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ON THE OTHER HAND
Who Killed Ninoy?
By Antonio C. Abaya
For the
Standard Today,
August 23, 2007 issue


This is a reprise of an article that appeared in the August 26, 2004 issue of The Manila Standard and the Sept. 04, 2004 issue of the Philippines Free Press. It is one of the most read articles in www.tapatt.org.

Even after 21 years, it can be said with certainty that Ninoy Aquino was not killed by the communists, nor by Rolando Galman, who was positioned under one of the engines of the jetliner, dressed as a maintenance mechanic, as Ninoy was led down the stairway by his military escort.

Some nine hours after Ninoy�s assassination, President Marcos announced that Galman had been hired by the communists to kill Ninoy, but he was believed by no one. That Macoy was telling an obvious lie merely reinforced public perception that the assassination had been masterminded by someone in or close to Malacanang.

The forensic evidence submitted to the trial court established that the trajectory of the fatal bullet was �forward, downward and medially�, the bullet entering Aquino�s skull near his left ear and exiting at his chin. This was consistent with the gun being fired at Aquino by someone behind him who was at a higher plane than he was, such as someone who was one or two steps behind him on a downward flight of stairs.

Since they were of similar height, if Galman had indeed shot Aquino at ground level, as claimed by Marcos and his military, Galman would have been jumping up in the air, or holding his revolver above his own head, at the moment that the shot was fired. A ridiculous firing position for anyone, especially a cold-blooded assassin.

So there is absolutely no doubt that Aquino was shot by one of his military escorts as he was being led down the stairway. Galman was shot as the fall guy so that Marcos would have his �communist� hit man to blame for the dastardly deed. And Galman was shot, not once like Ninoy with a pistol, but several times with assault rifles. They really wanted to make sure that Galman was daid. Dead men tell no tales.

But live ones do. Interest is being fanned to re-open the Aquino-Galman double murder case, largely on the written testimony of one of the convicted conspirators, M/Sgt. Pablo Martinez, submitted to the Public Attorney�s Office. In his affidavit, Martinez claims that he had personal knowledge of the Aquino-Galman murder plot.

He said he was tasked by Col. Romeo Ochoco, then deputy commander of the defunct Aviation Security Command or Avsecom; Brig. Gen. Romeo Gatan of the Constabulary; and Herminio Gosuico, a civilian businessman from Nueva Ecija, to escort Galman from a hotel near the airport to the tarmac, to await the arrival of Ninoy from Taipeh. Martinez said that two of the three men (not all three, as reported in some media) were associated with businessman Danding Cojuangco.

(The records of the Agrava Fact-Finding Commission showed that Gosuico, along with Air Force Col. Arturo Custodio and two others, fetched Galman from his house in San Miguel, Bulacan, on Aug.17, 1983.) 

This is not the first time that Martinez has made public his involvement in the plot. In March 1995, in one of a series of eight articles by Raymond C. Burgos in the
Philippine Daily Inquirer, Martinez revealed that his mission, as spelled out by Col. Ochoco, was, in the event that Galman failed to shoot Aquino, to kill Galman and then finish off Aquino.

Martinez said he and Galman were briefed on the assassination plot at the Carlston Hotel near the domestic airport on the night of Aug. 20, 1983. Present at that briefing were Gen. Gatan, Col. Ochoco and Gosuico. That evening, Ochoco gave Galman a .357 Magnum revolver, while Martinez was given a Smith & Wesson .38 cal .revolver. (There is no space here to go into all the details. Watch out for them in www.tapatt.org.)

Martinez said that on the morning of Aug. 21, two female friends of Galman dropped by to have breakfast with him and Galman. It was the first and last time that he, Martinez , saw the two women. Several days after the assassination, he saw their pictures in the newspapers; they had been reported missing.

The two women turned out to be Galman�s girlfriend Anna Oliva and her sister Catherine. They were snatched by unidentified men from their workplace on Sept. 4, 1983 and were never seen alive again. Their remains were later exhumed from a sugarcane field in Capas, Tarlac in 1988.

Galman�s wife Lina Lazaro was picked up by two men from her house on Jan. 29, 1984 and was never seen again. During the Agrava Fact-Finding inquiry, Gosuico was identified as one of those two men by Galman�s son Reynaldo and stepdaughter Roberta Masibay.

Clearly, Martinez� mention of Ochoco�s and Gatan�s participation in the assassination plot constituted new evidence since the two were never indicted in the Agrava Fact Finding inquiry nor in the Sandigambayan trial that convicted the 16 soldiers. But the case was not reopened in 1995 despite the efforts of then Sen. Blas Ople and then state prosecutor (now Justice Secretary) Raul Gonzalez.

In another series of articles by Burgos in the
Inquirer in August 1995, Gonzalez was quoted that the government could have won more convictions if then President Corazon Aquino �had shown as much enthusiasm and interest in her husband�s murder trial as in her libel case against (then Philippine Star) columnist (now dead) Luis Beltran.�

This statement must be taken in the context of Rep. Noynoy Aquino�s repeated demurrals over the past few years that his uncle Danding Couangco had anything to do with the assassination of his father Ninoy, while no less than one of the convicted conspirators has issued statements and signed affidavits, apparently without anyone pressuring him to do so, that Danding had something to do with it.

Are we seeing here an attempt to hide � or at least to prevent from being made public - some dirty linens in the interconnected family closets of the Aquinos and Cojuangcos? After all, some of those who knew him well say that despite his well-deserved status as hero and martyr, Ninoy was no saint or angel.

In a letter to then President Fidel Ramos dated Jan 19, 1994, and quoted by Burgos in his
Inquirer story of March 13, 1995, M/Sgt. Martinez wrote �The men who engineered the assassination were Gen. Romeo Gatan, Mr. Hermilo (sic) �Boy� Gosuico (who) were both men of Danding Cojuangco, while Col. Romeo Ochoco was the man of Gen. Fabian Ver, AFP chief-of-staff, during that period��I wrote this handwritten testimony of mine to reveal some cover-up information which were not revealed during the inquisition in court�.�

Needless to say, President Ramos did nothing to reopen the case despite the new information from Martinez .

According to Burgos in the
Inquirer of August 21, 2004, Gen. Gatan died of a heart ailment at an unspecified date. Col. Ochoco stayed in the Air Force even after Edsa 1, but left for the US shortly before the Sandigambayan convicted the 16 conspirators and has lived in California ( Stockton , if I recall) since.

Gosuico died �a few years ago.� He was one of the original 26 principal suspects but was acquitted by the Sandigambayan. Acquitted? The man who was one of those who fetched Galman from Bulacan on Aug. 17, who was present at the last-minute briefing of the designated assassin on Aug. 20, and who was one of those who picked up Galman�s wife Liza on Jan. 27, 1984����.this man was acquitted? What do Filipino investigators and prosecutors have between their ears? Taho?

Whether or not �millionaire businessman� Gosuico was really a �man� of Cojuangco, as Martinez claims, he appears to be THE key element in this puzzle. And yet no one in media, not even Burgos and the
Inquirer, seems to have been inquisitive enough to inquire what a civilian like him was doing messing around with military gorillas, how he amassed his alleged millions, who his business principals and customers were, what his connections were with Cojuangco, if any, and why he was involved in an assassination.

Did he die of an illness or an accident, or was he eliminated because he knew too much? 

A perfect project for the Philippine Center for Investigative Journalism. Unless they are afraid of losing their endowment from San Miguel. This seems to be part of our Freedom of Depress.

I have always been convinced that Ninoy was assassinated because he was seen as a spoiler of someone�s plans to succeed the dying Marcos. According to
Today of August 20, 2004, Martinez stated in his affidavit that Ochoco talked to him one month before Ninoy�s arrival.

�Ochoco allegedly said that Ninoy would be the next president of the country, being Marcos� choice as successor. However, he was told by Ochoco that people around Marcos were displeased by his decision, and wanted Aquino assassinated upon his arrival�.�

In 1983, only two individuals were in place and ambitious and powerful enough to aspire to succeed Ferdinand Marcos: his wife Imelda and his crony Danding, with Fabian Ver a very unlikely third. Who killed Ninoy? Col. Ochoco knows. An in-depth profile of the late Gosuico would likely also show.   *****

Reactions to
[email protected]. Other articles in www.tapatt.org and in acabaya.blogspot.com

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Reactions to �Who Killed Ninoy?�
More Reaction to �PAKStan into Pakistan �
More Reaction to �Post Office Thievery�
Retiring in the Philippines
RP Economic Comeback



"Justice is the insurance which we have on our lives and property. Obedience is the premium which we pay for it." - William Penn (1644-1718)

It is completely understandable why there is no justice in the Philippines .  No one wants to pay the premiums for the insurance.  Everyone lives at the mercy of the warlords, just like the good old pre-Hispanic days when the datus reigned supreme, only they walk around with more civilized titles today - president, vice-president, senators, congressmen, governors, mayors and what have you, thanks to the Americans.  But, really, nothing else has changed.

Bobby Manasan, (by email), Burke , Virginia , Aug. 23, 2007

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Dear Tony:         Here is my perspective, coming from afar, perhaps not so much affected with history, hate, emotions and whatnot relative to Ninoy's murder most foul. This whole spectacle is a simple event as old as the universe itself, pitting Good against Evil. Evil, won for a short time with Good eventually succeeding through the Edsa movement that awaken the people's conscience and guilt for allowing power to reduce them to infinitesimally nothing. And it is still on going.

Powerful Marcos was not going to allow an upstart new kid on the block to replace him. Like a scene in a tear jerker Pinoy movie would show "Hindi maari. Dadaan siya sa aking mga kamay at ang daratnan niya ay ang kanyang kamatayan, ha, ha, ha!"  And Imelda tunes in at nangigigil sa galit "Oo, patayin natin ang walanghiya!"

Opening old wounds in search of the truth will not change anything. The smoking gun has always been pointed at the Marcoses. It is irrelevant who the small characters who did the foul act. The perception is, I repeat, the PERCEPTION that the whole world maintains is this-the Murderers are the Marcoses period. Sometimes doing the minutest detail of piecing together one misses the big and significant one.

The web of deceits. lies, intrigues will be pervasive so long as people continue to raise the question who killed Ninoy? But in digging for the dirt some unsavory characters from time to time will surface. Not the usual suspects perhaps. Surprisingly, I suppose such as Danding Cojuangco, even Corazon and Ramos for their sins of omission?

Oh well, it is titillating reading of sort and it again reminds me Corazon was a weak and shallow caricature of a president with a pleasant smile.  And her arrogant sibling who acts and lives with an entitlement attitude, who remains nameless is rather disgusting.

The Philippine drama continues. It takes away people of no means away from feeling poorer and poorer. Calling the Congress to come down and smell the real dirt, not your perceived one.

Oscar Apostol, (by email), Roseville , CA , Aug. 23, 2007

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If Ninoy became a President, how long can he stay there?
People's power could have not happen. Marcos is still in
the Philippines by then.  Gen Ver will plot to kill Ninoy.
No matter how we rearrange the puzzle, Ninoy
will still end up dead. If not by Ver but by someone from his
political or business circle or opponent.  Ninoy was
destined to die. Politics, power and death are crossroads.

Nonoy Ramos, (by email), Pennsylvania , Aug. 23, 2007

(If Ninoy became President, WHEN? If Ninoy had become president in 1983 or later, there would have been no People Power because there would have been no Ferdinand Marcos to overthrow, there would have been no Fabian Ver or Imelda Marcos or Danding Cojuangco trying to succeed Marcos. It is possible President Ninoy would have been assassinated anyway, but that possibility would have dogged everyone else, including President Arroyo. ACA)


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When Ninoy was killed, I was with Dr. Fe del Mundo in Ilocos on our way home. We were dropped off at the Kidney Center where we were hushedly told that Marcos was going to have a transplant and was, in fact, admitted there. The hush-hush talks included that the murder angered Marcos and he threw something at either Imelda or Ver when he learned about Ninoy's murder. I am convinced Marcos has nothing to do with it. I am convinced that Imelda wanted to be president with Danding and Ver at her beck and call, her slaves. Ramos must have known and feared to become public.

Pura Flor Isleta, (by email), Aug.24, 2007

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Hello Tony,          I believe this is no longer a matter for Cory or Noynoy to decide. This was and is a matter of national importance and there should be some closure to this matter if at all possible. The fact that there is a surviving, willing witness, the matter should be reopened because if this witness dies, I am afraid the secret will die with him.

The effect of Ninoy�s death on the nation was well document. The effect on the national economy alone was catastrophic, resulting in the flight of capital and closure of many businesses. Too many people got away and continue to get away with such an enormous crime that was well broadcast all over the world. Whatever dirty linen Ninoy may have hidden somewhere in his past (who doesn�t have any?), does not detract from the fact that he went to prison for his principles, stood up to Marcos rather than be co-opted, and went home in the face of certain death. Even John F Kennedy had skeletons in his closet.

Lino Ongteco, (by email), Aug. 24, 2007

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Re Who Killed Ninoy?... Seems like good material for Agatha Christie.  I await your further articles on this very intriguing saga.  Good work, old chum.

Ben Lim, (by email), Aug. 24, 2007

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Mr. Abaya,     I believe so. This was what my professor told us in his History class.

Marcos a good friend of Ninoy would never do such a thing. But Marcos also saw an opportunity when Ninoy was killed. Maybe there are some things that we will never know.   Respectfully yours,

Jerahmeel Fandrall Chen, (by email), Aug. 24, 2007

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I think more than a handful know who orchestrated Ninoy's killing, but are afraid of being "Gosuico-ed".  Marcos loyalists know who the mastermind is. Try eavesdropping on a Marcos-era social group...  It's so easy to have someone killed because life, especially of the poor and weak, is so devalued by poverty and by those with the power to commit violence. Maybe with the internet, blogs, and more Abayas writing about it, the truth will come out.  How can you forgive and move on if there is no truth, repentance, and rehabilitation?

Hecky Villanueva, (by email) Tucson , Arizona , Aug. 24, 2007

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Hi Tony, Each anniversary of the Aquino assassination we hear ridiculous speculation as to who masterminded the murder of Ninoy, and the linked killings of Galman and Galman's friends and family members.  The wild guesses only serve to obscure the truth and to deflect justice.

Nobody but Marcos could've pulled all the strings required to murder Ninoy in plain sight at MIA with such impunity.  Only the authority of Marcos could've so easily arranged for the other follow-up murders.  The way Marcos handled the aftermath was carefully scripted, with public pronouncements pretending Galman was a mysterious lone Communist assassin who was eventually identified only with difficulty.

Anybody who'd have dared to murder Ninoy without instructions from Marcos would've faced the dictator's wrath, and been exposed and prosecuted, including even Danding.  If it hadn't been Marcos himself that ordered the kill, he'd have quickly arranged an effective investigation and trial, instead of the phony cover-up.  And everybody knows that Marcos had a long record of other killings.

Yes, Imelda had previously warned Ninoy in Boston that he'd be killed if he returned home, but she was only an emissary, not making policy, not involved in the military structure, and not known for political assassinations.

While everyone along the chain of command down to the triggermen is also criminally culpable, to pretend that the order might not have come from Marcos is preposterous.

Mike Price, (by email), Michigan Center , Michigan , Aug. 24, 2007

(No more preposterous than your insistence that your conjecture � and it is only a conjecture � is the one and only Truth about the subject matter. How do you fit  Herminio Gosuico into your scenario? ACA.)

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What does it say about any government? Just like in any form, be it autocratic, theocratic or democratic, if you have money and connections, you can get away with murder.

Eligio Abellera, (by email), Fairburn , Georgia , Aug 25, 2007

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Do you think Ramos had any involvement at all in Ninoy's murder?

John Salamat, (by email), Aug. 25, 2007

(No, but I think he knows something that most people do not know. But he does not have the nerve to say it. ACA)

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This is depressing, Mr. Abaya.
How about the thousands who have perished, unmourned, forgotten.
Galman's wife for instance, and the Oliva girls. How about Fr. Rudy Romano? UP MD Bobby de la Paz?  The entire archipelago is a graveyard.

Cesar Torres, (by email), San Francisco , Aug. 25, 2007

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This is a rather late reaction to one of your columns which I read just now after it has gone a long route from several forwarded emails the original date of which I have no idea. 

About Ninoy's assassinatiion.  I am perhaps one of those misinformed, mentally unsophisticated few who cling to the belief that Ninoy was shot by Galman and Galman was shot by his military escorts.  I have the same view of why Galman was riddled by an Armalite by one of the soldiers who was at the back of the weapons carrier which was right there waiting - to keep Galman from talking. 

I believe the denials to this very day of those who escorted Aquino down the stairs.  Why deny after all these years and after all the enticements?  I also believe the late Brig Gen Luther Custodio was not involved in the plan - he was a convenient patsy of Ver.  I was told that BGen Custodion died of cancer at Muntinlupa and that on his death bed he said he was innocent of the crime.  He was a Catholic believer albeit quite boastful, arrogant and at times unreasonable - but he knew he was about to meet his Creator.  So, on his death throes he still would lie?  As the Americans say, "C'mon!" 

(In 1965 the general was Commandant of Cadets as a Captain in the PAF Flying School , Lt Col Arturo Custodio (no relation to the general) was an  Aviation Cadet thereat about to graduate, and I was a lower class cadet.)

Rocky B. Denoga, (by email), Aug. 26, 2007
Colonel (PAF, Ret)

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You wrote: �Gosuico died �a few years ago.� He was one of the original 26 principal suspects but was acquitted by the Sandigambayan. Acquitted? The man who was one of those who fetched Galman from Bulacan on Aug. 17, who was present at the last-minute briefing of the designated assassin on Aug. 20, and who was one of those who picked up Galman�s wife Liza on Jan. 27, 1984����.this man was acquitted? What do Filipino investigators and prosecutors have between their ears? Taho?�

Dear Mr. Abaya,          I was falling off my chair laughing when I read...taho!!!!  But you know what,  'tokwa' would have been better because taho is always fresh while tokwa is dry and fermented.  You have to agree, 'tokwa' is more appropriate.     Regards.

Impy Pilapil, (by email), Aug. 26, 2007

(OK, tokwa it is then. ACA)

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Tony,     I am always reading your columns and request for more reactions.... like of your many columns, I want also to covey my approval with your analysis with regards to the above subject....especially the last two paragraphs which meaning Marcos does not have any idea at all with regards to the plot. However, how come that he knows from the very start that Ninoy was killed by paid communist?

(Because this was the most convenient excuse that would immediately absolve the two or three most probable masterminds. ACA)

How come that Cory lost her enthusiast to get hold the main culprit during her time as  president? What does it means? Does she is aware with the plans or afraid to know the real culprit. As I have heard from one good source of information that Ninoy will die anyway because it has been his last by-pass whether we like it or not he will die.

(This may have to do with private family matters that remain private. ACA) 

I am aware also that Ninoy was the only pick of Marcos to be his successor... Therefore, Marcos does not have any hatred on Ninoy which all Filipinos are not aware of. I do admired Marcos smartness which I looked  his accomplishments not his mistakes.

Even myself, I don't believe that Marcos nor Imelda orchestrated the death of Ninoy... But WHO????? Can somebody tell to the world????

( Col. Ochoco probably knows. But he�s not telling. ACA)

Romeo Lacasandile, (by email), Abu Dhabi , UAE, Aug. 26, 2007

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Dear Mr. Abaya,        This tragic event reminds me of an old movie (1970), Investigation of a Citizen above Suspicion, starring Gian Maria Volonte. It was a study on the pathology of power. I think they know the real score, concerning the mastermind(s), I'm referring to those families concerned. They just decided to take the vow of Omerta, to preserve the status quo, after all the man is dead, and business is business. It was just like a mob hit, because Aquino was an impediment to the interests of some sector.

I pity the rank and file grunts who had to take the rap and rot in the slammer. I wonder if the mastermind(s) are even giving financial aid to their immediate families. I don't know if this multiple murders ( Aquino, Galman, the wife, the mistress, the sister of the mistress) will ever be solved. At the rate things are going, it seems nobody is interested anymore. And the culprit remains scot-free, and ready to commit another mayhem.
Sincerely,

Auggie Surtida, (by email), Tigbauan, Iloilo , Aug. 26, 2007

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....
Ah, Tony, indeed, the military were involved in Ninoy's murder. Where is Col. Ochoco? Has anybody made any efforts to locate him at all? Surely, if the authorities can locate the likes of Atong Ang, Michael Ray Aquino, etc., why hasn't Ochoco been found
so he could shed light into Ninoy's murder?

(Probably because some people do not want him to be found. Last I heard, he was farming in Stockton , California . But that information is probably pass�. ACA)

I was in High School when Ninoy first ran for senator; and, at the time of the canvassing of votes, attempts were already being made by the powers that be to prevent him from sitting as a senator. I believe the main issue then for his "disqualification" was that he
hadn't reached the required age at the time of his election. Of course, I do not recall what happened next. I was however glad that he was finally proclaimed as senator.

I admired the man immensely. I still do.

Jeremias Decena, (by email), Aug. 26, 2007

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More Reaction to PAKStan into Pakistan (Aug. 16, 2007)

Dear Tony:          My sense is that with Pakistan now in a state of political and social flux, it is no longer a question of whether or not President Pervez Musharraf will fall; it is a simply a question of when. Once Musharraf falls, it is very likely that the jihadists will take over the reins of government.

That is an outcome that can have very grave consequences not only for India , but also for the United States and the rest of the West.

For then the jihadists will have control of Pakistan 's nuclear arsenal. If this should come to pass, the immediate question could be whether or not India will feel itself threatened. The likely answer is that it will be. In the event, as a defensive measure, India may decide on a preemptive strike against Pakistan .

If it does, and India 's preemptive strike fails to eliminate all of Pakistan 's nuclear arsenal, Pakistan may still retain some capability to retaliate against India . In a probable nuclear exchange, millions are bound to perish on both sides. The world will by then be witness to a human tragedy of historic and unprecedented proportions.

Mariano Patalinjug, (by email), Yonkers , NY , Aug. 28, 2007

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Retiring in the Philippines

Mr Abaya,          I read your article in the Manila Standard Today fairly often and enjoy your viewpoint.  I have never been to the Philippines , but,I have known some great Filipinos here in the US and I think I would like to retire there in a few years.  I am 63.  I think you would give me an honest answer.

I have been told that it is not safe there for Westerners with white skin.  I am interested in the Manila / Taal area and maybe a home in the countryside or near a small town. 

I am single, an estimator in the construction industry, but not wealthy.  A father of two and grandfather of four.  I would just like a nice inexpensive, friendly place to enjoy my last decades.  I do not want to stay in the US .

What is your opinion on my living there, in the Philippines , i.e. safety and acceptance?
Thank you for your time.  I enjoy your comments and observations. Have a Great Day!

Bill Tritt, (by email), Philadelphia , Pennsylvania , Aug. 21, 2007


(In general, it is safe for white persons to live here, especially in the Manila/Taal area. The average Filipino is friendly to foreigners, especially to Americans or Europeans.

(That said, there is the chance that one can be at the wrong place at the wrong time and one is mugged or gypped or otherwise harmed. But this can happen anywhere, including Philadelphia which, I understand, is a high crime area.

(If you should decide to come and stay here, I would suggest you get involved in some social work. Since you were formerly connected with the construction industry, I suggest you join up with Gawad Kalinga, a social organization that builds low-cost housing for the poor. Your background gives you an entree into the group's activities. It also gives you an instant 'family' to meld into. ACA)

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More Reaction to �Post Office Thievery� (Dec. 07, 2006)

Hello, sir. Musta po kayo?

My fiancee Genalyn Mojedo Reyes became a victim of the Las Pinas post office today. I sent her a package a few weeks ago. It was just a gift. Genalyn got the notice for the package, and rude language from the post office employees, customs inspector. They want her to pay "fees" VAT tax, Customs fee, Import tax, duty total 2,500 pesos. They claim if she doesn't pay the money, they'll mark her package as abandoned parcel and auction it in 30 days. We know there won't be an auction. It will go to the post office employees. I worked hard for this package and asked my mom to help with the postage. Now they are demanding a bribe from Genalyn, and will not let her have the package. I read your article and it's a twin to Genalyn's experience. Sir, I was in the Philippines recently. I'm happy with your country, but I do not like the post office. I wish that you can help us, or find someone who can. Who is the consumer watch dog of your country?

Gary Murphy, (by email), Columbus , Indiana , Aug. 28, 2007
Genalyn Reyes
Lodora Village, Tunasan, Muntinlupa 1773

(Sad to say, this type of petty crime happens daily in the Philippine postal system, and there is no one to file one�s complaint with. Do not send cash or checks through the post office as it will just be stolen at this end. I would recommend the services of UPS, DHL or Fedex, but it costs more. Mr. Britt, be aware of this, too. ACA)

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(Forwarded to Tapatt by Misael C. Balayan)
.manilastandardtoday.com/?page=news1_aug31_2007

Economy exceeds all estimates, grows 7.5%



THE Philippine economy grew at the fastest pace in two decades�a pace that surprised analysts�as the government spent more on roads, bridges and schools and consumers bought more mobile phones and new homes.

The $117-billion economy grew 7.5 percent in the three months ended June 30 from a year earlier, from a revised 7.1-percent gain in the first quarter, while the gross national product expanded by 8.3 percent, President Gloria Macapagal Arroyo said yesterday.

The pace exceeded the 6.5-percent median estimate of all 15 economists in a Bloomberg News survey.

The pace of second-quarter growth may be the third fastest among the six Southeast Asian economies tracked by Bloomberg after Singapore and Vietnam .

Mrs. Arroyo has said she wants to boost economic growth to as much as 6.7 percent this year from 5.5 percent last year to ease poverty in a nation with an average income of $1.66 a day. The first cut in borrowing costs since 2003 is fueling consumer spending.

�Ours is the only administration that has not experienced any negative growth in any quarter,� she said.

�And it has been a six-year administration, so it has been sustained.  In fact, the regular boom-and-bust cycle is three years, so we should have gone through two boom-and-bust cycles by now, but we never did,� Mrs. Arroyo said.

Pro-administration Senator Richard Gordon said everyone should pitch in to ensure economic growth was sustained.

�We should support initiatives to create jobs and other economic opportunities for our people,� he said.

Opposition Senator Francis Escudero said he was willing to give the government the benefit of the doubt in its claims of economic gain.

�If true, and if in nominal terms, then the government should simply improve the collection efficiency in order to generate needed revenues,� he said.

But another opposition senator, Panfilo Lacson, downplayed the figures and slammed Mrs. Arroyo�s statement.

�Poverty is still at a very high level,� he said. �I don�t know where she�s coming from, her basis for saying the economy is going up.�

Comments.  Senator Lacson, like many rabid critics of the present administration, flaunts his ignorance of Economics.  Six years of sustained economic growth have not been the norm for the former �Sick Man of Asia�.  On the contrary, �boom and bust� cycles were common for the country.  Two quarters of high GDP growth do NOT make the Philippines a tiger economy.

Like I�ve been saying and what many economists have repeatedly been pointed, it will take the Philippines AT LEAST 20 years of SUSTAINED, high GDP growth to make serious inroads into poverty alleviation.  Six years of respectable growth will not wipe out poverty � NOT in a country with unbridled population growth.  But this is only the beginning.  If it took the newly industrialized countries ( South Korea , Singapore , Taiwan , Malaysia ) of East Asia more than 20 years of high economic growth to wipe out mass poverty in their populations, does anyone really think the Philippines can achieve the same in a shorter time span?  Anyone who answers �yes� needs to have his head examined.

GMA�s critics should hone their guns on the Roman Catholic Church for its opposition to artificial birth control methods.  The country�s galloping population have literally swallowed all the economic gains of the past 30 years (not to mention the periods of economic deterioration in the 1980�s).

And what does the senator have to offer?  Does he have a viable economic plan or alternative?  NONE!  Lacson is just trying to get media attention that may be beneficial to his presidential ambition.


�The expansion in the second quarter was a function of strong government spending and private investment and consumption which offset weak exports,� said Edward Teather, an economist at UBS AG in Singapore .

�Growth momentum has accelerated in the last three quarters, raising the possibility that the Philippines � growth has shifted up a gear.�

UBS raised its 2007 growth estimate to 7.1 percent from an earlier forecast of 5.9 percent. It also raised the estimate for next year to 6.5 percent from 6.1 percent.

The second-quarter growth was the strongest since the fourth quarter of 1989, according to data compiled by Bloomberg.

The peso rose 0.3 percent to 46.675 to the dollar at 1:56 p.m. in Manila , and the benchmark stock index surged 3.5 percent to its highest in three weeks.

�The combination of strong growth coupled with manageable inflation will allow us to maintain our neutral policy stance,� central bank Gov. Amando Tetangco said in a text message.

The central bank kept its benchmark interest rate unchanged at 6 percent on Aug. 23 after lowering borrowing costs in July for the first time since 2003 to spur growth.  Inflation is close to a seven-year low.

�This is a strong indication that we are on the right track toward a sustainable and meaningful economic growth that is felt by the majority of our people,� Finance Secretary Gary Teves said in a text message.

Consumer spending, which accounts for about 70 percent of the economy, increased 6 percent after a 5.9-percent gain in the first quarter, according to a report yesterday from the National Statistical Coordination Board. Services expanded 8.4 percent, led by banks and other financial institutions.

Election-related spending also helped boost consumer spending, Economic Planning Secretary Augusto Santos said.  The Philippines had 48,967 candidates who ran for the Senate, House of Representatives and local government positions in the May 14 elections, according to the Commission on Elections Web site.

Government spending accelerated by 13.5 percent in the second quarter from a year earlier, after a 9.9-percent rise in the first three months of 2007.

The government plans to spend P1.18 trillion [US $23 billion] this year, 13.8 percent higher than what it spent in 2006, as it accelerates construction of roads, bridges, and schools.

The government could �sustain� infrastructure spending, Budget Secretary Rolando Andaya said.

Capital spending rose 8.2 percent as companies bought more equipment to expand production.  It rose 6.9 percent in the first three months of the year.

�The economy has taken many by surprise and the market will probably revise its outlook as a result of this,� said Paul Joseph Garcia, who helps manage $1.8 billion as chief investment officer at ING Asset Management in Manila .

Exports, which account for about two-fifths of the Philippines � gross domestic product, increased 4.2 percent, after expanding 9.9 percent in the previous quarter.

Remittances rose 7.8 percent in the second quarter, slowing from a 14.1 percent pace in the previous three months. Growth in funds sent home by Filipinos abroad that has been driving consumer spending is slowing as fewer people find jobs overseas.

Agricultural production grew 3.9 percent in the second quarter, slowing from 4.1 percent. Industrial output rose 8 percent, quickening from the prior quarter�s 6.3-percent pace.  Services increased 8.4 percent

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Source:  http://www.nscb.gov.ph/sna/2007/2ndQ2007/2007qpr2.asp

Second Quarter 2007

Philippine Economy Stronger at 7.5 Percent GDP Growth             
Posted 30 August 2007


Continued favorable economic conditions such as stable interest rates and strong peso, resilient agriculture sector, vibrant industry and services sectors, plus election-related spending and intensified infrastructure investments further strengthened the country�s Gross Domestic Product (GDP) to an impressive 7.5 percent growth in the second quarter of 2007 from 5.5 percent last year.  The expansion in GDP came from the strong performances of Trade, Construction, Transportation, Communication and Storage (TCS) and Manufacturing.  On the demand side, sustained increase in household spending, rise in merchandise exports and investments in construction served as major engines of growth.  Continued inflow of remittances from overseas workers resulted in a hefty 16.6 percent expansion in the Net Factor Income from Abroad (NFIA) and pushed the Gross National Product (GNP) to an 8.3 percent growth, a substantial improvement over the 6.4 percent growth in the same quarter last year.

The seasonally adjusted estimate of GDP posted a 1.7 percent growth in the second quarter of 2007.  Moreover, the continued growth in the Net Factor Income from Abroad drove the seasonally adjusted Gross National Product to a robust growth of 2.3 percent.

On the production side, the Services sector remained the key player in the economy as it registered a strong growth of 8.4 percent.  Industry likewise kept the economy buoyed, up by an equally hefty 8.0 percent growth, while Agriculture, Fishery and Forestry (AFF) maintained its upward trend expanding by 3.9 percent.  In terms of contribution to GDP growth, the 7.5 percent growth in GDP came from Services, with 4.1 percentage points; Industry, 2.7 percentage points and AFF with 0.7 percentage point.

The seasonally adjusted AFF showed resiliency, expanding by 1.7 percent, albeit at a slower pace than the previous quarter, owing to the steady growths of Fishery, Banana, Palay and Livestock.  Industry remained on track with a robust growth of 3.0 percent, from 2.7 percent in the first quarter.  Likewise, the Services sector continued to grow but at a much slower pace of 0.9 percent compared to 2.5 percent the previous quarter.

Per capita GDP grew at an accelerated rate of 5.4 percent from 3.4 percent in the previous year while per capita GNP went up further at a higher rate of 6.2 percent from 4.3 percent.  Per capita PCE increased faster at 3.9 percent from 3.3 percent.

The continued deployment of Overseas Filipino Workers (OFWs) during the period resulted in the 7.8 percent expansion in compensation inflow from 4.8 percent last year.  This, together with the combined effect of the significant growth in Property income by 26.3 percent and the decline in Property expense by 8.8 percent led to the sustained double-digit and accelerated growth of NFIA.

On the expenditure side, consumer spending increased by 6.0 percent in the second quarter of 2007 from 5.4 percent a year ago boosted by the continued upsurge in compensation of OFWs.  Expenses for Fuel, Light and Water rebounded to a growth of 6.0 percent from negative 2.2 percent registered in 2006.  Other expenditure items that recorded higher growths during the quarter were:  Beverages, up by 4.8 percent from negative 1.8 percent; Clothing and footwear, rose by 5.6 percent from 1.6 percent; Miscellaneous expenses, grew by 6.1 percent from 3.8 percent; and, Food expenditure, which accounted for 52.7 percent of total Personal Consumption Expenditure (PCE), maintained the growth of 6.4 percent.

General government consumption expenditure soared to 13.5 percent in the second quarter of 2007 from 3.3 percent in the same quarter the previous year.   The big boost was attributed to election related expenditures.

Investments in Fixed Capital Formation rebounded to 10.0 percent from negative 1.0 percent in 2006.

Total Merchandise Exports grew by 5.9 percent from 21.7 percent last year.  The top five contributors to the growth were: Finished Electrical Machineries, Semi Conductors and Electric Microcircuits, Transmission Apparatus, Prepared Tuna and Liquefied Petroleum Gas.  Exports of Non-Factor Services, on the other hand, plunged to 4.6 percent from a growth of 18.8 percent a year ago.

Total Merchandise Imports skidded to negative 12.3 percent from a growth of 4.1 percent in the previous year, as Principal Merchandise Imports suffered a reversal of negative 17.9 percent from a growth of 1.3 percent in 2006.  The only contributors to the growth of Principal Merchandise Imports were Manufactures of Metals and Dairy Product as both posted turn around growths of 30.4 percent and 22.4 percent, from negative 0.8 percent and negative 9.4 percent, respectively.  Imports of non-factor services, on the other hand, grew by 9.7 percent from 2.8 percent in the previous year.

During the quarter, the terms of trade posted a Trade Index of 91.2 percent.  This however was lower than the 101.3 percent registered the previous year.  Trading gains for the quarter amounted to P1.6 billion as against the trade deficit of P39.0 billion registered in the same period last year.

GNP Implicit Price Index (IPIN) stood at 473.5 percent from 462.1 percent in the previous year or a 2.5 percent growth from 2006.

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