PGMA’s running in 2004 blamed for her problems

TEMPTING NEW TERM: The problems of President Gloria Macapagal-Arroyo started the day she succumbed to the temptation of running for her own six-year term in the 2004 presidential election.

Since then, she has been a captive of that obsession of making it to the presidency with a direct mandate from the people. (She was elected only as vice president in 1998, although becoming president if the top post becomes vacant is part of her job description as No. 2 official of the land.)

Inheriting four years of the six-year term of former President Erap Estrada, and with the roar of the Edsa crowd still vaguely in the air, Gloria initially said she just wanted to serve as a "good president."

That was the right thing to say at that moment of turmoil. But when she, her husband and her close-in advisers finally settled in the Palace, someone must have told her: "Go for it!" Nandiyan na yan! Why let go?"

With her growing confidence, with her being suffused with the exhilarating air at the top, she was convinced to hold on, build on and run for her own mandate as president in 2004.

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WHY ONLY SIX YEARS?: The Constitution limits the president to only one six-year term on the theory that a president would serve his people well if not distracted by partisan politics, the cult of patronage, and the temptation to hang on.

Having just waken up from the nightmare of Marcosian rule, the people ordained in 1987 through the new Constitution that while six years is too long for a bad president, it is long enough even for a good one.

And then, also, no one who wants to be a good president should have to wheel and deal, pay political debts, raise a staggering amount of money, and do such horrible things just to ensure his election in the next round.

That vision of a non-partisan president was shattered when the darling daughter of Eva Macapagal listened to the snake tempting her with the apple of 2004.

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CORY EXAMPLE: Some people who went to Edsa to push Gloria into accepting the scepter that fell from the hand of Erap are now asking the "what if’s" of that shattered dream.

A favorite line is: If Gloria shunned all thoughts of aiming for 2004 and just concentrated on being simply a "good president" as she earlier said, 2004 would take care of itself.

Would it? Tell that to the people living off Gloria who would not leave 2004 to chance!

Former President Cory Aquino is a good example of one who resisted the temptation of a followup term. The widow of the modern-day hero Ninoy Aquino simply had a job to do, which was to deliver the nation from dictatorship back to democracy. Having done it, she retired – with a grateful nation having kind thoughts of her and her presidency.

But Gloria is not Cory.

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HERE’S IMPSA SIDE: We keep debating heatedly the so-called "sovereign guarantee" for the foreign loans needed for the 750-kilowatt CBK (Caliraya-Botocan-Kalayaan) hydroelectric project in Laguna.

The camps of Presidents Gloria Macapagal-Arroyo and Erap Estrada are blaming each other for the controversial loan guarantees in the contract.

It turned out, however, that the CBK Power Co. Ltd. (more popularly referred to as Impsa, or the Industrias Metalurgicas Pescarmona Sociedad Anonima, because Impsa is the better known of the partners in the group) neither asked for nor was granted "sovereign guarantee."

A CBK (Impsa) spokesman told us over the weekend: "What we consistently asked for and got from the Estrada government was a ‘government undertaking’ (GU), which assures us that the government will see to it that the National Power Corp. (Napocor) pays us for services delivered. The GU is in no way a guarantee on loans."

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NO LOAN GUARANTEE: On the question of sovereign guarantee, the Impsa (CBK) spokesman elaborated in an email to us:

"Impsa loans are not, and never have been, guaranteed by either Napocor or the national government. It is absurd on its face to suppose that Napocor could guarantee any obligations. It is a widely known fact that Napocor’s credit standing is so abysmal that it cannot procure loans without a guarantor itself.

"Besides that, CBK Power Co. is Napocor’s counter-party to the BROT (Build-Rehabilitate-Operate-Transfer) Agreement. Napocor cannot act as guarantor for someone to whom Napocor would have payment obligations.

"Nor does the Government Acknowledgment and Consent Agreement (Gaca) guarantee that the government would assume the obligations of Napocor. The Government Acknowledgment and Consent Agreement explicitly states: ‘For the avoidance of doubt, it is understood that nothing in this letter agreement shall be construed so as to convert the Government Undertaking to a direct guarantee by the Government of the obligations of CBK to the lenders under the Omnibus Agreement. Neither shall this letter agreement construed to increase or expand the obligations of the Republic of the Philippines under the Government Undertaking dated July 12, 1999.’

"That Government Undertaking dated July 12, 1999, was signed by Secretary Edgardo Espiritu upon Full Powers given by President Estrada. That Government Undertaking did not guarantee the loans of Impsa or CBK Power Co., but will see to it that Napocor shall be able to discharge at all time its obligations as they fall due.

"The validity of this Government Undertaking was found correct by the first DOJ Opinion signed by Justice Secretary Artemio Tuquero on June 28, 2000.

"A DOJ Opinion such as the one issued by Secretary Perez followed a standard form, and merely expressed the DOJ’s views and findings that all necessary consents for the validity of an agreement have been obtained. Such an opinion is not a contract, whereby the parties exchange promises and incur obligations; only the Secretary of Justice signed this letter, there are no counter-parties.

"By this simple document the Secretary of Justice cannot bind the national government into providing a guarantee. Only the President (or his properly authorized designate) has the power to issue a guarantee on behalf of the Republic.

"The Government Acknowledgment and Consent Agreement merely formalizes the Government’s consent to the transfer and assignment to the lenders of all of CBK Power Co.’s rights under the BROT Agreement. A government consent is a standard feature of all international project financing and operates to ensure that fees earned by CBK Power Co. under the project are deposited directly to specific bank accounts controlled by the lenders."

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