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| ON THE OTHER HAND |
| Uncle Dick and Ate Glo By Antonio C. Abaya Written Jan. 03 2006 For the Standard Today, January 05 issue The last American ambassador posted in Manila, Francis Ricciardone, left for his new post in April 2005. His temporary replacement, as charge d�affaires, Joseph Moussomeli, left for his new post the following July. The US Embassy in Manila, therefore, has been without a top diplomat for the past six to eight months. Unusual for a host country that has been touted as �a major non-NATO US ally.� Actually a new ambassador was named about three months ago, but she has not assumed her post, probably to wait out the resolution of the Gloria problem. This, I told Ricky Carandang when he interviewed me on ANC last December 30, is a not-so-subtle American signal that the US government is not happy with the Arroyo administration. For his part, Ricky recalled that when GMA asked for a one-on-one meeting with President Bush during the APEC Summit in Busan (Korea) last fall, her request was declined. Another not-so-subtle signal. In fact, I have gone on record several times in this space that the neo-conservative cabal in Washington, headed by Vice-President Dick Cheney (Uncle Dick), has been itching to remove President Arroyo (Ate Glo) from Malacanang for more than a year now, and they are not likely to wait until her (contested) presidential term expires in 2010 to see this happen. I have also written that the neo-cons had wanted deposed president Joseph Estrada to return to power, but they have since changed their minds after it became apparent that Erap was involved (as financier) in the theft of dossiers on GMA from the White House office of Cheney by indicted spy Leandro Aragoncillo. The US National Security Agency may also have been the original source of the Hello Garci tapes. (See my article last week �Uncle Dick and Lolo Abat.�) The NSA is currently embroiled in a controversy in Washington over its warrantless wire-tapping and electronic eavesdropping on US citizens. For those who may have tuned in late, let me give a brief backgrounder on the neo-cons. A more detailed exegesis appears in my �Uncle Dick and the PNAC� (Sept. 07 2004). PNAC is Project for the New American Century, a grouping of American conservatives formed in 1997, long before George W. became president. The PNAC, even then headed by Cheney, called for a more vigorous projection of American military power and a more pro-active proselytizing of American economic and political values. In September 2000, one year before 9/11, the PNAC issued a paper titled �Rebuilding America�s Defense Strategy, Forces and Resolve for a New Century.� Among the PNAC�s priorities were: establish full military control of the Middle East, encourage regime change in Beijing, and increase US forces in Southeast Asia. But the neo-cons admitted in this paper that without �a new Pearl Harbor� it would be hard to sell this program to the American public. Fortuitously, Al-Qaeda�s attack on 9/11, one year later, provided this �new Pearl Harbor.� It can be said that the March 2003 US invasion of Iraq was planned before 9/11, and even before George W. became president. Because no one in her inner circle apparently knew anything or much about Uncle Dick�s PNAC, Ate Glo unwittingly undermined, however tangentially, the above three neo-con priorities, all related to oil, which should surprise no one. Cheney was CEO of oil giant Halliburton, George W. of two smaller Texas oil companies, before they became the highest officials of the US. By pulling out the 51-man Filipino contingent from Iraq in July 2004 � to save the life of one Filipino truck driver � President Arroyo weakened, if only symbolically, the Coalition of the Willing that was set up to establish, for the PNAC, �full military control of the Middle East,� even if that enterprise has turned sour. Never mind that, since then, the Dutch, the Ukrainians, the Bulgarians, the Spaniards, the New Zealanders, etc have also pulled out or reduced their troops in Iraq. Only Ate Glo�s Filipinos withdrew under a direct threat from the insurgents, which the neo-cons saw as a sign of weakness. The Heritage Foundation, one of the three think tanks of the neo-cons, not surprisingly called GMA in November 2004 the �weakest leader in Southeast Asia.� By signing an agreement with Beijing for the joint exploration for oil in the Spratlys, apparently without informing the Americans beforehand, President Arroyo also undercut the forward strategy of the neo-cons, who see China as the US� next strategic enemy. If there is oil under the Spratlys, the Americans want it for themselves. Or, at the very least, they want to deny it to Beijing. But President Arroyo has, in effect, given it to the Chinese since, in this joint venture, the Philippines is only a junior partner, not having the money or the technology for such a high-tech enterprise. Only last month, the Heritage Foundation accused President Arroyo of succumbing to the blandishments of the Chinese. Or words to that effect. Finally, the neo-cons are worried about the capability of the Philippine military to meet the challenge of the Jemaah Islamiyah or JI, especially in Mindanao. The JI wants to establish a Pan-Islamic state that will incorporate the territories of Indonesia, Malaysia, Singapore, Brunei and the southern parts of Thailand and the Philippines. This means that the considerable oil and gas deposits in the region are at risk, as is the Strait of Malacca through which pass the oil and gas imports of Japan, Taiwan, South Korea and China from the Middle East. Hostile control of this maritime chokepoint would jeopardize the economies of these four countries and, since they are major trading partners of the US, the American economy as well. In anticipation of this threat, the Americans, following the strategy of the PNAC, have established forward bases and listening posts in southern Mindanao, Basilan and Sulu (See my article �Why the Americans Are in Basilan and Sulu,� June 06 2002.) These bases and listening posts would not be possible in Indonesia, Malaysia or Brunei, since the indigenous populations are predominantly Muslim and would be hostile to such an explicitly anti-Islamic presence. Nor would they be possible in Singapore, since it is too small to accommodate them. It is only in Mindanao that a) there is ample space, and b) the indigenous population are predominantly Christian and actually welcome the American presence as a protection against Muslim separatists. But the Philippine military, under President Arroyo, is poorly equipped, poorly led, poorly trained and poorly motivated, aside from being wracked by massive corruption at the top and demoralization in the middle and lower ranks. It is not a coincidence that in March 2005, outgoing Ambassador Ricciardone, in a speech before the Foreign Correspondents Association of the Philippines (FOCAP), urged the Arroyo government to conduct a continuous trial to hear the plunder charges against Maj. Gen. Carlos F. Garcia. Ricciardone offered to give the Arroyo government all the documentary proofs it needed to prosecute Garcia, since it was US Customs who arrested the two Garcia sons at San Francisco airport trying to smuggle in $100,000 in cash, and it was the US Homeland Security department that gathered documentary evidence of Garcia�s real estate holdings and bank accounts in the US. (See �Plunder and Gen. Garcia�. March 22, 2005) But Ricciardone�s suggestion and offer of help were ignored by President Arroyo. Instead the AFP court-martialed Garcia for under-declaring his statement of assets and sentenced him to two years at hard labor, while his trial for plunder (which is punishable by death) proceeds at the pace of a drunken snail. To the Americans, and to everyone else outside the Arroyo government, this can only mean that President Arroyo is not serious about cleaning up the corruption in the military. Probably because that would entail prosecuting other generals and top defense officials in cahoots with Garcia, whose loyalty she needs in order to stay in power. This means continued corruption at the top in the military, and continued demoralization in the middle and lower ranks. (A recent directive removing the bidding process from the AFP�s procurement system encourages more corruption.) These cannot but have an ill effect on the capability of the AFP to overcome the long-running communist insurgency, or the imminent threat coming from the Jemaah Islamiyah. Lately, the AFP has been taking a beating from the NPA, who have learned to use IEDs (improvised explosive devices) with devastating effect against the military�s trucks and APCs, which weapon insurgents have used successfully against the Americans in Iraq. The implication of this is that if the AFP cannot score a decisive victory against the NPA, even less likely would it be able to neutralize the JI, who will pose a bigger threat in the near future, with more highly motivated Islamists using more lethal tactics and weapons. The Americans are looking for a New Magsaysay. Assuming they find one soon, I would not be surprised if Uncle Dick were to give Ate Glo a choice. Either abdicate soon and be assured of safe refuge in the US, with all assets intact. Or resist and be thrown to the wolves and risk losing everything. Which will it be? ***** Reactions to [email protected] or fax 824-7642. Other articles in www.tapatt.org OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO |
| Reactions to �Uncle Dick and Ate Glo� (Copy furnished of email sent to seven egroups) This essay should put aside any more wondering. The pieces neatly fit together, eh? The picture is clear. The guessing game should now move on seriously to who will replace Ate Glo. If so, we need to do it fast. The political impasse is causing us some terrible griefs. But is the guessing game, of course aside from who will replace Ate Glo, really over? What about the Church? Will the Church who has been the primary factor of Ate Glo's longevity finally abandon her? The new Pope, the man whom our bishops take their cue from, does not seem to see eye to eye with Bush. He does not appear to be romantic to Bush as his predecessor was to Reagan and Clinton. From our own Bishops' actions that are reflective of the Pope's wishes, in so far as the Garci tapes are concerned, it appears that Pope Benedict XVI is not inclined to support Bush. The reason probably has its basis on Pope JPII's disdain for Bush's terror wars against Afghanistan and Iraq. Unless Vatican softens to the terror wars of Bush our Bishops will continue to support Ate Glo. In my humble reckoning, the Vatican has no intention of giving up on its stand for inoent civilian lives lost from what it sees as an unjust war, with or without UN sanction. Did Ate Glo got Pope JPII's nod before she pulled out our 51 troop contingent from Iraq? My answer is, in all likelihood, Yes. And the only consideration was her curtsying before Pope JPII's war policy against Bush's terror wars. Is the guessing game really over? What about the anti-Bush Americans? The democrats who oppose Bush and Cheney's dishonorable war profiteering opportunisms? Would they who are able to connect the ouster move against Ate Glo with Bush-Cheney's evil scheming go with their president? What about our Muslim neighbors who dominate our part of the world, they with their Middle East brothers who eagerly welcome a good percentage of our $12B earning OFWs? What of our own Muslims? Giving up their own lands to Bush of USA who supplies their enemies with money and arms? The USA who became their new master after the Spain left the Philippines? What about China who is helping Ate Glo and distrusts the USA? Can the USA afford to offend China with whom she has around $160B trade deficit, and an unprecedented never ending queue of McDonald hamburger customers? Would China agree to oust an ally, now a very close friend to favor one who has been its tormentor for a long time and one who stands out as its number one enemy in the near future? What of the rest of Asia that are in competition with the USA? Would they want the USA thru RP be so secured in their own territory that they can no longer stand toe to toe in the market against her? Following ACA�s arguments, it may be concluded perhaps with a fair degree of accuracy that the USA is after Ate Glo's hide. But considering the above discussion, notwithstanding what Bush has been doing to us [not only to Glo, mind you, but us, every Filipino, such as a "concerted" credit downgrading and other debasements to our businesses, culture and our own persons, and to our public officials before the eyes of the world; and inflicting a continuing bloody torture of collection on overdue interests and maturing loans] Ate Glo may yet stand a chance of survival until 2010. It is hard to count GMA out because look at what she has managed to accomplish since the Garci Tapes came out? She has stayed in office, overcoming crisis after crisis, and has managed to bring our peso up no matter what the real causes may be. The causes, even if they were the wrongly claimed ones, do not matter much in view of the visible goodies that she has managed to bring to the surface into full view of everyone, mostly the masa - the SEAGames victory, the stronger peso, investments continue to pour in, the decline in fuel costs, the silenced political protests, declining corruption investigation, and the continuing LGU, House, PNP and Military supports. And no foreign country has openly criticized her. In fact she continues to get recognitions and acclaims during her international travels for standing up to her detractors and destabilizers, a job well done, and for substantive and relevant speeches. As our Flipzi keenly noted, Ate Glo still managed to come out looking fairly good no matter how difficult the circumstances of her struggles had been. Flipzi says, isn't it that what all she has been doing "allegedly to survive according to her detractors� greatly benefit the nation? Reminds me, it's Erap once again, Folks, giving as fast and as many to appease the injured and complaining during his final crisis moments. But unlike Erap, I believe Ate Glo is far smarter to just give and give without seeing the real benefit and dismal consequences; then fold up limp, fall down thegutter like he did and cry foul! Another credit that would surely go to her is the realization of the dream to move toward a parliamentary system that has been clamored by many for some time now, at least since the start of the Ramos presidency. If however she is not successful, she can still be aptly recognized for her �frenzied� moment of trying hard to do what many of us are aspiring for even if the real intent was for personal survival. But you know, this personal survival is hard to validate in view of the many endowments she has realized for the poor, the oppressed, for the common farmers and fishers, and the common working man, for business, and for the whole nation during the past six months. If the superpower USA is really after Ate Glo's hide, as some pundits and "experts" are claiming, especially from the opposition, I hope Bush-Cheney will finish their dastardly task as soon as possible. WHy the hurry? Well, just look at our state of affairs since this alleged USA-initiated scandals broke? I think the devastations this ouster-attempt are causing the nation are far greater in magnitude than what GMA actually did prior to the Garci scandal, or is ever capable even if left alone to her whims unopposed. That is, if her self-acclaimed devotion to her God is real. Who knows? It is really hard to believe that an early morning riser, hard working woman like her, talented and well educated, good family relation, and one who has attained her ambition in public life that ONLY 13 other Filipinos ever did reach since the republic was born 50 years ago will be so blind to the sad fate that befell two devilish predecessors - Marcos and Erap, throw away her good father�s name in vain, and knowingly commits what is evil before her very God! And what of every good and bright child�s ambition to follow her father�s footsteps, to be able to do what he failed to accomplish and leave a better and far more enduring legacy than she inherited? A legacy thatwill benefit all! I hope Folks, that if this Bush-Cheney initiated ouster movement is true, that we completely realize what it means to all of us. Gez, Folks, I can�t get over the feeling that we had been had. I don�t know why. Maybe it is because of the self-interest reputation of the Americans. Since the Americans are known to work solely for their interests almost all the time [99.9%?], I hope what this Bush-Cheney tandem is doing to Glo and us will be paid for commensurately in blessings for us for all times to come. Only that particular good end result will prevent me from declaring in utter disgust and (rest of sentence lost.) The final moment of truth, I pray, will come swiftly with us adroitly reacting to profit in the best way possible. Our nation can only stand so much. I am afraid it is very near its breaking point. Bush-Cheney should really hurry up. Paz B. Reyes, [email protected] Jan. 06, 2006 wwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwww I just hope the new Magsaysay they're looking for hasn't retooled his career, become a nurse and migrated to Canada. Rafael Santos II, [email protected] Roxas City, Jan. 06, 2006 wwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwww Thank you for sending me your article �Uncle Dick and Ate Glo.� My eyes are bothering me so I could only take a fast read and I am very interested. Ii am trying to write for my Mom�s centenary in 2007 and I cannot quite separate Mom from Dad. . Ii do have one item which goes very well with what you are saying. Congratulations. Kkeep an eye on Cheney! Lina Araneta Santiago, [email protected] Jan. 07, 2006 wwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwww Sir: You make very interesting observations on how the U.S. sees relations with the Philippines. Interestingly, you also point out correctly that Mindanao is predominantly Christian (outnumbering Muslims by at least 4 to 1) and, generally, sympathetic to the Americans. Media usually gives the impression of Mindanao being primarily Muslim, ignoring almost 20 million Christians who live there. The minority Muslims in Mindanao only get recognition from media and the government because they have attained a status of belligerency. Unfortunately for the Christian majority, their own media and their own government do not give them the respect and recognition they deserve, simply because they do not whine or resort to violence in order to bring attention to their grievances. The truth is that Mindanao Christians are just as neglected as their Muslim brothers. Mindanao Christians have just as many grievances against the central government as do their Muslim brothers. Perhaps even more so, because they are just taken for granted. Mindanao Christians are not prone to bellyaching or mendicancy, they toil along and take things in stride. They are a sturdy, enterprising and hardworking people, descended from tough pioneers who survived through rough spartan conditions. Having pointed these facts out, I must disagree with your statement that Mindanao Christians would "actually welcome the American presence as a protection against Muslim separatists". There is a myth about the great Moro fighters and how they have never been subjugated. But Moros have been defeated, and even subjugated, in several instances. In many areas in Mindanao, Muslims had to retreat and give up their lands because they could not defend them against the Christians. Had Mindanao Christians been given free rein, they would have exterminated the mythical Moro fighters long ago. The Moros are no match to the ferocity and the bravery of the Christian pioneers (be they Ilaga, Ilocano or Cebuano). In fighting the Muslims, the Christians had to be held back because of apprehensions about human rights violations and genocide. As a rule, Mindanao Christians do not fear the Muslims. It is more likely the other way around. However, Christians and Muslims in Mindanao can still work together for a common cause. With each passing day, they are both becoming more and more aware about the dire straits of the central government. As the political and financial problems weaken the central government, Christians and Muslims become more attracted to the thought of breaking away and seeking their own fortunes. Should the Americans be generous enough to provide any help, it will surely not fall on deaf ears. Juan Deiparine, [email protected] Toril, Davao City, Jan. 07, 2006 wwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwww I truly enjoy your in-depth analysis of the US-CIA intervention in our internal affairs, but I would like you to have more information on the technological advantage as far as implementing their new world order with the Philippines as a base while the G8 maintains their role as back up forces. Kindly read up on some of my topics which I have come across in my dabbling with the internet. I am extending my salute to you for your concern for our state. Teddyboy Tagle, Jr., [email protected] Jan. 09, 2006 wwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwww Tony on TV (10) Isn�t it time you had your own TV program? These interviews are far too short. A TV program that approximates the brilliance of your written columns would give Dong Puno and all the rest a run for their money. It's a consummation devoutly to be wished. Vic C. de Jesus, [email protected] Jan. 07, 2006 Tony, Is there a video recording that we can download? Nonoy Ramos, [email protected] Pennsylvania, Jan. 07, 2006 MY REPLY. I understand from a reader in New Jersey that these interviews are sometimes broadcast on The Filipino Channel. But you�ll have to ask them about schedules. wwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwww This article first appeared in BusinessWorld and was emailed to us by Ben Sanchez. Musings on the year of the (she) dog: no Garci crisis, but no cigars either By Romeo L. Bernardo, former Undersecretary of Finance Coming into the new year last year, one of the foremost concerns of analysts in business and academic circles was the prospect of a debt crisis as continued poor revenue effort constrained government's ability to rein in its rising debt ratio. While there remained a lot of hope given remittance-driven domestic economic growth, the fear then was of an event-triggered fiscal blowup, with government unable to re-finance its maturing obligations and forced to default on its foreign currency-denominated debt, a large chunk of which was held by domestic banks. 2005 came and went and thanks to excellent fiscal, debt and monetary management and passage at last of the EVAT Law, there was no debt crisis; but as expected, the economy just muddled through. A welcome development was that despite the "Hello Garci" political storm and "Hyatt 10" resignations, yields on government dollar debt papers, a.k.a. "ROPs", remained steady. In fact, even before the EVAT was finally implemented in November, some investment houses were giving an "overweight" recommendation on Philippine government credit. A lot of the interest in ROPs (and other emerging market debt for that matter) was attributed to "liquidity" in global financial markets. What was not evident however was who these investors were. Apparently, as discussed in the latest issue of the IMF's Global Financial Stability Report and reported in a recent issue of The Economist, there has been an increase in the size and importance of institutional investors such as pension funds (according to The Economist, these institutional investors invested some $7.3 billion in emerging markets in the first half of 2005, 74% more than the comparable period in 2004). As pointed out in the IMF report, what is significant about this development is that given these funds' long-term orientation, they are less likely to just up and leave on market noise and thus, may have a stabilizing effect on the market. Moreover, with a more sophisticated investor base able to distinguish between idiosyncratic and systemic events, there is less risk of contagion similar to the 1997 Asian crisis. This development, coupled with the earlier observation that domestic investors, who have greater appetite for Philippine risk, hold some 2/5s of Philippine government securities through the banking system, makes the prospect of an abrupt market shutdown unlikely over the short-term. Still, there is nothing to stop these institutional investors from gradually reducing their exposure to the Philippines if economic fundamentals fail to improve materially over time and especially when compared with progress in other emerging markets. Entering 2006, the fact that global financial markets remain liquid, or that government is expecting to improve its tax collection with EVAT, or that local financial markets appear bullish as seen in gains in local stock and bond markets and strengthening of the peso, should not be taken to mean that "the runway is clear and takeoff is at hand" ("GMA: Economy off to flying start", Philippine Star, 01/04/06). Behind these headlines are stories of doctors turning to nursing to better provide for their families, of weak dollar demand because of declining fixed investments (due in turn to the political problems and high oil prices), of the rise in portfolio investments (encouraged by the passage of the EVAT) which, nonetheless can flow the other way anytime. In the end, all we're seeing may just be a break from the endless battles that this Presidency has had to engage in and will likely continue to have to face if it is not able to get its act together and plan out steps to quickly revive investments. In this regard, well thought-out pro-poor spending, say on education, water and key infrastructure would certainly make more sense than doling out government "savings" in food subsidies ("GMA announces P35-B subsidy for food", PDI, 01/03/06) � witness the short-lived Kadiwa program in the 80s. After all, risks to global growth remain (e.g., from oil prices, interest rate hikes) and the Philippines needs to work on strengthening its economic fundamentals to have enough cushion against any negative shocks. The year of the dog is expected to bring good fortune. Lady Fortune however is known for her fickle moods.***** wwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwwww The following article first appeared in BusinessWorld and was emailed to us by the author. The E-Vat on Electricity By Dean de la Paz Senate Minority Leader Aquilino Pimentel and Senator Mar Roxas were right all along. The opposition to E-Vat on electricity spans the political spectrum as wide as it impacts deeply into economic multipliers embedding where it has no business and bloating costs to subsidize Gloria Arroyo�s expense account. Utilizing Eng. Mon Ramirez�s brief treatise analyzing its misuse as well as other published data, we realize how we are at once victimized by spins and yarns and the Energy Department�s misapplication of VAT. Senator Pimentel questioned its constitutionality and Sen. Roxas had reservations on its application at the topmost portion of a production chain were it wreaks the most havoc. Unfortunately, both were overwhelmed by the toxic spins of DOE�s yarn that it would have little effect on tariffs. Add here a dose of trapo bureaucracies and a peppered court. An analysis by electrical engineering topnotcher Ramirez however proves both right as he unbundles our electricity bill and identifies where the VAT is not only misapplied but by its mere presence inflicts an economic injustice. It is difficult to believe that the gatekeepers at the Energy Department do not comprehend the folly they boldly endorsed. So to pry open little minds and assist the incompetent understand, let us go into specifics. One anomaly is where Ramirez observes consumers shoulder the franchise tax burdens of service providers such as distribution utilities. This is aggravated as government imposes an E-Vat on those. Two aspects are important here. Though often a common albeit inequitable practice, as a consumer is passed the franchise taxes of a service provider, he, in effect, is taxed the liability. To apply a consumption tax on passed-on franchise taxes as does the E-Vat, effectively collects a non-consumptive franchise tax on consumers. On his Meralco bill, Ramirez notes �Meralco was awarded the franchise but it is us who pay the tax on its franchise, and the government taxes our payment for the franchise tax.� It seems energy authorities have miscomprehended the nature of VAT. It is to be applied on the value of an input and not on just any cost component, especially not on a tax a franchise holder should be carrying. Ramirez further notes that �we pay a tax of 6.52% on the systems loss charge�. Systems loss is the electricity lost from pilferage or technical and administrative inefficiencies. Initially borne by the service provider and passed on to consumers, they are neither raw material nor input costs. Rather, they are spawned by self-created inefficiencies and are by no means consumed. They appear in our bill because these are passed on. But by taxing system�s losses at the consumer level as does E-Vat, the consumer is again doubly taxed for an anomaly already suffered through electricity paid for but neither received nor enjoyed. Again here is a misapplication of the E-Vat. One that serves neither the interests of the distributor nor the consumer. Instead, the aberration serves the interests of a deficit-cursed government, and where one is especially insatiable, energy sycophants might just be so inclined to suck up rather than correct the misapplication. Ramirez also notes that consumers donate Php 0.1125/kwh as a subsidy to others whose consumption allows them discounts ranging from 20% to 50%. Here applying E-Vat makes the least sense as the consumer is penalized for helping correct an economic imbalance. Subsidies occur where there are economic inefficiencies and economies of scale penalize consumption falling below economic quantities. Hucksterism has re-named subsidies as �lifeline rates� supposedly granted by service providers though the amount is donated by and ultimately charged on consumers. Again E-Vat is misapplied. The donation is charged a VAT even as the economic inefficiency, those �lifeline rates�, are neither inputs nor consumable by the entity paying the E-Vat. In other words, the consumer coerced to correct inefficiencies is additionally taxed for it. If this is not an injustice, then what is? Aggravated by ridiculous standards in determining the �lifeline� subsidies where in one instance the government uses an overly simplistic household minimum of two 20 watt bulbs and a 150 watt radio to measure demand, while simultaneously differentiating according to geographic and cooperative-based criteria, the misapplication of E-Vat on subsidies turns predatory. See where, following the logic of intellectually-challenged officials the lifeline rates stipulated for Meralco is a 50% discount for those who consume 50 kwh per month or less and 5% discount for those who consume from 91 to 100 kwh per month. Match this relatively broader range against a slim 5 kwh per month band in the Visayas where Visayan Electric (VECO) offers a 35% discount for consumption of 50 kwh per month or less and 10% on 55 kwh per month and up. Go to any other utility�s lifeline discount band and you will find a different kind of formula. Davao closely resembles Meralco�s with a 10 kwh/month difference while Cebu has lower minimums following Ilocos Norte. Comparing each, it is apparent that the DOE, as the industry�s policy-making body has not rationalized a studied lifeline policy and when these inequities are set against an imposition of E-Vat, the resulting tax disparities indica te haphazard taxation at best and a clueless DOE at worst. Worsened by another misapplication of the VAT on a non-input value such as the Currency Exchange Rate Adjustment (CERA), it behooves us to ask why a VAT is imposed on currency devaluations as it is on subsidies. Where is the value of a devaluation that it should be taxed? Are we simply imposing E-Vat on anything and everything? We really should have listened to Senators Pimentel and Roxas when they warned of E-Vat �s abuse. At the end of the day it is not surprising that the public feels energy officials have been lying all along about the effects of E-Vat. It is either that or they do not know their own tax arithmetic and are unaware they have been lying. When one is unaware that one is stupid, now that�s really pathetic.***** OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO |