Cruz resignation not due to conflict over policies

By Des Ferriols
The Philippine Star 04/26/2007

National Treasurer Omar Cruz and Bangko Sentral ng Pilipinas (BSP) Governor Amando M. Tetangco Jr. denied reports that conflicts over policies precipitated Cruz’ decision to resign from the Bureau of the Treasury (BTr).

Cruz’s resignation was accepted by President Arroyo yesterday and Finance Secretary Margarito B. Teves said the process is underway to look for a replacement.

Cruz called a press conference yesterday shortly after getting the official word that his resignation has been accepted, brushing aside speculations that he was leaving the BTr for anything other than "personal and family reasons."

According to Cruz, he has already attempted to resign once before also for personal reasons made even urgent this time around by his 84-year-old mother who was gravely ill.

"My mother is dying, I want to go to her," Cruz said.

Beyond personal concerns, however, Cruz expressed satisfaction that he has completed his tasks at the BTr, adding that it should be easier to take over the treasury now that reforms have been institutionalized.

"I’ve already achieved what I set out to achieve," he said. "We have established the process and institutionalized the reforms that it really doesn’t matter who is treasurer."

Cruz said the timing of his resignation was appropriate, having already completed the government’s commercial borrowing as early as January as well as the bond swaps that cleaned up the yield curve on the country’s bond portfolio.

"There really is very little left for me to do other than continue what we have institutionalized at the BTr," he said.

Cruz said the BTr was setup to keep a tight grip on the country’s debt portfolio, timing future swaps when the yield curve gets dirty and require cleaning up.

"It’s already a program that is continuing, none of the efforts that we do is a one-time thing," he said. "It’s all strategy-related and program oriented. As a result, we have established six benchmarks and very deep ones at that."

"I have come to the time of my career when I can already let go and I find great comfort in the fact that the coaching and mentoring that I have provided my team has been satisfactory," he added.

Amid speculations that the policy conflict was raging between the BTr and the BSP, Tetangco said only that Cruz "has been doing a great job as National Treasurer."

"In fact he continues to do an excellent job and finding a replacement would be a challenge," Tetangco said. "Omar has been successful in establishing good relations with the market and in managing the National Government’s finances."

Cruz brushed aside reports that he was at loggerheads with the BSP over the drop in the benchmark interest rates to historic lows, a development that made it cheaper for the National Government to services is debts but also resulted in huge loss of business for investors who depended on high Treasury bill (T-bill) rates.

"There are no policy differences between me and the BSP, it’s impossible," he said. "In the first place, fiscal management is independent from monetary policy."

"Monetary authorities are entitled to their own view on monetary policies and whatever that is, it is my job to simply spot the market," he explained.

Cruz said he was not personally making any recommendation for his replacement, however, saying that it would be up to Teves and the President to make the selection.

"Its not my call. At the end of the day the President and the Secretary (Teves) would have to make a judgment call."

Cruz, well respected by the market for his deft management of the national government’s debt portfolio, has also been blamed losses that resulted in a decline in interest rates.

But Cruz said interest rates were market-driven anyway and the narrowing of the profit margin in that market merely moved liquidity from the government securities market to fixed income instruments and the equities market.

"I don’t think anyone would be asking for my head because of that," he said. "If you’re the right kind of investor, you should be getting a much higher return by now, simply by shifting your funds from one part of the market to the other."

Cruz’ resignation will take effect on June 1 and he said he would be spending much of his time with his family, especially with his gravely-ill mother.

Cruz said he has not considered any specific career options but after leaving government service, he said his professional direction was more or less predictable.

"Once a market guy, always a market guy," he said.

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DOJ's Gonzalez faces Comelec probe for vote-buying attempt

(How can Justice Secretary Raul Gonzalez be a "Justice Secretary" when he always commits injustices and violate the law?)

Justice Secretary Raul Gonzalez is facing an investigation by the Commission on Elections for saying he will give P10,000-cash incentives to Iloilo village officials who could deliver a 12-0 victory for administration senatorial candidates.

“I have given instruction to our law department [to launch an investigation]. If he (Gonzalez) has violated the law then it would file charges against him," Comelec Chairman Benjamin Abalos Sr. said Wednesday at the Quijano de Manila forum at the Cherry Blossom Hotel in Malate, Manila.

Abalos and other poll officials earlier declined to comment on the matter, saying the issue could turn into an explosive case.

In a turnaround, the poll chairman said they might invite Gonzalez to explain his controversial statement.

In that interview, the justice secretary said he will give Iloilo village officials a P10,000 cash incentive each to ensure a landslide victory of the administration’s Team Unity.

He said he is not buying the votes of village officials, claiming he would be using his personal funds and not his office’s to boost TU’s bid.

“It’s a prize, an incentive for them to work harder," Gonzalez said. “This is my personal contribution to Team Unity. [I have plenty of cash]. Do you want to borrow?"

Gonzalez added: “When I give money, I can say from which safe it came from. Isang harvest lang iyan ng misis ko sa kanyang manukan (It’s one small harvest from my wife’s chicken farm)."

Under Article 22 of the Omnibus Election Code “any person who gives, offers, or promises money or anything of value, gives or promises any office or employment" to “induce anyone or the public in general to vote for or against any candidate" could be liable for vote-buying and selling.

“It could be a reward for campaign workers for a job well done, but still we would look into the case to determine the real context of his statement," Abalos explained.

He, however, added that Cabinet officials are not violating any election law if they support a candidate as long as they do not use their office and buy votes to ensure the victory of their bets.

Meanwhile, lawyer Alioden Dalaig, chief of the Comelec’s law department, said political parties can give their campaign managers incentives to encourage them to religiously campaign for their candidates.

These campaign managers, according to him, include village officials.

“They are not violating or being partisan because we are not holding the barangay [village] elections, therefore they are allowed to campaign," Dalaig said.

The Comelec earlier issued a resolution barring barangay officials from polling precincts on Election Day because this is a “partisan" act. This resolution was used as basis by the poll body to require Jose Concepcion, former chairman of the National Citizens Movement for Free Elections (Namfrel), to step down as prerequisite to the approval of the poll watchdog’s accreditation for operation quick count.

TU defends Gonzalez

Meanwhile, TU senatorial bets defended embattled Gonzalez from accusations of vote-buying.

In a press briefing in Iba, Zambales, former senator Vicente Sotto III said there is nothing wrong with Gonzalez' offer of a prize to village officials.

"If he (Gonzalez) was talking to voters and he offered them such rewards in exchange for a 12-0 vote, that is vote-buying," Sotto said.

"But since he was talking only to barangay officials, who can be considered campaign leaders of the administration, that is only an incentive, so that they would work hard to campaign for the administration bets," Sotto said.

Zambales Gov. Vic Magsaysay said since Gonzalez offer to barangay officials would only be realized after the elections--if indeed the local leaders delivered the votes--it could not be considered an election offense.

Former senator Tessie Aquino Oreta said that many of those who are criticizing Gonzalez could in fact be doing the same thing, although she refused to name anybody in particular.

"I, for my part, do offer incentives to my campaign managers so that they would work harder to promote my candidacy. I believe other candidates are doing it, too," Sotto said.

In a radio interview, election lawyer Romulo Macalintal also said it might be very difficult to prove that the DOJ chief's offer constitute the election offense of vote-buying.

"It must be proven that the voter had in fact voted for the candidates being supported by the one giving the offer, just because of such a deal," he said.

However, Macalintal said that Gonzalez should have been more circumspect because such statement could provoke charges of vote-buying.

There were reports that some leaders in the administration are calling for Malacanang to impose a "gag order" on Gonzalez because his controversial statements are giving the opposition the ammunition against administration bets.

Gonzalez, ever defiant, was quoted in the reports as saying that if Malacañang gags him, he would not host the Team Unity rally in Iloilo City, his bailiwick. - GMANews.TV

Gonzalez's offer to brgy execs slammed

(This article just shows that Justice Secretary Raul Gonzalez, Sr. does not know the law. He does not even know what is right and what is wrong. He is the laughing-stock of the media and he should just keep his mouth shut. He talks without thinking and then he just ignores all comments as if he did not say anything. He is a master of denying his mistakes. No wonder our justice system is one of the worst in the world...it is because we have the worst Justice Secretary in the world.)

By Nestor P. Burgos Jr.

Congressional candidate Vicente "Benjie" Gengos has called on the Commission on Elections (Comelec) to investigate the reported open declaration made by Justice Secretary Raul Gonzalez Sr. that he will give barangay captains a "bonus" if they will deliver a sweep for administration senatorial candidates in their barangay this May 14 elections.

"While this is still just a pronouncement, this is reflective of the mindset of the administration to ensure its victory," said Gengos, the Liberal Party candidate for congressman running against Gonzalez's son.

Gonzalez has offered P10,000 to each of the 180 barangay captains of Iloilo City or a total of P1.8 million if they can deliver a 12-0 sweep for the Team Unity bets in their villages.

Gonzalez, a staunch ally of President Macapagal-Arroyo, confirmed that he made the offer during a meeting with the barangay captains in a restaurant here last Sunday.

"It's a prize if they will work for the sweep," Gonzalez said in a telephone interview.

The Justice Secretary who served for three terms as congressman of the city's lone district said he sees nothing wrong with his offer and does not consider it a violation of election rules.

"I'm not a candidate and I'm not buying votes. (The offer) is for the barangay captains," said Gonzalez.

When asked where the money would come from, Gonzalez said he will get it from his own pocket.

"I have money," he said.

But he said that while he got assurances from the barangay captains to work for a sweep for the administration, he does not expect everybody to deliver.

Gonzalez is known for his vaunted clout among the city's barangay captains who regularly attend meetings called by the Justice Secretary.

His call for an administration sweep is a reversal of his earlier instructions to the barangay captains to only support "purists and loyalists" of the President in the elections. He had earlier said that he will not support administration senatorial candidates who have not supported and have even opposed programs and policies of the President in the past three years.

Gonzalez also confirmed reports that in the same meeting he had asked the barangay captains to ensure that two opposition candidates for city councilor, Perla Zulueta and Nielex Tupas, will not enter the winning circle.

Asked why he specified the two candidates, Gonzalez said: "They are attacking me. Do you think I would be crazy enough to tell the public to vote for them?"

Zulueta is running for re-election while Tupas is the youngest child of Iloilo Gov. Niel Tupas Sr. who has drawn ire from the administration after he, along with former Senate President Franklin Drilon, broke ties with the President on July 2005.

Governor Tupas had blamed Gonzalez for the controversial January 17 armed assault on the Iloilo provincial capitol to implement a dismissal order against Tupas. Gonzalez has repeatedly denied that he had a hand in the dismissal of Tupas and in the assault.

The Comelec in Western Visayas said it will still gather facts on Gonzalez's pronouncement.

"(The) giving of money is prohibited in the campaign period especially by candidates to officials or supporters. That is considered vote-buying," lawyer Renato Magbutay, Comelec regional director, said in a telephone interview.

But he said they could not act or determine whether Gonzalez had violated any election law if there is no formal complaint and no witness would come forward to execute an affidavit.

Magbutay pointed out that while Gonzalez is not a candidate, his son and namesake Raul Gonzalez Jr. is running for re-election as congressman of the city.

"As an official, supporter and as a citizen, he can voice (his support to an party or candidate). But the giving of money will be a different matter especially (if given) to barangay captains," said Magbutay.

But Magbutay said they could not act on a pronouncement.

"If this is consummated, this would constitute a violation of the Omnibus Election Code and could be considered as vote-buying," said Magbutay.

Section 261 of the Omnibus Election Code states that a person is guilty of vote-buying or vote-selling if the person "gives, offers or promises money or anything of value, gives or promises any office or employment, franchise or grant, public or private, or makes or offers to make an expenditure, directly or indirectly, or cause an expenditure to be made to any person, association, corporation, entity, or community in order to induce anyone or the public in general to vote for or against any candidate or withhold his vote in the election, or to vote for or against any aspirant for the nomination or choice of a candidate in a convention or similar selection process of a political party."