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Business

The last straw that broke a Cabinet

- Boo Chanco -
For ex-Finance Secretary Cesar Purisima, the implementation of the EVAT law was a major pillar to strengthen the country’s finances, to get our fiscal house in order. As far as he and the rest of the economic management team he heads are concerned, they are operating under the fiscal equivalent of a red alert. They have scored some early victories, like the increase in revenue collections in recent months, but they know they are still very far from being in the clear.

That was why Purisima felt truly betrayed when he reportedly got a phone call from an official telling him "yung hinihingi ninyo sa Supreme Court binigay na." He didn’t have any pending requests from the Court so he wondered, refusing to accept the reality of his worst fear: The EVAT had been sacrificed by the Palace.

Of course there were denials all around when he asked the Palace about its role in the Supreme Court’s swift granting of a TRO, with an amazing 13-2 concurrence, even with five justices abroad. There were other tell tale signs like the original hearing set for the day after the SONA. It also fitted in with reports that Ate Glo’s political advisers wanted to postpone EVAT implementation and she asked a member of the economic team if there was a legal way to do just that.

That was the last straw. Purisima must have figured he could not fight a battle in two fronts. Getting the country’s fiscal house in order was difficult enough. He must have full support from his boss... or what is the point of staying on in office.

Purisima wanted to resign last year when, as DTI Secretary, he became disillusioned by the amount of political interference in his department. Malacañang would send appointments of people to non-existing jobs at DTI without consulting him. He had resignation letter in hand when he met with Ate Glo but ended up being convinced by appeals to patriotism, to take the DOF position instead. He took the challenge with the assurance that he would be allowed to do his job with the least interference.

He got that to some extent but not fully. A powerful religious group recommended two individuals for appointment to the Customs bureau. Purisima reluctantly accepted on the condition that if they go out of line even once, they are out. They did quickly go out of line, but Malacañang refused to allow him to fire them.

Purisima and his team had been working hard to win credibility for the government’s effort to clean up its fiscal mess. To a great extent, they have been succeeding, judging from reactions from the international ratings agencies and the business community. The high profile campaign to get tax evaders has also won them valuable points from a skeptical public. I can imagine all the hard work must have exacted heavy demands on their personal lives and they are only willing to continue doing it if at the end, something worthwhile is achieved for the country.

Purisima knows it is absolutely essential that credibility is regained, or not lost even more. The Garci tapes and the jueteng accusations are hardly economic matters, but they were affecting the work of the economic team. Calls for tax boycotts are just the more visible reactions that impact on the task confronting the economic managers. They had to postpone their economic road show in key world capitals to talk to investors and creditors because they would not be able to answer the political questions that would be raised.

That’s why when the local atmosphere deteriorated on a daily basis, Purisima and a group of other Cabinet members convinced Ate Glo to break her silence. They also convinced her to take a number of measures to be announced in "shock and awe" fashion that would convince people she has turned a new leaf and now means business. Banishing Mike A was one of those. There were others including cleaning up the Cabinet and other vital agencies like Pagcor and GSIS of Mike A surrogates. She reportedly agreed.

They were disappointed when instead of announcing her reforms in a "shock and awe" fashion she decided to do it in spurts. They wondered if she has truly been changed by the crisis at hand or if it was business as usual. When he got that call about the EVAT TRO, Purisima must have thought, that’s it... what’s the use!

I imagine from Ate Glo’s perspective, her economic managers should have been more understanding of her precarious political situation. As an economist, Ate Glo knows the absolute importance of implementing the EVAT but at the same time, she is also worried that the pain of this medicine may end up killing her presidency.

Ate Glo must have also expected Purisima and company to understand that she cannot fire all of Mike A’s boys at once because it would destabilize her political base at a time when she needs all the support she can get. Also, if what they say about them are even half true, Mike A’s boys know where all the political bodies are buried, so to speak. Ate Glo has no choice but to keep them happily on her side of the fence. Remember what happened to Erap because of Chavit?

In other words, while it is true that Ate Glo promised Purisima and company full autonomy in the economic sphere and she even listened to their advice that was in the political sphere, they should give her some slack because her political survival is in peril. First things first... she has to survive this serious political crisis first and later, they can get back on track with the economy.

Unfortunately, everyone was on short fuses. The economic managers believe that credibility cannot be sacrificed specially during these times if they are to make people believe Ate Glo means business. They probably understood the need for Ate Glo to be on survival mode but there was no meeting of minds on how to approach the crucial weeks ahead. Purisima probably thought it is not possible to backslide anymore... "and don’t accuse us of betrayal. She betrayed us first."

Purisima’s colossal mistake is approaching Noli de Castro. He should have asked me and I would have told him that Noli is one heck of a team player. He wouldn’t countenance any suggestion of treachery, no matter how good the objectives may be. I worked with Noli and his wife Arlene when I headed ABS-CBN’s news operations and they were nominally under my area of responsibility.

Look what happened with the other leading anchors of ABS-CBN at that time... Mel Tiangco and Jay Sonza left in a huff and filed suits against the network. Noli would have nothing of that stuff. In my many conversations with him at that time, Noli made it clear he wouldn’t leave just because a rival network would offer more money. Neither did he involve himself in the countless intrigues that plague the broadcast industry talents.

I bumped into Noli and Arlene as they sipped coffee at the Rockwell Power Plant two Sundays ago. I teased him as I shook his hand, calling him "Your Excellency." He shook his head and with all sincerity typical of him said he is not hungry for the Presidency as he had been accused. He seemed genuinely hurt by the suggestion that he would even think of such a treacherous idea. Ate Glo can sleep nights knowing Noli’s clean on that matter. Erap was not as fortunate.

Noli could have run for President last year and all the opinion polls showed he was a shoo-in, even against Ate Glo and FPJ. But even running for Veep took him long agonizing months deciding. When I asked him once why he is taking time to make up his mind, he told me that even being a senator was beyond his dreams. He wanted to make sure that he is deciding not just out of personal ambition but because he has something to contribute to the country.

This is why I have only contempt for people who voted for him as Ate Glo’s running mate but now say they are not sure he is ready to be president. If that were so, why did they vote for him, in the first place? A vice president should be ready to be President at a heartbeat’s notice. I wish I voted for him, in that sense, but I made a decision to cast a protest vote for Raul Roco and Hermie Aquino.

If Ate Glo eventually decides to let go and pass the baton to Noli, I think the country would not be in greater danger than it is already now. On the contrary, there is the opportunity to really start clean. Noli’s advantage is he had been in politics only for a while, and a reluctant participant at that. He still has the orientation and thinking of a cynical journalist, who instinctively knows when he is being sold a pack of lies and who also knows when to listen to knowledgeable experts for advice. And like Erap, he understands the masa and the masa will find it easy to trust him.

All he really needs to be a good president is a good Cabinet. But you can bet your last peso he also wouldn’t get people like Cesar Purisima and company who may be great professionals but in his estimation, poor team players. Purisima and company may say they did it for love of country but the simple provinciano from Mindoro sees it as plain and simple treachery.
Text Joke
Text jokes are just pouring into my cell phone. Here’s one.

May nagdeliver ng crib sa Tanay, at nagalit si Erap.

Erap: Wala naman akong baby dito ah!


Delivery man: Sir, lilipat na rin po si GLORIA!!

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

ATE

ATE GLO

ECONOMIC

ERAP

EVEN

GLO

MIKE A

NOLI

POLITICAL

PURISIMA

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