The newly created Presidential Oversight System for Government Procurement, she said, will have the power to review any case of "suspected favoritism, overpricing and unethical practices" in transactions in all government agencies.
The President made the announcement before the Philippine Business Conference (PBC), a gathering of local and foreign businessmen at the Manila Hotel. During the gathering, she also broke the news of the appointment to her Cabinet of a new economic planning and development secretary, who will focus on her administration’s new economic strategy.
The creation of the private sector-led new oversight body was part of the official response of Mrs. Arroyo to the list of "to do’s" the business sector asked from her 20-month old administration.
"Going now therefore to the microeconomic supply side measure of your proposed action agenda and graft and corruption, in response to your offer to help ensure greater transparency in government transactions, I am hereby creating the Presidential Oversight System for Government Procurement," the President told the audience who roundly applauded.
"If you would agree because Jesus Estanislao has done work in effective governance and you even made him chair of your committtee to choose effective governance, may I ask Jess Estanislao to head this oversight committee," she added and was again warmly applauded by her audience in obvious approval.
Estanislao, who was in the audience, was most surprised by the Presidential announcement.
He previously served as finance secretary during the administration of former President Corazon Aquino and is presently connected with the University of Asia and the Pacific.
Asked if he will accept the new position, Estanislao said he was still unsure, pointing out that his understanding of the oversight body is more of a civil watchdog rather than a government agency.
Digressing from her prepared speech at the business forum, the President assured Estanislao that he would not have to leave his present job in the private sector.
"It (the chairmanship of the presidential oversight body) would be part of your work, Jess, in good governance. So therefore, it won’t make you a part of my government," she explained.
"It still makes you part of civil society looking over our shoulders," she added.
During the forum, the President also appealed to businessmen not to use the country’s democratic space to clog the courts with their suits against business rivals and competitors.
She cited that the independent judiciary is one of the four strong institutions that are needed for a strong Republic that could deliver speedy and fair justice.
But if courts were being clogged by such nuisance suits, she warned, the institution would certainly be weakened not to mention about the problem of corrupt judges, prosecutors, and other members of the court.
Mrs. Arroyo also took the occasion to preach anew about the concept of a "strong Republic," which she said is independence from class and sectoral interests and effective governance.
"By effective government, I mean national security. I mean securing the persons and properties of each citizens. I mean upholding the law without fear or favor. I mean enforcing valid contracts and annulling invalid agreements by judicial means. I mean providing public infrastructures because that’s why people pay taxes for," she said. — With Marichu Villanueva