De Guzman to Duterte: Heads must roll if anomalies found

Press Release

02 April 2019

De Guzman to Duterte: Heads must roll if anomalies found

Include Congress, civil society, private sector in audit

Manila, Philippines – Labor Senate bet Leody de Guzman challenged President Rodrigo Roa Duterte to fire Finance Secretary Carlos Dominguez III, Economic Secretary Ernesto Pernia, and Solicitor General Jose Calida if the government’s investigation on loan agreements with China will reveal anomalies and irregularities.

“The fact that it is the administration itself which promoted and signed these deals show that the President’s men themselves are accountable for any treasonous and anti-people provisions that will be found in the agreements,” De Guzman said.

De Guzman cited the lack of transparency and onerous agreements in the Kaliwa Dam project, a “centrepiece project” of China’s Belt and Road Initiative (BRI) in the Philippines.

“For instance, the loan agreement for Kaliwa Dam would not have been signed without endorsement and tacit approval from Dominguez, Pernia, and Calida. If it is found to be anomalous, then these men should be fired,” De Guzman demanded.

All loan agreements require the approval of the National Economic and Development Authority (NEDA), endorsement from the Department of Finance (DOF), and should have been reviewed by the Office of Solicitor-General (OSG) for infirmities.

Include Congress, Civil Society, Private Audit Firms

The labor leader also asked for an “unbiased audit” by expanding to audit initiative to include participants from the Senate, House of Representatives, civil society, and private audit, legal, and accountancy firms.

““There is a clear conflict of interest in the case of Calida investigating loan agreements which were approved by his office. Chances that these agreements will be whitewashed is highly probable,” De Guzman asserted.

He recalled that the Senate under former Senate President Aquilino Pimentel III already expressed interest in auditing loan agreements, so they should be included in the audit initiative.

“Senate President Pimentel and (Sen. Risa) Hontiveros already filed Senate Resolution No. 253 directing the Senate committees to review foreign loans entered by the Philippine government in aid of legislation. They should be allowed to continue this initiative,” De Guzman said.

Citizen’s Debt Audit

De Guzman also recalled the “citizen’s debt audit initiative” which reviewed “illegitimate China loan agreements” during the time of President Gloria Macapagal-Arroyo.

The citizen’s debt audit initiative included De Guzman, former Vice President Teofisto Guingona, former Senator Wigberto Tañada, former Representatives Barry Guitierrez, Rene Magtubo, and JV Bautista, former economic chief Sixto Roxas, and academics Randy David and Grace Jamon, among others.

“We were interested then into auditing Arroyo’s questionable agreements with the Chinese government, particularly the National Broadband Network (NBN) deal with ZTE and the Cyber Education Project deal, and other projects funded by the Chinese EXIM banks,” he explained.

De Guzman calls on citizens to “conduct their own audit initiative and submit their findings to the public and Congress” to “countercheck Calida and his colleagues who might want to use the audit as an opportunity to save themselves”.###

De Guzman to Chinese Creditors: Prepare for Repudiation

Press Release

30 March 2019

De Guzman to Chinese Creditors: Prepare for Repudiation

Manila, Philippines – Labor’s senatorial bet Leody de Guzman, said that "onerous and unfavorable loans by Chinese creditors may pendulum swing in favor of an exasperated people who will pursue debt repudiation in the near future".

“This administration may be accommodating to their demands, but no regime lasts forever, and so the debts contracted today might be subjected to an audit later,” De Guzman, the sole senate bet of Partido Lakas ng Masa said.

He recalled that the 14th Congress under former President Gloria Macapagal-Arroyo decided to suspend loan payments for debt worth P25.9 billion for “fraudulent, wasteful and or useless” loans.

The ratified Bicameral Conference Committee Report for House Bill 2454, the proposed 2008 General Appropriations Bill, included a special provision for the interest payment suspension for 14 loan-funded projects, plus all remaining unsecuritized loans incurred during the dictatorship of former President Marcos.

“May karapatan ang Kongreso na isuspinde ang mga utang dahil ang badyet taon ay makukunsiderang bahagi ng lehislatura. Kaya nitong bawiin ang otomatikong pagbabayad ng utang para sa ilang taon,” he explained.

The labor leader stressed the importance of due diligence not just on the part of the debtor governments like the Philippines but also for the creditor governments.

Beyond Amounts

De Guzman also reacted to the claims by Chinese Embassy Commerical Counsellor Jin Yuan that claims of debt trap is “meaningless and nonsense”, saying that "a big dam could collapse from a small crack”.

“We know how it starts – one or two unreasonable loan agreements would lead to another until we are submerged in debt. Then fast forward to their maturity periods when the government could only pay a portion of its past loans until the compounded interest becomes bigger than the original loan applied for. That was the debt trap worked under the Marcos regime.

Our Chinese creditors may be literally laughing all the way to the bank today but, in the future, we are certain the our local finance managers would display patriotism and intellectual honesty by not compromising the welfare and interest of the future generation of Filipinos,” he expounded.

De Guzman also told Yuan that he plans to push in Congress a “comprehensive audit” of Chinese loans made during the administration of Arroyo and President Rodrigo Duterte, so the embassy “might want to start assembling their legal team now”.

“The Philippines have already stood up against Spanish, American, and Japanese imperialists. We also stand up to China if it insists on being so,” he concluded.###

Senate bet wants repeal of automatic debt payments and strengthen ODA regulation

Press Release

28 March 2019

As “Best Defense” vs. “Onerous Chinese Debts”:

Senate bet wants repeal of automatic debt payments and strengthen ODA regulation

Manila, Philippines – Labor’s senatorial bet Leody De Guzman vowed to file a bill repealing the automatic appropriations act for debt payments if elected this May, insisting that “only loans transacted with due diligence, good faith, without a taint of corruption should be paid by taxpayer’s money.”

“Hindi makatarungan na parusahan ang mga susunod na henerasyon ng pagbayad sa mga utang na hindi naman lehitimo dahil lamang mas matimbang sa Pangulo ang mga bangkerong Tsino kaysa sa kapwa niya Filipino,” De Guzman said.

Section 26(B) of Book VI, Executive Order (EO) 292, or the “Revised Administrative Code of 1987”, states that principal and interest payments for government debts are automatically appropriated. The provision is copied from Section 31(B) of Presidential Decree (PD) 1177 or the “Budget Reform Decree of 1977” which also serves as the legal basis for Section 26(B).

De Guzman explained that repealing Section 26(B) of EO 292 and Section 31(B) of PD 1177 would “act as a deterrent to unscrupulous creditor countries who might want to exploit corrupt administrations.”

“One of my first bills would be to replace automatic debt payments with automatic audit of loan agreements involving stakeholders, the economic team of Congress, third party accountants, and civil society,” he pronounced.

“Automatic appropriations is debt servicing, it clips the power of the purse of the legislative branch. I challenge all senatoriables to take a position on this, unless they are unwitting accomplices of Duterte's treasonous betrayal to China,” he posed.

Senate Audit of China Loans

The lone senate bet of Partido Lakas ng Masa also asked the sitting Senate to “immediately commence a review of all the China loans transacted by the Department of Finance”, including but not limited to the Chico River deal.

“I recall that the first budget signed by (President Rodrigo) Duterte for 2017 contains a special provision calling for an audit of specific debts. The Congress and Senate would do well to include such provision in the 2020 budget,” De Guzman said.

De Guzman warns the administration to “learn from the mistakes” of former President and now House Speaker Gloria Arroyo, who was embroiled in controversies in the $329-million National Broadband Network (NBN) project, the $503-million North Luzon Railways Project Phase 1 and Phase 2 (Northrail), the $884-million South Luzon Railways Project Mainline (Southrail), and the $465-million Cyber Education Project (CEP).

“Duterte’s designs will be foiled by the people, in the same way Arroyo’s designs were thwarted before,” he insisted.

Strengthening ODA Regulations

De Guzman adds that it is “not enough” for existing debts to be audited; the next Congress should also move to “clip” and regulate the President’s power to contract Official Development Assistance.

“Part of my proposal would include revisions in Republic Act 8182. Specifically, I would insist on a borrowings cap as well as restoring Section 11 of the original RA 8182, which was modified by RA 8555 to allow creditors to specify modes of procuring labor and other materials,” he cited.

The labor leader said that the practice of “tied aid”, wherein foreign workers and suppliers are tapped for foreign loan funded projects, should be replaced by “a system of preference and an obligation to transfer technology Filipino workers as well as competitive and transparent bidding among Filipino suppliers”.

“The Filipino people will pay for these loans. That being said, I see no reason why Filipino workers and businesses should not benefit from these loans.” De Guzman ended.###

Acierto revelation confirms Duterte proxy war on drugs – labor Senate bet

PRESS RELEASE

March 26, 2019

Partido Lakas ng Masa

Acierto revelation confirms Duterte proxy war on drugs – labor Senate bet

Senatorial candidate Leody de Guzman of Partido Lakas ng Masa today claimed that the critics of the the administration’s ‘war on drugs” have been vindicated following revelation made by former officer-in-charge of the Philippine National Police (PNP) Anti-Illegal Drugs, Group Colonel Eduardo Acierto that implicated Duterte’s economic adviser Michael Yang to the illegal narcotics trade.

He also called for the immediate termination of the administration’s ‘war on drugs’ after the president himself admitted that despite its brutality, the drug trade has worsened. He says it is also urgent to form an independent body to investigate the extent of the influence of Yang on the state sanctioned ‘war on drugs’.

De Guzman believes that Oplan Tokhang is contrived and elaborate scheme to eliminate the competition and monopolize the operations of the illegal drug trade. The expose, he adds, verified his contention that the administration’s ‘war on drugs’ was in reality, “a war on the poor”

“Tama ang hinala namin noon pa man. Sa simula pa lang ng Oplan Tokhang kapansin-pansin na marami sa mga biktima ay mga small-time pusher at courier. Kataka-takang wala kahit isang dayuhang drug lord ang tinutumba. Biniktima pa nila ang libo-libong mahihirap para magmukhang kapapaniwala ang kanilang gera kontra droga,” said the labor leader.

He says if Col. Asierto’s allegations are true, he finds it extremely alarming that a foreign national, with links to the ambassador of China and considered an economic adviser of the president can influence policies and programs of the government specially its anti-drugs campaign.

De Guzman alleges that, “The fact that the top brass of the PNP and the Philippine Drug Enforcement Agency were knowledgeable of the intelligence report of Col. Asierto, that Yang was operating shabu laboratories in Davao City as early as 2004 and did not act upon it shows that corruption and connivance has reached unprecedented levels”.

“Hindi na ako magugulat kung kasabwat si Pangulong Duterte sa buong iskema at kahit yung mismong kandidatura niya bilang pangulo ay dinesenyo para makontrol ni Yang ang drug trade. Mula Day One wala siyang bukambibig kundi pagpuksa sa droga. Napaniwala niyang ang marami na sinsero siya sa kanyang laban sa droga, ayun pala ay para lang kay Yang,” he deduced.

The labor leader predicts that Asierto’s expose is the “beginning of the end of the Duterte administration”. De Guzman adds that it will now be a challenge for everyone to make the president and his accomplices accountable for the tens of thousands who have fallen victim to their proxy war.###

Senate bet calls for the resignation of MWSS admin

PRESS RELEASE

March 25, 2019

Senate bet calls for the resignation of MWSS admin

Senatorial candidate Leody de Guzman of Partido Lakas ng Masa (PLM) today called for the immediate resignation of the entire Board of Trustees of the Manila Waterworks and Sewerage System (MWSS) for their failure to fulfill their mandate of ensuring uninterrupted and adequate supply and distribution of potable water.

The labor leader said that the MWSS board led by Franklin Demonteverde must have the delicadeza to step down from office and not await for the Executive branch to remove them from office.

The MWSS board, de Guzman said, “are accountable for the water shortage that hit millions of households.Their disservice is unacceptable. The public outrage generated by their incompetence should be enough reason for them to submit their irrevocable resignation at once”.

The labor leader also noted that even the composition of the Board of Trustees is not in accordance with Republic Act 6234. The law requires the MWSS board to possess specific qualifications including a duly licensed professional of recognized competence in civil engineering and/or sanitary engineering, business management and finance, and law, or recognized labor leader within the ranks.

Six of the nine members of the board are lawyers, two former police generals including Reynaldo Velasco, administrator and vice chairman of the board and a chemical engineer.

“No small wonder that it took them several weeks in order to address the water crisis and did not prepare for such an eventuality,” he said.

The same sentiment was echoed by Sonny Melencio, PLM chairperson. “It only goes on to show that political appointees are not placed for their qualifications and competence but as rewards for their loyalties to the president,” he said.

“Water is life and must be held as a top priority of the government. This kind of ineptitude and recklessness is not worthy of our taxes. The people are already overtaxed and are deserving of better services”.

PLM is campaigning for the reversal of the policies of privatization and deregulation of water and power utilities. It says that utilities are vital to the people and must be publicly owned and democratically managed.

“Sobra-sobra na ang dalawampu’t dalawang taon para husgahan ng taumbayan na palpak ang pribatisasyon ng MWSS. Dapat ibalik bilang serbisyo ng gobyerno sa mamamayan at hindi pagpyestahan ng mga negosyante,” De Guzman concluded.###

Worker senatoriable hits proposal to regulate social media, says poverty is breeding ground for fake news outlets

PRESS RELEASE

March 22, 2019

Worker senatoriable hits proposal to regulate social media, says poverty is breeding ground for fake news outlets

Worker senatorial candidate Leody de Guzman of the Partido Lakas ng Masa (PLM) criticized Vice-President Leni Robredo’s proposal of having a law regulating the use of social media in light of the spread of fake news and troll accounts during election season.

According to de Guzman, a veteran labor leader and human rights advocate said, “It appears that the Vice President must be reminded that the Constitution says that no law should abridge the exercise of free speech”.

“Sa panahong nahahati na ang mamamayan sa pagitan ng mga nagsasamantala at pinagsasamantalahan, anumang pagtatangka na busalan ang publiko ay pagpabor sa interes ng iilang nang-aapi. More than ever, we should uphold and promote the right to freedom of expression,” he added.

“Unwittingly, her proposal is as draconian as the fascist regime that she has openly condemned and criticized. It is a suggestion that, if passed, will lead to censorship of criticism, exposes, and progressive ideas,” the PLM leader added.

De Guzman suggested, “Kaysa gumawa ng bagong batas, na naglalagay sa peligro sa karapatan sa malayang pamamahayaga, maari namang ipatupad Article 154 ng Revised Penal Code, na nagpapataw ng parusa laban sa pagkakalat ng ‘pekeng balita’. In the said law, a person maybe fined up to P200,000 for publishing fake news”.

But the PLM senatorial bet added that the law against ‘fake news’ is “rendered ineffective by the poverty and desperation of the masses”. He explained, “As long as the masses are hungry, they would easily be employed as trolls by opportunist politicians and political operators”.

“Social media has given power to the people to create online content for massive distribution. It has overtaken traditional media, where content is controlled and influenced - at times, absolutely - by media moguls and corporate sponsors. Yet, social media has not reached its full potential as an avenue for the free and democratic expression of the majority,” Benjo Basas, a public school teacher and first nominee of PLM explained.

“To counter fake news, which is usually for the benefit of the exploiting few, the masses should be given access and opportunity to have their voices heard,” Basas furthered.

The PLM is pushing for a legislative agenda that would give space to representatives of the people both in the state media and in social media, so that the populace could participate and influence the crafting of laws and policies even after elections. “Because above all else, democracy is nothing but majority rule”. ###

Urgent gov’t action needed to protect Filipino seafarers - Labor senate bet

PRESS RELEASE

21 March 2019

Urgent gov’t action needed to protect Filipino seafarers - Labor senate bet

Partido Lakas ng Masa sole senatorial bet and labor leader Ka Leody de Guzman called on the Duterte administration for urgent action to protect the jobs and welfare of Filipino seafarers as they are quickly losing their preferential status in the global labor market.

The veteran labor leader expressed this alarm after the Maritime Industry Authority (MARINA) failed to comply by global industry standards set by the International Maritime Organization.

De Guzman said the issue of Filipino welfare is personal for him since his youngest son is a seafarer boarding international routes. He said, "Napakaraming pamilya ang umaasa sa mga seafarer. Marami sa kanila ang sumuporta sa kanilang mga kamag-anak na sumampa ng barko - kahit nababahala sa magiging pagkawalay. Hindi lang dahil sa mas mataas na kikitain sa pagbabarko kundi dahil sa panatag sila na respetado at mapagkakatiwalaan ang mga marinong Pilipino".

The Filipino seafarers accounts for 30 percent of the world's seafaring population, according to data released by the Philippine Overseas Employment Agency (POEA) from 2016 to 2017. But they are quickly losing this dominant position.

De Guzman says the impact of the diqualification will severely impact the economy and their families. Data from the Philippine Overseas Employment Agency (POEA) revealed that there are about 378,072 seafarers in 2017 bringing in about $USD 6 billion in remittances.

The issue of non-compliance by Filipino seafarers to global standards is not new. The European Maritime Safety Agency (EMSA) last 2017 pointed to deficiencies in the Philippine maritime industry, particularly on maritime education, training and certification systems.

The PLM senatoriable stressed, "Epekto ng matinding kapayabaan ng gobyerno ang dahilan kung bakit may banta sa dominanteng posisyon natin sa global maritime industry. Hinayaan ng CHEd na lumaganap ang mga maritime school na naging 'diploma mill' ng mga gradweyt na bagsak sa pamantayan ng industriya. Ginatasan lamang nito ang mga pamilyang umaasang makasampa ng barko ang kanilang mga anak".

De Guzman himself is a graduate of a maritime school, the Philippine Maritime Institute (now PMI Colleges), one of the oldest maritime schools in the country.

"Sa usapin ng certification, tiyak tayong umiral ang perenyal na problema ng korapsyon. Nagkalat ang mga manning agencies na hindi nakasabay sa mga pagbabago sa pandaigdigang istandard. Kung paano sila nananatiling may sertipikasyon mula sa mga ahensya ng gobyerno ay isang milagrong may presyo", he emphasized.

The senatorial candidate is national chair of the Bukluran ng Manggagawang Pilipino (BMP). He likewise called on labor groups that are active in organizing seafarers to close ranks and unite. "The AMOSUP (Associated Marine Officers' and Seamen's Union of the Philippines), PSU (Philippine Seafarers Union), and PTGWO (Philippine Trade and General Workers' Organization) should unite to ensure the welfare of Filipino seafarers in order to maintain their competitiveness in the global market". ###