Espiritu hits corruption, people close to Estrada

Newly resigned Finance Secretary Edgardo Espiritu lashed out yesterday at rampant corruption in government, saying people close to President Estrada have been unduly exerting influence over major government decisions.

While Espiritu refused to name names, he strongly hinted that these people included certain presidential advisers and consultants.

In a radio interview, Espiritu assailed what he called a "culture of corruption" in the government service, adding that some people "with no accountability" have been swaying government decisions in favor of vested interests.

"I am very disappointed because it appears this culture is very difficult to reform," he said.

He confirmed that the clique included some of the 72 presidential advisers and consultants.

"I appeal to these people who have no accountability to leave governmental affairs alone. It would be better for them to go on leave," Espiritu said.

He said graft and corruption have negative effects on public perception, which in turn erode business confidence in the Estrada administration.

Espiritu said he expressed these complaints to the President when he tendered his resignation last Wednesday.

"I believe the President will realize that some people are really taking advantage of him," Espiritu said, adding he planned to take a year-long vacation.

He clarified that a few of the presidential advisers and consultants have been performing well, among them Presidential Spokesman Fernando Barican and Political Adviser Lito Banayo.

Espiritu admitted that he decided to resign over his failure to curb graft and corruption in his department and its attached agencies such as the Bureau of Internal Revenue (BIR), the Bureau of Customs and the Economic Intelligence and Investigation Bureau (EIIB).

"It is very frustrating to know that we cannot stamp out grant and corruption in such agencies like the Customs, the BIR and the EIIB," Espiritu stressed.

"This is my request. I hope officials of the agencies under my department (finance) reform and raise their work ethics. I am very disappointed because the culture of corruption is so hard to eradicate. I hope these two agencies are abolished," Espiritu said.

However, he also expressed optimism that his successor, incumbent Trade and Industry Secretary Jose Pardo, would be able to accomplish what he failed to do.

"The President is already acting on this issue. I believe he knows that some people are trying to use him. So I think he knows better now," Espiritu added.

"Public perception is crucial because it affects confidence and is a big influence on those who want to come in and invest here. Even our local investors who want to expand are forced to rethink," Espiritu said.

Espiritu, a respected banker, also conceded he had differences with Bangko Sentral ng Pilipinas Gov. Rafael Buenaventura over the interest rate policy.

He said Buenaventura wanted a "sustainable level of interest rates that will assure currency " stability.

He argued, however, that interest rate "is a major concern of the fiscal sector because if the level of government debt is too high, the deficit will shoot up and the national government will compete with the private sector on borrowings."

In a move that caught most people by surprise, Espiritu submitted last Wednesday his irrevocable letter of resignation to Mr. Estrada.

The President said he was saddened by Espiritu's resignation.

"In the year and a half that he served in my Cabinet, he has helped restore fiscal discipline and financial responsibility that the economy so badly needs through a regime of low interest rates and some fo the lowest inflation figures that the country has seen in a dozen years, and pro-market and pro-poor policies that are the hallmarks of our administration," Mr. Estrada noted.

Espiritu held a press conference after meeting with the President at Malacañang to hand in his resignation.

"I hope it will set the trend for the entire Cabinet to unify. The President is pitiful," Espiritu told reporters, apparently referring the Mr. Estrada's plummeting popularity ratings which was partly blamed to in-fighting among his Cabinet secretaries.

"I hope my resignation will encourage everybody to work together, to be a cohesive team," Espiritu added. -