so what happened this week ? 22nd to 29th August 2004, well not much it seems.. !! Apart from some noises from the Malacanang about Austerity Measures that PGMA is trying to push through.

This follows a number of cost-cutting measures that the President imposed on her self...thse included.

1. Cutting down on the number of cars used in the Presidential security group...this measure it appeared would cut the cost of gas used in official trips.

2. Cutting down on the "Official snacks" offered to Government staff..during official meetings and seminars...from now on...tea or coffee will be offered but not snacks.

3. Local and Foreign travel is to be cut....this will save the Philippine people millions of pesos in...so called fact finding missions...otherwise known as swanning around at the taxpayers expense.

4.There will be no payment of overtime pay.

5. There will be a freeze on the hiring of consultants.

6. A ban on holding seminars and workshops...another excuse for an easy day off...very close to a sickie.


These measures it would appear are a response to the Presidents own cost cutting measures..and the fear..expressed by the Univeristy of the Philippines Economic department that the budget deficit of PHP 200 Billion which is compounded by foreign leaders imposing high interest rates on borrowing.


At least PGMA has been seen at last to be leading by example...her own Pork Barrel (Social Fund) estimated to by PHP 500 million per annum will be slashed...employees who have worked overtime..will not be paid in cash...instead they will be compensated in days off in lieu of overtime, something I imagine will go down like a brick on the head.

PGMA also gave instructions that all freebie gifts..use of Government Communications, celebrations, cultural and sports activities, these would all be slashed,ban on purchase of new vehicles, and strictly no snacks to be offered at offical functions...this would now be limited to the offer of coffee or tea.

"I was the job of PGMA to lead from the fornt with cuts in expenditure to resolve the fiscal crisis, because if not PGMA said..the country is heading for economic collapse.

Trouble in Mindanao


The Philippine Armed Forces clashed with rebels in the Southern Part of the Philippines this week, Army units clashed with rebels and a firefight ensued, resulting in the death of 8 soldiers, and 2 rebels, showing that this ongoing terrorist problem in the South of the Philippines is not going away.

Commentary: People need to feel safe if they are to travel to these areas in the South of the Philippines, Forum recommends checking with British Government Website for information about this area, and whether to travel to areas in the South such as Davao City and other towns and cities, is it now time for PGMA to ask the U.S. or U.K. for help in combatting this ongoing problem.

The spectre of the Bataan Nuclear Power plant is raising its ugly head again, we reported last week on the growing daily interest payments being made by the Government in respect of the loans taken out to finance this project, the Bataan Plant lies about 60 miles to the North of Manila and was built by American firm Westinghouse, around the time of the Marcos regime...which fled shortly after it was completed, however the International Atomic Energy authority has deemed the plant unworkable..unsafe and inoperable.

Again the rising cost of Interest payments on the money used to build it...is causing problems in the Philippine economy some USD 155,000 per day in interest is a major headache for the new administration led by PGMA, surely its time for a negotiation with creditors for a freezing of interest and a re-structuring of this money that when down a black hole somewhere.

Commentary on the Week !!

Well Forum likes the welcome noises coming from the Malacanang...shame about the snacks being removed in favour of coffee or tea..but then again...drastic times call for drastic measures...The mounting budget deficit is causing headaches for the Governerment mainly as a result of debt interest payments....but mainly from the demise of the Bataan Nuclear Power plant fiasco.

If the Government could be realeased from the crippling interest payments of 155,000 USD per day...that would go someway to helping,,, trouble in the South with Muslim seperatist groups is not helping either, it appears to us that the Philippine Armed Forces do not have the stomach for this kind of war....nor are they familiar with the strategies required to bring this to a conclusion.

It is time to classify this war as part of the general war on terrorism being fought by other Western European States and the U.S.A. and maybe its time for PGMA to call in specialist help from those who are familiar with this type of Guerilla conflict...particularly the U.K. who had simliar problems in Malaya during the insurgency there in 1950's and perhaps another conflict which little is known about here in U.K. the Borneo Insurgency, in the 1970's Britains SAS was deployed to Borneo and cleared up the problem in months, in Malaya a similar situation was also cleared up by British Army in a short period using specialized dedicated Forces.

Of course this is a matter for PGMA its her problem now, but isnt it time to call in the experts.

Best of luck....have a good week and check back soon for the news....we keep you informed....any comments can be left on this thread.

But promsie me one thing "Dont loose your cool--its the Philippines"

Pete Forum Mod