Friday, February 3, 2012

Rotten people, not system

DIE HARD III
Herman Tiu Laurel
2/3/2012



I was happy with Eric Espina’s regular 50-minute GNN (Global News Network) public affairs show last Tuesday, where he had a special and very interesting guest. Former national security adviser Norberto Gonzales appeared for the first time since the end of the Edsa II regime that extended beyond the normal term of an administration. With a self-conscious and put-on soft-spokeness to sound wise and fair, Gonzales commented on what he says are growing ills of society. Playing ostensibly unaware or “dedma” that he was part of nine years of governance that had aggravated those very problems, he seemed to discount any personal responsibility and, in a very deft way, blamed “The System,” saying, “I see a lot of good leaders in the country but they have to accept corruption because of the ‘system.’” He mouthed this as if the “system” would persist if there were no people sustaining or feeding on it.

This column has been a dedicated critic of the “system,” too; but it also recognizes that the rotten system would not have survived one more day if there were no avaricious powerful forces commanding morally and intellectually weak opportunists manning it. What is the system that prevails in this country today? It is one which everybody describes as corrupt; it is one that spawns deep and growing poverty, leading to heightened internal conflict and criminality, and culminates in a decaying society.

By saying that no person is at fault, Gonzales would like to fool the people into thinking that the “system” is an evil computer brain that operates by itself and runs every corrupt operation that is causing government and corporatist corruption, poverty, moral collapse, jueteng, drug smuggling, the passage of corrupt laws (such as the Electric Power Industry Reform Act or Epira), or billing power and water consumers with price gouging rates, ad nausea.

By blaming the system, Gonzales is merely entertaining delusions of having no personal responsibility at all — despite being one of the closest and most powerful confidants of Gloria Arroyo, whose nine years of governance were marked by massive swindles — from the Epira, the expanded value added tax (eVAT) expansions, the Impsa/Fertilizer/NBN-ZTE and countless other scams, the 2004 massive election cheating, the first Basilan massacre in 2007, the Angelo Reyes-General Garcia looting of the military’s coffers, the MoA-AD (Memorandum of Agreement on Ancestral Domain) deal with the Malaysians and the US, to a litany of grave deeds that resulted in the highest hunger and poverty rates in the country beginning 2006. All these continue to this day and are aggravated by the present Malacañang occupants who have the same policies as Arroyo.

Thus, if we were to go by Gonzales’ logic, even the present BSA III government he criticizes should not be blamed for the many crises now arising.

After all, wouldn’t the “system” be to blame for the Luneta hostage massacre in 2010 and not BSA III himself or the city mayor who treated him to siopao at Emerald Garden while the hostage taker was running amuck?

Or, was it simply a computer glitch that made our GDP (gross domestic product) growth fall to a disastrous 3.7 percent for the whole of 2011? Was it merely a glitch in the system of the PCOS machines in the 2010 elections that prompted UP and Ateneo IT experts to discover extraneous software apparently used in the machine counting and the duplicate sites in transmission?

At the risk of getting too far ahead in history, we only need to go back to Edsa II in 2001 when the Constitution was trashed. Did the Rule of Law go to the trash bin all by itself, leading to the Rule of Force and then of Money, as evidenced by the approval of the Epira and other pro-Big Business laws by Congress?

Voicing real concern for the Filipinos’ travails should not be soft-spoken anymore but an explosive burst of indignation. The rotten system persists because there are rotten people who sustain it by collaborating, abetting, and aiding it in order to attain selfish aspirations of power and opulence amid growing want. One only needs to look at the some military generals’ family, some Noynoy justices, or Congress, who have used power to profit massively; or those who have endorsed manifold evils, like what Lacson did in condoning the 2004 Comelec fraud, or Congress taking pork barrel and corporatist money (for the Epira); or the Bangko Sentral ng Pilipinas pushing unnecessary debt; or the Department of Energy and the Energy Regulatory Commission giving free rein to oil and power companies to plunder consumers massively, ad infinitum.

Who are those rotten people manning the “system?” From Malacañang decision makers to Congress and the Senate, to the top honchos in the judiciary, to the generals in the military and police hierarchy, to the top execs of the Makati Business Club, to the top operators of “civil society,” all these comprise the core of the rotten system. But are there alternatives to these? In other words, are there still good people around to man “a healthy system?”

I can think of countless of them working selflessly, like Mang Naro Lualhati and Jojo Borja among many others in the crusade against electricity plunder; Alan Paguia sacrificing for Rule of Law; Bono Adaza opposing constitutional abuse in the Corona impeachment case; many Freedom from Debt Coalition members who are fighting debt slavery; our Sulo group volunteers; the Tribune; and millions of ordinary Filipinos who ONLY need new, fresh leadership to break through.

Listen again: It’s the rotten people that keep the system rotten.

(Tune in to 1098AM, dwAD, Sulo ng Pilipino/Radyo OpinYon, Monday to Friday, 5 to 6 p.m.; watch Destiny Cable GNN’s HTL edition of Talk News TV, Saturdays, 8:15 to 9 p.m., with replay at 11:15 p.m., on “RP’s geopolitical challenge;” visit http://newkatipunero.blogspot.com for our articles plus TV and radio archives)

Thursday, February 2, 2012

Advantages/Disadvantages of a National Gov't Agency (NGA): OWWA

 
OVERSEAS WORKERS WELFARE ADMINISTRATION
 
ADVANTAGES/DISADVANTAGES OF A NATIONAL GOVERNMENT AGENCY (NGA):
 
Advantages –
 
  1. Government Subsidy – A national government agency can receive appropriations from the national government unlike a GOCC which, under the declared policy of the incumbent Aquino Administration, will go through a rigorous process – like a camel passing through the eye of a needle – before receiving a subsidy from the national government, especially if the said GOCC is an "Income Center" like the OWWA (if OWWA is indeed a GOCC).  The OWWA charter, if one is enacted into law by Congress, does not even have to have a provision therein that OWWA shall receive appropriations from the national government.  It is automatic or incumbent for all national government agencies to be "qualified" or "entitled" to receive appropriations from the national government.
 
  1. Protection From The Possibility Of Immediate Privatization – A national government agency is assured that it will not be privatized very easily.  A national government agency needs to be converted first into a GOCC before it can be privatized unlike a GOCC which can easily be privatized anytime especially under the new law on GOCCs (RA 10149 or the "GOCC Governance Act of 2011″).  There is no guarantee that OWWA, if it is classified as a GOCC, will not be privatized by this Administration or any President in the future.
 
Section 5-l of RA 10149 states that the GCG shall "Review the functions of each of the GOCCs and, upon determination that there is a conflict between the regulatory and commercial functions of a GOCC, recommend to the President in consultation with the Government Agency to which such GOCC is attached, the privatization of the GOCC's commercial operations, or the transfer of the regulatory functions to the appropriate government agency, or such other plan of action to ensure that the commercial functions of the GOCC do not conflict with such regulatory functions."  Under this section of the said law, it is not unlikely that OWWA will be privatized in the future since insurance, on-site services, benefits, granting of loans and guarantee of repatriation of its members – among other functions of OWWA – are "commercial" and not "regulatory" in character.  It can be easily claimed that "there is a conflict between the regulatory and commercial functions" of OWWA in order to justify the "commercial" functions/activities of OWWA.
 
3.      OWWA Funds Will Continue To Belong To OFWs And Not To The Government – A national government agency which is a trustee of a fund belonging to the overseas Filipino workers (OFWs) like the OWWA can ensure that the said fund will always belong to the OFWs unlike a GOCC which the law presumes to be owned by the government, including all the GOCC's assets and funds.  SEC. 2. of RA 10149 states that "The State recognizes the potential of government-owned or -controlled corporations (GOCCs) as significant tools for economic development. It is thus the policy of the State to actively exercise its ownership rights in GOCCs and to promote growth by ensuring that operations are consistent with national development policies and programs." (Emphasis supplied)
 
Likewise, Section 5 (c) of RA 10149 states that the newly-created Governance Commission for Government-Owned or -Controlled Corporations (GCG) shall "In consultation with the relevant government agencies and stakeholders, adopt within one hundred eighty (180) days from its constitution, an ownership and operations manual and the government corporate standards governing GOCCs x x x". (Emphasis supplied)
 
If OWWA is a GOCC, the private fund it is now holding in trust, which belongs to its OFW-members, will become a public fund owned by the State according to the above-quoted sections of RA 10149.  If OWWA is an NGA, the fund it is now holding in trust will remain as a private fund belonging to its OFW-members held merely in trust by OWWA.  A public fund can be privatized.  But how can you privatize a fund that is already private –  belonging to OFWs – and not belonging to the government?  Only something that is "public" can be privatized.
 
  1. OWWA Will Be Solely Under The Supervision Of The DOLE – A national government agency will only directly report to the mother agency (DOLE, in the case of OWWA) to which it is attached while a GOCC will also have to report to the GCG (at the same time) which shall determine if a GOCC like OWWA (if it is indeed a GOCC) "should be reorganized, merged, streamlined, abolished or privatized" (Section 5-a of RA 10149).  Not only does a GOCC have to report to the GCG, since privatization is again mentioned here, and because the deficit of the national government today is quite big and there is a policy of downsizing government and getting government out of functions and activities that can be undertaken by the private sector, it is really not far-fetched to think that OWWA may be privatized by the incumbent Administration or by a future President whose main policy goal may be the privatization of all GOCCs.  We must be reminded that OWWA's functions and activities can be undertaken by the private sector.
 
  1. The Selection Process In Appointing Board Members Shall Continue To Be Democratic As Provided by RA 10022 – Section 5-e of RA 10149 states that "In addition to the qualifications required under the individual charter of the GOCCs and in the bylaws of GOCCs. without original charters, the GCG shall identify necessary skills and qualifications required for Appointive Directors and recommend to the President a shortlist of suitable and qualified candidates for Appointive Directors." Likewise, Section 15 of RA 10149 states that "An Appointive Director shall be appointed by the President of the Philippines from a shortlist prepared by the GCG.  The GCG shall formulate its rules and criteria in the selection and nomination of prospective appointees and shall cause the creation of search committees to achieve the same. All nominees included in the list submitted by the GCG to the President shall meet the Fit and Proper Rule as defined un this Act and such other qualifications which the GCG may determine x x x."  Section 16 of RA 10149 also provides that "All members of the Board, the CEO and other officers of the GOCCs including appointive directors in subsidiaries and affiliate corporations shall be qualified by the Fit and Proper Rule to be determined by the GCG x x x."  In the case of OWWA (if it is classified as a GOCC), these provisions of RA 10149 will affect the selection process which RA 10022, or the law amending the Magna Carta of OFWs (RA 8042), instituted in order to make the said process more democratic and accessible to OFWs and NGOs.
 
  1. Term Of Office – Seciton 17 of RA 10149 mandates that "Any provision in the charters of each GOCC to the contrary notwithstanding, the term of office of each Appointive Director shall be for one (1) year x x x."  The existing laws and the OWWA Omnibus Policies does not contain this one (1) year limitation on the term of office of OWWA directors precisely to allow a director to gain experience and benefit from the usual learning curve so that he/she can serve more effectively and ensure continuity in policies.  If OWWA is classified as a GOCC, the provision of Section 17 of RA 10149 shall prevail.
 
  1. Stricter Regulation Of Salaries, Bonuses, Travels, Representation And Other Expenses and Transparency – A national government agency is under the strict audit of COA and not exempted from the Salary Standardization Law.  The bonuses, travels, representation expenses and other expenses of officers and employees of a national government agency are strictly monitored and regulated.  This will assure the OFW-members of OWWA that their fund will be judiciously, prudently and reasonably used/spent.  There is also more transparency requirements and standards regarding the said expenses in a national government agency than in a GOCC.
 
Disadvantage –
 
1.   There Is Less Flexibility – A national government agency, being a line-agency or attached agency in the Executive Department, has less flexibility than a GOCC.  However, this can be easily addressed if a "charter" is provided by law (Congress) to the said agency.  Congress, in the exercise of its enormous power to legislate (subject only to certain limitations prescribed by the Constitution), can actually create a new and unique entity which has the flexibility and almost all the advantages of a GOCC but which will be classified as a national government agency.
 
 
ADVANTAGES/DISADVANTAGES OF A GOCC:
 

Advantages –

 
  1. Flexibility – By its very nature, a GOCC can exercise and does enjoy more flexibility than a national government agency.
 
  1. The CEO Of A GOCC Shall Be Under More Accountability – Section 18 of RA 10149 states that "The CEO or the highest-ranking officer provided in the charters of the GOCCs, shall be elected annually by the members of the Board from among its ranks. The CEO shall be subject to the disciplinary powers of the Board and may be removed by the Board for cause."
 
  1. The Transparency In A GOCC Now Approximates That Of A National Government Agency – Section 25 of RA 10149 mandates that "All GOCCs shall maintain a website and post therein for unrestricted public access" financial reports, including travel, representation and other expenses of directors and officers, and its corporate operating budget, among others.
 
Disadvantages –
 
1.   The advantages of a national government agency stated above already spells out the disadvantages of a GOCC, especially as it relates to OWWA.
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While glued to ‘impeach show’

CONSUMERS' DEMAND!
Herman Tiu Laurel
1/30-2/5/2012



While Metro Manila and the Philippine mainstream media are glued to the Corona impeachment trial in the Senate, the thieves are getting away with highway robbery right under the noses of the people. As it has been for the past two-and-a-half decades, the target of this gigantic burglary are the crown jewels of the nation’s energy sector, this time focused on Mindanao’s.

Our fellow power consumer crusader and expert, second generation power distribution company entrepreneur, Mr. Uriel “Jojo” Borja of Iligan Light and Power, has been up in arms over the artificial power crisis in Mindanao being concocted to justify contracting new power generation capacity at double the cost per kilowatt-hour (kWh) for the next 25 years.

At present, power generation in Mindanao costs an average of P2.60/kWh, but if the Department of Energy (DoE) and the Power Sector Assets and Liabilities Management (PSALM) Corp. were to have their way, this will rise to around P5.00/kWh, almost equal to those of Luzon and Visayas’ generation rates.

Mindanao has traditionally enjoyed half the cost compared to other parts of the country because the bulk of its power supply comes from hydroelectric power plants such as Agus-Pulangui. However, experts have said that the government agencies’ management of these hydroelectric dams and power plants has been a dismal failure due to sheer incompetence or (as others argue) willful neglect.

For one, dredging and de-silting have not been religiously performed, reducing the capacities of these dams, while the scheduling of the release and use of their reserves for power have been suspiciously untimely, exhausting them too early and emptied just as seasonal shortages are expected -- seemingly to justify the frequent DoE “red alerts” on impending power curtailments.

Quite strangely, the DoE has been issuing “red alerts” since 2009, citing expected rainfall shortages from droughts brought about by La Niña. Even though these are repeatedly predicted, Jojo Borja counters that the rains that have come every year have more than defied these predictions.

For instance, 2011 was supposed to be a dry year for Mindanao; but Typhoon “Sendong” came and Cagayan de Oro and Iligan were devastated with a deluge resulting in murderous landslides. I wrote and disputed several weeks ago a power shortage “red alert” issued by the DoE and the National Grid Corp. of the Philippines (NGCP), the private company that took over government’s transmission grid. Sadly, this is still being repeated today.

Although some parts of Mindanao are said to be experiencing as much as eight-hour brownouts -- much like what Luzon had during Cory Aquino and Fidel V. Ramos’ time, Borja early last week confirmed that what they had noticed in Iligan suddenly ceased (for no explicable reason) a week later.

Some people attribute the brownouts in some areas to lack of power transmission connections, as mentioned over a DWIZ radio morning talk show. But Borja does not see any power supply shortages, and if there are or will be, he says these will only be short-term and will not justify contracting new power plants.

The National Power Corp. (Napocor) has vintage 90s power crisis power barges (PB) lying idle in Luzon, waiting to be utilized for emergencies; but the DoE Secretary Rene Almendras announced again last week that PB 101, 102, 103, and 104 will be sold off by March 2012.

To a normal, rational, and logical mind, Almendras’ plan is absolutely ridiculous. It will only cause the same tragic result as the 2009 sale of PB 117 and 118 to the Aboitizes’ Therma Marine group for $30 million, which it turned around and revalued a few months later at $70 million and used as its rate base for supplying emergency power to Mindanao--thereby horrendously raising the power cost!

As such, Rep. Rufus Rodriguez of Cagayan de Oro vehemently objected to the sale of the said power barges in 2009 and continues to object to the present hurried sale. Instead, he calls for the four power barges still owned by government to be transferred to Mindanao to provide emergency power at the lower cost that Napocor provides--a plea that the DoE is seemingly deaf to.

In fact, more than insisting on selling the power barges in March, the DoE has also opened the way for new power plants to be contracted and set up in Mindanao, which is reminiscent of the independent power producers (IPPs) in Luzon of the 90s during Ramos’ time.

As it was back then, these new contracts will surely have “take or pay,” purchased power agreements that consumers will see tacked on to their bills whether they use electricity or not--for the next 20 to 25 years. And so the scam that was inflicted on Luzon in the 90s that has saddled the country with an $18-billion Napocor debt is being inflicted on Mindanao this time.

There is clearly a well-established modus operandi in all this that involves the conspiracy of the international finance mafia, the corrupt political authorities, together with the local and (in this case) Mindanao oligarchy to swindle the people. Make no mistake about it, Malacañang is without doubt a party to all this since such a scheme will not ever fly without its consent.

So we appeal to our dear Filipino consumers and taxpayers: Wake up to the systematic and massive swindle against us by the conspiracy of the ruling oligarchs and their political agents in elected and appointed government positions. Let us train our eyes and our passions on the issues that really matter, and demand the fulfillment of our economic rights, as well as the provision of the people’s basic needs at the least, most constructive, and effective cost.

Let us never be distracted again by the “Weapons of Mass Distraction” provided by the political theater where these tradpols spend hours grandstanding but give nary a day or hour to zero in on the grandest scam of the century--the power rip-off occurring daily in our midst.

(Tune in to 1098AM, dwAD, Sulo ng Pilipino/Radyo OpinYon, Monday to Friday, 5 to 6 p.m.; watch Destiny Cable GNN’s HTL edition of Talk News TV, Saturdays, 8:15 to 9 p.m., with replay at 11:15 p.m., on “Geopolitical crisis on the horizon;” visit http://newkatipunero.blogspot.com for our articles plus TV and radio archives)