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  • Ralph Recto named new Neda chief

     

    By Mia M. Gonzalez and Cai U. Ordinario

    Reporters

     

    PRESIDENT Arroyo has appointed former senator Ralph Recto, the author of the administration’s vaunted expanded value-added tax (E-VAT) law, as director general of the National Economic and Development Authority (Neda), Malacañang announced on Wednesday.

    Executive Secretary Eduardo Ermita said in his weekly news briefing that Recto, whose appointment papers were signed on July 10 and forwarded to the Commission on Appointments for confirmation, assumes his new job Thursday, while Acting Socioeconomic Planning Secretary Augusto Santos will continue to be Neda deputy director general.

    Ermita sought to dispel the perception that Recto’s appointment was a “consolation prize” for his failure to be reelected under the administration’s Team Unity senatorial ticket in 2007.

    He stressed that the President had based her appointment on Recto’s qualifications and capability to be her new socioeconomic planning secretary.

    “My golly, he’s qualified. He is the author of the VAT. And he is an economist,” Ermita said.

    Reacting to his appointment, Recto said in a press statement that “it will be a very challenging job, considering current conditions [global credit crunch, high fuel, rice and commodity prices], but I look forward to working with the best and the brightest of government employees [at Neda].”

    “I also look forward to sharing ideas with former Neda directors general on a wide range of issues and, hopefully, work out a consensus with the opposition on strategic economic policies regarding economic threats and opportunities,” he said.

    Recto’s appointment gathered mixed reactions from some economists, former Neda directors general and staff members.

    Santos called the appointment “a presidential prerogative.”

    “I serve at the pleasure of the President. I am a career official, a Ceso [Career Executive Service Officer,] and with his appointment, I shall go back to my former post as deputy director general of Neda,” Santos said in a statement.

    He added: “Neda has always been known for its professionalism so I am confident that it will continue to perform its mandate as the country’s premier socioeconomic planning body to the best of its abilities under a new head.”

    An economist who requested anonymity expressed shock and disbelief at what seemed to be a brazen political act by the President to appoint another partyman as head of one of the main decision-making bodies in the government.

    As Neda director general, Recto will now be the President’s right hand in making economic decisions for the country, as well as approving big-ticket government projects worth P500 million and above, in the ranks of the $329-million national broadband network (NBN) project.

    “That’s [Recto’s appointment] the last nail on the coffin of Neda,” the economist told the BusinessMirror in a phone interview. The economist also feared that with Recto’s appointment, the Neda would now be used as a “political weapon” by the administration.

    However, Ramos-era Neda director general Cielito Habito said he knows Recto personally and sees him as a hard worker and someone fit to head the Neda.

    “I welcome his appointment. He will be a good director general because he does his homework,” Habito said in a phone interview.

    Meanwhile, University of the Philippines economist Solita Monsod, Neda director general during the term of President Aquino, said a socioeconomic planning secretary should be an economist.

    While Recto is not an economist he has a business administration degree from De La Salle University, holds Master’s degrees in Public Administration from the University of the Philippines in Diliman and Strategic Business Economics from the University of Asia and the Pacific, and took a Leadership Scholarship Course at the John F. Kennedy School of Government at Harvard University in Boston.

    He was a three-term congressman representing the Fourth District of Batangas before joining the Senate in 2001 until 2007.

    Former budget secretary Benjamin Diokno said what’s important right now is whether the Neda staff will welcome his appointment. Diokno said, however, that the staff should give Recto the benefit of the doubt.

    “I would think that the position of Neda DG is reserved for an economist. But this tradition has already been broken by the President with her appointment of former Neda chief Romulo Neri, who has a marketing and finance background,” Diokno said. “But the staff should give him the benefit of the doubt.”

    Meanwhile, the Organization of Neda Employees (ONE) vice president External Aladin Ancheta told the BusinessMirror that in the recent discussion of ONE executive committee, the common consensus on the matter of Recto’s appointment as Neda chief is to give him a chance to run the agency.

    Ancheta said the ONE cannot tell Recto outright that he is not fit for the job at the moment, given that he has yet to assume his position.

    However, Ancheta said the Neda employees will be more vigilant and will not take things sitting down, particularly if Recto’s administration of the Neda will result in another “NBN-ZTE” issue.

    Recto is the third losing administration bet in the 2007 senatorial race to be appointed by the President after the one-year appointment ban lapsed in May. The two others were former senator Vicente Sotto III, who is now Dangerous Drugs Board acting chairman, and former presidential chief of staff Michael Defensor, head of the Ninoy Aquino International Airport Terminal III Task Force.

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