PGMA's Speech during the Brotherhood of Christian Businessmen and Professionals 3rd National Grand Breakfast

Grand Ballroom, Hotel Intercontinental Manila, Makati City (26 June 2002)
THANK YOU VERY MUCH DODI.

THANK YOU VERY MUCH TO ALL OF YOU FOR YOUR KIND APPLAUSE.

LOUIE MORALES, PRESIDENT OF THE BROTHERHOOD OF CHRISTIAN BUSINESSMEN AND PROFESSIONALS, MY CLASSMATE, MY ELDER IN THE MARRIAGE ENCOUNTER; (LAUGHTER) MR. MANNY BANIGAN, ROY CALLEJA, REY FERIA, ROLLIE ONA, MAX JOAQUIN, FUJI RODRIGUEZ WHO IS WITH US IN PNOC, LARRY DE LARIZZABAL. AND I'D LIKE TO GREET ALSO A MEMBER OF YOURS WHOM I'M VERY PROUD TO HAVE RECRUITED IN TO MY GOVERNMENT, MY CHOICE -- JESS PARAZ OF NIA.

BEING TOGETHER WITH YOU THIS MORNING IS A BLESSING IN ITSELF. WHEN TRUE CHRISTIANS COME TOGETHER TO CELEBRATE THE LOVE OF THE LORD, THEY BECOME EFFECTIVE INSTRUMENTS IN SPREADING GOODNESS, TRUTH AND JUSTICE. FOR AS THE HOLY BIBLE SAYS IN MATTHEW 18:20: "WHERE TWO OR THREE ARE GATHERED TOGETHER IN MY NAME, THERE I SHALL ALSO BE." AND I KNOW THAT HE'S HERE WITH US TODAY.

I THANK YOU TOO FOR THE GIFT OF THE MICROFINANCE PROJECT THAT YOU WILL BE HAVING THE VARIOUS COMMUNITIES WHERE YOUR ORGANIZATION IS PRESENT. THIS MICROFINANCE PROJECT IS A WAY BY WHICH WE CAN SPREAD EMPLOYMENT. AND I UNDERSTAND THAT YOU WILL BE FOLLOWING THE CLASSIC GRAMEEN BANK FORMULA WHICH MEANS THAT THE BENEFICIARIES WILL BE THE WOMEN. ALSO, THE GRAMEEN BANK OR MICROFINANCE FORMULA IS SO APPROPRIATE FOR YOUR BROTHERHOOD BECAUSE THE COLLATERAL IS REPLACED BY SOCIAL PREPARATION BY VALUES FORMATION. AND THIS IS A GREAT VENUE, A GREAT OPPORTUNITY FOR YOU TO BE ABLE TO SPREAD THE CHRISTIAN VALUES AMONG THE POOR.

THIS IS A TIMELY MOMENT TO THINK ABOUT STRENGTHENING OUR INSTITUTIONS AND BUILDING GOOD GOVERNANCE. OUR SOCIETY IS CHALLENGED TO MEANINGFULLY RESPOND TO CHANGING SOCIAL VALUES.

A FEW NIGHTS AGO, I WAS DISMAYED TO SEE ON ANC A SURVEY OF THE AMERICAN CHAMBER SUPPOSEDLY OF ASEAN COUNTRIES WHICH SHOWED THAT THE PHILIPPINES WAS SUPPOSED TO BE THE MOST CORRUPT COUNTRY IN THE WHOLE ASEAN. MY DISMAY WAS LESSENED WHEN I SOUGHT A COPY OF THE SURVEY ITSELF. IT WAS NOT THE SURVEY OF THE ASEAN COUNTRIES. IT WAS A SURVEY NOT OF ALL ASEAN COUNTRIES. IT WAS A SURVEY OF THE FOUR MOST MODERN ASEAN COUNTRIES THAT IS SINGAPORE, MALAYSIA, THAILAND AND THE PHILIPPINES. SO THE GOOD NEWS IS THAT WE ARE NOW COMPARABLE TO NICs OF ASEAN. (LAUGHTER/ APPLAUSE) WE ARE NOW BEING COMPARED EVEN NOT FAVORABLY TO SINGAPORE WHICH IS NUMBER ONE IN THE WORLD IN TERMS OF GOOD GOVERNANCE, IT IS EVEN HIGHER THAN THE UNITED STATES. AND WE ARE BEING COMPARED TO MALAYSIA AND THAILAND.

AND IN FACT, SPEAKING OF THESE FOUR COUNTRIES, I THINK I'D LIKE TO GIVE YOU ANOTHER PIECE OF GOOD NEWS. LAST YEAR AND THIS YEAR SO FAR EVEN IF THESE THREE OTHER COUNTRIES ARE CONSIDERED THE NICs OF ASEAN, IN OUR ADMINISTRATION OUR GDP AND GNP PERFORMANCE WAS BETTER THAN ALL THESE THREE OTHER COUNTRIES. IN FACT, OUR GROWTH RATE HAS BEEN BETTER THAN ALL ASEAN COUNTRIES FOR THAT MATTER. WE ARE NUMBER ONE IN ECONOMIC GROWTH AMONG ALL ASEAN COUNTRIES IN THIS ADMINISTRATION. AND EVEN IF WE GO TO ASIA, WE ARE NUMBER THREE -- WE ARE THIRD ONLY TO CHINA AND TO VIETNAM.

NEVERTHELESS, THAT WE RANK BEHIND SINGAPORE, MALAYSIA AND THAILAND IN FIGHTING CORRUPTION MEANS THAT WE MUST STRENGTHEN OUR MORAL FIBER, INDIVIDUALLY AND COLLECTIVELY, FOR EVERY WEAKNESS IN THE INDIVIDUAL IS EVENTUALLY REFLECTED IN SOCIETY'S MORAL DECAY.

I EMPHASIZED THIS WHEN I ASSUMED THE PRESIDENCY. AT THAT TIME I LAUNCHED A MORAL REVOLUTION FROM THE TOP, THROUGH LEADERSHIP BY EXAMPLE. THEN AS NOW, I INSIST THAT ONLY MORAL STRENGTH CAN BE THE INVINCIBLE FOUNDATION OF GOOD GOVERNANCE. I BELIEVE ONLY GOOD GOVERNANCE CAN SERVE AS THE PATHWAY TO PEACE, JUSTICE AND THE CONQUEST OF POVERTY.

GRAFT AND CORRUPTION REMAINS A SERIOUS CHALLENGE. I WILL BE THE FIRST TO ADMIT THAT AND EVEN TO CALL ATTENTION TO THAT. GRAFT AND CORRUPTION ROB THE PEOPLE OF RESOURCES THAT OTHERWISE COULD BE CHANNELED TO PRIORITY PROGRAMS AND PROJECTS. IT ERODES THE CONFIDENCE OF CITIZENS AND ENTREPRENEURS IN THE INTEGRITY OF OUR INSTITUTIONS.

YOU ARE TALKING HERE ABOUT MICROFINANCE. AN AVERAGE INDIVIDUAL BENEFICIARY OF MICROFINANCE CAN HAVE A NEW LIFE WITH AS LITTLE AS 5,000 PESOS FOR AN INDIVIDUAL. FOR EXAMPLE, WHEN I WAS STILL IN THE EXECUTIVE BRANCH, I STILL AM, EVERYTIME I KEEP THINKING FOR INSTANCE OF EXPENDITURES THAT ARE USELESS AND THEY WILL SPEND 5,000 PESOS FOR THAT I WOULD SAY, WELL THAT IS WHEN BUSINESS THAT COULD HAVE STARTED TO EMPLOY ONE ADDITIONAL PERSON. OR EVERYTIME I SEE 15,000 PESOS BEING WASTED ON SOMETHING, I SAY, "THAT COULD BE ONE CORE-SHELTER FOR THE LAUNCHING PAD FOR OUR HOMELESS POOR."

GRAFT AND CORRUPTION ALIENATES THE PEOPLE FROM GOVERNMENT. AND THOUGH I STILL HAVE TO SEE THE PULSE ASIA SURVEY MENTIONED IN THE INQUIRER, ACCORDING TO THE INQUIRER HEADLINE TODAY 19 PERCENT OF FILIPINOS AGREE WITH THE STATEMENT THAT THIS COUNTRY IS HOPELESS AND IF IT WERE ONLY POSSIBLE THEY WOULD MIGRATE TO ANOTHER COUNTRY AND LIVE THERE. OF COURSE WE HAVE TO SEE THE OTHER SIDE OF THE NEWS. A GLASS IS HALF FULL OR HALF EMPTY DEPENDING ON HOW YOU WANT TO SEE IT. YES, THE GLASS IS 19 PERCENT EMPTY, BUT IT IS MORE THAN HALF FULL BECAUSE 60 PERCENT DISAGREED WITH THE STATEMENT. NEVERTHELESS, WE MUST RECOGNIZE THAT GRAFT AND CORRUPTION ARE AMONG THE BIGGEST HINDRANCES TO DEVELOPMENT.

AM I SUPPOSED TO THROW IN THE TOWEL IN THE FACE OF DISCOURAGING NEWS? CERTAINLY NOT. FIRST OF ALL, I MUST ALWAYS POINT OUT THE SILVER LINING: THAT AS I SAID EARLIER, WHILE WE RANK BEHIND SINGAPORE, MALAYSIA, AND THAILAND IN GOOD GOVERNANCE, WE, AT LEAST IN THIS ADMINISTRATION, ARE RANKING AHEAD OF THEM IN ECONOMIC GROWTH; AND WE CAN GROW EVEN MORE IF WE CATCH UP WITH THEM LET'S SAY WITH THAILAND, WHICH IS RANKED NUMBER THREE IN THE ANTI-CORRUPTION SURVEY. SECONDLY, WHILE 19 PERCENT FEEL HOPELESS, 81 PERCENT ARE NOT HOPELESS, 60 PERCENT DISAGREE AND THE BALANCE HAVE NO OPINION.

I RECALL MY FATHER, THE LATE PRESIDENT DIOSDADO MACAPAGAL, HE LEFT ME A MOTTO FOR MY PUBLIC AND PRIVATE BEHAVIOR: DO WHAT IS RIGHT, DO YOUR BEST, AND GOD WILL TAKE CARE OF THE REST. FOR MY SON DATO, THERE IS ANOTHER STATEMENT MY FATHER MADE TO HIM WHEN HE WAS A LITTLE BOY IN ONE OF THEIR CONVERSATIONS AND THAT IS WHAT HE CONSIDERS HIS MORAL HERITAGE. ONE TIME WHEN THEY WERE CHATTING AND THEY WERE TALKING ABOUT PUBLIC SERVANTS AND THEIR LIFESTYLES, HE WAS STILL A VERY LITTLE BOY, MY FATHER TOLD HIM -- BECAUSE MY LITTLE BOY ASKED HIM, "HOW COME YOUR LIFE IS MUCH SIMPLER THAN MANY OTHER GOVERNMENT OFFICIALS I HAVE SEEN? HOW COME YOU'RE NOT AS RICH AS MANY OTHER GOVERNMENT OFFICIALS I HAVE SEEN?" AND MY FATHER TOLD HIM BECAUSE "PENNILESS IS BETTER THAN HONORLESS."

WHEN I FOUND OUT ABOUT THE AMCHAM SURVEY, I ASKED SOME OF MY CONTACTS WITH THE AMCHAM, WHERE, SPECIFICALLY, IS THE GRAFT AND CORRUPTION THAT THEY ARE SO DISMAYED ABOUT. THE PRESIDENT OF THE AMCHAM IN THE PHILIPPINES SAID HE'LL GO BACK TO HIS MEMBERS TO FIND OUT. BUT IN THE MEANTIME, LOOKING AT THE REST OF THE SURVEY, I SAW ANOTHER PART OF QUESTIONNAIRE WHERE THE RESULTS SHOWS THAT THE RESPONDENTS SHOWED UNHAPPINESS OVER OUR REVENUE-GENERATING AGENCIES. THIS CONFIRMS WHAT I SAID IN MY STATE OF THE NATION ADDRESS LAST YEAR: THAT WHILE CORRUPTION IS DIFFICULT TO ELIMINATE OVERNIGHT, WE MUST BEGIN BY MAKING THE BUREAU OF INTERNAL REVENUE AND THE BUREAU OF CUSTOMS OUR SHOWCASES AGAINST GRAFT AND CORRUPTION. THIS IS WHAT I SAID THEN, AND MY RESOLVE TO CLEAN UP THESE AGENCIES REMAINS UP TO TODAY.

THUS, I'M GLAD THAT YOUR BROTHERHOOD IS DEDICATED TO GOOD CORPORATE GOVERNANCE. AND THAT AMONG YOUR DRIVES IS THAT, YOU WANT TO PROMOTE HONEST PAYMENT OF TAXES. AND I THANK YOU FOR THAT BECAUSE THAT WAY YOU HELP CLEAN UP THE REVENUE AGENCIES. YOUR ORGANIZATION IS NOT LACKING IN HEROES AND MARTYRS FOR THE CAUSE OF GOOD GOVERNANCE.

I UNDERSTAND THAT TWO YEARS AGO, A MEMBER OF YOURS -- THE REGISTRY OF DEEDS OF CAVITE -- REFUSED TO SIGN FAKE TITLES AND SHORTLY AFTERWARDS, WAS ASSASSINATED. SO ON HIS BLOOD, WE MUST VOW THAT WE WILL CONTINUE HIS FIGHT AGAINST CORRUPTION IN GOVERNMENT AND IN THE BUSINESS SECTOR.

ON OUR PART AFTER THE STATEMENT THAT I MADE LAST YEAR AND AFTER THE NEW CUSTOMS COMMISSIONER TOOK OVER IN MARCH OF THIS YEAR, THE CUSTOMS COMMISSIONER HAS FILED EIGHT ADMINISTRATIVE CASES AGAINST BUREAU PERSONNEL THIS YEAR, DURING THE FIRST QUARTER OF THIS YEAR. WE HAVE SEIZED 16 VESSELS BEARING A TOTAL EQUIVALENCE TO 532,696 BAGS OF SMUGGLED RICE.

JUST YESTERDAY, I HAD A MEETING WITH THE LOCAL OFFICIALS OF NEGROS OCCIDENTAL. ONE OF THE SEIZED VESSELS WAS SEIZED OFF THE SHORES OF BACOLOD. THE VESSEL IS STILL THERE. I CALLED UP LITO CAMACHO TO REMIND HIM THAT THAT VESSEL WHICH HAS BEEN IMPOUNDED SHOULD NOW BE AUCTIONED OFF BY THE CUSTOMS SO THAT NOT ONLY THE SMUGGLERS THEMSELVES BUT THE VESSELS WHO ALLOW THEMSELVES TO BE USED FOR SMUGGLING SHOULD BEWARE. THEREFORE, BECAUSE THEY ARE GOING TO BE CONSIDERED ACCESSORIES IN SMUGGLING AND THEIR VESSEL IN NOW SUBJECT FOR AUCTION. I HOPE IT HURTS THEIR POCKET BOOKS BECAUSE IF CONSCIENCE DOES NOT MOVE THEM MAYBE THEIR POCKETBOOKS WILL.

THE BIR HAS A ONE-STOP SHOP INTER-AGENCY TAX CREDIT AND DUTY DRAWBACK CENTER NOW. SIGNATURES FOR VERIFICATION REPORTS HAVE BEEN REDUCED FROM SIX TO TWO, AND CRIMINAL COMPLAINTS HAVE BEEN FILED AGAINST 64 COMPANIES THAT APPARENTLY HAVE FRAUDULENTLY ACQUIRED TAX CREDIT CERTIFICATES AMOUNTING TO 5.3 BILLION PESOS. IMAGINE WHAT 5.3 BILLION PESOS COULD DO FOR OUR BUDGET DEFICIT.

LAST YEAR I SIGNED EXECUTIVE ORDER 25 ESTABLISHING A GOVERNANCE ADVISORY COUNCIL. THIS COUNCIL HAS BEEN WORKING ON HOW TO SIMPLIFY THE RULES AND REGULATIONS OF CERTAIN GOVERNMENT AGENCIES; AND HOW TO RAISE OUR INTERNATIONAL RANKINGS ON TRANSPARENCY, BUSINESS ETHICS AND INTEGRITY OF BUSINESS AND FINANCIAL TRANSACTIONS. IN OTHER WORDS, HOW WE CAN LEAST CATCH UP FIRST WITH THAILAND, AND THEN WITH MALAYSIA AND WITH ALL THE OTHER COUNTRIES THAT RANK BEHIND SINGAPORE IN OUR OWN GOVERNANCE, BOTH GOVERNMENT AND CORPORATE. THIS COUNCIL IS ALSO FACILITATING AND EXPEDITING NATIONAL AND CORPORATE GOVERNANCE REFORMS; AND SOON, IT WILL CONDUCT A STUDY ON HOW TO STRENGTHEN THE JUDICIAL SYSTEM TO DEAL WITH GRAFT AND CORRUPTION.

THE COUNCIL HAS PINPOINTED FOUR CRITICAL ELEMENTS IN A GOOD GOVERNANCE PROGRAM:

THE FIRST IS THE RULE OF LAW TAKING INTO ACCOUNT THE NUANCES OF OUR HISTORY AND CULTURE; SECOND, IS A POLICY REGIME FAVORING COMPETITION, REDUCING DISCRETION, AND RAISING ACCOUNTABILITY; THIRD, IS AN EFFECTIVE ENFORCEMENT MECHANISM THROUGH PROFESSIONALIZED PUBLIC INSTITUTIONS, PROFESSIONALIZING THE PNP FOR EXAMPLE; FOURTH, IS A RESPONSIBLE CITIZENRY NURTURING A CULTURE OF COMPLIANCE, ETHICS, AND SOCIAL RESPONSIBILITY, AND THAT'S PART OF WHAT YOUR BROTHERHOOD IS DOING.

FIGHTING CORRUPTION, AS YOU CAN SEE FROM THIS FOUR, MEANS CUTTING RED TAPE. AND OVER THE PAST YEARS 12 DEPARTMENTS AND 19 GOVERNMENT AGENCIES HAVE UNDERTAKEN MEASURES TO REDUCE PROCESSING TIME FOR DOCUMENTS AND TRANSACTIONS. IN MOST AGENCIES, FOR INSTANCE, HUDCC AND THE DOLE, SIGNATURES OF VITAL DOCUMENTS HAVE BEEN REDUCED BY ONE-HALF. THE HUDCC HAS CUT THE PROCESSING TIME FOR HOUSING PERMITS FROM 188 DAYS TO 45 DAYS. THE DOLE HAS REDUCED BY HALF THE PROCESSING TIME FOR OFW DOCUMENTATION FOR SIX HOURS TO THREE HOURS FOR LAND-BASED WORKERS, AND FROM 12 HOURS TO SIX HOURS FOR SEA-BASED WORKERS.

COMPUTERIZATION AND AUTOMATION HAVE DETERRED ACTS OF GRAFT. THE E-PROCUREMENT SYSTEMS HAVE BEEN ADOPTED BY SEVERAL AGENCIES FOR EQUIPMENT ACQUISITION. THIS HAS NOT ONLY REDUCED CORRUPTION, IT HAS ALSO RESULTED IN SAVINGS FOR THESE AGENCIES.

I HEARD ON TV THE OTHER DAY, YEAH, THERE'S E-PROCUREMENT BUT VERY FEW AGENCIES JOIN. I'D LIKE TO LET YOU KNOW THAT 1,164 GOVERNMENT AGENCIES AND 1,557 SUPPLIERS HAVE BEEN REGISTERED IN THE ELECTRONIC PROCUREMENT SYSTEM FROM JANUARY TO MARCH THIS YEAR.

I WOULD ALSO LIKE THE SECURITIES AND EXCHANGE COMMISSION AND OTHER GOVERNMENT AGENCIES IN THE CAPITAL MARKET DEVELOPMENT COUNCIL TO WORK CLOSELY WITH THE BUSINESS SECTOR LIKE YOU AND CIVIL SOCIETY LIKE YOU TO ENSURE THAT THE CODE OF CORPORATE GOVERNANCE IS STRONGLY ENFORCED. I HAVE INSTRUCTED THEM TO ACTIVELY IMPLEMENT THE THREE-YEAR PROGRAM OF CORPORATE GOVERNANCE REFORMS THAT THEY ADOPTED THIS YEAR.

THE BANGKO SENTRAL NG PILIPINAS ISSUED A CIRCULAR REQUIRING ALL DIRECTORS IN THE CORPORATE BOARDS OF BANKS TO TAKE AN ORIENTATION COURSE IN CORPORATE GOVERNANCE.

SO FOR MY PART, I HAVE ALSO REQUIRED ALL APPOINTED DIRECTORS IN CORPORATE BOARDS OF GOVERNMENT-OWNED AND CONTROLLED CORPORATIONS AND GOVERNMENT FINANCIAL INSTITUTIONS, INCLUDING CORPORATIONS IN WHICH THE GOVERNMENT HAS A VITAL STAKE, SUCH AS THE PCGG-RELATED CORPORATIONS, ALSO TO TAKE AN ORIENTATION COURSE ON CORPORATE GOVERNANCE.

WE MUST FIGHT GRAFT AND CORRUPTION BECAUSE MORALITY IS AN END IN ITSELF. IN FACT MORALITY IS THE ULTIMATE END BECAUSE WE WERE CREATED TO KNOW GOD, TO LOVE GOD, AND TO SERVE HIM IN THIS WORLD SO THAT WE CAN BE WITH HIM FOREVER IN HEAVEN. AND FOR ME AS A PUBLIC SERVANT TO SERVE GOD IN THIS WORLD, I MUST FIGHT CORRUPTION ALSO BECAUSE NOT ONLY AS AN END IN ITSELF BUT BECAUSE IT IS A WAY OF FINDING JOBS FOR OUR PEOPLE. IN A FREE ENTERPRISE WORLD, THE WAY TO SOLVE UNEMPLOYMENT IS INVESTMENTS. AND THE WAY TO GET INVESTMENTS IS TO BE COMPETITIVE. AND PART OF BEING COMPETITIVE IS HAVING A CLIMATE OF GOOD GOVERNANCE. THAT IS WHY WE MUST EMULATE IF NOT YET SINGAPORE, THEN AT LEAST MALAYSIA AND AT THE VERY LEAST THAILAND, WHO ARE SCORING HIGHER THAN US IN THE FIGHT AGAINST CORRUPTION.

THIS MORNING I WAS READING THE BIBLE AS I DO EVERYDAY. TODAY I READ MATTHEW 7 VERSES 15 TO 20. THERE JESUS CHRIST SAYS TO HIS DISCIPLES: "BEWARE OF FALSE PROPHETS."

NOW WHO ARE THE FALSE PROPHETS? OF COURSE THERE ARE THOSE WHO TELL I LIE OR THERE ARE ALSO THOSE WHO TELL A HALF TRUTH OR ONLY TELL HALF OF THE TRUTH. AND I WOULD SAY THAT IN THIS WORLD TODAY, THEY INCLUDE THOSE WHO ONLY GIVE THE BAD NEWS TO THE EXTENT THAT IF THE BAD NEWS IS SO PERVASIVE IT BRINGS ABOUT A STATE OF HELPLESSNESS, SKEPTICISM IN THE COUNTRY. TO BEWARE OF THEM, IT IS IMPORTANT TO POINT OUT LAOS THE GOOD NEWS TO BALANCE IT SO THAT OUR PEOPLE WILL NOT DESPAIR.

FOR INSTANCE, AS I SAID EARLIER OUR GROWTH RATE IS BETTER THAN SINGAPORE, BETTER THAN MALAYSIA, BETTER THAN THAILAND, BETTER THAN ANY OTHER ASEAN COUNTRY, BETTER THAN ANY ASIAN COUNTRY EXCEPT CHINA AND VIETNAM. AND THAT IS GOOD NEWS, AND I THINK THAT DESERVES TO BE IN THE FRONT PAGE AS MUCH AS THE 19 PERCENT WHO WANT TO GO ABROAD. SO, OUR GROWTH RATE BEING THIRD IN ASIA RANKING ONLY BEHIND CHINA AND VIETNAM I THINK IS SOMETHING WE SHOULD BE PROUD OF.

YOU KNOW, I THINK, BECAUSE MANY BUSINESSMEN HAVE ALREADY BEEN THANKING ME THAT OUR INTEREST RATES IN THIS ADMINISTRATION ARE AT THEIR LOWEST IN THE LAST 40 YEARS, AND OUR INFLATION RATE IN THIS ADMINISTRATION IS AT ITS LOWEST IN THE LAST 15 YEARS. AND THAT'S NOT ONLY IN STATISTICS BECAUSE THE PRICE OF RICE HAS NOT GONE UP, THE PRICE OF TRANSPORTATION HAS NOT GONE UP IN THIS ADMINISTRATION. THE PRICE OF MANY MEDICINES HAS BEEN CUT BY HALF, AND THE COST OF MEDICAL SERVICE TO THE POOR IS NOW BEING SHARED BY THE GOVERNMENT UNDER THE PHILIPPINE HEALTH INSURANCE SYSTEM. THESE ITEMS BRING DOWN THE INFLATION RATE BECAUSE RICE IS THE BIGGEST ITEM IN THE FOOD BUDGET, WHICH IS HALF IN TURN OF THE POOR MAN'S BUDGET.

IN CONTRAST, ELECTRICITY, ENERGY, POWER MAKE UP NO MORE THAN FIVE PERCENT OF THAT BUDGET, AND YET THAT IS THE PRICE THAT IS CAUSING THE GREATEST DISSATISFACTION.

THUS IT IS NOW MY DUTY TO DEVOTE MY TIME AND ENERGY TO ATTENDING TO THE ISSUE OF ELECTRICITY RATES. I WILL SPEND THE NEXT WEEKS AND MONTHS TO FIND WAYS TO FURTHER BRING DOWN POWER RATES. EVERY CENTAVO MATTERS, EVEN AFTER THE 20 PERCENT CUT IN OUR JULY BILLINGS.

SPEAKING OF ELECTRICITY RATES, COMPETITIVENESS AND INVESTMENTS, ONE OF THE REASONS WHY I NEEDED TO REFORM THE POWER SECTOR IS THAT I INHERITED THE POWER SECTOR WHOSE ELECTRICITY RATES ARE ALSO SECOND IN ASIA, SECOND HIGHEST IN ASIA, SECOND ONLY TO JAPAN. BUT LAST MAY 8, I ASKED, I INSTRUCTED NAPOCOR TO BRING DOWN ITS PURCHASE POWER COST ADJUSTMENT (PPCA) -- WHICH IN TURN, IS A COMPONENT OF PPA -- TO BRING IT DOWN TO 40 CENTAVOS. AND THAT WILL REFLECT IN YOUR JULY BILLINGS. AND WHEN THIS REDUCTION IS REFLECTED IN YOUR JULY BILLINGS, WHERE HOPEFULLY THE BULK OF THE MERALCO CONSUMERS WILL SEE IT GO DOWN BY 20 PERCENT, WE WILL MOVE FROM NUMBER TWO TO NUMBER SIX. WE WILL OVERTAKE SINGAPORE, HONG KONG, CAMBODIA AND BRUNEI IN THE COST OF ELECTRICITY.

GOOD GOVERNANCE ALSO MEANS LAW AND ORDER AS I MENTIONED IN THE CORE POINTS OF THE COUNCIL ON GOVERNANCE. IT MEANS BEING TOUGH AGAINST CRIME, TERRORISM AND CORRUPTION. IT MEANS SEEING THROUGH ONE'S PROGRAM TO DISCIPLINE LAW ENFORCES WITH FOCUS, EFFICIENCY AND EFFECTIVENESS.

OUR SUCCESSES AGAINST THE ABU SAYYAF ARE THE RESULT OF OUR SOLDIERS' AND POLICEMEN'S RENEWED FOCUS ON DUTY, INTEGRITY AND HONOR, AIDED BY THE ADVANCED TACTICAL EXPERTISE AND SOPHISTICATED EQUIPMENT OF OUR INTERNATIONAL ALLIES.

LAST NIGHT, I WAS WATCHING TV AND THEY WERE SAYING, "OH, NI HINDI ALAM NATIN KUNG TOTOO 'YUN, TOTOONG MAY ASSET. BAKIT SABI NILA NA NOONG ARAW, PITO ANG NASA BARKO, TAPOS SIYAM?" NO, NO, IT WAS SEVEN ABU SAYYAF PLUS TWO PUMPBOAT OPERATORS, ONE OF WHICH IS OUR ASSET. AND SABI NGA, "EH, PAPANO NALAMAN, PAPANO NABUHAY YUNG MGA ASSET NATIN?" BECAUSE -- I THINK I WILL TELL YOU NOW -- THEY WERE BRIEFED BEFORE THEY WENT AND THEY WERE GIVEN A NECKLACE WHICH FLASHED WHEN OUR SOLDIERS WOULD TURN ON THEIR KRYPTON FLASHLIGHTS IN THEIR NIGHT VISION EQUIPMENT, AND THEIR EQUIPMENT WILL SHOW THE LIGHT FLASHING ON THE CHEST OF OUR ASSETS. THEREFORE, THEY WILL KNOW THAT'S A FRIENDLY FORCE AND THEY ARE NOT SUPPOSED TO FIRE ON THEM. AND THEY WERE TOLD THAT THE MOMENT THE ATTACK BEGINS, JUMP INTO THE WATER. SO THEY FOLLOWED IT VERY WELL. IT WAS A PERFECTLY PLANNED AND PERFECTLY EXECUTED OPERATION.

SO, WHAT HAPPENED THERE -- LET ME TELL YOU WHAT HAPPENED -- WHEN OUR ASSET WAS ABLE TO REVEAL TO OUR SOLDIERS THAT ABU SABAYA ALREADY ASKED HIS BESTFRIEND TO SEND A BOAT AT 10 O'CLOCK AT NIGHT FROM ZAMBOANGA TO SIBUCO TO FETCH HIM SO THE BOAT WENT WITH OUR ASSET, FOLLOWED BY OUR OWN NAVY BOAT -- AND THE AMERICAN SPY PLANE SHOWED IT ALL BECAUSE THEY RECORDED IT, AND I SAW THE MOVIE, BUT I CAN'T SHOW YOU THE MOVIE BECAUSE WE CANNOT EXPOSE THE DETAILS OF THE TECHNOLOGICAL CAPABILITIES OF THE AMERICANS.

LET ME JUST TELL YOU THAT IN -- WHAT'S THAT, "THE PATRIOT", THE ONE OF JACK RYAN? THEY SHOWED SOMETHING -- BUT THAT'S SPECULATION. SO, I THOUGHT I WOULD SEE A MOVIE THAT LOOKS LIKE WHAT THEY SHOWED, THE HEAT SEEKING DEVICES. WELL, LET ME TELL YOU WHAT I SAW WAS MORE ACCURATE THAN WHAT THEY ARE DEPICTING IN "THE PATRIOT". (LAUGHTER/ APPLAUSE)

ANYWAY, THE BATTLE THERE OF SIBUCO BAY WAS VERY CLEAR. IT SHOWED THE SEVEN ABU SAYYAF GETTING ON THE BOAT, IT SHOWED THEM GETTING OUT INTO SIBUCO BAY, THEN IT SHOWED THE OTHER BOAT COMING, AND ABOUT AN HOUR OF FOLLOWING, AND THEN AT THE OPPORTUNE TIME, OUR BOAT RAMMED THEIR BOAT AT THE SAME TIME THAT THE FIRE FIGHT BEGAN. AND WHEN THE BOAT WAS RUSHING TOWARDS THEIR BOAT, OUR ASSETS JUMPED INTO THE SEA ALL BECAUSE OF THE BRIEFING THAT WAS GIVEN BY OUR SOLDIERS.

PERFECT TECHNOLOGY, PERFECT PLANNING, PERFECT EXECUTION.

JUST A FEW DAYS BEFORE THAT, I WAS ALSO WATCHING TV -- YOU KNOW, WHERE THEY HAVE THOSE SHOWS WHERE YOU HAVE THE TEXT MESSAGES COMING OUT AND ALL THE COMMENTS -- AND ONE OF THE GOOD COMMENTS SAID, IMAGINE WHAT COULD BE DONE WITH THE COMBINATION OF OUR GOOD SOLDIERS AND THE GREAT TECHNOLOGY OF THE U.S. WELL, WE HAVE SEEN WHAT CAN BE DONE. IN FACT, OUR SOLDIERS WERE JOKING BECAUSE THEY WERE SO HAPPY AND DEPRESSURIZED AFTER THAT, THEY SAID, NOW WE KNOW WHY OSAMA BIN LADEN HASN'T BEEN FOUND: EVEN IF THEY'RE USING THAT TECHNOLOGY, THEY HAVE NO FILIPINO SOLDIERS ON THE GROUND. (LAUGHTER/ APPLAUSE)

IN ANY CASE, LAST NIGHT I TOLD SECRETARY REYES, I THINK WE SHOULD CALL OFF OUR SEARCH FOR ABU SABAYA'S BODY. OKAY, YOU KNOW THE 50,000 REWARD IS STILL THERE FOR THE FISHERMEN TO LOOK FOR HIM. AND IF THE NAVY SEALS OF THE U.S. IS AVAILABLE TO HELP US, THEN LET'S HAVE A SMALL UNIT OF OURS SO THAT IT'S NOT ALL BEING DONE BY THE AMERICANS ALONE. BUT I THINK THE BULK OF OUR FORCES THERE SHOULD GO NOT TO FINDING THE DEAD LEADER BUT THE FOUR REMAINING LIVE LEADERS OF THE ABU SAYYAF.

PEACE AND ORDER ARE ESSENTIAL TO ECONOMIC DEVELOPMENT, THE DECISIVENESS BY WHICH WE ARE CONTINUING TO ENFORCE THE RULE OF LAW SHOULD BE MATCHED BY OUR CONSISTENCY AND UNSWERVING DETERMINATION TO KEEP THE ECONOMY ON TRACK, AND OUR SOCIAL PROGRAMS CLOSE TO THE GROUND.

TOGETHER, WE HAVE THE POWER TO INSTILL IN OURSELVES AND IN OTHERS A STRONG FAITH IN OUR LORD AND COMPEL THEM BY OUR EXAMPLE, OUR PRAYERS AND EXHORTATIONS TO ABIDE BY HIS WORDS. I KNOW THAT YOU, THE CHRISTIAN BUSINESSMEN, WILL USE THIS GIFT TO REACH OUT AND TOUCH THE LIVES OF CHRISTIANS AND NON-CHRISTIANS ALIKE, TO OPEN THE EYES OF OUR PEOPLE WHOSE HOPES NEED TO BE BUOYED.

LET US MAKE THE ROLES WE INDIVIDUALLY PLAY AS AN EMBODIMENT OF GOD'S WORK IN THIS WORLD.

YOU KNOW, WHEN I WAS COMING HERE I SAID, THAT JOINING YOU IS LIKE, YOU KNOW IT'S LIKE BEING IN AN OASIS. IT'S ALSO LIKE BEING ON MT. NAVOR WITH JESUS CHRIST. AND BEING WITH YOU AND HAVING THE PRAYERFUL AMBIANCE THAT WE HAVE AND THE LOVING AMBIANCE THAT WE HAVE, AND THE AMBIANCE WE HAVE FULL OF FAITH IN GOD, I HAVE, SOMETIMES I FEEL LIKE SAYING, LET'S JUST STAY HERE AND PRAY AND PRAY.

BUT REMEMBER WHAT JESUS CHRIST TOLD HIS TWO DISCIPLES: "NO, LET'S GO BACK DOWN TO THE WORLD." YES, AFTER PRAYING TODAY, LET'S GO BACK INTO THE WORLD. WE HAVE TO BE IN THE WORLD BUT WE MUST NOT BE OF THE WORLD. LET US BRING MORALITY. LET US BRING FAITH IN GOD BACK INTO PHILIPPINE SOCIETY.

THANK YOU.

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