President Gloria Macapagal-Arroyo said today that the peso’s weakness is only temporary, because the country’s economic fundamentals remain favorable.

"The nation’s peace of mind is disturbed by political developments that are telegraphing signals of instability," the President said in a statement.

She said that the peso’s drop to the P55.50 level against the US dollar Monday was brought about by perceived uncertainties arising from a possible constitutional crisis due to the impeachment moves in Congress against Supreme Court Chief Justice Hilario Davide, Jr.

The President appealed for prudence and constructive action among the country’s leaders regarding the Davide impeachment case.

Meanwhile, Presidential Spokesman Ignacio R. Bunye said in a radio interview that a deadlock between the legislature and the judiciary would bring about negative perception in the business community.

"The major cause of the peso’s decline is the perceived impending constitutional crisis, if no solution would be found on the impeachment case against the Chief Justice," Bunye said, adding "I am confident that the peso will go back to its normal level once the impeachment case is resolved".

Finance Secretary Jose Isidro Camacho shared Bunye’s optimism and said that he expects the currency market to stabilize soon.

Secretary Camacho urged investors to wait for the positive resolution to Davide’s impeachment case before making harsh judgments.

"These are political events affecting the economic environment. I hope that in the next 24 hours we would have some positive news to reverse the perception of instability," Camacho said.

President Macapagal-Arroyo said that she is hopeful a principled compromise can be reached in the Davide issue for the sake of national unity.

President Gloria Macapagal-Arroyo today called on all barangay officials throughout the country to clear their localities of drug traffickers and pushers even as she assured the public that in her administration’s intensified anti-drug campaign there will be no sacred cow and all those involved will be prosecuted with the full force of the law.

In her speech at the Barangay Anti-Drug Abuse Committee Congress held this morning at the Araneta Coliseum in Quezon City, the President said that there will be no room for compromises in her anti-drug war.

"Ako napagsabihan ko na ang mga military, pulis, pulitiko: walang arbor-arbor, walang prote-proteksiyon, walang sinuman ang sinasanto ng laban na ito. Ang lahat ng sangkot ay mananagot (I have told the military, the police and the politicians that there will be no protection, no sacred cows in the anti-drug war. All those who will be involved will have to answer)," the President said.

The President said that the government’s intensified anti-drug campaign is not only a fight against illegal drug syndicates but also a reaffirmation of her administration’s commitment to ensure the future of the country’s youth.

The President described the drug menace as a scourge in our society that must be eradicated. "Kaya kailangan supilin ang salot na ito at isalba ang kinabukasan ng sambayanang Pilipino (That’s why this scourge should be stopped to save the future of the citizenry)," the President said.

According to the President, seventy-five percent of all the crimes committed in the country are drug-related. She cited the tragic death of eight-year-old Angel Alqueza who was raped and killed by drug addicts in their locality.

The President said that it was only during her incumbency that the anti-drug campaign has been stepped-up through the adoption of a new law that would penalize drug pushers with stiff penalties.

She said that before only a person caught with 200 grams of shabu could be jailed. Now, a person caught with just 10 grams of shabu can be put to jail without bail, the President said.

The President said that for as long as there are drugs in the streets, citizens in the barangays will not be safe, particularly the youth. "Kaya, dadalhin natin ang laban sa droga sa bawat barangay (So, we will have to bring the fight against drugs to all barangays)," she said.

The Chief Executive cited the importance of the role that the Barangay Anti-Drug Abuse Committees (BADACs) play in the anti-drug campaign, especially in the monitoring of illegal drug operations in the barangay level.

She said that members of the BADACs can provide tips to law enforcement agencies not only on drug users or pushers but also on suspected drug laboratories in their communities.

On top of that, the President said, the BADAC, since it is composed of representatives from various sectors like the Church, the schools and the civil society, could also help in educating the youth on the negative effects of drug use.

In her speech, the President cited the gains made in the government’s stepped-up anti-drug campaign.

Records at the Philippine National Police (PNP) showed that as of Sept. 16, 2003, out of the country’s 41,956 barangays, 5,997 are drug-affected and 2,549 have now been cleared.

In Metro Manila, out of the total 1,693 barangays, 1,061 are drug-affected, and 430 have been declared drug-free.

Interior and Local Government Secretary Jose Lina, who organized the BADAC Congress, said that the process of clearing drug-affected barangays involves a series of activities to be undertaken in phases, by the anti-drug abuse committees at the provincial, city, municipal and barangay levels, the Philippine Drug Enforcement Agency (PDEA), and the PNP.

In an earlier report to the President, the Anti-Illegal Drugs Special Operations Task Force (AID-SOT) said that during the three-month period starting June 16, 2003, it has dismantled four clandestine shabu laboratories of transnational syndicates, three of which were located in Cavite—one each Silang, Tanza and Carmona. The other shabu laboratory was found in Fairview, Quezon City.

The AID-SOT dragnet had so far netted three big-time leaders of transnational drug syndicates, Jackson Dy, Benito Sy and Zhang Shang Ming. The three are now facing criminal charges.

In her State of the Nation Address (SONA) in July this year, the President said that there will be no letup in her administration’s intensified campaign against illegal drugs, vowing to bring the anti-drug war to every household in the country, if necessary.

"This is one fight that I am taking everywhere, even if we have to knock on every door," the President said.

President Gloria Macapagal-Arroyo stressed today that "the health of the nation" is one of the top priorities of her administration.

Speaking at the inauguration this morning of the Center for Health Improvement and Life Development (CHILD) at the Philippine Charity Sweepstakes Office (PCSO) compound in Quezon City, the President pledged to expand the programs for providing the people with universal health insurance and medicines at half the price.

The President noted that during the two-and–a-half years of her watch, the number of poor families covered by health insurance has increased from only 500,000 to more than two million.

Because the average family consists of five members, this means that over 12 million indigents are now benefiting from Philhealth, she said, adding that if the pace continues, within three years, six million poor families shall have health insurance coverage.

The President cited the PCSO as the biggest premium contributor, along with the local government units, to the Philhealth insurance for indigent Filipinos.

If Congress approves proposed bills increasing the taxes on liquor and cigarettes, she said, more indigent families will be covered by the Philhealth insurance.

Under the half-price medicine program, the President said that a total of 42 drugs for high blood pressure, asthma, diabetes and antibiotics can now be purchased from more than 70 government hospitals, botika ng barangay and several National Food Authority (NFA) rolling stores. Cheap herbal medicines are also available.

The cheap drugs program is being accomplished through PCSO funding made available to the Philippine International Trading Corporation (PTIC).

The President directed PCSO Chairman Maria Livia Singson de Leon to appropriate P100 million as an additional funding for PTIC to import cheap medicines.

"We want to provide almost free medicines, or half-price medicines to be able to uplift the lives of our citizens," the President said.

The President noted that the problem of a nation is not the fault of just one president, but is rooted in the economic and political systems.

President Gloria Macapagal-Arroyo today assured government workers that they will receive the remaining 50 percent of their year-end bonus and cash gift this November.

Budget and Management Secretary Emilia T. Boncodin said that the amount of P8.5 billion is available in the 2003 budget for the purpose.

Based on existing guidelines for the payment of the government year-end bonus and cash gift not earlier than November 15 but not later than November 30, state employees will receive their bonus starting November 16.

"We want to make sure that government workers will receive their Christmas bonus and cash gift to give them ample time to prepare for the coming holidays," Boncodin said.

Entitled to the payment of year-end bonus and cash gift are officials and employees of all national government agencies (NGAs), state universities and colleges (SUCs), government-owned and controlled corporations (GOCCs), government financial institutions (GFIs) and local government units, regardless of the nature of their appointment, whether permanent, temporary or emergency in nature, and including contractual employees who perform the functions of a regular employee.

President Gloria Macapagal-Arroyo today lauded non-government organizations (NGOs) and government agencies for building the Center for Health Improvement and Life Development (CHILD) House designed to address the needs of cancer patients, especially indigent children.

"I’m congratulating the CHILD House, the Ricky Reyes Foundation, the Metro Manila Development Authority (MMDA), the Philippine Charity Sweepstakes Office (PCSO) and the different non-government organizations for their efforts to bring the CHILD House into a reality. Thank you for your generosity," the President said in her opening remarks.

The President motored to the PCSO compound along E. Rodriguez Sr. Ave. from the Araneta Center, also in Quezon City, to personally inaugurate the renovated two-storey PCSO CHILD House Project, a temporary home dedicated for children with cancer.

In her message, the President said that the establishment of the CHILD House is very timely and showcases the example of government and private sector unity in the fight against cancer that is victimizing many poor children.

She said three percent of the cancer victims are children, while almost 70 percent comes from the poor sector and 80 percent comes from far-flung provinces.

"Here in CHILD House, it is clean and cheapest temporary shelter of the child cancer victims. Aside from the temporary home, the House project would also provide cheap medicine and therapy to all patients, and of course, for their parents," the President said.

The President led the ribbon cutting and unveiled the marker of the building. She also inspected the facilities of the CHILD hospital, particularly the Munting Paraiso playroom center, and took time to greet some of the child cancer victims.

Presidential Spokesman Ignacio R. Bunye, Press Secretary Milton Alingod, Presidential Daughter Luli Arroyo, honorary chairperson of the CHILD House Project, National Food Authority Administrator Arthur Yap, Quezon City Mayor Feliciano Belmonte, MMDA Chairman Bayani Fernando, PCSO Chair Ma. Livia "Honey Girl" S. De Leon, and Ricky Reyes accompanied the President.

The House project aims to provide temporary home for people with cancer plus one companion; encourage the parents or siblings of people with cancer to join livelihood program, so they could be self supporting while in temporary home.

This, basically, is what President Gloria Macapagal-Arroyo told a group of American legal luminaries when asked what she hopes to accomplish should she be given the chance to serve beyond 2004.

"We can’t go on doing it this way," the President said in reference to the great divisiveness in the country that has stalled several intended reforms. "We have to have fundamental changes in our system and we have to have genuine reconciliation."

The President’s agenda was sought by representatives of the influential American law firm Kissinger McLarty Associates (KMA) and Covington Burling Law Office who called on her this afternoon at the Music Room of Malacanang.

The group, headed by KMA vice chair Richard Fisher, is known to have the capacity to bring in giant American investors that include Mirant and United Parcel Service (UPS) to the country.

Those who accompanied the group were Executive Secretary Alberto Romulo, Finance Secretary Jose Isidro Camacho, Presidential Adviser on International Competitiveness Roberto Romulo, Board of Investments Governor Kim Jacinto Henares and Trade and Industry Director Ramon Kabigting.

The President said she doesn’t mind looking at a federal or parliamentary form of government even if it means making some constitutional changes.

She added she is also looking at making several judicial, fiscal and electric power reforms.

"We have to make several painful decisions if we are to keep our steady growth rate and not be left behind by our Asian neighbors," the President said.

The ceasefire with the MILF and the ensuing peace talks, according to her, is but part of her administration’s reconciliatory efforts to attain lasting peace in Mindanao.

She said she hopes to reach out also to the communist insurgents and work out a lasting solution to the divisiveness that has been stalling the country’s big leap forward.

Fisher said his group, that included managing partner Nelson Cunningham, Covington counsel Dave Marchick, Covington partner Mark Plotkin and senior director Maria Mabilangan-Haley was pretty impressed by the President and her grasp of the issues.

"She’s smart and exudes strong leadership qualities needed to run a country effectively," said Fisher. "A strong hand at the helm is definitely what’s needed to overcome the obstacles that she mentioned."

When the group asked the Chief Executive what they can do for her, the President retorted: "Just bring the investors here."

Earlier, the President also received at the Music Room several officials of Japanese business giant Marubeni Corp. who expressed their appreciation for the good relations between their company and the Philippines.

The visiting officials from the Japanese firm, which has been doing business in the country since 1909, were led by its chairman Tohru Tsuji, President and Chief Operating Officer Nobuo Katsumata, Corporate Vice President Ko Mori and Chief Executive Officer for Utility and Infrastructure Mamoru Sukiyama.

"We’re happy to contribute to the good relations between our two countries," said Tsuji.