Palace sets signing of SPAV law, Procurement Act

President Arroyo hopes to spur the economy in 2003 by signing into law early next year two major economic reform bills that Congress approved before it adjourned last week for a holiday recess.

President Arroyo said she would sign into law on Jan. 10 the much-awaited Special Purpose Asset Vehicle (SPAV) bill and the Government Procurement Reform Act.

The SPAV measure, principally authored in the House by Speaker Jose De Venecia and in the Senate by opposition Sen. Edgardo Angara, seeks to grant tax exemptions and fee privileges to Special Asset Management Companies (SAMC) which will acquire or invest in non-performing assets of banks. The measure is estimated to unleash funds totalling more than P600 billion which are tied in non-performing loans (NPLs) being carried in the books of commercial banks in the Philippines.

While the SPAV is projected to unfreeze these funds for more productive investments, the soon-to-become law on Government Procurement Reform Act is being billed as the government’s response to plug billions of public funds being lost due to corruption in the procurement process.

The President said she would conduct the signing ceremonies at the Philippine Stock Exchange (PSE) in Ortigas Avenue.

Presidential Legislative Liaison Office (PLLO) Secretary Gabriel Claudio told The STAR yesterday the two major economic reform measures, which were earlier certified by the Palace as urgent bills, were agreed upon by the President with the leaders of Congress under the common legislative agenda forged in the Legislative-Executive Development Advisory Council (LEDAC).

When Congress resumes its session on Jan. 13, he said, the President would convene anew the LEDAC to fast-track the remaining Palace priority economic bills in various stages of the legislative mills.

He said these include the pending franchise bill for the National Transmission Company (Transco); use of lands given under comprehensive agrarian reform program as loan collateral; amendment to the Anti-Money Laundering Law; and corporation of the Bureau of Internal Revenue. – Marichu Villanueva