GMA denies Camacho resigned because of GSIS chief

President Arroyo denied yesterday insinuations that her inaction against Government Service Insurance System (GSIS) president and general manager Winston Garcia was among the reasons why Finance Secretary Jose Isidro Camacho decided to quit his post.

"No, Secretary Camacho has definitely told me that’s not the reason," the President said.

Mrs. Arroyo stressed the primary reason why Camacho was leaving government service is his desire to return to the private sector because of its financial rewards.

"You know I can understand Secretary Camacho’s financial predicament from a guy who was earning P5 million a month to be now earning P50,000 a month," Mrs. Arroyo said.

Camacho, a respected banker, was credited with having kept the budget deficit under control this year after it exceeded official ceilings last year, alarming international creditors.

Camacho’s abrupt departure raised concerns that his reforms would not be followed through.

There were speculations that Camacho resigned in frustration over the controversy involving Garcia.

Reports said Garcia is being retained in his position as GSIS administrator to ensure pro-Arroyo votes in Cebu where his father, Pablo, is incumbent governor.

The GSIS administrator is under fire from government employees who demanded his resignation over alleged fund mismanagement which resulted in the slow release of their benefits and loans.

There were also rumors that Camacho has been under pressure to resign over his support for anti-corruption "lifestyle checks" of government officials, which resulted in some charges being filed by the justice department.

Camacho announced Friday his resignation effective Nov. 30, saying he was "very happy and relieved" by his decision to leave government service, citing financial reasons.

Camacho has recommended Undersecretary Juanita Amatong, as officer-in-charge of the Department of Finance (DOF).

Amatong, a career officer of the DOF and currently the head its International Finance Group, was appointed by Mrs. Arroyo yesterday to stay as "acting" finance chief until Camacho formally bows out on Nov. 30.

"I think secretary Nits (Juanita) Amatong should be there for quite sometime," Mrs. Arroyo told a news conference at Dumaguete City yesterday.

Mrs. Arroyo credited Amatong for "working behind the scenes" in the government’s program to reduce the annual budgetary deficit by coordinating with the Department of Budget and Management (DBM) and other concerned agencies.

On the possible appointment of Energy Secretary Vincent Perez to replace Camacho, Presidential Spokesman Ignacio Bunye said this was remote.

"That was already clarified by Secretary Perez himself that although he has finance background, he prefers to stay at the energy department to continue with the power reform programs he started," Bunye said.

Although Camacho’s reaction initially drew negative effects on the financial scene, Mrs. Arroyo, herself an economist, stressed these are only temporary reactions.

"And I’d like to point out, Lito Camacho says the head of the economic team is the President. So the policies he has been carrying out are my policies, the policies with regard to fiscal program, with regard to containing the budget deficit," she said.

Mrs. Arroyo noted that the stock market has improved slightly and the peso value against the US dollar has slightly recovered.

"That shows there is international confidence in acting secretary Nits Amatong because she’s (a) veteran at the finance department and she’s been the one facing the international community," she said.