INTERVIEW:Sparkinga chain ofevents

REFORMINGEDUCATION:Where tostart?

PARTNERSfor aSLUM-FREERP

May - July 2005Vol. 2, No. 3

Official Newsletter of theHouse of Representatives

Republic of the Philippines

FRESHMANDATEfor CSFIleaders p.6

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REVIVINGthe rivers

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ISSN 1656-507XISSN 1656-507XISSN 1656-507XISSN 1656-507XISSN 1656-507X

PARTIES URGE CHARTER REFORM

Tapes played, Tatad named source

An END toSMUGGLING?

SEVENTEEN of the country�spolitical parties and party-list

groups have called for an�immediate revision� of the 1987Constitution �as the proper andcorrect starting point to re-establish the harmony andstability of the nation.�

In a statement following athree-hour meeting, senior partyleaders also urged a revamp of theCommission on Elections(Comelec) �so that the integrity ofelections by which the sovereignwill is made known shall be putbeyond question and suspicion.�

The party leaders sitting in thestanding committee of thePhilippine Political PartiesConference chaired by SpeakerJose de Venecia agreed to opposecoups, rebellions, insurrectionsand subversion and any form ofviolence �as solutions to thepolitical problems of the country.�

�We therefore support theConstitution and the Rule of Law,�the leaders said in a jointstatement.

�We believe that the bestresolution of the present crisis isprovided by the presentconstitution�We pledge ourconcerted effort for reforms in ourentire political, social andeconomic condition so as tomodernize our nationalcommunity,� they said.

Reject coups, Call for complete Comelec overhaul

Continued on page 2Continued on page 2

CHARTER REFORM NOW. The heads and senior leaders of 17 Philippine political parties and party-list groups unanimously agreed to call for immediate Charterreform and a complete overhaul of the Commission on Elections as starting points for re-establishing the “harmony and stability” of the nation. Speaker Jose deVenecia chaired the meeting of the standing committee at the Manila Hotel. Photo shows the party heads and leaders during the signing of their joint statement,a copy of which was sent to President Macapagal-Arroyo, less than two weeks before she delivers her State-of-the-Nation Address on July 25. Seated are (fromleft) Rep. Robert “Ace” Barbers, Lakas-CMD;former Secretary Heherson Alvarez, Lakas-CMD; Rep. Luis Villafuerte, Kabalikat ng Malayang Pilipino (Kampi); Sen.Edgardo Angara, Laban ng Demokratikong Pilipino (LDP); Speaker de Venecia, Lakas-CMD; Sen. Juan Ponce Enrile, Partido ng Masang Pilipino (PMP); ManilaMayor Lito Atienza, Liberal Party (LP); and former Justice Rodolfo Palattao, KKK Laban. Standing are (from left) Rep. Roque Ablan, Lakas-CMD-KBL; Ms. Zita delaCruz, Veterans Freedom Party; Maximo Dalog, LDP; Rep. Miguel Romero, LDP; Rep. Jesli Lapus, Nationalist People’s Coalition (NPC); Rep. Rolando Andaya, LP;Rep. Edcel Lagman, Aksyon Demokratiko; Rep. Teodoro Locsin, PDP-Laban; Rep. Juan Miguel Zubiri, Lakas-CMD; Quezon City Mayor Sonny Belmonte, Lakas-CMD;Rep. Rene Velarde, Buhay; Secretary Norberto Gonzales, Partidong Demokratiko-Sosyalista ng Pilipinas (PDSP); Rep. Eulogio Magsaysay, Alliance of VolunteerEducators (AVE); Rep. Jorge Paterno, Butil; Rep. Juan Bondoc, Nacionalista Party; and Rep. Rodante Marcoleta, Alagad.

HIGHEST FRENCH DECORATION. Speaker Jose de Venecia is conferred the Officier Legion d’ Honneur, France’shighest honor, by Minister of Industry Francois Loos in Paris last month for being one of Asia’s peacemakers andfor his landmark initiatives such as the global inter-faith dialogue approved by the United Nations to mediateethnic and politico-religious conflicts, and for wide-ranging Philippine socio-economic reforms that he helpedcreate. De Venecia’s conferment with France’s highest honor instituted by Napoleon was witnessed by (from left)Philippine Ambassador to France Hector Villaroel, Reps. Monico Puentevella, Juan Miguel Zubiri, Janette Garin,and Rolex Suplico (partly hidden).

Tobias Engay

By Melissa M. Reyes

AFTER a string ofeconomic reforms

accomplished in the FirstRegular session despite adifficult year, the 236-strongHouse membership is preparedto tackle an even more criticalperiod, this time with politicalreforms expected to be put inplace once the Second RegularSession of the 13th Congressopens on July 25.

�When the First RegularSession opened last year, wefocused on improving thecountry�s fiscal position,�Speaker Jose de Venecia said.

Continued on page 3

By Diony P. Tubianosa

THE FILIPINO people are notto be denied the right to know

the truth.For the first time in the

House inquiry to resume August 3nation�s political history, the rulingmajority coalition in the House ofRepresentatives voted with theopposition bloc to let the nationlisten to the alleged wiretappedconversations between an official

of the Commission on Elections(Comelec) and prominent namesin Philippine politics, includingPresident Gloria MacapagalArroyo.

2nd Regular Session

ALL SET

2 May - July 2005

By Abigail M. Macabeo

WITH the vision to achieve a slum-free Philippines, the House ofRepresentatives and the Gawad-Kalinga have teamed up for a projectto build affordable and decenthomes for the country�s homeless.

The First Kalinga PilipinasCongressional District HousingProgram aims to build low-costhomes using Gawad Kalinga�s testedmethods, as initiated by SpeakerJose de Venecia and Rep. EduardoZialcita, chairman of the HouseCommittee on Housing andUrban Development.

Gawad Kalinga, a non-government organization known forhelping the poor build their homesguided by their vision of a slum-freePhilippines, will lead the privatesector in this multi-sectoral project.

Under the program, everyHouse Member is encouraged toprovide P10 million every year forthree years to jumpstart theconstruction of housing units inidentified sites per district from thePDAF or DPWH HardInfrastructure Allocation Fund, ora combination of both.

�We hope that in three years,we should be able to build 200-500units per district,� Rep. Zialcitaestimated. At least 50Congressmen have signified theircommitment to the project whileothers cite existing joint-ventureprojects with GK.

GK Executive DirectorAntonio Meloto explained duringthe orientation last June how thisfund will multiply four times with

the House fund ser ving astriggering factor to tap multi-sectoral cooperation. Labor is freebecause it will come from thefamily-beneficiaries and volunteers.The land will be donated either bythe local government units or byprivate individuals and entities.

Just like a GK shelter project,the First Kalinga Pilipinas willinspire members of the communityto join in a collective effort. Thepoor will feel empowered whenthey contribute labor for theconstruction of their houses andshare in the process of building anew community, GK �s MariaMontelibano noted.

A memorandum of agreementis expected to be signed by the lastweek of July between the House ofRepresentatives, Housing andUrban Development CoordinatingCouncil, Department of SocialWelfare and Development, GK andCREBA Social HousingFoundation Inc.

Under the project, theHUDCC will oversee and monitorthe implementation of the project,while the DSWD will beresponsible for the community andsocial preparation in the identifiedhousing sites. The necessar ytechnical support will be providedby CSHFI.

House-Gawad Kalingaproject envisions

slum-free Philippines

Two major oppositionfigures�Sen. Juan Ponce Enrile,chairman of former President

Charter reformContinued from page 1

Marcoleta (Alagad), Rene Velarde(Buhay), Eulogio Magsaysay (AVE),George Paterno representing Rep.Leonila Chavez (Butil), and RogerRosel representing Rep. ErnestoPablo (Apec).

Also in attendance were LakasRep. Robert �Ace� Barbers, whoheaded the preparatory workshopcommittees, Rep. Roque Ablan Jr.,Rep. Juan Miguel Zubiri and formerSen. Heherson Alvarez; Rep. VictorSumulong of Kampi, and formerRep. Miguel Romero and Gov.Maximo Dalog of the LDP

De Venecia said Charterreform would be a top priority ofthe House when the 13th Congressopens its Second Regular Sessionon July 25, calling it the �motherof all reforms� to put Philippineeconomic recovery on a sustainedtrajectory.

The party heads assigned toppriority to other wide-rangingreforms, including public financingfor political parties to limit theinf luence of �big money� onnational politics, the setting up ofa professional and higher-paid civil

service, and creating jobs and socialwealth.

The parties recognized theurgency of pushing debt reductionand debt-to-equity conversion asproposed by the Philippinesthrough Speaker de Venecia to helpmore than 100 debt-ridden nationsworldwide to achieve the UNMillennium Development Goals(MDGs) of halving poverty by2015.

�We urge the Administrationto redouble its diplomatic effortsto bring the Philippine proposal forfinalization before the UnitedNations, Paris Club, and the IMF-World Bank,� the parties said.

They also urged thegovernment to follow up on itsefforts to open up the miningindustry, develop the informationtechnology sector and modernizeagriculture.

De Venecia said the House ofRepresentatives wouldsimultaneously tackle theimpeachment complaint filedagainst President Macapagal-Arroyo.

Joseph Estrada�s Partido ng MasangPilipino, and Sen. Edgardo Angaraof the LDP�argued that charterreform will usher in other reforms�so that we can all create the kindof society we want.�

De Venecia, president of theruling Lakas-CMD, in presidingover the meeting, said Charterreform would �put an end to thissystem of divided government.�

The Speaker later presentedthe 12-point statement to PresidentMacapagal-Arroyo, who wasreportedly in favor of cutting shorther term to accelerate charterreform as her �biggest legacy to thecountry.�

The statement was signed byde Venecia and Quezon City MayorFeliciano Belmonte, Lakasexecutive vice president; ManilaMayor Lito Atienza, chairman ofthe Liberal Party; Sen. Angara,LDP president; Sen. Enrile, PMPchairman; Rep. Jesli Lapus of theNationalist People�s Coalition;Rep. Teodoro Locsin Jr., of PDP-Laban; National Security AdviserNorberto Gonzalez of the PDSP;Rep. Edcel Lagman of AksyonDemokratiko; former Rep. RimpyBondoc of the Nacionalista Party;Rep. Luis Villafuerte of Kampi;Justice R. Palattao of the KKK-Laban; and party-list Reps. Rodante

I. We believe that the best resolution of the present crisis isprovided by the present Constitution.

II. We therefore support the Constitution and the Rule of Law, andoppose coups, rebellions, insurrections, subversions or any form ofviolence as solutions to the political problems of the country.

III. We urge the immediate revision of the Constitution as the properand correct starting point to re-establish the harmony and stability ofthe nation, and to address our social backwardness and sloweconomic progress.

IV. We pledge our concerted effort for reforms in our entire political,social and economic condition so as to modernize our nationalcommunity.

V. To these ends, and as an earnest of our sincere desire andconviction, we call for the complete overhaul of the Commission onElections, so that the integrity of elections by which the sovereignwill is made known shall be put beyond question and suspicion.

VI. Crises often serve to bring clarity and urgency to basic questionsof what must be done. Like many other citizens, we have come toconclude that our political problem is systemic.

The divided government produced unavoidably by the checksand balances of the presidential system simply does not work in thecontext of our present-day politics.

To put an end to this system of divided government, we joinour voices to those calling for a constitutional change from thepresidential to the parliamentary federal system.

VII. Such a basic shift will require corresponding changes in otheraspects of the political system which we bind ourselves to undertake.

VIII. We need to modernize our political parties-to make themefficient channels of popular expression, and effective instruments ofrepresentative and responsive government.

To limit the influence of �big money� on national politics, we willsupport public financing for mainstream political parties, in thecontext of electoral reforms that will outlaw promiscuous party-switching.

IX. Democratic practice comes down to the machinery ofgovernment. We must set up a professional and higher-paid civilservice that can aspire to bureaucratic meritocracy. We undertake towork together to pass a Civil Service Code that will make merit andfitness the foundations of a strong and upright bureaucracy.

X. We urge the Administration to take urgent steps to generate jobsand create social wealth. Reinvigorating the tourism industry is theeasiest stimulant-through �open skies� for Koreans, Taiwanese andChinese travelers into Northern Luzon, Clark Field, Cebu, Boracay,Bohol, and Palawan.

Government should also follow up on its efforts to open up themining industry, develop the information- technology sector, andmodernize agriculture.

XI. A number of European institutions have expressed interest in thePhilippine proposal for a major debt- reduction and debt-to-equityconversion initiative in crucial development projects to defeat masspoverty in 100 debt-ridden countries and dramatically advance theU.N. Millennium Development Goals (MDGs).

The Paris Club, with its core group of the G-8 richest countrieshas formed a Technical Team to study the Philippine proposal. TheItalian Government has favorably endorsed this initiative. We urgethe Administration to redouble its diplomatic efforts to bring thePhilippine proposal for finalization before the United Nations, ParisClub, and the IMF-World Bank.

XII. We acknowledge the preparatory work of the seven WorkshopCommittees of the Conference in arriving at this consensus asincorporated in this Statement and the Workshop Outputs.

PHILIPPINE POLITICAL PARTIES CONFERENCE 2005Statement of the Standing Committee of the Philippine Political Parties Conference

July 12, 2005, Manila Hotel

Speaker Jose de Veneciahimself ordered the use of thePlenary Hall of the House to ensuremaximum transparency in theconduct of the five-committeeinquiry on the controversialrecordings.

Media devoted live coveragesince the start of the hearing�presided over by Rep. GilbertRemulla (2nd Dist., Cavite), chairof the Committee on PublicInformation�which unearthedvital information not previouslyknown to the nation: former Sen.Francisco Tatad was the source ofthe audiotapes from which lawyerAlan Paguia produced the splicedtapes first released to the media inJune. Tatad and Paguia are both

associated with deposed PresidentJoseph Estrada.

The 32-minute Paguia tapesand Tatad�s three-hour source tapeswere played in full�and aired live.�A breakthrough,� Remulla calledthe playing of the audiotapes. �Wecaused a chain of events with ourhearings�we did accomplish somuch.� (See p. 8 for full text ofinterview).

The hearings are scheduled toresume on August 3.

Tatad himself appeared at thehearings but two other vitalresource persons�former NBIdeputy director Samuel Ong andformer Comelec commissionerVirgilio Garcillano failed to appearin the joint hearings.

The inquiry is jointlyconducted by the Committee onPublic Information chaired by Rep.

Remulla as lead panel; theCommittee on Public Order andSafety led by Rep. Amado Espino,Jr.; the Committee on NationalDefense and Security headed byRep. Belma Cabilao; theCommittee on InformationCommunications Technologyheaded by Rep. Simeon Kintanar;and the Committee on Suffrage

and Electoral Reforms chaired byRep. Teodoro Locsin Jr.

The joint inquiry, in aid oflegislation, took its coursefollowing a privilege speechdelivered by Minority Leader Rep.Francis Escudero of Sorsogon.

Also questioned during themonth-long intermittent hearingswere Presidential Spokesman

Tapes playedContinued from page 1

Ignacio Bunye, NBI DirectorReynaldo Wycoco and Sgt. VidalDoble of the Philippine Air Force..

Meanwhile, two impeachmentcomplaints have been separatelyfiled in the House, one endorsedby Rep. Rodante Marcoleta (PartyList, Alagad) and the other by Rep.Antonio Alvarez (1st Dist.,Palawan).

IN PLENARY. Chairmen of the five committees in joint hearings over the wiretapped tapes: (from left) Reps.Belma Cabilao, Amado Espino, Gilbert Remulla, Teodoro Locsin Jr., and Simeon Kintanar.

Tobias Engay

3May - July 2005

By Abigail M. Macabeo

WORKERS� hopes for higherminimum wages advanced with theCommittee on Labor�s approval ofCommittee Report 162, providinga P125 across-the-board increase inthe daily basic wage for privatesector workers.

The increase would partiallyrestore the lost purchasing powerin real value of the workers� wagesover the last decade and close thegap between the income ofminimum wage earners and thedaily-cost-of-living, according toRep. Roseller Barinaga (2nd Dist.,Zamboanga del Norte), author ofHB 345, one of the measuresconsolidated in the report.

�Although the proposed P125hike is still insufficient, it issubstantial enough to raise thequality of life of 16 million workersand their dependents,� Barinagasaid.

Anakpawis Reps. CrispinBeltran and Rafael Mariano, BayanMuna Reps. Satur Ocampo,Teodoro Casiño, and Joel Virador,and Gabriela Rep. Liza Maza,believe that �it is necessary to enacta legislation that would strengthenand give life to the constitutionalright of workers to living wage.�

Any wage increase should beexpressly provided in validcollective bargaining agreements tobe considered as in compliancewith the legislative measure.According to the proposed measurethe employer is mandated to paythe difference if the increase is lessthan that prescribed under themeasure.

The measure also providesthat any person or entity foundviolating the proposed law shall bepunished with a fine of P25,000to P100,000 or imprisonment oftwo to four years.

House bodyokays P125

wage increaseTHE PHILIPPINES hasachieved �significant progress�

and a likely breakthrough in itsproposal for a large-scale debt-for-equity in new development projectsto help heavily indebted nationsachieve the UN goal of halvingworld poverty in 10 years.

Speaker Jose de Veneciainformed President Macapagal-Arroyo of this development in aletter following his recent five-nation swing through Europe topresent and campaign for theproposal.

Paris Club president Jean-Pierre Jouyet created a �TechnicalCommittee� to further study theproposal, and senior BritishTreasury officials assured deVenecia that Great Britain wouldjoin the Paris Club technical panelin assessing the proposal�sworkability, the Speaker said.

Pres. Macapagal-Arroyo andForeign Affairs Secretary AlbertoRomulo have endorsed the debt-relief proposal for considerationby the UN General Assembly andthe G-8 nations, de Venecia said.

De Venecia further said theItalian government of PrimeMinister Silvio Berlusconi hasendorsed the Philippineproposal�a breakthrough sinceItaly is a member of the G-8, theworld�s richest industrializednations, that forms the core of theParis Club.

A letter to de Venecia by theItalian ambassador to thePhilippines Umberto Colesantisaid Berlusconi agrees with thePhilippine proposal�s objectives touse debt conversion to fund thefight against poverty and pursuethe UN Millennium DevelopmentGoals (MDGs).

�I have little doubt that ourproposal has stirred interest and,even more significantly, triggereda process of evaluation todetermine whether it is workableand how its mechanics wouldwork out in specific development

projects,� de Venecia wrote Ms.Arroyo.

De Venecia sent his letter tothe President before receiving theBangko Sentral ng Pilipinas Awardas �Champion of OFWRemittances� for conceiving andimplementing the dollar-remittance program, which hasearned for the Philippines $100billon since its implementation in1967.

Dollar remittances fromoverseas Filipino workers now top$8 billion a year, and de Venecia�sprogram has become a model forcountries with large overseasworkforce such as Turkey, India,Pakistan and Bangladesh.

De Venecia informed thePresident that the debt conversionproposal, if approved, wouldprovide debt relief to thePhilippines and some 100 heavilyindebted and medium-incomenations of Asia, Africa, and LatinAmerica representing more thantwo billion peoples.

The debt-for-equity programseeks to convert 50% of thecurrent debt ser vice and/orprincipal amount into equities forthe lending nations andinstitutions and invested in aseries of wealth-creating socialprojects.

The program would freepublic funds for investment indebt-for-equity projects, which deVenecia has identified asreforestation, mass housing,hospitals and health care, schoolsand classrooms, irrigation andpost-harvest facilities, clean water,eco-tourism and reclamation, andmining and other wealth-creatingprojects.

�The countr y�s annualforeign debt service is a staggering$4.5 billion. Under this program,half of this amount�$2.25 billionor about P112.5 billion, which ishuge in our era of budget deficits�could be made available for amenu of specific Philippine

development projects,� de Veneciasaid.

The Speaker said thedevelopment projects wouldadvance the President�s 10-pointlegacy program, and the 12-pointwealth-creation program he hasauthored, keep the Philippines oncourse toward attaining theMDGs, and strengthen thegovernment�s battle againstpoverty, ignorance and disease.

�Our debt relief programpresents a workable idea, with areasonable chance of success, tohelp poor and middle-incomenations lift their peoples fromgrinding poverty,� he said.

The Speaker had a series ofmeetings with top financial andpolitical officials in Europe asidefrom his talks with Mr. Jouyet ofthe Paris Club.

Among them were the BritishTreasury�s Mark Bowman, head ofits International Poverty Reduction,and Joseph Thornton of itsInternational Poverty ReductionTeam. Both helped package theBritish proposal to cancel billions

Paris Club creates technical panel to studyJDV�s debt-for-equity program

of dollars in bad debt of 18 heavilyindebted African nations.

De Venecia also conferred withthe leaders of the French Senate andthe head of the French NationalAssembly, Jean-Louis Debre; thehead of the Vienna-based OPECFund, Suleiman Jasir Al-Herbish;the Austrian Parliament president,Dr. Andreas Kohl and the actingAustrian Finance Minister RudolfEdlinger; Ukrainian PresidentViktor Yushchenko and Ukraine�sSpeaker of Parliament VolodymyrLytvyn and its Deputy PrimeMinister Mykola Tomenko; and theDeputy Prime Minister and FinanceMinister of the Netherlands, GerritZalm.

De Venecia also presented theproposal in his address at theParliamentary Assembly of theCouncil of Europe (PACE)composed of 45 nations. TheBritish MP Alan Meale andCanadian Senator Lorna Milnegave a ringing endorsement of theproposal at a hearing of theAssembly�s EconomicCommittee.

The FORUMThe FORUMThe FORUMThe FORUMThe FORUM is published by the PUBLISHINGAND DESIGN SERVICE, Public Relations andInformation Department, House of Representatives,with offices at Constitution Hills, Quezon City andTelephone Nos. 9315335 and 9315001 local 7651 or7552.

Editorial Board: Dep. Sec. Gen. Emmanuel A.Albano, Chairman; Exec. Dir. Ma. Bernadette C. dela Cuesta, Vice-Chairman

Editor: Dep. Sec. Gen. Emmanuel A. Albano

Managing Editor: Dir. Ferdinand M. Bolislis

Assistant Editor: Melissa M. Reyes

Staff Writers: Diony P. Tubianosa, Abigail M.Macabeo, Raymond G. Pasiliao, ChristianFerdinand D. Pamintuan, Michelle M. Sapnu,Jacqueline Rey-Juliano, Isagani C. Yambot Jr.,Ceferino M. Acosta III

Research, Production & Circulation: Cynthia A.Bagaforo, Virginia B. Rizardo, Maricar S.Magbitang, Vanessa T. Valdez, Fedes Maria C.Cruz, Crispin E. Mendiola, Rey A. Sinco, FedericoGarcia

Design and Lay-out: Waldemar T. Alvarez

Photography: Tobias F. Engay, Jeremias E. Ereño,Perfecto C. Camero, Marceliano C. Achanzar,Christian Ferdinand D. Pamintuan

Entered as second class mail matter at the BatasanPambansa Post Office. All rights reserved.

ISSN 1656-507X

By Diony P. Tubianosa

TO HELP CURE the country�sfiscal deficit and combat outrighttechnical smuggling that deprivegovernment of more than P85-billion in annual duties and taxes,

the House approved on finalreading the Anti-Smuggling Act of2005.

Speaker Jose de Veneciapointed out that the proposed Actis a major ingredient of PresidentMacapagal Arroyo�s economic and

fiscal reform package designed toboost the government�s anti-poverty program.

�I commend the authors ofHouse Bill 4069 which supportsPresident Arroyo�s program to

Anti-smuggling bill passed

Three laws were enacted as aprecursor to the package of fiscalreform measures that have becomeindispensable to the country�seconomic recovery, namely: theExcise Taxes on Cigarettes andAlcoholic Beverages, Attrition Actof 2005, and the Expanded Value

Added Tax Act.As Congress opens its Second

Regular Session, the body isexpected to face thorny, butessential, political issues includingCharter reforms, and a call for therevamp of the Commission onElections.

Meanwhile, the wiretappinginquiry resumes on August 3 and

2nd Regular SessionContinued from page 1

a stronger wiretapping law isexpected in the end.

Topping the list is publicmonitoring of how Congress willhandle the two impeachmentcomplaints filed in the House.

It�s back to urgent business forthe House, in order to live up to itsmandate of instituting neededlegislative reforms, de Venecia said.

Continued on page 6

TOP BSP AWARD FOR JDV. Speaker Jose de Venecia receives from BangkoSentral ng Pilipinas (BSP) Gov. Amando Tetangco Jr. the BSP Special Awardfor Outstanding Service as “Champion of OFW Remittances” for conceivingand implementing the dollar-remittance program in 1967, which, to date,has earned for the Philippines roughly $100 billion in remittances—nowtopping $8 billion a year—and which killed the large-scale dollar black market.

THE HOUSE Public Relationsand Information Department(PRID) released the House ofRepresentatives Directory, 2005Edition, a limited-copy publicationwhich features contactinformation of House Members aswell as various offices of the LowerChamber. Also due fordistribution is the House of

Continued on page 8

5May - July 20054 May - July 2005

Figures to consider• Budget of the Department of Education (2005) – P111

billion, of which 88.1% goes to personnel salaries• Enrolment in public and private schools (2003-4):

Elementary – 12.9 millionHigh School – 6.2 million

• Teacher-Pupil ratio in public elementary schools – 1:36• Teacher-Student ratio in public high schools – 1:42• Public school classrooms needed to accommodate increasing

enrolment – 18,000• High school tuition fees: Free in public schools while

annual tuition ranges from P64,000 to P94,000 in aleading Metro Manila private school

(Facts from official sources)

Reforming the PhilippineEducational System is

essential if we want to transformour society and provide ournation the strong pillars for ourfuture. To start with, here aresome of the points we need toponder upon:

We should fully implementthe mandate of the 1987Constitution, specifically ArticleXIV, Section 5.5 which statesthat “The State shall assignthe highest budgetary priorityto education and ensure thatteaching will attract andretain its rightful share of thebest available talents throughadequate remuneration andother means of jobsatisfaction and fulfillment.”

As it is, 30% of our budgetgoes to pay the interest of ourdebts and at most 15% goes tothe education sector. Thispercentage (15%) is not anadequate translation of theConstitutional mandate.Compared to our ASEANneighbors, our investment ineducation as a percentage ofthe gross national product(GDP) is only 1.3%—lower thanthe Asian average of 3.3%. If

international performanceevaluation where weparticipated in reveal that theachievement levels of ourGrade 6 and 4th year highschool students are comparableonly to Grade 4 and 2nd yearstudents of other countries. Thisshould not be the case. Weneed to re-study our curriculum.Curriculum should be de-clogged of unnecessarysubjects and focus should be onmath, science and English.These are foundation subjectsfor lifelong learning necessaryfor further self-development andwork.

The teaching force, with itsnoble duty of molding the youngminds, should be provided forwith utmost recognition. Theyare teachers and their primaryrole is to teach. As such, theyshould be freed from extra-curricular responsibilities so theycan concentrate on teaching.We need to make sure that theyare properly trained for them toeffectively inculcate knowledgeto our youth. The present pool ofteachers should undergo in-service training to upgradeteaching competence

In reforming our educationalsystem, we are faced with

many problems, the biggest ofwhich is still funding. We donot have enough money for allour needs. The educationdepartment’s budget is numberone in annual appropriations,but what we allocate is stillsmall compared to the budgetallocations of other countries.Malaysia, for example,allocates 5% to 6% of its GDPto its educational needs, whileSingapore spends from 7% to8%. We, on the other hand,apportion only 2% to 3%.

Much of our budget goes topay for our debt service. Thatleaves so little for providing ourpeople improvements andreform in our educationalsystem. Now, if we look at theeducational budget itself, wewill see that the biggestchunk—around 90%—goes topay for teachers’ salaries; the10% left is barely enough topay for classroom constructionand repair, and acquisition ofschool supplies, books andequipment. Given thisscenario, and faced with theproblem of very little money to

in the centers that they handle.I believe that we need to putthe DepEd in charge of the DayCare Centers. We are happy tonote that President Arroyo, inher last SONA, has certified asurgent a measure to add anadditional year in pre-elementary education orpreparatory school. This is agreat first step if we can pushthis and institutionalized prepschool an additional year ofschooling.

It is my vision, as BasicEducation CommitteeChairman, to add two years ofschooling before Grade 1. Thisway, children will have a longerpreparatory period, giving themmore opportunities to learneven before they start gradeschool. This is the advantageprivate schools have over ourpublic schools. The reasonprivate school kids are soadvanced is that they startattending pre-school at agethree. My own children startedat four years of age. All Filipinochildren should be like that,too, given the opportunity.

However, the reality is thatthe DepEd wants to eliminate

Reforming the Philippine educational system

First, we should look at theproblem of shortage of

teachers nationwide.Department of Education(DepEd) records show that forCY 2003-2004 there are 330,087 public elementary teachersattending to 12,065,686 pupilsor a teacher pupil ratio of 1:36pupils.

In the regional level, thedisparity in the assignment ofteachers is more glaring. Inthe NCR, teacher-pupil ratio is1:44; in Region IV-A(CALABARZON) the ratio is1:43; in the ARMM it is 1:42; inRegion XII it is 1:40 and inRegion VII it is 1:39. However,in other regions, mostspecifically in areas in thenorthern Philippines, theteacher-pupil ratio issatisfactory. In the CAR, theratio is 1:29; in Region I, theratio stands at 1:30; for RegionII the ratio is 1:32; Region VI itis 1:32 and for Region VIII theratio is 1:32.

pay for all the improvementsneeded to reform oureducational system, we have tomaximize our educationalbudget. We have to re-alignour priorities in view of ourlimited funds.

I suggest that we all focusour priorities based on auniversal premise—that themost productive years ofchildren are those between zero

and six years old. These are theyears when children are at thepeak of their absorptive learningcapacity, when they are mostmalleable and teachable. Thatis the key to educationalreform—we have to put ourresources and institute reformsat those ages and bring qualityeducation at a younger age. Weshould put more emphasis onthose formative years andupgrade the early educationalsystem. I want our children tohave a fighting chance andobtain a solid foundation at anearly age.

Developed countries arenow putting more and moreemphasis on the early yearsbecause they believe that thisis where the government canbe more effective. Here in thePhilippines, most poor familiesnow send their kids to day carein order to learn at an early agein an environment thatresembles a school.

However, our Day CareCenters are placed under theDSWD which performs socialservices. Therefore, this meansthat there is no teacheradequately trained in education

non-readers only in 3rd grade.That’s how far behind ouraverage public school pupilsare. If the government reallywants to reform the system withsuch a lean budget, we shouldconcentrate more on andaddress the most crucial andcritical years of our childrenand leave high schooleducation increasingly in thehands of private schools. Wecan free up the budget fromhigh school and re-align it toimprove the early educationalsystem all the way up to thetime our pupils graduate fromelementary school. Rather thanbuilding more classrooms andhiring teachers for highschools, the government cansimply expand the vouchersystem or Educational ServiceContracting Scheme wherebyprivate schools are givengovernment funds to pay fortuition and fees of students.

Remember the saying,“Everything I needed to knowabout life, I learned inkindergarten”? The Philippineswill do well to believe it duringthese trying times. Interviewby Melissa M. Reyes

the 1:36 teacher-pupil ratio bythe DepEd in the elementarylevel and the 1:42 ratio in thesecondary level is unrealistic, amere illusion. No divisionsuperintendent or local officialespecially in far-flung areas willaccept said figure. Most LocalGovernment Units (LGUs) arefunding the salaries of teacheraides in order to bridge the gapin the number of teachers.

The lack of schoolteachers is aggravated by theappointment of teachers toancillary positions. DepEddata further shows that for theelementary level alone thereare 51,285 teachers that areassigned load on teaching andancillary services while for parttime ancillary-part timeteachers, it is 26,380. Thereare 2,733 teachers that are onfull-time ancillary services whoact as canteen manager,librarian, teacher-nurse,guidance counselor, propertycustodian and others.

For the secondary level,there are 17,406 teachers whoare given teaching and ancillaryservice loads while there are12,296 teachers who are onpart time teaching and part timeancillary load and, lastly, thereare 974 teachers rendering fulltime ancillary services.

Since the 11th Congress, I

The disparity in theassignment of teachers is morepronounced in the lowerechelons among schooldivisions in the region, thenamong the district schools andultimately schools within thebarangay. The disparity isbrought about by the MagnaCarta of School Teacherswherein the teacher’s consentis needed before she can betransferred to other schools.

It is just unfortunate thatthere is no similar law that willprotect the interests of thestudents. In the absence of aMagna Carta for pupils,provision of quality education isalmost nil in remote barrioswherein multi-grade instructionis practiced within a classwherein 80 or more pupils areunder one teacher.

For the secondary level,there are 118,639 teacherswho are nationally paid toteach 5,025,956 studentsyielding a national ratio of 1:42.

Much has been said about the unabated decline inthe general state of Philippine education, public andprivate. Leading Philippine universities have fallen inthe rankings of Asian institutions of higher learning whilethe basic skills of graduates in the elementary, highschool and college levels have been found wanting.

The Arroyo administration has placed education on top ofits development agenda, reflecting the standard wisdom thatproviding good education is the way out of endemic poverty

REP. EDMUNDO O. REYES, JR.(Lone Dist., Marinduque,

LAKAS-CMD)Chairman, Committee on

Basic Education and Culture

REP. HERMINIO G. TEVES(3rd Dist., Negros Oriental,

KAMPI)

have been calling on the DepEdto make a physical count ofteachers assigned to ancillaryservices. There should be areconciliation of the number ofteachers in the region andlocate the assignment of morethan 4,000 teachers that wereassigned to non-teachingpositions. In the reportsubmitted by all school divisionsof the Region, the result isfrustrating for it was able toaccount for only approximately500 teachers.

In line with my advocacy fortransparency, especially formembers of Congress and localgovernment executives, Irecommended to formerSecretary Florencio Abad of theDepEd to make a publication ofnames and assignments ofteachers by School Divisions atthe region to account for thetotal of 330,084 elementaryteachers and 118,639secondary teachers. Interviewby Michelle M. Sapnu

REP. EULOGIO R. MAGSAYSAY(Party List, AVE)

we want to advance oureducation system, we shouldallocate budget according towhat is stated in ourConstitution. Additionalinvestment to education can beused to bridge the gap ineducational resources (shortagein classrooms, desk and chairsand books) and in increasingthe salaries of teachers.

At the same time, we needto take into considerationeffecting reforms in our system.Results of NEAT and NSAT and

specifically in math, science andEnglish subjects. They shouldalso be well compensated.

We also need to free oureducational system from thebondage of politics. The leadersof any administration shouldhave the political will toimplement the mandate of theConstitution. Politicians shouldleave education to educatorsand not put pressure that derailsthe implementation of reformprograms that are aimed toimprove the quality of education.

First, we should start with theteachers. We should churn

out better quality teachersbecause they will be the ones tohone the children.

I also agree with theposition of former DepEdSecretary (Florencio) Abad. Heis assessing all the elementaryand secondary schools in thecountry by giving out diagnostictests, not only to the studentsbut also to the teachers.

From there, we could seethe profile of the elementaryschools or the quality of theteachers in a certain area. Onlythen can we adjust the kind ofprocedures or teachingapproach needed, and seewhere the weaknesses lie withthe teachers and students,whether it’s in the field of math,science or reading.

In my province, I saw thatmost of the students had belowpassing grades. If 75% were thepassing grade, they would begetting, on the average, 41% to48%. When we looked at theprofile of the teachers, it was the

same—they performed verybadly in written English.

I concluded, if the teachers’foundation is very weak, whatcould we expect from thestudents? This is the reason Iinsist that we should provideteacher-enhancement programsand be a bit stricter in recruitingteachers.

It becomes difficult whenteachers are not well-equippedintellectually or psychologically.Siyempre, ideally we shouldhave 40:1, but as we know, inthis country, it is 80, 90:1.

So may handicap na agadyung mga bata in terms of tryingto get good quality education. Idon’t think natututukan pa ngmga teachers yung mgaestudyante with these ratios.

So, for me, firstly, weshould start with the teachers,get a profile of the place—identify the weak and strongpoints—and from there assessthe kinds of program orcurricula we should give aparticular area. Kasi hindipwede yung one program for

the entire country.Dapat maging subjective

yung program based on thekind of place we have in aparticular area.

For example, the curriculafor Luzon would be differentfrom the Visayas. We shouldtailor-fit the program to theplace and see if the program fitsor not.

On teachers leaving to

teach abroad: We should givethem economic incentives forthem to stay. If only we couldupgrade the salary grade, whichis long overdue, then maybe,the quality teachers that wewant might have secondthoughts about leaving.

Thus, I have filed HouseBill 3123, entitled, “An Act toUpgrade the Salary GradeLevel of Public School Teachersfrom Salary Grade 10 to SalaryGrade 20, Amending RepublicAct 6728, and Providing FundsThereof.”

Mas maganda na rin sigurokung consistent ang policies ngDepEd. Sometimes it’s verydifficult to implement a program,lalo na kung nagbabago angsecretary of education.

It would be nice if theeducation secretary can stay forsix years, para kung anumanang vision or program niya, hecould follow it through up to theimplementation stage.Sometimes, it happens thatdepending on who theSecretary is, nagbabago yung

programa, nagbabago din angthrust.

Just like writing a lessonplan, we should have a programna kung di man mapagkasun-duan, yun din ang susundingprograma for the next five or 10years, whether or not wechange the Secretary, para maycontinuity.

Believing in the importantcontinuity of programs, I havefiled HB 2643, entitled, “An ActEstablishing a Program for theAcquisition of School Sites andthe Construction, Maintenance,Rehabilitation, and Repair ofSchool Buildings in the PublicElementary and SecondarySchools Nationwide,Appropriating Funds Thereforand For Other Purposes.”

To assist students, I havealso filed HB 2642, entitled, “AnAct Creating a National StudentLoan Board to Implement aNational Student Loan Programfor the Poor, Defining itsImplementing, Guidelines,Rules and Regulations andAppropriating Funds Therefor.”Interview by Jacqueline R. Juliano

We should establish well-planned, well-thought outmedium and long-term plans foreducation and there should becontinuity in the implementationof these plans despite changesin administration.

It is only through educationthat our country can develop—there is no other way. Let usinvest in education and breakthe endless cycle of poverty andprovide our people with moreprospects. Interview by AbigailM. Macabeo

REP. MA. MILAGROS H. MAGSAYSAY(First Dist., Zambales, LAKAS)

among 84 million Filipinos. While education is the most favoredsector in the national budget, money never seems enough,considering the increasing number of enrollees in the public schoolsystem each year and the backlog of classrooms needed to bebuilt and maintained. Corruption has also been documented asentrenched in all levels of the public school system while someprivate schools have been accused of commercialism andprofiteering, at the expense of quality.

How do we reform our educational system? Wheredo we start?

6 May - July 2005

Newest House member

Fresh mandate forBoard of Trustees

By Melissa M. Reyes

INSPIRED by the �Lemon Law�of the United States against sellingpoorly-made vehicles, CompostelaValley Rep. �Manuel �Way Kurat�Zamora has filed House Bill 3517to protect and provide relief tolocal consumers who have bought�lemon� cars and want to availthemselves of the warranties onthe defective vehicles.

Zamora�s bill also providespenalties, holding manufacturers,distributors or dealers liable andpay a minimum of P100,000 indamages.

Bacolod Rep. Monico O.Puentevella has filed a similar bill,HB 4160. Alagad Party List Rep.Rodante Marcoleta has f iledHouse Resolution 318 on thesame subject. The measures arenow under deliberation by theCommittees on Transportation,and Trade and Industry.

According to the US LemonLaw, the manufacturer should paya purchaser for legal fees and costswhen it breaches the writtenwarranty. The same law provides

relief including replacement of anewly-bought car or full refund ifthe car is found to defectiveenough to impair its value orsafety.

Zamora said the Philippineshas no specific law dealing with�lemon� cars and Congress shouldprovide one by amending theConsumers Act of the Philippines(RA 7394) to add a provisiontackling �lemon� cars.

He said the DOH is tasked toprotect consumers from defectivefood, drugs, cosmetics, devices andsubstances, and the DA fromdefects in agriculture-relatedproducts. Except for these, thereis no specific provision in the lawon motor vehicles, particularly�lemon� cars.

Zamora said the DOTC�notthe DTI�should handle such casesbecause it has the know-how onsuch products. He said in Japan,the Ministry of Transportationand Communication regulatesthe vehicles, not the Ministry ofTrade and Industry.

Also, the DTI should becompelled to coordinate with the

transportation department of thegovernment of the importing carcompany for a list of models beingrecalled to ensure that consumersdo not fall prey to the company�sself-serving statements, he said.

Zamora also noted that�lemon� car victims have no forumfor redress. They may complain tothe Bureau of ConsumerProtection under the DTI, but theprocess could be tedious andwinded.

Rep. Rodante D. Marcoletasaid he had to file civil chargesagainst the company to either havehis defective car replaced or givehim a refund.

He had complained to thecompany president, asked for adeferment on his car paymentswith the bank, and sought helpfrom the DTI and LTO�all to noavail. Zamora and Marcoletaagreed they should summon toCongress all parties concerned toexplain their action�or inaction.

�The matter may seem of littlesignificance, but many accidentshave been caused by �lemon� cars,�Zamora said.

Protection from �lemon� cars needed

By Isagani C. Yambot Jr.

THE P3-MILLION Press FreedomFund, intended to protectmembers of media and indemnifymurdered journalists, has beenincreased to P5 million duringrecent launching rites led bySpeaker Jose de Venecia andPresident Arroyo in Malacanang.

The P3-million media fund,which was proposed last year as astart-up operational capital, camefrom congressmen�s contributionsand de Venecia�s PriorityDevelopment Assistance Fund(PDAF).

The increased fund shall beallotted as follows: P2 million asreward money for informers leadingto the arrest of killers; P2 millionfor the Philippine National Police�soperational fund; and P1 million forthe DOJ�s witness protectionprogram and to indemnify victims�families.

In an earlier forum, deVenecia had invited mediaorganizations including thePangasinan Press and Radio Club,National Press Club and theManila Overseas Press Club to sitdown with House members andgive their recommendations onproviding protection to journalists.

He said the House wouldwillingly pass the needed legislationto stop or, at least, curb the spateof killings of media members,which situation has worsened,particularly in the last year and inrecent months.

�The killings are a directassault and threat to press freedomin the country,� de Venecia said.�You know they want to frightenyou from exposing corruption andmisbehavior (especially) in theprovinces.�

He said the murders of mostlycommunity journalists wouldembolden others to attackjournalists in Metro Manila.

�If they can get away with(killing community journalists),they can shift � (and) go afterMetro Manila journalists,� he saidduring the launching ceremoniesin Malacanang.

De Venecia called on both themedia and local governmentofficials to be �very responsible andnot abusive.� He urged media tobe �very responsible in theircriticism� of local governmentofficials, who have their image toprotect, too.

�Balance and moderation,those are the keys,� de Veneciasaid.

Press Fund raised to P5M

MEET THE CSFI BOARD. First row (from left) Beibie Kintanar, Vicky Ablan, LinOlaño, Trina Biazon, Gina de Venecia, Sigrid Datumanong, Kathy Santiago, andMary Ann Cua. Second row (from left) Olga Dangwa, Shirley Plaza, Louie Locsin,Bing Dadivas, Georgia Remulla, Minia Roman, and Frank Baraquel (+)

By Christian F.D.Pamintuan

GINA P. DE VENECIAreceived a new mandateas chairperson andpresident of theCongressional SpousesFoundation, Inc.(CSFI),alongside other officerselected during pollsheld March 15. In thefull roster of officers are:

President & ChairpersonGina de Venecia

Officer for Administrationand OperationsLouie Locsin

SecretaryTrina Biazon

Assistant SecretaryBeibie Kintanar

AuditorMary Ann Cua

Assistant AuditorLin Olaño

PROShirley PlazaMinia RomanKathy Santiago

LIAISONGovernment InstitutionSigrid Datumanong

Non-GovernmentOrganizationFrank Baraquel

Business & IndustryBing Dadivas

LEGAL COUNSELMarivic Guingona

COORDINATORSLuzonOlga Dangwa

VisayasLuz Vicencio

MindanaoGlen BarinagaBelle Pingoy

NCRLouie LocsinTrina Biazon

Region 1Vicky Ablan

Region 2Mary Ann Cua

Region 3Minia Roman

Region 4Georgia Remulla

Region 5Kathy Santiago

Region 6Bing Dadivas

Region 7Beibie Kintanar

Region 8Luz Vicencio

REP. RAMON �RED� DURANO VI won in aspecial election to fill up the post vacated in the5th District of Cebu by his brother, Joseph AceDurano, who was named Tourism Secretary. Thenewest House Member took the oath of officebefore Speaker Jose de Venecia in the presenceof Deputy Speaker for the Visayas Raul Del Mar,former Cebu Rep. Ramon Durano, MajorityLeader Rep. Prospero Nograles and members of

his family during the plenary break. He is expected to make his officialappearance in the House when session resumes on July 25.

Region 9Glenn Barinaga

Region 10Marivic Guingona

Region 11Lin Olaño

Region 12Belle Pingoy

CAROlga Dangwa

CARAGAShirley Plaza

ARMMSigrid Datumanong

PARTY LISTFrank Baraquel (+)

revive the country�s economy byplugging the loopholes in ourpresent Tariff and Customs Codeand curb smuggling,� de Veneciasaid as he endorsed it for Senategreen light.

The authors stressed theproposed Act will cut down theoccurrence of smuggling byproviding in the law key systematicsolutions which will make it easierto detect such crime.

Among the principal authorslauded by de Venecia were Reps.Jesli Lapus (also Chairman of theWays and Means Committee),

Eric Singson, Juan EdgardoAngara, Danton Bueser, GerardoEspina, Jr., Monico Puentevellaand Lorenzo Tañada III.

Chairman Lapus revealedthat the proposed law requires the�advance transmission of inwardforeign manifests, and theirpublication, to allow the Bureauof Customs (BOC) and theindustry association to examinecorrectness of the valuation of theimported articles.�

Lapus said the bill �providesfor stiffer penalties, both fine andimprisonment, for outright andtechnical smuggling, and for otherviolations of the provisions of theTariff and Customs Code of the

Anti-smuggling billContinued from page 3

if it has export potential; or to bedesignated for official use of theBOC against smuggling and otherfraudulent act against customsrevenue; or to be designated forofficial use of other governmentagencies; or for charitablepurposes through the DSWD orDOH; or to be destroyed when theauthorized modes of disposal areinapplicable.

Philippines, as amended.�Angara pointed out the new

requirement to use a �RevisionOrder� as one of the value database instruments in detectingunder-valuation of importedar ticles and the strictersupervision of customs-bondedwarehouses.

The authors, likewise,stressed the participation of theprivate sector in the deliberationon valuation issues through theValuation and Classif icationReview Committee and allowingthe industry sector to finance theBureau of Customs purchase ofundervalued articles.

Lapus likewise pointed out

that the bill provides that articleswhich have been misclassified,undervalued or misdeclared bymore than 30% between thedeclared and actual value, weight,measurement, or quality, shallconstitute prima facie evidence offraud.

The authors also revealed thatinstead of sale, property undercustoms custody shall be exported

The CSFI mournedthe passing away of PoliceSuperintendent Francisco�Frank� Baraquel, spouseof Rep. Ana Theresia�Risa� Hontiveros-Baraquel, last May.

7May - July 2005

RA 9337: Amendments to the NationalInternal Revenue Code

Bringing back life to the riversBy Melissa M. Reyes

WATER IS LIFE, LasPinas Rep. Cynthia A.Villar declared. Butmany rivers in ourcountry�s major cities

have become seriously polluted as thesehave been used as dumping sites for humanand industrial wastes.

In Metro Manila, all of the river systemsare considered biologically dead� theycannot sustain aquatic life. Las Pinas hasnot been spared.

Thus, from Day One of hercongressional term starting in the 12th

Congress in July 2002, Villar vowed to fightthe threat to the rivers in her district.

Las Pinas has two major river systems:Las Pinas (12.6 kms) and Zapote (18.3 kms).The two are linked and share 25.1kilometers of tributaries.

Sadly, pollution has killed marine lifein those rivers and tributaries. Alarmed,Villar launched on Dec. 13, 2002 the Sagip

Ilog River Rehabilitation Program with theDENR-NCR and Couples for Christ-OikosGawad Kalinga.

That day, which was the 53rd birthdayof her husband, Sen. Manny Villar, thesenator donated a backhoe on a barge, aspeedboat and a dump truck as hiscontributions to the program.

The target: widening and dredging ofsix kilometers per year over nine years. �Wecould shorten this target to five years if wepurchase an additional two backhoes,� Rep.Villar said.

Committed to help speed up thecleaning process, Senator Villar donatedanother barge, backhoe and speedboat. Todate, a total of 15 kilometers have beendredged, making the dredging programalmost 30% complete.

Support structures built include the C-5 Extension Wharf, with a project officeand training center, the Naga Road Wharf,with an equipment station, and the WireMesh Strainer at Zapote River, which filterswaste debris.

Houses remainstanding along theriverbanks, butRep. Villar happilynoted that thenearly 1,000families living thereare responding wellto the program.�They now applywaste segregationprocedures andavoid throwinggarbage into theriverbeds,� she said.

The ecologicalsolid wastemanagement seminars have been a big helpin raising public awareness on theimportance of keeping the rivers clean. Eversince the program started, volunteer couplesof the Couples for Christ-Oikos GawadKalinga have been conducting seminarsregularly on Values Formation and WasteManagement every Saturday.

At least 210 communities are currentlyinvolved: 153 in Las Pinas, 43 in Bacoor,Cavite, and 14 in Parañaque, about 153River Watch Teams have been organized andmore than 2,000 individuals havevolunteered.

Besides the community training withCouples for Christ-Oiko, other communityactivities include Pagtatanim Para saKinabukasan with the DENR-NCR; ZeroWaste Management Training with ZeroWaste Recycling Movement of thePhilippines Inc. and training of 20 Las Pinasbarangays and principals and presidents ofPTA Presidents and Teachers� Associationsin all of the 27 public schools in Las Pinas.

To prevent soil erosion, more than

By Raymond G. Pasiliao

P R E S I D E N TG l o r i aM a c a p a g a l -Arroyo signedinto law RepublicAct No. 9337 or

the Expanded Value-Added TaxAct on May 24, 2005, whichamends Sections 27, 28, 34, 106to 114, 116, 119, 121, 148, 151, 233,236 and 237 of the NationalInternal Revenue Code (NIRC) of1997. The new legislative measureis anticipated to raise P80 to P100billion in revenues per year to helpfund the government�sdevelopment and pro-poorprograms and projects.

Contrary to popular belief, RA9337 does not only amend theNIRC provisions on the ValueAdded Tax. The new law alsointroduces changes related to thetaxes on corporations, banks andnon-bank financial intermediaries,electric utility franchises,petroleum products, mineralproducts, and domestic airlines,among others.

Among the key features of RA9337 are the following:

1. The new law removes theVAT exemption of previouslyexempt sectors of the economy.

The previously exempttransactions that are now subjectto VAT are medical, dental,hospital and veterinary servicesrendered by professionals; legalservices; non-food agriculturalproducts; marine and forestproducts; cotton and cotton seeds;coal and natural gas; petroleumproducts; passenger cargo vessels ofmore than 5,000 tons; sale by theartist of works of art, literary works,musical compositions and similarcreations, or services performed forthe production of such works; andgeneration, transmission anddistribution of electricity includingthat of electric cooperatives.

2. The new law increases thethreshold of exempt transactionson the sale of residential housesand lots and the lease ofresidential units.

RA 9337 now exempts sales ofresidential lots valued up to P1.5million from the VAT, up from the

previous value of P1 million.Likewise, sales of residential housesand lots are now exempt up to thevalue of P2.5 millios, from theprevious value of P1 millionprovided in the old NIRC.

The new law also increases thethreshold of exempt transactionson the lease of residential units,from a monthly rental notexceeding P8,000 provided in theold NIRC to P10,000.

3. The new law increases thenumber of transactions subject toZero Percent (0%) Rate.

RA 9337 has broadened thecoverage of transactions subject toZero Percent (0%) Rate.

The new transactions subject tozero percent rate are:� Sale of goods, supplies and

fuel to persons engaged ininternational or air transportoperations;� Services rendered to a

person outside the Philippines,whether or not engaged in business;� Services rendered to persons

engaged in international shipping orair transport operations;� Transport of passengers and

cargo by air or sea to a foreigncountry; and� Sale of power or fuel

generated through renewablesources of energy.

4. The new law gives thePhilippine President authority toraise the tax rate from 10% to12% effective January 2006.

For the year 2005, the VATrate will remain at 10%. EffectiveJanuary 2006, however, the newlaw gives �standby� authority tothe Philippine President, upon therecommendation of the Secretaryof Finance, to raise the value-added tax rate to 12% after any ofthe following conditions aresatisfied: a) VAT collection as apercentage of GDP of the previousyear exceeds two and four-fifthpercent (2-4/5%); or b) nationalgovernment deficit as a percentageof GDP of the previous yearexceeds one and one-half percent(1-1/2%).

5. The new law increases theincome tax of domesticcorporations, resident foreigncorporations, and non-residentforeign corporations.

RA 9337 provides that exceptas otherwise provided in theNIRC, an income tax of 35% willnow be imposed on the taxableincome of domestic corporations,resident foreign corporations, andnon-resident foreigncorporations , up from theprevious rate of 32%. EffectiveJanuary 1, 2009, however, the rateof income tax will be lowered to30%.

6. The new law removes thefranchise tax on electric utilities.

The old NIRC imposed a 2%tax on the gross receipts of gas,water, and electric utilities derivedfrom the business covered by thelaw granting the franchise. RA9337 removes this 2% franchisetax on electric utilities.

7. The new law imposes anew schedule for the maturityperiod of lending activities.

RA 9336 provides for asimpler method in computing thetax imposed on banks and non-bank financial intermediaries fortheir gross receipts on interest,commissions and discounts fromlending activities, as well as theirincome from financial leasing.

Whereas the NIRC providedfor a three-tiered mechanism indetermining the tax rate oninterest, commissions anddiscounts, the new law simplifies

Continued on page 8

BOOK DONATION. The NationalResearch Council of the Philippinesdonated 20 sets of encyclopediasand other reading materials to thevarious public elementary andsecondary levels in the LoneDistrict of Camiguin through itsHon. Representative Jurdin JesusM. Romualdo (inset). Shown aboveare the staff of Hon. Romualdoreceiving the donations from Dr.Paciente A. Cordero, Jr., ExecutiveDirector of National ResearchCouncil of the Philippines and Dr.Alicia C. Mercado, Chief ScientificDocuments & Information Division.

Sen.Manny and Cynthia Villar at work in the rivers of Las Pinas

5,500 bamboos have been planted along theriverbanks. The bamboos� root networkmakes it ideal for this purpose.

To add another educational dimension,the Las Pinas Bamboo Garden orBambusetum, was inaugurated last June 3. TheBambusetum, a joint project with the DENR,features 22 (out of the known 32) species ofbamboo.

Rep. Villar�s office and the DENR aresearching for the other species to completethe �live bamboo museum,� which stretchesalong the riverbank from the C-5 Extensionon Wharf to the edge of the Golden HavenMemorial Park or a total of 1,250 squaremeters. The bamboo garden offers a betterappreciation of the significant functional andaesthetic uses of the many varieties of thebamboo.

�We hope our experience in Las Pinasserves as an inspiration to othercommunities,� Rep. Villar said. The problemwith the river systems seems formidable, butwe all have to begin somewhere, and Rep.Villar is doing just that.

8 May - July 2005

!!!!! Interview with Rep. Gilbert C. Remulla

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For updates, visit www.congress.gov.ph

�Wiretapping law needs a lot of tweaking�

the formula by providing for onlytwo categories. Thus, RA 9337imposes a 5% tax where theremaining maturity period of theinstruments is five years or less,and a tax of 1% where thematurity period is more than fiveyears.

8. The new law removes theexcise tax on diesel fuel oil.

Under the NIRC, diesel fuel

oil and similar fuel oils havingmore or less the same generatingpower are imposed an excise taxof P1.63 per liter of volumecapacity. The new law removes theexcise tax on these oil products.

Moreover, bunker fuel oil andsimilar fuel oils having more orless the same generating powerwill now enjoy the same tax rateof zero (P0.00), when they werepreviously charged with an excisetax of thirty centavos (P0.30) perliter of volume capacity.

9. The new law removes theexcise tax on locally extractednatural gas and liquefied naturalgas.

The NIRC provided thatlocally extracted natural gas andliquefied natural gas shall be taxedat the rate of 2% based on theactual market value of the grossoutput at the time of removal. Thenew law now provides that locallyextracted natural gas and liquefiednatural gas shall no longer besubject to the excise tax.

10. The new law provides forliability of domestic airlines on thecorporate income tax.

Domestic airlines, i.e.Philippine Airlines, Cebu Air,Aboitiz Air, Pacific Airways, and AirPhilippines, and other domesticairlines will now be subject to thecorporate income tax. Moreover,domestic airlines are mandated toregister for value-added tax and toaccount for the VAT on its sale ofgoods, property or services.

To mitigate the effects of the

new imposition, the franchise taxof domestic airlines has beenabolished.

Internal Revenue CodeContinued from page 7

AFTER thejoint committeehearings on thewiretappingissue drew to a

temporary close on July 13, TheTheTheTheTheFFFFForumorumorumorumorum caught up with Rep. GilbertC. Remulla (2nd Dist., Cavite), whopresided over the joint meetings asChairman of the Committee onPublic Information. The hearingswill resume August 3.

People have positivelynoticed your evenhandedconduct as presiding officer of amulti-committee body handlinga very delicate and controversialmatter. What was yourapproach to the entire process?

Listen to everybody and bevery firm. Study the rules welland make sure we have to keepmoving forward. We have toforge ahead despite all theobjections, all the questions. It�salways in my mind that we haveto forge ahead no matter what.To do this, we had to set asidesome matters for the meantimeand the others we try to answeras prudently and as quickly aspossible.

What were the mostdifficult points you had to dealwith?

There were many tough calls.The first week was really difficult.There were a lot of questions.The first hearing, the firstexecutive session was relativelydifficult. Every week proved to bea challenge. Every week there wasalways a challenge that had to beovercome.

What was the mostcontentious issue?

Playing the tapes definitely.Whether it was the first one orthe second one, those were theones that were very difficult.

There were alsoobservations that the hearingraised more questions thananswers. Do you agree withthat?

Yes. And the questions thatcropped up could be answeredby Samuel Ong or [Comelec]

Commissioner Garcillano.Unfortunately they cannot befound. Will they ever show up? Iam crossing my fingers. I don�tknow. I don�t even want tofathom a guess.

Hopefully when we findGarcillano and Ong then we willbe able to answer the remainingquestions. And then we have towrite our committee report andmake our suggestions on whatshould be done.

Do you agree that thereshould be a top-to-bottomrevamp of the Commission onElections as a first step in theright direction?

We will be revisiting theOmnibus Election Code. Aslegislators, that is the first thingwe should look at. Then try toprovide more transparency in

the Commission through theOmnibus Election Code.Delicadeza-wise, perhaps it wouldbe good for the members of theComelec to determine forthemselves if they are stillrelevant at this point in time tothe Commission.

Aside from revisiting theOmnibus Election Code, whatother legislative actions will betaken?

The anti-wiretapping law [RA4200] needs revisiting. After all,it is a 40-year old law. It may needa lot of tweaking to make it morerelevant to the technologiestoday. We will also look at someprovisions of laws that have todeal with freedom of the pressand expression considering thatthe NBI and DOJ have beenthreatening media outlets.

What were the mostimportant accomplishments ofthe nine hearings you hadconducted so far?

That we were able to play theaudiotapes and that we were ableto make sure there were no legalimpediments to it. We were ableto educate people on who we areas congressmen. Media coveredit live. It was open to the public.Isn�t that what democracy in thePhilippines is all about?

I think having been able toplay [the tapes] and knowing theyexist�without being too legalisticabout it�it�s a breakthrough. Wecaused a chain of events with ourhearings. Whether it be theadmission of the President thatshe talked to a Comelec officialor other things, we didaccomplish so much.

Gene Peñas

Representatives Accomplishment Report2004-2005, covering the First RegularSession of the 13th Congress. For in-House readers, PRID prepared thelatest edition of Community, themagazine for the House workforce.All were printed by the HousePrinting and Reproduction Service.

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