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Noynoy: No more tong-pats
By Aurea Calica (The Philippine Star) Updated July 27, 2010 12:00 AM
 


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.