The Department of Foreign Affairs (DFA) welcomed the establishment of the Philippines-United States Defense Policy Board, as agreed upon by Defense Secretary Angelo Reyes and his counterpart, US Defense Secretary Donald Rumsfeld during their meeting in Washington last August 13.

In a statement, Foreign Affairs Secretary Blas Ople said this new bilateral policy body will complement existing defense consultative mechanisms, namely the Council of Foreign Ministers and the Mutual Defense Board, both of which are under the framework of the 1951 RP-US Mutual Defense Treaty.

Ople said both the DFA and the Department of National Defense have always believed that there is a need to establish a mechanism that could conduct a broader review of our defense and security relations, particularly in the context of the new security challenges that face both our nations and the world.

He said that it is precisely with this in mind that President Gloria Macapagal-Arroyo and President George W. Bush agreed last November in Washington to establish "a new bilateral defense consultative mechanism" as contained in paragraph 7 of the Joint Statement between the United States and the Republic of the Philippines issued during the President’s visit to Washington DC, on Nov. 20, 2001.

"When we were negotiating the joint statement, it was our understanding that the DFA as well as other relevant government agencies, would be an active participant in this bilateral defense consultative mechanism," Ople said.

President Gloria Macapagal-Arroyo today reiterated her administration’s determination to curb graft and corruption in government by going after both the "big fish" and "small fish" who are involved in graft and corruption activities.

In an interview with reporters at the Department of Justice (DOJ) office on Taft Avenue, Manila, the President said it is only appropriate to catch the small fish first because they are the ones doing the act for the big fish.

"The big fish are not the ones who do the act; it’s the small fish," the President said.

She explained that after catching the small fish, it is the job of the government to investigate further and find out who their bosses are.

"How can you catch the big fish unless you catch the small fish first and hope to persuade them to testify who are their bosses," the President stressed.

Since the start of her administration’s all-out campaign against rice smugglers about three weeks ago, the President said the government has already filed charges against two "big fish" who are suspected of being involved in rice smuggling, namely Nieves Uy and Antonio Chua.

The President noted that in her State of the Nation Address (SONA) last July 22, she directed Justice Secretary Hernando Perez to take legal actions against Albay Regional Trial Court (RTC) Judge Arnulfo Cabredo for obstructing the government’s efforts to crack down on the smuggling of rice in the country.

"No one is above the law, more so among those who sit in judgment for violation of law," the Chief Executive said.

She added that the Executive branch shall not stand by or wash its hands of cases where members of the bench are involved.

Aside from the judge, the President said the government is also filing a case against lawyer Marcial Lopez, former district collector of Legaspi, Albay for alleged failure to attend the hearing on a motion he filed to lift the temporary restraining order that paved the way for the denial of the said motion.

President Gloria Macapagal-Arroyo today warned all the judges in the country not to interfere in the government's campaign to stop the smuggling of rice to avoid being criminally charged themselves in the future.

The President issued this warning when she personally witnessed the filing of criminal charges against Albay Regional Trial Court Judge Arnulfo Cabredo and a retired Customs official at the Department of Justice Prosecutors Office for allegedly obstructing the efforts of the government to crack down on the activities of rice smuggling syndicates.

"For the other judges who are still out there, let this case be a reminder to all the other RTC judges that the Collector of Customs, by law and by jurisprudence, has exclusive jurisdiction over seizure proceedings and regular courts cannot interfere with the exercise of that jurisdiction," the President said.

The President directed Customs Commissioner Antonio Bernardo to present all pieces of evidence against Judge Cabredo at the DOJ.

She also instructed Justice Secretary Hernando Perez to "exhaust all means within his authority to bring Judge Cabredo before the very bar of justice he has foresworn to uphold."

Also charged with Judge Cabredo was Atty. Marcial Lopez, former District Collector of the Port of Legaspi, Albay.

The President explained that Lopez was the Customs official who tipped her off about the illegal rice shipment but did not do anything to take physical custody of the rice shipment despite the fact that as early Sept. 23, 2001, a warrant of seizure and detention had already been issued on the said shipment.

The incident happened when the President made a surprise visit to Legaspi, where she landed from her official visit in Japan.

"Atty. Lopez for obvious reasons failed to attend the hearing on a motion he filed to lift the temporary restraining order (TRO), thus paving the way for a denial of the said motion," the President explained.

"On the findings of Customs, a warrant of seizure and detention was issued against the vessel and its cargo. However, Judge Arnulfo Cabredo of the Regional Trial Court of Tabaco issued a TRO upon petition of the consignees against the warrant of the Bureau of Customs," she added.

Because of this, the President said the rice was released to the consignees.

It may be recalled that the BOC had already filed smuggling and falsification charges against the consignees and shipmaster and the operator of the M/V Criston.

The case against the two were filed by Atty. Clemente P. Heraldo and Leonito A. Santiago, chief and special investigator, respectively, of the Bureau of Customs Internal Inquiry and Prosecution Division - Customs Intelligence and Investigation Service (IIPD-CIIS).

"I respect the separation of powers of the executive and the judiciary but as I said in the SONA, I must stand by the interest of the people in seeking legal relief against the abuses of judicial authorities," President said.

"No one should be above the law. More so among those who sit in judgment of violations of law. The executive shall not stand by or wash its hands off cases where members of the bench are involved. I direct the DOJ to seek the proper venue and identify the proper charges by which this case can be resolved fairly and speedily," the President said.

The President said that aside from Cabredo, the government has already filed a separate case of violation of the Anti-Graft and Corrupt Practices Act against Judges Pedro de Leon Gutierrez of Pasay City RTC Branch 119 and Rodrigo B. Lorenzo of Pasig City RTC Branch 166.

She added that aside from the three judges, the DOJ also filed an administrative and criminal cases against five prosecutors namely: Constancia Velasco of Manila Prosecutors Office for extorting P5,000 and entrapped last Nov. 8, 2001; Apolinarque Tulio of Paranaque City Prosecutors Office, who demanded P60,000 and entrapped last April 16, 2002; Romulo Gotico, assistant provincial prosecutor of Capiz for extorting P50,000 and entrapped on July 17, 2001; Victor de la Cruz , third assistant City Prosecutor of Naga City, for sexual harassment; and Oscar Corpuz of San Fernando City, La Union Prosecutors Office for gross negligence.

President Gloria Macapagal-Arroyo today clarified that Acsa Ramirez is not the whistle-blower in the P203-million tax diversion case, for which Land Bank Binangonan branch manager Artemio San Juan was charged.

"She did not blow the whistle on the tax scam. She reported a totally separate ‘crank’ account. Some crank tried to open a P26-billion account, totally unrelated to the tax scam," President said.

In her statement at the Department of Justice (DOJ) after witnessing the filing of criminal charges against a Regional Trial Court judge in Albay and a former District Collector of the Bureau of Customs based in Legaspi, the President said Ramirez misinterpreted the turn of events and later on claimed to media that she was the whistle-blower in the tax scam.

"So even today, I read that Acsa Ramirez blew the whistle on the tax scam. No, she blew the whistle on a totally separate crank guy who tried to open a P26-billion account," the President said.

The President explained that she needed to clarify the issue on Ramirez because everybody was asking her on the participation of the cashier with regards to the case of San Juan.

NBI Director Reynaldo Wycoco said that based on the bank documents the Anti-Money Laundering Council gave the NBI, Ramirez failed to report 11 transactions, each worth P4 million and above, intended for three of the four fraudulent accounts that a syndicate used to divert P203 million in tax money.

President Gloria Macapagal-Arroyo today ordered the Philippine Embassy in Kuala Lumpur to extend all possible assistance to the Filipino overseas workers who are facing deportation from Malaysia, Press Secretary Ignacio Bunye said today.

Bunye, in his regular press briefing in Malacanang, said the primary concern of the President is the alleged inhumane treatment on Filipino workers although he said the government learned later that this is not true.

"The first concern of the President is the alleged inhumane treatment of the overseas workers, which we found not to be true," Bunye said.

"The instruction is to assist, extend all possible assistance to them so that they could be repatriated at the earliest time," he added.

Reports said close to 80,000 Filipino illegal aliens in Malaysia face arrest unless they go back to the Philippines by August 24.

Malacanang today said it will continue its contact with the National Democratic Front (NDF) through Luis Jalandoni notwithstanding the threat of Jose Ma. Sison to withdraw from the peace negotiations with the government.

In a press briefing, Press Secretary and Acting Presidential Spokesman Ignacio Bunye said the peace talks between the government and the NDF panels are currently on the "back-chanelling mode" and the contacts can continue with Jalandoni.

"Our position is that Joma (Sison) is not the chairman of the NDF panel, he is only an adviser and the real chairman is Mr. Luis Jalandoni," Bunye said.

Bunye said that it is up to the Dutch government to implement its freeze order on the assets of the Communist Party of the Philippines (CPP)

Yesterday, President Gloria Macapagal-Arroyo welcomed the Dutch government’s freeze order, expressing the hope that it could hasten the peace process.

"We welcome it. I’d hope it could hasten the peace talks so that the other side can think of parliamentary struggle and use the democratic space rather than engaging in violence and terrorism because that is what communicating with them is all about," the President told reporters during a luncheon in Malacanang.

The Dutch government decided to freeze the assets of the CPP and to request member-countries of the European Union to follow suit.