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State Dep’t Cuts Arms Aid to RP

March 15, 2008

Raises funds to ‘fight corruption’
WASHINGTON - The US state department has recommended to Congress a cut in overall aid to the Philippines, from $116.6 million in FY 2008 to $99.2 million in FY 2009, or a reduction of more than $16 million.

The departments 2009 Congressional Budget Justification Report said in its overview that the Philippines has achieved significant peace, development, and security enforcement gains, but armed conflict, widespread corruption, weak rule of law, extra-judicial killings, and poor economic competitiveness continue to undermine the effectiveness of governance and create conditions that terrorists seek to exploit.

Reacting to the report, Philippine Ambassador to the US Willy C. Gaa said he welcomed the continued confidence the US has on the economy and on democracy in the Philippines. However, his statement did not mention the proposed cut in military aid or the mention the portion about human rights violations, corruption and weak rule of law.

In Manila, Foreign Secretary Alberto Romulo in a statement March 7 saw it as an increase. US development and military assistance to the Philippines will increase next year, he said, adding the amount requested by the State Department from the US Congress for 2009 represents an increase of 24 percent compared to this year. He did not elaborate. Romulo added the US Congress will still have to review the State Departments recommendation.

The State Department report said the Philippines, along with Indonesia, is poised to lead the East Asian and Pacific region towards economic prosperity and democracy, adding that over half of the budget request for the East Asia and Pacific region has been devoted to these two countries.

Although the proposed aid represents an overall decrease from the FY 2008 level,” the State Department said funding for the Philippines will increase to promote democracy and human rights through improved governance, judicial reform, and greater efficiency in election administration.

It hailed the success of the military in the fight against the terrorist groups. Abu Sayyaf and Jemaah Islamiah but cut by half the proposed Foreign Military Financing (FMF) for the Philippines, from $30 million in FY 2008 to $15 million in FY 2009. FMF contributes to the modernization of the Armed Forces of the Philippines (AFP) and the Philippine Defense Reform Initiative.

The State Department explained the reduction by saying the US can best help the Philippines in peace and security efforts by supporting the institutional, long-term Philippine Defense Reform program, and sustaining counter-terrorism capability and key support and logistics functions.

Aid to International Military Education and Training (IMET) of AFP officers in the US will increase from $1.47 million to $1.7 million in FY 2009. The International Narcotics Control and Law Enforcement (INCLE) assistance program to the Philippine National Police will be raised slightly, from $4.5 million to $4.6 million.

The US development assistance will go up, at $56.7 million in FY 2009, compared to $27.3 in FY 2008. Economic Support Fund, at $27.7 million in FY 2008, remains steady in FY 2009. Child survival and health aid will be slashed to $20 million, from $24.9 million.

While the state department hailed the war on terror and economic gains, it warned that armed conflict, widespread corruption, weak rule of law, extra-judicial killings, and poor economic competitiveness continue to undermine the effectiveness of governance and create conditions that terrorists seek to exploit.

The report continued: U.S. assistance helps the Philippines achieve the following goals: 1) deny terrorists safe haven and win the ideological battle against terrorism; 2) support the peace process in the conflict-affected areas of Mindanao; 3) ensure continued progress promoting the rule of law, combating extra-judicial killings, enhancing judicial efficiency, and fighting corruption; 4) support the transformation of the economy to better generate jobs, promote foreign investment and trade, and protect intellectual property rights; 5) reverse deterioration in the basic educational system; 6) promote increased access to family health services; and 7) help manage over-exploited and threatened forest, coastal, and marine resources.

Peace and Security: The Philippines is on the frontlines in the war on terror. The Government is currently engaged in its most sustained and successful operation against the Al Qaeda-linked Abu Sayyaf Group, while keeping Jemaah Islamiya terrorists on the run. The United States can best assist the Philippines in establishing peace and security by focusing on stabilization operations and security sector reform. With respect to stabilization operations and security sector reform, the Department of State will actively support the institutional, long-term Philippine Defense Reform (PDR) program, and sustain counter-terrorism capability and key support and logistics functions. The success of PDR is crucial to strengthen command and control necessary to prevent extra-judicial killings and prosecute those responsible. The U.S. Agency for International Development (USAID) contributes to peace and security through conflict mitigation and reconciliation activities.

In addition, the Department of State will support the institutional development of the law enforcement and criminal justice system and build capacity to prevent, investigate, and successfully prosecute those responsible for extra-judicial killings, as well as financial crimes and money laundering, trafficking in persons, narcotics cases, and other forms of transnational crime.

USAIDs multi-sectoral development activities focused on conflict-affected areas of Mindanao also contribute to peace and security. Approximately 60% of development resources go to Mindanao to help consolidate peace. Department of Defense-funded bilateral military exercises will complement foreign assistance-funded activities and deployment of the Joint Special Operations Task Force-Philippines is increasingly focused on the Sulu Archipelago, a region that continues to be vulnerable to terrorist activity.

Governing Justly and Democratically: USAID programs will promote good governance, the rule of law and human rights, and political competition and consensus-building. Investments in governance will support democratic local governance and decentralization, as well as anti-corruption efforts at both local and national levels. In the area of rule of law and human rights, U.S. funds will support programs that build an equitable and more responsive justice system characterized by equality before the law, fair trial standards, and other elements of procedural fairness and efficiency. As for political competition and consensus-building, U.S. assistance will support more efficient and transparent elections and political processes.

It said that under the RP-initiated two-year Millennium Challenge Corporation (MCC) Threshold program in 2006 it focuses on fighting corruption and improving performance in the revenue administration agencies and strengthening the Office of the Ombudsman, The Ombudsman has exceeded program targets for successfully prosecuting cases, adding the US plans to continue to support selected anti-corruption efforts in the Philippines. USAIDs ongoing assistance in countering corruption across government agencies, improving judicial efficiency by improving judicial procedures, improving public expenditure management, and boosting revenue collection all complement the efforts being undertaken under the MCC Threshold program.”

Gaa singled out the portion of the State Departments report which said the East Asian and Pacific region includes some of the most impressive democratic transformations of our time in places as diverse as South Korea, the Philippines, Indonesia, Mongolia and Taiwan. With regard to the Philippines, the report states that the country has achieved significant peace, development and security enforcement gains, Gaa added.

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