BORONGAN, Eastern Samar – President Gloria Macapagal-Arroyo Thursday night said the fight against insurgency is not only a battle between government troopers and the Communist rebels but also a battle against the root causes of poverty.

"I want to say that the intensified operation versus the New People’s Army (NPA) will continue as we mop up dissident-affected barangays through political and socio-economic measures," the President said.

"The release of P38 billion for the Land Reform Program as a result of the recent Supreme Court decision gives us wider strategic latitude to resolve the root causes of poverty and thereby defeat the insurgency," she said during a private dinner with local officials at the provincial capitol here .

While the military has intensified its operations against the dissident rebels, the President said the government is still not closing its doors to those who would want to return to the folds of the law.

"We will move the stones in all fronts while keeping the doors to peace open to those who renounce the option of arms in the pursuit of their political ends," she said

She added she has also ordered the military to beef up its forces in Eastern Samar after some 100 rebels attacked the Quinapondan police station last June 22.

Four days later, some 200 rebels overran the Army patrol base of the 52nd Infantry Battalion in Oras town, resulting in the death of five soldiers, 10 members of the Civilian Armed Force Geographical Unit (CAFGU), and an innocent civilian.

After the dinner, the President promoted the three outnumbered policemen on duty who gallantly put up a stand and repulsed the rebels who attacked Quinapondan.

"At dahil sa ginawa nila, sila ay binibigyan natin ng special meritorious promotion to the next higher rank (Because of their gallant stand, we are giving them special meritorious promotion to the next higher rank)," she said.

BORONGAN, Eastern Samar – President Gloria Macapagal-Arroyo last night announced the allocation of a P72-million fund for the three-year implementation of the Kapit-Bisig Laban sa Kahirapan-Comprehensive and Integrated Delivery of Social Services (KALAHI-CIDDS) in 83 barangays of the five depressed towns in this province.

The President made the announcement Thursday evening during a private dinner with local officials at the provincial capitol here.

"Ito ay bahagi duon sa nakuha kong biyaya para sa ating bansa nung ako’y pumunta sa Amerika nuong November 2001 (The amount is part of what the country obtained when I visited the United States in November 2001)," the President said.

The P72 million is allocated as follows: P24 million a year for the KALAHI-CIDSS projects in 28 impoverished barangays in the town of Can-Avid; P8.4 million for 17 barangays in San Policarpo; P5.1 million for 13 barangays in Balangiga; P3.9 million for 13 barangays in Jipapad; and P3.6 million for 12 barangays in Maslog.

Under the KALAHI-CIDSS project, each depressed barangay is allocated P300,000 per year.

All of the beneficiary towns are classified as sixth-class municipalities, except for Can-Avid which is a fifth-class municipality.

The bulk of the fund comes from the World Bank, with counterpart funding from the national and local governments.

The President said that to be included in the KALAHI-CIDSS project, the World Bank requires a town to be among the most impoverished, with a local government willing to provide a counterpart contribution, and with an existing non-government organization (NGO) capable of implementing and monitoring social projects.

Among its scope are economic support, physical infrastructure, basic service infrastructure, and capability-building activities.

Economic support includes the construction, communal irrigation, production and post-harvest facilities; physical infrastructure includes road rehabilitation and road re-graveling; basic service infrastructure includes water systems, barangay health stations, and basic agriculture facilities; and capacity building includes training for enterprise development and farming technologies.

The President arrived 5:30 p.m. Thursday at the Eastern Samar State College in Can-Avid, some 65 kilometers north of this capital town, after a seven-hour trip from Tacloban City. The usual three-and-a-half hour trip took them seven hours due to the stormy weather prevailing at the time.

The President and her group were welcomed by the students and local officials led by Governor Cleotilde Salazar, Eastern Samar Lone District Rep. Marcelino Libanan, and Can-Avid Mayor Jil Norman Germino.

She was accompanied by Presidential Assistant Gabriel Claudio, CORD for Region 8; Social Welfare Secretary Corazon Soliman, Secretary Marita Jimenez, National Anti-Poverty Commission (NAPC) Lead Convenor Teresita Quintos-Deles, and Press Secretary Milton Alingod.

The President witnessed the signing of a memorandum of agreement for the implementation of the KALAHI-CIDSS project between the mayors of the five identified towns, the Department of Social Welfare and Development (DSWD), NAPC, and the representatives of non-government organizations (NGOs).

The KALAHI-CIDSS project, jointly implemented by the DSWD and the NAPC, is the government’s major anti-poverty program for impoverished barangays in the country.

The President also launched the Strong Republic School (SRS) distance learning system at the state college by observing how classes are conducted with the use of a television set.

The local government, through Congressman Libanan, donated to the Can-Avid SRS project a television set, video equipment, modules and digital video discs (DVDs).

The SRS program seeks to improve the literacy rate in identified disadvantaged communities through the use of television, video compact discs (VCDs), and other modern means of communication.

President Gloria Macapagal-Arroyo’s firm resolve to allot funds and make the 1998 Agriculture and Fisheries Modernization Act (AFMA) work in the last two years has provided millions of the country’s farmers and fishermen the fighting chance to improve the quality of their lives.

Agriculture Secretary Luis Lorenzo, in a media briefing, today said the President’s commitment to AFMA has resulted in the release of agricultural credit, a boost in agri-fishery output and new jobs for 1.78 million people.

Lorenzo said that in terms of AFMA-related credit, the DA lent P39.63 billion to more than a million farmers, fisher folk, food retailers and small agricultural businessmen.

Loans worth P858.6 million for 81,884 farmers and fisher folk were also guaranteed under AFMA.

The loans were provided through the facilities of the Land Bank and the Quedan Corporation.

From 2001 to 2002, the Department of Agriculture (DA) has used P20.1 billion out of the P20.43-billion AFMA budget, with P12.13 billion set aside for AFMA to sustain agricultural growth this year, Lorenzo said.

To the benefit of more than 340,000 farmers, the DA has opened 50,746 hectares (has.) of farmlands to irrigation and rehabilitated 441,116 has. with existing water systems as of June 30, 2003.

Complementing this was the completion of 1,045 farm-to-market roads and 15 municipal and regional fish ports.

Malacanang today said the pledge of the separatist Moro Islamic Liberation Front (MILF) to help in the recapture of convicted Indonesian terrorist Fathur Rohman al-Ghozi and two others would help speed up the peace process in Mindanao.

In a formal statement, President Gloria Macapagal-Arroyo today said the government is holding the MILF to its word that it will help in the interdiction of terrorists and that she is looking forward to al-Ghozi as a primary test case.

"The peace process has a large stake on this issue," the President said.

The President said that step by step, the government is overcoming the obstacles to the resumption of talks with the MILF under conditions of stability in the ground.

Later in a press briefing in Malacanang, Deputy Presidential Spokesman Ricardo Saludo said the government appreciates the statement of the MILF that it would help in apprehending al-Ghozi and the two other terrorists.

"We will hold them to their word that they shall assist in ensuring or helping capture these individuals, and more importantly to prevent them or any terrorist around from undertaking any action that will hurt civilians and the country at large," Saludo said.

President Gloria Macapagal-Arroyo today announced a breakthrough in the peace negotiations between the government panel and the Moro Islamic Liberation Front (MILF), saying that they have agreed "on a mutual cessation of hostilities" effective Saturday, July 19.

As this developed, the President ordered the Armed Forces of the Philippines to downgrade its action "from punitive operations to active defense" against the MILF.

In a statement, she also reported that the court has suspended the warrants of arrest against members and staff of the MILF panel.

Further, the Department of the Interior and Local Government "shall lift the corresponding rewards for the arrest or capture" of the MILF peace panelists, she said.

Affected MILF panelists included MILF Chairman Hashim Salamat, MILF Vice Chairman for Military Affairs Al Haj Ibrahim Murad, Aleem Aziz Mimbantas, MILF Vice Chairman for Political Affairs Ghadzali Jaafar, MILF Spokesman Eid Kabalu Nortel, Datucan Abas Mohaqher Iqbal, Lanang Ali, Omar Pasigan, Commander Nurudin Ibrahim and Toks Ibrahim.

The MILF panelists would also be granted safe conduct passes and free passage within the Philippines, as provided under the GRP-MILF Agreement for Safety and Security Guarantees, for 90 days, according to the Office of the Presidential Adviser on the Peace Process.

The President took time to express gratitude to Malaysian Prime Minister Mohammad Mahathir "for his sincere and abiding support for our (peace) efforts."

The President’s statement follows:

President Gloria Macapagal-Arroyo today directed Philippine National Police chief Director-General Hermogenes Ebdane, Jr. to lead a task force that would go after escaped terrorist Fathur Rohman al-Ghozi "until the terrorist leader is accounted for."

"We are not giving any false assurances to our people … but we assure that the government will leave no stone unturned in the manhunt and in the investigation of the circumstances that led to the escape," the President said.

Guest speaker at the Mindanao Island Conference at the Century Park Sheraton, the President also ordered authorities to scrutinize every piece of information and to follow the leads both to al-Ghozi and his cohorts and to possible collusion from within the police organization.

She said the capture of al-Ghozi is part of the country’s commitment to the fight against global terrorism.

"We are equally committed to bring him back to justice and to work with other nations to stop terrorism in whatever form and wherever it may be," she added.

She called on the Moro Islamic Liberation Front (MILF) to hold on to its word that it would help in the interdiction of terrorists "and we are looking forward to Al Ghozi as a primary test case."

She announced that the government and the MILF peace panels have agreed to a cessation of hostilities starting tomorrow, a breakthrough in the peace process.

The President stressed that the framework to the government’s peace initiatives "should be based on constitutionality," applying to dealings with rebels, insurgents and secessionists and those in the uniformed service.

She said she supported any legitimate grievances of the young officers of the Armed Forces of the Philippines (AFP) and "I urge them to resolve this responsively through the chain of command."

She ordered AFP Chief of Staff Gen. Narciso Abaya "to institutionalize a grievance mechanism for these matters for which I want to be informed."

She pointed out that the culture of disciplined transparency in the AFP should be strengthened to isolate the military from politics, avoid factionalism and promote professionalism.

The President called on all Filipinos to give peace a chance, "even as we secure our absolute sovereignty and the enforcement of the law for all areas and at all times."

The President expressed confidence the government would "effectively isolate and marginalize the dwindling terrorist cells in Mindanao and across our seas in the region."