The President said she would show to the people, particularly well-meaning private businessmen, that government transactions follow standard operating procedures that are transparent and are in accordance with laws.

"Extortionists and so-called facilitators do not have a place under our system. Let this be a warning to those who continue to engage in this practice. We will not rest until all of you are locked up in jail," she said.

During the press briefing at the DBM building in Malacanang, the President presented architect Manuel Tolentino following an entrapment undertaken by the Special Project Group-Presidential Anti-Organized Crime Commission (SPG-PAOCC), Regional Intelligence Special Operation Office (RISOO), Regional Intelligence and Investigation Division (RIID), and the National Capital Region Police Office (NCRPO).

The entrapment followed a complaint filed by a private contractor who said that Tolentino demanded P200,000 as facilitation expenses for the immediate release of funds from DBM.

According to the contractor, Tolentino also claimed that he could get an approval of a proposed project in Sibulan, Negros Oriental from the OP and that he can likewise facilitate the release of the needed documents because of his strong connections with the Office of the First Gentleman, Atty. Jose Miguel Arroyo.

The President said the latest arrest is a manifestation that her administration is also focusing on white-collar crimes, citing the recent discovery of tax scams in the Bureau of Internal Revenue.

The President noted that this is not the first time that they have apprehended swindlers who introduce themselves as DBM employees.

She said the police are on the lookout for the swindlers’ "connections" in the two government offices.

The President further noted that there are two kinds of such racket in the DBM. The first type, she said, is perpetrated by a swindler who approaches a local government official, claiming that he facilitated the approval of his Special Allotment Release Order SARO when, in fact, it has been approved without a need to lobby for it.

The President noted that these people even have authentic copies of SAROs, complete with the appropriate bar codes, bolstering the suspicion that they have connections inside the offices.

The other modus operandi, the President said, is that the swindler produces a totally fake SARO. "Because of these, there are many who are complaining," she said.

"Nananawagan ako sa mga LGUs. Huwag kayong maniniwala kung may nagpupunta sa inyo sinasabi ‘O ilalakad ko ang SARO mo bigyan mo ako ng porsyento.’ Hindi ganoon yun. Lalo na yung malalaking amount, ako mismo ang nagaaprove doon at ako’y hindi humihingi ng porsyento, kaya huwag kayong magbigay ng porsyento kahit kanino (I am calling on the LGUs not to believe those people who approach them and claim that they can facilitate their SAROs in exchange for a commission. That is not how we work. I personally approve SAROs especially if the amount involved is big, and I don’t ask for a commission)," the President said.

President Gloria Macapagal-Arroyo today presented to the media six suspected hijackers who were allegedly victimizing rice traders transporting their products along the Maharlika Highway in Gapan, Nueva Ecija.

The hijackers were arrested after the owner of a 10-wheeler truck carrying 500 sacks of rice informed the Bulacan Police Traffic Management Office of the hijacking of his vehicle and its cargo.

The suspects were apprehended yesterday at an abandoned iceplant in Barangay Bayanihan in Gapan while the truck was later found abandoned along Gapan-Olongapo Road. The arresting team was composed of members of the Regional Traffic Management Office 3 in Central Luzon and the Bulacan Traffic Management Group (TMG) led by Police Superintendent Vladimir Kahulugan and Police Inspectors Serafin Macaraig and Rhoderick Maniego.

The six suspects were identified as Diorico Pacaanas, Domingo de Roma, Delfin Gutierrez, Batoy Camacho, Angelou Camacho and Romeo Santaren.

Recovered from the suspects were 46 sacks of rice and P12,170 in cash. Appropriate charges are being prepared against the suspects.

In her brief remarks, the President said she appreciates the efforts of the TMG and the other organizations that are focusing on the anti-crime campaign she ordered Philippine National Police chief Director Gen. Hermogenes Ebdane, Jr. to launch recently.

President Gloria Macapagal-Arroyo today urged the leaders of Congress to enact two priority economic measures – the Transco (Transmission Corporation) franchise bill, and the complementary securitization bill and special purpose asset vehicle (SPAV) bill -- before Congress takes its recess on September 7.

In the Legislative-Executive Development Advisory Council (Ledac) meeting which she presided over in Malacaņang this morning, the President emphasized the need for confidence-building measures in order to address the problems that the country is now facing.

"This is to counter the currency and financial pressure the Philippines faces arising from the turmoil in Brazil and Argentina and the budget deficit of the national government," the President said.

"So if the House of Representatives could pass these two bills this week, I hope that the Senate could pass it next week," the President said.

The President said that now that the ruling coalition has the majority in both houses of Congress, it would not be difficult to pass these bills.

The immediate passage of these bills will show to the world that the Philippines is still a functioning economy, the President further said.

Secretary Gabriel Claudio, Presidential Legislative Adviser and head of the Presidential Legislative Liaison Office (PLLO), also reported to the Ledac that the deliberation of one common legislative agenda measure, the Free Patents Law, has been concluded at the level of the bicameral conference committee of Congress.

This will pave the way for the ratification of the bicameral report, Claudio said.

The President explained that the Free Patents Law is part of the De Soto reforms which will formalize informal settlers ownership of the land they occupy.

"Therefore this will allow the poor to have access to lands," the President said, stressing that the law is a very important pro-poor measure.

The President likewise asked Congress to pass vital legislations, a number of which are already in advanced stages, and with only a concerted push, can actually be enacted even before Congress takes its first break for the second regular session on September 7.

President Gloria Macapagal-Arroyo has formally appointed former Customs Commissioner Guillermo Parayno as the next Commissioner of the Bureau of Internal Revenue (BIR).

In his press briefing this afternoon, Press Secretary and Acting Presidential Spokesman Ignacio Bunye said that the President announced Parayno’s appointment Monday night.

Bunye said that Parayno, who served as customs commissioner during the term of former President Fidel V. Ramos, is expected to institute reforms at the BIR and at the same time address the collection problems of the agency.

Parayno will be taking over the position vacated by BIR Commissioner Rene Banez.

According to Bunye, Parayno will wind up his affairs in his present post and will take his oath of office around September 15.

Parayno is at present consultant of the World Bank for its projects in several Central Asian countries.

Previous to his stint at the Bureau of Customs, Parayno was an officer of the Armed Forces of the Philippines where he rose to the rank of colonel before he retired.

Majority of the respondents to the Business Expectations Survey (BES) conducted in July by the Bangko Sentral ng Pilipinas (BSP) are bullish on the performance of the economy during the fourth quarter of this year.

In a report to Malacanang, the BSP said the optimistic outlook of the BES respondents for the last quarter of the year is based on their anticipation of increases in consumer demand during the Christmas season as well as on the expected inflow of dollar remittances from overseas Filipino workers (OFWs).

The respondents also said that they were optimistic that the economy will continue to grow in the third quarter, but with a slight softening in business activity due mainly to poor weather conditions usually observed during the period.

In the third quarter, the respondents expect the economy to grow as more firms projected higher volume of production and total orders. Other business-related factors support this positive trend as the indices on credit access and financial conditions showed improving values.

The BSP said that in the fourth quarter, the bullish outlook is shared by firms from all sectors of the economy, particularly services and industry.

In addition to positive seasonal factors, other signs of improving economic growth were evident, the BSP said, citing as example the employment index which "entered positive territory" for the first time in five quarters, with more firms planning to hire more workers by yearend.

At the same time, 10.7 percent of respondent firms indicated expansion plans for the quarter. As a result of improving demand and business activity, respondents anticipate higher borrowing and inflation rates during the period, the BSP said.

The respondents also expect the peso to strengthen from a rebound in foreign exchange inflows at yearend, particularly from remittances of OFWs.

The survey results showed that the confidence index for the industry sector improved to 22.0 percent from 12.0 percent in the previous quarter. On the other hand, confidence indices for trade and services declined but remained positive.

The confidence index for the construction sector remained negative at 3.3 percent, but was an improvement from the negative 4.5 percent posted in the second quarter, the BSP said.

Stiff competition and insufficient demand remained the primary factors that limit production and business activity, according to about 80 percent of the respondent firms. Other factors cited by around one-third of respondent firms are access to credit, financial problems and labor problems.

Starting with the second quarter of 2001, the BSP has conducted the BES using the harmonized set of core questions for Asian countries suggested by the Asian Development Bank (ADB).

The survey covers 12 major industry groups (grouped into 4 major economic sectors), with firms drawn from the top 3,000 corporations in Metro Manila as listed by the Securities and Exchange Commission (SEC).