President Gloria Macapagal-Arroyo today created two task forces to institute long-needed reforms in the Department of National Defense (DND), particularly in the procurement process of the Armed Forces of the Philippines (AFP).

In her speech at the 40^th anniversary of the National Defense College of the Philippines held this morning at Camp Aguinaldo, the President said one task force would be headed by Constancia de Guzman, who finished her Ph.D. at the NDCP, and is now appointments secretary in Malacaņang.

"We have seen a misadventure in counter-reform. We shall answer it with more reform. We have seen an exercise in political illegitimacy. We shall answer it with the greater force of the Constitution and the law," the President said, referring to the short-lived military adventurism by young military officers in Makati City last July 27.

The President said the first task force, to be headed by de Guzman, would focus on how to reform and streamline the AFP’s procurement process and funds disbursement.

She said the task force would get as members management or organization experts like Vic Limlingan of the Asian Institute of Management and personalities known for their integrity like former Defense Secretary Renato de Villa.

The task force should also include representatives from the Commission on Audit (COA) and the Department of Budget and Management (DBM) who are familiar on how corruption works in the government, the President said.

The President directed the task force to complete a management audit in a month’s time and to implement the needed reforms in the AFP procurement and funds disbursement process in another month’s time.

According to the President, the reforms that the task force would recommend would be institutionalized through an executive order and a permanent office will be created at the DND solely to continuously review AFP procurement and funds disbursement.

The second task force that the President created is an anti-corruption unit at the DND that would work in tandem with the Presidential Anti-Graft Commission (PAGC).

This task force, the President said, would not only investigate complaints of corruption and make sure that these complaints are being acted upon by the Deputy Ombudsman for Military Affairs but also conduct comprehensive lifestyle checks on military officers.

The President said the lifestyle checks should be conducted with the same zealousness that government prosecutors are doing against corrupt officials of the Bureau of Customs, Bureau of Internal Revenue and the Department of Public Works and Highways (DPWH).

She said that one of the immediate concerns of this task force is to make firm recommendations for evicting officers occupying AFP houses past the regulations.

President Gloria Macapagal-Arroyo today called on the Filipino people to banish all "residual fears" brought about by the July 27 military misadventure and get on with the normal course of their work and business.

In her speech at the 40^th anniversary of the National Defense College of the Philippines (NDCP) held this morning at Camp Aguinaldo, the President said while several coup leaders continue to be at large, they will all be accounted for through the normal run of law, intelligence, enforcement, investigative and judicial processes.

"This shows the shallowness of the conspiracy as well as the unremitting capacity of our democratic system to mete our justice and due process," the President said.

The President also said that contrary to allegations made by their lawyers, all those detained for their involvement in the July 27 mutiny have access to lawyers and medical attention.

"There is transparency in all military and civil investigations and processes," the President said, adding that charges of human rights violations are a "figment of propaganda."

The President said that we should let justice take its course, blindly and inexorably. "The court will take charge of these matters," she said.

According to the President, the government has now a good idea of who were the leaders and co-conspirators of the coup plot, and who were the simple followers or those who were deceived and misled into joining the military misadventure.

She said the government would deal with these disgruntled and misguided groups under a range of actions "commensurate with their depth and scope of involvement, under strict standards or justice and due process."

At least 119 thrift, rural and cooperative banks have provided an aggressive boost to the government’s micro-financing program, lending out an aggregate P2.1 billion to benefit more than 394,000 borrowers.

This did not escape the eyes of state economists from other countries who came to visit the Philippines to find out for themselves the success of the latter’s program on micro-finance.

In a report to President Gloria Macapagal-Arroyo, Bangko Sentral ng Pilipinas (BSP) Governor Rafael Buenaventura said two more banks have pending applications with the BSP.

Most of the micro-financing program beneficiaries are engaged in small and medium enterprises (SME) and agricultural production.

Buenaventura said that last year, only 11 banks with 22 branches gave the program a big push in 11 provinces, namely Nueva Vizcaya, Pangasinan, Nueva Ecija, Cavite, Oriental Mindoro, Iloilo, Leyte, Misamis Oriental, Rizal, Batangas and Catanduanes.

Five of the provinces did not previously have any bank with micro-finance operations; and as of May 2003, micro-financing could be obtained from the 119 banks with 258 branches operating in 65 provinces nationwide, he added.

At the same time, the BSP has granted rediscounting facilities to 10 banks with an outstanding loan of P21.7 million involving over 9,600 borrowers.

Since the rediscounting facility was opened, the total amount granted reached P114.4 million involving more than 14,000 borrowers.

Buenaventura also informed the President that delegations from Indonesia, Tanzania and Papua New Guinea visited the BSP for a "study tour to learn more about the BSP rules and regulations on micro-finance."

He said the BSP has continued to promote and provide incentives for micro-finance activities nationwide, particularly in increasing the outreach of banks and ensuring their sound and sustainable operations.

The BSP has also conducted advocacy meetings to provide private foundations and corporations to explore ways in which they could help the micro-finance industry in the country.

Further, the BSP conducted seminars for more than 100 BSP bank examiners to upgrade their skills, knowledge and understanding of micro-finance.

President Gloria Macapagal-Arroyo today conferred the Presidential Citation to the Philippine National Police (PNP) and Armed Forces of the Philippines (AFP) in recognition of their courageous and faithful commitment to defend the Constitution and the important role they played in quelling the rebellion on July 27, 2003.

The President handed over the Presidential Citation to AFP Chief of Staff Gen. Narciso Abaya and Chief Superintendent Avelino Razon, director for Human Resource and Doctrine Development of the PNP.

In a speech during the 40^th foundation anniversary of the National Defense College of the Philippines at Camp Aguinaldo in Quezon City, the President said "I will give this Presidential Citation to the PNP and AFP in appreciation of their integrity, devotion to duty and commitment to professional competence and moral excellence, qualities deserving of the respect and admiration of the Filipino people."

She cited the soldiers who remained loyal to the Constitution and reinforced the strong sense of military professionalism while remaining true to the chain of command.

She also commended the police force for their courageous and faithful performance of duties and responsibilities in effectively maintaining peace and order on July 27.

Before the President’s speech, Defense Secretary Angelo Reyes and retired Commodore Carlos Agustin, president of the NDCP, assisted the President in distributing plaques to outstanding NDCP alumni and meritorious service awards to 39 officers of the AFP and PNP.

The Outstanding Alumnus awardees from the AFP and PNP are Brig. Gen. Edgar M. Calvo, Brig. Gen. Ricardo Nobleza, Major Gen. Orlando Buenaventura, Brig. Gen. Ignacio Illenberger, Brig. Gen. Jacinto Cordero, Commodore Alvin Urbi, Brig. Gen. Roberto Dimayuga, Brig. Gen. Valentino Prudencio, Brig. Gen. Severino Estrella, Brig. Gen. Amador Alohado, Major Gen. Apolonio Ugale, Jr., Commodore Gilmer Batestil, Commodore Abraham Abesamis, Commodore Jose Alberto Velasco, Brig. Gen. Christie Datu, Commodore Victor Parawan, Brig. Gen. Antonio Seville, Brig. Gen. Efren Orbon, Brig. Gen. Ericson Aurelio, Brig. Gen. Ferdinand Bocobo, Brig. Gen. Cesar Tiongson, Commodore Tirso Danga, Commodore Ceferino Dacanay, Chief Supt. Restituto Mosqueda and Chief Supt. Delfin Genio, Jr.

The Outstanding Alumnus awardees from the civilian and government sectors are Atty. Alberto Bernardo, assistant executive secretary for Internal Audit Service from the Office of the President; Jaime Naranjo, Director IV of the Commission on Audit; Mariano Valera, Director IV (retired) of the DENR; Benito Bengson, Jr., Director IV/Officer-in-Charge of the Department of Tourism Tokyo, Japan Office; Carina Valera, undersecretary (retired) of the Department of Transportation and Communication; Atty. Elizabeth Zosa; and Capt. Regino Giagonia, president of Grace Marine and Shipping Corporation.

The Meritorious Service awardees are Atty. Pedro Banzon, NDCP academic board member; Dir. Gen. Rufino Ibay, Jr., president and CEO of the Armed Forces and Police Savings and Loan Association, Inc.; Gen. Eduardo Cabanlig, former president of the NDCP; Governor Margarita Cojuangco and Lieutenant Col. Benjamin Dofitas, Jr., chief, foreign liaison office of the Philippine Air Force.

The Silver Jubilarians are Mariano Abad, Roberto Abad, Jose Abletez, Delfin Alonzo, Gregorio Aquilizan, Rogelio Covar, Adolfo Crisol, Edgardo Cuchapin, Miguel Doctor, Humberto Garganera , James Go, Ernesto Herrera, Lourdes Jaguros, Epineto Logico, Alfredo Loresco, Santiago Medrana, Flordelis Navarro, Feliz Pagaluan, Rachel Pelaez, Ernesto Rafael, Domingo Rio, Josefina Roque, Erlinda Rosas, Manuel Roxas, Nestor Santos, Teodorico Seno, Antonio Silva, Aquilino Silverio, Leonardo Sioco, Eduardo Taduran, Artemio Tumakay and Daisy Villanueva.

Upon her arrival, the President unveiled the Diosdado Macapagal marker at the main entrance of the three-story NDCP building.

Goodbye, state of rebellion. Hello, economic growth and reform agenda.

This, in a way sums up government efforts to refocus on the economy now that it has put behind the failed mutiny in Makati while it continues to stabilize the security situation.

Deputy Presidential Spokesman and Cabinet Secretary Ricardo Saludo said in a press briefing today that the administration of President Gloria Macapagal-Arroyo will continue to build on recent economic gains including the 5.2 percent growth, record-low inflation and interest rates, falling unemployment level and the improving deficit picture which he tagged at 22 percent below the first semester target ceiling.

Saludo cited six growth and reform initiatives to be pursued by the government in the coming months.

These are:

1. The wholesale electricity spot market which will further lower electricity charges to big users and help boost local industries;
2. Target 2 million tourist arrivals this year;
3. Port and road works to complete the Strong Republic Nautical Highway;
4. Target another P10 million for the Sulong program which has already generated PP11.8 billion in SME (small and medium enterprise) loans from January to June 2003;
5. Target another 400,000 jobs by next June on top of the 600,000 plus increase in rural jobs since 2001;
6. Crucial infrastructure pressed for by the business sector are moving speedily, including the extension of South Luzon Expressway all the way to Batangas City; and
7. Completion of the LRT-MRT loop within the year.

Saludo said the government is also collaborating with Congress in fast-tracking the passage of major economic legislation which includes, among others, farmland as loan collateral, Transco franchise bill, automobile tax rationalization, indexation of excise taxes, rationalization of the documentary stamp tax, national revenue administration, Securitization Act, Dual Citizenship Act, and creation of the Department of Housing and Urban Development.

On the political front, Saludo revealed that the government is pushing the anti-terrorism bill, compensation for human rights abuses and campaign finance reform.

In addition, programs to address problems in the Armed Forces are continuing, he said.

"By January 2004, Republic Act 9166 will be fully implemented and AFP salaries shall be at par with the PNP and public school teachers," Saludo said.

To provide decent and affordable housing to military personnel, construction of 13,000 housing units are targeted to start within the year, he said.

At the instance of the Secretary of National Defense, he added, the Department of Budget and Management is now handling the bidding and procurement of AFP supplies.

Saludo said the economic impact of the failed mutiny is very minimal, claiming that the state of rebellion declared by President Macapagal-Arroyo helped stabilize the situation very quickly.