don’t deserve to stay a minute longer than necessary. They’ve caused harm to the country, they’ve abused their power, they’ve enriched themselves, they’ve already impoverished the very poor so enough with dilly dallying.
Haven’t we all been clamouring for a total overhaul government after suffering for 10 miserable, despicable, excecrable 10 years?
Haven’t we been clamouring for change all the time praying, pleading and whatever that the next government would hit the ground running and begin with good governance? How can the new govt/admin under Aquino even begin to do that if he recycles the same old ugly heads that have been the proponents of Gloria’s corrupt and excecrable governance?
The world sees the Philippines as simply one despicable corrupt nation with a corrupt government and corrupt ministers, corrupt members of cabinet anywhere and anyway you look. How can Aquino even begin to convince the world that he means business, i.e., get rid of corruption, and convince foreign investors to take a second look at the Philippines if he only recycles the blithing corrupt men and women under Gloria?
Are we telling the world that there’s nobody else in the Philippines capable of doing the job of running government other the corrupt minions of Gloria?
What kind of message will we be telling not only those people but also our people? That we are a nation of perenial losers?
“Don’t worry messrs foreign investors, same old faces, same old habits, … we love corruption in this country and you’ll get used to it just as you got used to Gloria!”
Condition sine qua non: Get rid of the rascals! The whole lot of them — there are hundreds of qualified people in Pinas with better moral values and better abilities who can do the job better than the goddamn sons and daughters of bitches who propped up Gloria and her corrupt, abusive, useless governance these last goddamn 10 years!
Enough of self-defeating, aimless, useless actions.
Sanamagan! We do this and perhaps we as a nation stand to finally achieve something by way of progress!
Henry: Al even pointed out the reported involvement of Soliman and Seles in the 35 billion peace bonds scam. Wow! That’s huge. If this is true, Aquino should have this investigated and have Soliman et al haled to court pronto!
Will he do this?
I don’t like Soliman but if Aquino likes or loves her and believes she can do the job, fine. But she must do the job, otherwise, if there’s a hint that she’s failing, then she must be thrown away like a dirty piece of rag, otherwise, there must be people power against her.
OOops, “OR there must be people power against her.”
Al:
Why not? Yung fertilizer scam nga ni Jocjoc e P729 million nga lang yun. Eto pa, P35B. Naimbistigahan ba to ng Senado? Bakit parang di ko narinig?
I do not subscribe to the partisan principle of “my brother right or wrong” (kaya hindi ako sumali ng frat), or in this case, “my candidate, right or wrong”. — Sax
Ditto!
I voted for Aquino because he promised to prosecute Gloria (I suppose that’s what he meant by putting closure to all the corruptions in this country committed in the name of the powerful that have been besetting this country) and to start working against corruption.
I voted against Villar when I voted for Aquino for those very same reasons. I support Aquino today, and will support him tomorrow and in the future if he delivers. So far, I’ve been led to believe he will be a different kettle of fish from putanginang Gloria, that he won’t allow himself to be corrupted and will not allow corruption to go unchecked.
So I shall keep an eye on him and will not let my guard down — in other words, I’m not giving him my support blindly nor do I believe that the presidency should be used as a ticket to abuse.
We cannot and mustn’t be complascent, we must be pro-active. In that, I agree completely with Jug that we must do our share and participate in improving this nation’s image. That’s the only way for people in government to halt their shenanigans and instead, improve governance.
The trouble with some supporters are they are more passionate than their candidates, involved themselves too much, too seriously and often blinded by faith and loyalty that they can’t or refused to see something’s wrong and everything’s alright with the actions and words of their man. They take criticisms personally and they defend and justify whatever he does instead of putting him in proper place.
A good supporter should have an open mind. An analysis of what’s going on will tell what is right and what is wrong. Appreciate and praise what is good, in the same way as criticize and put him in a “washing machine” and hang him dry whenever he makes “palpak”. That is not being disloyal to your man but helping him succeed.
Critics are good teachers and their criticisms are always good reminder to the leader that he is heading the wrong way. It’s not being personal but it’s for the sake of the country. We have just one and only Philippines and everybody should join hands to make it succeed and prosper.
Henry, this was investigated by the Senate in 2002, at the time when all those who participated in Edsa Dos could not do wrong and were seen as saviors of the country. Walang pinagka-iba sa dayaaan in the 2004 elections. The elite preferred to turn a blind eye.
It involved Dinky Soliman’s non-government organization: Code-NGO. I remember the group of Prof. Cookie Diokno calling it “rent-seeking”.
Here’s an editorial from Malaya on that issue:
From: Malaya.com.ph
Conspiracy widens
———————————————————————-
Editorial
THE P1.3 billion rip-off of the taxpayers by Code- NGO is apparently more criminally conspiratorial than we imagined. Code-NGO put out yesterday a newpaper advertisement (not in Malaya) and by its own words, it admitted planning with the finance department and coordinating with the Bangko Sentral in inducing the government to borrow P10 billion to raise money for the financing requirements of a purely private organization.
From the start, the so-called Peace (Poverty Eradication and
Alleviation Certificates) bond were conceived and packaged by Code-NGO, with the assistance of unidentified investment bankers, to raise an endowment fund yielding at least P100 million to bankroll Code-NGO’s projects.
Code-NGO also said it made representation with the BSP to make the bonds eligible as secondary reserve deposits to make these more attractive to institutional investors.
Also in the advertisement, Code-NGO said since the bonds were
considered as certificates of indebtedness, not as deposit
substitutes, these were exempt from the 20 percent capital gains tax from secondary transactions.
Now, finally we have an answer why the Bureau of Treasury had to package the IOUs as zero-coupon bonds. It’s not to introduce a purportedly innovative borrowing instrument. It was to exempt Code-NGO from paying tax on its P1.3 billion windfall.
How greedy can some people get! They earned P1.3 billion with “laway” as capital. And they would even bedrudge the BIR its 10 percent share in the profit?
As we suspected, the scam was simple enough. Code-NGO was allowed to snap up the bonds with a bid of 12.75 percent yearly effective yield even as there were lower bids of 11.5 percent. Code-NGO then turned around and sold the bonds at a premium. To illustrate, the government was supposed to raise P10 billion. Calculating on a 12.75 yield on a 10-year instrument, the total face value of the IOUs would be around P35 billion.
With P35 billion worth of steeply discounted papers in hand, Code-NGO then turned around and sold these for P11.3 billion plus change.
Why the hell did the Treasury accept the 12.75 percent offer and pay a 1.25 additional interest from what the market was prepared to accept is the question.
Code NGO cannot claim it was an honest transaction. A P1.3 billion premium on P35 billion worth of 100-year IOUs bought for only P10 billion could only come about if there was a sharp 1.25 percent drop in interest rates between the times of purchase and of sale.
If nothing of that sort happened, Code-NGO made P1.3 billion at our – the taxpayers’ – expense. If Code-NGO says this is not so because the bonds are non-interest paying (zero coupons), we have news for it. If the Treasury had not handed Code-NGO that P1.3 billion windfall, the peace bonds would have a face value of slightly over P30 billion, not the P35 billion which we would be paying 10 years from now.
Poser? Should these thieves be indicted for graft for the actual P1.3 billion damage to the government here and now or for the P4.5 billion damage 10 years from now?
For that’s what zero coupons, reserve eligibility, exemption from
capital gains tax and all these bankers’ gobbledygook is all about.
Smoke and mirrors to hide grand larceny.
Here’s another one from Today,Feb. 11, 2002:
The TODAY Editorial
FROM—or rather at the—start of the CODE-NGO controversy, we were emphatic that the issue of the President’s retaining—or the Commission on Appointment’s rejecting—Finance Secretary Jose Isidro Camacho was separate and distinct from that of the culpability of his sister and her confederates in the peace bond issue whereby the Filipino people were made to incur an inescapable liability of P35 billion while the government lost—and we mean lost—P5 billion in potential tax revenues because it suggested that the bond issue be so structured as to do away with the tax.
(We should all be so lucky with the BIR commissioner.) And all for nothing; not for a needed highway or a necessary war, to cite the usual examples of economists in the proper issuance of government bonds. It was just so that the bondholders could get some P20 billion in interest payments; code-ngo, P1.4 billion as a prize; its front, rcbc, P200 million in fees; and the ones who planned the heist down to the last detail, another P200 million.
All that just so Camacho’s sister and her bleeding heart confederates in code-ngo could feel good doling out some P100 million a year to the poor (plus their own expenses) but always through their favored NGOs on Ayala Avenue. Meanwhile, the Freedom from Debt Coalition estimates that the government, i.e., the taxpayer, will pay P2.5 billion in yearly just to dole out P100 million.
Recently, we learned that Camacho himself had introduced his sister to his underlings to help them decide on key issues relating to the sweetening of the sweetheart bond deal so that it would be—for those in the know—and rcbc and code-ngo were very much so, since they designed the bonds—literally a steal, at the right prices their inside knowledge enabled them to quote.
But, perhaps like Bill Luz of the ethically odd Makati Business Club, we should see nothing improper in that, no more than Mr. Luz saw anything improper, as he said on the talk show Points of View, in the Petron-Shell-Chingkoe tax-credit scam wherein the government was bilked to the tune of P5 billion. (Why is it always P5 billion, is that a magic number?)
Indeed, viciousness is the farthest thing from our nature but rather a generous latitude for the foibles of human nature, especially when it comes in a pleasing aspect. And no one can deny Lito Camacho’s decided advantage in that department, which perfectly explains the President’s insistence on keeping him in a Cabinet where his appearance can only come as a welcome relief beside his fellows. How many times can one take a startled look in the morning?
The plain and simple fact of this issue is that, if all the other bidders had been in the know—and more important in the loop—as rcbc was through its connections with code-ngo—they would all have bid the same. If they were ethical as rcbc was not, they may have bid less by the amount that rcbc paid off its informant and influence-peddler CODE-NGO.
In short, on a level playing field, the deal would have fallen through the grass, with rcbc the first to withdraw because what would have been the point? At any rate, the argument of the presidential spokesman that the losing banks would have been equally unscrupulous cannot be gainsaid but is in any case counterfactual and unacceptable in argument.
But it must be admitted that any bank that wins the Treasury’s weekly auctions does not need to beat impossible odds to do so, though it might need to beat higher odds to corner them all. And certainly all the banks that—for want of enough time and the right inside information—lost out on so sweet a deal as that cooked up by rcbc and code-ngo can only hope that, through the discreet objection already expressed to the President and the assurance already conveyed back to them, every banking dog will have his day.
We never doubted the eleemosynary, nay salutary, even noble purposes to which code-ngo intended to dedicate a windfall profit whose magnitude is up there with that of the biggest corporations in the country. And all without breaking a sweat though, admittedly, expending plenty of saliva or social capital as Dan Songco prefers to call it. But only to invest some of it back in Treasury bonds and converting some of it into dollars as a hedge against the failing Philippine economy under Mrs. Arroyo. (Since these people are so close to President Arroyo, do they know something about the size of an imminent devaluation of the peso? Inside info again?)
Unfortunately, one private group’s charity is not a public purpose for the use of public funds. When the Republic wishes to be charitable it uses the agency it created and spends for: the Department of Social Welfare and Development. When it feels that the department is not up to scratch in fulfilling its mandate, it does not pass on public funds for social purposes to private people to do the job for it. Rather, it fires the fool of a secretary who tacitly admits that an NGO can do much better with a sum that is the equivalent of her entire department’s annual budget.
And, finally, we must decline to be briefed on this sorry excuse of a financial scheme by, on the one hand, its perpetrators and, on the other hand, a former business reporter of the school of business writing that merely repeats rather than explains the usual obfuscations of its usual subjects—big-business men and the public officials in their pockets. As for being briefed by rcbc, there are two problems with that: The first is that one may end up writing a sophomoric and jejune editorial like one newspaper last week.
The second is that the first principle of civil society is that no man shall be judge in his own cause (John Locke).
The proper parties for the accused like rcbc and code-ngo to plead their case to is not the public or the press they have, frankly, robbed but a congressional inquiry, a court of law, and a court of impeachment, if it comes to that. Certainly, no one except his defense counsel, will listen to the thief to understand the crime.
So, nothing baffling here indeed; nothing but the failure of the perpetrators to propose the most obvious solution to this whole raging controversy. And that is for the bond issue to be recalled, for the deal to be unraveled, and all the money to be returned, restoring everyone to the status quo ante.
Keep Camacho, he’s lovely, but everyone should give back the money. Especially the fat man and his chum.
Thanks Al.
I only started to re-immerse myself in Philippine politics (reading online newspapers) in 2005. Did not know that the bleeding heart bled our collective wallets.
Al:
May I ask what happened to the Senate investigation? Were there charges filed in court? I mean, these are very serious crimnal offenses. They parted ways with Gloria in 2005 yet. So how come these people were not indicted? By all means, I’m in favor having them charged if there’s probable cause. Di puede palagpasin yan. Anti-corruption ang campaign theme ni Aquino so dapat di palagpasin sina Soliman kung may basehan.
Thanks.
There were rumors that Al Yuchengco’s RCBC shared with Soliman and her Code-NGO colleagues the commission that it earned from that deal.
Senators John Osmeña and Tessie Oreta were the ones who were pushing the investigation. But at that time, they were the “kontrabida” because of their role defending Erap in the impeachment.
May I ask what happened to the Senate investigation?
That’s a good question, Henry. The loan, I understand is due next year. I’m sure this issue will be raised again.
Here’s the side of Code-NGO:
CODE-NGO’s Response
From: Dan Songco
Sent: Sunday, December 09, 2001 1:00 AM
Subject: On CODE-NGO PEACe Bonds
Dear friends,
I am constrained to write at this time regarding our PEACe (Povery Eradication and Alleviation Certificates) Bonds. We have been maliciously attacked by a small newspaper in the past week. We have been advised not to answer these accusations at this point at the risk of contributing to an increase in its circulation. Nevertheless, I feel we have a responsibility to our colleagues in civil society, business and government who know CODE-NGO and who know me and may have harbored questions about this project.
The PEACe Bonds (Povery Eradication and Alleviation Certificates) is a project of CODE-NGO which we have been working on since March 2001. It evolved out of our desire to promote sustainability of our work and reduce our dependence on foreign funds. We consulted some banker friends to help us figure out a way to use the capital market to raise funds. This group of investment bankers, headed by Bobby Guevarra (of the DMG family), came up with the idea for a bond flotation scheme.
It involves the purchase of long-term bonds (ten year, zero coupon treasury notes – interest paid in full at the end of maturity period, instead of semi-annually like other bonds, which is ten years). The bonds are enhanced by secondary reserve eligibility which we obtained from the Monetary Board on the condition that the proceeds of the sale of the bonds from the secondary market will be used to put up a fund that will be used to support anti-poverty projects (i.e. micro-finance, small infra, etc.) that will
managed by NGO and POs. They are also tax exempt pursuant to Section (32)(B)(7)(g) of the 1997 Tax Code which grants such exemption to government securities that have a maturity of of more than 5 years.
The purchase was obtained after several months of negotiation with the Bureau of Treasury (starting in March, 2001 when Lito Camacho was not even in government yet). The BTr sold the ten year, zero coupon notes via an auction on their regular auction day. Thus, this is part and parcel of the regular auction of bonds that the BTr does. As you probably know, BTr issues bonds on a periodic basis to borrow money from the public to support is treasury functions.
Since we designed the instrument (with the help of our financial advisers and our underwriter, RCBC), we initially wanted BTr to issue the bonds to us through negotiated sale. Meaning we will peg the interest at market (using the Bloomberg rates which is what is traditionally followed by money traders) on the day that they decide to sell it to us. They (BTr, with the DOF’s support) did not want to do so. They insisted that it be sold at auction through the very stringent electronic auction system of the BTr. We
argued that we could end up with nothing if we lost the bid. Still they insisted precisely because they said government cannot afford to be accussed of favoring our group despite the fact that the idea came from us. We agreed to the auction and it was our underwriter, RCBC – which is a certified Government Securities Dealer (GSED), who made the bid in our behalf. Several banks participated in the electronic auction (which means nobody saw anybody’s bid – even the BTr people did not know who was bidding what because the bid entries that they saw on their computers did not carry the name of the banks making the bid). The BTr offered P35 billion (its face value at the end of 10 years) worth of ten year zero coupon treasury notes on October 16. The total amount of bids that they received is worth P 137billion, it was over subscribed. This means a lot of banks participated and were interested in the bonds.
Our underwriter won a very significant amount of the bonds offered (for market sensitivity purposes, they are not allowed to reveal how much they obtained) at the offering rate of 12.75%. This means they are willing to pay P10 billion something today and redeem the bonds in ten years at the price of P 35 billion. They paid this amount to BTr and a few days later sold everything to the secondary market (they had institutional investors waiting to purchase the bonds from them). As you can deduce from the amount of bids received, the PEACE Bonds are a hot item for banks, financial institutions and insurance/pre-need firms. From the profit they made, they gave us P 1.4 billion pesos (which is the equivalent of our agreed rate when we went into an underwriting agreement). We paid underwriters’ commission and other fees to advisers and we were left with P 1.3billion. With this amount, we set up the Peace and Equity Foundation (SEC registered as Peace, Equity and Access for Community Empowerment Foundation) the week after. Please note that we have been setting up this foundation in the anticipation of the result of the sale of the PEACe bonds.
The foundation was established by CODE-NGO as an independent entity that will manage the fund and give grants and loans to deserving projects. The fund is open to everyone (as long as they are eligibile and their project meets the criteria), not just to CODE-NGO members. Peace and Equity Foundation was publicly launched last Dec. 30, 2001, the same day that CODE-NGO held its 3rd National Congress in commemoration of its 10th year anniversary. The foundation’s board is made up of: Fr. NOel VAsquez, S.J. (chair), Chuki Miranda (President), Senen Bacani – former Agriculture Secretary (Treasurer), and six members of the CODE-NGO board (including Marissa as our chair and myself as National Coordinator). There are two ex-oficio reps from government on this board: DOF and National Anti-Poverty Commission. We particularly invited them (although we didn’t have to because government has no say on this money) as an added measure of transparency and to give government an oversight function on these funds.
In the future, CODE-NGO will totally disappear from this board as the current board members graduate. It will have a life of its own.
Three projects have so far been approved by the board for funding support: a water systems installation project that will benefit around 5,000 squatter families in the Manggahan floodway (the project will reduce the cost of their water from P700 to P120 a month), additional capitalization for a rice producing cooperative in Sorsogon, and corn sheller and carabaos for the
livelihood of MNLF rebel returnees in Sultan Kudarat.
We have now close to 100 proposals waiting to be appraised. The money that we earned is safely invested in long-term government securities. We intend to keep the principal of P 1.3 billion in a trust fund and spend only the interest (about P 100 million a year) for projects. As such, we expect to be able to support a significant number of projects for the poor in perpetuity.
Our conscience is clear because we earned the money through a process that was transparent and above board. We have all the documents of our transaction to show to anyone who is interested to see them. We did not get any favors from government because we went through each step of the way with documents and justifications prepared by professionals (who were paid on a
success rate basis). We received no subsidy from government because the money that we earned is part of a commercial transaction undertaken in the seconday market. We are proud of what we accomplished and Marissa Camacho-Reyes and I did not make a single centavo from this initiative. Everything that we earned went into the fund.
Obviously, Mr. Jake Macasaet of Malaya (I have to name him now) writes on behalf of his clients (opposition Senators Oreta, John Osmena and Angara) who want to use this project to discredit Lito Camacho because his sister happens to be our chair. This is an unfortunate coincidence but, like I said earlier, we were halfway into the project when Lito was appointed DOF Secretary. He had no involvement in the project and precisely wrote a letter to President saying he is inhibiting himself from making any decision or getting involved in any way in this project out of delicadeza and in recognition of the potential conflict of interest. We transacted directly with Treasurer Sergio Edeza of the BTr and Usec Cornelio Gizon of the DOF.
The other day, we were informed that Sen. Tessie Oreta filed resolution to investigate the PEACe bonds project. Yes, another one of those investigations. We welcome this inquiry to give us an opportunity to defend ourselves and ferret out the truth. On briefings that was given to Ed Angara, the guy refused to believe that RCBC gave up P 1.3 billion of its profits to CODE-NGO. He says there is something fishy there. It is unfortunate that never in the life of Angara or maybe even Oreta and Osmena have they experienced earning P 1billion pesos in an honest way. They couldn’t believe that is possible in this country.
We request all our colleagues in civil society to please help us explain the PEACe Bonds project to the public and help us defend ourselves against these unscrupulous politicians.
I will be most happy to answer any question that you may still have or even meet with anyone of you in person to give you a more detailed briefing. We made such a briefing for Jake Macasaet over a two-hour lunch meeting sponsored by the Bankers’ Association of the Philippines. After an intensive orientation which ended with him saying that he found absolutely nothing wrong with the project, he turns around and hits us evryday in his paper. The media people among you, I believe, are aware of the reputation of Mr. Macasaet.
We will also hold a forum on the PEACe bonds for civil society on Wednesday next week. We hope to explain in detail the process that we went through in obtaining this fund. We will also disseminate printed materials to counter the malicious disninformation that is being spread about the PEACe bonds and about CODE-NGO.
Thank you,
Dan Songco
Here’s the article I mentioned about the peace bond as rent-seeking:
CODE-NGO: The Rent Seekers
The CODE-NGO PEACE Bonds: A Case of Impermissible Rent-Seeking
Carlito Aûonuevo, Jenina Joy Chavez, Prospero J. De Vera, Alvin Firmeza,
Jose Ernesto Ledesma, Nepomuceno Malaluan, Ma. Cristina Morales, Rene Ofreneo, Rene Raya, Jessica Reyes-Cantos and Filomeno Sta. Ana III
Action for Economic Reforms and Friends*
January 2002
Much heat has been generated by the national government’s issuance of the PEACE Bonds that resulted in the transfer of PhP1.4 billion to the Caucus of Development NGO Networks (CODE-NGO). For one, an esteemed colleague in the human development advocacy, Solita Collas-Monsod, has written that the critics’ accusation of cupidity or stupidity against ” everyone involved [with the PEACE Bonds]…reflects on their ignorance, or envy, or political opportunism.”
But a good number of critics are not the ignorant, envious and opportunist type. Our opposition to the PEACE Bonds stems from a cold analysis that CODE-NGO was engaged in impermissible rent-seeking to obtain the PhP1.4 billion.
Defining Rent-Seeking
The principal theorists on rent-seeking (J.M. Buchanan, R. Tollison, and G. Tullock) define it as “the resource-wasting activities of individuals in seeking transfers of wealth through the aegis of the state.” Similarly, R.B. Ekelund and Tollison describe rent-seeking as “activities whereby individuals seek returns from state-sanctioned monopoly rights.” Tullock views rent-seeking as “the activity of setting a monopoly or getting some other government favor.”
Of course, there will always be rent. But even those who point out the limits of the theory agree that there is rent obtained through “control of market positions” and that rent-seeking entails an opportunity cost (W. J. Samuels). The pernicious type of rent-seeking is one that consists of the non-transparent use of a position of influence or the use of corrupt methods to secure privilege from government, resulting in monopoly profits for a particular group or individual, to the exclusion of other individuals or groups who are similarly situated or who belong to the same class or sector. Not only does this result in the waste of resources; it also undermines the democratic processes of voting and transparent public consultations. Cronyism, patronage politics, and graft and corruption are linked to the worst kind of rent-seeking.
When applied to the Philippine context, the theory appears robust. No one will contest that big amounts of resources are invested in rent-seeking activities by competing interest groups. The problem is magnified when we look at the kinds of rent-seeking activities that are undertaken. Often they involve bribery and non-transparent influence- peddling.
Society has looked upon non-governmental organizations (NGOs) as the most consistent force in fighting bad rent-seeking. The fight has been waged through exposing cronyism and corruption and advocating policies that promote transparency and democratic participation in decision making. Hence, it is a very sensitive, painful matter within civil society if NGOs were found to be engaged in rent-seeking.
CODE-NGO’s Rent-Seeking
From CODE-NGO’s own account, we can establish that it undertook rent-seeking activities. Based on the papers provided by CODE-NGO, the transaction proceeded in this manner:
As early as March 2001, the CODE-NGO had actively lobbied government agencies for the issuance and sale of 10-year zero coupon notes at a rate that would allow it to sell at the secondary market for a profit. The profit was intended to set up a foundation that would finance poverty alleviation projects. The proposal was first presented to the Department of Finance (DoF). To make the instrument attractive to the secondary market, the CODE-NGO lobbied the Monetary Board and the Insurance Commission to grant the instrument reserve eligibilities. It also secured a Bureau of Internal Revenue (BIR) ruling, declaring the exemption of the issue from taxes on any gains from the sale, exchange, or retirement of the PEACE Bonds. The government finally agreed to the issuance of the 10-year treasury zero coupon notes, but opposed any outright purchase agreement (the original CODE-NGO proposal). Instead, the government decided to course the issuance through its auction mechanism. CODE-NGO participated in the auction on 16 October 2001 through Rizal Commercial Banking Corporation (RCBC), a government securities eligible dealer. RCBC cornered majority of the issue, sold it at the secondary market for a profit, and turned over to CODE-NGO PhP1.4 billion of the profit. This profit was used to create a permanent endowment and capital fund for the PEACE Foundation that was created by CODE-NGO.
We can draw from the admitted facts that CODE-NGO lobbied government to obtain a profit in the form of a rent. CODE-NGO is candid enough to admit that it worked for, and would have preferred, a government decision that would have given it a privileged position outright. The ultimate decision of government was to course the transaction through the auction. A negotiated settlement, after all, would have been a blatant act of government giving in to rent-seeking of a group that has close personal and political ties with the present administration. We cannot discount the fact that CODE-NGO banked on the political capital it built during the campaign to oust President Estrada, as well as personal connections, to secure from government certain decisions meant to corner for itself a monopoly rent— to the exclusion of other groups similarly situated.
That the issuance of the PEACE Bonds was done through auction is now used as an argument that CODE-NGO obtained its objective fair and square. Indeed, an auction is better than a negotiated settlement. But even in the auction, CODE-NGO’s rent-seeking behavior had already given them an advantage.
Among similarly situated groups, CODE-NGO had the privilege, if not sole access, to the auction. Other civil society groups were not even aware of this opportunity. In economic jargon, there was information asymmetry (an indication of market failure). If provided the information, other civil society groups could have participated in the auction by attaching themselves to eligible bidders.
But does CODE-NGO deserve special treatment, being the largest network of NGOs? While CODE-NGO may be the biggest network of NGOs, it nonetheless does not represent the whole NGO community. Nor does it claim to be the leader of Philippine NGOs. “Inequitable access” to the PEACE Bonds is hence a valid issue (a point raised by a social reformist with extensive experience in business, government and NGOs). In short, the issuance of the PEACE Bonds was a particularistic dispensation of privilege.
We also note that CODE-NGO and RCBC had a head start over the other dealers. That is, the first-mover advantage. Recall that CODE-NGO was the party that lobbied for tax exemption and liquidity reserve eligibility. The Bangko Sentral ng Plipinas (BSP) approved CODE-NGO’s request on 7 June 2001 for the 10-year, zero coupon bonds to have eligibility as secondary reserve. The BIR wrote a letter to CODE-NGO dated 31 May 2001 regarding its ruling on tax exemption for the 10-year, zero coupon bonds. And a month after the auction, the Insurance Commissioner issued a ruling addressed to the CODE-NGO, declaring the bonds to be eligible as capital and reserve investments for insurance companies.
Whether the forward information resulted in information asymmetry among the eligible dealers in the auction is debatable. In this regard, the public disclosure of all relevant information, including agreements between RCBC and CODE-NGO, is necessary to close this particular issue.
More bothersome is that some admitted facts provide fertile ground to speculate that irregularities may have been committed in the process to favor RCBC and CODE-NGO. Why was the instrument called PEACE Bonds when the government proceeds from the issue were not tied to any “poverty eradication and alleviation” projects of the government? Why was it so named as if CODE-NGO was destined to get the profits from the secondary market trading game?
CODE-NGO, by its own admission, did not have any property interest in the PhP10 billion, which the RCBC used to purchase the bonds. What then was the basis or consideration for RCBC to turn over PhP1.4 billion to CODE-NGO? The only explanation that CODE-NGO offers is that the amount it got from RCBC was the price of the “innovative” idea. But an idea, no matter how brilliant, does not assume a market value unless it is transformed into property, such as through copyright or a patent. CODE-NGO’s idea did not undergo such transformation. It is absurd to give CODE-NGO exclusive right to the idea of the issuance of a ten-year zero coupon bond, which is mislabeled PEACE Bonds. We can only agree to the observation of a noted and respected academician that the PhP1.4 billion must be the price of political capital.
Setback for Government and Civil Society
A final but equally important point: Even though the PhP1.4 billion gained by CODE-NGO came from RCBC (and to reiterate, what CODE-NGO had was not financial but political capital), this does not mean that government incurred no cost in the transaction. To be precise, there was an opportunity cost to government, equivalent to the PhP1.4 billion that CODE-NGO got from RCBC. The amount remitted to CODE-NGO was a cost to RCBC, which was factored into the price (interest rate of 12.75 percent) it bid for the zero coupon Treasury notes. Said differently, instead of government realizing gains from the transaction, RCBC used PhP1.4 billion to pay CODE-NGO.
All told, even in the absence of any illegality in the transaction, it is clear from the facts that CODE-NGO was engaged in rent-seeking. CODE-NGO’s behavior even reinforced the bad rent-seeking processes—non-transparency, exclusivity, patronage politics and cronyism—that are already entrenched in government. CODE-NGO itself condemned such processes not so long ago when it actively campaigned to oust then President Estrada.
The particularistic granting of privilege could have been avoided if the whole process had been transparent. The whole NGO sector should have been consulted. More important, public debate involving civil society and the legislature should have been done.
That said, the issue would have become a policy question. Still, the wisdom of such policy is open to challenge. For example, is it prudent to use the authority of the BSP to secure incentives to facilitate the creation of an endowment fund for NGOs or the private sector? Is it appropriate to impinge on the integrity of the Treasury auction to undertake the fiscal function of distributing resources?
We do not doubt the noble intentions of CODE-NGO. Neither do we question the social commitment of its leaders. But this does not justify the distortion that happened. Rent-seeking cannot seek refuge in the nobility of the cause or intention. Recall the many instances in which the interests of farmers and workers have been invoked to justify rent-seeking behavior (e.g., commodity levies set up ostensibly to modernize the coconut, sugar and other industries and to help emancipate the rural masses from poverty). The outcome of such, however, has been the plunder of public resources and the decay of the state.
Let it not be said that this straightforward criticism is borne out of a “crab mentality” to pull down CODE-NGO. We share the same feeling expressed by other concerned civil society members—we regret that CODE-NGO’s rent-seeking has given political ammunition to the opportunistic section of the opposition.
And lest it be forgotten, CODE-NGO was a product of the struggle against the Marcos dictatorship and that it was at the forefront of the struggle to impeach and oust Estrada. Both regimes were the most notorious for, among other negative things, promoting rent-seeking.
It is therefore most alarming to us when NGOs that fight rent-seeking turn out to have engaged in rent seeking, even unwittingly. For then, we lose the moral high ground in the struggle to transform the Philippine state and society.
The CODE-NGO’s actions should not escape the scrutiny and criticism of advocates of good governance. There are limits to civil society’s relationship with government, and sadly, CODE-NGO has overstepped the limits.
In so doing, it has set back the entire civil society struggle.
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* This paper is the product of the collective work of Action from Economic Reforms and friends from the academe. We thank our friends in the academe for their contributions and comments, but any errors and omissions are the sole responsibility of Action for Economic Reforms.
Nagkaroon tuloy tayo ng Peace Bonds restrospective.
Al:
If ever Soliman’s appointment pushes through, I’m sure this issue will be raised during the confirmation hearings in the CA. The truth will out. Di puede ang corrupt.
Dinky Soliman? Is she not the daughter of a “kapatas” in Hacienda Luisita?
We are talking about peacebonds here?
“Recall the infamous Code NGO peacebonds, a scam that got Filipinos paying some P35 billion for a number of years, while the bank made hay, and civil socialites, lead by Dinky Soliman, who is to be in Noynoy’s Cabinet — should he win the presidency — got away with a cool P1 billion, tax free, and worse, these funds are non-accountable.”
http://www.tribuneonline.org/commentary/20100331com2.html
#67. ricelander, long time kapatas sa HL ang tatay ni Dinky, nabasa ko sa FB. Si Dinky ay umalis lang sa HL para mag-aral sa Maynila, the source said. Kaya magpapakamatay talaga yan si Dinky para sa mga Aquino.
I’d really like brilliant and honest new faces in Noynoy’s admin but if he can’t say no to Dinky, pinoys like me could half embrace her if she’d be cleared for her role in the multi billion peace bonds scandal. Imbestigahan muna. It’s not a good start na may korap kaagad sa bagong pamunuan.
AI, re #63:
So it was Jake Macasaet, via his Malaya Editorial that revealed the sleazy bits and pieces – the article that Dan Songco and the Today editorial (most probably by Teddy Boy Locsin) referred to.
I don’t know if he is related to Jake, but my High School classmate (Class Salutatorian) Dodo Macasaet is currently Executive Director of CODE-NGO.
BTW, hindi lang yang PEACE Bonds ang atraso ni Dinky, as Sec. of DSWD, she was personally distributing Philhealth cards funded by diversion of OWWA money right in Gloria’s campaign sorties in 2004.
Palusot niya, hindi raw niya alam na electioneering daw pala yung ginagawa niya. Kaya nung Truth Commission hearings nung 2006, nag-“I am shorry” rin siya.
Paanong hindi ireretain ni noynoy si romulo e isa yan sa unang nagsabi na suportado nya si noynoy dahil ke cory? Pero hindi sya magreresign sa cabinet ni gloria. At anong “change” pinagsasasabi nyo? Nung tangapin pa lang ni noynoy lahat ng mga lapdogs galing ke gloria basta maka bigay sa kanya ng boto,nuon pa lang alam kong wala ring pagbabagong mangyayari. Tapos ngayon me baho rin pala si dinky? Sabagay,galing din ke gloria yan, hawa-hawa na lang.
Tongue, oo nga pala si Dinky rin ang sangkot sa distribution ng PhilHealth. O, daming kasalanan ni Dinky Soliman, di pwedeng i-recycle ang “I am shorry”!
tongue, chi, isa pang kasalanan ay yung sinabi nga ni De Quiros. Yung Hyatt 10, LP and the Firm were helping Gloria cover up the Hello Garci thing pero noong nag-fail na yung attempt nila, binitawan na nila si Gloria. Kaya nga yung sabi ni De Quiros, pakanta kanata pa ng “if we hold on together” while they were trying to save Gloria from Hello Garci.
reyp, salamat. I missed that column of de Quiros. Klaro naman na binitiwan lang nila si Gloria nang wala na silang magawa na isalba ang image ng unana at tuloy akala nila ay katapusan na ng kanilang amo. Basta ako ay walang tiwala sa kanila.
Yes, the PhilHealth cards!
Although of course, puede nating sabihin na pinagsisishan na nina Dinky ang kasalanan nila sa taumbayan of installing illegally Gloria Arroyo and helping her legitimize it with the 2004 elections.
They said that when they found out about the cheating, they left.
But they still have to account for the Peace Bonds.
By the way,a member of Hyatt 10, Mely Nicolas, sister of Loida Nicolas, is a member of the screening committee for appointments to be made by Noynoy.
Hyatt 10 will really be playing a big role in the Aquino administration.
Naloko na.
“……..our people will choose a leader who will build on the legacy of President Gloria Macapagal-Arroyo.”
Ano’ng legacy ang iiwan ni gloria arroyo? Meron ba siyang magandang alaala at halimbawang maaaring ipamulat sa kabataan?
Legacy bang matatawag ‘yung kanyang walang katapusang kasinungalingan at panlilinlang?
Legacy bang maituturing ‘yung pagkain sa sariling suka?
Legacy ba ‘yung hindi pagharap sa mga aksusasyon laban sa kanya?
Alberto Romulo, GAGO KA!
Alberto Romulo, GAGO KA!
Swak ka dyan, MPR.
Alberto Romulo is a shame in their clan.
A typical sigurista and oportunista. While still with the whore’s cabinet, he made sure his desire felt to serve the incoming administration upon seeing it a sure winner.
Ganito na ba kagarapal ang mga nasa gobyerno? Pakapalan na la’ang ng mukha ang alam? Gusto habangbuhay silang magpapasarap gamit ang salapi ng bayan?
Walang pagkasawa, walang kabusugan.
Magmumura uli ako pag nagkataon! Don’t ever make a mistake of retaining this hinayupak na Bert Romulo or hindi ko sila patutulugin sa mura total nagmomonitor sila sa Ellenville. Sans hindi at nang makapahinga naman kami… – chi.
Ako nga hinahayblad na naman, eh!
Oo nga pala — nakalimutan ko yang peace bonds na yan ah… investigate! investigate Soliman!!!
Tsk. tsk. tsk.
Nakakadismaya. Wala nang maitangi sa kanila. Parepareho halos may dungis sa mukha. Sila sila nagsisiraan, hindi gustong mawawala sa kapangyarihan.
Noynoy, baka naman puwedeng mga bagong mukha ang isama mo sa iyong gabinete?
Huwag na ‘yang mga tinubuan na ng lumot sa gobyerno, wala namang maayos na naging accomplishments kundi ‘yung pagiging mga tipaklong na patalon talon.
Please (din) naman. Sa mga katulad nina Dinky Soliman, maawa na kayo sa amin. Sawang sawa na kami sa inyong mga pagmamagaling na wala namang nagawang buti sa amin. Bahagi kayo ng dahilan kaya nagkaletse letse ang bayan. Dahil sa inyong pagsisipsip at pagtatakip kay goyang kaya nagmistulang kural ng baboy ang pamahalaan. Huwag kayong magparang linta habang buhay. Makaramdam naman sana kayo ng kabusugan.
Hirap na kami!
So, maybe we can make a list of all the “worthy” people we think Noynoy should take a look at?