BACKBENCHER
Rod Kapunan
7/30-31/2011
Actions to vindicate the Constitution should begin by punishing those who premeditatedly violated its sanctity. Along with it, all violations arising from the illegal exercise of power should be treated as residual offenses as when that particular power grabber is later accused of graft and corruption, plunder or human rights violation.
We are compelled to state this because that political postulate does not seem to have any relevance if the accused is the former President who came to power by the legitimate process of being elected, but by bad fortune was ousted. Often we tend to be much more vindictive all for that emotional fact that he was ousted.
Paradoxically, we adulate those who criminally engineered his removal such that we consider it most glorious to punish our former presidents for whatever crime we could heap on them, forgetting that those who assumed the presidency against our will commit a far more serious offense.
We even tend to deny the ousted presidents the privilege of immunity from suit extended to them under the Constitution and of their right as accused to be presumed innocent. For that we forget we are the ones in fact eroding the foundations of our democracy. Instead of punishing those who vandalized our democratic system of government, we reward them for that.
Such misplaced political value is now reflected in our inability to comprehend that the illegality of the acts of an illegal president is merely residual to her act of grabbing political power. The violations she and her coterie, who styled themselves as officials, could not happen had she not conspired to oust the sitting President. As one criminal lawyer would give his satirical analogy, the crimes of looting the funds of the government merely constitute an aggravating circumstance to the crimes of political vandalism and political swindling.
Besides, not much proof to convict them is necessary because history stands as our best evidence of what happened in January 2001 where Mrs. Arroyo in conspiracy with the elite, the clerics, the politicians, and supported by some ambitious military officers ousted the duly elected President. As some kind of recidivist, she did it again in 2004 in a desperate bid to extend her stay, and in 2007 to assure her that Congress would remain tightly under her thumb.
Now that the system is back on track, President Benigno Aquino III’s duty is to make sure it is never derailed again. His best assurance to that is to punish those responsible in derailing our political system. It may sound vindictive, but it is the only way he could rehabilitate the system from the severe shock caused by political vandalism. Failure to bring them to the bar of justice could create a much serious repercussion for then it would constitute a far greater injustice against the Filipino people.
Collaterally, forgiving them is to acquiesce to that deception now being added as chapter in our history. Nonetheless, history, having its own redeeming factor, continues to unravel the truth; that Mrs. Arroyo through her operatives cheated her rival candidate Fernando Poe, Jr. in 2004. Maybe the revelations made by former Autonomous Region in Muslim Mindanao governor Zaldy Ampatuan and Comelec Inspector Lintang Bedol could be brushed aside as mere political fireworks carried out by an administration in need of recognition. But that nonchalant reaction has in no time turned into a much distressing revelation by the unexpected surfacing of a vital witness, police Sr. Supt. Rafael Santiago.
It is not just a confession of identifying the mastermind, but a confession identifying his confederates who carried out that bold and brazen substitution of original election returns at the Batasang Pambansa with tampered and fake ones. Santiago specifically named former Comelec supervisor Roque Bello and his son, El Bello. In fact, his confession is now being corroborated by PO2 Rudy Gahar. Named were Senior Inspectors Raffy Lero, Samson Kimmayong, Warly Bitog; Inspector Ramon Garcia, SPO2 Rommel Pahang, and Paterno Gamba; PO2 Alan Laguyan, Rodel Tabangin and Trifon Laxamana; and PO1 Norman Duco.
No amount of disclaimer by now Zambales Gov. Hermogenes Ebdane could overturn the confession pointing to him as the one who ordered the operations coursed through then Special Action Force Director, Chief Supt. Marcelino Franco. Such is a self-serving denial because Santiago, Gahar, and possibly the rest have no reason to do that had it not for Mrs. Arroyo, she being the principal beneficiary of that criminal act with Governor Ebdane identified as one of her closest confidants.
Maybe the injustice committed by the past regime could have been forgiven had it not been repeated in 2004 and in 2007. Rather, the usurper became much addicted to her vice. The danger however is that the crimes she committed are fast developing into a crime against our own history as a people and as a nation. Such is the eventuality that could happen because chroniclers who were not privy to that infamy would ultimately be writing that Mrs. Arroyo was indeed elected president of this God-forsaken Republic.
From that false premise the next generation of Filipinos would be digesting that abominable lie. We accept political vandalism and political swindling as a rewarding enterprise. Worse, time will come when our people will see nothing wrong or anachronistic in overthrowing an elected government more so if the clappers of the political vandal would start reciting her so-called “achievements” as though they are synonymous to legalizing a criminal act.
To assert that Mrs. Arroyo’s submission to the process of stepping down in 2010 as her final act of contrition is pure rubbish. That misplaced atonement could not cure the damage caused by her trifling of our sacred right to elect our leader. So, unless and until President Aqiuno does something to erase these prevarications in our history, the gratuitous reward of calling the principal political vandal former President would persist.
President Aquino’s ability to rectify the criminal distortions presented as “glorious saga” in our history could become his greatest achievement. He would not only be restoring political stability and maturity, but that his brand of democracy would no longer revolve around the confines of vague idealistic rhetoric. Democracy under his era will be having a concrete mechanism to defend itself.
(rodkap@yahoo.com.ph)
Sunday, July 31, 2011
Friday, July 29, 2011
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.
(Tune in to Radyo OpinYon, Monday to Friday, 5 to 6 p.m., and Sulo ng Pilipino, Monday, Wednesday and Friday, 6 to 7 p.m. on 1098AM; Talk News TV with HTL, Tuesday, 8 to 9 p.m., with replay at 11 p.m., on GNN, Destiny Cable Channel 8; visit http://newkatipunero.blogspot.com and http://hermantiulaurel.blogspot.com for our articles plus TV and radio archives)
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.
(Tune in to Radyo OpinYon, Monday to Friday, 5 to 6 p.m., and Sulo ng Pilipino, Monday, Wednesday and Friday, 6 to 7 p.m. on 1098AM; Talk News TV with HTL, Tuesday, 8 to 9 p.m., with replay at 11 p.m., on GNN, Destiny Cable Channel 8; visit http://newkatipunero.blogspot.com and http://hermantiulaurel.blogspot.com for our articles plus TV and radio archives)
Thursday, July 28, 2011
Cooperativize the economy!
CONSUMERS DEMAND!
Herman Tiu Laurel
7/25-31/2011
The recent Supreme Court decision on PLDT’s capital structure defining only voting shares as the real ownership shares has upset the apple cart of many foreign-controlled companies. Many of these companies hide behind technicalities to evade the Constitutional provision requiring majority Filipino ownership in several basic and strategic industry sectors.
In my layman’s terms, the Supreme Court voted to define ownership as the voting shares, excluding the non-voting shares.
Actually Foreign ‘Owned’
The PLDT shareholder structure is dominated by non-voting shares overwhelming held by Filipinos, but the voting shares are mainly in foreign shareholders’ hands making the PLDT actually foreign dominated.
I agree with the Supreme Court decision because owning a company is about controlling a company, not just being a shareholder that has absolutely no say in its affairs.
I believe the Supreme Court was wise and judicious in its decision, reading the intent of the Constitutional provision on Filipino ownership correctly.
Article XII on the National Economy and Patrimony states:
“Section 1. The goals of the national economy are a more equitable distribution of opportunities, income, and wealth… promote industrialization and full employment … through industries that make full and efficient use of human and natural resources… However, the State shall protect Filipino enterprises against unfair foreign competition and trade practices….
“Section 2. All lands of the public domain, waters, minerals, coal, petroleum, and other mineral oils, all forces of potential energy, fisheries, forests or timber, wildlife, flora and fauna, and other natural resources are owned by the State…. The exploration, development, and utilization of natural resources shall be under the full control and supervision of the State.
“The State may directly undertake such activities, or it may enter into co-production, joint venture, or production-sharing agreements with Filipino citizens, or corporations or associations at least sixty per centum of whose capital is owned by such citizens. …”
The False Premise
The argument invariably raised favoring, allowing, or even inviting or pleading foreign capital into Philippine economic development is that “the Philippines does not have enough capital”.
It is a false premise.
As I have shown in a running debate with the Bangko Sentral ng Pilipinas (BSP), the Philippines does have more than sufficient internal resources to capitalize the agro-industrial and general economic development of the country.
The sources today are: the Special Deposit Account (SDA) set up by the BSP in 1998 as a tool in its financial management and holds up to P 1.7-Trillion today; the Gross International Reserve (GIR) which now amounts to $ 69-B or 12-months cover for trade and imports (when the IMF requires only three months cover), and the Malampaya natural gas earnings now variously reported to be between P 100-B to P 200-B.
The BSP deputy governor retorted on the SDA: “…the BSP does not own (the Special Deposit Account or SDA) and, therefore, it is hardly a ‘disposable’ fund kept idle…”
Use Internal Funds
The following is a number of quotes from private sector financial managers who gives a supporting view against BSP’s claims that the SDA cannot be used, I quote from my columns on the matter: “Marvin Fausto, president of the Trust Officers Association of the Philippines contend otherwise.
“Fausto, in fact, said on Nov. 3, 2010, ‘(the money parked in SDA facilities) should instead be channeled to funding needs, like in infrastructure projects. We need investments. (The money in SDAs) is enough to spur (further) growth.’ Victor Abola, senior economist at the University of Asia and the Pacific, whom I seldom agree with but do in this case, has also said that SDAs are a ‘waste of resources’ and the ‘BSP should lower interest rates for SDAs to free up more funds, from the present 4 percent to 3 percent.’
“We do have internal funds accumulated over the past decade and a half to fully finance our needs, as the entire PPP program of Aquino III requires only half of what the SDA holds.”
Aside from the SDA is the GIR which is kept idle and given to foreign fund managers for placements, earning these fund managers huge commissions.
Controlling Power
The Malampaya fund have been sitting idle with the legislators and other authorities oblivious to it until recently when Senator Recto finally asked, “how much is in that fund?”
Why it has taken them so long to discover this?
Allowing or pleading for foreign capital to take advantage of the Philippine economic opportunities is not a financial or economic one, it is a political one.
The ruling class of this country is an appendage of the foreign power that has controlled this country’s politics for the past hundred years, and they are still the ones controlling the major utilities such as PLDT.
The basic utilities of this country, from communications (like PLDT) to power, water and other infrastructure (with PPP as the flagship today), are businesses that exploit public services extracting profits from consumers and commuters that provide all the capital.
The Wrong Solution
Our fellow columnist Rod Kapunan correctly says, “…all that foreign investors do after they are given a franchise to operate is to demand an increase in their rate on the basis that they need it for their expansion and improvement.
“But once their demand is given, that in effect makes the consumers the financiers of their business.”
This is how PLDT was built, as well as Meralco and many other private utility companies in the Philippines.
But local oligarchy capital is doing the same thing and often in partnership with the foreign capitalists, so the anti-local oligarchy activists are also correct in raising the issue of abuse and exploitation by local capitalist protected by the Constitution.
However, they turn to the wrong solution, which is to open the Philippines to more foreign capital, as the Enrile-Belmonte initiative to call a Constituent Assembly to remove the Constitutional protectionism and open Filipinos to the same exploitation.
What is the solution?
Collective Ownership
The Philippine Constitution, a legacy of centuries of evolution of democratic, republican and nation-state ideology, provides the basis for the correct and most beneficial option for the people.
Since “All lands of the public domain, waters, minerals, coal, petroleum, and other mineral oils, all forces of potential energy, fisheries, forests or timber, wildlife, flora and fauna, and other natural resources are owned by the State…” i.e. the People, and since the People have the funds as well as really finance all these public utilities and other businesses related to the national patrimony, the People should take over these industries and run it themselves under consumers, commuters and national cooperatives.
We finance practically everything in the economy so why don’t we all work together and takeover these industries and businesses.
There was an old form of this collective ownership which was “nationalization”, but a new age may require a new concept: “Consumers Cooperativization” revolution!
Herman Tiu Laurel
7/25-31/2011
The recent Supreme Court decision on PLDT’s capital structure defining only voting shares as the real ownership shares has upset the apple cart of many foreign-controlled companies. Many of these companies hide behind technicalities to evade the Constitutional provision requiring majority Filipino ownership in several basic and strategic industry sectors.
In my layman’s terms, the Supreme Court voted to define ownership as the voting shares, excluding the non-voting shares.
Actually Foreign ‘Owned’
The PLDT shareholder structure is dominated by non-voting shares overwhelming held by Filipinos, but the voting shares are mainly in foreign shareholders’ hands making the PLDT actually foreign dominated.
I agree with the Supreme Court decision because owning a company is about controlling a company, not just being a shareholder that has absolutely no say in its affairs.
I believe the Supreme Court was wise and judicious in its decision, reading the intent of the Constitutional provision on Filipino ownership correctly.
Article XII on the National Economy and Patrimony states:
“Section 1. The goals of the national economy are a more equitable distribution of opportunities, income, and wealth… promote industrialization and full employment … through industries that make full and efficient use of human and natural resources… However, the State shall protect Filipino enterprises against unfair foreign competition and trade practices….
“Section 2. All lands of the public domain, waters, minerals, coal, petroleum, and other mineral oils, all forces of potential energy, fisheries, forests or timber, wildlife, flora and fauna, and other natural resources are owned by the State…. The exploration, development, and utilization of natural resources shall be under the full control and supervision of the State.
“The State may directly undertake such activities, or it may enter into co-production, joint venture, or production-sharing agreements with Filipino citizens, or corporations or associations at least sixty per centum of whose capital is owned by such citizens. …”
The False Premise
The argument invariably raised favoring, allowing, or even inviting or pleading foreign capital into Philippine economic development is that “the Philippines does not have enough capital”.
It is a false premise.
As I have shown in a running debate with the Bangko Sentral ng Pilipinas (BSP), the Philippines does have more than sufficient internal resources to capitalize the agro-industrial and general economic development of the country.
The sources today are: the Special Deposit Account (SDA) set up by the BSP in 1998 as a tool in its financial management and holds up to P 1.7-Trillion today; the Gross International Reserve (GIR) which now amounts to $ 69-B or 12-months cover for trade and imports (when the IMF requires only three months cover), and the Malampaya natural gas earnings now variously reported to be between P 100-B to P 200-B.
The BSP deputy governor retorted on the SDA: “…the BSP does not own (the Special Deposit Account or SDA) and, therefore, it is hardly a ‘disposable’ fund kept idle…”
Use Internal Funds
The following is a number of quotes from private sector financial managers who gives a supporting view against BSP’s claims that the SDA cannot be used, I quote from my columns on the matter: “Marvin Fausto, president of the Trust Officers Association of the Philippines contend otherwise.
“Fausto, in fact, said on Nov. 3, 2010, ‘(the money parked in SDA facilities) should instead be channeled to funding needs, like in infrastructure projects. We need investments. (The money in SDAs) is enough to spur (further) growth.’ Victor Abola, senior economist at the University of Asia and the Pacific, whom I seldom agree with but do in this case, has also said that SDAs are a ‘waste of resources’ and the ‘BSP should lower interest rates for SDAs to free up more funds, from the present 4 percent to 3 percent.’
“We do have internal funds accumulated over the past decade and a half to fully finance our needs, as the entire PPP program of Aquino III requires only half of what the SDA holds.”
Aside from the SDA is the GIR which is kept idle and given to foreign fund managers for placements, earning these fund managers huge commissions.
Controlling Power
The Malampaya fund have been sitting idle with the legislators and other authorities oblivious to it until recently when Senator Recto finally asked, “how much is in that fund?”
Why it has taken them so long to discover this?
Allowing or pleading for foreign capital to take advantage of the Philippine economic opportunities is not a financial or economic one, it is a political one.
The ruling class of this country is an appendage of the foreign power that has controlled this country’s politics for the past hundred years, and they are still the ones controlling the major utilities such as PLDT.
The basic utilities of this country, from communications (like PLDT) to power, water and other infrastructure (with PPP as the flagship today), are businesses that exploit public services extracting profits from consumers and commuters that provide all the capital.
The Wrong Solution
Our fellow columnist Rod Kapunan correctly says, “…all that foreign investors do after they are given a franchise to operate is to demand an increase in their rate on the basis that they need it for their expansion and improvement.
“But once their demand is given, that in effect makes the consumers the financiers of their business.”
This is how PLDT was built, as well as Meralco and many other private utility companies in the Philippines.
But local oligarchy capital is doing the same thing and often in partnership with the foreign capitalists, so the anti-local oligarchy activists are also correct in raising the issue of abuse and exploitation by local capitalist protected by the Constitution.
However, they turn to the wrong solution, which is to open the Philippines to more foreign capital, as the Enrile-Belmonte initiative to call a Constituent Assembly to remove the Constitutional protectionism and open Filipinos to the same exploitation.
What is the solution?
Collective Ownership
The Philippine Constitution, a legacy of centuries of evolution of democratic, republican and nation-state ideology, provides the basis for the correct and most beneficial option for the people.
Since “All lands of the public domain, waters, minerals, coal, petroleum, and other mineral oils, all forces of potential energy, fisheries, forests or timber, wildlife, flora and fauna, and other natural resources are owned by the State…” i.e. the People, and since the People have the funds as well as really finance all these public utilities and other businesses related to the national patrimony, the People should take over these industries and run it themselves under consumers, commuters and national cooperatives.
We finance practically everything in the economy so why don’t we all work together and takeover these industries and businesses.
There was an old form of this collective ownership which was “nationalization”, but a new age may require a new concept: “Consumers Cooperativization” revolution!
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