Executive Privilege versus Public Interest

by NEPOMUCENO MALALUAN
THIS NO one questions: The Senate or the House of Representatives or any of their respective
committees may conduct inquiries in aid of legislation. They may also request the heads of
departments to appear before them and be heard on any matter pertaining to their departments.
The prerogative to request the heads of departments to appear in order to elicit information,
sometimes referred to as the question hour, constitutes the oversight function of ongress in
respect to the e!ecutive. "n #eeping $ith the system of separation of po$ers, ongress may only
request and appearance is discretionary on the part of department heads. "n contrast, $hen the
inquiry is in aid of legislation, appearance is compulsory, $ith an attendant po$er to punish for
contempt. To be in aid of legislation, the inquiry must be material or necessary to the e!ercise of a
po$er vested by the onstitution in ongress, such as to legislate, or to e!pel a member. To compel
an ans$er, the question need not of itself be material to a proposed legislation, but only that it be
material or pertinent to the sub%ect of the inquiry.
&hile e!tensive, inquiry in aid of legislation is not absolute or unlimited. The rights of persons
appearing in or affected by such inquiries, such as the rights to due process and to not be compelled
to testify against one's self, must be respected.
&hen former (ational )conomic and *evelopment +uthority ,()*+- secretary general Romulo (eri
testified at the Senate hearing on the ./012million national broadband net$or# ,(3(- government
contract $ith 4T) orp. of hina, he invo#ed e!ecutive privilege in declining to ans$er some of the
questions as#ed of him by the legislators. His act raised questions not only inside the Senate and
among the increasingly frustrated public, but also $ithin the legal community. +nd $hile the president
recently revo#ed the e!ecutive order that had created the privilege in the first place, it remains a topic
of debates and discussions in media and else$here.
5et (eri's Senate testimony $as not the first time that $hat appeared to be another species of
limitation to ongressional po$er of inquiry gained prominence. "n September 0667, the ommittee
of the Senate as a $hole had issued invitations to various e!ecutive officials to appear as resource
spea#ers in an inquiry on alleged overpricing and unla$ful provisions of a government contract
covering the (orth 8u9on Rail$ays ,(orth Rail- pro%ect. The Senate ommittee on (ational *efense
and Security also issued invitations to various officials of the +rmed :orces in relation to its inquiry
into the alleged role of the military in election fraud, and in the $iretapping of the president's
telephone conversations.
;n September 0<, 0667, then Senate =resident :ran#lin *rilon received a letter from )!ecutive
Secretary )duardo )rmita informing him that the invited e!ecutive officials could not attend the
hearings $ithout the president's consent, pursuant to )!ecutive ;rder >?>, $hich $as issued by the
president on that same day. + similar communication $as sent by the hief of Staff of the +rmed
:orces to the chairman of the ommittee on (ational *efense and Security. T$o officers of the
+rmed :orces $ho attended the scheduled hearings $ithout the president's approval $ere later
relieved from their military posts and made to face court martial proceedings.
PARSING EO 464
Section @ of ); >?> required all heads of departments of the )!ecutive to secure the president's
consent prior to appearing before ongress in accordance $ith +rticle A", Section 00 of the
onstitution. Section 0 ,a- gave an enumeration of classes of information bet$een the president and
public officers covered by e!ecutive privilege, and section 0 ,b- gave an enumeration of public officers
covered by the );. Section / provided that the public officers enumerated under Section 0 ,b-, in
addition to heads of departments as stated in Section @, shall li#e$ise secure prior consent of the
president before appearing in ongress to ensure, among others, adherence to the rule on e!ecutive
privilege.
The Senate and other parties raised the matter $ith the Supreme ourt in the case of Senate vs.
)rmita ,B.R. (o. @?1CCC, 06 +pril 066?-. "n its decision, the Supreme ourt held that Section @ must
be construed as limited in its application to appearances of department heads in the question hour
$here attendance is meant to be discretionary by +rticle A", Section 00 of the onstitution. "t cannot
be applied to appearances of department heads in inquiries in aid of legislation under +rticle A",
Section 0@ of the onstitution $here appearance is mandatory, e!empting only a valid claim of
e!ecutive privilege.
Sections / and 0 ,b- $ere declared invalid for allo$ing an implied claim of privilege. The ourt said
that an implied claim of privilege is invalid per se since it leaves ongress in the dar# on ho$ the
requested information could be classified as privileged. The effect of this is to severely frustrate the
po$er of inquiry of ongress. Section 0 ,a- $as not invalidated as it merely provides guidelines,
binding only on e!ecutive officials and not conclusive on the other branches of government, on $hat
is covered by e!ecutive privilege.
:rom the court ruling $e can distill the parameters of a claim of e!ecutive privilege as an e!ception to
the breadth of the ongressional po$er of inquiry:
)!ecutive privilege is recogni9ed only in relation to certain types of information of a sensitive
character. The Supreme ourt cited various sources that point to the different types of
information that may be recogni9ed as privileged. These may include state secrets regarding
military, diplomatic, and other national security matters, as $ell as presidential conversations,
correspondences, and discussions in closed2door abinet meetings.
That a type of information is recogni9ed as privileged does not mean that it $ould be
considered privileged in all instances. "n determining the validity of a claim of privilege, it is not
enough to determine $hether the information falls in any of the recogni9ed privileges, it must
also be as#ed $hether the privilege should be honored in a given procedural setting. Thus, a
claim thereof may be valid or not depending on the ground invo#ed and the conte!t in $hich it
is made.
)!ecutive privilege may be invo#ed in relation to specific categories of information, but not to
categories of persons.
+ claim of privilege, being a claim of e!ception, the grounds therefore must be clearly asserted
and not merely implied. ongress, ho$ever, must not require the e!ecutive to state the
reasons for the claim $ith such particularity as to in fact disclose the information.
"n light of the highly e!ceptional nature of the privilege, the po$er to invo#e the privilege is
limited to the president, but may authori9e the e!ecutive secretary to invo#e the privilege on
his or her behalf provided that the e!ecutive secretary states that it is 3y order of the
president.
&hen an e!ecutive official being summoned by ongress on a matter that, in his o$n
%udgment, might be covered by e!ecutive privilege, he must be afforded reasonable time to
inform the president or the e!ecutive secretary of the possible need for invo#ing the privilege.
The e!traordinary character of e!emptions indicates that the presumption inclines heavily
against e!ecutive secrecy and in favor of disclosure.
Glri!"s M#sterius Millins$ St!c%s & Stc%s' S(!rce )!t!
by MALOU MANGAHAS
Last of Three Parts
TH) 8+&5)RS and spo#esperson of =resident Bloria Dacapagal +rroyo have spo#en, in many
$ords saying that the @@>2percent surge in her declared net $orth from 0666 to 066< could be
e!plained.
In t*is series$
=art 0: Bov't spends =>7D on road to lot +rroyo sold for =>0D
Rel!te+ PCI, stries$
Shame and scandal in the :amily
The unma#ing of a =resident
=ortrait of a president
SALNs$
Bloria Dacapagal2+rroyo Statements of +ssets, 8iabilities, and (et &orth ,066<-
Bloria Dacapagal2+rroyo Statements of +ssets, 8iabilities, and (et &orth ,066C-
Bloria Dacapagal2+rroyo Statements of +ssets, 8iabilities, and (et &orth ,066@-
Bloria Dacapagal2+rroyo Statements of +ssets, 8iabilities, and (et &orth ,@11<-
Bloria Dacapagal2+rroyo Statements of +ssets, 8iabilities, and (et &orth ,@11@-
Eoseph )strada Statements of +ssets, 8iabilities, and (et &orth ,@11@-
:idel Ramos Statements of +ssets, 8iabilities, and (et &orth ,@11@-
ora9on +quino Statements of +ssets, 8iabilities, and (et &orth ,@11@-
SEC +cu-ent.s$
Bloria Dacapagal2+rroyo S) i2Report
Eose Diguel +rroyo S) i2Report
Relev!nt +cu-ent.s$
Summary: +ssets ,Real =roperties- @11@2066<
Summary: +ssets ,Real =roperties- @11@2066<
Summary: +ssets ,=ersonal =roperties- @11@2066<
Summary: 8iabilities @11@2066<
Summary: (et &orth @11@2066<
3usiness, :inancial "nterests @11@2066<
*eclared +ssets: Real =roperties @11@2066<
*eclared +ssets: =ersonal and ;ther =roperties @11@2066<
*eclared 8iabilities ,8oans, Dortgages, etc- @11@2066<
Relatives in Bovernment ;ffice @11@2066<
S$orn statement of Fdong Dahusay in 066/
"n a press conference Donday, her la$yer Romulo Dacalintal said the ongoing ="E report G $hose
part @ $as released earlier that day H $as speculative and %udgmental. He added that ="E must
come up $ith proof to support its most unfair and uncalled for findings on +rroyo's $ealth.
8a$yer Ruy Rondain, $ho also serves as counsel to :irst Bentleman Eose Diguel +rroyo, seconded:
Dy feeling is that if the ="E has any evidence, it $ould be better if they bring it out because the
report is %ust full of insinuations.
"ndeed, there are more details that the ="E has uncovered, and $hich +rroyo's la$yers themselves
may $ell $ant to loo# at. ontained in various documents obtained from the ;ffice of the
;mbudsman, Securities and )!change ommission ,S)-, Register of *eeds of local government
units, and other relevant public agencies, these details raise more questions that even Dacalintal and
Rondain may not be able to ans$er.
:or instance, in the Statement of +ssets and 8iabilities and (et &orth ,S+8(s- she filed in 066<,
=resident +rroyo had declared o$nership of only si! real estate properties, $ith total boo# or
acquisition value of a measly =7.C million.
These include a gift purchased residential lot in +ntipolo, Ri9alI a house and lot in 3aguio ityI a
ra$ land in oron, =ala$anI a fishpond in Dalolos, 3ulacanI an agricultural lot in (asugbu, 3atangasI
and a commercial lot in Tayabas, Jue9on.
Fntil recently, the :irst ouple had o$ned a three2hectare agricultural lot in San Rafael, 3ulacan that,
according to then Senator +rroyo's @117 S+8(, they acquired for =@.0 million. They sold it for =>0
million on *ec. 0/, 066<.
"t $as to be the only real estate property that the +rroyos liquidated to account for a significant cash
inflo$. ash might have come in from the sale of three other real properties they o$ned H a
residential lot in 8as =inas, an island in agayan, and a condominium in Da#ati ity G but these $ere
sold in @11> and @111, or before +rroyo became president.
N L! /ist!' n 0rbes
uriously, over the last @C years or from @110 $hen she first served as senator, +rroyo had not once
declared t$o prime real estate properties that her o$n abinet officials believe she o$ns or has
interests in: her house on (o. @> 3ad%ao Street in posh 8a Aista Subdivision in Jue9on ity, and her
parents' house on (o. 10 ambridge ircle, (orth :orbes =ar# in Da#ati ity.
3y +ugust <, 066<, official records sho$ that o$nership of @6 house2and2lot properties of the +rroyo
clan in 8a Aista had been transferred in the name of 8a Aista Holdings and "nvestments, "nc., from
another company $hose registration the S) had revo#ed in +ugust 066/.
8a Aista "nvestments and Holdings is the only company that +rroyo listed in her 066< S+8( in $hich
she and her husband have business interest andKor financial connections. The :irst Bentleman,
=resident +rroyo said, is a shareholder of 8a Aista "nvestments.
Raul Bon9ale9, chief legal counsel today and for five years %ustice secretary of +rroyo, recalls
attending meetings at the (orth :orbes house until t$o years ago.
Larina onstantino *avid, ivil Service ommission chairperson until 066C, says she #no$s that the
house on 3ad%ao Street is clustered among several houses that all belong to the +rroyos and their
children and immediate relatives.
"n their separate S+8(s, +rroyo's sons Euan Diguel and *iosdado, both members of the House of
Representatives, as $ell as the :irst Bentleman's brother, "gnacio Er., and sister, Daria 8ourdes, no$
a party2list representative, have all declared o$ning houses $orth multimillions of pesos in the +rroyo
enclave on 3ad%ao and Lalinga streets in 8a Aista.
O-bu+s-!n' CSC -u- n Glri!"s SALNs
B)TT"(B the responsible officials to tal# about issues of compliance in form and in substance $ith
the Statements on +ssets, 8iabilities, and (et &orth ,S+8(- la$ is sure to test anyone's patience and
stamina.
"t too# t$o $ee#s for ;mbudsman Derceditas Butierre9 to respond to a simple request from the
=hilippine enter for "nvestigative Eournalism ,="E- for an intervie$ on the declared net $orth of
=resident Bloria Dacapagal +rroyo.
The reply, sent by +na 3lesilda +. Danglallan, +ssociate Braft "nvestigator ", even turned out to be
%ust a curt notice: The said ,="E- letter $as assigned to one of the la$yers of the ;ffice of 8egal
+ffairs for appropriate action.
Butierre9, a la$ school classmate of :irst Bentleman Eose Diguel +rroyo, is supposedly s$amped
$ith $or# and meetings she could not sit do$n for an intervie$ $ith, or even ans$er phone calls
from, the ="E, according to her staff
Deantime, ivil Service ommission ,S- hairman Ricardo Saludo has yet to formally respond to
a similar ="E request, also filed t$o $ee#s ago.
Saludo, a former %ournalist, had served as deputy spo#esperson, =residential Danagement Staff
director, and secretary to the abinet of +rroyo before he $as appointed S chair in 066<.
His chief e!ecutive assistant, la$yer Brace Ramos, did call late last :riday, but %ust to say that the
="E request $as still being discussed by the commissioners. Saludo, according to another staff, $as
also busy last $ee# for a taping of his television program, Republic Service that airs every :riday
nights on the state2subsidi9ed television channel (3(2>.
5esterday, Saludo's deputy, Ramos, called again, this time to say that Saludo could not grant the
="E an intervie$ because questions about compliance $ith the S+8( la$ might require %udicial
determination by a court of la$, and that $hatever he tells the ="E might be interpreted as a S
ruling.
The ="E e!plained that the request $as for a simple intervie$ about the S's lead role in enforcing
the implementing rules and regulations of the la$ requiring officials to file S+8(s before the +pril /6
deadline every year.
"n addition, the ="E told Ramos that no %udicial determination by the S $as required because no
legal suit has been filed against +rroyo, $ho en%oys immunity from suit $hile she remains president.
Republic +ct (o. ?C@/, or the ode of onduct and )thical Standards for =ublic ;fficials and
)mployees, assigns the ;mbudsman and the S lead roles in enforcing the S+8( requirement.
"ndeed, their monitoring is #ey in policing $hat former Senator Rene +.A. Saguisag G main author of
R+ ?C@/ G describes as a nation of scoffla$s, or habitual violators of the la$.
Read more
An ele(*!nt"s -in+
That +rroyo seems to have forgotten about these houses and other assets surprises Bon9ale9, $ho
s$ears that the =hilippines' @>
th
president has the memory of an elephant.
+rroyo, he says, remembers the minutest details, facts, figures, faces, numbers, and names from
even years bac#. He says it is unthin#able for +rroyo to forget $hat she and her husband o$n.
&hat is obvious, ho$ can you forget $hat is obviousM Ho$ can " forget my $ife has a chic#en farmM
Ho$ can " forget my $ife is engaged in loo#ing for properties $hich are foreclosed and sold in public
auction and she tries to buy them those things she can afford, Bon9ale9 says.
She is very meticulous, she is very retentive, he says of the president. Dy Bod, she has the
memory of an elephant, and things you discussed si! months ago she can tell you.
Dacalintal and Rondain mean$hile say that +rroyo's $ealth could be e!plained not %ust by her real
estate properties, but also by her shareholdings in companies that she and her husband o$n.
"n truth, in her 066< S+8(, +rroyo had declared that stoc#s already made up C6 percent, or =@@6
million, of her declared net $orth of =@>>.7 million. Her S+8(s, ho$ever, do not say in $hich
companies she has acquired capital shares, and $hether these are listed in the stoc# mar#et.
The ="E obtained all documents available at the S) on the business entities in $hich the president
and the :irst Bentleman, their sons, and other relatives in public office have interest in a diligent effort
to find out $hether these could account for the surge in +rroyo's stoc#s portfolio.
Stoc#s, also called capital shares or equity, represent claims of o$nership in a corporation G $hether
or not publicly listed in the stoc# mar#et.
0e1 (r&it!ble &ir-s
The president, according to S) records updated as of ;ctober 066<, still has business and financial
connections in at least five entities: ;ptima Research N onsultancy +gency, "nc., incorporator as of
Sept @7, @1<6I 8.T.+. Realty orp., incorporator, as of Sept. 0<, @110I )A+ *evelopment orp.,
incorporatorKboard member, as of Day @<, @11/I irculo =ampangueno of Buam, "nc., board
member, as of Sept. 01, @11CI and entrist *emocrat "nternational +sia2=acific, "nc., stoc#holder,
incorporator, board member, as of Euly 0>, 0667.
The :irst Bentleman, by the S)'s records, still has business interests and financial connections in at
least nine entities: Trans Realty o., "nc., incorporator, as of ;ct. <, @1<6I Raco2Trading =hilippines,
"nc., incorporator, as of ;ct. 1, @1<6I 8.T.+. Realty orp., incorporator, as of Eune 0<, @1<0I +viatica
Travel N Danagement orp., incorporator, as of Euly 00, @1<CI )va *evelopment orp., incorporator,
board member, as of Day @<, @11/I =hilippine 3looming Trade and *evelopment orp., incorporator,
as of Sept. 7, @117I and =acific Dint "nternational orp., incorporator, board member, as of Day @7,
@11C.
The :irst Bentleman is also connected $ith three foundations: +teneo 8a$ lass 'C0 :oundation,
"nc., board member, as of Darch @>, @11?I Kaibigan ni Bloria Dacapagal +rroyo :oundation, board
member, as of Day @C, @111I and :irst Bentleman :oundation, "nc., incorporator, as of Day 0<,
0660.
+ll these firms are not listed in the S+8(s that +rroyo filed from 066@ to 066<. 3ut since most are not
particularly big or profitable, they could not have served as sources of the :irst ouple's additional
cash or equity shares.
N +ee+s & !ssign-ent
S) records further sho$ that e!cept in the case of one firm ,=hilippine 3looming Trade and
*evelopment orp.-, no deed of assignment or certificates of divestment have been filed by the
+rroyos from any of these companies as of +ugust 1, 0661.
The ode of onduct and )thical Standards for =ublic ;fficials says that a public official or
employee shall avoid conflicts of interest at all times, and that $hen such situations arise, the official
should resign from his position in any private business enterprise $ithin thirty ,/6- days from his
assumption of office andKor divest himself of his shareholdings or interest $ithin si!ty ,?6- days from
such assumption.
The ode defines divestment as the transfer of title or disposal of interest in property by voluntarily,
completely and actually depriving or dispossessing oneself of his right or title to it in favor of a person
or persons other than his spouse and relatives.
The voluminous records that the ="E secured from the S) on the corporate assets of the :irst
ouple yield interesting details:
E/A )evel(-ent Cr(r!tin$ The primary purpose declared, in an amended articles of
incorporation filed on Ean. ?, @11C and signed by Eose Diguel +rroyo as corporate secretary,
$as to invest in, purchase, or other$ise acquire and o$n, hold, use, assign, transfer,
mortgage, pledge, e!change or other$ise dispose of real and personal property of every #ind
and description including shares of stoc#s, bonds, debentures, notes, evidence of
indebtedness, and other securities or obligations, of any corporation or corporations, domestic
or foreign, for $hatever la$ful purpose or purposes, the same may have been organi9ed and
to pay therefore in money or by e!changing therefore stoc#s, bonds or evidences of other
indebtedness or securities of this or any other corporation, and $hile the o$ner or holder of
any such real or personal property, stoc#s, bonds, debentures, contracts, or obligations, to
receive, collect and dispose of the interest, dividends, and income arising from such property
and to possess and e!ercise in respect thereof all the rights, po$ers, and privileges of
o$nership including all voting po$ers of any stoc# so o$ned.
)va *evelopment's incorporators $ere the late parents of =resident +rroyo, former president
*iosdado Dacapagal and former first lady )vangelina D. DacapagalI Bloria D. +rroyo, her
brother *iosdado D. Dacapagal Er., and Eose Diguel T. +rroyo.
The authori9ed capital stoc#, at date of incorporation, $as =76 million, and subscribed,
=076,666 evenly split among the five incorporators.
The firm listed its principal office address at the Dacapagals' family home on (o. 10
ambridge ircle, (orth :orbes =ar#, Da#ati ity. The office address $as later changed to
0667 +lpha Salcedo ondominium in Da#ati ity. "n its latest financial statements filed $ith the
S) and signed by independent auditors .3. *imar and +ssociates, the firm reported
retained earnings of =0> million, total assets of =?7.7 million in 066C, accrued e!penses and
advances from stoc#holders of =C<<,<>1. +mong its current assets, the firm listed =@C.?>
million in loans and accounts receivable, $hich the notes to the financial statements
e!plained represents advances made to certain parties that as of *ec. /@, 066C amount to
=@C,?/1,@>?./1.
Avi!tic! Tr!vel 2 M!n!ge-ent Cr(3 + ne$ five2person board of directors no$ represents
the firm $ith Da. *olores :ortun signing as president and Aictoria Seno as treasurer. The
other directors as of Euly 07, 066? $ere =hilip Sigfrid +. :ortun, Dylene T. Darcia2reencia,
*ic#son 3erberabe, and harisse . orales. 3y this time, +viatica also increased its capital
stoc# from =0 million to =7 million. *olores :ortun acquired =0.? million $orth of stoc#s
equivalent to cash advances she made to the firm. She issued five chec#s $orth from
=066,666 to =766,666 from Euly /@, 066> to Euly @>, 066?, in favor of +viatica.
;n Sept. @@, 066?, +viatica submitted amended articles of incorporation and declared its
primary purpose to be in general, to conduct the business of a travel and tour agency and
allied services, and accordingly, to invest, operate andKor maintain tourist facilities, including
transportation, vehicles, ships, planes, helicopters, resorts, conference facilities both here and
abroad for the e!clusive use of the corporation. "n this document, +viatica said its =?66,666
subscribed capital stoc# includes shares G at the firm's inception on Euly @, @1<C G of Eose
Diguel T. +rroyo ,@,666 stoc#s $orth =@66,666-, as $ell as Aictoria R. Bon9ales, Honorario
=oblador """, Eose =. *ans, Dercedes *. *e Eesus and :rancisco *inglasan.
P*ili((ine 4l-ing Tr!+e !n+ )evel(-ent Cr(3 The firm's declared primary purpose:
to engage in conduct, and carry on the business of buying, selling, distributing, mar#eting, at
$holesaleO.in so far as may be permitted by la$, all #inds of goods, commodities, $ares, and
merchandise of every #ind and description, to enter into all #inds of contracts for the e!port,
import, purchase, acquisition, sale, at $holesale, and other disposition for its o$n account as
principal, or in representative capacity as manufacturer's representative, representative bro#er,
indenter, commission merchant factors or agents, upon consignment, all #inds of goods,
$ares, merchandise, of products $hether artificial or natural. The co2incoporators of Eose
Diguel +rroyo $ere Dary San Euan, =io D. Lingsu, Bao 4hide, and &ang 4ong Ling. The firm
declared authori9ed capital stoc#, => millionI subscribed, =@ million. "ts last filing $ith the S)
dated Ean. 0, 066C reported a transfer of business address signed by company president
Eacqueline T. San Euan.
P!ci&ic Mint Intern!tin!l Cr(3 Eose Diguel +rroyo $as incorporator together $ith Aictoria
Toh, Salvador Buevara, Lelvin Tan, and Thomas Toh Er. The firm said its primary purpose
$as to engage in the business of trading of goods such as food, pharmaceuticals and others
on $holesaleKretail basis. "ts authori9ed capital stoc# $as =@ million, and paid2up capital,
=?0,766 in @11C, and increased to =076,666 in @111, evenly split among the five
incorporators. The firm named Aictoria Toh as treasurer but as of its filing $ith the S) said its
retained earnings by @11< $as a deficit of =0>>,171.C/.
5!ibig!n ni Glri! M!c!(!g!l Arr# 0un+!tin3 Three +rroyo scions are listed as
incorporators: the :irst Bentleman, his brother, (egros ;ccidental Rep. "gnacio T. +rroyo Er.,
and the =resident's son and =ampanga Rep. Euan Diguel D. +rroyo. "n addition, Di#e +rroyo's
#no$n close associates )dgardo . Danda, +lfredo D. Buico, and )fraim Benuino are also
incorporators. +part from the incorporators, at least @? other persons $ere listed as trustees
of the foundation, including other relatives of the :irst ouple. Danda $as elected as
treasurer. "ts latest S) filing sho$ed that as of 066<, the foundation had total fund balance of
=>.C7 million, slightly less than the =7.67 million it reported in 066C and 066?.
The foundation cited among its purposes for e!istence the follo$ing: To determine the factors
that $ould contribute to the social and economic upliftment of certain communities in the
=hilippines, and to identify and ma#e available the appropriate technology, technical e!pertise,
and resources necessary and advisable to address the desired development. +lso, the firm
said it $anted to identify regional, provincial, municipal and barangay socio2economic
development particularly in the province of =ampanga through the full mobili9ation and
development of available resources that it may tap or generate.
0irst Gentle-!n 0un+!tin' Inc3 This latest venture of Di#e +rroyo has four close friends of
his serving as its other incorporators: )dgardo . Danda, businessman +ntonio abangon2
hua, :eorelio D. 3ote, and Danuel . Ro!as. "ts audited financial statements sho$ed that
the foundation had cash ending balance of =?.6@ million in 066?, slightly up from =7.< million
in 0667.
Liste+ stc%s6
;nly these +rroyo companies are the most liquid among the undeclared business interests of the
:irst ouple but altogether, their retained earnings $ould still not account for the surge in the
president's =@@62million stoc#s portfolio.
+s per the S+8( la$, the president $as required only to declare the acquisition value of stoc#s she
buys, $hich means that the increasing value of her stoc#s represents incremental volumes and not
price earnings, if she had invested in publicly listed companies.
Jueried at the Donday press conference about details regarding the +rroyos' stoc# investments,
la$yer Rondain replied that these are available at the =hilippine Stoc# )!change. 3ut stoc# bro#ers
approached by the ="E say it $ould be hard to discern these data because such placements may
have been made blind, or in the name of the bro#erage houses and not the actual purchaser of the
stoc#s.
Stoc#bro#ers say t$o other bro#erage houses are #no$n to be trading for the +rroyos. The ="E
decided not to name them at this time.
oincidentally, the president's o$n brother, *iosdado Dacapagal Er., is senior managing director of
+.T.R. Lim)ng apital =artners, "nc., $hich calls itself the largest independent investment house in
the =hilippines. 3y many accounts, he is $ell2li#ed in the industry.
5et even if the president had invested in publicly listed companies, the increase in her stoc# interests
seems incredulous, given the global financial crisis that sent mar#ets tumbling in 066C and 066<.
7It"s ! -ir!cle8"
To Larina *avid, $ho led the crafting of the ne$ S+8( form designed to capture baseline data on the
assets of public officials, the rise in +rroyo's stoc#s cache in a do$n mar#et defies logic.
"t's a miracleP she says. Dy friends $ho invested in stoc#s in 066C $ere all cryingO even the "=;s
,initial public offering- that supposedly $ould fly did not, and they had to sell at a loss.
*ata on the performance of stoc#s in the =hilippine Stoc# )!change from 066C to 066< bear this out:
returns on blue2chip peso stoc# funds yielded big losses, or returns of bet$een negative @>.0<
percent to negative ><.0< percent in 066<I peso balanced funds, returns of negative ?.0C percent to
negative /0.70 percentI dollar balanced funds, negative <.?< percent.
=eso bonds generally did better, but also recorded small returns of 6.7C percent to 7.0? percent.
:oreign currency bond funds sho$ed mi!ed performance results G only three delivered small returns
of at most 0./C percent, $hile seven others slid in value $ith returns of negative 6.C@ percent to
negative @/.<C percent.
;ne respected economist says that +rroyo's soaring stoc# portfolio beats even the record of &arren
3uffett, ); and largest shareholder of 3er#shire Hatha$ay and, according to Forbes maga9ine, the
$orld's second richest man in 066<.
3uffett used to have a net $orth of ./C billion. &hen the global financial crisis struc#, 3er#shire
reported a ?02percent decline in profits. 3uffet's loss: three billion pounds, or about .>.1 billion.
Nt*ing t *i+e
;nly four months on the %ob as +rroyo's legal counsel, Bon9ale9 says he has not been involved in
preparing the president's S+8(s. 5et he asserts that he #no$s +rroyo to be very meticulous $ith
everybody and very strict on matters of compliance.
&hen told that +rroyo has stac#ed up on her stoc#s portfolio in companies that she did not disclose,
Bon9ale9 is evidently surprised.
&ell, probably these people are more speculative than others, he says. They say $hen the
economy is do$n, it's a buyer's mar#etO di ilagay mo dyan baka yan tumaas uli yumaman ka bigla
,$hy not invest, $ho #no$s the mar#et may improve, and you'll suddenly be rich-.
Holding bac# data on companies an official has equity shares in is a matter Bon9ale9 finds pu99ling.
"f there's nothing to hide, $hy notM
The intent of the la$ is quite clear, he says, but others are %ust la9y, they are thin#ing as long as they
can file, it's enough, %ust li#e people $ho file income ta! returnsO Kung matiklo nila, magbabayad
ako ,"f " get found out, then "'ll pay-.
Still, Bon9ale9 maintains that he believes the president had complied $ell $ith the S+8( la$. " $ould
thin# she has compliedO " am sure she is compliant, he says.
3esides, he says, if the president e!pects everyone to be accountable because of their oath, +rroyo
surely reali9es that the onstitution gives her a different oath as president, a bigger accountability.
=art of that bigger responsibility is to assume command responsibility not %ust over her subordinates
but also, under the +nti2Braft 8a$ or Republic +ct /6@1, up to the fourth degree of consanguinity or
her third2degree relatives, Bon9ale9 adds.
To be sure, according to Bon9ale9, the la$ does not prohibit officials from trading in stoc#s, even
though it is assumed they have access to important and secret mar#et2moving information. Bon9ale9
even remar#s, ,To- say that because "'m a member of the abinet and " play $ith stoc#s, " have
information about this, " thin# that's unfair.
3ut he says he has no appetite for such trade, noting, 5ou are gambling. "t can ma#e you a
millionaire today, ,you- lose it tomorro$. With additional research by Karol Ilagan. Aura Marie
Dagcutan and Ed Lingao, PCIJ, August !!"
Sen!te t t!%e u(
!ccess t in& bill
=osted by: )d 8ingao Q +ugust 07, 0661 at 7:/0 pm
:iled under: Beneral
Eust the other $ee#, the =hilippine enter for "nvestigative Eournalism came out $ith a series of
reports on the =resident's assets and net $orth.
The series capped an e!haustive and e!hausting investigation that ran for more than three months
and netted reams of documents. Ho$ever, many of these official documents had to be sourced
through unofficial channels because many government agencies and officials chose to ignore
requests for documents and intervie$s.
This $ee#, the Senate is e!pected to begin floor deliberations on a bill that $ill give the public greater
access to information and documents, and sanction officials and agencies that refuse to respect the
public's right to #no$.
Cvering Cr#
=osted by: )d 8ingao Q +ugust 07, 0661 at 7:@/ pm
:iled under: Beneral
Dembers of the old Dalacanang =ress orps ,@1<?2@110- had a small reunion during the $a#e and
burial of former =resident ory +quino to pay their respects to an ordinary house$ife $ho turned out
to be an e!traordinary =resident.
overing ory $as certainly no easy matter, and there $ere many occassions $hen reporters had to
$rite and re$rite the boo# on covering the chief e!ecutive. 3ut it $as a learning e!perience for both a
ne$ly freed press, and a ne$ly accountable presidency.
Cr# n Nin#' ne l!st
=osted by: Eaemar# Tordecilla Q +ugust 00, 0661 at @0:@> pm
:iled under: Beneral
by Tita Aalderama
"T T;;L Eun Reyes three years to do put together a 702minute documentary on the last @6 days in
the life of martyred opposition leader 3enigno S. +quino Er. from the time he left his family in 3oston
until he $as felled by assassin's bullets 0? years ago.
+nd it may $ell be the best $ay of retelling #he Last Journey o$ %inoy& As #old #hrough the Last
Inter'ie( o$ Cory. &hat $ill no$ be #no$n as the valedictory intervie$ $ith ory +quino $as
captured on camera %ust a little over four months before her o$n death last +ugust @.
The digital docu2drama $as born out of director Reyes's desire to ma#e a timeless film about (inoy.
He $anted a film that $ill ma#e him real to audiences $ho have never $itnessed him alive nor
remember him for $hat he has doneHhoping to inspire future generations, to spread (inoy's ideals
and to ma#e him #no$n as more than %ust the face on our 7662peso bill.
The film ,is- told from t$o voices and points of vie$ only: (inoy's and ory's. The stories of these
t$o unique individualsHtheir struggles N victories, the transformation of (inoy from a man2of2the2
$orld to a spiritual man, and ory as a loving $itness to all these, ,is- heard and seen throughout the
film, said Reyes, great grandson of the late Severino Reyes of the 8ola 3asyang fame.
The documentary became a fitting tribute to (inoy and had its public screening at the Roc#$ell
cinema in commemorating the 0?
th
year of (inoy +quino's death.
+ccording to Rapa 8opa, pro%ect director of the 3enigno S. +quino Er. :oundation, "nc., the film $ill be
ta#en to the different colleges and universities across the country for vie$ing. This $ould be part of
the campaign to create $ider a$areness on the sacrifices of (inoy for democracy and freedom in the
country.
The past 07 years since (inoy +quino's death have $itnessed a creeping amnesia in the national
psyche, notes 8opa.
(inoy's legacy of spiritual transformation, heroism and commitment to democracy has slo$ly been
dissipated by the gradual erosion of our democratic institutions and the $ea#ening of our collective
initiative for change. The nation is e!periencing the fading of memories of the historic struggles that
led to the :ilipino's glorious shining moment.
#he Last Journey o$ %inoy& As #old #hrough the Last Inter'ie( o$ Cory ta#es an intimate loo# at
the man H his strengths and $ea#nesses, his triumphs and failures, his dreams and fears, as $ell as
his simple %oys as a husband and family man. "t presents a tapestry of insights on the man and the
martyr in particular, and about the :ilipino people in general.
3am +quino, $ho $as pic#ed to portray (inoy in the re2enactment of some scenes in the film,
observes that (inoy and ory loo#ed li#e they $ere finishing each other's sentences in the $ay the
events $ere presented using video clips of speeches of (inoy and the intervie$ of ory done in
Darch.
3am's father, =aul +quino 2 younger brother of (inoy 2 did the thought voice of (inoy in the film. 3oth
3am and =aul $ere reluctant to do their respective parts, but $ere later persuaded upon learning that
most of the people behind the pro%ect $ere doing it for free or for minimal fees.
&hy did it ta#e three years to ma#e this filmM
Betting the funding $as a challenge. Scripting and research too# time also since it $as a ne$ format
for us. asting $as li#e$ise a challenge, says Reyes.
The film has been rated Beneral =atronage by the Dovie and Television Revie$ and lassification
3oard. "t $ill be sho$n over +3S23( and +( on Sunday, @6:/6 p.m. as a tribute to both (inoy and
ory.) PCIJ, !!"
0ir-s -ining 1!ters*e+' &rest !re!s & 9!-b!les
=osted by: Eaemar# Tordecilla Q +ugust @1, 0661 at @@:>1 pm
:iled under: Beneral
The second part of our report on the mining mayhem happening in 4ambales province $ritten by
multimedia %ournalist Eaileen :. Eimeno reveals ho$ miners have been scraping the forest cover and
operating in Sta. ru9's $atershed, $hich feeds the to$n's t$o irrigation systems and provides local
fol# $ith potable $ater. +side from this, some miners have also bulldo9ed their $ay through plots
covered by the *)(R's ommunity23ased :orest Danagement ,3:D-.
+ sidebar report, + $atchdog in need of $atching, ta#es a closer loo# at the =rovincial Dining and
Regulatory 3oard ,=DR3- of 4ambales.
Mining -!#*e- triggers ec:+is!ster in 9!-b!les
=osted by: Eaemar# Tordecilla Q +ugust @<, 0661 at <:01 pm
:iled under: Beneral
;ur latest offering is a t$o2part report on the mining mayhem that is no$ unfolding in 4ambales
province, one of the areas hardest hit by Typhoon Li#o last $ee#. )arlier last year, the people of
4ambales had endured a similar tragedy $hen Typhoon osme struc#.
4ambales, $idely held to be rich in nic#el, chrome, gold and other mineral deposits, has lured a bevy
of mining companies big and small. 3ut the surge in mining operations, as the first part of the report
reveals, is no$ ta#ing its toll on the livelihood, the environment, and the safety and $ell2being of the
residents. ,+lso see sidebar: Eobs, mines, po$er, violence-
Today $hen typhoons visit 4ambales, an eerie scene engulfs most of the to$ns G flood$aters rising
so fast and so high, and blood2colored $ater rushing do$n from upstream, breaching riverban#s in
some places, and inundating ricefields.
This report $as $ritten by multimedia %ournalist Eaileen :. Eimeno G former ="E deputy e!ecutive
director and program manager of highly acclaimed public2affairs programs on BD+2C.
Still n Ric*!r+ S3 Li-
=osted by: Eaemar# Tordecilla Q +ugust @<, 0661 at ?:71 pm
:iled under: Beneral
Editors Note Last !onday, "ugust #$, %e re&ei'ed a letter from the la%yers of (i&hard )y Lim,
saying that he is the (i&hard ). Lim of *er&huan +ndustrial ,o., +n&, but that he is not the (i&hard ).
Lim %ho bought the )an (afael, -ula&an lot of First .entleman /ose !iguel "rroyo.
0e looked again at the original blog 1ost u1loaded "ugust #2, 3445, and noted that the %ay it %as
%ritten did not seem to allo% the 1ossibility that the (i&hard ). Lim listed in the re&ords of the
)e&urities and E6&hange ,ommission 7)E,8 and &ited in the 1ost &ould be more than one indi'idual.
0e ha'e therefore re'ised the 1ost to refle&t this 1ossibility. "t this 1oint, ho%e'er, that is as far as
%e &an go gi'en the s1arse data on the man %ho bought the lot nestled in the foothills of the )ierra
!adre for P9#.: million.
Ric*!r+ S3 Li-' M#ster# M!n
H) )(B+B)* in a multimillion2peso transaction $ith :irst Bentleman Eose Diguel +rroyo, but
Richard S. 8im remains a mystery to the ="E. 8im, $ho bought the :irst Bentleman's 0.12hectare lot
in San Rafael, 3ulacan last year had turned do$n requests for a face2to2face intervie$ several times.
"nstead, he resorted to te!t messages and e2mails in corresponding $ith ="E.
*ue to the nature of my business, "'d rather stay lo$ profile, he said in a te!t message. "'ve already
disclosed my trade in mining $hich $as better left unsaid in the first place.
8im is neither a public official nor a government employee. +side from the no$ #no$n fact that he
bought the +rroyo land for =>@.7 million, there seems to be little information about 8im that is
available to the public.
8im himself says he is a businessman engaging in buy and sell. The Securities and )!change
ommission ,S)-, mean$hile, lists a Richard S. 8im as an incorporator in at least four companies:
Dicropac omputer orp., *erchuan "ndustrial o., "nc, *erchang )lectrical "ndustries "nc., and Hi2
8ife Health Spa orp.
;nly *erchuan "ndustrial and Hi28ife Health Spa are currently registeredI Dicropac omputer and
*erchang )lectrical "ndustries have had their registration revo#ed by the S). Save for one e!tra
number, $hich may or may not be a typo, the address of Richard S. 8im of Hi28ife Health Spa is the
same as that of the buyer of the +rroyo lot in 3ulacan. The S)'s recorded address of Richard S.
8im, president and chairman of *erchuan "ndustrial, is not.
*erchuan is a company $hose primary purpose is ,to- engage in, conduct and carry on the business
of buying, selling, distributing, mar#eting at $holesale and retail O "t registered $ith the S) on
+ugust 0/, @11/ and holds office in (ovaliches, Jue9on ity. "ts general information sheet indicates
that it has an authori9ed capital stoc# is =7 million, $ith a paid up capital of =@.0> million.
S) records sho$ a Richard S. 8im as a stoc#holder of the company, along $ith t$o :ilipinos
,&ilbert S. 8im and )laine . Barcia- and t$o hinese nationals ,8ee Ding Tao and :an hih2Dei-.
He has subscribed shares $orth =>76,666 in *erchuan.
*erchuan's audited financial statement sho$s that it had a net income of =@?@,6/?.C@ in 066C,
slightly higher from =@76,</1.10 in 066?. The statement also indicates the firm's total assets and total
liabilities and stoc#holder's equity are both at the same amount of =0.1 million, as of *ecember 066C.
The Richard S. 8im $ho appears as a stoc#holder of Hi28ife Health Spa, located in 3arangay
Danresa, Jue9on ity, has subscribed shares in that company $orth =/C7,666.
;ther stoc#holders of the company are Henry S. Tan, 8olita S. hing, 8oraine S. Tan, and Da.
Bemma . Balpo. Hi28ife Health Spa's audited financial statements sho$ that it had a cash balance
of =@C<,?<?.07 and net loss of =C/0,/C?.11 in 066<. The statement also indicated the company's
total assets and total stoc#holder's equity are also both at the same amount of =/ million, as of
*ecember 066<. Hi28ife $as registered $ith the S) on (ovember @, 066>. G Karol Anne M. Ilagan,
PCIJ, August !!"
M4C issues st!te-ent n t*e PCI,"s re(rt n Arr# 1e!lt*
=osted by: Eaemar# Tordecilla Q +ugust @>, 0661 at >:>> pm
:iled under: Beneral
The Da#ati 3usiness lub on &ednesday issued a statement on the ="E's three2part report, an
=resident +rroyo )!plain Her &ealthM ,See part @, part 0, and part /-.
M!%!ti 4usiness Club St!te-ent n t*e PCI, re(rt n Presi+ent Arr#"s St!te-ents &
Assets' Li!bilities' !n+ Net ;rt*
&e $ish to commend the =hilippine enter for "nvestigative Eournalism for a %ob $ell done on its
three2part series on =resident +rroyo's still2to2be2e!plained $ealth. The press serves a $atchdog
function and, disagreeable as it may be to those $ho have suffered its nasty bite, $e must allo$ the
press to perform this function, $ithout coercion or threats.
"t no$ behooves the =resident to personally respond to the issues raised by the ="E article. "t is
unfortunate that instead of clarifying matters, the =resident has opted to call in her legal advisers $ho
have tried to attac# the message as $ell as the messenger rather than respond in any meaningful
and germane manner.
"n particular, the business community $ould be particularly interested in the remar#able gro$th of
Drs. +rroyo's net $orth during her incumbency as a government employee from @110 to 066<, $hen
her personal $ealth increased from =?.C/ million to =@>/.7> million, according to the ="E account.
That equates to a compounded gro$th of 0@.@R per annum, $herein her net $orth doubled every /.>
years. Her stoc# portfolio, mean$hile, gre$ by >@R per annum from =77 million in 066? to =@@6
million in 066<, at a time $hen the =hilippine Stoc# )!change inde! fell by 0@R.
Held against the light of economic reality and the :irst ouple's declared assets and income sources,
the impressive gro$th of Drs. +rroyo's $ealth is difficult to fathom. Through her la$yer, the =resident
has stated that she stands by the truth and veracity of her S+8(, but it is difficult to accept her
statement at face value if all that she has to substantiate her claim is the paltry information provided
in the document and her spo#espersons' e!planations that only lead to more unans$ered questions.
8i#e aesar's $ife, the =resident must be above suspicion. +s the highest public servant in our
country and in the interest of good governance, Drs. +rroyo must set an e!ample by ma#ing a full
and transparent accounting of her and her family's $ealth. She o$es the :ilipino people an
e!planation.
0ir-s Mining ;!ters*e+' 0rest Are!s & 9!-b!les
by ,AILEEN 03 ,IMENO
ST+. RF4, 4+D3+8)S G :or nearly t$o years no$, 8eonardo 8ustria Er., manager of the Sta. ru9
$ater district, has been at his $it's end trying to find $ays to protect the to$n's $atershed, $hich
feeds Sta. ru9's t$o irrigation systems and provides local fol# $ith potable $ater.
See (!rt < & t*is re(rt:
Dining mayhem triggers eco2disaster in 4ambales.
They're mining the $atershedP he laments.
&e have a $aterfall up there, says 8ustria. &e have more Dindoro pines there than in Dindoro,
and pitcher plants that that are among the biggest in the country.
Some 06 #ms from the to$n proper, the Sta. ru9 $atershed $as also reforested more than a
decade ago through an =@<.@2million loan from the +sian *evelopment 3an# ,+*3-. The *epartment
of )nvironment and (atural Resources ,*)(R- pro%ect, $hich called for the planting of mahogany,
acacia, agoho, eucalyptus, and other types of trees, $as carried out from @11> to @111.
"n total, the national government borro$ed =0C.7 million from the +*3 to reforest five areas in
4ambales. The biggest reforestation site G @,666 hectares or ?C percent of the total G $as at the Sta.
ru9 $atershed. Today all five reforested areas are being mined. Randolph Dirador, $ho headed the
people's organi9ation that planted trees in Sta. ru9 under the +*3 program, can only say $ith a
sigh, Talagang nakasasama ng loob ,"t's really heartbrea#ing-.
"n her 066< State of the (ation +ddress, =resident Bloria Dacapagal +rroyo dedicated a fe$ lines to
mining, as#ing business and civil society to continue to $or# for a socially equitable, economically
viable balance of interests.
A 1!tc*+g in nee+ & 1!tc*ing
TH) =rovincial Dining and Regulatory 3oard ,=DR3- acts li#e the environment department's eyes
and ears on the ground $hen it comes to ho$ mining is being carried out in a particular, $ell,
province. +mong other things, a governor approves the issuance of a small2scale mining contract
only upon the recommendation of the board.
To ensure that the concerned sectors have their say in the board, the Small2Scale Dining +ct
stipulates that the =DR3's five members be made up of one representative each from the regional
office of the environment department, the office of the governor, the large2scale mining industry, the
small2scale mining sector, and civil society.
The environment department representative chairs the =DR3, thereby #eeping it under the control of
the national agency. 3ut that no longer seems to be the case in 4ambales, $here the board has been
pac#ed $ith the governor's hand2pic#ed appointees.
:or sure, the *epartment of )nvironment and (atural Resources has held on to its single board seat.
3ut that's still one against four. +side from provincial legal counsel (oel :errer, the governor's
representative, there is small2mining permit2holder +rsenia 8im for the small2scale mining sector, and
*eody Solee of :"82+S"+( Dining for the large2scale mining industry. There is also *r. Teresa 5ap of
the 4ambales Tourism ouncil :oundation.
Read more
Dining companies, she said, should ensure that host communities benefit substantively from their
investments, and $ith no environmental damage from operations.
+rroyo also outlined her plan to set aside =0 billion for reforestation in 0661, saying the forests
mitigate the effects of the increasing frequency and intensity of typhoons brought on by climate
change.
Mining = &l+ing
Here in 4ambales, officials and ordinary fol# ali#e are still debating the financial benefits of mining.
3ut there seems to be little question among most of them that the surge in this province's version of
small2scale mining in the last t$o years has brought $ith it fast2rising floods during heavy rains, and
even a decline in the output of several farms.
This has threatened Sta. ru9's reputation as the province's rice granary. "n 3arangay Buisguis, a
group of $omen surveying a nearby river and a s$athe of ricefields after an afternoon do$npour ta#e
in a eerie scene that only fortifies the fear they no$ feel $henever the rains come: blood2colored
$ater rushing do$n from upstream, breaching riverban#s in some places, the mur#y $ater inundating
ricefields.
&hen there $as no mining, the river $as deep enough to ta#e in the rain$ater, comments one of
the $omen. (o$ the river overflo$s and the $ater goes directly to our ricefields.
Eust recently, Sta. ru9 $as among those hardest hit by Typhoon Li#o, $hich sa$ a state of calamity
being declared in the $hole of 4ambales. )arly last year, Buisguis $as also among the areas on
$hich Typhoon osme had the $orst impact. Residents had to $ade through $aist2high flood$aters
in dar#ness at the height of the typhoon, $ith several families see#ing refuge at a local daycare
center.
Buisguis residents concede that they have had floods before. 3ut they say that these days, the
$aters rise too quic#ly. Says one resident: The soil $as parched and osme brought %ust a little rain,
$hich can only mean that the mountain is no$ absorbing less.
"n fact, aside from scraping the forest cover and operating in the $atershed, some miners here have
also bulldo9ed their $ay through plots covered by the *)(R's ommunity23ased :orest
Danagement ,3:D-.
Ka*ote -ining
Fnder this program, people living in the community are given a portion of the forest to plant trees,
from $hich they are supposed to earn some livelihood. +ccording to Sta. ru9 Dayor 8uisito Darty,
portions of the 3:D area covering some 7,666 hectares in barangays Buisguis and Binabon have
been overrun by those $ho present themselves as small2scale miners.
There's kamote mining there, he says. &e've lost control because Bovernor ,+mor- *eloso #eeps
on issuing permits.
ommunity activist Dirador, $ho ventured into the 3:D scheme as $ell, also says at least three
mining firms are no$ intruding into the area that he and other people used to tend.
;f all barangays do$n the main mining site in Sta. ru9, Buisguis has the most to lose. "t has some
>66 hectares of productive ricelands, and is a huge player in palay trading in ;longapo ity and
=angasinan, $ith $hich it shares a border. "t is estimated that Buisguis alone produces an average of
/0,666 sac#s of palay each harvest time. =lanting can be as frequent as thrice a year in most areas.
"ng barangay namin, umunlad dahil sa agrikultura ,;ur community improved because of
agriculture-, says Buisguis 3arangay aptain Euvenar Dose. 0ala kaming ibang inasahan kundi
1agtatanim. 0alang yumaman dito dahil sa mina ,&e relied on nothing else but farming. (o one here
got rich because of mining-.
8omboy 3arangay aptain Randy Derced probably shares the same sentiments. &hen ="E catches
up $ith him, the rambunctious >@2year2old is busy $orrying over the possibility that should all those
holding mining permits G individual and corporate ali#e G operate simultaneously, his barangay's
ricefields $ould not fare $ell, since their dam lies close to a ma%or cree# upland.
4ig &ir- t*e cul(rit
+s it is, he is still upset over the siltation of his barangay's irrigation system. The culprit, he says, is
one of the big mining firms.
;n paper, there is no mining operation in 8omboy. 3ut li#e all other communities on the slopes of Sta.
ru9's nic#el2 and chromite2laden mountain range, it is a receptacle of all that may flo$ from mining
areas. 8omboy has @@6 hectares of irrigated farmland. T$enty hectares, ho$ever, rely on rain$ater.
Derced says that for days, he and a do9en volunteers had manually dug up a small reservoir to serve
as catch basin for the $ater requirement of the unirrigated 06 hectares. They later found their efforts
erased.
Kinalkal ng isang kom1anya ang kabundukan at doon sa hinukay namin itinambak ang bato at lu1a.
.aga%a yata sila ng daan ,;ne company leveled a portion of the hill for a road and dumped boulders
and dirt on our reservoir-, says Derced.
"t's bad enough that $henever it rains, nic#el2laden soil from the mountains flo$ into Sta. ru9's rivers
and cree#s and into irrigation canals, he says. The result: Namula ang 1alay namin, aya% magbunga
,;ur plants turned red and refused to produce grains-.
)ven officials of the local chapter of the uppity Rotary lub say they $ould rather that the capitol
focus on preserving the natural beauty of the to$n, instead of issuing one mining permit after another.
+fter all, Sta. ru9 has four islands off its coast, including the so2called SDiss Fniverse "sland' that
had been a shoot destination for contestants of an international beauty pageant in the @1C6s. Sta.
ru9 also has a /662hectare marine sanctuary $here giant clams are being raised.
The vie$, ho$ever, is often marred by the site of tons of nic#el stoc#piled at pier, as $ell as the
coast's blood2red $ater, courtesy of the mined mountain range.
N s!&et# engineering
The staining of bodies of $ater is the first sign that mining upstream is being carried out $ithout the
required safety engineering, e!plains Dining Tenements Danagement *ivision chief 8eo Easareno of
the Dines and Beosciences 3ureau ,DB3-.
"ndeed, he says, monitoring reports from 4ambales sho$ no environmental protection measures li#e
catchment basin, siltation ponds, and cover cropping. &ithout these, says Easareno, silt $ill settle in
irrigation canals, ma#ing these more shallo$.
The DB3 official indicates that these can be traced largely to the questionable one2month mining
permits the capitol has been issuing since 066C. :or one, he says, a big firm that pours considerable
capital into its business is more li#ely to protect the environment to ensure continued tenure in area.
:or another, allo$ing quic#ie mining operations only means the government may not be able to hold
anyone accountable should there be any damage to the environment.
The technology is there, says Easareno, but since it's e!pensive, if you are a fly2by2night miner, you
$ill not spend for it. 3odies of $ater $ill turn orange, and this is the first sign of environmental impacts
of mining.
He also says that any *)(R2funded $atershed pro%ect, including the one here in Sta. ru9, is off
limits to mining, and that any activity in such areas should first have clearance from the national
agency. if at all. "f there's no *)(R clearance, he says, it means somebody violated the la$ and it
should be loo#ed into.
+s#ed about the reforested area in the Sta. ru9 $atershed, Bovernor *eloso $ould only say that
inspecting it is the %ob of the *)(R. " don't $ant them to say that "'m meddling too much, he
clarifies. &hat " #no$ is that not a lot of trees gre$ there.
*eloso has said that he has set aside =7 million from the province's mining revenues for
reforestation.
C!n"t be!t -ining6
" $ill not go for any bargaining laban sa environment, the governor declares. -ayan ko iyan,
1robinsiya ko iyan, definitely ayokong masira. .usto ko ba iyong dumausdos at ma%alan kami ng
1alayan ,"t's my country, my province, " definitely don't $ant it destroyed. &hy $ould " $ant landslides
and the destruction of our rice fieldsM-
3ut he also says, To go against mining, is actually counter2productive. Para tayong si "dan at si Eba
,&e're li#e +dam and )ve-. &e have to face the challenge, but ma#e it intelligent.
:or his part, Sangguniang =anlala$igan member Samuel +blola, $ho heads the provincial board's
environment committee, says he is una$are of the $atershed pro%ect in Sta. ru9, noting that he $as
elected only in 066@. 8i#e the governor, he says $hatever happens to it is the *)(R's loo#out, since
it is a national government pro%ect.
3ut it seems mining in a $atershed is not an issue to +blola, especially $hen it's on a mountain rich
$ith mineral ores. He argues, ;indi tutubuan ng 1uno ang bundok. Tanggalin mo muna ang minerals
at ka1ag 1uro lu1a at 1utik na iyan, mabubuhay ang mga kahoy ,Trees $on't gro$ on the mountain.
Strip it of its minerals first and once it's all soil and mud, then the trees $ill flourish-.
That may not be a vie$ shared by many local officials here in Sta. ru9, especially $hen they have to
deal $ith angry constituents $ading in flood$aters or $ailing about failed crops. "t has not helped that
mining permit2holders have not done much to endear themselves to residents here.
:or instance, the day after Typhoon osme slammed through 4ambales, the first order of priority of
mining firms $as to ma#e sure the road to the pier, $hich crosses the main road and the poblacion,
$as immediately cleared of debris, even as residents dealt $ith the damage the typhoon caused.
Truc%s:c*%e+ r!+s
*uring typhoon2free days, truc#s filled $ith nic#el bloc# local roads. ;nce there is a medical
emergency, $e may not be able to reach the hospital in time because the roads are cho#ed $ith
those truc#s, says one resident. He also points to the possible health ha9ards posed by nic#el2laden
dust, noting that many of his to$nmates are already complaining of respiratory problems.
3ut standing up to mining firms could also be ha9ardous to one's health. 8omboy 3arangay aptain
Randy Derced, found this out after ma#ing #no$n his opposition to mining public one too many times.
He lets on that he $as once #idnapped for his opposition to mining, but he refuses to elaborate.
Some residents in his barangay $hisper that Derced $as mauled before he $as released.
+ high2ran#ing provincial official e!plains, )i Lap Derced kasi hinaharang ang trak ng dala%ang
kom1anya na ang nasa likod ay isang malaking 1amilya sa 1robinsiya ,Lap Derced had ta#en to
bloc#ing truc#s of t$o companies that had a prominent family in the province as their common
o$ner-.
To be fair, not everyone in Sta. ru9 is against mining. Buisguis 3arangay aptain Dose admits that
some of his constituents $elcome it, especially those $ho have no land to till. +fter all, mining does
provide employment to uns#illed $or#ers.
Dose himself has a confusing stand on mining. &hile he bats for a moratorium on permits to allo$ a
study on the impact of mining, his office had as#ed mining firms for various forms of aid to his
barangay, li#e providing scholarships to students.
;ne elderly resident here has been more steadfast in her belief that Sta. ru9 is better off $ithout
mining, so much so that she voted for *eloso in the 066C polls because, she recalls, he had promised
to put a stop to mining in this to$n.
The resident, $ho requests anonymity, says *eloso did as he promised G at least for a month after
the elections. &hen it became apparent that the ne$ governor $as reneging on his campaign pledge,
the resident sought him out to remind him about it.
Nagalit ,He got mad-, says the $oman, recalling the governor's reaction. )abi niya ako na lang
da% kaya ang mag<gobernador ,He said maybe " should be the governor-. ) PCIJ, August !!"
Arr# 0!ils COA Au+it$ 0!irness & Presi+enc#"s 4%s 7+ubt&ul"
by MALOU MANGAHAS
UNLI>UI)ATE) CASH advances, loans $ithout records, donations diverted to uses not prescribed
by donors, understated e!penses, and overstated accounts, in the hundreds of millions of pesos, all
sourced from ta!payersT money.
These irregular transactions in clear breach of government accounting and auditing rules mar#
financial transactions in the ;ffice of the =resident ,;=- under Bloria Dacapagal +rroyo in 066C,
according to ommission on +udit ,;+- report, a copy of $hich $as obtained by the =hilippine
enter for "nvestigative Eournalism ,="E-.
The report on the presidency for 066C contained @@ qualified comments and observations on these
erroneous entries H mostly the same errors ;+ had noted in its 066? audit of the same office. ;+
also pointed out that of the @@ audit recommendations it made in the 066? audit, only four $ere fully
implemented, three partially implemented, and four not implemented at all by DalacaUang.
Thus, for the second year in a ro$, ;+ rendered a qualified opinion on the fairness of the
presentation of the financial statements of the ;=.
The ;= =roper consists of the =rivate offices, the =residential +ssistant System, the )!ecutive
;ffices, the Beneral Bovernment +dministration Staff, the "nternal +udit Service Fnit, the 8ocally
:undedK:oreign +ssisted =ro%ects, and the ;ther )!ecutive ;ffices. The ;= also directly supervises
7< other e!ecutive offices, agencies, commissions, and committees that $arrant the special attention
of the =resident.
The ;= #itty is obviously substantial. "n 066C, the ;= received total cash inflo$s of =/./< billion, or
@/ percent more than the =0.11 billion it got in 066?. ;f the 066C figure, =0./@ billion came from
notices of cash allocation from the *epartment of 3udget and Danagement. The ;= collected
another =@.6? billion as its share in the net earnings of the =hilippine +musement and Baming
orporation ,=agcor- and the =hilippine harity S$eepsta#es ;ffice ,=S;-.
The ;= li#e$ise raised service income of =1./ million, interest income of =>.67 million, and
miscellaneous income of =/./ million.
;+ said that the ;='s total cash outflo$s reported in 066C amounted to =0.?C billion, or @/ percent
more than the =0./? billion in 066?.
NON:EMPLO?EES GOT MONE?
&here those monies $ent can be gleaned from the ;+ audit H some$hat. "n its latest audit of the
presidency signed by ;+ *irector "A 3ato S. +li Er., the agency said that as of *ecember /@, 066C,
+rroyoTs DalacaUang had:
:ailed to liquidate a total of =?/0.1 million of cash advances and receivables from officers,
employees and other persons, on account of foreign and domestic travels that the president
made, typically $ith a large retinue of political deputies and allies. ;f the total, =71> million
represented cash advances granted to persons $ho are not employees of the ;=.

*iverted donations totaling =/C./ million to e!penses outside of intended purposes,
contrary to provisions of the Beneral +ppropriations +ct of 066C.
)rroneously remitted and deposited collections on income from ;= 3us Service :ares ,=@.<?
million collected from DalacaUang employees- and entrance fees for the =residential Duseum
,=@.C> million- in a Special +ccount in the 3ureau of the Treasury ,3tr-, and not in the
unappropriated surplus of the Beneral :und.
Branted loans from the =resident's Social :und ,=S:- using money from =agcor in 5 066/
and Eanuary 066> totaling =0?1.7 million $ithout complete records.
)rroneously classified collections and disbursements on electricity and $ater e!penses of
other agencies and government2o$ned and 2controlled corporations in the boo#s of accounts,
resulting in the understatement of ;ther =ayables account by =>.@ million, and overstatement
of the *ue to ;ther (B+s and *ue to B;s accounts by =>.@ million and =0@,>00.0/,
respectively. ,(B+s are national government agencies and B;s are government2o$ned
and 2controlled corporations.-
:ailed to reconcile physical count of office supplies, as $ell as of property and plant
equipment, $ith balances per boo#s, resulting in the overstatementKunderstatement of various
supplies and casting doubt on their reliability.
:ailed to provide property, plant and equipment $orth a total of =1@>.< million $ith
depreciation, thus understating both the accumulated depreciation and depreciation e!pense
accounts.
)nrolled balances of =@<?.C million as *ue to ;ther (B+s and =>0.6C million as *ue to
;ther B;s accounts that remain doubtful because of unreconciled beginning balance of
=@<@.1 million, and =>0.67 million, respectively.
)r!&t L!1 A&&ir-s P!tent Rig*ts & )rug 0ir-s
by ALEC5S P3 PA4ICO
IT ;ON"T be over even after the lady signs. +nd even after she signs it, the fight for popular access
to affordable medicines $on't be over.
+ll that the cheaper medicines bill needs to be enacted into la$ is the signature of =resident Bloria
Dacapagal +rroyo. 3ut some legal e!perts lament that as enrolled, the bill passed by ongress bears
imperfections that effectively affirm the patent rights of big pharmaceutical companies over public
health, a ma%or hurdle to bringing do$n drug prices.
+nd $hile the bill introduced amendments to the =hilippines's intellectual property la$, the $ea# and
flabby $ording of some provisions could challenge implementation, and #eep the promise of cheaper
drugs loc#ed in litigation.
8a$yer )lpidio =eria, for one, says that as soon as +rroyo signs the bill into la$, the battle shifts to
the drafting of its specific implementing rules and regulations or "RR. +nd that, he says, should teach
public2health advocates to study intellectual property issues in the pharmaceutical sector more
%udiciously.
=eria, an associate of the Third &orld (et$or# ,T&(-, one of the nongovernmental organi9ations
that had supported the Senate version of the bill, says that the drafting of the la$ offers one lesson: "t
is dangerous to leave the debate on intractable intellectual property issues to la$yers and
policyma#ers alone.
The ,bicameral- debates only proved the esoteric nature of intellectual property, $hich ma#es it
dangerous to be left to la$yers and policyma#ers, says =eria. The ,"ntellectual =roperty- ode
amendments $ill no$ have to be scrutini9ed closely so that its imperfections might be augmented by
the "RR.
Throughout the debate, public2health advocates and legal e!perts had $elcomed the inclusion of
amendments to the country's intellectual property la$ in the final bicameral draft of the affordable
medicines bill.
Fndersecretary +le!ander =adilla of the *epartment of Health ,*oH- himself says that $hile the bill
lost some of the provisions his department had championed, $hat is important no$ is that the la$
$ould contain Vthe more important patent fle!ibilities.
The global nonprofit organi9ation ;!fam "nternational also says that, if applied by the government,
the "= amendments Vshould help ensure that patent privileges of drug companies do not get in the
$ay of promoting and protecting public health through affordable medicines.V
5et the li#es of =eria $orry that the simplistic debates on price regulation and the Benerics +ct
amendments had obscured the bill's "= provisions. +s a result, =eria notes, the "= amendments $ere
not fine2tuned and rid of their inherent $ea#nesses.
Some legal e!perts no$ fear that despite its promise of affordable medicines, the la$ $ould face
difficulties in its implementation, in large part because pharmaceutical companies could ta#e
advantage of the loopholes in the patent2related amendments.
SCU00LES O/ER @GENERICS:ONL?@
Fp until the bill's ratification by ongress in late +pril, the bicameral debates had focused mostly on
the provision of House 3ill 0<>> that said only the generic names of medicines $ould appear on
medical, dental, and veterinary prescriptions. This raised a ho$l among doctors $ho even threatened
to declare a Vhospital holidayV if the stipulation H $hich $as among those being pushed by the health
department H $as not removed.
8ater, the legislators $restled over the House of Representatives's proposal to create a drug price
regulatory board. This further delayed the passage of the bill, $hich had been certified as urgent by
the +rroyo administration $ay bac# in 066@.

"n the end, the generics2only provision $as dropped and the price2regulation board $as replaced
$ith a price monitoring and control mechanism that places the sole authority to impose price ceilings
on the =resident, upon recommendation of the health secretary.
There $ere loud grumbles about a $atered2do$n bill, but many also too# comfort in the retention of
several #ey provisions, including those on intellectual property.
V" $ould have been happier $ith the inclusion of the generics2only provision,V says +#bayan party2list
Rep. +na Theresia Hontiveros23araquel. 3ut she is nonetheless pleased that the "= ode
amendments, $hich $ere the intent of the original bill she filed in the House, $ere adopted.
"reneo Balicia, former deputy director general of the "ntellectual =roperty ;ffice ,"=;-, also says he
can live $ith the changes in the price control and generics provisions #no$ing ho$ VpoliticallyV
sensitive these issues are, as long as his main advocacy, the "= amendments on patent reforms, are
intact.
V(o doubt, he says, these $ill help immediately bring about the lo$ering of prices of patented
medicines via the parallel importation provision, and in the long term via the early $or#ing and ne$
use provisions.V
P*ili((ine N!tin!l )evel(-ent
Current Gr1t* Peri+ Prvi+es O((rtunit# t T!c%le )-estic
Issues
W Bary &. )lliott
:eb ?, 066<
+ gro$ing B(=, relative political stability, and commitment of resources to social development are
yielding progress to$ard the F(Ts eight Dillennium *evelopment Boals.
The =hilippines has a history of erratic economic gro$th, but is currently e!periencing a period of
macroeconomic stability and a B(= gro$ing 7R or more for the last 7 years.X@, 0Y (ational
development, though, means more than increasing $ealth as measured by B(=, B(= per capita, or
other such indicators, and includes social development alongside economic gro$th, and even
development of political systems.
)conomic health and gro$th are generally required to commit sufficient resources to$ard social
development. This commitment of resources is a matter of national political $ill, so political systems
are germane to national development. +dditionally, political stability has an impact on foreign and
domestic investment, and so may be prerequisite for a healthy, gro$ing economy. Thus, economic
gro$th, social development, and political stability are ine!tricably interrelated.
"nstead of using some evolving gauge for Third &orld nations, lesser developed countries, or ne$ly
industriali9ed countries, e!amining =hilippine progress to$ard the Fnited (ations' eight Dillennium
*evelopment Boals ,D*Bs-, $ith target date 06@7, gives a snapshot of development. :or reasons of
space, only four are considered here.
Boal 0. +chieve universal primary education ,)nsure that all boys and girls complete a full
course of primary schooling.- The country lags the D*B target on elementary education,
according to a recent (ational )conomic and *evelopment +uthority ,()*+- report, but the
*epartment of )ducation has implemented a :ood2for2School =rogram to entice poor parents
to start their children in school. Studies sho$ that children $ho enroll in day care centers and
pre2schools usually finish grade school. X/Y
Boal >. Reduce child mortality ,Reduce by t$o thirds the mortality rate among children under
five.- "n *ecember =resident +rroyo announced, OX+Yccording to the Dillennium
*evelopment Boals monitor, the child mortality rate has been reduced from >6Oto /0 for
every @,666 live births, and $e're very much on trac#Oto reduce it to 0C for every @,666 live
births by 06@7.X>Y
Boal 7. "mprove maternal health ,Reduce by three quarters the maternal mortality ratio.- ()*+
reported the country lagged in efforts to achieve D*B targets on maternal mortality. +s a
remedy, the =resident ordered obstetrics and gynecology services in all hospitals, especially
for the poorest patients, and inclusion of childbirth in health insurance coverage. X/Y
Boal ?. ombat H"AK+"*S, malaria, and other diseases ,Halt and begin to reverse the spread
of H"AK+"*S, and the incidence of malaria and other ma%or diseases.- Dalaria is one of the
ma%or diseases afflicting :ilipinos, and is found in C0 of the C7 provinces. Fniversity of the
=hilippines' *epartment of =arasitology is using remote sensing ,RS- and geographic
information system ,B"S- technologies to determine environmental factors supporting mosquito
populations, $hich spread malaria and dengue fever.X7Y 3enguet province $as recently
declared malaria2free upon the recommendation of the &orld Health ;rgani9ation and the
=hilippine *epartment of Health, and incidence of dengue fever is being reduced in endemic
areas.X?Y :rom Eanuary to September 1, 066C, there $ere @<< recorded deaths from @>,1@7
cases, a >0R drop from the /@? deaths and 07,?<6 cases recorded in the same period of
0667. XCY
"t is interesting that the eight Dillennium *evelopment Boals include economic and social goals,
$ithout any mention of political goals. Harold 8ass$ell's definition of politics as $ho gets $hat, $hen,
and ho$ reminds us of the role politics play in resource allocation necessary for national
development. This current period of gro$th provides an opportunity to tac#le domestic issues such as
$idespread poverty and inadequate social services $hich, if not addressed, could threaten political
stability, thus disrupting the economy, resulting in further retarded development. +lthough recent
=hilippine progress is cause for optimism, various geographic, economic, political, and socio2cultural
conditions still present serious challenges to national development.
(eferen&es
@. =hilippines: "nvigorating Bro$th, )nhancing "ts "mpact, &orld 3an# Report (o. /100?2=H, Day @<, 066C, p. @0, Table @ Selected )conomic
"ndicators
0. 066C economic gro$th seen at ?.1R2C./R, =hilippine "nquirer, *ec 1, 066C
/. =resident $elcomes ()*+ report on R=Ts progress on Dillennium *evelopment Boals,
Republic of the =hilippines official $ebsite, Eanuary <, 066<
>. =BD+ lauds nutrition industry for bringing do$n infant mortality rate, Republic of the =hilippines official $ebsite, *ecember @C, 066C
7. Space and digital technology against malaria, Republic of the =hilippines official $ebsite, +ugust /6, 0667
?. =BD+ declares 3enguet province malaria2free, Republic of the =hilippines official $ebsite, +pril @C, 066?
C. *uque urges public to #eep guard up against dengue, other diseases, Republic of the =hilippines official $ebsite, September @7, 066?
The &o1yright of the arti&le Phili++ine %ational De'elo+*ent in Phili11ines is o%ned by .ary 0. Elliott. Permission to
re1ublish Phili++ine %ational De'elo+*ent in 1rint or online must be granted by the author in %riting.