Shameless obfuscation

DIE HARD III
Herman Tiu Laurel
7/29/2011



What is P1 billion over nine years of graft to P800 billion in debt service corruption each year, totaling P7.2 trillion the past nine years? The former is just coffee money while the latter is a gargantuan scam by the financial institutions. Officially adopted as policy in past administrations, this national swindle has even worsened under PeNoy after a fresh new round of debts was incurred, beginning with P300 billion in December 2010. And that’s despite the fact that the foreign debt, which the country no longer needs, can even be reduced by paying off substantial portions while renegotiating the rest. But has PeNoy made a squeak, much less, thought about it?

Indeed, this problem has gone on for decades; but the present regime has now been handed the golden opportunity to end it by tapping the OFW remittances accumulated and idled in the Special Deposit Account (SDA), as well as the surplus Gross International Reserves (GIRs) regularly bragged about by the Bangko Sentral ng Pilipinas (BSP). So why does PeNoy keep mum on all this? Could it be ignorance, cowardice, or both?

Consumer woes brought about by inflation are one of the most serious crises ever to hit the Filipino people — from the astronomical rise in the price of National Food Authority (NFA) rice (P11/kilo during Erap’s time to today’s P23/kilo) to the high cost of public utilities (including our highest electricity rates in Asia and our highest cellphone interconnection rates in the Asia-Pacific).

In past annual assessments made by former presidents, inflation has always been a key emphasis, with the lowly galunggong as the standard. Nowadays, even galunggong is way beyond the reach of poor Filipinos and is no longer mentioned. Discussions on commodity prices are relevant only if the people have the jobs and the decent income to purchase such goods and services.

However, one of the centerpiece programs of PeNoy, the CCT (Conditional Cash Transfer) or his political doleout program, where pro-PeNoy rallyists are rewarded, and which doesn’t create jobs — confirms his government’s failure at jobs creation.

One of the commodities that define Filipino living standards today is electricity. PeNoy praised Congress for two laws extending the lifeline rate subsidy and the Joint Congressional Power Commission (JCPC) set-up to oversee electricity privatization.

Upon hearing this, power consumer advocate Butch Junia immediately texted us: “I do not know what to make of P-Noys’ claiming credit for the lifeline rate and extension of the JCPC. Did he endorse the lifeline rate knowing full well that those consuming 101 kWh or more per month are the ones paying that subsidy? That is P25 additional cost for a 150 kWh household. Did he know that the Epira administered by the JCPC increased our power rates to the highest in Asia? If he knew these, what kind of a president is he to lay the subsidy burden on unknowing customers?... If he did not know these fundamental realities… what kind of president is he?”

PeNoy boasted of reducing unemployment from 8 percent as of April 2010 to 7.2 percent. But Ibon Foundation contradicted this, citing the failure of 1.2 million new entrants to be absorbed into the job market. PeNoy, as expected, reacted acerbically, saying: “Kung ayaw n’yong makita, ‘di ba, sorry, ‘di ba, wala akong magagawa do’n.”

To settle the question, I checked on data banks culled from the International Labor Organization (ILO) figures placing RP’s 2010 unemployment rate at 7.2 percent — no different from what PeNoy is claiming today. Only, PeNoy and his speechwriters tried to distort the picture by presenting seasonal against annual trends — which is no different from Gloria Arroyo’s style in claiming better stats.

But as they all obfuscate, they have invariably classified tricycle drivers as among the employed when such is the recourse of those who lose their jobs, same with their tact of considering unpaid family workers as among the employed.

This jobs crisis should be seen against the backdrop of the economic environment — from Cory Aquino down to her son — characterized by liberalization, deregulation and privatization. Trade liberalization undercut Philippine industries that deregulation and privatization made uncompetitive with predatory rate fixing of privatized public utilities (electricity, water, irrigation, tollways, port services, telecoms). Add to this increasing tax burden on both industry and consumers and the humongous annual debt service and you have a recipe for disaster.

As the Philippines became uncompetitive, the middle class shrank and the underground economy expanded, thus narrowing our tax base and causing government capabilities to collapse with escalating graft and corruption. Kilusan para sa Makabansang Ekonomiya (KME) chairman Jimmie Regalario summed this all up in our Destiny Cable TV show entitled, “So-Ano Na?”: PeNoy has nothing on any of these.

A long decade after mainstream broadcast media stopped inviting me to their TV debates, I was invited again last Monday to a 1 p.m. GMA News show. Winnie Monsod sat across me. She gave PeNoy a passing mark based on the Movement for Good Government (MGG)’s rating of 10 indicators — this, despite the fact that the MGG actually rated PeNoy a failure, with a score of only 4.75 out of 10.

Furthermore, Monsod crowed about the anti-corruption drive of the “daang matuwid,” which I said was belied by PeNoy’s appointment of several corrupt personalities — from the DILG and DoTC undersecretaries, to the sweepstakes agency chief who was with the Arroyo and FVR boards where she consented to and undoubtedly partook of all the graft and corruption there. While I was at it, I also cited Joker Arroyo’s alleged use of that agency’s funds for his 2001 campaign which they choose to keep silent about.

Finally, PeNoy’s flagship Public-Private Partnership (PPP) program was not mentioned because it’s still an absolute zero; same with the bluster around the Spratlys and the boasted acquisition of vintage Hamilton cutters, which are laughable. These are why PeNoy’s cheering squad in mainstream papers such as the Inquirer can only praise his “greatness” in oratory (like an Amorsolo in speech) and the oversold “wang-wang” spiel… All in the spirit of shameful and shameless obfuscation.

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