Bayanihan Fund will not fix deficit problem

Let us just be clear about one thing: That Bayanihan Fund initiated by Speaker Joe de Venecia will not fix the fiscal deficit problem. It is largely symbolic, a somewhat showbiz type attempt to rally people to do something to acknowledge the existence of the crisis. Even if they manage to collect the P5-billion goal, that would be a small drop in our bucket of fiscal despair.

I am afraid there is very real danger that some people may be distracted by this fund drive from the real causes of our fiscal problem, which are: Populism of our leaders, with Napocor as Exhibit A and a government that had been spending well beyond its ability to collect taxes. This is a problem that did not happen overnight and a succession of Presidents must share the blame.

I am concerned that some of our officials are of the mistaken notion that contributing to this fund erases their share of the guilt for the crisis we face. I am also aghast that in the case of the PNP, General Edgardo Aglipay is showing his gratitude to Ate Glo for being made top cop by forcing the lowly policemen to contribute part of their pay to this fund.

Given that their legal salaries are quite low, the General has in effect, given his cops permission to be resourceful, if you know what I mean. How can they afford to donate any portion of their meager pay? They and their families have to live too and because most policemen belong to the masa, they are even now bearing a heavy burden of today’s hard times. I have a very healthy respect for the professional ability and effectiveness of General Aglipay, I don’t think he needs to make sipsip at the expense of his men.

Let us also be clear that the rich tycoons who gladly contributed a million pesos each to this fund are not availing themselves of a cheap alternative tax amnesty. A million is nothing to them. Many of them donated a lot more to Ate Glo and FPJ during the last campaign. If these tycoons truly have love of country and sincerely want to help in this time of crisis, there are other more meaningful things they could do.

Lance Gokongwei said it right. They could pay the right taxes from their businesses. They could also pay their obligations to the SSS, DBP, Land Bank and other GFIs. No excuses. Just pay what rightfully should be paid to government and its instrumentalities. They should stop smuggling. They should not pay bribes to DPWH and other government officials to get contracts. And when they get contracts, they should not deliver below specifications.

Are we being idealistic? I don’t think so. We know the root causes of our crisis and mostly, it is us. We have to be brave enough to confront our shortcomings. We cannot calm our conscience with a small contribution to Joe de V’s Bayanihan Fund. We need the symbols, but we have to go beyond symbolism. Or face the consequences.

Symbols aside, I still say that people will fall in line if the leaders are credible and lead by example. If Ate Glo, Joe de V and the rest of our officials find it hard to lead by example, then our goose is cooked. The good news is, I don‘t know if my eyes were deceiving me but during the MOPC Forum yesterday, the body language of Ate Glo conveyed the message that she means business this time. I pray I was not just seeing what I wanted to see.

Still, there is danger that the Bayanihan Fund itself will lose credibility (if it has any at all, to begin with) as official extortion for the dubious objective of making the world think we are united in confronting our problems. Pakitang tao lang pala. We need to go to the meat of our problems… beyond mere symbols.

PNOC

Ambassador Thelmo Cunanan wrote me to clarify reports about supposed losses of PNOC, which he headed until recently. "I would like to set the record straight: PNOC is making money, not losing money," the former Army general wrote.

"The confusion over the alleged projected PNOC P1.4-billion "loss" the Ambassador wrote, "could have been due to a recent report by the Department of Budget Management on the "Budget of Expenditure and Sources of Funds" (BESF) of selected government corporations. The BESF Report did not correctly reflect the ‘Share of Subsidiaries in the Loan Related Expenses’ in the amount of P1.576 billion for 2004."

According to Ambassador Cunanan, COA "overstated the expenses and understated the net income. This discrepancy resulted in a perceived projected loss of P1.4 billion for PNOC, instead of the correct positive P166.7-million net income from its operations alone, excluding the projected net income from its subsidiaries of P2.279 billion."

Cunanan said since he assumed PNOC’s presidency in February 2001, PNOC and its subsidiaries have also registered improved financial ratios – a significant and substantial turnaround. "Thus, based on our record of the past three years, PNOC is projected to continue making a substantial profit this year."

The Ambassador reported that "COA-audited 2003 financial statements reveal that PNOC and its subsidiaries posted a consolidated net income of P1.88 billion: PNOC‘s share is P534 million, and its subsidiaries, P1.355 billion. For 2003 PNOC remitted P793.9 million to the National Government.

"In 2001 to 2003, PNOC posted a consolidated net income of P4.646 billion, with total corresponding remittances to the National Government of P1.804.4 billion. Given this record, PNOC forecasts a consolidated net income of P2.446 billion for this year and a corresponding remittance of P629.5 million to the National Treasury."

What’s with all these confusion with government accounting? If the Bureau of Budget and Management made that mistake as the Ambassador says, how can we even trust what they tell us about the fiscal deficit? Maybe things are worse than they are telling us. Or maybe, not as bad. Ano ba talaga?

Then again, government bureaucrats have so many different ways of reporting their financials. Last January, when PNOC was asked to present their financials to the Senate Committee on Energy, then under Sen. Sonny Osmeña, PNOC officials led by Ambassador Cunanan used the cash method which is the method used for the national budget but which masks accruals such as debt and other multi-year commitments.

They were then asked by Sen. Serge Osmeña to furnish the committee with the accrual method report such as all business entities do. But PNOC officials did not furnish the committee with those reports until the committee ran out of time because of the February adjournment for the campaign.

Oh well…

Pre-marital sex

Gilbert Jose sent this in from Istanbul.

Two guys were discussing popular family trends on sex, marriage, and values. Roy said, "I didn’t sleep with my wife before we got married, did you?"

Bobby replied, "I’m not sure… What was her maiden name?"

Boo Chanco’s e-mail address is [email protected]