The assistance given to the Philippines by the United States Agency for International Development (USAID) is organized in four strategic areas although it has focused on the Muslim separatist movement in Mindanao since fighting started anew early in 2000 and the terrorist attack on the US, particularly New York, on Sept. 11, 2001.

In efforts to bring permanent peace in Mindanao and to reduce the potential for it to become a source of recruits for terrorist organizations, the USAID is the principal partner of the Philippine government in achieving this goal.

Toward these ends, USAID supports the integration of former rebels and their communities into the peacetime economy, improving economic infrastructure in conflict-afflicted areas, accelerating economic and business development of Mindanao, increasing access to micro-finance services, and expanding educational opportunities for disadvantaged groups.

Thus, in 2002, 8,000 former rebels have established themselves as small-scale commercial farmers who now make a living for themselves and their families with USAID assistance. This raised to 21,000 the number of former rebels from 25,000 identified as worthy of assistance.

USAID also helped 23 rural banks to profitably provide services to micro-enterprises, increasing the number of rural banks assisted to 97. Of 131,000 micro-depositors now, 53,000 opened their accounts in 2002.

Unhampered transport of timber grown on private land in Mindanao has become a reality with USAID help in the development of business support organizations. The largest number of small-farmer tree farms are in Mindanao.

The Autonomous Region in Muslim Mindanao (ARMM) Business Council, an umbrella organization for all business organizations in the ARMM, and the first ever Basilan Chamber of Commerce and Industry were also established with USAID support.

Other improvements in Basilan have also come about because of the Balikatan Exercise, the RP-US military exercises held in Mindanao early this year.

The death of Al-Ghozi signals that terrorists will never get far in the Philippines, and that the long arm of the law will eventually get them.

This event should lift much of the anxieties of our people. We have now accounted for all three fugitives from justice who escaped from detention thirteen weeks ago, and neutralized any threats that could been posed by them.

I commend the military and police forces involved, including the 67 tracker teams of PACER that were thrown into the intensive manhunt.

We are determined to end this transnational threat decisively, especially in the wake of positive developments such as the widening participation of our ASEAN neighbors in our collective battle against terrorism, our growing strategic partnership with the United States, and the consensus being built across institutions such as the UN and the OIC for peace and development in Mindanao.

The important thing about the visit of US President George W. Bush is the strengthening of the strategic relationship of the Philippines with the United States and the attendant objective of global peace and development in the region, Malacañang said today.

The visit of President Bush is a good sign that the Philippines and the United States are one in the fight against terrorism and poverty, Presidential Spokesman Ignacio Bunye said in his regular radio interview this morning.

"The important thing is we are able to strengthen our economic partnership, security partnership and our long term friendship and mutuality," Bunye said as in answer to a question on the material benefits that will come with the visit of Bush.

Bunye emphasized that the RP-US relationship is no longer that between colonizer and colonized. "We are at a new level of partnership where we are allies in the world," Bunye said.

The United States remains the country’s number one trading partner and one of the biggest sources of official development assistance and with the declaration that the Philippines is now a major non-NATO ally, the country will probably get first priority in military assistance, Bunye said.

Bunye also said not to expect Bush to endorse the candidacy of President Gloria Macapagal-Arroyo in the May 2004 elections.

"It is not proper for a visitor or a foreign head of state to meddle in our purely internal affairs," Bunye said.

The United States government, which donated $1 million (P55 million) worth of modern hospital equipment to the Veterans Memorial Medical Center in 2002, is now clearing the way for another grant of $1 million to VMMC.

The Philippine Veterans Affairs Office (PVAO) reported to Defense Secretary Eduardo R. Ermita that the second tranche of the equipment aid is ready for delivery early next year to VMMC through the Manila office of the US Department of Veterans Affairs (USDVA).

US assistance to the state-run VMMC was part of the aid commitments secured by President Gloria Macapagal-Arroyo from the U.S. Several veterans groups in the U.S. have called for more benefits to Filipino veterans who had fought along side the American forces during World War II.

Last year’s $1 million grant infused into VMMC at least 58 units of state-of-the-art equipment, including 10 dialysis and 13 ventilator machines, that have boosted the capacity of the hospital in general and in geriatric medicine. With the U.S. grant, VMMC was able to set up a modern Dialysis Center, which U.S. Ambassador to the Philippines Francis Ricciardone inaugurated last April.

For 2003, the $1 million package will include 26 units of diagnostics and radiology equipment.

According to PVAO, U.S. assistance to the hospital, which averaged $2.5 million a year when the Philippines was hosting US military bases, stopped in 1994, but resumed in 2002 following the spirited efforts by the Macapagal-Arroyo administration to restore US assistance.

President Gloria Macapagal-Arroyo today commended the military and police forces involved in the manhunt for escaped terrorist Fathur Rohman Al-Ghozi as she stressed that the death of the Indonesian terrorist should now lift much of the anxieties of the people.

"I have commended the military and police forces involved, including the 67 tracker teams of PACER (Presidential Anti-Crime Emergency Response) that were thrown into the intensive manhunt," the President said in a statement.

The President said that the authorities have now accounted all the three fugitives who escaped detention 13 weeks ago.

She said that the death of Al-Ghozi "signals that terrorists will never get far in the Philippines and the long arm of the law will eventually get them."

Al-Ghozi was killed last night during a joint police-military operation in Poblacion Pigkawayan, North Cotabato. Al- Ghozi’s body was identified through fingerprints that jived with the record kept at the Philippine National Police (PNP) Crime Laboratory.

In a press briefing in General Santos City this morning, PNP Chief Director General Hermogenes E. Ebdane Jr. said that Al-Ghozi’s movements had been monitored since Saturday, October 11, after intelligence reports confirmed that Al-Ghozi was en route to General Santos City from the Maguindanao area.

Omar Opik Lasal was re-captured by the joint PNP-AFP Task Force last October 8 in Dumalinao, Zamboanga del Sur while the third escapee, Abdulmukin Ong Edris was killed in an encounter on August 7, 2003 in Sultan Naga Dimaporo, Lanao del Sur.

The President said, "We are determined to end this transnational threat decisively, especially in the wake of positive developments such as the widening participation of our ASEAN neighbors in our collective battle against terrorism, our growing strategic partnership with the US, and the consensus being built across institutions such as the United Nations (UN) and Organization of Islamic Conference (OIC) for peace and development in Mindanao.

"The day will come," she added, "when terrorists can no longer hide because we shall have drained the pond of poverty in which they swim and recruit adherents to their evil cause."

The escape of Al-Ghozi, Omar Opik Lasal and Abdulmukim Edris last July 14 had heightened concern about possible new round of terrorist activities in the Philippines and the Southeast Asian region.

President Arroyo had ordered PNP Chief Ebdane to personally take charge of the manhunt of the three fugitives.

Meanwhile, Defense Secretary Eduardo Ermita said that both the police and military couldn’t afford to put their guard down.

"Al-Ghozi is only one person. We know that there are other groups who are plotting against the government to embarrass President Macapagal-Arroyo," Secretary Ermita said.

Ermita said that efforts would continue in security and intelligence gathering to prevent any untoward incident during the visit of US President George W. Bush on October 18.

(Editor’s Note: Following is the third in a series of backgrounders on Philippine-United States relations that the Presidential News Desk is issuing on the run-up to the state visit here of US President George W. Bush on October 18)

The state visit of President Gloria Macapagal-Arroyo to the United States in May on the invitation of US President George W. Bush signaled a new era in Philippine-US relations.

Philippine-American ties are no longer characterized by patronage nor transaction-driven based purely on consideration of compensation. This relationship has developed into a vigorous and quality partnership based on shared values and mutual benefits, thanks to the forward looking foreign policy of the President.

Or as US Ambassador to Manila Francis J. Ricciardone said of Bush’s return visit on October 18: "The emphasis will be based on partnership and maturity of the relationship between equals" while acknowledging US willingness to provide the Philippines with additional development assistance.

The Philippines and the US have shared a long and proud history, standing shoulder-to-shoulder in conflicts from World War II, Korea and Vietnam, and lately in the war against terrorism.

Since the closure of the American military facilities in 1991, the relationship between the two countries has moved to a more comprehensive and modern framework based on mutual respect and shared values.

Thus, when the President visited Washington in May, Bush tendered a state dinner in her honor that was only the third since he took over as president of the US. The only other heads of state given such honor by Bush were Mexican President Vicente Fox in 2001 and Polish President Aleksander Kwasnievski in 2002.

It was Bush’s way of saying thank you to the President, the Philippine government and the Filipino people for their "stalwart efforts" in fighting terrorism and as a reliable ally of the US.

And it was a sharp departure from the traditional displays of international friendship that characterized previous US governments.

In Washington, the President and Bush "discussed the full range of global and bilateral issues and reaffirmed the breadth and depth of ties between the United States and the Republic of the Philippines."

The two Presidents agreed that the relationships are deeper and warmer today than at anytime in recent history and noted those ties are rooted in shared history, shared values, and a common interest in global peace and prosperity.

President Bush and President Macapagal-Arroyo paid tribute to a revitalized and maturing bilateral alliance and pledged to further strengthen the partnership in the years ahead.

"The two Presidents agreed on the need for efforts to alleviate poverty and other socio-economic grievances which can create conditions that can be exploited by terrorists. President Macapagal-Arroyo expressed appreciation for the increased US economic and development assistance to southern Philippines, which reinforces the Philippine government’s own efforts to heal divisions in Philippine society," a joint communiqué issued after the visit said.

The communiqué also said that the two Presidents agreed that the US-Philippine security partnership has never been healthier as it emphasized the importance of US support for the continuing efforts to improve the capabilities of the Armed Forces of the Philippines (AFP).

"The two Presidents expressed great pride in the robust economic and trade ties that bind the United States and the Philippines, as evidenced by annual bilateral trade exceeding $18 billion and cumulative direct private investment of $3.5 billion," the communiqué said.

The communiqué said that the two Presidents also reviewed with pride the contributions made by Philippine World War II veterans who gave so much in defense of freedom.

President Bush announced his intention to support legislation extending new benefits for Commonwealth Army veterans and guerillas who lawfully reside in the United States. He also announced continuing efforts to improve medical care for Filipino veterans in the Philippines by providing medical equipment to the Veterans Memorial Medical Center in Quezon City in the 2004 fiscal year.

The Philippines and the United States share a unique relationship that is built on close historical, political, economic, social and cultural ties. Filipinos and Americans are two freedom-loving people who are equally committed to democracy, free enterprise and social openness and progress.

President Gloria Macapagal-Arroyo today said that the refund of Meralco to consumers will greatly help uplift the lives of small and poor electric users, hence lessen the surge of recruits to terrorism from the ranks of the poor.

"The day will come when terrorists can no longer hide because we shall have drained the pond of poverty in which they swim and recruit adherent to their evil cause," the President said, repeating a statement she issued on the death of escaped Indonesian terrorist Al Ghozi.

The President said that the death of Al-Ghozi signals that terrorists will never get far in the Philippines and that the long arm of the law willl eventually get them.

She said the event should lift much of the anxieties of the people. "We have now accounted for all three fugitives from justice who escaped from detention thirteen weeks ago and neutralized any threats that could have been posed by them," the President stated.

The President expressed her gratitude as she witnessed the poor get their refunds to help relieve them of some of their problems. "Some 3.2 million out of four million consumers in Metro Manila area will benefit from this Meralco refund that came from a Supreme Court ruling," the President said.

The President, during a visit this afternoon at the Meralco Novaliches Branch, Quirino Avenue in Novalichhes, Quezon City, observed the processing and release of refunds to the consumers.

She also interacted with some l,200 consumers who were waiting to get their refund.

The President wanted to be sure that the Meralco consumers get their refund quickly and properly.

The President also mingled with the consumers who were buying goodies from the National Food Administration’s (NFA) rolling stores located at the Meralco parking lot.

On Transparency International’s Perception of RP Corruption

Transparency International’s 2003 report does not in any way reflect worsening corruption under President Gloria Macapagal-Arroyo’s administration, according to the organization’s official who prepared its corruption perception indices, or CPI.

An analysis by this office shows that Transparency International’s 2003 CPI for the Philippines even reflects international perceptions of corruption in 1999 and 2000, when media coverage of graft during the previous administration was at its highest.

In a clarification made to this office, Dr. Johann Graf Lambsdorff, the director of TI’s statistical work on the CPI, said that because of their methodology for compiling the indices as well as new sources of information entering every year, "it is impossible to detect any significance" in changes in perceptions of corruption in the Philippines between 2000 and 2003.

"It is not straightforward to make inferences from the CPI on year-to-year changes," Lambsdorff said. "There is no evidence of a downward trend (in perceptions of corruption in the Philippines)," emphasized Lambsdorff, who designed and implemented the TI’s corruption perception indices.

The TI’s corruption indices for all countries are not based on its own survey for a particular year. It is the rolling average of surveys by other organizations reported in three years.

Contrary to the claim made by TI’s local representative* that the data for the 2003 CPI was gathered from July 2002 to July 2003, the Philippine score, according to the TI, was the average of ratings ("mean value") of 12 surveys made by eight different organizations and published from 2001 and 2003.

Note that for 2003 index, among the surveys used, the lowest reported score was 1.6 and the highest, 3.6, which resulted in the CPI of 2.5. (A 3.6 rating puts the Philippines in the middle of the list of 133 countries).

Of these 12 surveys, four were published in 2001 and used data for 200 and 1999, when the perception of corruption in the Philippines was indeed the worst because of the exposes of graft under the previous administration which led to the EDSA II revolt. The average of the Philippines 2003 index was pulled down by data for 2000.

Transparency International itself in its website** emphasized that the changes in a country’s ranking does not mean a worsening perception of corruption, as this can change "simply because new countries enter the index while others drop out."

In the Philippines case, its CPI for 2003 dropped from 2.6 in 2002 to 2.5 in 2003, the nominal deterioration of which Dr. Lambsdorff emphasized is insignificant "because the margin of error for the Philippine statistics is 0.2 to 0.3."

While its ranking dropped 15 notches, this was because 19 countries which were not in the 2002 list, entered the 2003 roster which pushed down the Philippine ranking. Among these were oil-rich countries with very small bureaucracies such as Kuwait, United Arab Emirates and Saudi Arabia.

President Gloria Macapagal-Arroyo today said she would bring to Metro Manila the 67 tracker teams of the Presidential Anti-Crime Emergency Response (PACER) to Metro Manila to spearhead in the hunt for kidnappers, drug lords and squatter syndicates.

The President earlier commended the military and police forces involved in the massive manhunt for Indonesian terrorist Fathur Roham Al-Ghozie, particularly the 67 members of the PACER tracker teams.

She told an audience of more than 3,000 at the Amoranto Stadium in Quezon City that Al-Ghozi was killed in an encounter with the joint police and military operatives in Poblacion Pigkawayan, North Cotabato last night, and that from the stadium she will proceed to Cotabato

"Yung 67 tracker PACER teams na naghanap sa kanya ay ibabalik ko dito sa Metro Manila para sa mga kidnappers, yung mga druglords, yung squatter syndicates na nag-aabuso sa inyo (We will bring the 67 tracker PACER teams to Metro Manila to track down the kidnappers, drug lords, squatter syndicates that have abused you)," the President said.

Before her arrival, 1,000 parcelized land titles, eight individualized titles and 25 owners’ duplicate certificates of title of direct sales were awarded to some urban poor beneficiaries as part of the socialized housing program of the Quezon City government.

The awarding ceremonies were also witnessed by Chairman Michael Defensor of the Housing and Urban Development Coordinating Council (HUDCC), QC Vice Mayor Herbert Bautista, HUDCC President Chito Salud, Congresswoman Nanette Daza and Ramon Asper, president of the Urban Poor Affairs Office of Quezon City.

She also urged the Quezon City folk to rally behind her in battling red tape to further enhance improvement of governance in her administration.

Preparations for the October 18 visit of US President George W. Bush are almost complete, Presidential Spokesman Ignacio Bunye said today.

"We are now on the homestretch. We are on track in so far as the preparations are concerned," Bunye said in his press briefing this afternoon.

Representatives from the U.S. State Department and the Secret Service have been coordinating with their counterparts here in Manila for over a month now.

"This gave them the opportunity to reconcile both their programs and seek a common ground," Bunye added.

He said that the visit here of President Bush, although brief, will affirm the commitment of both countries to their security, economic, trade and socio-cultural ties.

The program for the visit includes a welcome ceremony at the Palace grounds, the signing of the Palace Guest Book, a one-on-one between the two presidents, and expanded bilateral talks.

President Bush will also address the joint session of Congress at the Batasan Complex in Quezon City.

The program for the US First Lady Laura Bush includes a story-telling session with school children at the Malacanang Museum.

There will be "barrio fiesta" type cocktails to give the visitors a feel of the traditional Filipino warmth and hospitality, Bunye said. There will be bamboo nipa huts on the Palace grounds and "puto bumbong" and "bibingka" will be served.

The mission to repatriate the 23 Filipino seamen incarcerated for almost three years in United Arab Emirates (UAE) was finally accomplished with the return today of the last seafarer.

Nicasio Dagsa, 48, the last of the 23 Filipino seamen imprisoned at the Al Mamoorah Prison in Ras Al Khaimah, UAE, arrived at 12:45 pm today at the Ninoy Aquino International Airport (NAIA) from a more than nine-hour Gulf Air flight from Dubai.

The 23 seamen's repatriation mission was accomplished through the efforts of First Gentleman Jose Miguel T. Arroyo and Special Envoy to the Gulf Cooperation Council Amable Aguiluz V on instructions of President Gloria Macapagal-Arroyo.

Mr. Arroyo and Ambassador Aguiluz, OWWA administrator Virgilio Angelo and other government officials, fetched Dagsa at Gate 15 of NAIA.

In tears, Dagsa could hardly believe that he was home.

He said he never doubted the words of the First Gentleman, as well as that of Aguiluz, that they would do everything to bring him back as soon as possible.

Dagsa was also emotional when he was reunited with his 65-year-old mother, Fortunata, children Analiza and Albert. Also at the airport were Dagsa's older brother, sister and other members of his family.

Dagsa's mother Fortunata also thanked the First Gentleman, Aguiluz and other people who helped his son.

Dagsa's airfare was courtesy of Ambassador Aguiluz.

Like the other seamen, Dagsa was provided with P10,000 capital seed money to start small income generating business, medical assistance and other benefits.

GENERAL SANTOS CITY—President Gloria Macapagal-Arroyo flew to this city this afternoon to personally congratulate the combined military and police forces involved in the manhunt for convicted terrorist Fathur Rohman Al-Ghozi that eventually led to his death.

In a statement she delivered upon her arrival at the General Santos City International Airport, the President particularly lauded the 67 tracker teams of the Presidential Anti-Crime Emergency Response (PACER), which spearheaded the massive manhunt for Al-Ghozi and two other Abu Sayaff terrorists who escaped from Camp Crame in Quezon City last July 14.

The President was met at the airport by Presidential Assistant for Mindanao Jesus Dureza and General Santos Mayor Pedro Acharon, Jr.

From the airport, the President motored directly to the Collado Funeral Homes where Al-Ghozi’s body was brought to from Pigkawayan, North Cotabato where he was slain Monday night.

The President spent about three minutes at the morgue of the Collado Funeral Homes.

She was accompanied in her visit to the funeral parlor by Dureza, Presidential Adviser on Regional Development Paul Dominguez, Philippine National Police chief Director General Hermogenes Ebdane and Brig. Gen. Alexander Yano, commander of the 601^st Infantry Brigade of the Philippine Army.

Ebdane, who arrived in this city shortly before noon, confirmed that Al-Ghozi was indeed slain in Pigkawayan. He said that the fingerprints of the dead person at the morgue jibed with that of Al-Ghozi’s kept at the PNP’s crime laboratory.

Re Alleged Payoff of P38 Million

The allegations of Senator Lacson re P38 million being given by Mr. Jimenez to the President is not only hearsay but a brazen lie. The President categorically denies this. Mr. Jimenez had all the opportunity while he was here and facing deportation proceedings. Why did he not say so at that time?

Congressman Willie Villarama will be issuing separate statement belying allegation.

Re GSIS and PCSO Transactions

The GSIS and the PCSO will come up separately with their explanations of transactions questioned in the speech. The records are public records and can be made available. PCSO advised us that request mentioned in the speech was never released.

Re Recantation of Udong

Senator Lacson is trying to make a case impugning the retraction of Udong Mahusay. According to him, the first affidavit should be given more credence. The recantation is of no value.

Looks like, he has forgotten the testimony of Kit Mateo. In the first testimony, Kit Mateo charged Lacson with having masterminded the killing of several persons, including a police officer, the husband of his present wife, and a child who was pushed out of a helicopter.

Re Tirade Against the Supreme Court

The opening statement against the Supreme Court shows Mr. Lacson’s utter lack of respect for the rule of law and the institution that has been tasked to be the final arbiter on questions of law. It does not speak well of a senator of the republic.

Re Ranking of the Philippines in the Transparency International Survey

The rankings are based on sliding three-year period. What is shown for 2003 actually reflects conditions in 2000 which coincided with impeachment trial of President Erap.

Other Charges

Allegations of extortion by some people supposedly closed to the President are unsubstantiated. The others area rehash of undocumented charges in the Chapters 1 and 2 speeches.