Biazon says Senate panel should look into switching of poll returns

BY DENNIS GADIL

SEN. Rodolfo Biazon yesterday said a probe into allegations that switching of 2004 election returns took place while the documents were in the custody of House should be handled by another body.

Biazon, chair of the Senate national defense committee, suggested that the Senate electoral reform committee headed by Sen. Richard Gordon undertake a fresh inquiry. Gordon was not available for comment.

He said the only reason the Senate defense panel spearheaded the previous investigation was that generals of the Armed Forces were implicated in the alleged electoral fraud in 2004.

He said the involvement of the Special Action Force of the PNP, and not the military, also makes a good argument against taking jurisdiction over the new information.

He assured the full cooperation of his Senate defense panel by "making available all materials presented to the committee."

A VERA files report by journalist Ellen Tordesillas said SAF commandos have admitted to switching ballot boxes and replacing them with fake election returns to make it appear that President Arroyo won over rival candidate Fernando Poe Jr. in 2004. The report said the operation took place right at the South Wing building of the House of Representatives where the contested ballot boxes were being kept.

The SAF officers said they switched the election returns of several provinces on three occasions to reconcile these with the figures in the certificates of canvass and statements of votes that were allegedly tampered with.

Some of them said they got their orders from Chief Supt. Marcelino Franco, then commanding officer of the SAF, saying they were under the impression that it was a "legal operation."

The last time that the "Hello Garci" probe on alleged cheating in the 2004 polls was re-opened was in August last year after Sen. Panfilo Lacson, in a privilege speech, showed a videotape of former intelligence agent T/Sgt. Vidal Doble who claimed he wiretapped former election official Virgilio Garcillano and President Arroyo.

Doble said the wiretapping, ordered by high-ranking military officials, was conducted under "Project Lighthouse," started in late 2003 to tap phones of groups considered a threat to the government as well as officials with doubtful loyalties, including Garcillano.

"She wanted to maintain a lead of 1 million," Doble had told the Senate probe body, adding that the two also spoke of fears that a local election officer might divulge cheating that allegedly took place in the south.

Others wiretapped by military intelligence included Arroyo’s election rival Fernando Poe Jr., an opposition senator, a former Arroyo Cabinet official, and a former aide of ousted President Joseph Estrada, Doble said.

Agencies defying SC on used cars warned

BY DENNIS GADIL

SEN. Joker Arroyo yesterday said government agencies operating in Port Irene, Cagayan province could face severe legal sanctions for defying a Supreme Court (decision banning importation of used cars in freeport zones.

By going against a Supreme Court decision which upheld Executive Order 156, the Cagayan Export Zone, Bureau of Customs, Bureau of Internal Revenue and Land Transportation Office may have unwittingly engaged in an illegal activity, Arroyo said at the hearing of the Senate ways and means panel on alleged smuggling at Port Irene.

EO 156 prohibits the use or sale of imported second-hand vehicles outside Freeport zones. It was upheld by the SC in November 2007.

Jose Mari Ponce, administrator of Cagayan Export Zone Authority, told senators that despite the SC decision, CEZA still allowed the release of the imported vehicles outside Port Irene.

He said 9,000 second-hand vehicles, mostly from Japan, have been sold at the port since 2005.

Ponce said the imported cars were brought out of the economic zone after going through CEZA, Bureau of Customs, Bureau of Internal Revenue and Land Transportation Office.

In response, Finance undersecretary Estela Sales said EO 156 has not been implemented because there is a case before the Cagayan Regional Trial Court about its legality. This case was filed before the high court’s ruling became final and executory.

The case was filed May 2005, Sales said.

LTO chief Alberto Suansing said since duties and taxes had been paid to BIR and BoC, his agency had to register the used cars.

Customs Commissioner Napoleon Sales said the cars were slapped the appropriate duties.

Sen. Juan Ponce Enrile, who inhibited himself from the hearings because Port Irene is in his turf, has insisted there was no smuggling at the economic zone.

Enrile said the used cars being imported to the port are already five years old and go through the legal processes.

During the hearing, Robert Sears, executive director of the American Chamber of Commerce of the Philippines (Amcham), denied news reports that the group had implied that there was smuggling in Port Irene.

"The American Chamber of Commerce of the Philippines has never made a public statement or released a report adverting to the occurrence of smuggling in Port Irene," he said.

'Lift 7 curses; Gloria, resign'

Former Cabinet men decry 'Stolen Republic'

BY DENNIS GADIL

FORMER Cabinet members, some of whom served under the current administration, yesterday said President Arroyo should resign to lift the seven curses she has brought down on the people.

"Each year she stays in power, she brings the nation closer to extinction," said former welfare secretary Dinky Soliman of the Former Senior Government Officials (FSGO) in a press conference at De la Salle Manila campus.

Soliman, who was one of the 10 Cabinet members who resigned in 2005 at the height of "Hello Garci" scandal, said two more years is a long time for a "very bad" president.

The FSGO gave Arroyo a failing grade of 1.1 on a scale of 1 to 5, with 1 as the lowest.

Former trade minister Vicente Paterno read the FSGO's State of the Nation Address, titled "A Stolen, Not a Strong Republic."

It listed seven "curses" of bad governance that they said Arroyo has brought on the people.

Soliman said the President's preoccupation since Day One has been personal survival.

She said Arroyo is now using VAT money to appease the poor, but the latter are not told that only P6 billion has so far been doled out from an estimated P18 billion VAT windfall.

Former civil service chief Karina David said the government is now like the M/V Princess of the Stars before it eventually capsized.

"Butas-butas na. Maraming tubig na pumapasok," David said. "Ang pananatili niya ang siyang nagpapalubog sa atin."

The FSGO said, "Arroyo stole the country's future and robbed the nation of its dignity."

"Gloria Macapagal-Arroyo as the head of our government is the worst threat to the state of our nation. The person pretending to tell us about the dire state of our nation on Monday is the very same person who has done the most to destroy the very foundations of our nation," it said.

"The image of Emperor Nero fiddling while Rome was burning has an echo for us Filipinos today. It is the image of our officials' downing toasts to the leadership of President Arroyo in New York, Washington, and Las Vegas while Filipinos were gasping for air and drowning in the Visayas," the FSGO said.

JPEPA ruling strains High Court credibility: Biazon

BY DENNIS GADIL

THE decision of the Supreme Court to uphold Malacañang's decision to invoke executive privilege on the terms of the Japan-Philippines Economic Partnership Agreement (JPEPA) strains its credibility and impartiality, Sen. Rodolfo Biazon said yesterday.

Biazon, chair of the committee on defense and national security, said he found it strange that the executive department transmitted copies of the trade pact to the Senate for ratification on Aug. 17, 2007 but invoked executive privilege when public interest was at stake.

"Ratification is a process that would entail public debate. How can public debate be proper if executive privilege will be invoked denying the public certain information which is necessary for public acceptance through the Senate of the proposed treaty or agreement? There can be no public debate if information is withheld from the public."

Biazon also questioned a part in the ruling where the SC cited the case of PMPF v Manglapus that the President alone can negotiate treaties, and not even the Senate or the House of Representatives, unless asked, may intrude upon that process.

"Entering into treaties and agreements is a shared responsibility and authority between the Executive and the Legislature specifically through the ratifying powers of the Senate as provided for in the Constitution," he said.

Biazon said the Senate as a "repository of the ratifying power of the government" should closely examine the impact of the high court's ruling and take appropriate action such as getting involved in the filing of a motion for reconsideration of the decision.

The SC, voting 10-4 with one abstention on Wednesday, said the petitioning party list representatives and non-government organizations failed to prove that there is sufficient public interest to overcome the claim of executive privilege to compel government to disclose the "offers" of Japan and Philippine governments.

The petitioners alleged the refusal to disclose the JPEPA documents violates their right to information on matters of public concern and contravenes provisions on transparency of all transactions involving public interest.

The decision was penned by Justice Conchita Carpio-Morales.

Concurring were Associate Justices Leonardo Quisumbing, Antonio Carpio, Renato Corona, Dante Tinga, Minita Chico-Nazario, Presbitero Velasco, Eduardo Antonio Nachura, Ruben Reyes and Teresita Leonardo de Castro.

Dissenting were Chief Justice Reynato Puno, and Associate Justices Consuelo Ynares-Santiago, Ma. Alicia Austria-Martinez, and Adolfo Azcuna.

Associate Justice Arturo Brion abstained as he was part of the JPEPA negotiations as labor secretary.

Sen. Miriam Defensor-Santiago, Senate foreign relations chair, has already endorsed the JPEPA for "conditional" approval to the chagrin of her colleagues, who opposed its ratification on the ground of legality and as a threat to the country's environment.

Sen. Manuel Roxas II, Senate trade chair who co-chaired the hearings on the JPEPA, has also supported the treaty's ratification after having expressed initial reservations on the trade pact's economic benefits.

JPEPA covers trade in goods, rules of origin, customs procedures, paperless trading, trade in services, investment, intellectual property rights, government procurement, movement of natural persons, cooperation, competition policy, mutual recognition, dispute avoidance and settlement, improvement of the business environment and general and final provisions.

IMMEDIATE RATIFICATION

President Arroyo said she is hoping for the immediate ratification of JPEPA following the high court's decision.

"Ang daming nag-aantay na foreign assistance na galing sa Japan na number one sa foreign assistance sa buong mundo," she told radio dzBB.

"Ang daming pagkakataon para sa export para sa ating high-value agriculture na magbibigay ng matataas na income para sa ating magsasaka. Ang daming pagkakataon para sa ating mga caregivers na kaysa pupunta sa kung saan na di pareho ang batas sa pagproteksyon ng manggagawa kagaya ng Japan na very sophisticated ang kanyang labor laws," she said. - With Wendell Vigilia

DOF: VAT scrapping twill benefit rich

BY JOCELYN MONTEMAYOR

THE government yesterday rejected anew proposals to scrap the value added tax on oil products but said it is looking at a possible reduction.

Finance Secretary Margarito Teves said scrapping the 12 percent VAT on oil would benefit the rich and deny the poor of government programs that could help them cope with the rising prices of commodities.

"Department of Finance studies also show that lifting the VAT on oil will largely benefit the rich because they are the biggest consumers of oil while most of the consumption of poor families is VAT-exempt such as agricultural food products," Teves said.

Teves and acting Planning Secretary Augusto Santos said scrapping the VAT would mean a revenue loss of some P73.1 billion. The amount, Teves said, "could otherwise be used to fund programs to help the poor cope with rising oil and food prices."

Teves also said only Congress has the power to suspend the VAT on oil.

Budget secretary Rolando Andaya Jr. said a meeting is already being set up between the CBCP and government’s economic managers.

Santos said instead of a VAT suspension, the government prefers a more calibrated response that is leaning towards a "revenue-neutral suspension" scheme.

He said under the scheme, the government would lower the VAT on oil products to a level that would not affect or alter the targetted revenue collections for the year.

"From January to July this year, oil has increased so nagkaroon kami ng parang excess VAT revenue. What I’m saying about revenue neutral baka pwedeng babaan iyung VAT rate on oil to the extent that government will not anymore be generating additional revenues and instead have that additional revenues effectively be channeled to the oil consumers. So that’s what it’s meant by revenue neutrality," Santos said.

He said the government has excess earning from VAT because when it made its revenue projections at the start of the year, the price of oil in the world market then was at a $60 per barrel. Oil now costs $140 to $145 a barrel.

Santos said the amount of VAT reduction would depend on the current price level of oil and on Congress which passed the VAT law.

"Any deviation from 12 percent should be legislated," he added.

Santos said scrapping the VAT now would give only temporary relief but "in the medium term, in the long term we may have difficulties funding public investments."

REVISING TARGETS

He said the increasing oil prices is a global problem which has raised the inflation rate and prompted the government to revise its projections.

"We are already projecting a 7-9 percent inflation outlook for the whole year 2008 as against the earlier approved inflation target of 3-5 percent. That’s almost double the target," he said.

Andaya said due to the increased oil prices, the government was able to generate about P4 billion from the VAT on oil for the first quarter of the year. He said they expect the second quarter VAT collection from oil to be around the same level if not higher.

Based on projections at the start of the year, government will get at least P18 billion from the VAT on oil.

President Arroyo, in her opening statement at the Cabinet meeting, said the VAT revenues enable government to provide subsidies to the sectors heavily affected by the rising cost of products.

‘GAIN FROM PAIN’

Sen. Mar Roxas said the government’s refusal to suspend the oil VAT only shows its "insensitivity to the people and a policy that means piggybacking on the people’s pain to gain a windfall."

"What does the government want, to earn a windfall despite the people’s suffering, and then look good by giving the money back through subsidies? It would be better to leave the money in the people’s pockets. They know best how to spend it, instead of having it pass through the government and be politicized in the process," he said.

Roxas also called on the government’s economic managers to tell the people, "in black and white," what economic and fiscal policies are being implemented by the government.

"We see signs that our policies have indeed changed. For one, all these subsidies being announced were not specifically stated in this year’s budget," he said.

ALTERNATIVE SOURCES

Sen. Edgardo Angara said suspending the VAT would deplete government resources for food and electricity subsidies.

Angara said government should instead explore alternative energy sources to lessen the country’s dependence on imported oil.

"Solar, geothermal, hydro and wind energy are proven power technologies, for which we have great and untapped potential," he said.

Sen. Francis Escudero said for workers to cope with inflation, the government should see to it that wages which should have been remitted as taxes are retained in pay envelopes on account of the new law exempting minimum wage earners from income tax and increasing tax exemptions for other employees.

June’s 14-year high inflation rate of 11.4 percent wiped out recent wage increases granted to public and private sector employees, Escudero said.

"It’s back to zero. As if no wage hike was granted. Inflation has cancelled whatever value was recently added to pay envelopes" Escudero said.

At the same time the 10 percent hike granted to 1.4 million state workers will take effect this month, a move that will cost government an initial P12 billion this year.

But because the prices of services and goods have risen faster than the salaries of those who buy them, the projected additional purchasing power from the salary increases did not materialize, Escudero said.

Escudero said these pressures "will activate a corresponding pressure for wage salaries, which government has to calibrate carefully lest we enter into the maelstrom of an inflation spiral." – With Dennis Gadil and JP Lopez

Palace scoffs at lifting of VAT on oil

Roxas: Crisis is not the time for business as usual mode

BY JOCELYN MONTEMAYOR

MALACAÑANG yesterday rejected renewed calls for the scrapping of the value added tax on oil products, saying this will only reduce government revenues, increase the budget deficit, and hurt investor confidence.

The finance department has estimated of a loss of P54 billion if the 12 percent VAT taxes on oil is scrapped.

Sen. Mar Roxas has been calling for VAT removal to give the public some relief amid continuing increases in the prices of oil and basic commodities.

Oil prices have now breached the P60 per liter level and oil executives are forecasting a P70 per liter price by August.

Sen. Loren Legarda also called for the VAT scrapping to contain the double-digit inflation experienced for the first time since 1999.

Inflation rate surged to a 14-year high of 11.4 percent last month. The National Statistics Office said almost all commodity groups recorded higher prices last month mainly because of the increase in food and fuel prices.

It is the highest recorded rate since May 1994 when inflation stood at 11.5 percent. It was also the first time inflation had hit double digits since January 1999.

Cabinet Secretary Ricardo Saludo said Roxas' call is contrary to his recommendation that government to sustain fiscal discipline amid concerns of a weakening peso and increased inflation.

"How can one show fiscal discipline and at the same time scrap a major source of revenues which has kept the deficit down and boosted business confidence? And what would Senator Roxas' investment baking friends say to his call for VAT lifting and no interest rate increases?" Saludo said.

Roxas said government should stop piggybacking on the people's pain due to all-time high prices of fuel and food, and should instead review its spending program and prioritize funding for food security and relief.

Roxas, chairman of the Senate trade committee, said that by continuing to impose the 12 percent VAT at this time of crisis, government chooses to become part of the people's burden.

"The situation is very different now. The government should not be in 'business as usual' mode. The situation must be addressed immediately. The government must show it is not insensitive," he said.

Roxas said because present times call for different priorities, the government, in consultation with the people, must review the budget and reallocate non-priority spending to fund urgent needs, particularly food security.

"There really are excesses in government. Aside from addressing that, what we need to do is prioritize. If we have five things we consider important, what's our most urgent priority? Number one, our people should be able to eat. So for items two to five, even if they are important, we should reduce spending for these and transfer funding to number one," he said.

Legarda said the ultimate step to ease the pressure on basic commodities and services is by making oil and power cheaper.

"This could include the scrapping of the VAT from socially sensitive goods like oil and power," she said.

Legarda said the scrapping of the VAT should also be matched by increased investments in technologies that would help the country become less dependent on expensive imported oil.

"More importantly, investments in agriculture should be harnessed to help increase local rice production at lower costs," she said.

Legarda also proposed tapping the support of the private sector in bringing down prices of basic commodities and services.

She said the private sector could also lead in cutting back consumption of unnecessary goods or substituting luxury goods with cheaper ones. - With Dennis Gadil

DepEd, BSP revive Tulong Barya project

THE Department of Education and the Bangko Sentral ng Pilipinas revived on Thursday the Tulong Barya Para sa Eskwela (TBPSE) project to generate additional funds for the improvement of basic education.

TBPSE, first tried last year, gathered P P6,658,548.55 million worth of low denomination coins and returned them to circulation, saving the central bank P8.2 million in minting costs. The saved funds were in turn donated to DepEd by the BSP and used to buy 510 computer units for schools in the provinces.

"We had a very encouraging outcome when we first launched the project in July 2007. It's only appropriate that our schools observe the habit of giving value especially to the low-denomination coins," Education Secretary Jesli Lapus said.

In the relaunched TBPSE campaign, the target is to accumulate P66 million worth of coins for re-circulation, save P80 million in minting cost, and use P5.5 million for the printing of the Financial Literacy Guide for Teachers. Other projects lined up under the agreement are the distribution of the Teachers Guide with a delivery cost of P3.7 million, airtime media advocacy worth P20 million, and the printing of the Financial Literacy Workbook for 12 million students costing P360 million.

The objective of the financial literacy project is to increase savings among "small" savers like public school teachers and students by integrating this concept in the elementary education curriculum. Lapus said Ateneo's Economic Reform and Advocacy will handle the teaching guides and teachers' training.

Lapus earlier said DepEd's lion's share of P141 billion of the national budget is not enough to finance all the improvement projects since 80 percent of the amount is used to pay for the salaries of 450,000 teachers and non-teaching personnel nationwide, and for maintenance and operating expenses.

Yesterday, Senate President Manuel Villar said that by allocating 30 percent of their pork barrel, every congressman and senator will be able to ensure that every Filipino child will complete his elementary and high school education.

Villar's proposed bill called No Filipino Child Left Behind Act (SB 2366) will use an initial seed money of P10 billion from DepEd's budget to jumpstart a program that will see all Filipino children done with their elementary education by 2012 and high school by 2016 based on a concrete plan and timetable.

"Without diminishing their entitlements, all members of Congress must appropriate 30 percent of their congressional initiatives to education-related projects in their respective districts," he said. "It is a declared policy of the State to protect and promote the right of citizens to quality education and take appropriate steps to make such education accessible to all." - Ashzel Hachero with Dennis Gadil

Litmus test: 2 new commissioners to supervise ARMM polls

BY GERARD NAVAL

SO you want them to prove their worth and independence? You now have a chance to see what they’re made of.

Newly appointed Comelec commissioners Lucenito Tagle and Leonardo Leonida were appointed yesterday commissioners-in-charge of the August 11 elections in the Autonomous Region in Muslim Mindanao (ARMM), hours after taking their oath.

"Matagal na naming hinihintay itong mga bagong commissioners. Hindi pa iinit ang upuan nila ipapadala na natin sila sa Mindanao," Comelec chair Jose Melo said.

Their assignments as commissioners-in-charge (CICs) will be reviewed since the six ARMM provinces have been assigned to commissioners Moslemen Macarambon, Nicodemo Ferrer and Rene Sarmiento.

The ARMM provinces are Maguindanao, Lanao del Sur, Basilan, Sulu, Tawi-Tawi and Shariff Kabunsuan.

Tagle and Leonida said the ARMM elections would be their "litmus test."

Tagle said: "I think I can help a lot in improving elections. I come to the commission bringing with me integrity and credibility. I think those two are very important."

"Ang eleksyon kasi sa Pilipinas ay medyo talagang magulo. Baka pwede nating ayusin… eto lamang ang dala ko, ang hope na mapaganda ang ating eleksyon," said Leonida.

Both denied having done any favors for the administration.

"This came as a surprise although I heard I was nominated by several religious and non-government organizations," Tagle said, citing the Rotary Club of Manila and Knights of Columbus as among his supporters.

Tagle was a former associate justice at the Court of Appeals. He also had experience as a judge at a regional trial court in Imus, Cavite for 14 years.

He described his appointment as a "homecoming" as he served as a contractual lawyer in the commission in 1960.

Leonida believes his appointment is the "apex of his legal career" as he was the one who applied for the position.

"If you are a lawyer, this is something you aspire for being part of something like the Comelec," Leonida said.

Leonida said he was happy with endorsements coming from certain groups although he cannot remember their names.

Leonida was acting RTC judge in Malabon prior to his appointment.

The Parish Pastoral Council for Responsible Voting (PPCRV) is wondering how the appointment process was done, considering that Leonida and Tagle are relatively unknown even to the election watchdogs.

"That’s the element of surprise. Saan nanggaling yan? Sino kaya ang nag-nominate? At ano ba ang kanilang prosesong ginamit?" said PPCRV chair Henrietta de Villa in an interview over Church-run Radio Veritas.

She said the two were definitely not in the short list submitted by civil society and election watchdog groups to the Malacañang-created search committee, unlike Melo.

Rep. Edno Joson (Ind., Nueva Ecija) said the fielding of Tagle and Leonida in Mindanao has fueled fears that the administration is already moving to ensure victory in the 2010 elections.

"Siyempre (they are) tying up loose ends for 2010 or OJT (on-the-job training) uli para maplantsa na ang gagawin sa 2010," he said.

Joson said the assignments in Sulu and Shariff Kabunsuan have raised more questions about their appointments because those areas are notoriously known for the massive cheating in the 2004 elections, which was allegedly spearheaded by then Commissioner Virgilio Garcillano.

Akbayan party-list Rep. Risa Hontiveros said, "That they (new commissioners) are really unknown is unsettling. Why couldn’t known advocates have been appointed?"

Senate majority leader Francis Pangilinan dared the two new commissioners to give their best performance in the ARMM to show there’s still hope in the country’s electoral democracy.

"If you fail to perform, we can all kiss our electoral democracy goodbye," Pangilinan said.

Senate minority leader Aquilino Pimentel wants President Arroyo to explain why she ignored the list of nominees submitted by the Palace search committee and poll watch organizations.

Pimentel said the public is entitled to know why President Arroyo chose the two, instead of choosing from the list of nominees prepared by the search committee and the poll watch groups.

The nominees were UE College of Law Dean Amado Valdez, Persida Acosta, head of the Public Attorney’s Office, chief state prosecutor Jovencito Zuño, lawyer Howard Calleja, former Sen. Rene Saguisag and Cagayan de Oro City Rep. Rufus Rodriguez. – With Dennis Gadil

‘Who they?’ greets GMA Comelec picks

CA justice,Malabon judge face ‘baptism of fire’

BY WENDELL VIGILIA

PRESIDENT Arroyo has named Lucenito Tagle and Leonardo Leonida as two new commissioners of the Commission on Elections. Both have served in the judiciary but are relatively unknowns.

Comelec Chairman Jose Melo said he does not personally know Tagle and Lucida but added he and other members would know the two eventually.

Rep. Edno Joson (N. Ecija, Ind.) said, "What distinctions do these appointees have to deserve the posts? What favors have they extended to Gloria. What future favors are expected from them?"

Executive Secretary Eduardo Ermita, in his weekly briefing yesterday, said the President has yet to pick the replacement for Commissioner Romeo Brawner who died of heart attack last month.

Tagle was a former justice of the 15th Division of the Court of Appeals while Leonida, of Marinduque, was acting regional trial court judge in Malabon.

Tagle handled the petition for a writ of amparo against then AFP chief Hermogenes Esperon Jr. and PNP chief Avelino Razon Jr. filed by the family of a soldier involved in the Peninsula siege last November.

The two replaced Commissioners Resurreccion Borra and Florentino Tuazon who retired last February.

The other commissioners aside from chairman Jose Melo are Rene Sarmiento, Nicodemo Ferrer and Moslemen Macarambon.

Senate minority leader Aquilino Pimentel said Tagle and Leonida "will have to prove their worth by action when they discharge their duties and their credentials when they face the Commission on Appointments."

Pimentel said he does not personally know the two.

He said he expects them to define their work through their independence and integrity.

Sen. Alan Peter Cayetano said he is keeping an open mind on the independence of the two new appointees.

"Worth watching is how these new commissioners will do their duties based on what is right and moral and not based on what the appointing power, which is GMA, wants," Cayetano said.

Sen. Juan Miguel Zubiri said the new commissioners will have their "baptism of fire" in the August 11 elections in the Autonomous Region in Muslim Mindanao.

President Arroyo also appointed Josephine Dominguez, an undersecretary for indigenous peoples at the presidential legislative liaison office.

Dominguez is the widow of Mt. Province Rep. Victor Dominguez who died of cardiac arrest last February.

The rest of the new appointments are Ed Pamintuan, chair of the North Luzon Railways Corp.; actress Amalia Fuentes, acting member of the Movie and Television Review and Classification Board (MTRCB); Romeo Momo as Public Works undersecretary; Danilo Valero, executive director of the Road Board secretariat of the DPWH; Ruben Ciron, director general of the Civil Aviation Authority of the Philippines, and Angelo Palana as commissioner (representing the employers sector) of the National Labor Relations Commission. –With Dennis Gadil

Damage placed at P10B

DAMAGE from typhoon "Frank" has reached P10 billion, with more than half on agriculture, the National Disaster Coordinating Council said yesterday.

The P5.21 billion damage to agriculture products was mostly in Aklan and Iloilo, said Glen Rabonza, NDCC executive director.

Agriculture undersecretary Jesus Emmanuel Paras said the NDCC figure does not include the P1.68 billion worth of damage to fisheries. Including this, total damage to agriculture is P7.5 billion, he said.

Paras said more than 60 private commercial fishing boats in Panay Island were damaged.

The NDCC said damage to roads and bridges accounts for P2.3 billion, with most in Aklan, Iloilo, and Capiz; to school buildings, P455 million, mostly in Panay, Calabarzon, Mimaropa, and Metro Manila; and to other facilities, P2.3 billion, including hospitals in Aklan, Iloilo, Capiz and Leyte.

Agriculture Secretary Arthur Yap said the damage to agriculture affects only 0.47 percent of the targeted volume of rice production for this year.

"For corn, the impact is about 1 percent; for high value commercial crops, it’s about 6 percent; for livestock, 0.6 percent; fisheries, 2.42 percent. Basically, the impact on agricultural production and our growth target are at a minimum at puwede nating bawiin ito," he said.

He said the more immediate problem is the livelihood of those affected by the typhoon, which he said the social welfare department is addressing.

President Arroyo said the Federation of Filipino-Chinese Chamber of Commerce and industries Inc. has pledged P8 million for rice and P2 million for school supplies and books.

Arroyo, who visited Iloilo and Sibuyan island, said relief goods have started to come in from all over the world.

She said aside from presidential helicopters which are being used in rescue operations, she has ordered the presidential yacht "BRP Ang Pangulo to be used "as a moving logistics hub."

Arroyo distributed relief goods in Kalibo, Aklan.

Rabonza said Fedex has already offered the use of its carriers for at least two delivery and distribution operations.

He said about 15 tons of relief goods would be delivered from Subic area to the affected areas by Saturday.

Transportation Secretary Leandro Mendoza said he has ordered the use of other commercial vessels in getting goods to their destinations.

Thailand is donating $100,000 cash assistance, according to Gen. Boonsrang Niumpradit, supreme commander of the Royal Thai Armed Forces who paid a courtesy call yesterday on AFP chief Gen. Alexander Yano in Camp Aguinaldo.

Education Secretary Jesli Lapus said damage to school facilities, including at least 970 school buildings, has reached P500 million.

Western Visayas had 149 damaged schools, Eastern Visayas 377, and the NCR 21.

At least 139 schools are still being used as evacuation centers.

A 300-man contingent of rescue and emergency personnel of the Metropolitan Manila Development Authority is in Kalibo to help in the rehabilitation of Panay island.

The contingent is composed of flood control and sidewalk clearing personnel who formed part of the government’s "Mercy Mission." It brought 27 trucks and heavy equipment such as payloaders, drainage-clearing vehicles, cranes, generators, water tankers, man-lifters, backhoes and chainsaws.

Another contingent, composed of 99 more personnel is set to leave Metro Manila shortly for Iloilo City.

Team leader and MMDA Flood Control chief Baltazar Melgar said repairs and clearing operations would take at least a week.

MMDA chairman Bayani Fernando also dispatched six truckloads of construction materials to San Fabian, Lingayen and Infanta towns in Pangasinan to help affected families whose houses were destroyed by Frank.

Senate minority leader Aquilino Pimentel Jr. urged Arroyo to release the July, August and September internal revenue allotments of the provinces hardest hit by the typhoon.

He noted complaints among local government officials and displaced residents in the affected provinces about the "undue delay in the delivery of relief goods, medical aid and other assistance from the national government."

The Local Government Code authorizes local government units to allocate 5 percent of their budget for calamity-related expenses. – Jocelyn Montemayor, Ashzel Hachero, Victor Reyes and Dennis Gadil