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    Editorials:

    Illustration by Jimbo Albano

    A gargantuan waste of funds for nothing

    AS expected, militant groups are criticizing the P1,500 fertilizer subsidy promised by Malacañang, and, noting the administration’s track record in earlier similar scams—er, schemes—expressed serious doubt the dole would reach the intended beneficiaries. After all, in an ironic twist, the new subsidy was announced on the day the news broke that a US court had rejected the plea for asylum of the man most associated with the P728-million fertilizer scam just before the 2004 elections, former Agriculture Undersecretary Jocelyn “Jocjoc” Bolante.

    Skeptical reactions are not surprising from the likes of the national peasant federation Kilusang Magbubukid ng Pilipinas (KMP), the fisherfolk alliance Pambansang Lakas ng Kilusang Mamamalakaya ng Pilipinas (Pamalakaya) or the Amihan-National Federation of Peasant Women.

    Yet, ideologies aside, the three groups have a point, and who can blame them? What should give the public confidence that, this time around, a fertilizer subsidy to help farmers buy fertilizer would really go to them and yield the intended result, i.e., boost rice production as envisioned in the P43.5-billion program unveiled by the President last month, when the rice crisis was at its peak?

    According to Executive Secretary Eduardo Ermita, the Department of Agriculture (DA) will take charge of the fertilizer-subsidy program and coupons will be distributed to farmers to claim the P1,500 fertilizer fund. Of this amount, P 1,000 will come from the DA, and the P500 from local government units.

    What is the apprehension of the three groups? That, besides throwing in more good money (fertilizer subsidy part 2) after bad (fertilizer scam part 1), the administration is barely scraping the surface of the whole problem of food security, and is instead wasting even more scarce resources on tokenisms and placebos that cannot ensure long-term solutions to hunger and inflation.

    For one, they cited a reluctance to extradite Mr. Bolante, so he can have his day in court in connection with the fertilizer scam. On a second point, the release of billions in government funds for a purpose that is, at best, vague, and the details of which are too sketchy, could be a perfect means for covering up the release of billions of taxpayers’ money in preparation for the 2010 national elections.

    Earlier, the government had gotten ample warning from multilateral agencies and institutions against throwing its fiscal program completely off-track with haphazard populist measures that give people fleeting relief—if they get the doles at all—but do not ensure sustainable solutions, while creating new fiscal megaheadaches.

    Now, this isn’t a brief for blindly following foreign dictates, but there is every reason for heeding sound advice—at least up to the point that discourages the use of scarce resources to throw money at hastily conceived solutions.

    It is hard to imagine that the government, with all its experts, does not know the problems of farmers, particularly in fertilizer. How, then, one must ask, can they believe that a one-time dole of P1,500 would have any real impact and help attain rice self-sufficiency?

    Hence, the militants like Pamalakaya cannot help but theorize that the P43.5 billion agricultural fund is more intended for the 2010 presidential, senatorial and local elections.

    “Malacañang merely brokered the news to Palace-ally politicians that there is enough money for them in the 2010 elections.”

    The finance department said it would source the P43.5 billion from the windfall tax revenues the government collects from high petroleum prices, where it would get at least P18.6 billion in taxpayers’ money. Other sources will come from foreign aid and loans—in other words, burdens of taxpayers for whom the politicians were supposedly bleeding for in the first place. Surreal.

    Thanks, but . . .

    WHILE at this exercise, it’s best to clarify the context of that presidential directive to the Toll Regulatory Board (TRB) on Wednesday to cut toll rates in the North Luzon Expressway starting June 30.

    To be fair, it is a good order that could impact not just on the bottom line of the rich, whose luxury cars and SUVs routinely go north for weekend vacations, but also, more important, reduce the cost of commerce between Metro Manila and Central and North Luzon.

    The President and Palace handlers made it look like she was ordering the TRB to order the operator, Manila North Luzon Tollways Corp. (MNTC), to part with its windfall profits—a result of the foreign-exchange gains, considering the MNTC loans were dollar-denominated and the dollar had weakened considerably since the operator first made its assumptions.

    As it turns out, as explained quite simply by MNTC president Jose de Jesus, the MNTC had submitted to the regulatory board since five months ago a proposal for a new formula for setting its rate, taking into account precisely the foreign-exchange gains.

    The Malacañang order, then, would simply have the effect of prodding the TRB to move on the MNTC proposal.

    What is the point in bringing this up? Simply for transparency and honesty.  If the administration, indeed, wants to help cushion the impact of soaring fuel and food prices on ordinary folk, then the least it can do is order its army of experts to look for genuine ways of mitigating their hardship, not resort to shallow measures that mislead.

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