Tax implications of the Tourism Act of 2004

RECOGNIZING that tourism is one of the largest industries in the world that can bring in the much-needed dollars to fuel our economy, Senator Richard Gordon filed Senate Bill No. 1834, titled "The Tourism Act of 2004." This bill is pending in Congress but has already gone through several technical committee hearings.

The bill has three major objectives: (i) the reorganization of the Department of Tourism (DoT); (ii) the establishment of the Tourism Economic Zone Authority (TEZA) and tourism enterprise zones (TEZs); and (iii) the establishment of Tourism Philippines, which will merge the Philippine Tourism Authority (PTA) and the Philippine Convention and Visitors Corp. (PCVC) into one body. The proposed establishment of the TEZA and TEZs carries with it the proposed grant of tax incentives.

Income tax holidays

Similar to locators in special economic zones established under the Philippine Economic Zone Authority (PEZA), the Subic Bay Metropolitan Authority (SBMA) and the Clark Development Authority (CDA), investors in TEZs will be entitled to several tax incentives.

Section 51 of SB 1834 proposes to grant TEZ-registered enterprises an income tax holiday (ITH) of five years from the start of operations, extendible for another five years provided the TEZ-registered enterprises undertake a major expansion or upgrade of their facilities. The additional period will be computed in the proportion that the cost of the expansion or upgrade bears to the total assets of the TEZ-registered enterprise.

As the name implies, the income tax holiday will exempt the TEZ-registered enterprise only from the payment of income tax. Hence, such enterprise will not be exempt from the payment of other taxes, like value-added tax (VAT), documentary stamp tax (DST), excise tax, and other national internal revenue taxes.

Under existing laws, the income tax holiday granted by the Board of Investments (BoI) or the PEZA is either four or six years, depending on whether the enterprise is pioneer or non-pioneer, extendible for another two years for pioneer enterprises, depending on several factors such as ratio of capital equipment to labor, foreign exchange earnings or savings, or the use of indigenous raw materials. Investors registering with the BoI or the PEZA may avail of the above-mentioned ITH, including investors in tourism activities.

With the passage of the Tourism Act of 2004, the TEZA will now administer the ITH incentive for investors in tourism activities that locate in TEZs.

Preferential tax regime

Under SB 1834, after the ITH of the TEZ-registered enterprise expires, it shall be entitled to a preferential tax rate of 2-3 percent on gross income, in lieu of all national and local taxes, depending on the amount of investment and the number of persons employed. The secretary of tourism and the Bureau of Internal Revenue (BIR) are to prepare the implementing rules of this provision.

Unlike the ITH, the preferential tax regime will exempt the TEZ-registered enterprise from all national and local taxes including, but not limited to, VAT, DST, excise tax, local business tax and real property tax. This is similar to the PEZA incentives. However, under the RA 8748 amendment to the PEZA Law, the exemption from real property tax was removed since most local governments rely heavily on the same for their revenue sources. As currently worded, SB 1834 exempts the TEZ locators from the payment of real property tax.

The 2-3 percent tax on gross income shall be shared as follows: 1/3 to the local government unit concerned; 1/6 to Tourism Philippines; 1/6 to the TEZA; 1/6 to the national government; and 1/6 to a special fund for preservation of local culture, heritage sites and environment in and around the TEZs. Again, the rules governing this provision shall be drafted by the DoT and the BIR.

Exemption from customs duties/taxes

Unlike the special economic zones under the PEZA or the free ports created by law, like Subic Bay Freeport Zone, Zamboanga Freeport and Cagayan Freeport, the TEZ is not proposed to be treated as a separate customs territory but merely as a special designated area. As such, Section 51 of SB 1834 proposes to exempt all importations of capital goods into a TEZ for use by a TEZ-registered enterprise from the payment of customs duties and taxes. This means such importations will be exempted not only from customs duties, but also from VAT on importations.

However, this exemption applies only to capital goods, i.e. equipment, machinery, materials, and not to finished consumer products that are allowed to be imported by those located in the legislated free ports cited above.

Other tax incentives

TEZ-registered enterprises shall likewise be entitled to incentives provided for in other incentives laws, provided there is no conflict and double enjoyment.

If there is an overlapping of incentives, the TEZ-registered enterprise must choose only one incentive regime. This merely means that if the TEZ-registered enterprise desires to avail of incentives that are available under the PEZA or the BoI, but are not available under the draft bill, it may so avail of the same.

However, should there be an overlapping of the incentives being availed of, the TEZ-registered enterprise may only choose one incentive regime with respect to that incentive being sought.

In addition to these tax incentives, Section 54 of the bill allows TEZ-registered enterprises that shoulder the cost of restoring material cultural heritage within a TEZ in accordance with the rules and regulations issued by the National Historical Institute, to fully deduct said costs for income tax purposes.

Moreover, income derived by construction firms from such restoration works shall be exempt from tax.

Other tax implications

In connection with the proposed establishment of Tourism Philippines, SB 1834 proposes (i) to allow hotels and other accommodation establishments full deductibility from gross income of the cost of major expansions, renovations and upgrading of facilities, and (ii) a hospitality tax of 5-10 percent on the lease of rooms by accommodation establishments not located in TEZs.

While hotels and accommodation establishments welcome the deductibility of the cost of major expansions, renovations and upgrading of facilities from their gross income, they have expressed reservations about the hospitality tax, which they claim will drive up the cost of the rooms. There is light at the end of the tunnel, however, in that the bill's sponsor has expressed openness to a fee of $1 to $5 per head in lieu of this hospitality tax. The reaction of hotels and accommodation establishments to this possible change has not yet been elicited or discussed in any formal hearing. It would therefore be interesting to know their position given that the intent of the bill is to channel this tax, along with proceeds collected from travel taxes and operations of Duty Free Philippines, to Tourism Philippines.

SB 1834 clearly intends to harmonize and rationalize the tourism efforts of this country to spur economic growth. Given that tourism is the world's largest industry in terms of dollar earning capacity, and the recent events (albeit unfortunate) that have befallen our neighbors in the region, focus on tourism as the engine of growth is indeed timely.

The grant of tax incentives specifically for tourism-related investments may serve as the impetus to attract the much-needed capital to establish new tourist sites, enhance historical and cultural attractions, and improve existing accommodation establishments and basic tourism services. If the desired integration and rationalization of the tourism industry through the reorganization of the DoT, as well as the establishment of the TEZA, TEZs, and Tourism Philippines, comes to fruition, we may yet see, in the not too distant future, the kind of tourist visits that Malaysia (15 million tourists per year) and Thailand (12 million) are currently enjoying.

Finally, SB 1834 should be considered in the light of HB 3295, or the Omnibus Incentives Bill, which was filed in Congress by the Department of Trade and Industry to harmonize all incentives schemes currently in place

Mountain Woods in Subic opens door to nature lovers

Mountain Woods, an idyllic mountain retreat located at West Kalayaan, SBMA, recently held an Open House where guests had a generous preview of the venue’s upgraded facilities and fantastic nature environs. Everyone marveled at the serene setting of the place, its breezy mountain air tempting guests to just relax the whole day.

The resort has just completed development efforts to enhance the charming ambiance of the place, with a welcoming lobby, upgraded rooms, and well-planned landscaping. Guests were treated to sumptuous food and drinks, which they enjoyed at Le Jardin, the resort’s flagship dining outlet. The open-air restaurant boasts of an experienced and well-versed culinary team that knows and cares what discriminating guests want on their dining tables: Good food, exquisite wine, and a unique al fresco romance, cum piano playing and serenading.

Aside from the food, the visitors raved about the resort’s eternity pool which has a commanding view of the mountains and the forests at the backdrop. A gazebo area was also pictured as a perfect venue for weddings and other events that can be celebrated in a romantic nature ambiance.

A sister company of popular White Rock Resort, Mountain Woods aims to attract a broader market which may avail of this secluded resort’s enticing amenities. The natural forest setting of this veritable "Garden of Eden" defines the word privacy and pleasure all over the place. The views alone, which consist of commanding views over the lush forests of Subic, are a sight to behold, which are much missed by weary Manileños. Here, the cool and crisp mountain breeze, and relaxing panoramas will virtually recharge and rejuvenate their stressed bodies and mind.

Guests may avail of the affordable accommodation packages, fit for families and groups. The package allows use of the resort’s vast facilities for their various needs and wants. Mountain Woods will also ensure that after all activities, guests are pampered with the resort’s health/ spa services, relaxing rooms, recreation facilities (billiards, ping pong, darts) and delightful banquets.

Set amidst the seemingly rustic environs are 28 very spacious rooms complete with world-class amenities offered for the conveniences of urban living: cable TV, telephone, air-conditioning and private T&B with hot & cold shower, and individual balconies facing the forest and Subic Bay. The resort also has function rooms that can accommodate various social banquets or business meetings.

As an added treat, guests may enjoy the facilities of White Rock for free, while they are billeted at Mountain Woods. A two-in-one VIP Privilege Card also applies here, for members to enjoy both White Rock and Mountain Woods with benefits, discounts and special treats on room accommodations, dining amenities and leisure activities that have real value for money.

Mountain Woods is located on Entemador Street, West Kalayaan, inside SBMA. For inquiries, call Manila Sales Office at 421-2781

mayonnaise jar and the 2 cups of coffee...

When things in your life seem almost too much to handle, when 24 hours in a day are not enough, remember the mayonnaise jar and the 2 cups of coffee...

A professor stood before his philosophy class and had some items in front of him. When the class began, wordlessly, he picked up a very large and empty mayonnaise jar and proceeded to fill it with golf balls. He then asked the students if the jar was full. They agreed that it was.

The professor then picked up a box of pebbles and poured them into the jar. He shook the jar lightly. The pebbles rolled into the open areas between the golf balls. He then asked the students again if the jar was full. They agreed it was.

The professor next picked up a box of sand and poured it into the jar. Of course, the sand filled up everything else. He asked once more if the jar was full. The students responded with a unanimous "yes."

The professor then produced two cups of coffee from under the table and poured the entire contents into the jar, effectively filling the empty space between the sand. The students laughed.

"Now," said the professor, as the laughter subsided, "

I want you to recognize that this jar represents your life.

The golf balls are the important things-your God, family, your children, your health, your friends, and your favorite passions -- things that if everything else was lost and only they remained, your life would still be full.

The pebbles are the other things that matter like your job, your house, and your car.

The sand is everything else -- the small stuff.

If you put the sand into the jar first," he continued, "there is no room for the pebbles or the golf balls. The same goes for life. If you spend all your time and energy on the small stuff, you will never have room for the things that are important to you.

Pay attention to the things that are critical to your happiness.

Play with your children.

Take time to get medical checkups.

Take your partner out to dinner. Play another 18.

There will always be time to clean the house and fix the disposal."

Take care of the golf balls first -- the things that really matter.
Set your priorities. The rest is just sand."

One of the students raised her hand and inquired what the coffee represented. The professor smiled. "I'm glad you asked. It just goes to show you that no matter how full your life may seem, there's always room for a couple of cups of coffee with a friend."

GMA signs into law P907.6-B National Budget for 2005

President Gloria Macapagal Arroyo formally signed into law yesterday this year’s P907.6-billion National Budget, easing up the gridlock in the government’s delivery of basic services and other infrastructure projects for the past two-and-a-half months.

The President finally enacted the 2005 General Appropriations Act (GAA), now logged as Republic Act (RA) No. 9336, after two and a half months of delay where the national government was forced to "reenact" last year’s P864.8-billion national budget.

"This is the first time in the long tradition of budget legislation we have achieved partisan and interchamber unanimity in approving a budget faithful to the original proposal of the Executive," presidential legislative liaison officer Gabriel Claudio said.

He said the landmark approval of this year’s national budget without presidential veto will seal off the Arroyo administration’s commitment to reform and development as contained in the President’s much-acclaimed 10-point legacy agenda.

According to Budget Undersecretary Mario Relampagos, the new national budget now puts teeth to Mrs. Arroyo’s 10-point agenda -– job creation, balancing the budget by 2010, provision of water and electricity nationwide, and education for all, among others.

"This budget accord proves that we are all one and committed inputting our fiscal house in order. Given our nation’s situation, we really do need a fresh budget, not a reenacted one, to cope with the demands of the present time," he said.

In compliance with the congressional mandate that gives the biggest chunk of the national budget to education, she okayed the allotment of P122 billion for the Department of Education (DepEd) and its attached state universities and colleges all over the country.

Relampagos explained that the budget earmarked for education will mean providing for 10,000 additional teachers to reduce the shortage of teachers by 30 percent and building 7,500 classrooms in those areas experiencing acute classroom shortage.

About P153 million was earmarked for additional textbooks to keep up with the 1:1 book-to-student ratio per subject per grade/year level, while a total of P928.04 million was also set for scholarships to about 58,085 students in tertiary and vocation leves.

The DepEd is followed by the Department of Public Works and Highways (DPWH) which shares the second biggest allocations with P48.5 billion for this year, then by the Department of National Defense (DND), with P46.2 billion.

Also getting a bigger share in the newly-approved GAA for 2005 are the Department of the Interior and Local Government (DILG), with P43.9 billion, and the Department of Land Reform, with P14.7 billion.

"We know now how we can source the implementation of the 10-point agenda the President has launched from Day 1 of her election, and we hope we’ll be able to hasten the implementation of such projects," Executive Secretary Eduardo Ermita earlier said.

The budget signing ceremony held at Rizal Hall, Malacañang Palace was witnessed by leaders and members of the Upper and Lower Chamber of Congress led by Senate President Franklin Drilon and House Speaker Jose de Venecia.

Also present were Senate and House appropriations committee chairmen Sen. Manuel Villar and Rolado Andaya, Sen. Ramon Revilla Jr., and Deputy Speaker for Mindanao Rep. Gerry Salapuddin, and Reps. Prospero Nograles and Raul del Mar.

No members of the Senate and House minority bloc were, however, present during the signing ceremony, despite earlier pronouncement by the Laban ng Demokratikong Pilipino, the most dominant opposition party today, to collaborate with the administration.

Relampagos, who is temporary at the helm of the budget department due to the indefinite sick leave of Budget Secretary Emilia Boncodin, also said that about P56.6 billion was likewise earmarked for infrastructure projects nationwide.

These infrastructure programs and projects include, among others, P29,4 billion for road and bridges, notably Ilocos-Cordillera Road, the Halsema Highway, the Davao-Agusan Road, and the Trans-Panau Highway, including the completion of ongoing circumferential roads.

No more reenacted budget — Villar

Sen. Manny Villar, chairman of the committee on finance, yesterday said that "all’s well that ends well" in so far as the 2005 national budget is concerned.

The budget was finally signed by President Arroyo in Malacañang yesterday morning, witnessed by Villar and other lawmakers.

"Finally, the country can stop operating on a reenacted budget and start using the newly approved and signed 2005 budget. Now that we have put the budget out of the way, we can buckle down to work on other important legislative measures that our country urgently needs to restore fiscal health," Villar said.

"The budget is very important. It is necessary for any country for its efficient operations. And it is the only piece of legislation that the Constitution mandates. It is our duty to pass a national budget. Failure to enact a new budget every year paints a bad image of the country to the international community," he added.

"We have done our part. The budget is signed by the President, sealed and delivered for implementation. We can now move forward with other legislative works and reforms that need to be done," he said.

Fw: [Ulo Ng Apo] Digest Number 169

> Nabanggit ni Mr. Ariel Jose na nagsasagawa ang Globalpinoy Chamber of
> Small and Medium Enterprises ng FREE Livelihood Seminar sa iba't ibang
> panig ng Pilipinas.
>
> Maari po bang ilathala ninyo ang mga 'schedules' para makadalo ang ating
> mga kababayan na malapit sa venue na gagawin na seminar sa Styro-Art
> Craft?
>
> Maraming salamat.
>
> Annette
>
> Global Pinoy wrote:
> Isang masayang bati sa lahat ng Pinoy,
>
> Malugod naming ipinababatid sa lahat na nagkaroon ng bunga ang
> isinasagawang KAYA NG PINOY Expo ( www.KayaNgPinoy.coms.ph ) ng
> Globalpinoy Chamber of Small and Medium Enterprises.
>
> May bagong tuklas na karunungan na hindi na kailangan mag-aral ng matagal
> at gumastos ng malaki upang makapag-simula ng negosyo. Alamin ang tungkol
> sa bagay na ito sa www.MagandangBalita.coms.ph at ipaalam sa ating mga
> kababayan upang magkaroon sila ng dagdag na kabuhayan.
>
> MABUHAY ANG PINOY!
>
> Maraming salamat po.
>
> Globalpinoy Management Team

JAPANESE INVESTORS KEEN ON PUTTING UP HEALTH AND MEDICAL TRAINING CENTERS IN SUBIC

Senator Richard Gordon led the officials of the Tokushukai Medical Group, world’s 3^rd largest chain of private health institutions, to Subic Bay Freeport Zone for a site inspection of proposed areas for the investor’s hospital and medical training center slated for construction starting next month.

 

Tokushukai President and CEO Dr. Takao Suzuki disclosed that the 1,000-bed medical cum retirement center worth P5.6 billion will be the latest addition to the company’s existing 217 medical facilities worldwide which include 57 general hospitals.  He had previously communicated with Gordon about his interest in setting up the health institution in the Philippines.

 

Gordon said Subic can accommodate the proposed facility adding that the international airport and seaports within the freeport zone can be utilized to facilitate the transport of medical equipment and goods as well as patients from all over Asia.  He asserted that Japanese and other Asian elderly who cannot stand cold weather can find Subic as a perfect retirement area.  He emphasized that this market would help boost the country’s tourism industry.

 

According to Gordon, Filipino nurses and caregivers can also be accommodated in the proposed medical training center, adding that they need not work abroad once the center opens.

US$215 MLN Development For Subic Bay Freeport

SUBIC, March 8 Asia Pulse - The Subic Bay Metropolitan Authority (SBMA) is targeting 2007 to complete its US$215 million short-term development plan for its port facilities.

There are stages of development - phase 1 and phase 2.

Phase I involves the construction of a 280-meter berth, and installation of new gantry cranes with total handling capacity of 300,000 tons of equivalent units (TEUs) per year.

In Phase II, another berth measuring 280 meters will be constructed and two additional gantry cranes will be installed.

With all four operational gantry cranes, each capable of handling 150,000 TEUs, the total handling capacity can reach up to 600,000 TEUs per year.

The third phase is covered in the long-term development plan that will be sustained up to year 2020.

Financing this phase of the said project will largely depend on the need and actual volume generated in the future.

The project entails the construction of a new container terminal at the Cubi Point areas with a berth length of 560 meter and a berth of 13 meter.

Currently, only one gantry crane is installed at Sattler Pier and is operational. The crane is capable of handling 100,000 TEUs per annum.

It can also hold a maximum capacity of 30 metric tons and could lift 30 containers per hour or an average of one container for every two minutes.

Two port terminals have likewise been built and are now operational the Fertilizer Bulk Terminal at the Boton Wharf and the Grain Bulk Terminal at the Leyte Wharf.

Subic Bay Freeport Development Project, a flagship of the National government, was conceived after years of study by the Japan International Cooperation Agency (JICA) on the possibility of constructing an international container terminal on the former US Naval facility.

Felicito Payumo then chairman of SBMA and Hiroshi Yasuda, governor of the Japan Bank for International Cooperation (JBIC), signed a loan agreement for the project on August 31, 2000.

At present, Subic Bay Freeport has a total of 15 operational piers and wharves servicing different kinds of seas vessels from small crafts, commercial yachts and ferry boats to container vessels, cargo ships oil tankers and aircraft carriers.

The port facilities were recently augmented with the assistance of the private sector, pending the actual implementation of the Port Development Project.

The current interim terminal operation at the NDS is a joint venture agreement among the SBMA and port operators International Container Terminal Services, Inc. (ICTSI) and Royal Port Services, Inc. (RPSI).

Quiz : see if you can figure it out

Which country in Asia

1.was the first to become a republic, but replaced a sitting president in 2001 without benefit of elections, death or disability, resignation, or impeachment?

2.was the first to embrace democratic processes, but whose elections are the region's bloodiest and most fraudulent?

3.was the first to write a constitution for itself but endured 14 years of dictatorial rule?

4.had the second highest gross national product [GNP], next to Japan, in 1938?

5.has been characterized by UNICEF as "first among the worst-managed children's health care systems in Asia"?

6.has the weakest, most under-funded Armed Forces?

7.is the largest per-capita debtor to the International Monetary Fund?

8.spends one-third of its annual national budget to pay the interest fees on its foreign debt?

9.has the highest per-capita crime rate and is known as the region's "kidnap capital"?

10.is overwhelmingly Catholic, but has the second largest number of child prostitutes?

11.pays the second highest retail electricity rates, next to Japan?

12.is currently, next to Bangladesh, the region's poorest nation- state?

Which country in the world

13.is the only one named after a foreign colonizer-king?

14.is the only one, save for Nepal, that continues to face a communist insurgency?

15.is the only one to ask for and host foreign combat troops to help quell criminality?

16.taught the world how to grow rice but for the last 10 years has been a net importer of the staple?

17.has been characterized by the World Health Organization as "the epicenter of the global tuberculosis epidemic?"

18.expects its metropolian population to double [from 11 million to 22 million] in less than 17 years and its total population to double [from 80 million to 160 million] in less than 29 years?

19.has been tagged internationally as "the number one violator of intellectual property rights?"

20.ranks second only to Madagascar worldwide in the list of countries with the most threatened mammals?

21.currently ranks, among 180 states surveyed, as the 11th most corrupt country?

22.in a study of 186 countries, is the 6th most culturally fragmented nation-state [containing 87 distinct nations that speak in excess of 160 living languages, excluding their dialects]?

23.deforests its remaining timberland at the rate of 100,000 hectares/year?

24.used to be the largest exporter of abaca hemp and sugar, but is low the world's largest exporter of domestic labor?

Subic Bay tourism groups and stakeholders organize

New ‘Subik’ tourist destination is born

Driven by a common goal and vision towards the betterment of the tourism industry in the country, various tourism organizations and stakeholders around Subic Bay have united to form the Greater Subic Bay Tourism Bureau (GSBTB) that will spearhead the new "SUBIK" tourist destination.

With a fresh name intended to accentuate GSBTB’s optimistic view to regain the prestige of Subic Bay, particularly in maximizing the area’s vast tourism potentials, SUBIK is envisioned to make the market area – composed of Bataan, Olongapo, Subic Bay Freeport, and Zambales – the ultimate vacation haven and convention center for both local and foreign tourists.

In its recent induction of officers held at Legenda Hotel, GSBTB chairman George Lorenzana of White Rock and Mt. Woods Resort Hotels said SUBIK’s vision centers on the total enhancement of Subic Bay and its adjoining areas into a secure, competent, sustainable, ecologically sound tourism and vacation mecca in the Asia-Pacific region. With GSBTB’s core of competent stakeholders as board members and the strong support of its Board of Advisers mostly composed of political leaders in the area, and the SBMA leadership plus the active participation of member-organizations, Lorenzana noted that in due time, the Bureau’s efforts will eventually bear its fruit, not only for SUBIK but for the entire country.

GSBTB’s other officers are: John Corcoran of Ocean Adventure as vice-chairman, Cheryl Singson of Legend Intl. Resorts Ltd. as secretary, Linda Lim of the Olongapo Tourism Council as treasurer and chair for Ways and Means, and Bayani Chavez of Zambales Tourism Council as auditor.

Other members of the Board of Directors who also act as committee chairpersons are Gabby la O’ of El Kabayo Riding Stables for Tourist Attractions/Beautification; Francis Elum of Grande Island Resort for Hotels, Resorts, Spas; Nanik Sadhwani of Duty Free Shop for Shopping/Retailing; Vicky Garcia of Bataan Tourism Council; Victoria Gonzales of Bagac-Morong Resort Association; Jocelyn David of Bataan Hotel and Restaurant Operators Association; Sotero Gan, committee chairman for Entertainment/Nightlife of Olongapo Filipino-Chinese Chamber of Commerce; Carlos Gamboa of Olongapo Chamber of Commerce; Dr. Teresa Yap of Zambales Tourism Council for Education, Culture, Training; and Sonny Almazan for Security/Safety, also of Zambales Tourism Council.

Other committees are for Subic Bay Enhancements/Bantay-Dagat chaired by Carlito Baloy of Baloy Beach; Tourism Activities, Sports Events, Youth Programs chaired by George Ramirez; Marketing Services, Sales, and Promotion chaired by Raymund Siongco; Membership and Secretariat chaired by Patrick Escusa; and Traffic and Transportation Services chaired by Eloy Pineda of InterIsland Tours and Transport.

GSBTB is composed of 12 committees that will implement the bureau’s vision and strategies. These strategies are: Enhancement of attraction locations within the Greater Subic Bay (GSB) area through continuous beautification programs and upgrading; coordinate with government agencies, NGOs and affiliated entities for maritime safety, security, sanitation and hygiene, and reforestation, development of water sports activities, relentless education of inhabitants along the coastline and river banks and fisher folk to instill active volunteerism in the upkeep of the bay and coral reefs; develop and implement policies and guidelines for hotels and resorts; develop linkages to provide value for money tour packages; provide fast and comfortable routes or access points into and around SUBIK through coordination with government and public transport companies; support at least two world-class nightclubs and original cultural shows that give wholesome service and entertainment to tourists; develop oriental style spas and wellness cohesive nightlife; and develop a jingle on Subik for international distribution.

The committees will also help make Subik a conducive venue for various local and foreign events depicting the area as an ideal, safe, and dynamic place for fun, leisure; facilitate the cultivation of a "service culture" throughout the SUBIK area; create a shopping area/tiangge where all exhibitors converge to create a shopping haven and serve as outlets for local and foreign products, especially the famous Zambales mangoes; coordinate a 24-hour security with the help of local police and participation of school cadets; and create a SUBIK newsletter that will monitor tourism establishments and activities and aid in soliciting financial support, sponsorships, and volunteer work from members.

In its thrust to help develop Subik as a convention center, the bureau has set its sights on two convention centers – in SBMA and Olongapo. It will assist in making them more accessible to hotels in the area and implementing projects that will beautify and smoothen traffic flow and signages to and from the convention centers.

"The synergy and the formatting of a more viable ‘critical mass’ coming from Subik’s tourism assets and active business sectors are string catalysts to SUBIK’s development as a convention center," Lorenzana said.

Also lined up is the development and promotion of various historical places, among which is Lubao, eyed as a viable gateway to Subik such as the Macapagal ancestral home and the 400-year-old Lubao Church, both ideal for educational tours. Other known tourist attractions are the Bataan Memorial in Mt. Samat, the verdant forests of SBMA, Subic Bay and the Subic Sunset resorts, not to mention the various water sports activities such as those offered in Ocean Adventure, El Kabayo, Grande Island, and many others.

On the promising economic scenario looming clearly ahead for Subik, Lorenzana is confident the achievements of the bureau will help uplift the socio-economic structure of the community in a sustainable manner, and could very well serve as an example of what our country can do if business, the government, and the community act together

WHY IS IT CALLED 'PORK BARREL'?

No matter how much lawmakers defend the pork barrel and try to make it look good, it may be forever destined to be looked down upon with disdain.

In US politics, the term "pork barrel" alone is derogatory simply because of its origin.

According to news network C-SPAN, which reports on the US government, "pork barrel" came into use as a political term after the US Civil War. "It comes from the plantation practice of distributing rations of salt pork to slaves from wooden barrels. When used to describe a bill, it implies the legislation is loaded with special projects for members of Congress to distribute to their constituents back home as an act of largesse, courtesy of the federal taxpayer," it said in its website.

Paul Johnson, of Auburn University’s department of political science, was academic.

He defined "pork barrel" or "pork barrel legislation" as "appropriations of public funds by Congress (or other legislative assemblies) for projects that do not serve the interests of any large portion of the country’s citizenry but are nevertheless vigorously promoted by a small group of legislators because they will pump outside taxpayer’s money and resources into local districts these legislators represent."

And the lawmakers’ constituents are not the only ones who stand to benefit. "Successful promotion of such pork-barrel legislation is very likely to get the legislator re-elected by his constituents," Johnson said.

Dictionary.com is brutally frank, defining pork barrel as "a government project or appropriation that yields jobs or other benefits to a specific locale and patronage opportunities to its political representative" or "a legislative appropriation designed to ingratiate legislators with their constituents."

While lawmakers are the primary beneficiaries, presidents can also use pork barrel funds as a leverage to ensure congressional support for the administration’s proposed legislation.

In 1817, US lawmaker John Calhoun introduced the Bonus Bill that sought funding for highways linking the east and south of the United States to its western frontier using the earnings bonus of the Second Bank of the United States.

US President James Madison, however, vetoed the bill as unconstitutional. Since then US presidents have seen the pork barrel’s use as an instrument of political persuasion to ensure congressional support for their priority legislation.

That explains why the Arroyo administration — for all its avowed determination to bring down the chronic budget deficit — is hesitant to abolish the pork barrel, listed in the national budget as priority development assistance funds.

In the Philippine setting, lawmakers may have no need to pass pork barrel legislation because funds for such are already included in the administration’s annual budget outlay.

All they have to do is keep it in the budget to ensure the pork barrel keeps rolling out.

Note: because of this, congress now calls pork barrel as PDAF meaning Priority Development Assistance Fund

Calimlims character reference

From: Angelito Banayo

Let me tell you guys something about this Calimlim.
In 1998, right after the elections, he found ways to cozy up to Erap. Through affinity by long lost relatives, he suddenly became an Erap "relation".

Days after the inauguration, lo and behold, Erap retained him as his chief bodyguard! Later of course, he became the AFP intelligence chief.

Surprised, we one day asked Erap why he was so trusting of Calimlim, who was FVR's PSG chief. His answer was classic --- "Atin 'yan. Maski nung kampanya, binibigyan tayo ng inside info".

See the guy's character?

Later, while visiting the Pangarap area on the other side of the stinking Pasig, Erap playfully pointed to what looked like a "secret" room with a well-concealed
door. "Tinuro sa akin ito ni Calimlim - dito nagdadala ng "chicks" si FVR".

See what I mean?

Now he's in Subic, supervising the release of smuggled goods that are "allowed" and the confiscation of those that do not "pay the price".

Wait till things go really sour for GMA and her cohorts. Calimlim will, as sure as night turns into day, be "spying" for the other camp.

Who knows, the foolish Erap will still trust him, just as he has forgiven Angelo Reyes, trusts Nene Pimentel and others.

The story of our lives.

Double-dealing, chicanery, hypocrisy, and toadying up always pays.

Character? That's for stupid idealists and egotists who cling to principles like us.

In this country, crime pays, and how!

Japan envoy confident Subic dev't will boost CL trade

Allan Macatuno
Inquirer News Service

Japanese Ambassador Ryuichiro Yamazaki has expressed confidence that the ongoing construction of the $215-million Subic Bay Port Development Project here will speed up progress in Central Luzon.

During his visit here last week, Yamazaki said the major infrastructure development being funded through the special yen loan assistance granted by the Japan Bank for International Cooperation (JBIC) would spur economic growth in the region.



"Subic freeport's development is on the right track," Yamazaki told officials of the Subic Bay Metropolitan Authority (SBMA) during a meeting at the Subic Bay Yacht Club.

Yamazaki was earlier briefed on the construction of the container port at the Leyte Wharf in Cubi Point here.

According to SBMA Administrator Alfredo Antonio, Japan plays a key role in the development of the freeport.

"This is a very auspicious occasion that will strengthen friendship and collaborative partnership between the Philippines and Japan," Antonio said.

He said the development would make Subic port the major portal of the new Global Gateway, an alliance of Subic and Clark, contributing to the growth of the economy of the entire country.

"After the completion of the new container port, Subic freeport will [benefit from] the international shipping trade in the Asia-Pacific region with the expected increase in volume and sea traffic," Yamazaki said.

The port project, along with the Subic-Clark toll road, would provide an alternative route and port facility to decongest Metro Manila.

The port modernization project was awarded to Penta Ocean Corp., whose partners include Shimitsu Corp. and Toa Corp., after it passed the comprehensive evaluation conducted by the SBMA's bids and awards committee.

Penta submitted the lowest bid of P5.22 billion, about 25 percent lower than the government's estimate of P6.99 billion. The government had saved up to P1.77 billion for the project, SBMA officials said.

Yamazaki also visited the Japanese-owned businesses here and said more Japanese investments would come in as they see Subic "as one of the most excellent sites for business ... set up outside of Japan."

Senator says 'text' spam invades privacy

Posted 09:12pm (Mla time) Mar 01, 2005
By Erwin Lemuel Oliva
INQ7.net

While the National Telecommunications Commission (NTC) drafts regulations against unsolicited or unwanted broadcast text messages sent by operators to subscribers, a lawmaker recently declared this practice an invasion of privacy.
"Such [text] messages, by their very nature of being unsolicited, causes inconvenience and invasion of privacy, most especially when these subscribers, who opted to discontinue the receipt of spam text messages, continue to receive them," Senator Manuel Roxas wrote in a resolution urging a congressional inquiry into the matter.

Former trade secretary Roxas, said that a mobile phone, unlike a computer, is a personal device for communication.

He said disallowing mobile phone operators to flood phones with unsolicited messages would lead to better protection of the Filipino subscriber’s right to privacy of communication.

The senator said his inquiry into unsolicited text messages is a reaction to numerous complaints he has received from subscribers.

Unsolicited text messages violate the provision of the Republic Act 8792 or E-commerce Law's implementing rules and regulations, which provide necessary legal protection for consumers.

"It is provided therein that the protection of users, in particular with regard to privacy, confidentiality, anonymity, and content-control shall be pursued through policies driven by choice, individual empowerment, and industry-led solutions," he said.

The Philippines is one of the Asian countries using text or short messaging heavily, with each Filipino subscriber sending an average of 252 messages per month, according to Taylor Nelson Sofres, an international marketing information group.

The advertising community in the Philippines has been targeting mobile phone subscribers due to the ubiquity of the service, Roxas added.

Senate OKs national budget

Each senator to get P120-M pork barrel

Posted 11:56pm (Mla time) Mar 01, 2005
By Juliet Labog-Javellana, TJ Burgonio
Inquirer News Service

Editor's Note: Published on page A1 of the Mar. 2, 2005 issue of the Philippine Daily Inquirer


A DAY after expressing her displeasure over the failure of Congress to pass the proposed national budget, President Gloria Macapagal-Arroyo got what she wanted -- a new P907.56-billion outlay for 2005.

The new budget provides for P120 million in pork barrel funds for each senator, down from P200 million, and a P40-million allocation for every member of the House of Representatives, down from P70 million.

In an unprecedented move, the Senate junked last night its own version of the budget and adopted in toto the 2005 budget proposed by the President and approved by the House of Representatives.

Senate President Franklin Drilon said Malacañang was "pleasantly surprised" by the development, which would pave the way for the immediate signing of the budget.

Asked if Malacañang had set a date for the signing, Drilon said: "No, they are still recovering from their pleasant surprise."

He said the Senate secretary general had communicated the adoption of the budget bill to the House.

"Now that we have adopted the House version, we don't need a bicameral conference, and the President can now sign the budget," Senator Manuel Villar, chair of the Senate finance committee, said.

20 affirmative votes

Opposition senators joined the Senate majority in delivering a unanimous 20 affirmative votes in favor of adopting the House version just a day after the President urged legislators, who were not passing the budget and the value-added tax (VAT) bills, not to hold the nation hostage to petty politics.

The Senate earlier approved a national budget which was P240 million lower than the House version.

"The Senate today took the unprecedented and historic move of approving without any amendment House Bill No. 3154 or the [proposed] General Appropriations Act of 2005 by a vote of 20 affirmative votes, no negative votes and no abstention," Drilon said.

Absent senators

Only three senators -- Miriam Santiago, Pia Cayetano and Jamby Madrigal -- were absent when the chamber voted on the budget bill.

Drilon said the approved bill was the same as the one submitted by Ms Arroyo to Congress.

"The Senate feels that the continued uncertainty arising from the failure to enact a new budget is not doing the country any good," he said, adding that the country had been operating on a 2003-level budget.

"The budget is the financial roadmap of the country and a reenacted budget does not augur well for the country," Drilon said.

Drilon said the Senate move should not be seen as bowing to pressure from the President.

He said the administration and opposition senators merely set aside partisan interests to uphold the national good.

Villar said the adoption was in response to the President's call. "She called on us to speed up the passage of the budget and this is a response to her call as well as to the call of our people. We took heed of the people so that we can advance," he said.

Villar said he had broached the idea of adopting the House version to senators in the past weeks.

No pork for Lacson, Drilon, Lim

The Senate went into caucus early last night after Senator Juan Ponce Enrile complained that nothing was happening to important bills.

The senators made the decision during the caucus and later voted unanimously to adopt the House version.

Senator Panfilo Lacson asked the Senate to tell the President not to release the P240-million pork barrel allocated to him, Drilon and Senator Alfredo Lim who all had decided to forego the pork barrel.

Drilon said this should reduce the yearend budget deficit by P360 million. The amount represents the total unreleased pork barrel of the three senators.

He said Senator Juan Flavier also reiterated during the caucus his desire not to avail himself of half of his pork barrel.

Act of statesmanship

Opposition Senator Edgardo Angara described the vote as an "act of statesmanship" for the country's stability.

"A reenacted budget in effect made the whole budget a big, big pork barrel because the projects and programs already funded under that budget would have been substantially completed, and the money would have been released as savings," he said after the vote.

"As you know savings can be reshuffled and re-aligned under the Constitution, and would have given the executive ... a huge pork barrel fund," he added.

Enrile said it was in the "primordial national interest" of Congress to pass a new budget.

"I think the people are entitled to some stability in the financial operations of the government. We can no longer take for granted our fiscal position and budgetary needs. We must show our people that we are a responsible Congress," he said.

Dangerous

Senator Jose “Jinggoy” Estrada said he voted for the adoption of the House version because a reenacted budget was "disastrous" for the nation.

"Reenacting the same budget for the third straight time is very dangerous. I don't want to be cowed by the House," Senator Luisa "Loi" Ejercito said.

By agreeing to approve the budget, Senate Minority Leader Aquilino Pimentel Jr. said the senators had proven to Ms Arroyo that "we are committed to set our economic house in order.

"This is the first priority legislation that we need to pass over and above all the other tax measures that the President is now pushing this chamber to enact," he stressed.

Pimentel added: "This is an extraordinary act of the chamber in response to extraordinary demands of the times."

"This means that we have given the President, the chief executive officer of our country, the strength that she needs in order to address all these difficulties that we are encountering," Senator Ramon Magsaysay Jr. said.

'Wise, old men'

"The Filipino people are crying out for results and the government is being called upon to produce results in the area of meaningful reforms," Senate Majority Leader Francis Pangilinan said.

Senator Rodolfo Biazon said he wanted to vote against the measure but had to "bow to the collective wisdom of this chamber," saying that the senators were not called "wise, old men" for nothing.

"I do hope it will be understood that this is being taken because of a crisis situation," he said.

New Cell Phone Law

I don't know if you've heard, but starting next month you will no longer be able to use a cell phone while driving unless you have a "hands free" adapter. . .

I went to Best Buy and they wanted $50 for a headset with a boom microphone for my cell phone. Having a friend in the cell phone business, I talked with him and was able to come up with an alternative, workin through Office Depot.

These kits are compatible with any mobile phone and one size fits all. I paid $0.08 each because I bought a whole bunch. I can give it to you for free.

I've tried them out on Erickson, Motorola, Nokia and Verizon phones and they worked perfectly.

Take a look and let me know if you want one.

See Photo below:

Right-click > show picture

I can hear you laughing! I thought you could use a laugh.
Remember, Laughter is better for your health than a chocolate candy bar!

Potential ID theft victims eye information

SAN FRANCISCO - Warren Lambert thought it was just another piece of junk mail until he read the letter more closely and learned that con artists may have obtained his Social Security number, name and address — just what they need to steal his identity and ruin his credit.

Lambert is one of nearly 145,000 Americans rendered vulnerable by a breach of the computer databases of ChoicePoint Inc., a leading trafficker in a growing pool of information about who we are, what we own, what we owe and even where we go.

The Georgia-based company began mailing the warning letters after acknowledging this month that thieves opened more than 50 ChoicePoint accounts by posing as legitimate businesses.

Lambert, a retired banker in San Francisco, now spends several hours a day phoning customer service agents, poring over credit card statements, ordering credit reports and checking bank accounts.

He worries that thieves will eventually do to him what sheriffs detectives in Los Angeles say they've done to more than 700 other people — reroute his mail, ring up credit card debts, buy a car or even commit a felony in his name.

"Now I have to be on a credit monitoring service and look over my shoulder for the rest of my life," said Lambert, 67. "I feel sorry for the younger victims who are eventually going to buy a house or a car. They'll try to buy and then they'll discover that their credit is ruined."

More than 9.9 million Americans were victims of identity theft last year, crimes that cost the nation roughly $5 billion not including lost productivity, according to the U.S. Postal Inspection Service. The Federal Trade Commission ranks identity theft as the No. 1 fraud-related complaint.

Many victims are dumbfounded by the dearth of federal and state laws aimed at protecting their credit histories and other information about them that data brokers gather and sell to institutions including news organizations, banks and, increasingly, companies vetting prospective employees. Victims are also frustrated by the amount of time it takes to re-establish identities.

According to a 2003 survey by the San Diego-based nonprofit Identity Theft Resource Center, the average victim spends at least 600 hours over several years recovering from identity theft. And based on wages of people surveyed, it cost the average victim nearly $16,000 in lost or potential income — not including what they might have paid for bogus purchases creditors wouldn't reimburse.

Even worse than the drain on time and income, victims say, is a sense of helplessness and doom they feel — the notion that thieves could strike again at any time.

"I don't think anyone fully recovers from these events," said the resource center's co-executive director, Linda Foley, whose identity was used to get credit cards and a cell phone in 1997. "It alters the way you look at things for the rest of your life."

One victim in the ChoicePoint attack has already filed a lawsuit seeking class-action status in Los Angeles Superior Court.

And on Thursday, Senate Judiciary Chairman Arlen Specter, R-Pa., said he would schedule hearings on identity theft and information brokers in wake of the ChoicePoint fiasco.

The company's chief executive, Derek Smith, said in an interview Thursday with The Associated Press that he supports congressional hearings and tighter regulation of the data collection industry, if necessary. And ChoicePoint issued a statement this week that it was "going to extraordinary lengths to assist people whose identities may have been compromised."

But critics note that the ChoicePoint breach — first detected by investigators in October — didn't become public until the company began complying this month with a California law requiring that people be notified when their personal data is compromised.

Consumer advocates want the data-brokering industry subjected to federal oversight, as credit ratings companies are. And even that industry isn't adequately regulated, critics say.

In December 2003, President Bush signed the Fair and Accurate Credit Transactions Act, which allows consumers to put a free, 90-day fraud alert on their credit reports. The alert forces banks, car dealers and other lenders to apply additional scrutiny whenever anyone tries to apply for credit in that person's name.

Well aware of the law, many criminals who obtain such data horde it for use more than 90 days later.

Gail Hillebrand, a senior attorney with Consumers Union, calls the so-called FACT Act relatively toothless.

"The crooks are getting smarter," Hillebrand said. "Unfortunately the way the law is structured, consumers have to do their own legwork. You have to follow up, write letters, give information."

The "databasification" of information — Internet-connected computer servers that store billions of pieces of information on almost every American — has made it ever easier for thieves to make purchases using personal information stolen from the elderly and the deceased — or even to clone someone else's identity and live and work under it.

The ChoicePoint attack may be an example of something else — fraud perpetuated by an organized crime ring. A Nigerian was sentenced to 16 months in jail for his alleged role in the scam, which authorities say spanned about a year. He has refused to cooperate with authorities, they say, but the volume of compromised data is so huge he can't have acted alone.

ChoicePoint also won't reveal details of the crime, citing an ongoing investigation. And that's incredibly frustrating for Lambert, who can't find out what exactly is in his ChoicePoint dossier beyond his name, address and Social Security number.

After spending hours on the phone with ChoicePoint representatives, he was told Thursday that he had to sign a release simply to find out what information the company kept on him.

"They have no damage control. Nobody knows what they're doing," Lambert said of ChoicePoint. "It's beyond comprehension that in the 21st century this could happen."

Smuggled Goods Flood Malls and Markets

Our latest offering is a four-part series on smuggling in the Philippines. The series begins by giving an overview of the extent of the problem: the estimate of the revenues lost to smuggling range from P89 billion to P200 billion a year, enough to wipe out a big chunk of the budget deficit and to finance the building of thousands of schools and one million low-cost houses.

The series examines the impact of housing on both agriculture and industry. Farmers cannot sell their produce because the market is swamped with cheap imports and manufacturers are forced to downsize or close down operations because of the entry of dirt-cheap smuggled products.

Almost every industry in the country has been affected: illegal imports range from onions to shoes, from chicken legs to pork belly, to floor tiles, tires, garments, resins (used to make plastics) and even charcoal. These wares flood both wet markets and upscale malls, easing out local goods.

The series cites the example of onion farmers in Nueva Ecija and shoemakers in Marikina who are being driven out of business by smuggling. It focuses on technical smuggling-which involves the misdeclaration undervaluation, misclassification of goods, and other kinds of importation fraud. It shows figures from industry organizations and government studies to show that technical smuggling is now being done on a massive and unparalleled scale.

Technical smuggling, in fact, is the main way in which goods are brought into the country. Outright smuggling, where goods are slipped in without going through Customs, is minor in comparison. And yet, the Bureau of Customs does not acknowledge the magnitude of technical smuggling in the country, much less take measures to contain it. The series examines the collusion between Customs officials and technical smugglers as well as the inability of government agencies to get their act together on smuggling.

BONGABON, NUEVA ECIJA ­ In 1987, Carlito and Lita Bayudan, both New People's Army guerrillas, came down from the hills to begin a new life in this quiet farming town northeast of Manila. About to become parents for the first time, they traded their rifles for hoes, venturing into onion farming, the occupation of 80 percent of Bongabon residents. The young couple knew they would have to work hard, but they looked forward to a simple and peaceful life. Seven years later, Lita Bayudan finds herself in the midst of another battle ­ this time against smugglers.

Now a 34-year-old widow and mother of two, Ka Lita has gone from monitoring troop movements in the hinterlands to monitoring the volume of smuggled onions from China that are being sold in Divisoria. She has reason to be vigilant: this December, the cooperative to which she belongs is expected to make the first payment on a P750,000-loan, and she fears that they might not have enough cash because smuggled and dirt-cheap Chinese onions have flooded the market. "The money to pay for our loan is in storage," says Ka Lita, referring to the sacks and sacks of onions that they had harvested and now cannot sell without absorbing a huge loss. Ka Lita knows that the problem of smuggling is not new.

But even government agencies and officials say the situation has gone from bad to worse, with technical smuggling ­ which includes misdeclaration of goods, undervaluation, misclassification, and other kinds of importation fraud ­ now being done on a massive and unparalleled scale. Almost every industry in the country has been affected as illegally imported products now range from onions to shoes, to floor tiles, tires, garments, resins (used to make plastics) and even charcoal, with these wares flooding both wet markets and upscale malls and easing out locally produced goods.

Because this has meant cheaper goods at a time when the peso's buying power is at its weakest, consumers are not complaining. But what many don't see is the hundreds of billions of pesos bilked out of the government in the form of lost tax revenues each year, as well as the massive layoffs and bankruptcies that are now taking place in sectors that cannot compete with smuggled goods. Meanwhile, the anti-smuggling efforts of the government and the private sector are being defeated by unscrupulous traders and corrupt and incompetent state officials and personnel, especially those at the Bureau of Customs. Even incentives meant to encourage exports have been abused by technical smugglers.

The amounts of money involved are staggering. Last year, for example, a report by the United Nations Conference on Trade and Development or Unctad showed that, based on the records of the country's trading partners, imports to the Philippines totaled $45.4 billion. Philippine government records, however, reported imports of only $34.5 billion. The discrepancy of $10 billion could most likely be accounted for by smuggled goods. This translates into a P86-billion tax revenue loss for the government, given an average duty rate of 6.19 percent in 2003 according to the Tariff Commission, 10 percent value-added tax, and an exchange rate of P54.20 to the dollar for that year.

That P89.4 billion, however, would cover only the unpaid duties and taxes on the $10-billion worth of "missing" goods. As much as 60 percent of all imports may be assumed to be non-dutiable, with some of them supposedly meant for re-export. But re-exporting often doesn't happen, as the imported goods end up being sold locally. Even if one assumes that only one-fourth of all non-dutiable imports involved some form of fraud, the total revenue loss for the government could reach as much as P200 billion.

The Fair Trade Alliance (FTA) and the Federation of Philippine Industries (FPI) estimate that tax leakage from the collection of import duties and taxes is P174.2 billion annually, or P52 billion more than what the finance department claims could be generated from the president's proposed new tax measures. Former Sen. Wigberto Tañada also pointed out that the amount of leakages could pay for one million new low-cost houses every year or 11,611 school buildings with 30 classrooms each. It could also be used to finance 11,613 barangay health centers, each measuring 30 square meters and with minimum equipment worth P1.5 million, or perhaps 19,352 kilometers of concrete roads. Tañada, who is the FTA's lead convenor, added that the amount of uncollected import duties translates to an annual subsidy of P58,056 for three million Filipino farmers.

The likes of Ka Lita prefer earning their own keep instead of relying on subsidies. To recoup their investment and generate some profit, onion farmers should sell at a farmgate price of at least P650 per 30-kilo bag or P26 a kilo. The going rate these days, however, is more like P480 per bag or P19 a kilo. Some traders even want to buy at P17 a kilo, which is how much Chinese red onions are being sold for. "Luging-lugi (We will have to take a huge loss)," complains Ka Lita, who worries that she might be sued for estafa if her cooperative defaults on its loan. As the cooperative's president, she signed the loan papers and the six postdated checks her group gave the lender.

Ka Lita knows this wouldn't have happened if those who were supposed to be keeping watch were doing their jobs properly. But not one of the agencies she approached would own up to its responsibility regarding the matter. Because the Bureau of Customs (BOC) is supposed to monitor the importation of goods, among other things, Ka Lita asked a representative of the agency why it was allowing imported onions when the Bureau of Plant Industry (BPI) was not issuing permits needed for these. She says she was referred to the Plant Quarantine Service, which the customs representative said had the duty to detect imported onions that didn't have these permits. Ka Lita reports that the respective chiefs of the BPI and the Plant Quarantine Service had no concrete answer to her queries about the illegal imports.

"They're pointing at each other," the diminutive ex-rebel says in disgust. She says she told them to meet face to face so that they would stop blaming one another. There is no doubt, however, that the customs bureau is supposed to be on top of matters when it comes to imports. The bureau does not deny that smuggling exists, but downplays the extent of revenue losses due to smuggling. No mention of such losses were made when the BOC made a presentation before the now-defunct Cabinet Oversight Committee on Anti-Smuggling (COCAS).

On the contrary, even as government insiders and businessmen complain of escalating technical smuggling, the bureau has been crowing about its achievements. Its 2003 annual report says that it had exceeded its collection target of P100 billion by "a whooping (sic) P13.055 billion or 13 percent higher than the target." It calls last year "a moment of triumph." What its report leaves out, however, is how much higher the collected revenue would have been were it not for what insiders, businessmen, and observers describe as rampant technical smuggling. Many say technical smuggling cannot exist without the collusion of unscrupulous traders and corrupt government personnel and officials. In an interview, Customs chief George Jereos describes corruption in his agency as being "petty." But many other people think otherwise.

To begin with, economists and businessmen say, the BOC's targets are too low. "You start from a low base due to technical smuggling and corruption, your projections will be lower than what they should be," says economist Nonoy Oplas, who also heads the Minimal Government Movement. Even the defunct National Anti-Smuggling Task Force (Nastaf) described the bureau's collection targets as "unrealistic/too low" in its final report to President Arroyo. Nastaf also said that Customs collection has failed to keep pace with the growing value of imports.

Citing data from the National Statistics Office, Nastaf noted that the ratio of collection to the value of imports has declined through the years. In 1995, it said, Customs collected P1 billion for every P7 billion worth of imports. By 2002, P1 billion was collected for every P19 billion worth of imports. Oplas says that even if tariff rates are declining because of the country's commitment to the World Trade Organization and other trade agreements, these could still be compensated by larger import volumes. "If percent increase in imports volume is much larger than percent decrease in tariff rates," he says, "then total collections should still increase." Observers say one only has to look at official figures to realize that the customs bureau is probably doing its math wrong if it feels entitled to puffing its chest. In 2003, for example, 67 percent of imported yarns were entered in the customs ledgers under warehousing, which means these were supposed to be re-exported as part of finished products. Yet only five of the top 20 yarn importers were included in the Garments and Textile Export Board's (GTEB) list of Top 100 garment exporters for that year.

The same was true for fabrics: 80 percent of the total imports for 2003 were declared under warehousing. Of the top 20 fabric importers, only 11 were listed among GTEB's Top 100 garment exporters. Garment industry insiders surmise that much of the "warehoused" fabric and yarns were sold to the domestic market without the importers paying any taxes. As incentive to exporters, warehousing entries ­ which are called such because they have to be stored in a customs-bonded warehouse ­ are tax- and duty-free. Jose Sereno, executive director of the Association of Petrochemical Manufacturers of the Philippines (APMP), believes something similar has been happening in the petrochemical industry. He says that as late as 1998, only 25 percent of imported resins were placed in customs-bonded warehouses.

Today, close to 72 percent are being placed under warehousing. "This is questionable because we do not see an equivalent increase in exports of plastic products," says Sereno. "Besides, many of the local resin users are APMP's clients, so we know their volume of consumption." Overall figures quoted in a Nastaf report indicate that this may have already become a common experience among Philippine businesses. In the first half of 2003, imports declared as warehousing comprised 42 percent of imports, while consumption entries, meaning imports bound for the domestic market, made up the remaining 58 percent. In 2002, imports totaled $35.4 billion, of which $15.5 billion, or 44 percent, was declared as warehousing entries. Only 4.8 percent of the imports declared under warehousing, however, were re-exported. "At least 95 percent of warehousing entry may have been diverted to the domestic market,"said Nastaf.

The rise in the proportion of consumption and warehousing entries means that an increasing volume of imported products are being placed in customs-bonded warehouses purportedly for re-export. Without a corresponding rise in export figures, however, it is likely that a generous share of the warehouse entries wound up in the local market. Still another indication of the rampant diversion of imported items declared as warehousing entries is the accumulation of uncollected bonds that had been posted by importers.

The Nastaf report estimates these to be anywhere between P5 to P10 billion annually. Data provided by Customs meanwhile show that the value of unliquidated/expired bonds for 2000 to 2003 is P1.27 billion, covering the Port of Manila, the Manila International Container Port, and the Ninoy Aquino International Airport. The bureau says this figure represents 95 percent, "more or less," of its total expired bonds for the same period. Customs bonds are intended to guarantee payment of taxes and duties as well as other charges in case a company that has warehousing entries does not re-export these as intended. Articles entered for warehousing may remain in bonded warehouses, owned and operated by the importers, for a maximum of one year, from the time these arrived at the port of entry.

Surety companies that issue the bonds are supposed to collect those that are forfeited, but this rarely happens. Under the present system, Customs does not go after the importer that does not re-export warehoused items, but is supposed to hunt down the surety companies that issued the bonds. More often than not, however, these companies fold up as fast as they are formed. It may seem unlikely that illegally imported onions were passed off as warehousing entries and then later dumped in the local market and spelled doom for the modest dreams of Ka Lita, who is now growing other vegetables while contemplating what to do next with her cooperative's onion stock. But representatives from several industry sectors say the absence of audits has made anything possible in the customs warehousing system.

They say some importers even make it appear that they exported items placed in customs-bonded warehouses through what insiders call "paper exporting": they rent a container and ship it empty to a foreign port.

"Nobody in Customs is checking," says a broker. "If I want to send a bomb to New York, the best place to ship it from is Manila."

Next: Fictitious firms, fake papers used in smuggling

............ We have flown the air like birds and swum the sea like fishes, but have yet to learn the simple act of walking the earth like brothers. - Martin Luther King ............

Senate Bill No. 1840 - Connecting Subic, Clark & Manila

Introduced by Senator Richard J. Gordon

EXPLANATORY NOTE
The State is primarily tasked to promote entrepreneurship and create job opportunities through full and efficient use of its resources. Infrastructure assets such as the three (3) airports in Subic, Clark and Manila, two (2) seaports in Subic and Manila, and one (1) connecting highway and railway in Luzon, when integrated and optimized effectively and efficiently, and vast idle lands nearby, when utilized gainfully as Special Economic Zones to accommodate industrial, agricultural, tourism and other enterprises with the direct participation of the local government units and the private sector as collective stakeholders, could become an economic engine of growth to encourage entrepreneurship and investments and create job and business opportunities.

The State must be aggressive in taking advantage of the strategic infrastructure in Subic, Clark and Manila as international transportation hubs. The development of Special Economic Zones in the municipalities nearby, bordering the highway and railway and connected to the airports and seaports in Subic, Clark and Manila must be encouraged as this will bring jobs to the people and work to the workers and promote a rising standard of living and an improved quality of life for all.

The development of these Special Economic Zones will embody a decentralized local government and private sector-led development that will display the potential that can be achieved when local people set their own priorities and initiatives. Overcrowded areas will be decongested, as industries will be dispersed to other locations in Luzon, because of the global accessibility and direct access of Subic, Clark and Manila to domestic and foreign markets worldwide by air, by land and by sea.

To fully utilize Subic, Clark and Manila as international service and logistic centers in the Asia-Pacific region, a law strengthening and expanding the powers of the Subic Bay Metropolitan Authority and the Clark Development Corporation, allowing them to develop other Special Economic Zones in Luzon to optimize the three (3) airports in Subic, Clark and Manila, two (2) seaports in Subic and Manila, and one (1) connecting highway and railway in Luzon, and for other purposes must be enacted to empower the local communities to chart their own destinies and ensure local growth and nationwide economic success.

Senate Bill No. 1866 - Volunteerism

Introduced by Senator Richard J. Gordon

EXPLANATORY NOTE
It is the policy of the State to inculcate patriotism and nationalism, and encourage the involvement of the people in public, social and civic affairs that promote the welfare of the nation. As such, this proposed legislation seeks to encourage volunteerism, which is service without compensation in a non-profit organization or governmental entity, as a value that the State should recognize, promote and develop among its people. The spirit of volunteerism reflects the ability of a people to put the interests of the community before their own, and the foresight and maturity to appreciate the value of short-term sacrifice for long-term gain.

The positive experience of the people of Olongapo City regarding the conversion of the former Subic Naval Base into a self-sustaining industrial, commercial, financial and investment, and tourism and recreation center is a sterling example of the feat that volunteerism can achieve. The willingness to work for a cause and not just for compensation brings out the best in the Filipino, which must be encouraged and replicated, if the nation is to rise from the ashes of its present fiscal difficulty. However, the willingness of volunteers to offer their services is deterred by the potential legal liability that may arise out of their endeavor. As a result, many non-profit organizations and governmental entities, including voluntary associations, social service agencies, educational institutions, and other civic programs, are adversely affected.

The contribution of these non-profit organizations and governmental entities to specific communities, in particular, and the nation, in general, is thereby diminished, resulting in higher costs and fewer benefits than would be obtainable if volunteers were participating. Because of the problems created by the legitimate fears of volunteers about frivolous, arbitrary and capricious legal actions against them, the protection of volunteers through the clarification and limitation of liability risks that they assume is, therefore, an appropriate and important subject for legislation.

This bill also allows the grant of incentives to volunteers in the form of insurance for injury, sickness, disability, or death of the volunteer during his or her incumbency in a non-profit organization or governmental entity. It also allows the giving of a token of recognition after the accomplishment of volunteer work, to the volunteer, for services rendered in a non-profit organization or governmental entity . Such measures reflect the protection and importance that volunteers deserve for performing a service crucial to the development of the nation.

Subic Freeport Generates More Jobs for Central Luzon

SUBIC BAY FREEPORT, Jan 21 - Employment figures here reached 55,875 at the end of 2004, reaffirming the Subic Bay Metropolitan Authority's (SBMA) commitment to uplift the living condition of Central Luzon residents by generating more job opportunities.

"The continuing development of Subic is essential for the employment opportunities it creates for the people. The investments we bring into the Freeport directly translate into more jobs for our fellowmen," said SBMA administrator Alfredo C. Antonio.

According to the SBMA Labor Department's periodical report, the total manpower in the Freeport last year reached 55,875, posting a nine per cent increase from 2003 figures.

Department manager Severo Pastor said a total of 32,812 applicants were hired by Freeport locators in 2004 but only 4,389 new jobs were added to 2003 figures due to cases of resignations or end-of-contracts.

Statistics showed that the top employers in Subic were service-oriented companies engaged in various tourism-related businesses such as hotels, restaurants, duty-free shops, trading and transportations, among others, which hired 33,322 workers or 59.64 per cent of the total year-end figure.

Manufacturing companies, which employed a total of 18,636 workers or 33,35 per cent of total hires, maintained their position as the second biggest Freeport employer while a total of 3,371 workers or 6.03 per cent were hired by construction outfits.

Pastor said that investors, particularly those engaged in manufacturing, banked on the skills and knowledge of Filipino workers, which he believed, was one of the aspects that contributed to the Freeport's increased export figure of US$712 million last year.

Olongapo City, where 26,847 workers or 48.05 per cent of workers in the Freeport come from, remains the biggest source of workers for Subic investors.

A total of 9,841 workers or 17.61 per cent are from Zambales, while 8,260 or 14.78 per cent from Bataan and 1,765 or 3.16 per cent from Pampanga.

Meanwhile, Antonio assured that the Freeport would generate more new jobs this year as five new manufacturing firms have pledged to infuse some P1.87 billion worth of investments into Subic.

In addition to the entry of new investors, Antonio also noted the expansion programs to be implemented soon by Japanese firms at the Subic Techno Park (STEP) such as computer micro-motor maker Nidec and automated teller machine (ATM) manufacturer Top Mechatronic Corp. (Subic).

"The continued growth of Subic will definitely have a positive impact not only on its neighboring towns and cities but also on the rest of Central Luzon," he said.

Nidec is set to open some 600 new jobs to nearby residents in a mini job fair which will be held on Monday at the Rizal Triangle covered court from 9:00 a.m. to 2 p.m

Globe Telecom OK’s plan to invest $60M in Subic

Globe Telecom Inc. had approved plans to invest $60 million in Subic Bay that involves the roll out of fixed line services in the industrial zone.

Globe assistant vice president Froilan Castelo said Innove Communications Inc., which continue to market and sell the Globelines and Globequest services, has applied at the Subic Bay Metropolitan Authority (SBMA) to provide lease line and local exchange services to residential and commercial customers of Subic Bay.

Subic Telecommunications Co. Inc. used to be the sole provider of wireline-based services in Subic Bay until its contract expired last year.

This development, Castelo said, provided an opportunity for other operators like Innove to come in and offer their services.

“Subic Bay is now open to other players. Innove and Liberty Telecom are those that applied to provide telecom services there,” he said.

Liberty also intends to provide wireless and radio communication facilities to the area, he added.

Castelo said they expect SBMA to come up with a decision on Innove’s proposal within the first quarter of this year.

If Innove’s application is approved, Castelo said it will take six months to one year to roll out the entire infrastructure.

SBMA, he said, will also have to decide how long Innove can operate there.

“The duration of the contract depends entirely on SBMA. We don’t have the exact figures as to the total number of customers we can serve there, but it’s a lot like the Ortigas business district in terms of size. So it’s quite lucrative. It will involve an investment of bout $60 million,” he said.

Subic Telecom, a wholly owned company of Philippine Long Distance Telephone Co. (PLDT) that offered telecommunications services and products to corporate and residential customers in the Subic Bay Free Port Zone, reportedly failed to cope up with the latest technology, that’s why the SBMA wanted other players to come in.

“The SBMA felt the service they [Subic Telecom] offer has not been enough,” Castelo said.

Subic Telecom started as a joint venture of PLDT, SBMA and American Telegraph & Telephone.

PLDT bought 40 percent of AT&T’s stake in Subic Telecom in 2001 for $8 million.

PLDT is also the parent firm of mobile-phone giant Smart Communications Inc., the fierce rival of Globe in the cellular-phone industry.On the other hand, SBMA is currently chaired by Francisco Licuanan III, the former president of Ayala Land Inc. (ALI).

Both ALI and Globe are publicly listed companies majority owned by the Ayala group.

Globe planned new investments proved that the firm is unfazed by the last Fitch rating agency’s negative outlook on the two company and the PLDT.

Globe Telecom chief finance officer Delfin Gonzalez said he sees “no impact on our borrowing next year as we have no plans to raise new bonds.”

The London-based credit-rating agency has revised its outlook on Globe’s long-term foreign currency rating to negative from stable, while affirming the rating at “BB.”

Meanwhile, Globe’s debts stood at $926 million as of end-September, of which 80 percent are foreign-denominated, Gonzalez said.

The debts of the country’s second-largest phone firm include P58.6 billion worth of long-term borrowings that will mature between 2003 and 2012 and a P7.4-billion short-term debt that will mature 180 to 360 days from drawdown.

“The rating does not reflect any adverse changes in the stand alone credit profile of Globe. This merely follows the same action they took with the sovereign rating outlook,” the Globe official said.

Globe is expected to incur P2.3 billion in foreign exchange losses as a result of the new international accounting standards. Gonzalez said the P2.3 billion in exchange loss will not going to affect the company’s bottomline.

“There will be P2.3 billion in capitalized foreign exchange losses to be charged to retained earnings. We will adopt this in January next year but it won’t affect the company’s bottomline,” he said

BCDA, SBMA more harmonized

The new leadership of Bases Conversion Development Authority (BCDA) and Subic Bay Metropolitan Authority (SBMA) have strengthened the complementation of these two special economic zones as the country’s international logistics hub. BCDA president and chief executive officer Narciso L. Abaya would like to ensure that adequate infrastructure will be built connecting both zones. Clark and Subic will be connected by an expressway.

It will also be complemented by the construction of North Rail. Economic activities generated from these two huge developments are expected to result in a spill over to the rest of Central Luzon. The commitment of both agencies will be forged during the Subic-Clark Alliance for Development Forum to be conducted next week. The forum will also be a venue for the new heads of agencies to be familiar with the SCAD concept and at the same time know the thrusts and future plans and projects of their counterpart agencies.

Abaya said the unified direction toward SCAD’s long-term plans and programs in relation to each agency’s plans and programs will be discussed. We want to identify the bottlenecks, policies as well and hope to address them holistically," he added

Subic volunteers remembered

SUBIC BAY - Newly-installed officials of the Subic Bay Metropolitan Authority (SBMA) on Wednesday recognized the contribution of residents of Olongapo City and nearby areas who helped man the Subic Bay Free Port right after the former United States military base was turned over to the Philippine government in 1992.

In a program celebrating “Volunteers Day” here, SBMA Chairman Jose Licuanan III and SBMA Administrator Alfredo Antonio stressed that cooperation among various stakeholders in Subic is necessary for economic success.

Antonio and Licuanan, who took over the SBMA on October 16, joined local officials in paying tribute to Subic’s volunteers, mostly former base workers, who gave their services for free during the first few years of Subic under the Philippine-government management.

Sen. Richard Gordon, who became the first SBMA chairman, was the guest of honor during the celebration, which included a victory march from Mariquit Park in Olongapo to the free port’s central business district.

Antonio, who urged SBMA employees and former volunteers to work hand in hand to further develop Subic, stressed in his message the continuing need for individual initiative and selflessness that the Subic volunteers personified.

“You have proven what the Filipino is capable of becoming and achieving… Today, your greatest challenge is to inspire more Filipinos to become more genuinely committed to the common good,” Antonio said.

He also told the volunteers that the current SBMA administration is determined “to build upon whatever you have achieved and left here in Subic.”

Licuanan similarly praised the volunteers for helping build the foundation of the free port, adding that people working together for the common good “may be the only hope of our nation.”

Noting that the history of Subic mirrors that of the country, Licuanan said that volunteerism is necessary “if we are to dig ourselves out of this downward [economic] spiral.”

Meanwhile, Gordon recalled in an emotional speech the early days of SBMA when he called upon Olongapo residents to help him preserve the former military base.

“We have gone a long way. So many people said that it cannot be done, but here we are all today, celebrating Volunteers Day. We have gone through so much [and we have earned] the respect of the world because of our dedication and efforts,” Gordon told the volunteers.

During the program, Gordon also led the volunteers in offering flowers and prayers to former volunteer and SBMA chief operating officer Ferdinand Aristorenas who died in 2001.

EMPOWERING A SENIOR OFFICIAL OF THE SUBIC BAY METROPOLITAN AUTHORITY TO COMBAT VIOLATIONS OF CUSTOMS LAWS AT THE SBMA AREA

MALACAÑANG

Manila

BY THE PRESIDENT OF THE PHILIPINES

EXECUTIVE ORDER NO. 384

EMPOWERING A SENIOR OFFICIAL OF THE SUBIC BAY METROPOLITAN AUTHORITY TO COMBAT VIOLATIONS OF CUSTOMS LAWS AT THE SBMA AREA

WHEREAS, the development of Subic and Clark as the best logistics hub in the region is the one of the ten points of the legacy agenda of the Administration;

WHEREAS, large-scale smuggling and fraud upon customs and other related practices undermine the economy and national security;

WHEREAS, the prevention and suppression of smuggling and other related practices against customs laws at the Subic Bay Freeport and all areas under jurisdiction of the Subic Bay Metropolitan Authority (SBMA) is one of the urgent concerns of the Administration;

WHEREAS, the empowerment of the Senior SBMA Official to combat violations of customs laws at the SBMA are is necessary to effective counteract this form of economic sabotage, strengthen the system enforcing revenue law, and hasten the realization of one of the 10-point agenda:

WHEREAS, the Administrative Code of 1987 vests the President with the continuing authority to recognize the Office of the President and to transfer functions of one department or agency to another:

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the Philippines, by virtue of the power vested I me by law, do hereby order:

SECTION 1. EMPOWERMENT OF SENIOR SBMA OFFICIAL. The President shall designate a Senior SBMA official to combat smuggling, unlawful importations, and other frauds upon customs laws committed at the Subic Special Economic and Freeport Zone (SSEFZ) area. He shall be recognized as the SBMA Director for Anti-Smuggling.

SECTION 2. DETAIL OF PERSONNEL. The SBMA Director for Anti-Smuggling is hereby authorized to obtain the detail to him of personnel from the Intelligence Service Armed Force of the Philippines, the Armed Force of the Philippines, and the Philippine National Police. He is likewise authorized to obtain augmentation of personnel from the Bureau of Customs and the Department of Justice for the issuance of warrants of seizure and detention, investigation and prosecution. He shall designate his deputy.

SECTION 3. POWER AND FUNCTIONS. The SBMA Director for Anti-Smuggling shall have the following powers and functions:

Prepare and implement appropriate and effective measures to prevent and suppress large-scale smuggling and other prohibited and unlawful importations at the SSEFZ area.
Effects, subject to applicable laws, searches, seizure and arrest, and file administrative and criminal cases conformably with the provisions of the Tariff and Customs Code of the Philippines, as amended, pertinent provisions of the Revised Penal Code, as amended. And the Rules of Criminal Procedure.
Conduct intelligence and counterintelligence operations, including the monitoring of situation, circumstances, and activities of individuals, groups and entities who are involved in or who are reasonably believed to be behind smuggling activities.
Select and recruit personnel from SBMA, and officers, enlisted personnel and civilian agents from the AFP, the PNP and the Coast Guard as well as Customs and DOJ personnel who will be in detail with him.
Enlist the assistance of any department, bureau, office or agency of the government to carry out its functions, including the use of their personnel facilities and other resources.
Conduct verification with the Bureau of Customs of all documents pertaining to the importation and the payment of duties and taxes of al imported articles.
Perform such functions and carry such activities as may be directed by the President.
SECTION. 4. SPECIAL PROCECUTORS. To assist the SBMA Director for Anti-Smuggling in the expeditious prosecution of criminal and other cases involving large-scale smuggling and customs frauds. DOJ layers shall be placed on detail with the SBMA Director for Anti-Smuggling as the need arises.

SECTION 5. AUTHORIZATION. The Commissioner of the Customs or his authorized representative shall, if necessary issue such authorization and orders required under the Tariff and Customs Code for all purposes relevant to the effective exercise and performance of the powers and functions of the SBMA Director for Anti-Smuggling.

SECTION 6. FUNDING. – Subject to the usual audit, the SBMA Director for Anti-Smuggling shall be provided with an allocation to be determined by the Chairman of the SBMA. To be sourced from the SBMA.

SECTION 7. OPERATING GUIDELINES. The SBMA Director for Anti-Smuggling shall adopt. In coordination with customs law enforcement agencies, such operating guidelines as may be necessary to implement this Executive Order. He shall submit to the SBMA Chairman reports of his activities with appropriate recommendations for the information and guidance of the SBMA Chairman.

SECTION 8. COORDINATING INSTRUCTIONS. Close coordination and cooperation shall be undertaken by the SBMA Director for Anti-Smuggling with the Bureau of Customs, Philippine Ports Authority, ISAFP, NICA, AFP, PNP, BIR, LTO, Philippine Coast Guard, SBMA, and all other agencies which may be involved in carrying out the mission and functions of the SBMA Director for Anti-Smuggling.

SECTION 9. REPEALING CLAUSE. All orders, issuances, rules and regulations or parts thereof which are inconsistent with this Executive Order are hereby repealed or modified accordingly.

SECTION 10. EFFECTIVITY. This Executive order shall take effect immediately upon its publication in a newspaper of national circulation.

Done in the City of Manila, this 18th day of November in the year of our Lord, Two Thousand and Four.

(Sgd.) GLORIA MACAPAGAL-ARROYO

By the President:

(Sdg.)EDUARDO R. ERMITA

Executive Secretary

GORDON WANTS SMUGGLER'S LIST

Senator Richard Gordon condemned the officials of the Bureau of Customs (BOC) for not having any official watchlist of top smugglers in the midst of investigations on alleged smuggling activities in Subic, Clark and other crucial exit points in the country. During the Senate investigative hearing today of the Senate Committee on Trade and Commerce, BOC Commissioner George Jereos admitted, through Gordon's prodding, that they do not have an order of battle against smugglers explaining that the bureau's head of intelligence has just resigned from his post two weeks ago, hence, they cannot produce the said information being asked. Gordon criticized the bureau officials' dereliction of responsibility, adding that they should be properly charged legally. “If there is no list, then you are all in neglect of duty, so gross that all of you are liable for the anti-graft and corrupt practice act because you are not doing your duty,” Gordon told the officials.

At an earlier forum with members of the Foreign Correspondents Association of the Philippines today, President Gloria Macapagal-Arroyo reported strides under her administration against smuggling saying that the BOC and the law enforcement agencies such as the PNP and the AFP as well as the Coast Guard have an order of battle against an identified list of 200 smugglers. “I am flabbergasted that the BOC do not have the records and listings concerning the smuggling in the country,” Gordon said adding that “we are talking here not just of smuggling of cigars and liquors but also of vegetables, ‘ukay-ukay' merchandise, cellphones, drugs, and vehicles. There have been individuals convicted because of drugs but nobody has ever been jailed because of smuggling. It is time that we nail them.”

Gordon asked committee chairman Senator Mar Roxas to “subpoena the BOC of all the records including a watchlist of all the people involved in smuggling in Subic, Clark and other sensitive areas in the country” so that they will be able to identify who are involved and immediately take necessary actions against them. He also presented a partial listing of cigars and cigarettes brought in through Subic and Clark from 2001 to 2003. The records showed that 15 billion pesos worth of cigarettes and liquor have been brought in to Subic and Clark without any documentation on where they went