In an interview with Cable News Network initially aired during the weekend, the President said: "Now that I am out of the contest for the 2004 elections, that gives me much more leeway and freedom to pursue with laser beam focus the reforms that are really needed to build our country into a strong Republic."

"As I said in my first State of the Nation Address, I would like to make the Bureau of Internal Revenue and the Bureau of Customs showcases in the fight against graft and corruption," she said.

The President added that since she doesn’t have to do political maneuverings anymore, then she could devote more time to the task of fighting graft and corruption and institutionalizing good governance.

During the signing of the Special Purpose Vehicle Act and the Government Procurement Reform Bill at the Philippine Stock Exchange last Friday, the President challenged leaders and members of the business community and the people in general: "If anyone in my government tries (to commit business fraud and extortion), tell me."

The two new laws are part of the administration’s accelerated efforts to fight graft and corruption, revive the economy and institutionalize good governance.

In that same venue, the President signaled the Presidential Anti-Graft Commission (PAGC) to step up its investigation on the lifestyle of members of the Cabinet and other presidential appointees.

She instructed Budget Secretary Emilia Boncodin to double the budget of the PAGC to further empower it to make lifestyle checks and file appropriate cases against government officials found to be living beyond their means.

Just over the weekend, the President affirmed the decision and recommendation of the PAGC that found five officials of the Department of Public Works and Highways "guilty of dishonesty, grave misconduct, gross neglect of duty and conduct prejudicial to the best interest of the service" in connection with the P139-million vehicle repair scam last year.

The President thus ordered the dismissal of Directors Burt B. Favorito of the Administrative Manpower and Management Service, Emily M. Tanquintic of the Comptrollership and Financial Management Service, Abraham S. Divina, Jr. of the Bureau of Equipment and Oscar D. Abundo of Legal Services and Assistant Director Florendo B. Arias, also of the Bureau of Equipment.

Besides outright dismissal, the DPWH officials were also imposed the penalty of "forfeiture of retirement benefits and perpetual disqualification for reemployment in the government service."

The President initially ordered the PAGC last October to spearhead a lifestyle check of all government officials from Cabinet secretaries down to bureau directors as well as executives of government-owned and controlled corporations (GOCCs), government financial institutions (GFIs) and other offices of the executive branch.

In her speech at the Third Farmer-Scientists Congress held at the Colawin Technical School in Cebu, the President said the aim of the administration campaign is to foster honesty in public service.

The President said that under this campaign those who have shown dedication and fidelity to the service will be rewarded but sanctions will be imposed on government officials and employees found to have amassed wealth and property beyond their means "or those who visibly live in affluence when their circumstances do now warrant such luxury."

President Gloria Macapagal-Arroyo today said that her successor will benefit from her decision not to run in the presidential elections in 2004 since all her efforts for the next l8 months are geared to lay the foundation for a prosperous and strong Republic.

In an interview with Maria Ressa of the Cable News Network (CNN) aired today, the President also reiterated that she would not seek the presidency next year even if she would be able to achieve her goals for the next one and a half years.

"My successor, of course, will benefit from my sacrifice (because) he will be more successful in finally bringing our country to the road of prosperity and the strength of the state," the President said.

The President said that she hopes her not running in 2004 would remove politics and divisiveness from the country’s national development efforts.

Now that she is relieved of the burden of politics, the President said, she could concentrate on her three main goals, namely: strengthening the economy, healing the divisions among the people, and working for a free, clean and honest election in 2004.

According to the President, the division in the country was caused not just by partisan politics but also by forces identified with EDSA 2 and the May 1 movement composed of Estrada loyalists.

"If I am going to be part of that divisive landscape, then I won’t be able to do any healing at all and I will be too distracted from the main task of strengthening the economy," the President said.

The President also clarified that her decision not to seek the presidency in 2004 does not make her a lame duck but, on the contrary, would give her more power in pushing for reforms even against vested interest and politicians.

"Now that I am relieved of the burden of politics, I can move forward and work for the reforms that would otherwise be impeded by vested interests that politicians usually have to pay attention to or take into consideration," the President said.

The President admitted that since the Philippines is not yet a strong state, vested interests play a profound influence in governance, especially in economic policy.

President Gloria Macapagal-Arroyo today said the Philippines continues to have faith in the United Nations process in seeking a peaceful solution to the Iraqi crisis.

In an interview with Maria Ressa of the Cable News Network (CNN) aired today, the President said this was the position taken by the Philippines at the time when there was a threat of a unilateral action against Iraq by the United States.

"I’m sure it will work out as it did at that time. So, I’m saying the same thing today," the President said, adding that anything outside that would be purely speculative.

"As I’m saying that’s very hypothetical as it was hypothetical the last time around and if we had given ourselves to dwell on the hypothetical, we would not have given the chance for that unanimous resolution to come out," the President said when asked how the Philippines would react in the event that the US attacks Iraq.

President Gloria Macapagal-Arroyo today stressed the importance of inter-faith dialogues to bring about national peace.

In an interview with Maria Ressa of CNN during the weekend, the President said "it is important for the Christians to understand the Muslim religion and culture and also to reach out and explain the Christian religion and culture."

She said she had been pursuing inter-faith dialogues as a priority activity following the infamous September 11 terrorist attacks in the United States.

"I’m glad that there are other countries, other governments, other political groups that are also participating in the promotion of inter-faith dialogues," she told CNN.

She cited the Christian Democratic International and the government of the United Kingdom for undertaking the priority satrategy.

The President likewise said that inter-faith dialogues have been continuing in Southern Philippines, where the secessionist Moro Islamic Liberation Front (MILF) has been operating.

She expressed optimism that the MILF would continue traversing the road to peace and go on talking peace with the government.

But she also made it clear that for those "who are not willing to go on the road to peace, the military solution is also something that is effective.

"There is an opening" for attaining peace, the President said.

The government is hoping that the MILF would realize that "there is more life for their people, who are of course our people, if they go on the road of peace," she told CNN.

This meant that the MILF should also continue peace negotiations with the government, lay down their arms and seek to participate in national development, she stressed.

"We are hoping that by dealing with the MILF both militarily and politically, we can get them to understand that they must break all links, if any, with terrorist groups," the President added.

She, however, said she would not want "to be detailed on intelligence reports," particularly a white paper that claimed that the MILF maintained links with the Al-Qaeda group of international terrorist Osama bin Laden.

"Our peace efforts are aimed at getting the MILF to recognize that peace is the better road for them than being linked with terrorist groups," she said.

President Gloria Macapagal-Arroyo today lauded the United Kingdom for its continued support and cooperation with her administration in promoting sustainable energy research and development and technology transfer.

The President made the remarks during the courtesy call of Brian Wilson, the UK Minister of State for Energy and Construction, who conveyed his government’s solid assurances of support to the Macapagal-Arroyo administration.

During the call, the President thanked Wilson and his delegation on the government’s commitment to boost and strengthen trade and bolster investment in the Philippines.

"Thank you very much. I hope your visit will give way to a strong and deeper political and business relationship between the Philippine and British governments," President said.

In their brief meeting, the President and Wilson discussed trade and investment opportunities in the energy sector of the country.

After the call, Energy Secretary Vicente S. Perez, Jr. and Wilson signed a Memorandum of Understanding (MOU) on Collaboration in Power Sector Development and Sustainable Energy Research and Development and Technology Transfer.

The MOU will pave the way to further strengthen the confidence of the British government in the Macapagal-Arroyo administration to steer the Philippines on the road to prosperity and success.

"Today we just signed a memorandum of understanding between the Philippines’ Department of Energy and the UK’s Department of Trade and Industry on cooperation on energy, particularly sustainable energy," Perez said in an interview.

Perez said the government of the United Kingdom has been quite supportive in the Philippines’ power sector reform. In fact, the UK is the biggest investor of the Malampaya natural gas exploration project in Northern Palawan.

He added the agreement on Collaboration in Power Sector Development and Sustainable Energy Research and Development and Technology Transfer will enable both countries to share tasks, facilities and experts.

Perez believes that the MOU "will lead to the establishment of a center of excellence," which will serve as a hub for energy technologies and database to be set up in the Philippines, to cover energy technologies and power generation.

"We hope that this MOU will lead to sustainable energy research and development. The UK energy industry is well advanced down the path of energy deregulation. We can learn from their experiences and probably tap their expertise and resources to make our own energy sector successful," Perez said.

Under the agreement, both countries have pledged to pool resources to develop:

• renewable energy technologies, including wind and wave power, biomass, geothermal and solar technology;
• cleaner fossil fuel technologies;
• power sector management techniques; and
• more efficient energy end-use technologies and techniques

On his part, Wilson also thanked the President for her clear commitment to develop the country’s power sector, and a determination to move away from a carbon-dependent economy.

President Gloria Macapagal-Arroyo has affirmed that terrorism remained her "biggest concern," as she noted the importance of meeting terrorism head on through military, economic and diplomatic terms

"A military solution, political solution, cultural solution, economic solution – they are all important" to ward off terrorism, the President told Maria Ressa of CNN in an interview.

She stressed that the military solution "is to make sure that we win" while the political solution would assure peace talks "with those who are willing to try and give peace a chance."

She told the CNN that terrorists desired to make their war a religious war. The cultural solution would instead "make (this situation) an opportunity for religious understanding."

"The economic solution, of course, is to remove the recruiting ground for terrorism which is to really not be distracted from our fight against poverty," she said.

Asked by Ressa if the same priorities were evident in the United States, the President said the Americans, by and large, "agree with my hypothesis that the war against terrorism cannot be won just militarily."

The other contributing factors, particularly poverty, should also be addressed. "This is reflected in the kind of assistance that the US gives the Philippines," she added.

She expressed gladness that her call for a global war against poverty was recognized during the Monterey Summit.

The President also noted the global alliance against terrorism initiated by the US, as she pinpointed a similar coalition against terrorism in Southeast Asia spearheaded by the Philippines, Malaysia, Indonesia, Thailand and Cambodia.

"This kind of alliance has been quite successful in defusing the evil of terrorism," she told CNN.

She said the war on terrorism is a global transnational war devoid of boundaries. She urged unity, sharing of intelligence and cooperation.

ROSARIO, Cavite – President Gloria Macapagal-Arroyo today fulfilled the dream of young couple Rolando and Evelyn Dayrit to have their own house as she personally gave them the key to their new home at Barangay Bagbag here through the President’s "GMA Abot-Kayang Pabahay at Palupa."

"Masayang-masaya kami (We’re very happy)," said Evelyn, 35, while holding their three-year-old daughter Christina Nicole.

Rolando, 31, said he and his wife only applied last August for on-site socialized housing and were informed last week that their applications were completed, raffled and approved.

Rolando said he was surprised to learn that their application was approved immediately and that the President herself would be the one to personally give them the key to their new house.

"Nag-apply kami ng August tapos January lang may bahay na kami," Rolando said.

The couple would be paying P990 monthly for 25 years. The housing unit sits on a 40-square meter lot with a 20-square meter living area and a 10-square meter loft. The couple, who used to be renters at the same barangay, are employed as factory workers at the Cavite Economic Processing Zone Authority.

Aside from distributing keys, the President gave Certificates of Occupancy to applicants for the on-site socialized housing lots at a cost of P500 monthly for 25 years.

In handing out keys and Certificates of Occupancy, the President noted the importance of housing projects for the poor.

"Ito yung bahagi na sinasabi ko na microeconomic measures, kasi ang housing ang pinakamalaking multiplier sa lahat ng industriya (this is part of the microeconomic measures because housing is the biggest multiplier in all industries)," the President said.

The housing units form part of the President’s promise to distribute 25 hectares to 3,500 informal settler families and to develop the vacant lots for socialized housing.

The President said the commitment to build mass housing of Filoil Development and Management Corp. (FDMC), the implementor of the project in coordination with the Housing and Urban Development Coordinating Council, forms part of the private sector’s vow to build half-a-million housing units.

"Ito ay bahagi ng ating tinutulak na housing bukod sa small and medium enterprises na pinakamaaasahan natin para umangat ang ating domestic demand sa kabila ng mga problema sa buong mundo (This is part of our effort, aside from strengthening SMEs, that we can rely on in stimulating the domestic demand in spite of the many problems in the world)," the President said.

Philippine National Oil Company president Cirillo Martinez, during a briefing at the site, said 141 of the 500 housing units promised under the "GMA Abot-Kayang Pabahay at Palupa" have been completed, raffled off and awarded to the beneficiaries.

Meanwhile. 395 applications for the on-site socialized housing have been processed and approved by an inter-agency committee.

The remaining 359 off-site housing units and the remaining 2,600 lots undergoing survey and subdivision of titles would be completed early next year.

Last year, the President distributed Certificates of Lot Entitlement and Certificates of Occupancy to some 60 housing beneficiaries in the same area, while the rest of qualified awardees got their certificate through their respective barangays.

The distribution of Certificates of Lot Entitlement and Certificates of Occupancy to qualified residents at the FDMC compound is provided for under Executive Order No. 59 issued on December 1, 2001.

EO 59 authorizes the FDMC "to segregate and dispose of its properties in Rosario and Noveleta, Cavite to bonafide occupants."

The GMA Abot-Kayang Pabahay at Palupa, which is a component of the President’s socialized housing program, is in line with the Macapagal-Arroyo administration’s continuing efforts to give shelter security to informal settlers, especially those living on idle government lands for the longest time.

In her brief remarks during the distribution ceremonies in Rosario last year, the President said that although the previous administration boasted of championing the cause of the poor, it actually wanted to drive out the residents of the FDMC compound.

When she assumed the presidency, the President said, she insisted that the residents remain in the area. "Dati, pinapaalis kayo. Ngayon, hindi na kayo squatter sa sarili ninyong bayan," she said.

Press Secretary Ignacio Bunye today announced the appointment of former Bulacan governor Roberto M. Pagdanganan as Secretary of the Department of Agrarian Reform (DAR).

Bunye said Pagdanganan’s appointment would take effect January 20.

Pagdanganan will replace former DAR Secretary Hernani Braganza who has been appointed as Press Secretary effective January 15. Bunye will be the Presidential Spokesman.

Pagdanganan, until his assumption to the DAR, is the Presidential Adviser on Cooperatives. He is also the chairman of the Board of Administrators of the Cooperative Development Authority.

He was three-time governor of Bulacan from 1986 to 1998.

American best-selling author Dr. John Maxwell today lauded President Gloria Macapagal-Arroyo for being a moral and spiritual leader to the Filipino people when she decided to sacrifice her personal interest by not running in the 2004 elections.

In a courtesy call in Malacanang this afternoon, Maxwell described the action taken by the President as a "very courageous and brave decision."

"Your decision is really laudable. I think that you made a very courageous decision. This is a clear manifestation that you are a good moral and spiritual leader to the Filipino people," Maxwell told the President

The President said she was glad that Maxwell visited the Philippines.

"We are happy that you are here to visit me and share the word. We thank you for sustaining the spirituality of the Filipino people," the President said.

Also present during the visit courtesy call were National Security Adviser Roilo Golez and Presidential Adviser on Media and Ecclesiastical Affairs Conrado Limcaoco.

President Gloria Macapagal-Arroyo today activated the National Economic and Development Authority (NEDA) Board Executive Committee (Excom) which will act as the President’s core group on economic policy.

The Chief Executive, who is also NEDA Board chairman, activated the NEDA Board Excom during a meeting held this afternoon at Malacanang.

The meeting was attended by Executive Secretary Alberto Romulo, NEDA Director General and Economic Planning Secretary Romulo Neri, Finance Secretary Jose Isidro Camacho, Trade and Industry Secretary Manuel A. Roxas II, Budget and Management Secretary Emilia Boncodin, and Agriculture Secretary Luis Lorenzo, Jr. Bangko Sentral ng Pilipinas Governor Rafael Buenaventura attended the meeting as a resource person.

During the meeting, the President asked the economic managers and members of the Executive Board to work for the immediate legislation of administration priority measures and to inform the public on a regular basis of the progress of discussions and actions on vital administration projects.

From among the priority government measures, the President cited in particular the Securitization Act, Indexation of Sin Taxes to Inflation, the 2003 General Appropriations Act and the Anti-Money Laundering Bill.

In a press briefing later at Malacanang, Presidential Spokesman Ignacio "Toting" Bunye said concerned Cabinet members will be sitting in the NEDA Board Excom from time to time "as may be deemed necessary by the Executive Board.

He said the committee will be meeting at least "once a week to really oversee the implementation of the priority projects of the President, namely, the eight-point program and some other new projects that will be discussed from time to time."

Neri said the meeting was called by the President "to get this NEDA Board Excom organized to set the ground rules on how we will operate from now on and to also set the agenda for the next few meetings."

Neri noted that since there was supposed to be an economic managers meeting for today, "we also discussed what was going to be discussed in the economic managers meeting, in particular the problem of the statistics in our balance of payments especially in the so-called over -valuation of the current account surplus."

Also discussed, he said, were the key legislation that would "enhance the credibility of the Philippine government vis-à-vis our creditors and other foreign investors."

Last December 17, 2002, President Macapagal-Arroyo issued Executive Order No. 158 reactivating and reorganizing the NEDA Board Executive Committee.

In signing E.O. No. 158, the President underscored the need to create a clear, institutionalized economic team carved out from the NEDA Board to constitute the President’s core group of economic policy.

The President tasked the following to compose the NEDA Board Executive Committee: Executive Secretary as chairman and the NEDA Director General as vice chairman, with the Secretaries of Finance, Trade and Industry, Budget and Management, and Agriculture as members.

Under E.O. 158, the Secretary of Labor and Employment, the Secretary of Public Works and Highways and the governor of Bangko Sentral ng Pilipinas "may be invited to attend the meetings of the NEDA Excom as may be deemed necessary by the Chairman."

The NEDA Board Excom shall exercise the following powers and functions:

• Monitor and update the President on existing economic conditions in the country;

• Assist the President in formulating and initiating new economic policies, plans and program; and reviewing, refining and changing existing ones;

• Examine carefully and critically, or otherwise vet all proposed economic policy decisions of the President on urgent issues;

• Ensure and enhance the efficient and effective implementation of economic policies, plans and programs to achieve sustainable economic growth;

• Call upon any agency of the government and all presidential appointees to provide such assistance and/or information as may be necessary to address issues relating to matters within its concern;

• Perform all other functions that the President may direct.

E.O. No. 158 stipulates that the NEDA Board Excom is authorized to formulate the organizational structure of its secretariat and technical working group, and to engage the services of consultant, as may be necessary, consistent with existing laws.