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    CONDITIONAL CASH TRANSFER

    Conditional cash transfer (CCT) programs aim to reduce poverty by

    making welfare programs conditional upon the receivers' actions. The government only

    transfers the money to persons who meet certain criteria. These criteria may include

    enrolling children into public schools, getting regular check-ups at the doctor's office,

    receiving vaccinations, or the like.

    Conditional cash transfer programs have been regarded as an effective way to

    reconcile safety netsor more generally social assistance policieswith investments in

    human development benefiting the poor. Simply handing over cash to poor families willnot be sufficient to tackle poverty in the long run. Hence, the idea is to transfer cash to

    the poor on condition that the poor will commit to empower themselves and help bring

    future generations of poor families out of poverty. There are several key characteristics

    of CCT programs. First, CCT programs are targeted to poor or extremely poor

    households and have a positive gender bias, since the cash benefits are usually

    addressed to the female head of the recipient households. Second, some programs

    such as Progresa include a nutrition component that provides cash transfers and

    nutrition supplements to children, and to pregnant and lactating women. Third, cash

    transfers vary with the number of children, and the size of these benefits changes with

    the childrens age and gender. Fourth, to encourage greater school attendance for girls,

    higher transfers are paid for girls than for boys. Fifth, transfer amounts are greater for

    children at the secondary For instance, Brazils Bolsa Escola transferred monthly

    payments to poor households with children aged 68, on condition that they met at least

    85% of school attendance. The transfers were paid directly to mothers. school age

    group than those at the primary school age group because adolescent children are

    expected to have higher opportunity costs of attending school, particularly for poor

    families. The main requirement of CCT programs is that recipients commit to

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    undertaking certain behavioral changes in return for the transfers, such as enrolling

    children in school and maintaining adequate attendance levels, getting prenatal and

    postnatal health care treatments, and encouraging young children to undergo growth

    monitoring, immunization, and periodic checkups. A presumption embedded in the CCT

    approach is that the supply of social services for education and health is in place and

    that stimulating demand through income transfers is necessary to induce major changes

    in human capital investment. This explains why the success of CCT programs in some

    countries is no guarantee that they can be reproduced in others with the same

    performance. For instance, in many developing countries, children, particularly in rural

    areas, face supply-related problems, i.e., there are not enough schools, classrooms, orteachers to offer adequate education to those who need or want them. In such

    circumstances, pouring resources into a CCT program may not be able to achieve the

    educational objective. Thus, in low-income countries with limited social service

    infrastructure, CCT programs should integrate demand-side with supply-side issues in

    order to avoid policy inconsistency and resource wastage.

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    IS CONDITIONALITY NECESSARY?

    For countries considering a CCT program, an important question is whether it is

    necessary to impose conditionality. One stream of arguments supporting conditionality

    is that when the programs goal is to raise the utilization by poor children of available

    education and health services, there is justification for imposing conditions on

    household behavior, and the gains from the conditionality may be outweighed by the

    administrative costs of monitoring such. There have been CCT programs with a supply-

    side component. These have been implemented in low-income Latin American

    countries particularly in Red de Proteccion Social in Nicaragua and Nicaragua andPrograma de Asistencia Familiar in Honduras, where besides the demand component

    of the cash transfer, there were also investments in infrastructure. A part of the

    programs budget was set aside for building schools and health centers as well as

    improving school conditions. Corollary to this argument, conditionality can be a means

    to achieve socially optimal levels of investments in human capital. When households

    make decisions about childrens schooling, they tend to overlook the social benefits

    derived from educating children, particularly girls. As such, there is underinvestment in

    human capital by private households, which could be increased by conditionality. The

    other stream opposes the idea of conditionality based on the costs and administrative

    requirements, and prerequisites on adequate access to education and health services.

    Another concern often raised comes from the view that CCT can be perceived as

    demeaning because the government imposes conditions on the poor people

    irrespective of their preferences. The foregoing arguments provide much scope for

    future research. Moreover, continued experimentation with program design is called for

    to find out a more cost-effective approach to implementing the CCT.

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    IMPACTS OF CCT PROGRAMS: WHAT DO EVALUATIONS SAY?

    Rigorous evaluations (often built into the programs themselves) show that many,

    but not all, CCT programs have a positive effect on education and health outcomes

    ( Schady and Araujo 2006). Favorable education outcomes were drawn mostly from the

    experience of Progresa as evaluated by the International Food and Policy Research

    Institute. The evaluation of Progresa showed that there was a significant increase in the

    enrolment of boys and girls, particularly the latter. The program also increased

    enrollment in secondary schools by 6 and 9 percentage points for boys and girls,

    respectively. For girls, who often dropped out before secondary school, the transitionrate to secondary school rose by 5 percentage points. Besides Progresa, CCT

    programs in other countries (e.g., Colombia and Turkey) have been successful in

    improving enrollment rates, particularly at the secondary level. However, such programs

    had relatively little impact on school attendance rate, on school achievement, or in

    attracting dropouts to schools. These elements should be integrated into the design of

    the programs or through complementary programs. For countries where pre-program

    enrollment rates are extremely low, the impact of CCT programs on enrollment rates is

    expected to be greater. This is true in Colombia, Mexico, and Turkey where CCT

    programs hardly increased enrollment rates at the primary level because these

    countries already had high primary enrollment rates before the program. On the other

    hand, CCT programs in Bangladesh and Nicaragua significantly raised primary school

    enrollment by 9 and percentage points, respectively. In these cases, the programs were

    particularly effective because both countries had a large proportion of children who were

    not enrolled in primary school. Conditional cash transfer programs have also had

    significant impacts on health and nutrition for both adults and children. Children

    receiving Progresa have a 2% lower incidence of illness, and adults reported a 9%

    decrease in sick or disability days. In Honduras, utilization of health services among

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    young children increased by 52 percentage points. A number of CCT programs show a

    positive correlation with improved nutritional status among children, i.e., increased

    height. In Honduras, however, no positive nutritional impacts were observed. This

    occurred because of problems associated with program implementation. Experience

    suggests that sufficient and correct information between the program and the

    beneficiaries is critical to ensure the full impact of the program. Conditional cash

    transfer programs have a strong gender focus. Besides substantial increases in school

    enrollment rates among girls, CCT programs in Mexico and Nicaragua have also found

    positive impacts on attitudes toward educating girls in general. Studies in eastern

    Turkey suggested that sociocultural biases against schooling for girls played a biggerrole than cash incentives. This indicates the need for complementary programs to

    overcome sociocultural barriers. Furthermore, CCT programs have contributed to

    increasing womens status within the household because the program is directed to the

    female head of the recipient households. As such, women play a major role in

    intrahousehold resource allocation and in making important decisions within the

    household. The impact of CCTs on poverty varies by programs, with Progresa yielding

    the most significant results. Bourguignon and others find very little impact on poverty

    and inequality for Bolsa Escola due to the small amount of transfers (Bourguignon,

    Ferreira, and Leite 2002). In the long run, the translation of higher educational

    attainment into higher earnings cannot be taken for granted because of the countries

    absorption capacity of skilled labor, and the general rates of return to education. This

    could be a major concern in developing countries, where returns to education

    (particularly for primary education) in the rural sector are low, and where the bulk of the

    problem of school attendance exists.

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    CONCLUSIONS

    For countries considering interventions through CCT programs, a few

    recommendations emerge from the brief. First, conditionality plays an imperative role in

    CCT programs. Cash transfer, by itself, will not suffice to increase school attendance

    significantly, which means that conditionality would have to be introduced, and possibly

    also, the quality of schooling improved when administering any cash transfer programs

    aimed at a sustained reduction in poverty. Second, it is also imperative to ensure

    ongoing monitoring of operations and rigorous evaluation of effectiveness of CCT

    programs. Third, good governance is an important component of a CCT program. As isthe case for all effective social safety nets, a CCT program should be transparent in

    operation to encourage learning, minimize corruption, and ensure that beneficiaries and

    the wider population understand how the program functions. Fourth, political support at

    high levels for the program is one of the main issues to be considered in implementing a

    CCT program. Such political supports are critical as a CCT program requires

    coordination across different sectors in the government, particularly education, health,

    and social welfare. In addition, policymakers face many challenges and tradeoffs in

    designing effective socialprograms such as a CCT. On one hand, the emphasis on

    targeting and conditionality helps maximize the programs impact and effectiveness.

    However, targeting and monitoring can increase the cost per beneficiary, which reduces

    the programs efficiency. On the other hand, designing a program with a weak or

    nonexistent targeting strategy not only reduces the cost per beneficiary but also leads to

    leakages to the nonpoor, driving down its impact and effectiveness. Finally, to ensure

    success, complementing CCT programs with other components of social policy may

    prove meritorious. Complementary programs that can manage the supply side of

    services and accommodate the heterogeneity of targeted household behavior will

    enhance the effectiveness of CCT programs.

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    COMENTS / REACTIONS for CCT

    We know that poverty is the large problem of our country. Of course the Aquinos

    administration creates a program to fight poverty. Conditional cash transfer (CCT)

    programs aim to reduce poverty by making welfare programs conditional upon the

    receivers' actions. Its a nice program and it helps a lot. I think that we can also

    encourage parents especially those mother with more than 3 number of children to

    undergo the family planning to prevent them to get pregnant which giving tight budget

    for their family which sometime expenses is more than they earned. They have their

    duty to send their children to school. And I believed that Philippines have a huge

    unused land which we can utilize. Poverty has been always been the issue in our

    country.

    Government can make use of idle land in nearby provinces and relocate poor

    family by giving them small lot and teach this poor family by planting their backyard like

    vegetable or raising chicken or hog, which can be sufficient enough for their daily

    means of living and feed their family instead of going to crowed metropolis area.

    At the same time the government must also build basic facility for resident like

    school, church, park, electricity, water etc in the park. But first I think the Aquinos

    administration must focus on source of power we need to create more power at less

    cost but utilizing hydro, solar, wind and geothermal power.

    All of us hope that conditional cash transfer programs can address both short

    and long term poverty; several countries have introduced or expanded such programs in

    recent years. Conditional cash transfers are necessary but not sufficient forimproving health. Good government -funded health care is essential, as are schemes

    which address social determinants of health. The use of conditional cash transfers is to

    increase investment in human capital has generated considerable excitement in both

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    research and policy forums. Conditional Cash Transfers as an immediate response of

    the Philippine Government to the beleaguering effects of poverty, it also presented

    another reality that cannot be obscured away from discussing such societal problem,

    and that is the susceptibility of this stimulus program to be exploited as an instrument

    for corruption. This program of government is very helpful to the peoples of the society

    especially to the poor families in order to survive in everyday life. It can also increase

    literacy in our society. But it is difficult to understand the fact that some politician holds

    the funds to supply those families who need this assistance. Did they know that the

    aim of this program is the reduction of poverty and not to increase graft and corruption

    in our society? Even though conditional cash transfer cannot totally end poverty but itcan greatly reduce the effect of poverty in our country. A conditional cash transfer

    program is justifiable as a quick and effective way of easing hunger among the poor and

    the marginalized that have fallen through the cracks of a ruthless market economy. It

    can be a first step towards reinserting them into the productive circuits of a volatile

    economy, but it cannot be the solution to poverty.

    This conditional cash transfer helps a lot for every family it helps a lot for every

    family in our country, because it helps them to sustain their daily needs and satisfiestheir hunger. This program is so important especially for those poor families because

    they can buy foods for them to eat three times a day. We know that this program has its

    disadvantage too because each family will be dependent to the government, and these

    family will not go find a job because they know that somebody will give them money. But

    this program give chances to the poor families to have a good life and this family

    should not be dependent to the financial support that the government has given to them

    they must do their part, they should work hard for them to have a happy and complete

    family.

    According to the 1987 Philippine constitution article 2 section4 in the first

    paragraph the prime duty of the government is to protect and serve the people. Poverty

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    has been always been the issue in our country. Many consider it as the root cause of

    the other problems the people are facing with. As the Section 9 implies that The State

    shall promote a just and dynamic social order that will ensure the prosperity and

    independence of the nation and free the people from poverty through policies that

    provide adequate social services, promote full employment, a rising standard of living,

    and an improved quality of life for all. As the duty of the Aquinos administration they

    formed a short-term strategy which called CCT (conditional Cash Transfer) program in

    fighting the poverty in the country as well as investing more in education and health

    care is their long term solution. That CCT program of the administration was great

    strategy or first step to help the people experiencing poverty. This program providesassistance to poor households and invests in the future of their children to help their

    families rise from poverty by having them go to school regularly and providing them with

    proper health care and nutrition. The program is not totally the solution in the poverty in

    the country but it is reducing the cycle poverty. The beneficiaries are encouraged as

    well as to their corresponding responsibilities in the development activities in their

    communities. The parent beneficiaries have the duty to send their children in schools

    and have the opportunity to pursue their dreams and someday break the chain of

    poverty. The program has big possibilities to improve ones life. The people can be

    motivated to change their behaviors related to health and education. People motivation

    for their enhancements and continuous implementation for the betterment lives of the

    poor. To sum up the administration have been continuous succeeding on their goals to

    promote human capital development among poor families, especially children to

    breakdown the cycle of poverty. The objectives must been consistently in the minds of

    the people who is responsible in this program which are to improve the health condition

    of the children age 0-14 years old, To improve the maternal health of pregnant and

    lactating mothers, to raise consumption of nutrient dense foods among poor

    households, to increase enrollment / attendance of children in elementary and high

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    school. I hope that this cash program for the poor will be directly given to them and not

    the people who are taking advantage in the situation like this.

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    THE HELICOPTER SCAM

    The two PNP Light Police Operational Helicopters (LPOH) were bought for thePNP Special Action Force as part of the Capability Enhancement Program 2008. But

    the units were found to have had 500 hours worth of flying hours even before they were

    sold in 2009. The Senate will look into alleged misrepresentations in the P105-million

    purchase of light operational helicopters by the Philippine National Police in 2009 for its

    elite Special Action Force (SAF) unit.

    Senator Panfilo Lacson and Senate Blue Ribbon Committee Chairman Teofisto

    Guingona III filed Senate Resolution 518 to take a closer look at the acquisition of the

    Light Police Operational Helicopters (LPOHs) from Manila Aerospace Products Trading

    Corp. (MAPTRA).

    By intentionally misrepresenting the helicopters they were selling as brand new

    and likewise, by intentionally accepting the same as such, both MAPTRA and the PNP

    may have entered into an anomalous contract which not only gave unwarranted benefits

    or advantage to a party but also one which is manifestly and grossly disadvantageous to

    the government in violation of Section 3 (E) and (G) of Republic Act 3019, otherwise

    known as the Anti-Graft and Corrupt Practices Act, they said in their resolution.

    On May 8, 2009, the PNP negotiation committee started talks with MAPTRA for

    one equipped LPOH and two standard LPOHs for P105 million --already inconsistent

    with the PNP-SAFs requirement of three equipped LPOHs.

    Following the failure of the negotiation, then SAF head Chief Supt. Leocadio

    Santiago Jr. modified the requirements from three equipped LPOHs to one equipped

    and two standard LPOHs.

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    On July 9, 2009, the PNP negotiation committee recommended the award of the

    contract to MAPTRA, which it described as a legally, technically and financially

    capable supplier that had been engaged in the business for so many years. Then

    PNP chief Director General Jesus Verzosa approved the supply contract to pay

    MAPTRA P104.985 million.

    PERSONS INVOLVED IN HELICOPTER SCAM:

    First Gentleman Jose Miguel Mike Arroyo

    *Owner of the two, five year-old helicopter sold as brand new to the Philippine

    National Police.

    Jesus Verzosa

    *Former PNP chief who approved the P104.9 million purchase,

    Ronaldo Puno

    *DILG Secretary,presidential adviser on political affairs in a concurrent capacity.

    Conrado Sumanga, Jr.

    *Former National Police Commission Staff Service, chief of installation and

    logistic service

    Hilario de Vera

    *President of Manila Aerospace Products Trading Inc. (MAPTRA), LionAir Inc.

    Police Chief Superintendent George Piano

    *Head of the acceptance inspections committee

    Senior Superintendent Luis Saligumba

    *Director of the Police National Training Institute

    Jefferson Soriano

    *Retired PNP deputy chief PNP for operations

    Romeo Hilomen

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    *Former director for comptrollership

    Luizo Ticman

    *Former director for logistics

    Ronald Roderos

    *Former director for Research Division

    Renato Sia

    *Asian Spirit Inc. director

    President Archibald Po

    Police Director Leocadio Santiago Jr.

    Police Chief Superintendent Herold UbaldePolice Senior Superintendent Lurimen Detran

    Senior Superintendent Nolan Antonio

    Police Senior Superintendent Edgar Pataan

    Police Senior Superintendent Crisostomo Garcia

    Police Senior Superintendent Mansue Lukban

    Police Superintendent Ermilando Villafuerte

    Police Superintendent Henry Duque

    Retired Police Superintendent Claudo Gaspar

    Retired Police Superintendent Larry Balmaceda

    Police Chief Inspector Maria Josefina Recometa

    These persons are subjected to a plunder case for violating

    RA.#9184, RA.# 3019 and Articles 171,172 and 208 of the Revised Penal

    Code.

    Republic Act No. 9184

    An act providingfor the modernization, standarization and regulation of the

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    procurement activiti-es of the government and for other puroposes.

    REPUBLIC ACT No. 3019

    Anti-graft and corrupt practices act.

    Revised Penal Code of the Philippines Art. 171

    Falsification by public officer, employee or notary or ecclesiastic minister.

    Revised Penal Code of the Philippines Art. 172

    Falsification by private individual and use of falsified documents.

    Revised Penal Code of the Philippines Art. 208

    Prosecution of offenses; negligence and tolerance.

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    PNP INVESTIGATION

    The police filed a plunder complaint against Jose Miguel "Mike" Arroyo, husband

    of former President Gloria Macapagal-Arroyo, for allegedly conspiring to sell to police

    two helicopters he owned but passed off as new.

    In a complaint filed before the Office of the Ombudsman (Ombudsman), Police

    Supt. Edgar Cabrera Danao accused Atty. Arroyo of plunder with predicate crimes for

    violation of Republic Act No. 9184, otherwise known as the Government Procurement

    Reform Act; R.A. 3019, or the Anti-Graft and Corrupt Practices Act; and Articles 171,

    172 and 208 of the Revised Penal Code (RPC) for allegedly having amassed wealth in

    the amount of at least P50 million.

    Danao filed the complaint in his capacity as nominal complainant as he is the

    current chief of the Anti-Fraud and Commercial Crimes Division of the PNP-Criminal

    Investigation and Detection Group (CIDG).

    Also charged were former Department of Interior and Local Government (DILG)

    Secretary Ronaldo Puno, former PNP chief retired Director General Jesus Verzosa,

    Archibald Po, Hilario de Vera and several others. Records showed that Po and his

    employee De Vera, now acting as president of the Manila Aerospace Products Trading

    Corp. (MAPTRA), originally hatched the plan to pass off the old helicopters as brand

    new to the PNP.

    In his complaint, Danao said "they (the accused) all knew that this conspiracy will

    never succeed without the indispensable cooperation of the Napolcom (National Police

    Commission) and the PNP through its key procurementofficers."

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    Samuel Pagdilao, head of the police Criminal Investigation and Detection Group

    (CIDG) that filed the complaint, documents and testimony from a Senate investigation

    showed that the president's husband owned the helicopters when they were sold to

    police.

    In 2009, the Philippine National Police (PNP) purchased what they thought were

    three brand new Robinsons R44 Raven 1 helicopters for P105 million, but two were

    later discovered to have already been used.

    Along with the former presidential spouse, the police also filed charges against

    former Interior and Local Government Secretary Ronaldo Puno, former national police

    chief Jesus Verzosa.

    Versoza approved the deal while he was PNP chief while Puno was head of the

    National Police Commission that changed specifications for the helicopter purchase.

    Charges were also filed against other retired and active duty officers and civilians

    while former president Arroyo, now a member of the House of Representatives, was still

    in office two years ago.

    Also charged were Chief Superintendent Luis Saligumba, Senior Superintendent

    Job Nolan Antonio, Senior Superintendent Edgar Pataan, Senior Superintendent

    Crisostomo Garcia, Senior Superintendent Mansue Lukban, Superintendent Ermilando

    Villafuerte, Superintendent Henry Duque, retired superintendent Claudo Gaspar, former

    superintendent Larry Balmaceda, and Chief Inspector Maria Josefina Recometa.

    Recometa testified that she did not get to see the actual helicopters but only

    looked at pictures of them. She said she failed to join the inspection team because she

    had to take care of a personal matter. She signed the inspection report, however.

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    Former Special Action Force director Leocadio Santiago Jr., whose unit

    received the helicopters, has also been charged, as well as Director George Piano,

    Chief Superintendent Herold Ubalde, and Senior Superintendent Lurimen Detran.

    All were charged with plunder with predicate crimes of graft and "not limited to

    falsification, perjury, dereliction of duty, (and) malversation, all committed under the

    circumstances of conspiracy."

    Pagdilao said that CIDG's investigation found that the transaction was laden with

    irregularities. He said the specifications issued by the PNP were tailor-fit to

    accommodate the helicopters owned by Mr. Arroyo.

    The CIDG chief said the purchase was also too expensive even for a brand new

    Raven 1 helicopter, which only costs P15 million. The deal for three helicopters cost the

    PNP around P105 million or P35 million each.

    "The procuring entity, in what appears to be blind submission to powers that be,

    ignored and disregarded the existence of flight log and engine logbook, which indicated

    that each of the two Raven 1 have registered an average of 500 hours of flight a

    clear manifestation that these helicopters are used or reconditioned and not brand new

    as what they were made to appear," Pagdilao said.

    Some members of the police inspection team that checked the helicopters

    admitted at the Senate Blue Ribbon investigation that they either did not see the units

    personally or did not have the expertise to evaluate them.

    This did not keep them from signing the inspection report "blindly",

    Pagdilao noted.

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    "Simply stated, different units were delivered instead of what appeared in the

    agreement. This alone is enough for criminal indictment for an unmistakable breach of

    the (Anti-Graft and Corrupt Practices Act) against the respondents for causing undue

    injury to the government," Pagdilao said.

    The Office of the Ombudsman, who prosecutes alleged wrongdoing by state officials

    and their associates, will determine if there is enough evidence for an indictment.

    Arroyo's husband said the police had no documents to support allegations he

    owned the helicopters.

    In a statement, he said the police "never asked to get my side" and instead relied

    on allegations made by an airline company official against whom he has filed perjury

    charges.

    Archibald Po, a director of Asian Spirit airline, testified in the Senate last month

    that his company bought the helicopters for the former president's husband and that

    they were used during Arroyo's 2004 presidential campaign.

    "This is clearly a pattern of harassment and persecutory tactics to vilify the

    Arroyos even without evidence," Arroyo said.

    In a separate comment, a spokesman for the former president said the

    government of her successor, Benigno Aquino III, is "engaged in witchhunting against

    the Arroyos."

    "This is part of the ongoing and massive vilification campaign against theArroyos" to cover for Aquino's alleged lack of achievements to improve the lives of

    Filipinos, said spokesman Raul Lambino.

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    Aquino has denied claims by the Arroyos that they are being targeted in his anti-

    corruption campaign even though he has said corruption plagued the nine-year Arroyo

    administration.

    The complaint accuses Arroyo's husband and the others of "acting in concert and

    taking undue advantage of their official position, authority, relationship, connection or

    influence to unjustly enrich themselves."

    Under a Philippine law, currently serving or former state employees and their

    associates who amass at least P50 million in ill-gotten wealth through criminal acts may

    be charged with plunder.

    It is the first plunder case filed against Arroyo's husband. The former president is

    herself facing three similar charges.

    Benjamin de los Santos, a lawyer for Verzosa, welcomed the filing of the charges

    and expressed confidence that the former national police chief's actions were in

    accordance with the procurement law.

    Arroyo had been tagged by two businessmen - Po of LionAir Inc. and

    MAPTRA's De Vera - as being the owner of the used helicopters, which were among

    the five helicopters supposedly acquired for him by Po.

    However, Negros Occidental Rep. Ignacio "Iggy" Arroyo revealed that it was he,

    as president of the family-owned LTA Inc., who leased the choppers from LionAir for

    use by his sister-in-law, former President Gloria Macapagal-Arroyo, in the 2004

    presidential elections. (PNA)

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    SENATOR FRANKLIN DRILON INVESTIGATION

    TWO Senate committees are bent on ferreting out the truth in the latest scandals

    to rock the previous administration.

    Sen. Franklin Drilon, who led the investigation into the helicopter anomaly,

    yesterday deplored the apparent hasty filing by the Philippine National Police before

    the Office of the Ombudsman of plunder charges against former First Gentleman Jose

    Miguel Arroyo, his brother Rep.Ignacio Arroyo and others involved in the scandal.He

    said the Senate Blue Ribbon Committee will file separate charges against the Arroyos

    and several others allegedly involved in the helicopter scandal during the previous

    administration.

    Similarly, Sen. Sergio Osmea III, chairman of the Committee on Banks,

    Financial Institutions and Currencies, said his panel, jointly with the Blue Ribbon

    Committee, will pursue the investigation of the alleged behest loan granted former

    Trade Minister Roberto Ongpin.

    Mike Arroyo allegedly sold as brand new two of his helicopters to the PNP in

    2009 for $350,000 each or amounting to about P105 million. He denied ownership of

    the controversial choppers. Later, his younger brother Iggy claimed ownership of the

    helicopters.

    He said that the premature filing of charges against the Arroyo brothers might

    prevent the Senate from ferreting out the truth, as police officials who would be invited

    to the Senate probe may invoke the right against self-incrimination due to pending

    cases.

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    This is like a legal gag order which is being deliberately done because the

    Senate cannot compel the PNP officials to speak if they appear before the Senate

    again. This is a shotgun approach, said Drilon.

    That would not prevent us from filing separate cases against those involved, he

    added. He said the BRC is still in the process of identifying if plunder charges or

    violation of the Anti-Graft Law will be pressed against Mike Arroyo, who, Drilon said,

    appeared to be the real owner of two Robinson R-44 Raven 1 helicopters irregularly

    sold to the PNP as brand new.

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    BLUE RIBBON COMMITTEE INVESTIGATION

    Sen. Teofisto Guingona III, chair of the blue ribbon committee, said then PNP

    Director General Jesus Verzosa should be included in the criminal charges, noting that

    he signed the PNP contract with Manila Aerospace Products Trading Corp. (Maptra),

    an entity that was not legally capacitated to do so at that time. Maptra was an

    accredited supplier of the PNP.

    Clearly, he had the responsibility and he would have to be accountable,

    Guingona later told reporters.

    Sen. Sergio Osmea III said former Interior Secretary Ronaldo Puno should also

    face charges for command responsibility.

    Puno then headed the National Police Commission (Napolcom), which released

    a resolution identifying specifications for the choppers.

    He had the type of command responsibility because he was the chair of the

    Napolcom and also [the head of] the DILG (Department of the Interior and LocalGovernment), he said.

    Pagdilao said the CIDG would file a case against Po and the owners of Maptra,

    which represented Lionair in the chopper deal. He declined to name the other officials to

    be included in the case.

    I would like to assure this honorable committee that there is no foot-dragging in

    this investigation, Pagdilao said. Weve been judiciously conducting our avowed dutyto get to the bottom of this investigation for the purpose of eventually filing a criminal

    case.

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    Faced with the looming criminal charges, senior police officials on Thursday

    pinned the blame on low-ranking officers tapped to inspect the choppers that were

    delivered to the PNP in 2009.

    Director George Piano, who headed the inspection committee for purchase,

    pointed to the pilots belonging to the inspection team for allegedly failing to disclose that

    two of the three purchased helicopters were secondhand.

    Piano later told senators that the head of the Special Action Force (SAF) Air Unit,

    which was to receive the helicopters, should have done so as well. The SAF was then

    headed by Director Leocadio Santiago.

    At this point, Guingona lost his cool and berated Piano. There is too much

    finger-pointing! he said.

    Director Luizo Ticman, head of the committee that negotiated the purchase,

    agreed with Piano that members of the inspection team were at fault. Lacson later

    pointed out that low-ranking officials were being left to hold the bag.

    Its very, very apparent from the way everybody is answering, from the way

    everybody is finger-pointing, that you are a disjointed, segmented, uncoordinated

    agency, Guingona told PNP officials. Very, very disappointing.

    Several witnesses, including Po, claimed that the two secondhand helicopters

    sold to the PNP were part of the five choppers bought by Arroyo in 2004 for his wifes

    campaign in the presidential election.

    Arroyo denied owning the helicopters. His younger brother, Negros Occidental

    Rep. Ignacio Iggy Arroyo, recently claimed that LTA Inc., a company owned by the

    Arroyos, merely rented the aircraft for two months in 2004.

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    by the Arroyos? How many more anomalies have to be uncovered before we see any of

    the Arroyo family member pay the price of their insatiable greed and abuse of power?

    How many more witnesses have to come forward and seek protection from the

    government for their patriotic service of telling the truth before the wheel of justice starts

    rolling?

    The definition of plunder is the indiscriminate taking of goods by force as part of a

    military or political victory, or during a catastrophe, such as during war natural

    disaster, or rioting. The term is also used in a broader sense, to describe egregious

    instances of theft and embezzlement, such as the "plundering" of private or public

    assets by corrupt or greedy authorities. Lately we heard that the former first gentleman

    Arroyo was dragged into the alleged anomalies hounding Pnps purchase of helicopters.

    Arroyos family said that the helicopter owned by them is secondhand purchase by their

    company. Arroyo proven that shes the owner of the helicopter and sold to the Pnp as a

    brand new. Arroyo may be liable in plunder case. Former FG Mike Arroyo's statement

    on plunder case filed against him over PNP choppers mess .. he said The PNP

    never asked to get my side. They never included me in their investigation. How can they

    file a case based only on allegations of a resource person with questionable

    background hiding under the witness protection program to escape conviction, and

    without a single document on hand supporting their claim that I own the chopper? This

    is clearly a pattern of harrasment and persecutory tactics to villify the Arroyos even

    without evidence. He is clearly candidating plunder.

    The helicopter deal by AFP that implicates the Arroyo administration is somewhat be a

    plunder, because the helicopters of Arroyo is not brand-new but it is a secondhandalready and this helicopters are used during the 2007 national election for campaign

    purposes. AFP was cheated, FG Mikey Arroyo did not consider the allegations the deal

    made. For Mikey Arroyo the important is the money he will gain, AFP should

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    complain FG Mikey Arroyo should pay for what h have done.one thing we should be

    concern about is the issue regarding leaving of Mikey Arroyo.He should face this

    controvercy to clear things out. Many people will criticize FG Mikey Arroy. I was

    sodisappointed by the AFP because they did not took the appropriate actions,

    they knew that the helicopter was secondhand but they just stare. Even FG Mikey

    Arroyo and GMA was powerful, AFP should remind their limitations.

    The Department of Justice (DOJ) will investigate the alleged anomalies at the Philippine

    Charity Sweepstakes Office (PCSO) and the purchase of Philippine National Police

    (PNP) helicopters during the Arroyo administration that were exposed in separate

    Senate inquries. To know whether it is plunder or not lets knows first the meaning of

    plunder. The definition of the CRIME of PLUNDER is acquired by him directly or

    indirectly through dummies, nominees, agents, subordinates and/or business

    associates by any combination. By receiving, directly or indirectly, any commission, gift,

    share, percentage, kickbacks or any other form of pecuniary benefit from any person

    and/or entity in connection with any government contract or project or by reason of the

    office or position of the public officer concerned; PCSO had released P325 million of itspublic relation fund to the intelligence fund of Arroyos administration and 150 million of

    this is released eve of the 2010 election. Then the former first gentleman Arroyo was

    dragged into the alleged anomalies hounding Pnps purchase of helicopters. And then

    the helicopters were owned by arroyos clan which is said that it is a secondhand

    purchase by them. If arroyos was proven that she the owner of the helicopters and it

    was sold forcibly to the Pnp as brand new helicopter costs P105 million. The Arroyos

    administration should be liable in plunder. According to the plunder is by the illegal or

    fraudulent conveyance or disposition of assets belonging to the National Government or

    any of its subdivisions, agencies or instrumentalities or government-owned or -

    controlled corporations and their subsidiaries. The Arroyos administration was so

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    powerful at the time. The proceeds exceed P50 million thresholds in a series of acts.

    According to our existing law they are candidate for plunder. Sec. 2. Definition of the

    Crime of Plunder; Penalties. Any public officer who, by himself or in connivance with

    members of his family, relatives by affinity or consanguinity, business associates,

    subordinates or other persons, amasses, accumulates or acquires ill-gotten wealth

    through a combination or series of overt criminal acts as described in Section 1 (d)

    hereof in the aggregate amount or total value of at least Fifty million pesos

    (P50,000,000.00) shall be guilty of the crime of plunder and shall be punished by

    reclusion perpetua to death. Any person who participated with the said public officer in

    the commission of an offense contributing to the crime of plunder shall likewise bepunished for such offense. In the imposition of penalties, the degree of participation and

    the attendance of mitigating and extenuating circumstances, as provided by the Revised

    Penal Code, shall be considered by the court. The court shall declare any and all ill-

    gotten wealth and their interests and other incomes and assets including the properties

    and shares of stocks derived from the deposit or investment thereof forfeited in favor of

    the State. Another anomaly of Arroyos should not be tolerated and must be

    investigated by the law bodies. If the government will not be in action they will

    continuously do and do another way to corrupt our country.

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    References:

    http://www.adb.org/Documents/EDRC/Policy_Briefs/PB051.pdf

    http://www.abs-cbnnews.com/nation/07/30/10/conditional-cash-transfer-helps-pinoys-

    beat-poverty-trap

    http://otra-cosa.com/httpdocs/?tag=helicopter-scam

    http://www.philstar.com/nation/article.aspx?publicationsubcategoryid=200&articleid=707

    780

    http://newsinfo.inquirer.net/tag/senate-blue-ribbon-committee

    http://www.malaya.com.ph/july14/news7.html

    http://www.manilatimes.net/index.php/opinion/columnist/3152-national-police-duped-by-

    chopper-supplier

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    The helicopter deal by AFP that implicates the arroyo administration

    plunder or not?

    Constitutional issue?

    Conditional cash transfer (CCT)

    Group Members: Castillo, Fritz Gerald

    Andino, Kim Vergel

    Brual, Ammiel Kit

    Adame, Lord Aviel A.

    Submitted to: Mr. Antonio Aldea

    (Professor)

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