news The Manila Times MONDAY


BY WILLIAM B. DEPASUPIL REPORTER AND EFREN L. DANAO SENIOR REPORTER


tions” David noted. HE Armed Forces of the Philippines


over the weekend announced that the military would remain alert despite the imposition of an 18-day suspension of offensive military operations (SOMO) with communist guerrillas of the New People’s Army (NPA).


Armed Forces Chief of Staff Gen. Ricardo David Jr. reported on Sun- day that all military combat-related activities would be suspended while soldiers would be confined to bar- racks from December 16, 2010 to January 3, 2011. “However, this will not preclude our soldiers from taking appropri- ate action in self-defense and to pro- tect our people and communities from armed threats,” David said. “We hope that this gesture shall


pave the way for winning the peace and permanently putting an end to


Easier loan access for borrowers sought


AN administration supporter at the House of Representatives urged Bangko Sentral ng Pilipinas (BSP) to make loan access information readily available to first-time borrowers of banks. In a letter addressed to BSP Gover- nor Armando Tetangco, Rep. Ben Evardone of Eastern Samar said newbie borrowers are “often clueless about the classification of banks, the type of loans they offer, the interest charges on loans extended and the administrative and other costs that come with the grant of loans.” “In short, the rudimentary knowl- edge that they should get about the banking system is not available to them,” Evardone said.


He also said that because there is no readily available information on such, first-time borrowers do not of- ten received what term best suits them. “There is a clear and urgent need for popularizing information about bank- ing services because of the obvious posi- tive impact such availability would have on the broader economy,” he said. Moreover, Evardone said the BSP does not need to wait for the crea- tion of laws to implement his re- quest since it can easily impose the measure through a banking circular. RUBEN D. MANAHAN 4TH


The long ceasefire serves as a prel- ude to the proposed resumption of peace talks between the government and the Communist Party of the Philippines-National Democratic Front (CPP-NDF)


A 3


D e cember 6, 2010


Military to remain alert despite ceasefire T


Senate nod Meanwhile, Senate President Juan


armed conflict,” he added. Moreover, David said all “peace and development activities” being undertaken by the military would continue since the said operations were not included under the terms of the SOMO.


“I think those civic action that are not military in nature, like den- tal civil actions, are not included on the offensive military operations,” he said.


“Probably in the next day we will


have the details of these rules on the suspension of military opera-


Ponce Enrile and Sen. Loren Legarda also over the weekend expressed support for the proposed resump- tion of peace talks between the Phil- ippine government and NDF. “The government must always seek peaceful solution to a prob- lem,” Enrile said.


Legarda, chairman of the Senate Committee on Foreign Relations, said that the resumption of the peace negotiations is a good step toward achieving lasting peace. Enrile, however, chided NDF nego- tiators for reportedly imposing pre- conditions prior to the conduct of peace negotiations. Among such al- leged demands were the annulment of the Visiting Forces Agreement and


the release of political prisoners. The Senate president, moreover, opposed proposals to hold the said peace talks in Norway “We are internationalizing what is a domestic issue,” Enrile explained. Legarda, on the other hand, found nothing wrong with the pro- posal and explained that most of the CPP-NDF peace negotiators are in exile and it is more convenient to hold the peace talks abroad. “It might be more difficult to hold the peace talks here because of the security problems,” she said. Negotiators of the CPP-NDF in the Philippines are supposed to be covered by the Joint Agreement on Safety and Immunity Guarantee during the peace talks.


New strategy


The Armed Forces had also earlier announced that starting next year, it would adopt a new strategy in its counter-insurgency drive to fi- nally put an end to the four dec- ades-old conflict.


The Armed Forces spokesman, COA chides Duty Free for excess payments


THE management of Duty Free Philippines made irregular payments for executives and Bureau of Customs personnel, the Commission on Audit (COA) reported. In its latest report on the duty and tax-free merchandizing organization, the Audit agency raised questions over the 2009 Collective Negotiation Agreement (CNA) incentives made between Duty Free and its employees’ association. According to the audit agency, the accrued ex- penses of Duty Free, a government-owned and - controlled corporation, in 2009 included CNA incen- tives amounting to P8.9 million. The rank-and-files get the lion’s share of P4.6 million, while executives, managers and supervisors get P4.3 million. However, the commision chided Duty Free for not conforming to the Budget department’s Circular 2006-1, which stated that executives, managers and supervisors are not supposed to be included in the disbursement of the said incentives. As stipulated in the circular, only “rank-and-file


employees who are members of employees’ organi- zations [and] other non-managerial employees who are not members of employees’ organizations but enjoy or accept benefits under the CNA” are entitled for the incentives. The Civil Service Commission, in its letter dated Decem-


ber 9, 2009, also expressed the same observation. Duty Free also incurred warehousing expenses of P35.76 million for the overtime services of BOC personnel, which allegedly did not conform to the overtime guidelines and procedures of govern- ment personnel. In 2009, the total warehousing expenses of Duty Free amounted to P40.32 million of which 89 percent, or P35.76 million was made to pay only for the overtime services of Customs personnel. The overtime


Securing payment of debt through compromise


Dear PAO,


My friend owed me P150,000.00. She was supposed to pay the whole amount in July 2010 but she did not give it to me when I demanded for its payment. She asked me not to sue her in court. As much as possible, I also do not like to go through the process of liti- gation but I want to have a se- curity that she will pay me. Is there a form of agreement that we can execute to assure that my friend will pay me? Can I go to PAO to help me in my problem? Trisha


Dear Trisha, We highly agree with your de- cision to just settle your problem with your friend out of court. Court proceedings can be tedious and wearisome not just to the respondents but also to the plaintiffs. Out of court settlements are highly encouraged to save the parties from the burden of going through legal processes and to declog our courts from its thou- sands of dockets. You and your friend may enter into a compro- mise if you do not want to submit your case to the determination of our courts. A compromise is defined as a contract whereby the parties, by making reciprocal concessions, avoid litigation or put an end to one already commenced (Arti- cle 2028, Civil Code of the Philippines). Upon entering into a compromise, you and your friend may execute a compromise agreement reflecting the different concessions that you have reached so as not to pursue it in court. In compromise agreements, the debtor usually undertakes to pay the creditor the total amount of his debt imme- diately or at a certain period of time. If your friend fails or refuses to abide by the terms of your com- promise agreement, you may either enforce the compromise or consider it as rescinded and in- sist upon your original demand by going to the court. On the other hand, if your friend religiously complied with your compromise agreement, you


may no longer proceed with her in court because the compromise agreement has the effect of ad- judicating your claim against your friend. The Public Attorney’s Office gives free legal services to indigent persons in all civil, adminis- trative and criminal cases. Our office also extends non-judicial services such as legal counseling and documentation, notarial services and mediation and conciliation of disputes. You may go to the Public Attorney’s Office nearest to the place of your residence for the mediation of your case. If you and your friend reached a settlement, the lawyer who will be assigned to you shall prepare a com- promise agreement, which will be signed by both of


you. However, to be able to seek assistance from our office, you must pass the indigency and merit tests as mandated by the Public Attorney’s Office Law and its Implementing Rules and Regulations. A person shall be considered an indigent if his net income does not exceed P14,000 if he is re- siding in Metro Manila; P13,000 if he is residing in other cities; and P12,000 if he is residing in other places. A case shall be considered meritori- ous if an assessment of the law and evidence on hand discloses that the legal services of the office will assist, or be in aid or in the furtherance of justice, taking into consideration the interests of the party and those of society Finally, we wish to remind you that this opin- ion is solely based on your narration of facts and our appreciation of the same. The opinion may vary if other facts are added or elaborated. We hope that we were able to address your concern.


Editor’s note: Dear PAO is a daily column of the Pub- lic Attorney’s Office. Questions for Chief Acosta may be sent to dearpao@manilatimes.net or via text mes- sage (key in: Times dearpao <YOUR QUESTIONS> and send to 2299).


pay amounted to P19.27 million, while meal and travel allowance totaled to P7.65 million and P8.84 million, respectively. The rates were based on Customs Administrative Order 1-2005. Under the Customs Order, each Customs personnel is entitled to a specific hourly overtime rate depending on his position. But under the Budget department’s Circular 10, the basis will be the employee’s salary.


Also under the Budget department’s Circular,


“meal allowance shall no longer be allowed . . . while there is no provision that includes traveling allowance.” The bureau said that they collected the rates


because the Customs Order stipulates the rules and regulation of overtime pay for Customs personnel at the Ninoy Aquino International Airport (NAIA). COA said, however, that it is inappropriate to


follow the Customs Order because the BOC personnel were assigned at the Duty Free Integrated Ware- house and Fiesta Mall and not at the NAIA. “Even if the [Customs Order] would have included those outside of the NAIA, the guidelines did not conform to the [Budget department’s] Circular, which governs the overtime pay of government personnel,” COA said. JOHN CONSTANTINE G. CORDON


Brig. Gen. Jose Mabanta, Jr. ex- plained that from the traditional search and destroy operations, the military would shift to a civil-mili- tary campaign that involved “much, much lesser” combat to win the hearts and minds of the people, and convince the CPP-NPA to put an end to their protracted struggle. “This is a total paradigm shift


from we call a traditional military campaign plan,” Mabanta said. “Winning the peace, meaning to


say getting people on our side, get- ting those who advocate armed struggle realize the futility of their efforts in as much as what they are fighting for are all being address at, all the issues,” he added. According to Mabanta, the new


strategy, which would replace the ex- isting internal security campaign plan, Oplan Bantay Laya, would be un- veiled during the Armed Forces anni- versary this month and would be im- plemented starting January 1, 2011. The heads of the negotiating panels of both camps agreed upon the 18-day SOMO namely: former


priest Luis Jalandoni for the NDF and lawyer Alexander Padilla for the government. Meanwhile, the military, according


to David, had recommended the SOMO to the Department of National Defense and the Office of the Presi- dential Adviser on Peace Process. The declaration of SOMO is a policy directive that has been done by the past presidents following the recommendation of the Armed Forces chief of staff.


The declaration of SOMO, tra- ditionally observed during the Christmas season, is usually recip- rocated by the CPP-NPA. However, it can also be declared to advance peace and stability in conflict ar- eas prior to the resumption of peace talks between the govern- ment of the Philippines and the CPP-NPA or the Moro Islamic Lib- eration Front (MILF), The SOMO would only be exclu-


sive to the NPA since there is an existing ceasefire agreement be- tween the government and the separatist MILF.


People’s fund from VAT proceeds proposed


A lawmaker has proposed the creation of a “people’s fund” which pools value-added tax (VAT) collection proceeds in a bid to promote public health and education. Rep. Reynaldo Umali of Min- doro filed House Bill 1142, which would mandate that 30 percent of all proceeds from VAT shall form the people’s fund to be used for public education and health. “The said portion shall be de-


rived from all proceeds from the VAT after the share of the Bureau of Internal Revenue from actual VAT collections in excess of its collection goal has been de- rived,” Umali said.


He said the fund would help close the resource gaps in teach- ers’ training and salaries, class- rooms and school buildings and help alleviate problems of sub- standard government hospitals, and the lack of medical person- nel and equipment. “To ensure that the people’s


fund will cater to the people’s needs, the President is asked to embark on broad consultations through the different depart- ments and agencies of govern- ment on a three-year utilization plan for public education and health,” Umali explained. According to him, he shall submit a three-year utilization plan to Congress for approval. The proposed People’s Fund bill, which amends the National Inter- nal Revenue Code, will not dimin- ish the allotment to local govern- ments from VAT as provided for under the Local Government Code. The fund shall not be used to augment the maintenance and other operating expenses of any national government agency; gov- ernment owned and controlled cor- porations and local governments. The measure provides that education and health services shall get 50 percent each from the people’s fund.


RUBEN D. MANAHAN 4TH


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