Enriquez raps DOF, BSP chiefs for ‘economic mismanagement’

Former Budget Secretary Salvador Enriquez is accusing Finance Secretary Jose T. Pardo and Bangko Sentral ng Pilipinas (BSP) Governor Rafael B. Buenaventura of economic mismanagement.

In an interview with newsmen, Enriquez called on Pardo and Buenaventura to resign due to their inability to maintain a healthy economy.

Enriquez drew attention specifically to the widening budget deficit and the confusion over the country’s foreign reserves level.

Citing the September cash budget figures, Enriquez pointed out that the continued shortfall in revenue collection is already a clear indication of economic mismanagement.

He said that based on the September revenue figure of P32 billion as against a target collection of P52 billion, the shortfall amounted to an alarming P20 billion. He said that the revenue shortfall indicates that business is down and that some companies are not paying taxes.

He also noted the discrepancy over the reserve figures. There had been reports that Pardo had said that the country’s gross international reserves (GIR) have dropped to $13 billion, while Buenaventura maintained that the GIR level stood at $14.5 billion as of Oct. 25 this year.

However, Enriquez raised the possibility that monetary authorities may be "window dressing" the GIR level by classifying certain items as eligible for reserves even though they should not be classified as such. He said that there are certain classification of receivables which can be counted as part of the country’s reserves.

Enriquez also expressed the view that the continued fall of the peso is an indication of capital flight.

The former budget chief during the term of former President Fidel V. Ramos pointed out that a number of wealthy Filipinos are not keeping their money in the country.Enriquez noted that businessman Eduardo Cojuangco appears to be keeping his money here while other like the Gokongwei and Lopez groups which sold their Bank – Philippine Commercial International Bank – do not appear to have made any new investments in the country.

Enriquez, expressed the opinion that with or without "Chavit (Singson) the country is truly in crisis because of gross mismanagement of the economy."

He urged Pardo and Buenaventura to resign.