Malacañang today belied reports that the Department of Budget and Management (DBM) has imposed a mandatory 25 percent cut of the budget of all national agencies for the current fiscal year as a result of the tight financial condition of the government.

In an interview, Budget and Management Secretary Emilia Boncodin said that it is not true that the DBM is withholding the remaining 25 percent of the budget of state offices.

She said that at the start of the current fiscal year, it was already agreed that only 75 percent of the budget for all agencies would be released and the remaining 25 percent, which is for the fourth quarter of this year, would be given after the completion of a budget performance review of the agency concerned.

Boncodin also explained that the 25 percent is not mandated as reserve since it will be released to an agency after a performance review, thus the agency would eventually get its full budget for the year.

She said that the agency performance review started on August 16, adding that the release of the remaining 25 percent may be deferred if the agency’s budget performance is below par.

Boncodin said that in the past, when the DBM releases the whole amount to an agency, some agencies would say that they have already spent all their money but when November or December comes, they would declare a saving and then spend it for other purposes, like increasing the allowances or yearend bonuses of their employees.

"So as early as February, we have already notified all departments and agencies that we will only release 75 percent of their budget and the remainder of 25 percent would be released after they have passed the performance review," Boncodin said.

The budget chief also belied reports that the budget of some departments for fiscal year 2003, particularly that of the Department of Health (DOH), have been slashed, thus endangering basic services, especially for the poor.

Boncodin said that the DBM has not reduced the budget for government hospitals or the DOH. "Hindi po totoo iyon at hindi namin gagawin iyon (That is not true, and we will never do that)," she said.

According to Boncodin the DOH has two foreign-assisted projects (FAP) that would end soon. It was the government counterpart fund for these FAP that was taken out from the DOH 2003 budget, thus making the DOH budget appear as smaller than the preceding year.

"There is no reason for our people to be alarmed by this cut in the DOH budget because it will not entail a reduction of the appropriations for state-owned hospitals," Boncodin said.

Boncodin said that another reason for the apparent decrease in the budget of some agencies as shown in the proposed P804-billion budget for 2003 is the creation of a separate lump sum item, known as the Pension and Retirement Gratuity Fund, amounting to P28 billion.

National Security Adviser J. Roilo Golez said today the Philippine National Police, assisted by the Armed Forces of the Philippines, has maintained a high level of alert since September 11 last year in compliance with the directive of President Gloria Macapagal-Arroyo to secure all vital installations and establishments in the country.

Golez said the security measures cover foreign embassies in the country, particularly the embassies of the United States, Israel and the United Kingdom which requested them.

"Said embassies have been provided formidable perimeter and internal security," Golez said, referring to the US, Israeli and British missions.

The National Security Adviser said the supposed Al-Qaeda plot to bomb the US and Israeli embassies, which was reported by the Cable News Network (CNN), is "an old unverified story that came out early this year."

"So far, in spite of relentless domestic intelligence effort and coordination with counterpart intelligence organizations abroad, there has been no confirmation or more solid evidence that there is really such bomb plot," Golez said.

"Nonetheless, the security group does not take anything for granted," Golez said.

Golez said the CNN report is a feature story, not news, on international terrorism.

"I note that the CNN has been running a series on Al-Qaeda, Jemaah Islamiya, and other international terrorist organizations operating in the Asian region," he said.

President Gloria Macapagal-Arroyo today directed the new Armed Forces of Philippines (AFP) Chief of Staff, Gen. Benjamin Defensor, Jr., to modernize the country’s military doctrine, saying the Philippines has enough great battles to inspire and serve as models and lessons for the Filipino soldiers.

The President gave this directive at the turnover ceremonies of the 30^th AFP Chief of Staff in Camp Aguinaldo. Quezon City at 10 a.m. today.

Defensor, former chief of the Philippine Air Force (PAF), succeeded Gen. Roy Cimatu, who retires after 36 years in the military service.

The Commander-in-Chief said her guidance to modernize the doctrine was also given to Defensor’s predecessors, now Defense Secretary Angelo Reyes, Gen. Diomedio Villanueva, and Gen. Cimatu.

All of these AFP chiefs observed the continuity of following the guidance of the Commander-in-Chief with internalized convictions belied the critics’ charge that short terms in the Office of the Chief of Staff are anathema to stability in the leadership of the armed forces, the President said.

The President pointed out that groups who criticize the AFP chief’s short tenure are wrong because they do not appreciate the principle of professional continuity in the military command, the command as an institution and not the command as persons.

"These critics are wrong because they presume that leadership in the armed forces is politicized," the President said.

"Leadership in the armed forces is not politicized, it is a professional," the President stressed, saying that the critics were wrong because they underestimate the loyalty and professionalism of the men in uniform.

The President pointed out that it is of no great consequence how long a Chief of Staff serves his tenure. "What is important and indispensable is the permanence of values, standards and norms in the armed forces," she said.

While guidance of modernizing the military doctrine has been internalized by the leadership of the armed forces through three commanders, the President expressed the belief that now is the time to institutionalize the doctrine throughout the organization.

She said the modernization of the military doctrine should take into account what is called "the post-military affairs revolution thinking" regarding the changing military mission brought about by the growth in the power of the criminal terrorists and other armed non-state organizations that now challenge traditional nation states in many parts of the globe.

She said the 20^th century US model of civil military relations and task allocation in which the military looks outward and law enforcement agencies do the domestic chores is breaking down everywhere.

The last revolution in military affairs occurred in the 1980’s consisting of high-tech warfare as in Desert Storm, but this revolution, started 20 years ago and more, is over now and a new paradigm is prevailing, the President said.

The President said the country is being confronted today by creatively organized enemies, employing behaviors and technologies ranging from the Stone Age to those at the Imagination’s Age.

"This model, as I said, is breaking down everywhere, criminal terrorists and other armed non-state organizations have grown too powerful and adept in extreme cases, we have seen the emergence of enterprise armies. And we have seen that in the Philippines," the President said.

The President said that the modernization of the country’s armed forces will allow us to possess the material tools for the job in fighting the emerging wars against criminal ghosts states, para-states and criminal enterprise armies.

"But even if we modernize the material tools of our armed forces, we would still lack innovative methodologies and adequately contemporary laws unless we modernize doctrine," she said.

To address the broad range of emerging threats, the President admitted the military needs new weapons. "But we also need new rules of engagements," she said.

President Gloria Macapagal-Arroyo today expressed the belief that the new Armed Forces of the Philippines (AFP) Chief of Staff, Gen. Benjamin Defensor, Jr., will uphold the Constitutional mandate and sustain the unity of purpose and singularity of direction that now drive the country’s armed forces.

Speaking at the Change of Command ceremony when Gen. Defensor, Jr., former chief of the Philippine Air Force (PAF), took over from outgoing Chief of Staff Gen. Roy Cimatu, the President said that Defensor has consistently been known for his "innovative spirit and strategic finesse."

The President said Defensor’s First Force strategy for the Philippine Air Force which was developed in response to her call for a definition of AFP doctrines, is among the solid testaments of the general’s high quality of leadership and talent.

The President described Defensor, the First Ilonggo to become Chief of Staff, as an "innovator, a pioneer and a trailblazer."

Defensor is only the second PAF chief in AFP’s history to make it to the top post. General Arnulfo Acedera made it in 1995 during the time of President Fidel Ramos. Lt. Gen. Pelagio Cruz, the other AFP chief widely regarded to have come from the Air Force, actually rose from the Philippine Constabulary.

The President also congratulated General Cimatu for a mission "magnificently accomplished."

Among Cimatu’s biggest accomplishments were the capture of most of the 46 camps of the Moro Islamic Liberation Front (MILF) during the Central Mindanao War in the summer of the 2000, and the crippling 1,200-man Abu Sayyaf terrorists, reducing the extremists group to about 200.

As commander of the Southern Command, the President said Cimatu continued to impress both Philippine foot soldiers and American top brass with his excellent and aggressive campaign plans against the Abu Sayyaf.

GUIGUINTO, Bulacan – President Gloria Macapagal-Arroyo today led the launching of the Kilusang Kwatro (K4), the national prayer movement focused on institutionalizing prayer in daily Filipino life.

The launching, held at Café Valenzuela in Barangay Tabang, was set up by the leadership of the Philippine Ministerial Fellowship Network, one of the members of the organizing committee in the last National Day of Prayer called by the President herself.

K4 seeks to make every Filipino pray for government leaders for four times a day, the first is after one wakes up in the morning and the rest is the saying of grace before the three meals.

The movement is specifically focused on the strategic executives of land – the President, the Governors, the Mayors and barangay captains.

In her brief remarks, the President lauded the efforts of the Philippine Ministerial Fellowship Network for making prayer a daily part of the Filipino lives.

She recalled that she asked the group during a meeting with them at Malacañang to pray against the evil spirits hounding the Filipinos now – skepticism and hopelessness.

The President said the efforts to institutionalize prayer in our daily lives are very laudable.

She said she has always believed that the most powerful arsenal in any war is prayer.

"Sa mga panahong ito, hindi sapat ang modernong sandata. Kailangan din natin ng modernong pag-iisip at mga istratehiya. At sa ating paglalaban, ang sandata na hindi naman bagay na materyal, lalo na sa giyera sa pamamagitan ng katiwalian, ang pinakaimportateng sandata ay yung sandata ng panalangin (In these times, it is not enough to have modern weapons. We also need modern thinking and strategy. And in our fight against corruption, the most effective warfare is prayer)," the President said.

K4 also stands for Kalusugan, Kaligtasan, Karunungan, Katuwiran, four qualities that are being prayed for.

The President said that she hopes to be like David in the Bible, whose prayers were granted by God.

She added that she prays to have King Solomon’s wisdom.

Accompanying the President to the event were Interior and Local Government Secretary Jose Lina, Jr., Presidential Assistant for Cooperatives Roberto Pagdanganan and Presidential Assistant for Religious and Ecclesiastical Affairs Conrado Limcaoco, Jr.

Welcoming the President at the venue were Bulacan Gov. Josefina de la Cruz, Representatives Wilfredo Villarama and Joel Villanueva, Guiguinto Mayor Ambrosio Cruz, Jr., Bishops Eddie Villanueva, Efren Tindero, Romero Corpuz, Reverend Jonel Milan and Benjie Gatchalian, PNP Regional Director Oscar Calderon and North Luzon Command chief Maj. Gen. Rodolfo Garcia.

GUIGUINTO, Bulacan – President Gloria Macapagal-Arroyo today released the amount of P10 million to the provincial government of Bulacan.

The amount, according to the President, would be given as loan by the Land Bank of the Philippines to the first ten towns of Bulacan that would be able to come up with project proposals on how to develop a certain product.

The President, who made the announcement in her speech before Bulacan barangay officials at the Bulwagang Bayan Covered Court here, said the P10 million is the first of many loans that the government would be granting to small towns in the bid to further develop the domestic market.

"This is what we call One Town, One Product, One Million Peso enterprise," the President said.

The President noted her earlier call on the Filipino people to concentrate efforts in the development the domestic market through small and medium enterprises.

She noted that the Filipino people must rely more on the domestic demand to prop up the economy, rather than depend on the export market.

Aside from this, the President called on the new Bulacan barangay officials to practice "new politics" by being true to their responsibilities.

She noted that barangay officials are the "frontliners" in the administration’s bid to build a strong republic.

Earlier, the President officiated the oathtaking of barangay officials to the Lakas party.

She was also presented a copy of the signed Memorandum of Agreement entered into by the Metropolitan Waterworks and Sewerage System, San Jose del Monte City Water District (SJDMCWD), Bulacan provincial government and Local Water Utilities Authority for the supply of raw water by MWSS to the SJDMCWD.

The President also distributed 340 peacekeeping kits, consisting of gadgets such as whistles, flashlights and night sticks to 245 barangay officials.