Junking the Marcosian debt policy for people’s needs

Despite its trappings of reformist language, the Aquino administration’s budget proposals are still reflective of the same anti-people and anti-development policy thinking of the past regimes; and still emasculated by the Marcosian automatic debt servicing

Continued from Part 1

Until today, under post-Martial Law so-called democratic regimes, the Marcosian policy of automatic debt servicing and the heavy debt burden continue to cripple the capacity of government to provide sufficient social services and attend to the basic needs of the people. In an earlier research, think tank Ibon Foundation noted that Filipino taxpayers will continue to shoulder the Marcos debts until 2025, more than half a century since the late strongman imposed Martial Law.

The most controversial and biggest white elephant funded by Marcos debts and paid for by taxpayers was the $2.3-billion Bataan Nuclear Power Plant (BNPP). While we have already completed the payment for the BNPP that has never produced a single kilowatt of electricity, government continues to look for funding sources for the maintenance of the mothballed nuke plant.

These issues take more significance every time Congress prepares the national budget. Since taking over, the Aquino administration has been peddling the deception that unlike in the past, government’s priority now is the provision of social services and empowerment of the people through well-funded programs that directly benefit the poor. But as already noted, automatic payments for principal and interest continue to eat up the largest portion of public resources, including in the so-called 2013 “Empowerment Budget” of the Aquino administration.

Still way short

The Department of Budget and Management (DBM) describes its proposed 2013 national budget as an “Empowerment Budget” because it supposedly heeds the people’s demand to ensure that government resources are used for their benefit. One indicator, said the DBM, is the increase in the budget allocation for social services, which will get the lion’s share of the proposed ₱2.006-trillion budget at 34.8%, up from last year’s 33.8 percent.

Of the proposed budget for social services (₱698.4 billion), the combined allocation for basic education, health and housing is pegged at ₱365.6 billion, which represent the proposed budget for the Education and Health departments, and government’s housing programs excluding those for the soldiers and police. But this amount is just about ¼ of the needed budget to reasonably meet the demands of the people for such services. Based on urgent needs as well as international standards, it is estimated that the budget for basic education, health and housing alone should be about ₱1.4 trillion. Of the said amount, basic education accounts for ₱885 billion (as estimated by the ACT Teachers); health, ₱440 billion (Coalition for Health Budget Increase or CBHI); and housing ₱ 97billion (Ibon).

Resources for social services

There are possible sources of funding for such huge needs of basic social services but it requires a substantial reorientation in government policies and shift in priorities. Based on the 2013 budget, for instance, there are some ₱860 billion that can be tapped, partially or wholly, to fund basic education, health and housing.

Of the said amount, the largest portion is comprised of the national government’s debt service burden, which is pegged at ₱782.2 billion for principal amortization and interest payments. The rest comes from programs and projects whose concept and/or expected benefits are disputed such as the conditional cash transfer (CCT) program, public-private partnership (PPP), counterinsurgency-related initiatives, privatization obligations from past projects, and tourism promotion and development. (See Table 3)

Debt servicing still represents the biggest drain in the country’s already limited resources. Adding principal amortization to interest payments, debt servicing comprises almost 32% of what the Aquino administration is planning to spend in 2013. At ₱782.2 billion, debt servicing is bigger than the budget for all social services in the current budget proposal, pegged at ₱698.4 billion or 28% of the budget including principal amortization.

As pointed out, the culprit is the Martial Law-era automatic debt servicing policy of government. This policy has greatly undermined the constitutional duty of Congress to allocate funds that will meet the pressing needs of the people. Under EO 292, government computes all public debt obligations that have to be settled and automatically sets aside the needed amount to ensure timely payments.

Meanwhile, Congress has to make do with whatever is left of government’s meager resources to budget for the social and development needs of the people. What makes this whole situation more unjust and oppressive is that most of the country’s public debt has been used for projects and/or programs that were tainted with corruption, did not benefit the people or worse, had caused more hardship to the poor. Examples include the power privatization loans from the Asian Development Bank (ADB) which have already reached around $1.3 billion since 2002.

There are many other odious loans that should be reviewed, renegotiated and/or altogether cancelled to reduce the debt burden. But EO 292 deprives Congress and the Filipino people of this policy option.

Debt-funded dole

Even the much ballyhooed CCT program is being partly funded by foreign debt worth $805 million from the ADB and the World Bank, adding to the country’s debilitating debt burden. And while adding to the debt burden, the CCT’s positive impact on alleviating poverty is also suspect. Between 2009 and 2012, the number of CCT beneficiaries ballooned from 594,356 households to more than 3 million (or an enormous 407% increase); the national budget for CCT during the same period also swelled from ₱5 billion to ₱39.4 billion (or a whopping 688% hike). But self-rated poverty, as measured by the Social Weather Stations (SWS) worsened from an average of 48% in 2010 to 51% this year.

Privatization and debt

Funding PPP initiatives, on the other hand, is problematic given the country’s experience with privatization in the past two decades. PPP schemes in the water and power sectors, for instance, have resulted in soaring and exorbitant user fees. Aquino’s plan to tap PPP to construct school buildings and health facilities is fe

ared to further marginalize the poor as fees skyrocket to ensure the profits of participating private contractors while aggravating the indebtedness of government.

In fact, the national budget has long been being undermined by the impact of such onerous PPP contracts. Case in point is the controversial build-lease-transfer (BLT) contract to run the metro rail transit (MRT) where the Aquino administration is pushing to implement a fare hike of as much as 100% to pass on to commuters the government’s debt obligations and guaranteed profits of the private investor. Another is the National Power Corp. (Napocor) which after a decade of privatization and doubling of electricity rates is still mired in deep debts reaching almost P1 trillion, portion of which will be directly shouldered by consumers through the universal charge.

Other reforms

Budget items related to government’s counterinsurgency campaign can also be diverted to basic social services. Poverty alleviation initiatives like the Payapa at Masaganang Pamayanan (Pamana) and CCT being used as part of the Oplan Bayanihan actually undermines the peace and development process by marginalizing efforts to address the root causes of insurgency (i.e. peasant landlessness) based on the fundamental principle of social justice while perpetuating the conflict and rampant human rights violations.

Aside from these items in the proposed 2013 budget, revenue generation can also be significantly increased by improving collection efficiency, reforming the tax system to maximize collections from the rich and reversing the neoliberal policies that deprived government of revenues such as trade liberalization as well as the numerous fiscal incentives to attract investors. Around ₱867 billion in new revenues can be raised from these reforms, based on Ibon estimates.

Fiscal policy for development

A national budget is important because it sets how government will use its resources. For backward countries, the issue of budget takes a more crucial role considering the scant public resources available amid the massive needs of the people and economy. In fact, for the Philippines, government needs to take a bigger responsibility to ensure that the people’s most basic needs such as education, health and housing, among others are met adequately given the chronic poverty and job scarcity.

At the same time, government must sensibly use the budget to invest in programs and policies which create the most favorable conditions for sustainable development and industrialization that will, in turn, create long-term jobs and address poverty. To achieve this, government needs a fiscal policy – tools on raising revenues and ways to spend them – that redistributes wealth and best serves the interests of the people, in particular the poor and marginalized.

Alas, despite its trappings of reformist language and deceptive increases in allocation for social services, the Aquino administration’s budget proposals, including the 2013 budget, are still reflective of the same anti-people and anti-development policy thinking of the past regimes; and still emasculated by the Marcosian automatic debt servicing. (end)

Martial Law legacy: debt servicing, top priority from Macoy to Noynoy

Image from gmanetwork.com

Last September 21, the country marked the 40th anniversary of the imposition of Martial Law by the late strongman Ferdinand Marcos. Those dark years were notorious for the numerous cases of human rights atrocities committed by the military; for the unprecedented cronyism; and for the massive and flagrant ransacking of state coffers by Marcos, his relatives and friends.

Seldom pointed out is how the Marcos dictatorship also instituted national policies that further tied our pre-industrial economy to perpetual backwardness and bound a great majority of our people to acute poverty. Seldom pointed out is how the anti-Marcos faction of the ruling elite led by Cory Aquino who supposedly restored democracy, and her successors – including son, incumbent President Benigno Aquino – have upheld and continued these policies to the serious detriment of the country and the people.

One such policy was automatic debt servicing. Guaranteed payments of the national debt, even if they were incurred under questionable circumstances; went to the pockets of corrupt government officials; and/or used to fund programs and projects that harmed the economy and the people is a testament to the still dismal state of governance and democracy in the country 40 years after Martial Law was imposed.

That the Marcosian policy of automatic debt servicing continues to deprive the people of much needed social services contradicts assertions by the Aquino government of a pro-people national budget. It has hyped, for instance, its proposed 2013 ₱2.006-trillion national budget as “Empowerment Budget”, building on its previous packaging of “Reform Budget” (2011) and “Results-Focused Budget” (2012). Underlying all these budget proposals is the theme of “daang matuwid” (straight path) and “kung walang corrupt, walang mahirap” (without corruption, there’s no poverty).

But behind the pro-people packaging is the reality that the priorities and programs of government, as reflected in its national budget, remain unresponsive to the urgent social needs of the poor and development requirements of the country. From the late strongman Macoy to the son of supposed democracy icons Noynoy, keeping the creditors assured has always been the top priority in crafting the national budget.

Current debt data

Marcos’s borrowing spree – from less than $1 billion when he first became President in 1966, the foreign debt ballooned to $28 billion by the time he was kicked out of Malacañang twenty-years later – set off the crippling debt burden that the country has had to endure. To keep the foreign loans coming, which had become the dictatorship’s largest source of corruption (one estimate claimed that Marcos pocketed at least ⅓ of foreign loans), Marcos issued Presidential Decree (PD) 1177 or the Budget Reform Decree of 1977 that automatically appropriates for debt servicing regardless of how much is left of the country’s resources to fund basic social services. The late President Corazon Aquino affirmed this policy through Executive Order (EO) 292 or the Administrative Code of 1987.

As of July 2012, the outstanding debt of the national government, according to the Bureau of the Treasury (BTr) stood at ₱5.16 trillion, of which ₱3.12 trillion (61%) come from domestic creditors and the rest, ₱2.04 trillion (39%) from foreign lenders.  When President Aquino assumed office in June 2010, that debt was pegged at ₱4.58 trillion (₱2.59 trillion, domestic; ₱1.99 trillion, foreign). Since taking over, the Aquino administration has added more than ₱580 billion to the debt burden, or an average of more than ₱23 billion a month (July 2010 to July 2012). During the Arroyo administration, the outstanding debt of the national government was growing by a monthly average of ₱21 billion (January 2001 to June 2010).

Meanwhile, looking at the foreign debt data (which include public and private debt, with the former accounting for 77% of the $62.9-billion total as of March 2012) as monitored by the Bangko Sentral ng Pilipinas (BSP), it appears that the country’s external loans have been accumulating most rapidly under the current Aquino administration with an average of $268.81 million per month. It is the largest monthly growth in foreign debt among all post-Marcos administrations. (See Chart)

A news report on the latest debt data noted that each Filipino now owes the national government’s creditors some ₱53,715 (based on the latest estimated population of 96 million by the National Statistical Coordination Board of NSCB). A minimum wage earner in the National Capital Region (NCR) will need to give his salary for 120 to 131 workdays if he will be forced to pay for his share of this debt; or 232 days if he is from the Autonomous Region in Muslim Mindanao (ARMM).

Meager allocation for social services

But the real impact of such heavy debt burden is felt by the poor in the meager allocation that important social services get from government because limited resources are being siphoned off by automatic debt servicing. And Aquino is proving to be worse than Arroyo in this respect. Under the Aquino administration, government has already shelled out ₱1.45 trillion for debt servicing from July 2010 to July 2012. It’s equivalent to ₱58.05 billion a month, almost ₱10 billion bigger than Arroyo’s ₱48.18 billion a month during her prolonged 9 ½-year term. (See Table 1)

Further, debt servicing relative to total expenditures (including principal repayments) is pegged at almost 59% under Aquino, compared to 42% under Arroyo; and relative to total revenues collected, it’s 76% under Aquino and 66% under Arroyo. These figures mean that that the absolute increase in debt servicing in the past two years is exerting more pressure on public resources which could not cope with the country’s growing expenses, including the need to pay for government’s mounting debts. To finance its expenses, including payments for past debts, the Aquino administration is borrowing more.

Debt servicing continues to eat up a huge portion of the national budget despite claims by the Aquino administration that social services are now being prioritized by government. The expenditure program from 2011 to the proposed 2013 national budget, for instance, shows that the budget for debt servicing (including principal amortization) is equivalent to an average of 2.5 times that of the budget for education; 6.4 times, health; and 11.2 times, housing. (See Table 2)

To be concluded

Failed health system and the Health 43

In a poor country where one out of every two people dies without receiving any medical attention, 50 percent of the population do not have access to health care, 40 percent do not have access to essential medicine, 10 mothers die daily due to pregnancy and childbirth-related causes, and 100 municipalities are doctorless and nurseless[1] while more than 7,700 nurses, 83 doctors, and 196 professional midwives leave the country yearly[2] to work abroad, trainings to equip ordinary citizens attend to the basic health needs of poor and neglected communities should be welcomed.

And a government that is sensitive to the needs of its people should support such initiative, or at least be thankful to medical professionals and volunteers who give their skills, knowledge, time, and resources in order to help bridge the widening gap between the need and availability of health services in the country.   

So when 43 health workers – including two medical doctors, a registered nurse, a registered midwife, and 39 community health workers – while conducting a training-seminar, were illegally arrested, and later tortured, by the police and military on outrageous claims that they were making bombs, you know at once that something is seriously, terribly wrong.

Community-based health programs

The Council for Health and Development (CHD), which together with the Community Medicine Foundation Inc. (CMFI) organized the training-seminar attended by the 43 health workers, is the national organization of non-government community-based health programs (CBHPs) in the Philippines. It raises resources for the CBHPs including reading, education, and training materials as well as financial support. The group, which is registered in the Securities and Exchange Commission (SEC) as non-stock and non-profit, also conducts trainings and consultations with CBHPs.[3]    

Since 1973, non-government CBHPs has formed part of the Philippine health care system. From simply providing training for paramedics in far-flung and neglected rural communities, CBHPs have overtime become part of the common people’s aspirations and struggles.[4]

Programs considered as CBHPs aim to respond to the basic health needs of the people through education, training, and services. Unlike episodic health campaigns such as breastfeeding or immunization programs, for example, CBHPs deal with the health issue in a holistic approach, i.e. health problems of the community are recognized to be inter-related with the economic, political, and cultural problems of the society. Thus, they do not provide solution to health problems but assists and facilitates in laying the foundation of a health system that is governed by the people at the community level.[5] Maybe this concept of CBHPs is too “communist” for the Armed Forces of the Philippines (AFP) and the Philippine National Police (PNP)?

But the CBHPs have long been recognized even by the United Nations (UN). In the late 1970s, CBHPs were institutionalized globally following an international conference on primary health care organized by the World Health Organization (WHO) and the UN International Children’s Emergency Fund (UNICEF). That conference officially recognized the role of paraprofessionals or auxiliary health workers in lieu of physicians in the rapid extension of health services in the Third World. They were to play a key role in achieving universal access to health services.[6] In fact, CBHPs in the Philippines were recognized by the UN Development Programme (UNDP) as among the most “innovative social organization and practices of the South.”

Lack of human resources for health

CBHPs and medical volunteers play a crucial role in the Philippines where there has been a noticeable trend of outward migration of doctors, nurses, midwives, therapists, and other medical professionals. From 1992 to 2006, the country has already deployed 115,871 professional nurses as overseas Filipino workers (OFWs); 2,945 professional midwives; and 1,247 medical doctors. The Philippines is the biggest “exporter” of nurses in the world.[7] The Philippine General Hospital (PGH) alone is losing as much as 500 nurses every year out of their 2,000 health workforce.[8]

These exported medical professionals tend to be well-trained, skilled, and experienced because of their specializations but are enticed to go abroad mainly due to economic factors. Nurses in the Philippines, for instance, are volunteers or casuals without plantilla positions and thus do not enjoy job security and other benefits. The Philippines has been mass producing nursing graduates every year not to attend to domestic health demands. A 2000 estimate, for example, said that 85 percent of the total demand for Filipino nurses are found abroad. Health workers employed in the country, meanwhile, endure low and variable wage rates that do not allow them to earn decent living wages.[9]

The obvious and immediate end-result of this phenomenon is a shortage in health professionals to meet the country’s own requirements. One indicator is the health professional to patient ratio. In some hospitals, one nurse attends to as much as 60 patients[10], which have implications on the quality of health services. A separate report claimed that the nurse to patient ratio in some government hospitals in the Philippines even reached 1:100 while the international standard is pegged at only 1:4.[11]

Meanwhile, processed data from the World Health Organization’s (WHO) online database show that there is only one doctor for every 2,000 Filipinos and one nurse/midwife for every 167. The WHO said that countries with fewer than 2.5 health care professionals (physicians, nurses, and midwives) per 1,000 people failed to achieve adequate coverage rates for selected primary health care interventions as prioritized by the Millennium Development Goals (MDGs) framework.[12]

Consequently, the 2007 Philippines Midterm Progress Report on the MDGs shows that based on the country’s current pace, the 2015 deadline on health-related targets will not be achieved. As of 2006, the number of maternal deaths per 100,000 live births was pegged at 162. The MDG target is to reduce the maternal mortality ratio to 52. Meanwhile, access to reproductive health care was pegged at 50.6 percent while the UN goal is 80 percent access.[13]

Government neglect, double injustice

The exodus of Filipino health professionals is reflective of the backward state of the Philippine economy and aggravated by wrong policies and priorities of past and present governments. The export of labor including medical professionals has been a flawed government policy since the Marcos years to provide jobs and generate dollars for the economy. In recent years, government has even intensified the export of health workers such as through the 2008 ratification the Japan-Philippines Economic Partnership Agreement (JPEPA), which supposedly guarantees access for Filipino nurses and caregivers to the Japanese health labor market.

These policies combine with total government neglect to provide basic social services including health. At an average of 1.8 percent national budget allocation since 2001, the Arroyo administration has allocated the smallest portion of the country’s budget for health services among all post-Marcos governments.[14] Actual spending is even worse. In 2008 (latest available data), public spending for health comprised only 1.2 percent of total spending (while debt servicing for principal and interest accounted for 47.6 percent).

Lack of public health services has forced many Filipinos to rely on their own. In a 2009 survey, Sun Life of Canada found out that 76 percent of Filipinos are concerned about paying for health treatment and an overwhelming 85 percent rely on their own savings when they get sick.[15] But because of poverty, medical needs are largely not met as indicated by the alarming national health statistics

Official poverty statistics show that there are 27.6 million poor Filipinos or 32.9 percent of the total population,[16] although independent estimates such as IBON’s claim that as high as 8 to 9 out of every 10 Filipinos do not meet decent living standards.

The situation is more severe and more felt in the countryside, where an estimated two out of three poor Filipinos live. These are the people that CBHPs serve in remote barangays and sitios where government services such as health are absent.

Thus, by arresting and torturing the 43 health workers, the Arroyo administration and its armed forces have twice committed a grave injustice – first against the victims and their families, and second against the countless poor people long neglected by government and that these health workers serve. ###

Sources, references, and notes   


[1] Galvez Tan, Jaime Z. (2004), “The brain drain phenomenon and its implications for health: 10 strategic solutions for action by Filipino leaders”, p. 5, paper read at the International Conference on the Medical Workforce sponsored by the United States Educational Commission for Foreign Medical Graduates (ECFMG), Washington DC, 4-7 Oct. 2004

[2] Based on 1992-2006 (latest available data) cumulative OFW deployment per skill and per country as compiled by the Philippine Overseas Employment Administration (POEA 

[3] Council for Health and Development website, http://www.chdphilippines.org/about.php 

[4] __________ (2001), “Community-based health programs”, p. 7, Examples of Innovative Social Organizations and Practices of the South”,  Vol. 6, UNDP Special Unit for South-South Cooperation

[5] Ibid., p. 6

[6] Ibid., pp. 3-5

[7] Lorenzo, Fe Marilyn E., RN, DrPH et al. (2005), Migration of health workers: Country case study Philippines, Institute of Health Policy and Development Studies, National Institute of Health, University of the Philippines, pp. 14, 21, International Labour Office, Geneva, 2005 

[8] Op. cit., Galvez Tan (2004)

[9] Op. cit., Lorenzo (2005), 18-19

[10] Ibid., p. 44

[11] Makilan, Aubrey SC (2005), “Poor pay, working conditions are driving health professionals abroad”, Special report (last of three parts), Bulatlat.com, Vol. V No. 43, 4-10 Dec. 2005, http://www.bulatlat.com/news/5-43/5-43-poor.htm

[12] World Health Organization Statistical Information System, Human resources for health, WHO website, http://www.who.int/whosis/indicators/compendium/2008/3hwo/en/index.html

[13] __________ (2007) “Philippines Midterm Progress Report on the Millennium Development Goals”, p. 15

[14] IBON Features (2010), “Violations of economic, social rights severe under Arroyo administration”, Bulatlat.com, 12 Dec. 2009, http://www.bulatlat.com/main/2009/12/12/violations-of-economic-social-rights-severe-under-arroyo-administration/

[15] Dumlao, Doris C. (2010) “Most Filipinos have nothing to leave their children, study shows”, Philippine Daily Inquirer, INQUIRER.net website, 6 Feb. 2010 http://business.inquirer.net/money/breakingnews/view/20100206-251545/Most-Filipinos-have-nothing-to-leave-their-children-study-shows

[16] National Statistical Coordination Board, Philippine Poverty Statistics, NSCB website, http://www.nscb.gov.ph/poverty/2006_05mar08/table_2.asp

Mission accomplished? Arroyo lifts martial law

Photo from Reuters

Of course, the decision by Mrs. Gloria Arroyo to lift martial law in Maguindanao last night (Dec. 12, 9PM) after one week must be welcomed. But looking at the bigger picture, the people must also be alarmed. Why, what are the dangers?

The lifting of Proclamation 1959 preempted Congress and the Supreme Court (SC) from deciding on the legitimacy of martial law. As such, questions on its legality have remained unresolved. House Speaker Prospero Nograles and Senate President Juan Ponce Enrile already said that they are adjourning the joint session on Proclamation 1959 on Monday, Dec. 14. As for the SC, it is hoped that it would still pursue the seven petitions versus martial law filed before it last week. The SC is supposed to determine whether or not Mrs. Arroyo abused her constitutional power to declare martial law.

As of this posting, however, there is still no official announcement from the SC. It only said its order for Malacañang to answer the petitions will stay. But the SC also added that the executive can manifest that martial law has been lifted (and thus the subject of the petitions no longer exists). If it decides to discontinue hearing the petitions, then we are in an even more precarious situation. Mrs. Arroyo can just impose martial law at whim, anywhere, using flimsy grounds like concocted rebellion. All she has to do is lift it before Congress and the SC can intervene. And then she can get away with murder.

With elections just around the corner, this is dangerous since military rule can be used to sabotage the polls. Imagine a scenario when martial law is declared on Election Day, or days before to lay the ground for fraud or election failure in certain areas. These unnerving possibilities are not farfetched especially with an incumbent President who will at all costs prolong her stay in power. The lifting of Proclamation 1959 did not ease fears of what Sen. Miriam Santiago called a “conspiracy” to expand martial law outside Maguindanao. We can thus expect more beheadings, hostage takings, clan wars, bombings, etc. in the months leading to the 2010 elections.

The other danger involves the cases facing the Ampatuans. Five members of the Ampatuan clan have already been charged with multiple counts of murder for the massacre. One of them is main suspect Datu Unsay Mayor Andal Ampatuan Jr. But other important members of the clan, including its patriarch Andal Sr. have been charged with rebellion instead. Pundits noted that the rebellion charge is actually an escape route for the Ampatuans. Because most of them were accused with a political crime (i.e. rebellion) and not a criminal case (i.e. murder), there is more room for compromises including pardon or even acquittal.

There is also a chance that evidence such as the caches of arms and ammo seized from the Ampatuans during martial law could be questioned in courts. Ampatuans’ lawyers may argue that such evidence was illegally seized under Proclamation 1959, whose legitimacy was not resolved. Thus, martial law was effectively used to dilute the case versus the warlord clan.

Executive Secretary Eduardo Ermita said they lifted martial law because it has already achieved its objectives. If these objectives are to make Proclamation 1959 a dry-run for future wider martial law and to weaken the criminal liability of the Ampatuans, then it is indeed mission accomplished for Malacañang.

Martial Law: Today Maguindanao, tomorrow the Philippines?

(Below is the full text of Mrs. Gloria Arroyo’s Proclamation No. 1959 placing the province of Maguindanao under Martial Law.)

Proclamation 1959: Proclaiming a State of Martial Law and suspending the privilege of the writ of habeas corpus in the province of Maguindanao except for certain areas.

Whereas, Proclamation No. 1946 was issued on 24 November 2009 declaring a state of emergency in the provinces of Maguindanao, Sultan Kudarat and the City of Cotabato for the purpose of preventing and suppressing lawless violence in the aforesaid areas.

Whereas, Sec. 18 Art. VII of the Constitution provides that “in case of invasion or rebellion, when public safety requires it, the President may, for a period not exceeding 60 days, suspend the privilege of the writ of habeas corpus or place the Philippines or any part thereof under martial law.”

Whereas, Republic Act 6986 provides that “the crime of rebellion or insurrection is committed by rising publicly and taking arms against the government for the purpose of depriving the Chief Executive or the Legislature, wholly or partially, of any of their powers or prerogatives.”

Whereas, heavily armed groups in the province of Maguindanao have established positions to resist government troops thereby depriving the Executive of its powers and prerogatives to enforce the laws of the land to maintain public order and safety.

Whereas, the condition of peace and order in the province of Maguindanao has deteriorated to the extent that local judicial system and other government mechanisms in the province are not functioning; thus, endangering public safety.

Whereas, the implementing operational guidelines of the GRP-MILF agreement on the General Cessation of Hostilities dated 14 Nov. 1997 provides that the following is considered a prohibited hostile act: “establishment of checkpoints except those necessary for the GRP’s enforcement and maintenance of peace and order and for the defense and security of the MILF in their identified areas as jointly determined by GRP and MILF.”

Now, therefore I, Gloria Macapagal-Arroyo, President of the Republic of the Philippines, by virtue of the powers vested in me by the Constitution and by law, do hereby proclaim as follows:

Sec. 1: There is hereby declared a state of martial law in the province of Maguindanao except for the identified areas of the Moro Islamic Liberation Front as referred to in the implementing operational guidelines of the GRP-MILF agreement on the General Cessation of Hostilities.

Sec. 2: The privilege of the writ of habeas corpus shall likewise be suspended in the aforesaid area for the duration of the state of martial law.

Done in the City of Manila this 4th day of December in the Year of Our Lord, Two Thousand and Nine.

(Originally Signed)

Gloria M. Arroyo

By the President:

(Originally Signed)

Eduardo Ermita

Executive Secretary

Watch the press conference called by Exec. Sec. Eduardo Ermita on Proclamation 1959