President Gloria Macapagal-Arroyo today outlined an eight-point strategy to address the problem of thousands of Filipino returnees from Sabah even as she continued to appeal for donations from the public to help various government agencies in attending to the needs of these returning Filipinos.

In her weekly radio program aired nationwide, the President said that the comprehensive strategy to protect the returnees and reintegrate them into the mainstream of Philippine society was adopted in a meeting held in Malacaņang last Friday.

The meeting was attended by Cabinet officials and leaders of the two houses of Congress.

The President said that the strong Republic that we are striving to build must create more jobs for the jobless, especially for the thousands of people from Mindanao who have lost their livelihood.

"We need to find jobs for them. We need to comfort them in their despair. And we need to help provide them with food, medicine and temporary shelter," the President said.

The President said that donations for the returnees, either in cash or in kind, could be sent to the local chapters of the National Disaster Coordinating Council (NDCC) and the Department of Social Welfare and Development (DSWD).

First in the eight-point strategy for the Filipino returnees calls for the Department of Foreign Affairs (DFA) to continue in lodging complaints with Malaysian authorities about alleged abuses perpetrated against Filipinos who are being deported from Sabah.

Second, the government would continue to work for the speedy processing of documents for the remaining Filipinos in Sabah before they will be deported.

Third, the Philippine embassy in Kuala Lumpur should conduct an information drive to convince Filipinos to return to the country through the ships of the Philippine Navy and the Philippine Coast Guard.

Fourth, the DFA and the Department of Labor and Employment (DoLE) to coordinate in working out labor agreements with Malaysia that would be beneficial to Filipino workers in Sabah. The DFA would continue to extend assistance to Filipinos for the required documents that they would need in order to get work permits that would allow them to return to Sabah and work there legally.

Fifth, the Philippine embassy in Kuala Lumpur should exert more efforts in giving assistance to Filipinos in Malaysia, and this would include providing legal assistance and visitation.

Sixth, the Philippine embassy should ask permission from the Malaysian authorities so that our Consular teams can visit the various detention centers to provide legal assistance to the returnees.

Seventh, the DFA should see to it that conditions in the various detention centers in Sabah be improved, especially in neatness and the provision of adequate food.

Eighth, that all concerned government agencies should cooperate in speeding up the reintegration of the returnees into the Philippine society.

The President said that the government would ensure that the remaining Filipino returnees in Sabah would be protected, and this would include the seeking of justice for abuses and inhuman treatment that they have suffered while in detention.

She recalled that two weeks ago, she went to Bongao, Tawi-Tawi to personally look into the condition of the Filipino returnees.

"Doon nakita ko ang paghihirap ng libu-libo nating mga kababayang pinabalik mula sa Sabah (There I saw the misery suffered by thousands of our countrymen who were deported from Sabah)," the President said.

The President said that after her visit to Bongao, she immediately called up Malaysian Prime Minister Mahathir Mohamad to complain and the latter agreed to a moratorium on the deportation.

When she was informed about the alleged sexual molestation of a 13-year-old Filipina in the hands of Malaysian authorities, the President said she also immediately wrote a strongly worded letter to Mahathir.

"I express my personal outrage and that of the Filipino people and which I am sure you will also condemn in the strongest terms," the President said in her letter to Mahathir.

In the bid to power up the economy, President Gloria Macapagal-Arroyo today called on the nation to take an active part in stimulating the domestic demand, rather than relying solely on the export market.

The President noted in her regular radio address that this was the same formula adopted by Thailand in reinvigorating its economy.

"Sa halip na umasa tayo sa export market, pasisiglahin natin ang domestic demand o lokal na merkado (Instead of relying on the export market, we will enliven the domestic market)," the President said.

The President said that to stir up domestic consumption more capital should be poured into small and medium enterprises (SMEs).

She said she would convince banks to lend money to small and medium scale industries, which are very effective in using credit, instead of lending money to luxury properties and industries, which have excess capacities.

"Loans should not go to luxury and unproductive sectors. Loans should go to SMEs which are the best users of capital," the President said.

The President said that in her meeting with the Cabinet last Tuesday, she has laid out the government program that would offer more loans to SMEs.

During the Cabinet meeting, the President said she also stressed the government’s stepped-up efforts to increase revenues from taxes, create more jobs and further invigorate the economy.

The President earlier said that with peace and order moving, it is now timely to create economic impact in the next one and a half years.

She said that the new economic strategy should be accompanied by prudent monetary policy, a ban on short-term foreign currency loans, which were the source of trouble during the 1997 Asian financial crunch, a gradual reduction in public sector debt, and a balanced budget in three to four years.

The Union of Local Authorities of the Philippines (ULAP), the body which represents the member leagues of local government units nationwide, today manifested its intention to help President Gloria Macapagal-Arroyo implement fiscal discipline by taking part in a cash-flow management scheme with concerned government agencies.

The ULAP’s support for the President’s policy of fiscal discipline is contained in a Memorandum of Agreement (MOA) signed by the ULAP, Department of Finance, Department of Budget and Management, Department of Interior and Local Government at the Heroes Hall in Malacanang this afternoon.

In the MOA, the ULAP has agreed that from September to December this year, the DBM would release to LGUs only 80 percent of its monthly Internal Revenue Allotment (IRA) release.

The DBM would defer the remaining 20 percent of the LGUs' development fund and would be released beginning January to June next year on top of the regular P141 billion due to LGUs for next year.

According to the MOA, this would effect a temporary reduction of about 6.7 percent of the P134.4 billion IRA level for 2002 vis ā vis the 25 percent withheld by DBM from the budget of the national government agencies this year.

Meanwhile, the DOF and the DBM would open a credit line facility or window for LGUs to loan the equivalent amount of their deferred IRA from Development Bank of the Philippines and the Land Bank of the Philippines within this year.

This is to coincide with the scheduled monthly release of the IRA to LGUs while the national government assumes the full payment to include the interest and all other related expenses.

With this, Interior and Local Government Secretary Jose Lina said in effect, the LGUs would still get their 100 percent share for 2002.

The DBM and the DOF would also include in the credit facility the P3 billion unreleased portion of the 2001 Local Government Service Equalization Fund (LGSEF) due all provinces, cities, municipalities and barangays.

According to the MOA, the DBM must consider and find ways of exempting the fourth and sixth class municipalities from this scheme.

The signatories to the MOU were Finance Secretary Jose Isidro Camacho, Budget Secretary Emilia Boncodin, Interior and Local Government Secretary Jose Lina and ULAP president Gov. Rodolfo Del Rosario.

The total IRA of LGUs for 2002 is P134.4 billion, representing 40 percent of the National Internal Revenues collected in 1999, of which P89.628 billion, or 66.67 percent, has already been released every 5^th day of the month by DBM to cover the period from January to August 2002.

According to the MOA, the credit facility given will not affect the debt cap of such LGUs.

President Gloria Macapagal-Arroyo today ordered all concerned government agencies, including the military and the police, to wage a "total war" not only against terrorism and lawlessness but also against poverty.

"Ours is a total effort, meaning it is not only an all-out war against the enemies of the state but also an all-out war against poverty. So that’s why I want to call it a total effort," the President said in her remarks at the Joint AFP-PNP Command Conference held today in Malacanang.

The President also thanked the local government units (LGUs), the military, the police and "everybody involved" for their contribution to this "total effort."

She also witnessed the signing of the implementing guidelines to the General Order No. 2 and Memorandum Order No. 61 related to the realignment of elements of the Armed Forces of the Philippines (AFP) and the Philippine National Police (PNP) in maintaining peace and order in Mindanao and in securing the citizens from terrorist attacks.

Defense Secretary Angelo Reyes and Secretary Jose Lina of the Department of Interior and Local Government (DILG) signed the implementing guidelines for their respective departments.

In a briefing, Brig. Gen. Samuel Bagasin, AFP deputy chief of staff for operations, said that the implementing guidelines call for the DND and the DILG to formulate policies and necessary actions to ensure coordination and integration of government efforts in their campaign against terrorism and lawless violence.

Under the guidelines, Bagasin said, an informer reward system will also be created to facilitate apprehension of those responsible for bombings and other acts of terrorism.

Bagasin said that the signing of the joint implementing guidelines "is a bold step taken by the DND and the DILG to stir up the AFP and the PNP in decisively addressing the lawless violence and terrorism in Mindanao."

"The said guidelines would give direction to the operative forces to attain the very elusive peace in Mindanao," Bagasin said.

M.O. 61 was signed by the President in mid-May to quell acts of violence and terrorism in some parts of Mindanao and to speed up the rehabilitation of conflict-affected areas.

In signing M.O. 61, the President said the rash of bombings and lawless violence in Mindanao, particularly in General Santos City and Cotabato City, necessitated an immediate, effective and adequate government response to avert further loss of innocent lives and destruction of property.

Under MO 61, the DND and the DILG were directed to organize all their personnel in Mindanao into Joint Task Forces (JTFs).

The DND secretary, according to the MO, shall have direct supervision and authority over the JTF in Western Mindanao, to include the Autonomous Region in Muslim Mindanao (ARMM), Region 9 or the Zamboanga Peninsula and Region 12 or the SOCCSKSARGEN Area, composed of South Cotabato, Cotabato, Sultan Kudarat, Sarangani and General Santos City.

The DILG secretary will exercise authority and responsibility over the JTF in Eastern Mindanao, to include Region 10 or Northern Mindanao, Region 11 or the Davao provinces, and Region 13 or the Caraga Region.

The MO also called on both the DND and DILG secretaries "to ensure that there is close coordination, mutual support and cooperation at all times among the officers and men of the AFP and the PNP."

The Philippine National Police (PNP) is a component branch of the DILG.

The PNP and the Intelligence Service of the AFP were also directed to jointly step up and focus their intelligence operations against individuals or groups responsible for committing and conspiring in the commission of acts of terrorism and lawless violence.

Under the MO, the DILG, along with the PNP, shall immediately establish an "informer rewards program" to help in the apprehension of those responsible for acts of terrorism and lawless violence.

"The PNP, when warranted, shall arrest all persons responsible for committing or conspiring in the commission of acts of terrorism and lawless violence, with due regard to their constitutional rights," the MO said.

Other salient provisions of the MO:

• The Department of Justice to closely coordinate with the PNP in the immediate prosecution of all individuals or groups responsible for committing or conspiring in the commission of acts of terrorism and lawless violence;

• The DILG and the DND to enhance coordination with local authorities and intensify community and barangay defense and anti-terrorist action plans, including the imposition of necessary security measures in Mindanao;

• The Department of Social Welfare and Development (DSWD) to extend emergency relief assistance to the victims of bombings in General Santos City and Cotabato City and other acts of terrorism and lawless violence; and

• The Presidential Adviser on the Peace Process and the Presidential Adviser for Special Concerns to strengthen existing back channeling efforts by enlisting the full support of all stakeholders to prevent and suppress acts of terrorism and lawless violence in Mindanao.