Press Secretary Ignacio Bunye today described as "overblown" the reaction of some sectors to the inquiry conducted by the Presidential Anti-Graft Commission (PAGC) on the compliance with Memorandum Order No. 20.

In an interview, Bunye also appealed to the politicians not to ride on the action taken by the PAGC so as not to muddle the issue.

"Masyado lang overblown itong controversy na ito at maraming sumasakay na mga politiko at talagang parang ginagatungan pa nila iyong magkabilang panig (The controversy is just overblown and a number of politicians are adding fire to both sides)," Bunye said.

Bunye reiterated that a number of the 15 GOCC and GFI executives cited by the PAGC in its charge sheet have already substantially complied with M.O. 20 and have justified their salaries, including Governor Rafael Buenaventura of the Bangko Sentral ng Pilipinas (BSP).

"Anyway, let’s be sober about this thing. There is nothing unusual about what is going on," Bunye said.

According to Bunye, the PAGC’s move to conduct an investigation on the matter is in line with the administration’s commitment to good governance as espoused by President Gloria Macapagal-Arroyo.

M.O. 20 requires all executives of GOCCs, GFIs, and their subsidiaries, who are exempted from the salary standardization law, to rationalize their salary structures.

The economy expanded at a rate exceeding government projections during the second quarter of this year, raising hopes that the budget deficit will be contained and whole-year growth targets attained.

"The economy turned in a pleasant surprise in the second quarter by growing at a rate that exceeded even NEDA’s projections," National Economic and Development Authority (NEDA) Director-General Dante B. Canlas said today.

"Given the growth rates of 4.5 percent and 5.2 percent in real GDP and GNP, respectively, the economy is on track to meet the government’s whole year growth projections: 4 to 4.5 percent for real GDP and 5 to 5.5 percent for real GNP," said Canlas, who is also socioeconomic planning secretary.

In the first half of the year, the average growth rates are 4.1 percent for real GDP and 4.7 percent for real GNP.

The broad-based nature of the expansion is encouraging, Canlas said.

"Looking at aggregate supply, although agriculture slowed down in the second quarter, industry recovered strongly," he said. Services, meanwhile, continued to gain strength, he added.

On the aggregate-demand side, the decline in investment slowed down in the second quarter, suggesting a bottoming out, Canlas said.

With the help of Congress, which commits to enact key economic reform bills into laws, such as the Transmission Corporation (Transco) franchise and the Special Purpose Asset Vehicle (SPAV), "investments may hit positive territory in the second half of the year," the NEDA head said.

"Economic performance as of the second semester indicates that the economic program of the administration is working. The deficit-reduction program will thus continue," he added.

The output-growth figures that the National Statistical Coordination Board just released raises the likelihood that the target deficit-to-GDP ratio of 3.3 percent in 2002 will be realized, Canlas said.

ZAMBOANGA CITY -- President Gloria Macapagal-Arroyo today braved low dark clouds and a slight drizzle as she planed in here to begin a two-day visit to different parts of Mindanao in her bid to quickly address issues affecting peace and development in the area.

The plane bearing the President landed at about 10:45 a.m. at the Edwin Andrews Air Base (EAAB).

She was given the usual planeside honors, after which she greeted her welcomers, among whom were regional and local officials, a group from the city’s cooperative federation and students of the Ateneo de Zamboanga University.

After pleasantries with welcoming officials, the President presided over a closed-door meeting with Mayor Maria Clara Lobregat and Rep. Celso Lobregat over the Sabah Filipino repatriation issue and with the military on ongoing anti-terrorist operations in Mindanao, particularly Sulu.

She took off for Bongao, Tawi-Tawi shortly before noon when the weather cleared.

The President is scheduled to meet some 1,400 Filipino repatriates aboard a Navy boat expected to arrive today at the Bongao port.

However, there were reports that the Navy boat was stranded in Mapun Island off Bongao due to harsh sea conditions and bad weather.

She will also look into the conditions of and personally lend a hand to ease the plight of some 1,500 Filipinos who were repatriated this week from Sandakan in Sabah.

While in Tawi-Tawi, she is expected to lead other officials in giving out emergency food, clothing and medicine aid to the repatriates, who included children, waiting for the processing of their papers.

From Bongao, the President will hop off to Pagadian City and proceed to Sergio Osmeņa Sr. town in Zamboanga del Norte where she will attend a program.

Later, she will address the people of Kumaralang, Zamboanga del Sur, which celebrates its 43rd founding anniversary today.

The President is set to return to and spend the night in Pagadian City.

Before leaving tomorrow (August 30) for Surigao City, she will lead officials in the ground-breaking rites for the Iligan City-Aurora, Zamboanga del Sur road.

In Surigao, the President is set to attend the Mindanao Business conference and grace another program in Butuan City.

ZAMBOANGA CITY – The visit of President Gloria Macapagal-Arroyo here today, her fourth since she became the country’s Chief Executive, bodes well for the city government.

This was the assessment of city officials who hoped that the President’s visit would relieve the locality from burdens spawned by the sudden entry of thousands of Filipino repatriates from Sandakan, Sabah, Malaysia.

City Mayor Maria Clara Lobregat today discussed with the President and other officials possible programs that would put an end to the woes, both of the repatriates and city residents.

The local officials said having the processing of the documents of the repatriates done in Bongao, Tawi-Tawi was a good start. Earlier, the processing was made here.

Most of the repatriates hail from Sulu, Tawi-Tawi and Basilan that are parts of the Autonomous Region in Muslim Mindanao while Zamboanga City is in the Western Mindanao region.

Except for the regular help from concerned agencies, the city government has found it hard to secure enough funds to help feed, clothe and house the repatriates.

Local police records even showed that the incidence of petty crimes, many of these perpetrated by children of repatriates, rose slightly.

The Department of Social Welfare and Development regional office said it had spent some P10 million for the repatriates since 1995.

At the same time, the city government has been contending with the influx of migrants from neighboring Zamboanga del Norte province, where recent military operations against the terrorist Abu Sayyaf Group were conducted.

Another positive move to ease problems brought about by the repatriation issue was the creation of Task Force Deportees that Lobregat headed.

Lobregat hoped to align the task force’s objectives with the programs of the President to address the matter.

The mayor said the President had expressed support to the task force, but the latter wanted officials to institute the more organized and orderly handling of the arrival of the repatriates.

She noted the President's "deep concern" for the city, which faced problems on what to do with some 20,000 repatriates who landed at the port of Zamboanga after fleeing from Sandakan, Sabah, since January.

Lobregat said the President would personally assess the extent of the problem.

President Macapagal-Arroyo flew from here to Bongao, Tawi-Tawi shortly before noon.

She said she wanted to look into the conditions of more than 3,000 Filipino repatriates who arrived this week from Sandakan in Navy boats.

I would like to take exception to reports that the President ordered the investigation of any government officials for violation of Memorandum No. 20, dated June 25, 2001, which directs head of GOCCs and GFIs and their subsidiaries to implement a pay rationalization plan for all senior officer positions. The MO mandates the reduction of pay scales of senior officers and suspends the grant of salary increases and other benefits unless authorized by the President.

The President ordered no such investigation. The fact is that the Presidential Anti-Graft Commission, acting on its own behest and initiative, is conducting a formal inquiry into the compliance of GFIs and GOCCs with the Memorandum Order. This is part of the job of the PAGC, to check on the status of implementation of pertinent Presidential issuances.

The government has come up with the final draft of the single comprehensive peace agreement with the National Democratic Front, proving that while formal peace talks have been suspended, lines of communications remain open between parties, Press Secretary Ignacio "Toting" Bunye said.

In his regular press briefing this afternoon, Bunye said the government peace panel met this morning with the Cabinet Oversight Committee on Internal Security (COCIS), wherein the draft was presented.

During the meeting, Bunye said, the COCIS has given itself one week to submit comments on the draft agreement.

Bunye said the government panel has expressed optimism that despite the suspension of the formal talks, it is "still moving as expected."

"Our position on the matter remains the same that while the formal talks have been suspended, our lines of communication remain open," Bunye said.

Bunye noted that the President would like to have attained a single and comprehensive peace accord, "in effect discard(ing) the piecemeal type of agreement" and giving way for the attainment of peace finally.

Peace talks were suspended after the New People's Army, the armed wing of the communist movement, assassinated two congressmen last year.

Before they were suspended last June, the talks were focused on socio-economic reforms.

BONGAO, Tawi-Tawi -- President Gloria Macapagal-Arroyo today disclosed she would ask former President Fidel V. Ramos to go to Malaysia and talk with Prime Minister Mahathir Mohamad on the fate of undocumented Filipinos in that neighboring state.

The President made the disclosure at the Sanga-Sanga airport where she boarded a plane that would take her to Pagadian City on the third leg of her two-day visit to Mindanao.

She had just finished conferring with local officials and some 1,500 Filipino repatriates who arrived here this morning from Sandakan, Sabah, aboard the Navy boat BRP Dagupan City.

"I plan to ask President Ramos to go to Malaysia to speak with Prime Minister Mahathir and also to the Chief Minister of Sabah about the situation so that the remaining deportations and voluntary return will be much, much smoother," she said.

This would also be "for the benefit of peace and development in Southern Philippines and in southern Asia," she added.

The President said that four more Navy vessels are scheduled to go to Sandakan between today and Saturday to fetch more repatriates.

Filipino immigration officers and doctors will accompany the repatriates on the Navy vessels so they could immediately process and attend to the health needs, respectively, of the deportees.

The Malaysian government has set August 31 as the deadline for illegal aliens in Sabah to return to their respective countries.

Malaysian government reports showed that some 300,000 illegal aliens lived and worked in Sabah through the years.

The President arrived here from Zamboanga City at about 2 p.m. and left for Pagadian City shortly before 4 p.m.

During her brief stay here, she thanked the local officials and heads of concerned agencies of the Autonomous Region in Muslim Mindanao for immediately assisting the repatriates.

"Nagpapasalamat ako sa mga mamamayan ng Tawi-Tawi, lalo na kay Governor Rashidin Halon Matba, sa buong puso nilang pagtanggap sa mga deportees (I also thank the people of Tawi-Tawi, led by Gov. Matba, for the hospitality they accorded the deportees)," she added.

On Saturday, the President said she would meet with Tawi-Tawi's leaders and heads of concerned line agencies in Malacaņang on the status of the repatriates.

The meeting would follow the confirmation of former Tawi-Tawi Rep. Nur Jaafar who was named Presidential Adviser on Muslim Affairs.