President Gloria Macapagal-Arroyo was commended by the rural bankers for her decision to shift economic policies from macro to micro development, saying the move will greatly enhance countryside development and create more businesses in rural areas nationwide.

Rural Bankers Association of the Philippines (RBAP) president Jerry B. Coloma, Jr. said the move of the President would surely make rural residents feel good because they will greatly benefit from such economic policies. He said any victory in the local economy would be a victory for the national economy.

Coloma said the President’s initiative to enjoin rural banks to take a more active part in the lending program for small and medium enterprises (SMEs) will make long-term loans available to the countryside, thereby enhancing the viability of the local economy.

"In our meeting with the President and the different heads of government financial institutions (GFIs) last November 25, President Macapagal-Arroyo directed the Bangko Sentral ng Pilipinas (BSP) and the GFIs in coordination with RBAP to streamline and simplify the requirements of their (GFIs) lending programs so that more SMEs can avail themselves of long-term loans," Coloma said.

According to Coloma, the BSP and the GFIs will be submitting to the RBAP for review and further recommendations this week the final draft of a streamlined and simplified requirement for GFI lending programs for SMEs.

Coloma said after the review by RBAP, the simplified and streamlined requirement for GFI lending programs for SMEs will be submitted to the President by next week. "This is how fast the President wanted the work done," he said.

"Like what happened in housing, lending programs of GFIs under the final draft we will be submitting to the President have less and simpler requirements for SMEs making loans more responsive to the needs of the countryside businesses," Coloma said.

Coloma said soon the stiff requirements, which have greatly hindered SMEs to avail of long-term loans from GFIs, would be a thing of the past. He said this would also allow GFIs to re-lend idle capital stock in their vaults.

On the part of the SMEs, they will become a catalyst of countryside development, which in turn will greatly enhance the national economy.

Coloma said RBAP would also like to thank the BSP for its relentless initiative in finalizing a simplified and streamlined requirement for GFI lending programs to SMEs.

"Monetary Board member Melito Salazar and Deputy BSP Governor Alberto Reyes should be commended also for their work," he said.

Coloma said the President was very happy over the turn of events. He said that in his meeting with the President Monday night, the Chief Executive expressed satisfaction about the plan of RBAP to create an SME Division.

"This division will focus on lending programs for these SMEs. And the Philippine Business for Social Progress has expressed willingness to train our people and provide technical assistance for the setting up of the SME division," he said.

"It looks like I was right when I told complaining countryside businessmen not to put the blame on the government when times get difficult but instead help find solutions to the country’s problems," Coloma noted.

He said that during his talks with local businessmen, he often receives complaints ranging from the influx of imported goods to the stringent loan requirements. These complaints, he said, often ends up with remarks that the national government is not wary and unresponsive to countryside development particularly with the plight of the SMEs.

"What I told them is for us from the countryside economic development sectors, rural bankers, local businessmen and SMEs, to get together and recommend solutions. This is what we did. And look, everything is now getting rosier," Coloma said

President Gloria Macapagal-Arroyo has tapped rural and thrift banks for the government’s countryside housing program by directing the Housing Guarantee Corporation to come up with a guarantee mechanism that will enable the Rural Bankers Association of the Philippines (RBAP) to be accredited and enjoy the guarantee for housing loans enjoyed by commercial banks.

RBAP president Jerry B. Coloma, Jr. said the President has instructed him to join the task force that will ensure the widest implementation of the housing program of the government in rural areas.

Coloma said the 776 rural banks nationwide with its 1,932 offices have an 80 percent coverage in the countryside. "This is a formidable exposure if we can tap these rural banks to help in the lending mechanism for the government’s housing program," he said.

In a meeting with the President Monday night, Coloma said he relayed to the Chief Executive the need for rural banks to be included in the accreditation given to commercial banks by the Housing Guarantee Corporation.

"The President was very responsive because she immediately called up the HGC and Secretary Michael Defensor of HUDCC and inquired why rural banks were not included in the guarantee mechanism for loans granted by banks. And, right there and then, the President instructed me to join the task force for the government’s housing program for the countryside," Coloma said.

According to Coloma, rural banks need the guarantee accreditation because at present they cannot grant housing loans because they are restricted under the risk rate ratio requirement.

"With the accreditation, housing loans will not be included in our risk rate ratio so we can grant more housing loans," Coloma said.

At present, according to Coloma, rural banks nationwide have a capacity of P100 million for housing loans. "With our accreditation and subsequent inclusion in the guarantee mechanism of HGC, we can make an exposure of about P500 to P600 million for housing loans," Coloma said. This, according to Coloma, is a big boost in the government’s program to reduce the 6 million housing backlog.

Malacanang today issued Administrative Order No. 53, ordering the perpetual disqualification from re-employment in the government service of the seven board members of the Public Estates Authority (PEA), who were administratively found guilty of violating the Anti-Graft and Corrupt Practices Act by the Presidential Anti-Graft Commission (PAGC).

These officials are PEA Board Chairman Ernest Villareal, General Manager and Ex-Officio PEA Board Member Benjamin Carino, Board members Joemari Gerochi, Sulficio Tagud Jr., Martin Sanciego Jr., Rodolfo Tuazon and Angelito Villanueva.

According to the AO 53 signed by Executive Secretary Alberto Romulo on December 13, while the PAGC findings warranted their dismissal and since they have all already resigned, the penalty of dismissal from government service could not longer be imposed.

"Thus, the accessory penalty of perpetual disqualification from re-employment in government service is imposed," Romulo said.

Meanwhile, the findings and recommendations of PAGC regarding the culpability of PEA officials who are non-presidential appointees shall be referred to the PEA for their dismissal from office and imposition of accessory penalties and the Office of the Ombudsman for possible criminal prosecution.

These officials are PEA Assistant General Manager Jaime Millan, PEA Deputy GMs Manuel Berina, Jr. and Theron Lacson, Deputy Manager Bernardo Viray and Senior Corporate Atty. Ernesto Enriquez.

The findings and recommendations of PAGC on the culpability of the members of the PEA Board of Directors under the Estrada administration shall likewise be referred to the Ombudsman for possible criminal prosecution.

These officials are Board Chairman Frisco F. San Juan, GM and Ex-Officio PEA Board Member Carlos Doble and Board Members Carmelita de Leon-Chan, Daniel Dayan, Salvador Malbarosa, Leo Padilla and Elpidio Damaso.

The PAGC found that the Ad Hoc Committee had no authority to conduct the bidding and award the construction contract for the President Diosdado Macapagal Boulevard (PDMB) considering that there was an existing PEA Pre/Post Qualification, Bidding and Awards Committee (PBAC).

According to the AO, the actions of the Ad Hoc Committee members caused "undue injury to the government."

Thus, there is substantial evidence against Millan, Berina, Lacson, Viray and Enriquez. Although not presidential appointees, they were involved with presidential appointees in violating the Civil Service Law, which is punishable by dismissal from government service, Romulo said.

Also, the AO noted that prior approval from the Office of the President is required for the contract price adjustments, overruns, and or variation orders. However, approval from the Office of the President was never obtained.

The AO further said that the PEA Board and the old PEA Board approved contract price adjustments, overruns and/or variation orders worth a total of P252 million.

The old PEA Board approved a variation order for the construction of a 42-meter bridge and Seaside Drive Extension worth P126 million while the PEA Board approved a contract price adjustments worth P42 million, variation order for additional items of work worth P126 million and a final bill of quantities (overruns/underruns) worth P79 million.

The AO added that the present and the old PEA Board Members were clearly remiss in their duty to protect the interest of the government as manifested in their refusal to follow the stipulations in the Construction Agreement between PEA and JD Legaspi Construction (JDLC) which clearly say that "any price adjustment or variation order should first be approved by the Office of the President."

The board members also refused to follow Executive Order No. 109, which provides that all government contracts which are required to be approved by the President shall not be signed until after the National Economic and Development Authority Board has approved the same.

According to the same AO, the reasons for the contract price adjustments, overruns, and variation order are neither valid nor justified and in fact "grossly disadvantageous to the Filipino people and the Philippine government."

It noted that the agreement between the PEA and JDLC is a fixed-price contract and the reasons given for the adjustments such as poor soil condition, limited time and extra measures to ensure strength and quality of the roads are "on the realm of the impossible. "

It further noted that two other contracts such as SM Inc. and R 1 Construction did not ask for any price adjustments. "Looking at the price difference between JDLC and the other two contractors, the thing speaks for itself that indeed there was an overprice in the construction of the JDLC portion of the President Diosdado Macapagal Boulevard (PDMB). It is even safe to conclude that the PDMB can qualify as the most expensive road in the Philippines and come to think of it, the road is not even made of cement but of asphalt," it said.

The irregularities in the construction of the PDMB started with the old PEA Board under the Estrada administration composed of San Juan, Doble, de Leon-Chan, Dayan, Malbarosa, Padilla and Damaso.

The old PEA board under the previous administration adopted a simplified bidding process despite the existence of a duly-constituted PBAC prejudicing the interest of the government and causing undue injury to the government.

Rep. Mark Jimenez requested, through House Speaker Jose de Venecia, to speak to President Gloria Macapagal-Arroyo this afternoon.

Talking over the telephone and with the Speaker beside him, Jimenez apologized to the President and retracted the accusations he made last night and this morning against First Gentleman. He told the President that he expects to be in the U.S. in the next few days.

The Supreme Court today issued its ruling denying bail in the extradition case against Jimenez.

The checks Jimenez claimed he gave to the First Gentleman were solicited by Rep. Willy Villarama in 1999, when the latter was in the staff of then Vice President Macapagal-Arroyo.

President Gloria Macapagal-Arroyo today said Manila Rep. Mark Jimenez called him on the telephone and apologized for saying that he gave First Gentleman Atty. Jose Miguel "Mike" Arroyo eight checks worth a total of P8 million.

In an ambush interview in Mexico, Pampanga, where the President launched a housing project, the Chief Executive said Jimenez is turning himself in and will be leaving the country in a matter of days.

"He’s leaving already. He’s turning in. He just called me. I just talked to him…He apologized to me and he’ll be leaving in a couple of days," the President said.

The First Gentleman, meanwhile, said that Jimenez is on a rampage, hurling bribery accusations against Malacaņang officials because of his impending extradition to the US.

"The guy is holding on to anything," Arroyo said, adding that he pities the lawmaker who has now become paranoid.

CAPAS, Tarlac -- President Gloria Macapagal-Arroyo today awarded housing units to some 800 beneficiaries of the first Pag-IBIG City to rise in Barangay Cutcut here at the Villa de Sto. Rosario (VdSR).

In ceremonies at the new housing site, the President turned over house keys to Rodolfo Q. Tiongco, winner of a house-and-lot package during the recent Pag-IBIG Housing Bond promotion campaign raffle.

It was the President’s third day of playing the role of Santa Claus to poor familes.

Last Sunday, the President distributed lot certificates and financial assistance to 400 families in Paranaque City and on Monday, she gave away 131 certificates of occupancy to three five-story walk-up buildings to former squatters in Mandaluyong City.

The President has made housing as one of the eight-point priority programs of her administration.

The President said that when she was not yet the president and visited urban poor communities, she would ask the residents what they wanted most out of life, and they would answer "pabahay," a house of their own.

That is why when she became President, she said, she decided to jumpstart housing, a sector considered to effect the biggest multiplier.

The Pag-IBIG City is a mix of low- and mid-cost housing packages selling from P250,000 up to P500,000, with buyers having the options for expansion and improvement,

Some 823 families, mostly workers of nearby establishments in Capas, Tarlac are expected to benefit from the project.

According to developer Haus-Land Assets & Realty, the Pag-IBIG City in Villa de Sto. Rosario responds to the social security pursuit of employees of foreign investors who have put up their production venture in the province.

One such companies is the International Wireless System, with which the project’s developer is executing a Memorandum of Agreement to firm up the assistance to and collection servicing with their employees.

The Home Development Mutual Fund extended support for the project under the Pag-IBIG City Program. It is providing the project some P104 million in loans to cover development and construction, as well as refinancing of the housing packages

Villa de Sto. Rosario is designed to meet the home requirement of local firms and government agencies’ employees who are members of Pag-IBIG.

Florentina Espana, Jr., Pag-IBIG Regional Manager expressed optimism on the project’s ability to meet the affordability of such market.

"Pag-IBIG has opened wider its door to its members with the installation of relaxed lending terms. The lowered interest rates and minimized equity would certainly attract home buyers to seriously invest on acquiring their needed housing," Espana stressed

Meanwhile, Wilfredo Tan, Haus-land General Manager stressed the undertaking’s significance as "it promotes industrial peace and boost local economy."

He cited the development project’s favorable impact on employment, municipal revenue, and other allied industries. Tan also cited VdSR as a modest contribution of the company in support of the government’s prime thrust of providing housing, particularly to the low-end sector.

Villa de Sto. Rosario would be home to some 4,115 Tarlaquenos. The project will also employ about 400 local laborers, thereby resulting in additional employment in the area.

In the afternoon, the President moved on to Mexico, Pampanga to launch the Lakeshore-Mexico Toll Entry/Exit along kilometer 71 of the North Luzon Tollway.

She also inaugurated the Lakeshore Model Homes at the Lakeshore Estate.

The P12-million tollway, which is funded by Central Country Estate Inc., was completed with the support and assistance of the Philippine National Construction Corp., Toll Regulatory Board and Manila North Tollways Corp.

During the same occasion, the President was shown the Lakeshores’ four model homes. Architect Nestor Mangio, president and chairman of Central Country Estate Inc. briefed the President on the ongoing housing, infrastructure and investments projects.

Among those who attended the event were Housing and Urban Development Coordinating Council Chairman Michael Defensor, Executive Secretary Alberto Romulo, PNCC Chair Rolando Macasaet, PNCC president Wilfredo Cu, Pampanga Gov. Lito Lapid, Pampanga Rep. Oscar Rodriguez and Mexico Mayor Ernesto Punzalan.

Lakeshore is a residential, commercial, recreational and institutional development in the country, which features world-class amenities and facilities, along with a fully functional 12-hectare man-made lake with bird sanctuary.

Before proceeding to Mexico, Pampanga, the President passed by the Aquino Center in Hacienda Luisita, where she had lunch with former President Corazon Aquino, Rep. Benigno Aquino III and other members of the family.

Malacaņang said today there was no reason for it to be afraid about deposed President Joseph Estrada testifying before the Senate this morning and was actually looking forward to what he would say about the power deal with an Argentine firm that was signed during his term.

"We are more afraid for him," said Press Secretary Ignacio R. Bunye in a radio interview, "because if he testifies under oath that he had nothing to do" with the contract between the National Power Corp. (Napocor) and the Industrias Metalurgicas Pescarmona Sociedad Anonima (IMPSA), he might be liable for perjury.

Saying Malacaņang has nothing at all to do with the failure of the former President to appear before the Senate, Presidential Spokesman Rigoberto D. Tiglao said in another interview that "mas maganda (it would have been better)" if Estrada made it to the legislative inquiry to testify on what happened to the IMPSA deal.

The IMPSA deal was a done deal under the Estrada administration, Bunye and Tiglao said.

President Gloria Macapagal-Arroyo had nothing at all to do with the IMPSA contract, Bunye said.

Documents presented to the media showed that Estrada signed as a witness in one document. In another document, he authorized Napocor officials to sign the mother document, Bunye said.

Asked what the President’s reaction was to Estrada’s planned appearance before the Senate investigators, Bunye said "she’s not objecting if Estrada has to testify. Let him go ahead. Let him make himself look funny."