Bt Investments Blog

By Lilybeth G. Ison

MANILA, March 6 — Former Defense Secretary and Lakas-Kampi-CMD standard bearer Gilberto "Gibo" Teodoro Jr. on Saturday said one way of effectively neutralizing narco-politics is the possibility of reviewing the bank secrecy laws, which has become a convenient refuge for drug criminals and scoundrels in government.

"The laws on bank secrecy and confidentiality of tax returns were meant to protect the privacy of good individuals presumably from criminal syndicates. The law, however, has favored criminals and corrupt officials to a much greater degree because it has long provided protective cover by allowing the unscrupulous to hide the proceeds of their criminal act," he said.

The basic law on secrecy of bank deposits is the Bank Secrecy Law, which was passed more than 50 years ago and sought to encourage people to deposit their money in bank, as well as discourage hoarding which became a common practice during the Japanese occupation.

The law provides that "all deposits of whatever nature with banks or banking institutions in the Philippines, including investments in bonds issued by the Government of the Philippines, its political subdivisions and its instrumentalities, are considered as being of an absolutely confidential nature and may not be inquired or looked into by any person, subject to some exceptions." Over the years, subsequent exceptions have been allowed by other laws.

The 1989 Philippine Bar Exam topnotcher and Harvard-trained lawyer said a possible work-around solution may include stiffer penalties for banks in cases where a depositor's account is leaked to criminal elements.

The US State Department recently released its 2010 International Narcotics Control Strategy Report, which stated, among others, that the Philippines drug problem continues to pose a significant national threat despite reports of a possible decline in the supply and demand of illegal drugs in parts of the country.

The report pointed out that "with the upcoming 2010 elections, there is fear that illicit narcotics funds may affect election results."

Teodoro said the dire warnings that narco-politics could influence the outcome of this year’s elections should not be ignored, considering that the country’s porous borders and undermanned coastlines have made it highly vulnerable to the dangers of illegal drugs.

The country’s erstwhile youngest Defense Secretary noted that owing to budgetary constraints, the Armed Forces of the Philippines (AFP) and Philippine National Police (PNP) are understaffed and ill-equipped to guard the country’s 36,000-kilometer coastline.

As such, he urged the public to be vigilant in the campaign against illegal drugs.

Teodoro also called on the government to prosecute the politicians linked to illegal drug trade if they have evidence to pin them down.

He also stressed the need for more training for the country’s drug enforcement agencies to effectively go after drug syndicates, as well as the fine-tuning of laws to stop narco-politics in the Philippines.

"We must retool the Philippine Drug Enforcement Agency (PDEA) and other law enforcement agencies to prevent this from happening," he said.

Teodoro said providing more funds for law enforcement agencies and equipping them with better training in investigation techniques will minimize the incidence of cases reaching the courts which do not prosper because of procedural lapses by lawmen.

He added that the legislature must craft tougher laws that will severely penalize political beneficiaries of known drug lords or syndicates.

The Lakas-Kampi-CMD presidential bet also said this was the reason he was calling for the completion of the "Coast South Watch" project, which is being implemented by the Philippines in cooperation with the United States and Australia, to set up radars, maritime surveillance and patrols in the country’s ports, particularly in the porous islands of Mindanao.

The project, he said, would help prevent threats to the national security like international terrorism, and transnational crimes like human smuggling, illegal gun trading, and narcotics trafficking. (PNA)

LAP/LGI

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A DAY before they embark on the campaign trail, presidential candidates yesterday zeroed in on curbing corruption as a means to improve the economy once they are elected into office.

Senator Benigno Simeon "Noynoy" C. Aquino III of the Liberal Party, vowed to improve tax collection efficiency by 15% "instead of raising the rate of taxes or imposing new ones..."

He noted the need "to first solve the root of the problem -- be it ineffectiveness or corruption -- before imposing any more burden to the people."

At the same presidential forum at the University of the Philippines in Diliman, Quezon City, Nacionalista Party standard-bearer Senator Manuel B. Villar, Jr. said addressing the budget deficit by increasing revenue collection and adopting income-generating programs are crucial steps for the next administration.

"The next administration would be faced with the problem of how to confront the deficit, and the first year [of the new administration] would be very difficult. There is a need to enhance revenue collection coupled with a massive program to attract investments and develop agriculture," he said.

Recent independent surveys on voting preference show a closing gap between Messrs. Aquino and Villar, with one result showing the two front-runners as statistically tied.

For his part, former Defense secretary Gilberto C. Teodoro, Jr. of Lakas-Kabalikat ng Malayang Pilipino-Christian Muslim Democrats (Lakas-Kampi-CMD) proposed an incentive-based approach to curbing corruption. The administration bet is running fourth in noncommissioned surveys.

"What we need to do is to reduce the instances of temptation and focus more on the prevention of corruption rather than the post-event punishment by providing more incentives to our customs and revenue collection agencies than the present attrition law provides," he said.

A leadership-by-example approach was put forward by Senator Richard J. Gordon of Bagumbayan to entice investments.

"There would be an outpouring of foreign direct investments if there is no threat of corruption in the country. Also, the investment policies should be predictable and simple so as to entice investors. It is also important that the leader and his officials be known for their incorruptibility, this is very attractive, so we have to make sure that corruption is banished forever," he said.

For his part, environmentalist and independent candidate Jesus Nicanor P. Perlas vowed to create a department for civil society affairs to ensure transparency.

"I plan to mainstream civil society and NGO (non-governmental organization) into the government by creating a new Cabinet position catering to them. In this way, they would not only be consulted they would directly be represented, thus balancing the power of society usually limited to the Executive, Legislative and Judiciary branches," he said.

Senator Ma. Ana Consuelo "Jamby" A. S. Madrigal, also an independent candidate, sought the elimination of the priority development assistant fund (PDAF) or "pork barrel" given to lawmakers to fund pet projects.

"I would abolish the pork barrel... because most only goes to corruption. The same goes for [budget] insertions, which are seldom audited," she said.

Ms. Madrigal is the most vocal of Mr. Villar’s critics in the Senate due to the latter’s involvement with an allegedly anomalous road expansion project.

Bangon Pilipinas standard-bearer Eduardo "Eddie" C. Villanueva said he would take concrete steps to improve revenues.

"I would push for the restructuring of our loans to our international creditors. Also, I would create programs to improve our domestic market and local enterprises," he said.

Ang Kapatiran bet and Olongapo City Councilor John Carlos "JC" G. de los Reyes centered on having a strategic plan for Mindanao.

"We tend to look at that part of the country differently -- the outcome of our being Manila-centric. There is corruption in Mindanao because Manila leaders connive with ’puppet leaders’ in both camps’ quest for money and power. We need to overhaul the leadership system there by becoming an example," he said.

Former president Joseph E. Estrada of the Pwersa ng Masang Pilpino, third in independent surveys, and Vetallano Acosta of the Marcos-era Kilusang Bagong Lipunan were absent from the event. -- Jhoanna Frances S. Valdez


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