Noynoy: No more tong-pats By Aurea Calica (The Philippine Star) Updated July 27, 2010 12:00 AM
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MANILA, Philippines - As promised, President Aquino bared during his first State of the Nation Address (SONA) yesterday various anomalies committed by the previous administration and vowed that there would be no more ostentatious and wasteful spending (“waldas”) and “tong-pats” or fat commissions from government projects under his watch.
Speaking in Filipino, the President did not hold back and made the following seething exposés on the preceding administration: a budget deficit of P196.7 billion in the first half of the year; a budget of P100 billion or a mere 6.5 percent left out of P1.54 trillion; a depleted Calamity Fund with a large chunk spent for Pampanga, the home province of former President Gloria Macapagal-Arroyo; alleged abuses and corruption at the Metropolitan Waterworks and Sewerage System (MWSS); fund misuse at the Department of Public Works and Highways (DPWH); the mismanagement of the National Power Corp. (Napocor); the buyout of the losing Metro Rail Transit Corp. (MRT); and the purchase of rice by the National Food Authority (NFA) that was more than needed.
“These projects make no sense, are unstudied and unprepared for, sprouting like mushrooms. The era of such projects is at an end. Under our administration, there will be no quotas, there will be no overpricing, the funds of the people will be spent for the people,” Mr. Aquino said.
The President stressed that the money wasted and stolen from these anomalies could have funded the budget of the entire judiciary amounting to P12.7 billion this year; the conditional cash transfers for the following year at P29.6 billion; and all the classrooms that the country needed, which would cost P130 billion.
“This way of doing things is revolting. Money was there only to be wasted.
“You have heard how the public coffers were squandered. This is what is clear to me now: change can only come from our determination to stamp out this extravagance and profligacy,” he said.
Real state of the nation
The President opened his SONA by telling the people that his administration was facing a forked road.
“In one direction, decisions are made to protect the welfare of our people; to look after the interest of the majority; to have a firm grip on principles; and to be faithful to the public servant’s sworn oath to serve the country honestly. This is the straight path. On the other side, personal interest is the priority, and where one becomes a slave to political considerations to the detriment of our nation. This is the crooked path,” he said.
In the first three weeks of his administration, Mr. Aquino said his Cabinet officials discovered many things and these must be reported to the people amid steps they were taking to solve them.
He said the report was merely a glimpse of the country’s situation and not the entire picture of the crises.
“The reality was hidden from our people, who seem to have been deliberately obfuscated on the real state of our nation,” Mr. Aquino said, adding that in the first six months of this year, government expenditure exceeded revenues.
“Our deficit further increased to P196.7 billion. Our collection targets, which lack P23.8 billion, were not fully met, while we went beyond our spending by P45.1 billion. Our budget for 2010 is P1.54 trillion. Of this, only P100 billion – or 6.5 percent of the total budget – can be used for the remaining six months of the current year. Roughly one percent of the total budget is left for each of the remaining months,” Aquino said.
“Where did the funds go? A Calamity Fund worth P2 billion was reserved in preparation for anticipated calamities. Of this already miniscule amount, at a time when the rainy season has yet to set in, P1.4 billion or 70 percent was already spent,” the President added.
The President said the entire province of Pampanga received P108 million. Of this, P105 million went to only one district while the province of Pangasinan, which was severely affected by typhoon “Pepeng,” received a mere P5 million, which had to be used to fix damage inflicted not even by “Pepeng,” but by a previous typhoon, “Cosme.”
War against tax evaders
To solve the problems, President Aquino said his administration would ensure prudent spending, starting with the budget it would submit to Congress for 2011.
“Next month we will be submitting a budget that accurately identifies the problem and gives much attention to the right solution,” he said.
Mr. Aquino also emphasized that his administration would run vigorously after tax evaders and smugglers to improve revenues.
“There is a case of one pawnshop owner. He purchased a vehicle at an estimated cost of P26 million. If he can afford to buy a Lamborghini, why can’t he pay his taxes? A case has already been filed against him,” Aquino said.
A trail of abuses and mismanagement
He also called on officials of the MWSS to resign for being midnight appointees of Arroyo and assailed them for their alleged abuses and mismanagement of the agency.
“The entire payroll of the MWSS amounts to P51.4 million annually. But this isn’t the full extent of what they receive: they receive additional allowances and benefits amounting to P81.1 million. In short, they receive P211.5 million annually. Twenty-four percent of this is for normal salaries, and 66 percent is added on,” Mr. Aquino said.
In comparison, he said the average worker was receiving only a 13th month pay plus a cash gift.
“In the MWSS, they receive the equivalent of over 30 months’ pay if you include all their additional bonuses and allowances. What we discovered in the case of the salaries of their board of trustees is even more shocking,” Aquino said, enumerating the other perks the board of trustees were receiving.
“We cannot remove them from their positions quickly because they are among the midnight appointees of former president Arroyo. We are investigating all of these things. But if they have any shame left, they should voluntarily relinquish their positions,” Aquino said.
He also lambasted the DPWH for coming up short with its projects and replacing it with projects that weren’t in the plans.
He said from 2001 to 2004, the government forced Napocor to sell electricity at a loss to prevent increases in electricity rates.
“The real motivation for this is that they were preparing for the election. As a result, in 2004, Napocor slumped deeply into debt. The government was obligated to shoulder the P200 billion it owed. What the public thought they saved from electricity, we are now paying for using public funds. Not only are we paying for the cost of electricity, we are also paying for the interest arising from the debt,” Aquino said.
The answer
To buck all the problems, the President laid down his legislative agenda and asked Congress to help him in his programs to improve the country by passing his administration’s priority bills.
He pushed for the passage of the Fiscal Responsibility Bill, amendments to the Procurement Law, Anti- Trust Law, National Land Use Bill, amendment of the National Defense Act and Whistleblower’s Bill, and to strengthen the Witness Protection Program.
“In the soonest possible time, we will convene the Legislative Executive Development Advisory Council (LEDAC) to discuss the important bills that need to be addressed. Rest assured that I will keep an open mind in order for our relationship to be true to our people,” Mr. Aquino said.
The President added his administration would re-evaluate fiscal incentives given in the past.
“Now that we are tightening our purse strings, we need to identify those incentives that will remain and those that need to be done away with,” he said.
“We will not allow another NBN-ZTE scandal to happen again. Whether from local or foreign sources, all proposed contracts must undergo the scrutiny of correct procedures. I now ask for your help in amending our Procurement Law,” he said.
“If the local governments share in our goals, I know that I can surely count on Congress, the institution where I began public service, to push for our agenda for change,” Aquino said.
P-Noy: Make it easy on my Cabinet
Before ending his speech, the President made a pitch for the members of his Cabinet who would be subjected to confirmation by the powerful Commission on Appointments.
“Our Cabinet has already showed its skills by identifying not just problems but also proposing solutions in a matter of three weeks,” he noted, adding that the public witnessed the competence and initiative of those he appointed to the Cabinet.
“It is but just that they not be forced to go through the eye of a needle to be confirmed by the Commission on Appointments. Should this happen, competent Filipinos will be encouraged to help our country through service to the public,” he said.
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