DIE HARD III
Herman Tiu Laurel
07/30/2010
PeNoy’s State of the Nation Address (Sona) cued the mainstream, oligarchy-controlled media on the propaganda line that the National Power Corp. (Napocor)’s rate hike petition is due to the artificially low rates it charged upon instruction of Malacañang under Gloria Arroyo. By highlighting this, PeNoy created the impression that the massive debt incurred by Napocor had been due to incompetence and corruption. PeNoy’s Energy Secretary Jose Almendras, former executive of the energy conglomerate Aboitiz Group, even followed this up on radio every day.
What PeNoy omitted is the fact that Napocor’s dire situation today is a result of the distorted privatization program, which has saddled it with debts (accrued over the decades from its service expansion across the country) while giving away its profit-generating assets for a song to private power producers, as well as, transmission and distribution companies. In effect, Napocor was robbed of revenues that were supposed to service its debts.
Most of these independent power producers or IPPs started business by taking advantage of Napocor’s power generating assets that were privatized by government to them. The sale of these assets, in turn, assigned to the Power Sector Assets and Liabilities Management (Psalm) Corp., was supposed to pay off Napocor’s debts; but a balance of at least P475 billion remains.
Government absorbs 35 percent (which we pay for as taxes) and we, the consumers, absorb 65 percent as “stranded contract costs” and “stranded debts,” which we will all pay under the so-called “universal charge.”
On the July 29 morning radio program of Noli de Castro with Almendras as guest, the Napocor tale was again thrashed about with the two lambasting the state-owned power corporation without explaining the history of its debts. Why, De Castro, in his infinite ignorance, even exclaimed, “Basta gobyerno ang may hawak lugi” when the truth is, his ABS-CBN bosses and their ilk are said to have gotten the biggest slice of the Napocor pie.
PeNoy, Almendras, De Castro will obviously not report the most enlightening Philippine energy news item of the past week: “Meralco income up 82 percent on 14 percent hike in volume sold,” as headlined by a business paper. In the first semester alone, Meralco profited by a whopping P5.8 billion from P3.18 billion in the same period last year. Such reports of gargantuan earnings hikes abound; yet little notice is taken.
Alas, the shenanigans of privatization know no bounds. In 2008, Meralco admitted that it charged consumers P13 billion in power that was never delivered because they have the “take-or-pay” purchased power agreement provisions courtesy of the power privatization law, Epira (Electric Power Reform Act), passed by the Edsa II Congress. And in 2009, Meralco reported a 119-percent increase in its net profit. Meanwhile, Aboitiz Power, Almendras’ mother company, reported its profit rising 143 percent in 2008, which it attributed to acquired government power assets.
PeNoy, Secretary Almendras and the likes of Noli de Castro, ABS-CBN, GMA7, and the mainstream newspapers are in cahoots with the power oligarchs in hiding these facts from the people.
The other fairy tale from the Sona is the much ballyhooed leasing out of the 30-hectare Naval HQ property. Considering that this is near the prime properties of Metro Manila, i.e. Forbes Park and Fort Bonifacio, the offer PeNoy was boasting of amounts to a “steal” as relayed to us by real estate experts. This is not only a fairy tale; we can smell a scam here and it would not surprise us if PeNoy’s campaign contributors (who are also big-time real estate moguls) put him up to it.
The expressway to the North that PeNoy said a foreign investor has offered to build, which would certainly entail the usual “sovereign guarantee,” will lead to exorbitant toll rates again.
It’s as if PeNoy is deaf to the pains and cries of commuters and traders using the present BOT expressways and skyways that are charging sky high toll fees that make the cost of things, such as tourism, vegetables, meats, poultry, and everything else that needs to traverse the expressways higher.
Hearing Secretary Sonny Coloma say that “Anyway, they (the pained commuters) can take the old highway” shows us how insensitive PeNoy’s people are and how ignorant they are of the economic impact their decisions make. PeNoy’s foreign-funded highway will be another highway to ruin.
Still, the same insensitivity plagues them on the MRT fare hike issue and the “cash transfer” plan of Dinky Soliman which will end up increasing hunger again, as inflation eats up the value of the “cash” for less rice as time goes by.
The final lie we spotted is PeNoy and Secretary Jesse Robredo’s spiel about the eradication of jueteng because the reports keep streaming in that not only is jueteng alive and well even in the province of Robredo but a new, more powerful gambling operation has spread all over the country called the “Meridien.” Operating alongside the “legalized” Small Town Lottery (STL), it definitely has the underside that really rakes in the money. The PNP big bosses are certainly not going to stop the P30-billion illegal gambling operations because, our informants aver, the top brass of the police allegedly split the P1-billion bounty per annum.
People should note how Robredo has softened his statements on these illegal gambling operations, as in his own home province, the political kingpins who also run jueteng have long overshadowed him.
In all, nothing has changed in this country: The looting by the oligarchs, criminal gangs, and corrupt bureaucrats continue. It’s a fairy tale that has no happy ending unless real revolutionary change intervenes.
(Tune in to Sulo ng Pilipino, Monday, Wednesday, and Friday, 6 p.m. to 7 p.m. on 1098AM; watch Politics Today, Tuesday, 8 p.m. to 9 p.m., with replay at 11 p.m. on Destiny Cable Channel 21, with the topic, “Stop Agus and Pulangui Privatization” and other power issues, with Mr. Louie Corral and PALAG; visit our new blog, http://newkatipunero.blogspot.com)
Friday, July 30, 2010
Monday, July 26, 2010
Today's commentary
Richard James Mendoza
July 26, 2010 (around 1200 hrs)
Pangilinan backs out. Senator Francis Pangilinan has backed out of the race for Senate President after failing to gather the needed thirteen (13) votes in order to be elected. At the same time, Senator Juan Ponce Enrile is expected to be the Senate President, with Senator Jinggoy Estrada retaining the position of Senate President pro tempore. I guess that the number thirteen (13) is not his lucky number. Anyway, it's good to hear that Mr. Noted backed off. That way, we can at least hope for an independent Senate.
No freedom from Trillanes. Judge Oscar Pimentel of the Makati RTC has denied the petition of Senator Antonio Trillanes IV to attend the start of the 15th Congress. Although such was expected, I sense a sickening double standard. Why is it that while Trillanes is languishing in jail, real criminals like Chavit Singson, Nani Perez and the like roam the land as free men? And about the SC ruling of Trillanes, it's simply absurd. That's it.
The Arroyo-Singson HK charade. Congressman Ronald Singson, son of Ilocos Sur Governor Luis "Chavit" Singson, was arrested by authorities in Hong Kong for possession of cocaine and diapezam, a sedative. On an another note, Congresswoman Gloria Macapagal-Arroyo along with his husband Mike Arroyo are going to Hong Kong for a supposed medical check-up of the latter. One cannot help but think the possibility of either of the two exerting their influences to free Chavit's son. After all, these two families conspired to remove a duly-elected leader. In any case, it is slowly coming to them. In other words, nakakarma na sila.
Water Crisis (?) Malacanang conceded a few days ago about the current water crisis that is being experienced by Metro Manila residents. However, are we really victims of a genuine water crisis or was this all part of a master plan so that the companies can have an excuse to raise water rates?
(Tong) Toll on the rise. It seems that there's no stopping the toll hike now. It was reported that the hike will take place on August 16. The toll fees are expected to raise by a whopping 250%. Sonny Coloma's idiotic remark of "Masasanay din sila" ("They'll get used to it") summarizes one of the objectives of these callous corpo-rats.
Dignifying EDSA Tres. Despite what the mainstream media says about EDSA Tres as "not a real people power", I believe otherwise. In my opinion, it embodied the essence of Article III, Section 4 of the 1987 Constitution. In doing my part to rectify history, I am going to write an analysis of EDSA Dos and EDSA Tres, with emphasis on the latter. Let me tell you something.... The events surrounding EDSA Dos were anything but constitutional. It was in fact the start of the rape of the Constitution as well as the blatant disregard of rule of law. It was also the start of the attack of our much-valued democracy. If anyone remembers their experiences or memories of EDSA Dos and EDSA Tres, do not hesitate to contact me.
July 26, 2010 (around 1200 hrs)
Pangilinan backs out. Senator Francis Pangilinan has backed out of the race for Senate President after failing to gather the needed thirteen (13) votes in order to be elected. At the same time, Senator Juan Ponce Enrile is expected to be the Senate President, with Senator Jinggoy Estrada retaining the position of Senate President pro tempore. I guess that the number thirteen (13) is not his lucky number. Anyway, it's good to hear that Mr. Noted backed off. That way, we can at least hope for an independent Senate.
No freedom from Trillanes. Judge Oscar Pimentel of the Makati RTC has denied the petition of Senator Antonio Trillanes IV to attend the start of the 15th Congress. Although such was expected, I sense a sickening double standard. Why is it that while Trillanes is languishing in jail, real criminals like Chavit Singson, Nani Perez and the like roam the land as free men? And about the SC ruling of Trillanes, it's simply absurd. That's it.
The Arroyo-Singson HK charade. Congressman Ronald Singson, son of Ilocos Sur Governor Luis "Chavit" Singson, was arrested by authorities in Hong Kong for possession of cocaine and diapezam, a sedative. On an another note, Congresswoman Gloria Macapagal-Arroyo along with his husband Mike Arroyo are going to Hong Kong for a supposed medical check-up of the latter. One cannot help but think the possibility of either of the two exerting their influences to free Chavit's son. After all, these two families conspired to remove a duly-elected leader. In any case, it is slowly coming to them. In other words, nakakarma na sila.
Water Crisis (?) Malacanang conceded a few days ago about the current water crisis that is being experienced by Metro Manila residents. However, are we really victims of a genuine water crisis or was this all part of a master plan so that the companies can have an excuse to raise water rates?
(Tong) Toll on the rise. It seems that there's no stopping the toll hike now. It was reported that the hike will take place on August 16. The toll fees are expected to raise by a whopping 250%. Sonny Coloma's idiotic remark of "Masasanay din sila" ("They'll get used to it") summarizes one of the objectives of these callous corpo-rats.
Dignifying EDSA Tres. Despite what the mainstream media says about EDSA Tres as "not a real people power", I believe otherwise. In my opinion, it embodied the essence of Article III, Section 4 of the 1987 Constitution. In doing my part to rectify history, I am going to write an analysis of EDSA Dos and EDSA Tres, with emphasis on the latter. Let me tell you something.... The events surrounding EDSA Dos were anything but constitutional. It was in fact the start of the rape of the Constitution as well as the blatant disregard of rule of law. It was also the start of the attack of our much-valued democracy. If anyone remembers their experiences or memories of EDSA Dos and EDSA Tres, do not hesitate to contact me.
Sona 1986-2010
DIE HARD III
Herman Tiu Laurel
07/26/10
Families experiencing “involuntary” hunger, i.e., having nothing to eat at least once in three months, now make up over 21 percent of the population. Severe hunger rose to 4.2 percent, representing 780,000 families, from the previous 2.8 percent (or 530,000 families). Comparing this to the hunger average since 1998 of 13.6 percent, this dire situation precipitously aggravated in the past decade coincides with the inception of Edsa II and its acceleration of the economic privatization process, alongside the reinforcement of the fascist corporatist-bureaucratic governance of the country. The Edsa II political-economy transferred at least P3 trillion from the pockets of consumers to the top corporations through payments for power, water, telecoms, toll ways, and other privatized utilities, while the remainder went to increased taxes on consumer goods and payment of the national “debt.” This is the first point about the present state of the nation.
This “debt” and hunger are undoubtedly due to the net transfer of trillions from consumer pockets to corporate and bankers’ coffers. The 10 years of Gloria Arroyo incurred more debt than her three predecessors combined, expanding it to over P4 trillion. This was in keeping with the record of the “power grab” government of Corazon Aquino, which incurred over P400 billion ($16 billion) in domestic debt in seven years that rivaled all previous governments since Carlos Garcia, Dadong Macapagal, and 21 years of Marcos, which totaled $27 billion, as well as $3 billion in private sector debt.
PeNoy Aquino and his Budget Chief Butch Abad had initially promised to reverse this tradition by telling the nation that they can cut the Arroyo deficit of 36 percent of GDP down; but upon assumption into office, they increased the deficit ceiling to 39 percent of GDP, to be filled by borrowings on top of the P4.389 trillion ($83.809 billion) today.
More debt will mean even more increased hunger in the future. So is there no way out of this debt trap? Of course there is, but it is a course of action that isn’t anywhere in the mind — much less imagination — of the PeNoy administration. Even the basic minimum that we and other parties, such as the Freedom from Debt Coalition, have been clamoring for is not even being noted. That minimum: (1) a review and audit of the debt as it stands today, with the view of segregating those questionable debts for renegotiation; and (2) a review of the automatic appropriations law. The maximum, on the other hand: a debt moratorium, or even a debt default, would free up close to a trillion pesos for reconstruction and recovery. For many countries — from the US during FDR’s time to China in 1949 and Argentina in 2001 — a debt default has produced recovery and growth after a brief period of austerity.
Taxes are another indicator: Instead of cutting taxes to restore purchasing power to consumers and revive industry and agriculture, the PeNoy government is on a silent rampage to increase them. PeNoy may be keeping mum but his Cabinet gofers are the ones making noise. The VAT on toll ways IS a new tax, as any heretofore non-existent tax being imposed is always such, including a tax on any P25 transaction that will cover banana-Q and sampaguita vendors; and no legal gibberish by World Bank hatchet girl Kim Henares can change that. While these new taxes are being pushed (or floated) by PeNoy’s people, they are on a contradictory course in proposing the lowering of tariffs and royalties on oil products and Malampaya gas, which will cut revenues but not touch the profits of oil companies. Such muddle-headedness by the PeNoy Cabinet and other Liberal Party politicians is another malady that characterizes the state of the nation today.
Indeed, power, water, telecoms, and toll ways are the other indicators of the state of the nation: The higher the rates of services, the greater the negative impact on the national economy. Therefore, the rise in poverty and hunger correlates with the years of steeply climbing rates due to privatization. The PeNoy government, on the eve of the State of the Nation Address (Sona) to be delivered by its president, has given no indication of its policies on any of these vital utilities. Instead, it has dwelt on a “shock and awe” of more corruption exposés about the Arroyo regime and “truth telling.” What we should be getting but won’t expect to hear is a review of the Epira and the Performance Based Rating Mechanism (PBRM) for power pricing that is a built-in windfall for power companies and a burden to consumers, as well as, the Wesm spot market, which has been riddled with manipulations of power rates since its inception.
As for the AFP and PNP, an early indication of the total lack of management and direction is the recent “water crisis” incident where newspapers reported thousands of troops called into Metro Manila in anticipation of “water riots,” which call Malacañang a day later denied — a confusion that perhaps mirrors PeNoy’s appointment of his booze-loving nanny as Defense chief. While in the administration of democratic principles and justice that this Republic is supposed to be founded on, nothing typifies the state of hypocrisy and rot better than the way the legislature is treating one of its own and how the judiciary is handling the case of idealistic Sen. Antonio Trillanes IV’s continued detention; this, while a whole gamut — from Nani Perez, Chavit Singson, Nur Misuari, to Gloria and Miriam — runs free.
It’s been an era of economic, political, social, and moral collapse ever since the Yellow power grab of 1986 until this last installation of the Yellow emperor by the global and local oligarchy. Only a nationalist-populist revolution can turn the dire state of the nation around. The only inspiration left for those aspiring for genuine change is the continuing struggle of Senator Trillanes. Join the November 29 Movement (N29M of the Manila Peninsula siege) in its press conference today, 11 a.m., at the Treehouse in Matalino Street, Quezon City.
(Tune in to Sulo ng Pilipino, Monday, Wednesday, and Friday, 6 p.m. to 7 p.m. on 1098AM; watch Politics Today, Tuesday, 8 p.m. to 9 p.m., replay at 11 p.m., on Destiny Cable Channel 21, about “Miscarriage of Justice: The Trillanes Case” with lawyer Rey Robles and lawyer RG Guevarra of N29M; our new blog, http://newkatipunero.blogspot.com)
Herman Tiu Laurel
07/26/10
Families experiencing “involuntary” hunger, i.e., having nothing to eat at least once in three months, now make up over 21 percent of the population. Severe hunger rose to 4.2 percent, representing 780,000 families, from the previous 2.8 percent (or 530,000 families). Comparing this to the hunger average since 1998 of 13.6 percent, this dire situation precipitously aggravated in the past decade coincides with the inception of Edsa II and its acceleration of the economic privatization process, alongside the reinforcement of the fascist corporatist-bureaucratic governance of the country. The Edsa II political-economy transferred at least P3 trillion from the pockets of consumers to the top corporations through payments for power, water, telecoms, toll ways, and other privatized utilities, while the remainder went to increased taxes on consumer goods and payment of the national “debt.” This is the first point about the present state of the nation.
This “debt” and hunger are undoubtedly due to the net transfer of trillions from consumer pockets to corporate and bankers’ coffers. The 10 years of Gloria Arroyo incurred more debt than her three predecessors combined, expanding it to over P4 trillion. This was in keeping with the record of the “power grab” government of Corazon Aquino, which incurred over P400 billion ($16 billion) in domestic debt in seven years that rivaled all previous governments since Carlos Garcia, Dadong Macapagal, and 21 years of Marcos, which totaled $27 billion, as well as $3 billion in private sector debt.
PeNoy Aquino and his Budget Chief Butch Abad had initially promised to reverse this tradition by telling the nation that they can cut the Arroyo deficit of 36 percent of GDP down; but upon assumption into office, they increased the deficit ceiling to 39 percent of GDP, to be filled by borrowings on top of the P4.389 trillion ($83.809 billion) today.
More debt will mean even more increased hunger in the future. So is there no way out of this debt trap? Of course there is, but it is a course of action that isn’t anywhere in the mind — much less imagination — of the PeNoy administration. Even the basic minimum that we and other parties, such as the Freedom from Debt Coalition, have been clamoring for is not even being noted. That minimum: (1) a review and audit of the debt as it stands today, with the view of segregating those questionable debts for renegotiation; and (2) a review of the automatic appropriations law. The maximum, on the other hand: a debt moratorium, or even a debt default, would free up close to a trillion pesos for reconstruction and recovery. For many countries — from the US during FDR’s time to China in 1949 and Argentina in 2001 — a debt default has produced recovery and growth after a brief period of austerity.
Taxes are another indicator: Instead of cutting taxes to restore purchasing power to consumers and revive industry and agriculture, the PeNoy government is on a silent rampage to increase them. PeNoy may be keeping mum but his Cabinet gofers are the ones making noise. The VAT on toll ways IS a new tax, as any heretofore non-existent tax being imposed is always such, including a tax on any P25 transaction that will cover banana-Q and sampaguita vendors; and no legal gibberish by World Bank hatchet girl Kim Henares can change that. While these new taxes are being pushed (or floated) by PeNoy’s people, they are on a contradictory course in proposing the lowering of tariffs and royalties on oil products and Malampaya gas, which will cut revenues but not touch the profits of oil companies. Such muddle-headedness by the PeNoy Cabinet and other Liberal Party politicians is another malady that characterizes the state of the nation today.
Indeed, power, water, telecoms, and toll ways are the other indicators of the state of the nation: The higher the rates of services, the greater the negative impact on the national economy. Therefore, the rise in poverty and hunger correlates with the years of steeply climbing rates due to privatization. The PeNoy government, on the eve of the State of the Nation Address (Sona) to be delivered by its president, has given no indication of its policies on any of these vital utilities. Instead, it has dwelt on a “shock and awe” of more corruption exposés about the Arroyo regime and “truth telling.” What we should be getting but won’t expect to hear is a review of the Epira and the Performance Based Rating Mechanism (PBRM) for power pricing that is a built-in windfall for power companies and a burden to consumers, as well as, the Wesm spot market, which has been riddled with manipulations of power rates since its inception.
As for the AFP and PNP, an early indication of the total lack of management and direction is the recent “water crisis” incident where newspapers reported thousands of troops called into Metro Manila in anticipation of “water riots,” which call Malacañang a day later denied — a confusion that perhaps mirrors PeNoy’s appointment of his booze-loving nanny as Defense chief. While in the administration of democratic principles and justice that this Republic is supposed to be founded on, nothing typifies the state of hypocrisy and rot better than the way the legislature is treating one of its own and how the judiciary is handling the case of idealistic Sen. Antonio Trillanes IV’s continued detention; this, while a whole gamut — from Nani Perez, Chavit Singson, Nur Misuari, to Gloria and Miriam — runs free.
It’s been an era of economic, political, social, and moral collapse ever since the Yellow power grab of 1986 until this last installation of the Yellow emperor by the global and local oligarchy. Only a nationalist-populist revolution can turn the dire state of the nation around. The only inspiration left for those aspiring for genuine change is the continuing struggle of Senator Trillanes. Join the November 29 Movement (N29M of the Manila Peninsula siege) in its press conference today, 11 a.m., at the Treehouse in Matalino Street, Quezon City.
(Tune in to Sulo ng Pilipino, Monday, Wednesday, and Friday, 6 p.m. to 7 p.m. on 1098AM; watch Politics Today, Tuesday, 8 p.m. to 9 p.m., replay at 11 p.m., on Destiny Cable Channel 21, about “Miscarriage of Justice: The Trillanes Case” with lawyer Rey Robles and lawyer RG Guevarra of N29M; our new blog, http://newkatipunero.blogspot.com)
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