SEnate Journal Feb. 7 2007

RElPUBLlC OF THE PHILIPPINES
Senate
Pasay City
a1
SESSION NO. 64
Wednesday and Thursday
Febmary 7 & 8,2007
THIRTEENTH CONGRESS
THIRD REGULAR SESSION
SESSION NO. 64
Wednesday and Thursday
February 7 & 8,2007
CALL TO ORDER
At 4:06 p.m., the Senate President, Hon. Mamiy
Villar, called the session to order.
PRAYER
Sen. Alfredo S. Lim led the prayer, to wit:
Arroyo, J. P.
Biazon, R. G.
Cayetano, C. P. S .
Defensor Santiago, M.
Drilon, F. M.
Ejercito Estrada, J.
Ejercito Estrada, L. L. P.
Enrile, J. P.
Flavier, J. M.
Lacson, P. M.
Lim, A. S .
Magsaysay Jr., R. B.
Revilla Jr., R. B.
Roxas, M.
Villar, M.
Almighty God, our Heavenly Father whose love

for humanity sets no boundaries:
With 15 senators present, the Chair declared the

presence of a quorum.
Grant our people and leaders wisdom, courage

and insight in this time of uncertainty,
intrigues and fears;
Senators Angara, Gordon, Lapid, Madrigal,

Osmefia, Pangilinan, Pimentel and Recto arrived
after the roll call.
Give to all who exercise authority the determination

and discernment to defend the principle of
freedom, love and justice to protect and
safeguard the innocent;
DEFERMENT OF APPROVAL
OF THE JOURNALS OF
SESSION NOS. 61, 62 AND 63
Give them also clarity of vision to guide the

nation into the path of justice, peace and
lasting unity.
As this Congress is coming to adjournment, we
fervently pray that the unity we shared

through Your grace remains strongly bonded
by belongingness, unaffected by the yoke of
scorching power and pride.
Teach us also to constantly renounce what is not
Yours, to scorn weahlesses and sins. Above
all, grant us the grace to unselfishly extend
assistance to those who come to solicit our
help and give us the grace to see ow Lord,
Jesus Christ, in them.
Amen.
ROLL CALL
Upon direction of the Chair, the Secretary of the

Senate, Oscar G. Yahes, called the roll, to which the
following senators responded
Upon motion of Senator Cayetano, there being

no objection, the Body deferred the consideration and
approval of the Journals of Session No. 61 (January
31, 2007), Session No. 62 (February 5, 2007), and
Session No. 63 (February 6, 2007).
REFERENCE OF BUSINESS
The Secretary of the Senate read the following
matters and the Chair made the corresponding
referrals:
COMMUNICATION
Letter from Assistant Governor and General
Counsel Juan De Zufiiga Jr. of the Bangko
Sentval ng Pilipinus. furnishing the Senate with
certified copies of the following in compliance
with Section 15(a) o f Republic Act No. 7653
(The New Central Bank Act):
1. BSP Circular No. 553, series of 2006,
dated 22 December 2006; (corrected copy)
QE
1444
WEDNESDAY, FEBRUARY 7,2007
2. BSP Circular No. 558, series of 2007,

dated 22 January 2007;
3. Memorandum No. M-2006-022, series
of 2006, dated 24 November 2006; and
4. Memorandum No. M-2007-022, series

of 2007, dated 23 January 2007.
To the Committee on Banks, Financial
Institutions and Currencies
INTO A COMPONENT CITY TO BE

KNOWN AS THE CITY OF
BORONGAN;
House Bill No. 5998, entitled
AN ACT CONVERTING THE MUNICIPALITY OF CATBALOGAN IN THE
PROVINCE OF SAMAR INTO A
COMPONENT CITY TO BE KNOWN
AS THE CITY OF CATBALOGAN;
COMMITTEE REPORT
and House Bill No. 5999, entitled
Committee Report No. 259, submitted by the
Committee on Youth, Women and Family
Relations, on Senate Bill No. 2588, introduced
by Senator M.A. Madrigal, entitled
AN ACT PROHIBITING CHILD PORNOGRAPHY, IMPOSING PENALTIES
FOR THE COMMISSION THEREOF
AND FOR OTHER PURPOSES,
recommending its approval without amendment.
Sponsor: Senator M.A. Madrigal
To the Calendar for Ordinary Business

ADDITIONAL REFERENCE OF BUSINESS
MESSAGES FROM THE HOUSE
O F REPRESENTATIVES
Letters from the Secretary General of the House of
Representatives, informing the Senate that on 5
February 2007, the House of Representatives
concurred with the Senate amendments on the
following House bills:
AN ACT CONVERTING THE MUNICIPALITY OF TANDAG IN T H E

PROVINCE OF SURIGAO DEL SUR
INTO A COMPONENT CITY TO BE
KNOWN AS THE CITY OF
TANDAG.
To the Archives
Letter from the Secretary General of the House of
Representatives, informing the Senate that on
5 February 2007, the House of Representatives requested a conference and designated
Representatives Dumarpa, Cari, Villar,
Malanyaon and Barinaga, on the part of the
Majority, and Representative Custodio, on the.
part of the Minority, as its conferees to the
Bicameral Conference Committee on the
disagreeing provisions of House Bill No. 1214,
entitled
AN ACT GRANTING OTHER PRMLFGES
AND INCENTIVES TO PERSONS
WITH DISABILITY, AMENDING
FOR THE PURPOSE THE MAGNA
CARTA FOR DISABLED PERSONS,

and Senate Bill No. 2580, entitled
AN ACT CONVERTING THE MUNICIPALITY OF BAYBAY IN T H E

PROVINCE OF LEYTE INTO A
AS THE CITY OF BAYBAY;
AN ACT AMENDING REPUBLIC ACT

NO. 7277, OTHERWISE KNOWN
AS T H E MAGNA CARTA FOR
DISBALED PERSONS AND FOR
OTHER PURPOSES

To the Committee on Rules
AN ACT CONVERTING THE MUNICIPALITY OF BORONGAN IN THE
PROVINCE OF EASTERN SAMAR

Representatives, informing the Senate that on#?-
1445
5 February 2007, the House of Representatives requested a conference and designated

Representatives Duinarpa, Cui, Malanyaon, and
Barinaga, on the part of the Majority, and
Representative Custodio, on the part of the
Minority, as its conferees to the Bicameral
Conference Committee on the disagreeing
provisions of House Bill No. 4536, entitled
AN ACT PROVIDING FOR THE MAGNA
CARTA FOR SOCIAL WORKERS
AND SOCIAL WELFARE AND
DEVELOPMENT WORKERS AND
FOR OTHER PURPOSES,
AN ACT PROVIDING FOR A MAGNA
CARTA FOR PUBLIC SOCIAL
WORKERS.
Sponsor: Senator Ramon Bong Revilla Jr

Committee Report No. 262, submitted jointly by the
Committees on Public Works; and Finance, on
House Bill No. 4115, introduced by Representative
Dimaporo and Badelles, entitled
AN ACT CONVERTING THE ILIGAN TAGOLOAN - BAL01 - PANTAO
RAGAT
M U - TANGKAL MAGSAYSAY TUBOD - SALVADOR
- S A P A D - N U G A N - SULTAN
NAGA DIMAPORO ROAD WHICH
PASSES THROUGH ILIGAN CITY
AND THE PROVINCE OF LANA0
DEL NORTE INTO A NATIONAL
ROAD,
~

Sponsor: Senator Ramon Bong Revilla Jr.
COMMITTEE REPORTS
Conunittee Report No. 260, submitted by the
Committee on Public Works, on House Bill
No. 4458, introduced by Representative Ramiro,
entitled
AN ACT RENAMING THE OZAMIZ
CITY BY-PASS ROAD LOCATED IN
OZAMIZ CITY AS CONGRESSMAN
HILARION J. RAMIRO BY-PASS ROAD,
SUSPENSION OF SESSION
Upon motion of Senator Cayetano, the session
was suspended.
It was 4:13 p.m.
RESUMPTION OF SESSION
At 4:25 pm., the session was resumed.
PRESIDENTIAL CERTIFICATION
Upon direction of the Chair, Secretaly Yabes

read the Presidents certification as to the necessity
of the immediate enactment of Senate Bill No. 2479,
to wit:

Committee on Public Works, on House Bill
No. 642, introduced by Representative
Puentevella, entitled
AN ACT RENAMING THE BACOLOD
MURCIA - SAN CARLOS ROAD
(BACOLOD SECTION) IN THE CITY
OF BACOLOD TO ROMEO G .
GUANZON AVENUE,
~
recommending its approval without amendment
September 20,2004
HON. JOSE C. DE VENECIA
Speaker
House of Representatives
Quezon City
Dear Speaker De Venecia:
Pursuant to the provisions of Article VI,
Section 26(2) of the 1987 Constitution, I herebyp-
1446
certify to the necessity of the immediate

enactment of House Bill No. 2933, under
Committee Report No. 26, entitled
AN ACT GRANTlNG A ONE-TIME
AMNESTY ON ALL UNPAID
NATIONAL INTERNAL REVENUE

TAXES IMPOSED BY THE
NATIONAL GOVERNMENT FOR
TAXABLE YEAR 2003 AND
PRIOR YEARS,
to meet the public emergency borne out of

the urgent need to creatively mobilize revenue
sources in the immediate term to fimd the
government's economic and social programs,
while over the long tenn. instill upon the
general citizenry, particularly among the errant
taxpayers. the value of civil responsibility by
providing an option for them to make a truthful
and faithful disclosure of their untaxed income
or adjust their statement of assets and net
worth in order to become integral part of the
national tax base.
Best wishes.
Very truly yours,
(Sgd.) GLORIA M. ARROYO
CC: HON. FRANKLIN M. DRILQN
Senate President
Philippine Senate
Pasay City
APPROVAL OF HOUSE BILL NO. 2933,

AS AMENDED BY SENATE BILL NO. 2479,
ON THIRD READING
In view of the presidential certification, upon
motion of Senator Cayetano, there being no objection,
the Body considered, on Third Reading, House Bill
No. 2933, as amended by Senate Bill No. 2479.
Pursuant to Section 67, Rule XXIII of the Rules
of the Senate, upon motion of Senator Cayetano,
there being no objection, Secretary Yahes read only
the title of the bill, to wit:
AN ACT GRANTING A ONE-TIME
AMNESTY ON ALL UNPAID
NATIONAL INTERNAL REVENUE
TAXES IMPOSED BY THE NATIONAL
GOVERNMENT FOR TAXABLE
YEAR 2003 AND PRIOR YEARS.
Secretary Yabes called the roll for nominal voting.
RESULT OF THE VOTING

The result of the voting was as follows:
In .favor
Angara
Biazon
Cayetano
Defensor Santiago
Drilon
Ejercito Estrada (J)
Ejercito Estrada (L)
Enrile
Flavier
Gordon
Lacson
Lapid
Lim
Magsaysay
Recto
Revilla
Roxas
Villar
Against
None
Abstention
None
With 18 senators voting in favor, none against,
and no abstention, the Chair declared House Bill
No. 2933, as amended by Senate Bill No. 2479,
approved on Third Reading.
ACKNOWLEDGMENT OF THE
PRESENCE OF GUESTS
At this juncture, Senator Cayetano acknowledged the presence of the following members of
the House of Representatives: Hon. Satur Ocampo,
Hon. Constantiuo Jaraula, Hon. Rafael Nantes, and
Hon. Jacinto Paras; officials of the University of the
Philippines led by President Emer Roman, Vice
President Marvic Leonen, Dean Ned Ecafies and
Prof. Rafael Rodriguez; Dr. Victor Barrozo of
Bukidnon; Mayor Cuyamano; and students from
the De La Salk University.
PRIVILEGE SPEECH OF
SENATOR EJERCITO ESTRADA (J)
Availing himself of the privilege hour, Senator
Ejercito Estrada delivered the following speech
THE SENATE OF THE PEOPLE
Today, as we are about to conclude the Third

and Final Regular Session of the 13Ih Congress,
I rise again to pay tribute and express my deep
appreciation and admiration to the illustrious and
honorable Members of this august Body.
'P
1447
On many occasions, especially during the

past year, this Representation has been repeatedly
approached by well-meaning constituents who
unequivocally expressed their satisfaction and
approval of the work and performance of this
Chamber.
Sa mga akasyong iyon, walang administrasyon, walang oposisyon. Lahat ay nagkaisa

para ipaglaban ai ipagtanggol ang Saligang
Batas at ang katotohanan. ang katarungan, at
higit sa lohat, ang interes, kapakanan ai
kinabukasan ng sambayanang Pilipino.
These are righteous and law-abiding

citizens, not only from Metro Manila, hut from
our provinces and regions. I met them during my
visits for consultations or to honor speaking
invitations from various civic, social and local
government organizations.
As we are about to close the 13Ih Congress,

allow me to pay homage to a Chamber and its
Members who, in many critical and difficult
occasions, stood their ground in the face of
threats and intimidation, in the face of the lure of
greater power and influence, and the corrupted
attraction of other blandishments offered by an
anomalous and cruel regime.
These are concerned citizens who have

expressed dismay and disappointment over
many issues under this administration.
Many of these remain unanswered today
even if both Chambers of Congress exerted much
effort to investigate them and uncover the truth
in the face of sinister efforts of systematic whitewash and orchestrated cover-ups.
They range from the investigation of such
issues as the election fraud of 2004, the Garci
scandal, thejueteng payolas, the fertilizer scam,
the Diosdado Macapagal Boulevard anomaly,
the Jose Pidal accounts, the Venable Contract,
the summary dismissal or removal of local
government officials, and many more, which
today remain unresolved. And the scandals
continue to accumulate.
They also include disturbing issues of the
declaration of the state of emergency, the slate
of rebellion, and the refusal of Cabinet members
to appear before congressional investigations, the
warrantless arrests, and the extrajudicial killings.
But in all these, this Chamber gained the
admiration of many of our constituents for our
unwavering conviction against the indecent and
repulsive initiative to amend the Constitution
posthaste under a Constituent Assembly.
Because this Senate said No, the Cha-cha
railroad train has now been derailed, even if only
for the time being.
During those shining moments in this
Chamber, during those moments of conviction,
during that celebration of dignity and honor,
this Chamber set aside party loyalties and
affiliations.
We voluntarily and willingly crossed party
lines and alliances because there is a higher
order of values that we collectively believed in.
For me, and I hope for our people too, it was
a demonstration of the supreme act of statesmanship.
If ever we met the expectations of our

people, it is because we did not just work hard
for it, but because we upheld and defended the
majesty and sanctity of our convictions that are
consistent and compatible with the sentiments of
the real and genuine source of political power,
our people.
With the Chambers kind indulgence, I pay

tribute to our colleagues who now bow out,
temporarily I hope, from this Chamber, hecause
they chose to honor the term limits imposed by
our Constitution.
I pay tribute to Sen. Franklin M. Drilon, who
led this Chamber when I became a senator.
From Senator Drilon, I have come to have

a better appreciation of leadership and the
responsibilities attached to it. It was also under
his able leadership and expert advice that
I was able to principally author and sponsor my
first law to he passed, Republic Act No. 9347,
or the law strengthening and rationalizing the
structure of the National Labor Relations
Commission.
Senator Drilon has chosen to set aside
alliances and allegiances in favor of the higher
order of values. He has also given me a stirring
lesson in statesmanship when, among others, he
chose to abide by a gentlemans agreement last
year. I am certain that he does not end his rich
and sterling career in public service here. I am
convinced that he has just started.
I also pay tribute to Sen. Juan M. Flavier,
who has taught me so much, and from whom,
there is still much to learn.
I remember him providing comic relief and

witty statements to relieve the tension during
those tense and trying moments when we were
deep in debate. He has this uncanny talent of
making the serious business of lawmaking lively
and amusing.
WEDNESDAY. FEBRUARY 7.2007
144X
Senator Flavier stands tall here today,

having enjoyed a long and illustrious career that
was never tainted, never soiled, then and now,
by any anomaly or any wrongdoing. He leaves
the Senate today with an unforgettable legacy
that will always he remembered. He has earned
the label Mr. Quorum which is why I have
been inspired and motivated to aim for perfect
attendance.
I also salute Sen. Sergio Osmefia Ill who
likewise leaves us an enduring legacy of probity,
dedication, acumen and, most of all, an independent and perceptive mind. From Senator Osmeiia,
I learned many things which he unselfishly
shared with me.
Senator Osmeria is the fearless fiscalizer and,

perhaps, the most hardworking senator, spending late nights studying and analyzing critical
hills and issues. He, perhaps, has the highest
number of hills filed and enacted into law.
Kayo minsan sinabi ng aking ama, kung
mayroon daw akong role model na dapat
gayahin. ong parisan ko ay si Senator Osmeiia
and 1 will never go wrong. And I have to take
note of this fatherly advice.
And of course, there is also Sen. Ramon

Magsaysay Jr. who leaves the Senate with an
equally enduring legacy of integrity, independence
and brilliance. He has served this Chamber with
unwavering and uncompromising commitment.
To you, Mr. President, and to our colleagues
who now seek reelection, we wish you the best
in your campaign. We also hope that you will
rejoin us in the next Congress.
Mr. Senate President, you are the MI. Sipag

at Tiyaga of this Chamber, who rallied this
Chamber to an unprecedented legislation
performance in a span of one year. We are
certain that you will conduct an honorable
campaign that will not be tainted by cheating
and scandals unlike you know who.
At the risk of being accused of campaigning
early, I take this opportunity to honor our
reelectionist colleagues.
Hindi naman ako nangangampanya, pero
ang sinasahi ko lamang, magagaling ang mga
laong ito na nakasama ko sa Senado. Huwag
naman sanang masamohan ng mga magnanakaw at mamamai~iy-tao ang susunod na
Kongreso.
First, I express my deep admiration to you,

Mr. President, for continuing and pursuing
the brand and style of leadership of your
predecessor. You provide today a principled
leadership that is demanded by these critical

times.
Sen. Francis Kiko Pangilinan and I had
never had any disagreement on any issue and he
zealously did his job as Senate Majority Leader
and chairman of the powerful Committee on
Rules. While I have to do my duty as a member
of the Opposition, Senator Pangilinan and 1 were
able to work together productively.
I also pay tribute to our resident litigator in
the Senate, Sen. Joker P. Arroyo. He triumphantly represented the Senate as lead counsel
in several cases before the Supreme Court,
among them, the constitutionality of the
Calibrated Preemptive Response, Executive Order
No. 464, Proclamation No. 1017, and the Sigaw
ng Bayan Peoples Initiative.
Sen. Joker P. Arroyo is reputed to belong

to the administration party. But on many
occasions, I thought he was speaking for the
Opposition when be frankly, and sometimes,
brutally commented on certain issues involving
anomalies in this government.
Sen. Edgardo J. Angara remains, in my
estimation, not just among the brilliant, hut one
of the sober minds in the Senate who has carved
a reputation of hard work. From him, I have
learned the values of doing your homework
and many things. He is and will always he
Mr. Education to all of us and we have
benefited from his wisdom.
Likewise, Sen. Panfilo M. Lacson has
brought with him a wealth of experience to the
Senate and has used this as a member of the
Opposition. He has served this Chamber well
and we hope that he returns to the Senate to
continue his work as a fiscalizer.
Sen. Ralph Recto has also given his best in
this Chamber. He is the resident tax expert in the
Senate and has worked hard to bring about a
more responsive, equitable and less burdensome
taxation policies for our people.
Sayang, kung mawawala si Senator Redo,
mahahawasan ang magagandong lalaki rito.
And finally, I pay tribute and respect to my

one and only mother, Sen. h i Ejercito Estrada,
who chose not to exercise parental privilege and
authority during the past three years of our
being together in the Senate, the first time
perhaps in our histoty when mother and son
were members of the Philippine Senate.
Senator Loi never tried to influence me in
my votes because I managed to influence her
instead. She has given me plenty of advice. #=-
1449
WEDNESDAY. FEBRUARY 7,2007
In the Senate, she is mother to us all

because of her sober and sometimes nonconfrontational stance on various issues. She was
colleague. seatmate, mother, adviser, counsel,
and psychiatrist to me, not necessarily in that
order.
And she worked zealously and dramatically
on issues close to her heart, being the chair of
the Committee on Youth, Women and Family
Relations until she decided to yield this to
Sen. Jamby Madrigal.
She has worked tirelessly and silently
without fanfare, with no need for publicity and
press releases because the mark of a true public
servant is doing what needs to be done for the
interest and welfare of the people without need
of recognition or attention.
In the Senate, Senator Loi continued her
commitment by sponsoring two landmark pieces
of legislation. These are Republic Act No. 9208
or the Anti-Trafficking in Persons Act, and
Republic Act No. 9262 or the Law Against
Domestic Violence.
She has chosen to return to private life and
pursue her social and civil works. We are still
hoping she will change her mind because I will
miss her very much.
She also says that part of this civic agenda
is to take care of President Estrada and sene as
a 24-hour duty guard and caregiver. Of course,

that is another big agenda.
I also wish Sen. Alfred0 Lm and Sen. Lit0
Lapid the best should they choose to leave the
Senate and campaign for another position. All
of us know where we will be most effective
and would be in a better position to serve our
people better.
And to my colleagues who will remain with

me until 2010, we will continue our crusade and
campaign, not just for a better government, but
for a better governance that will be credible,
honest and will command the respect of our
people at all times.
I take this opportunity to thank Sen. Miriam
Defensor Santiago, Sen. Juan Ponce Enrile and
Sen. Nene Pimentel for helping me and teaching
me on difficult legal and other issues in the
Senate. They have provided me with a sense of
bearing in the Senate.
And certainly, I thank the rest of our

colleagues today for a historic 13IhCongress, the
Senate of the people, the Senate that refused to
be cowed, the Senate that stood its ground.
We must always remind ourselves that we

are not the Senate of the administration, or of the
opposition, or of any political party, or of any
interest, or of any loyalty. We are the Senate of
the people and we follow the people for we are
only their servants. The people must reign
supreme in our hearts and minds.
I am proud today to have been a part of this
Chamber, and even prouder to have the privilege
of working and learning from brilliant and, more
importantly, principled minds.
As we are about to close this Congress

today, we look to it as an occasion for the
renewal of our commitment and dedication to
public service, to a responsible government, to
respoiisive governance and to a truly representative Congress that reflects the genuine will and
sentiment of our people.
was suspended.
It was 4t45 p.m.

At 4:46 p.m., the session was resumed.

MANIFESTATION OF SENATOR LACSON
Senator Lacson said that aside from the clerical

errors he had already pointed out to Senator Enrile,
the use of the term ex parte on page 42, lines 4
to 9 of the January 31, 2007 version of the bill was
not consistent with the rest of Section 33. Senator
Enrile said that a clean copy reflecting the corrections
has already been prepared for purposes of the Third
Reading.
Senator Lacson asked whether Section 33 in the
Third Reading copy has been corrected accordingly.
Upon motion of Senator Enrile, the session was
suspended.
It was 4:49 p.m,
At 450 p.m., the session was resumed. 4-
1450
WEDNESDAY, FEBRUARY 7.2007
Senator Enrile stated that it was agreed that the

applications to conduct wiretapping, surveillance and
examination of bank accounts of suspected terrorists,
persons charged with terrorism as well as proscribed
organizations and their members would be ex parte
but the term exparte shall he deleted in succeeding
provisions.
PRESIDENTlAL CERTIFICATlON
Upon direction of the Chair, Secretary Yabes
to wit:
the Body considered, on Third Reading, Senate Bill

No. 2137.

there being no objection, Secretary Yabes read only
AN ACT TO SECURE THE STATE AND
PROTECT OUR PEOPLE FROM
TERRORISM.
Secretaty Yabes called the roll for nominal voting.

MALACfiANG
MANILA
October 12, 2005

HON. FRANKLIN M. DRILON
Senate President
Philippine Senate
Pasay City
Dear Senate President Drilon:
Section 26(2) of the 1987 Constitution, I hereby
oertify to the necessity of the immediate
enactment of Senate Bill No. 2137, under
AN ACT TO DETER AND PUNISH
ACTS OF TERRORISM AND FOR
OTHER PURPOSES,
to address the public emergency, heightened by
the recent bombing incidents in the region and
other parts of the world, consisting of the need
to stamp out terrorism and its attendant activities
by putting in place the necessary legal framework for the speedy prosecution of perpetrators.
Best wishes.
In .favor
Biamn
Cayetano
Defensor Santiago
Drilon
Ejercito Estrada (L)
Enrile
Flavier
Gordon
Lacson
Lapid
Lim
Magsaysay
Pimentel
Revilla
Vila
Against
Madrigal
Roxas
Abstention
None
With 16 senators voting in favor, two against,
and no abstention, the Chair declared Senate Bill
No. 2137 approved on Third Reading.
EXPLANATIONS OF VOTES
Very truly yours,
By Senator Biazon
(SGD.) GLORIA ARROYO

CC: HON. JOSE C. DE VENECIA JR.
Speaker
Quezon City
APPROVAL OF SENATE BlLL NO. 2137

ON THIRD READING

Voting yes on the bill, Senator Biazon stated

that the Senate has been in the frontline of defense
against assults on the constitution and the peoples
rights.
Happily, he noted, the frontline defenders had
been bolstered by the Supreme Court, the last line of
defense, when it struck down Executive Order
No. 464, Calibrated Preemptive Response, Proclamation No. 1017, Peoples Initiative, and the call for a 4-
1451
Constitutional Assembly to effect amendments to the

Constitution.
Even as he conceded that there is need for a law
against terrorism which is a new threat to world
order, Senator Biazon recalled that as he listened to
the debates between Senator Enrile, the Sponsor of
the bill, and Senator Pimentel, he was alarmed of the
possibility that the administration could use the law to
suppress and violate the peoples rights. The fact
that there is no established definition of the term
terrorism, he said he was glad that the Members
debated extensively on what acts constitute the
crime of terrorism, who are terrorists, and even the
manner of handling persons suspected of or charged
with the crime of terrorism. He expressed relief that
the Body did not adopt the policies followed by the
United States in detaining persons suspected of the
crime of terrorism in holding centers such as the one
in Guantanamo Bay.
He declared that he stands assured that if the

Senate continues to be vigilant, the powers-that-be
would not be abe to use the law for illicit purposes.
He expressed hope that the justices of the Supreme
Court would remain as a credible institution, the court
of last resort for the people.
By Senator Madrigal
Explaining her negative vote, Senator Madrigal
lamented that unlike the other Members who were
given a few weeks to interpellate and amend the bill,
she was not even given the courtesy and the chance
to read the clean copy of the bill before proposing
her own amendments. However, she conceded that
it is a numbers game, on which matter she would not
comment further.
Hereunder is the full text of Senator Madrigals
explanation of vote:
Today is a dark day in Philippine human
rights. This Chamber has voted a draconian
measure which, I believe, will result in the
trampling of our fundamental rights.
Last 5Ih of December 2006, I delivered a
speech before the Eminent Jurists Panel of the
International Commission on Jurists in Jakarta,
Indonesia. The speech was titled Legislating in
Security Through State Tevorism.
Last night, when the Senate voted on

Second Reading on the anti-terrorism bill, which
I called the terror bill, I was reminded again of the
major points which I raised in that speech, which

I would like to read for the record today, in the
context of the hill that was approved last night.
I will read again parts of the speech.
Last 13Ih October 2006, The
Philippine Daily Inquirer published an
editorial. It was addressed not only to
the public hut also to senators like ourselves who have been called upon to
deliberate on a proposed anti-terrorism
law. It said that such a law should be
of limited duration and subject to an
annual review and reenactment b y
Congress, just a s we would like to see
a genuine sysfem f o r congressional
oversight over the armed forces and
the police discourage abuses.
The moderate appeal of that

newspaper reflects the opinion of many
millions of concerned Filipinos. In the
name of fighting terrorism, we have
seen human, civil and political rights set
aside in order to confer upon govemance unprecedented powers over those
who they view as their enemies. The
government of MIS. Arroyo wants
increased powers, too. The government
of Mrs. Gloria Macapagal Arroyo is
insisting on the passage of an oppressive anti-terrorism law. The proposed
legislation would grant it vast powers
over my fellow citizens. To the cautionay
charge that such law might become
another instrument of a far bigger terror
and worse form of terror, that is, of state
terrorism, President Arroyo and her
Cabinet, and her allies in the legislature
insist on denying it might ever he so.
But it will he so, because of the
terrifying provisions of the law that are
for all to see and read. According to the
provisions of the proposed legislation,
there is really no clear definition of
who a terrorist is. There is only mere
definition of acts of terrorism but
terrorism has no definition and neither
was a terrorist defined specifically in
the law. A person may he labeled a
terrorist by reason solely of what Gloria
Macapagal Arroyo may think she is
doing to defend what she believes she
is right. Under our Constitution, the
hills definition of terrorism is too
broad and too sweeping, covering many
crimes that are already punishable under
existing laws. The proposed law blurs
the distinction between real acts of f l
ya
1452

terrorism and ordinary crimes. Worse, it
can he interpreted to include all acts in
pursuit of legitimate dissent. In a time of
intense crisis and undisguised political
repression, the law can and will be used
to illegalize the legitimate activities of
critics and opponents of the current
administration.
What happened to the six parliamentarians and meinhers of the House
of Representatives who were accused
of participating in a rebellion against the
current regime? A few months thereafter,
five farmers collectively known as the
Tagaytay 5 were arrested and tortured
without any warrant. They continue to
be detained until now based on
trumped-up charges of rebellion.
The vagueness of defining a
terrorist is not limited to the Philippines alone. Since 1995, the United
Nations has yet to come up with a clear
definition of who a terrorist is.
Furthermore, the proposed legislation creates a new set of crimes. It
grants a disturbing freedom of movement
and discretion to the Philippine law
enforcement officers and the military.
Under the present draft of the bill,
Philippine police or any government law
enforcement officer may engage in
wiretapping. This may be done through
an ex parte written application before
the Court of Appeals and based only
on reasonable grounds. The written
application and the order of the court
are declared as classified information.
Any legitimate exercise of ones
right to appeal for the redress of grievances has the potential, under the proposed law, to be considered terrorism
solely by reason of membership of a
suspect in an organization, association
or a group of persons labeled as
terrorist group by the government.
Any Filipino or foreigner is liable to
arrest and detention without judicial
warrant of arrest for a period of three
days. This provision, as pointed out by
the International Commission of Jurists
in their letters to the members of the
Philippine Senate dated 3 November
2006, would violate Article XIX,
paragraph (3) of the United Nations
International Covenant on Civil and
Political Rights, of which we are a

signatory, which requires that a person
arrested be brought promptly before a
judicial authority. Under international
law, the term promptly does not
exceed 48 hours even if national
security concerns are involved.
Bank deposits, accounts and
records may he examined through an
ex parre written application by the
police and law enforcement officers
before the courts. The written application and order of the court allowing
such examination are considered
classified information.
The bill can cripple opposition
businessmen and politicians with its
provision that allows the examination
(Sections 27 and 28) and the freezing
(Sections 30 and 37) of bank accounts
of persons charged or suspected of the
crime of terrorism.
It is bad enough that DOJ Secretary
Raul Gonzalez can charge with conspiring to terrorism selected members of the
Makati Business Club, for example, and
pave the way for the freezing of their
accounts. It is worse if bank accounts
of mere suspects can now be opened
even without being charged in court.
This panoply of powers, the Executive department argues, is a matter of
life and death and, therefore, GMA must
enjoy these powers. But as the editorial
mentioned in the beginning, pointed out
and I quote again: We must bear in
mind that the administration trying
to panic Congress into passing this
law is the same administration that
proclaimed the February 2004 homhings of the Super Ferry 14 as a mere
accident, Indeed, President Gloria
Macapagal Arroyo said it was the work
of pranksters, She and other officials
admitted only that it was what everyone
thought it was - the countrys worst
terrorist attack on October - only after
she had claimed victory in the May 2004
elections. Yet, four weeks after the
bombing, Redondo Cain Dellosa, alias
Arnulfo Alvarado, had been captured
by investigators and confessed he had
planted the bomb where it would inflict
the greatest number of casualties. The
Abu Sayyaf claimed credit, but the
government laughed it off until after the
WEDNESDAY. FEBRUARY I . 2007
elections. Even then, the President

claimed the six have been caught while
the two masterminds evaded apprehension.
On the social and political issues,
my concerns on the anti-terrorism
legislation are as follows:
In the hands of a repressive
4
regime such as that of MIS. Gloria
Macapagal Arroyo, the anti-terrorism
bill will create a shadow crimina1,lusfice
system that, in turn, will be used as an
instrument of a greater terror perpetrated by people in power against their
critics and political opponents.
I am deeply bothered by the

incident that occurred in the raiding of
the Good Shepherd Convent in the
Philippine province of Butuan, and the
statement made by the Armed Forces
of the Philippines in the province of
Bulacan that churches can be used as
sites for conducting anti-insurgency
campaigns.
Recently, the Armed Forces of the

Philippines sent a chilling message to all
human rights defenders when it called
for the labeling of the reputable
Amnesty International as persona non
grafa in the Philippines.
e
We are against the use of
violence against civilians. But national
security should not be used as an
excuse to stifle the freedoms and human
rights guaranteed by the Constitution.
We agree with the position made by
Amnesty International that security
and human rights are not alternatives;
they go hand in hand. Respect for
human rights is the route to security,
not an obstacle to it. The route to
security is through respect for human
rights, not their violations.
As the UN Secretary General Kofi

Annan had stressed: While we
certainly need vigilance to prevent acts
of terrorism, it will be self-defeating if
we sacrifice other priorities such as
human rights in the process.
Worldwide, there is now a growing
clamor for either the repeal or rnodification of existing terrorist laws.
In 2004, India, a country which has
faced serious threats from terrorism and
1441
other forms of political violence, took a

significant step forward for human
rights by repealing its anti-terrorism
law. In India, the Prevention of Terrorism Act of 2002 was repealed.
In Canada, a federal judge has
struck out as unconstitutional the
definition of terrorist based on his
political and religious belief.
And most recently, according to a
news report, U.S. Federal District Judge
Audrey Collins, in a 2 1 November 2006
rnling, struck down as unconstitutionally vague an executive order of
President Bush allowing the latter to
create a list of especially designated
global terrorist groups.
The same rnling also enjoined the
government of the United States from
blocking the assets of two foreign
groups - the Tamil Liberation Tigers of
Sri Lanka and the Partiya Karkeren
Knrdistan of Turkey, which were placed
on the list.
This ruling is significant considering the fact that the Communist Party of
the Philippines and the New Peoples
Army are also labeled and included in
the list of the United States as foreign
terrorist organizationsand people therein
as terrorists. This ruling only amplified
the argument that the meaning of
terrorism is often determined by context
rather than by a logical explanation.
In a report on Indias Auti4
Terrorism and Security Law, prepared
by the Association of the Bar of the
City of New York for the Committee
on International Rights, it said that,
Attentiveness to this human rights
concern is not simply a moral and legal
alternative, but also a crucial strategic
imperative. As the Supreme Court of
India has recognized, terrorism often
thrives where human rights are violated
and the lack of hope for justice provides
breeding grounds for terrorism.
4
Present anti-terrorism legislations rely on the same institutions used
in fighting other crimes - the police,
the military, the prosecution and the
Judiciary. More often than not, these
same institutions have been tainted
with doubts and their competency to
protect human rights laws seriously
1454
undenined. If these institutions are

used to confront the so-called menace
of terrorism, intense pressure will only
subject them to commit further abuses.
I am not alone in raising these
concerns. In my visit to Europe last
year, the International Commission on
Jurists, the International Federation of
Journalists, Amnesty International, and
members of parliament have also
expressed the same concerns regarding
the Philippines' anti-terrorism bill.
Recently, the European Union
Diplomatic Corps in the Philippines have
also expressed their concerns regarding
the possible human rights violations of
the proposed anti-terrorism bill.
The issue on terrorism has been
studied particularly well with respect
to human rights. Present anti-terrorism
legislations rely on tho same institutions
used in fighting other crimes - the
police, the military, the prosecution and
the Judiciary.
We cannot overstate the problems
being encountered in the Philippines
because of the draconian measures
being promulgated by the lackeys of
President Gloria Macapagal Arroyo. To
break this cycle of merely legislating
offense without addressing the root
problems of why terrorism exists, it is
necessary to protect human rights and
adopt a paradigm shift on how we view
issues on security.
Last night, I presented more than 150
amendments. Most of them were not accepted
by the Sponsor of the measure. My amendments
were substantial and were intended tn introduce
the principles of human security to shift the
focus on how we view national security. Human
security refers to the security of individuals as
opposed to national security which refers merely
to the security of states. The key elements of my
proposed amendments were:
Adopt as a state policy to value
the dignity of every human person and
grant full respect for human rights as
the means for ensuring the security of
its people. Towards this end, the State
should adopt human security measures
to protect the people from pervasive
threats to their rights, safety and lives.
6
Such measures should have
included conflict management and postconflict peace-building, to addressing
the roots of conflict by building State

capacity and promoting equitable
economic development that the state
should further advance the protection
and promotion of human rights, the rule
of law, the culture of peace and peaceful
resolution of conflicts by adopting
interventions that are people-centered.
~
The amendments would have included:

1) a separate chapter devoted entirely to human
rights such as recognition and equality before
the law; the right to life; protection from torture,

cruel and inhuman punishment (Until now, we
have no law against forced disappearances and
torture, and even the CHR commissioner has
pointed this out to me and this is why she was
very much worried by the proposed antiterrorism bill); protection of the right to privacy
and reputation; freedom of movement; freedom
of thought, conscience and belief; peaceful
assembly and freedom of expression; right to
liberty and security of person; right to humane
treatment when deprived of liberty; right to fair
trial; compensation for wrongful conviction;
right not to he punished more than once;
right of ethnic, religious or linguistic groups;
2) Strengthening the Philippines' constitutional
body, the CommiSsion on Human Rights, by
giving it prosecutorial powers on human rights
abuses and requiring it to adopt human security
programs to address the root causes of conflict;
and 3) The creation of an independent watchdog
to monitor the implementation of the law.
What I find further appalling is the fact
that the measure the Chamber has approved
on Third Reading is also, perhaps, the product
of the lobbying and intense pressure of the
United States as part of its so-called war on
terror. This, again, is a travesty of our sovereignty.
We have allowed ourselves to become willing
pawns in a war that many independent states are
now starting to condemn We have given Gloria
Macapagal Arroyo the tools to terrorize her
own people.
Let us pray that God will watch over
whatever happens now that the bill was passed
on Third Reading and that may God put in the
hands of the right people this dangerous tool
and may He give those who are in danger of
being oppressed by this law, should it pass, the
strength, the courage and the grace to fight the
darkness that will overshadow their lives.
By Senator Roxas
In explaining his negative vote, Senator Roxas
said that he does not believe that the weakest
1455
link in the countrys battle against terrorism lies in

not having an appropriate law to combat the crime.
He stressed that the nation cannot defend its liberty
by forsaking freedom nor could there he security
if civil liberties are less secure. He noted that basic
items for combating terrorism like information-sharing
among government agencies as well as adequate
equipment and training for forensics and law enforcement, which would contribute to greater success
against the war on terrorism, are not in place.
Senator Roxas believed that the damage that the
Anti-Terrorism Law could cause is worse than whatever meager or marginal contribution it would have.
He said that while the battle is constant between the
citizens civil liberties and the governments right to
protect and defend the State, it is important for
government to always strike the appropriate balance.
In this instance, he said that without having effectively
addressed other issues such as training, equipment
and all other elements necessary to combat terrorism,
it is not correct to simply pass a law that curtails civil
liberties in the hope that it would become an effective
tool against terrorism.
By Senator Drilon
Senator Drilon said that while he voted
affirmatively on the bill, he had some reservations on
some provisions, particularly Section 26 (Restriction
on Travel) because he believed that when the
evidence of guilt is not strong in a capital offense and
the person is granted bail, that person is free, pending
final decision of the case and should not be subject
to the restrictions provided in this particular section.
Likewise, he observed that there appears to be
something wrong in the wording of Section 29 because
a suspect could he detained beyond three days even
without a warrant when the same was approved by
a human rights commissioner who is not a judge and
possibly may not even he a lawyer.
However, Senator Drilon stated that Senator
Enrile has graciously agreed to discuss these matters
in the bicameral conference.
By Senator Pimentel
Senator Pimentel stated that his affirmative vote
on the hill is conditional on the outcome of the
bicameral conference committee.
Senator Pimentel noted that about 95% of the
bill, as is now constituted, was the fruit of his
amendments together with Senators Drilon, Madrigal,

Defensor Santiago and Lacson, the sum of which is
to remove the sharpest teeth of the anti-terror bill
that could bite the civil liberties of the people.
Nonetheless, he said that there is much work to be
done in the bicameral conference committee.
was suspended.
It wos 5:30 p.m
At 5:31 p.m., the session was resumed
of the immediate enactment of House Bill No. 5859,
to wit:
MALACfiANG PALACE
MANILA
February 6,2007
HON. MANUEL B. VILLAR JR
Senate President
Philippine Senate
Pasay City
Dear Senate President:
enactment of House Bill No. 5859 under
AN ACT PROVIDING FOR THE
AFPORnoNMENT OF THE LONE
LEGISLATnrE DISTKICT OF THE
CITY OF CAGAYAN DE ORO,
to address a public emergency arising from the
urgent need to provide immediate and effective
representation to the people of Cagayan de Or0
City in the face of phenomenal growth in its
population, as well as to ensure speedy delivery
of basic services to its inhabitants.
Best wishes.
Very tmly yours,
(SGD.) GLORIA M. ARROYO
1456
cc. Hon. Jose C . De Venecia Jr.

Speaker
Quezon City
APPROVAL OF HOUSE BILL NO. 5859

ON THIRD READING
No. 5859.
Oro, Senator Cayetano replied that it is the urgent

need to provide immediate and effective representation
to the people of Cagayan de Or0 in the face of the
phenomenal growth of its population.
With the permission of the Body, the Chair
suspended the session.
It wus 5:35 p.m,
AN
A C T PROVIDING FOR THE

APPORTIONMENT OF THE LONE
LEGISLATIVE DISTRICT OF THE
CITY OF CAGAYAN DE ORO.

In ,favor
Arroyo
Cayetano
Enrile
Flavier
Gordon
Lapid
Madrigal
Magsaysay
Osmeiia
Pangilinan
Pimentel
Roxas
Villar
Against
None
Abstention
None
No, 5859 approved on Third Reading.
INQUIRY OF SENATOR DRILON

Asked by Senator Drilon what public emergency
was being sought to be addressed by the apportionment of the lone legislative district of Cagayan de
CONFERENCE COMMITTEE REPORT

ON SENATE BILL NO. 1745
AND HOUSE BILL NO. 3315
no objection, the Body considered the Conference
Committee Report on the disagreeing provisions of
Senate Bill No. 1745, entitled
AN ACT PROVIDING FOR COMPENSATION TO THE VICTIMS OF HUMAN
RIGHTS VIOLATIONS DURING THE
REGIME OF FORMER PRESIDENT
FERDINAND MARCOS, WCUMENTATION OF SAID VIOLATIONS,
APPROPRIATlNG FUNDS THEREFOR
AND FOR OTHER PURPOSES,
and House Bill No. 3315, entitled
AN ACT PROVIDING COMPENSATION
TO VICTIMS OF HUMAN RIGHTS
VIOLATIONS DURING THE MARCOS
REGIME, DOCUMENTATION OF
S A I D VIOLATIONS, APPROPRIATING
FUNDS THEREFOR AND FOR
OTHER PURPOSES.
The Chair recognized Senator Arroyo to sponsor
the report.
SPONSORSHIP REMARKS
OF SENATOR ARROYO
Senator Arroyo informed the Body that the
bicameral conference committee had agreed that the
P10 billion compensation package proposed in
the Senate version shall prevail over the P8 billion f l
package proposed in the House version; and to ensure

the independence ofthe Board, which would d e t e m ~ e
the qualifications of the victims and the amounts to
be awarded to them, four of its members would
come from the NGOs and one from the government.
1457
2.
AN ACT TO ESTABLISH AQUATIC

RESEARCH AND EXPERIMENTAL
BREEDING STATIONS IN SUITABLE
MUNICIPALITIES IN THE PROVINCE
OF CAMARINES SUR FOR THE
CULTURE, BREEDING AND PROPAGATION OF MUDFISH (DALAG),
NATIVE HITO, GURAMI AND
FRESHWATER SHRIMP, AND FOR
OTHERPLRPOSES;
Moreover, Senator Arroyo stated that the Board

would have to finish its work within two years.
APPROVAL OF THE CONFERENCE

COMMITTEE REPORT
Submitted to a vote and there being no objection,
the Conference Committee Report on the disagreeing
provisions of Senate Bill No. 1745 and House Bill
No. 3315 was approved by the Body.
3.
4.
following from the Calendar for Ordinary Business to

the Calendar for Special Orders:
2. Committee Report No. 251

on House Bill No. 5840;

on House Bill No. 5855; and

RILLS ESTABLISHING MARINE RESEARCH
AND BREEDING CENTERS
With the unanimous consent of the Body, upon
motion of Senator Cayetano, the following hills were
considered on Second Reading:
1.
House Bill No. 5849 (Committee Report
No. E O ) , entitled
AN ACT ESTABLISHING A MARINE
FISHERIES LABORATORY IN THE
MUNICIPALITY OF SAN JOSE,
PROVINCE OF NORTHERN SAMAR,
AND AUTHORIZING THE APPROP U T I O N OF FUNDS THEREFOR,

No. 253), entitled

RESEARCH AND BEEDING CENTER
IN THE MUNICIPALITY OF BALER,
PROVINCE OF AURORA, APPROPRIATING FUNDS THEREFOR AND
FOR OTHERPURPOSES;
I . Committee Report No. 250



No. 252), entitled
AN ACT TO ESTABLISH AN OYSTER AND

MUSSEL FARM IN THE MUNICIPALITY OF CALABANGA, PROVINCE
OF CAMAKINES SUR,APPROPIUATING FUNDS THEREFOR AND FOR
OTHERPURPOSES;
SPECIAL ORDERS
no objection, the Body approved the transfer of the

No. 251), entitled
5.

No. 254), entitled
AN ACT ESTABLISHING FISHERY AND
RESEARCH CENTERS IN EACH OF
THE MUNICIPALITIES OF BASEY,
CALBIGA, CATBALOGAN, DARAM,
JIABONG, MARABUT, MOTIONG,
PARANAS, PINABACDAO, SAN
SEBASTIAN, STA. mA,TALALORA,
VILLAREAL AND ZUMARRAGA, ALL
IN THE PROVINCE OF SAMAR AND
APPROPRIATINGFUNDS THEREFOR
and
6. House Bill No. 5852 (Committee Report

No. 255), entitled

RESEARCH AND BREEDING CENTER
IN THE MUNICIPALITY OF
ODIONGAN,PROVINCE OF ROMBLON,
APPROPRIATING FUNDS THEREFOR
AND FOR OTHER PURPOSES.
of the Senate, with the permission of the Body, upon
motion of Senator Cayetano, only the titles of the bills .@-
1458
were read without prejudice to the insertion of their

full texts into the Record of the Senate.
especially the higher value ones which

can be exported.
The Chair recognized Senator Magsaysay for

the sponsorship.
INTERPELLATION OF SENATOR BIAZON
SPONSORSHIP SPEECH
OF SENATOR MAGSAYSAY
Asked by Senator Biazon what agencies would

be implementing the laws, Senator Magsaysay replied
that it is the Bureau of Fjsherjes and Aquatic
Resources under the Department of Agriculture.
In his omnibus sponsorship, Senator Magsaysay

stated that House Bill Nos. 5849, 5840, 5841, 5850,
5855, and 5852 are necessary components in the
governments drive to increase productive capacity
in the aquaculture subsector which is envisioned
to provide more than 50% of the countrys food
requirements in the next 10 years. He cited the
purpose of each bill:
House Bill No. 5840 would provide for

the technology outreach program in the
governments thrust to provide freshwater
fish, most especially varieties that ordinary
Filipinos consume such as dalng, hito,
gurnmi, freshwater shrimps and the like;
House Bill No. 5841 constitutes the other
half of the aquaculture subsector as the
focus is on marine species such as oysters,
mussels, crabs and shrimps;
Since fish health is a vital issue in
production, thus, the need for fish health
laboratories, House Bill No. 5849 provides
for the establishment of a marine fisheries
laboratory in San Jose, Northern Samar;
To further develop aquaculture, House
Bill No. 5850 seeks to establish a marine
research and breeding center in the
province of Aurora purposely to study
the introduction and propagation of higher
value fish species which could also be
produced in the province;
In the same manner, House Bill No. 5852

recognizes the need to establish a marine
research and breeding center in Romblon
where marine aquaculture parks could
be established; and
House Bill No. 5855 seeks to establish a
fishery research and technology center
in Jiabong, Samar that has the most
number of marine culture parks, 12 since
2003. The creation of this center will
address the need of fisherfolk as regard
technology in growing various species,
Asked how much starting capital is required,

Senator Magsaysay said that it is P2 million per
center per year, which shall be sourced from the
agricultural budget of 2007.
was suspended.
It was 5:47 p m .
At 5:47 p,m., the session was resumed
SUSPENSION OF THE RULES

no objection, the Body suspended the Rules of the
Senate to expedite the proceedings.
TERMINATION OF THE PERIOD

OF INTERPELLATIONS
There being no further interpellations on any of
the bills, upon motion of Senator Cayetano, there being
no objection, the Body closed the period of interpellations and proceeded to the period of amendments.
TERMINATION OF THE
PERIOD OF AMENDMENTS
There being no committee or individual
amendment to any of the bills, upon motion of
Senator Cayetano, there being no objection, the Body
closed the period of amendments.
APPROVAL OF HOUSE BILL

NOS. 5849, 5840, 5841, 5850, 5855
AND 5852 ON SECOND READING
Submitted to a vote, there being no objection,
House Bill Nos. 5849, 5840, 5841, 5850,5855 and#
5852 was approved on Second Reading, one after

the other.
SUSPENSION OF CONSIDERATION
OF HOUSE RILL NOS. 5849, 5840,
5841, 5850, 5855 AND 5852
no objection, the Body suspended consideration of
the bills.
was suspended.
It was 5:49 p.m.

SPECIAL ORDER
no objection, the Body approved the transfer of
Committee Report No. 256 on House Bill No. 2454
from the Calendar for Ordinary Business to the
Calendar for Special Orders.
COMMITTEE REPORT NO. 256

ON HOUSE BILL NO. 2454
no objection, the Body considered, on Second Reading,
House Bill No. 2454 (Committee Report No. 256),
entitled
AN ACT GRANTING PHILIPPINE
CITIZENSHIP TO MR. JOSE R.
RODRIGUEZ.
of the Senate, with the permission of the Body, upon
motion of Senator Cayetano, only the title of the bill
was read without prejudice to the insertion of its full
text into the Record of the Senate.
The Chair recognized Senator Enrile for the
sponsorship.
SPONSORSHIP SPEECH OF SENATOR ENRILE

In sponsoring House Bill No. 2454, Senator
Enrile delivered the following speech:
1459
It is my pleasure to rise before this Chamber
today to present and sponsor House Bill
No 2454, entitled An Act Granting Philippine
Citizenship to Mr. Jose R. Rodriguez filed under
Committee Report No. 256.
In this time and age where the thrust of our
citizens is to migrate to other countries, here is
another foreign national who prefers to be a
Filipino than to remain a national of his country
of birth, As a foreigner, he must see what his
forefathers saw in the Philippines, starting with
Magellan - although he is a Portuguese, he
represented the King and Queen of Spain. Our
beautiful country is known throughout history
as Pearl of the Orient Seas.
Jose R. Rodriguez is a Spanish national, who
has been a permanent resident of the Philippines
for more than a quarter of a century. He is
married to a noted Filipina portrait artist, Lourdes
Coching Rodriguez, with whom he has two
children, Lara Maria and Jose Francisco, both
surnamed Rodriguez. His children, both Filipino
citizens, were schooled here in this country
particularly at the Assumption College and at the
Colegio de San Agustin.
Mr. Rodriguez is a writer and journalist by
profession, He is a member of different journalists associations. He became president of the
Foreign Correspondent Association of the Philippines (FOCAP) in 1992 and was elected president
of the Manila Overseas Press Club (MOPC) in
1995. He is also a member of the International
Press Institute, the Asian Journalists Association,
the Association of the European Journalists, the
APE, the Press Association of Madrid, and the
National Press Club of the Philippines.
Pepe, as he is fondly hown, is also a
contributor of opinions and writings to daily
newspapers, such as the Manila Bulletin and
the Philippine Star. He published three books,
two of which are about the Philippines: Chronicas,
a volume of his random recollections of his days
as a journalist which our famous and noted Nick
Joaquin describes as delightful, delicious, de
luxe, lovely, a love letter at last from dear old
Spain; and Philippine First Ladies Portraits, a
book which celebrates the lives of Philippines
first ladies. He did not include Philippine frst
gentlemen as there was none yet at that time.
Mr. Rodriguez said that the hooks were for
him a way of thankkg the people of these
paradise islands, the Philippines, who embraced
him as one of their own from the very moment he
arrived in 1977. Imagine coming to this country
during martial law. His other book is entitled#Twelve Poets of Guadalupe, Madrid 1972.
1460
Highly educated, MI. Rodriguez has a PhD

and Master of Arts in Business Administration
at Newport University in the United States of
America. He also holds a Bachelor of Science
Degree in Agriculture, Technical Engineering
from the University of Madrid. He has also been
conferred a degree of Doctor of Humanities,
honoris cuusu by the Pnmantnsnn rig Lungsod
ng Muyniln.
As if his educational attainments are not

impressive enough, Mr. Rodriguez is also multilingual. Aside from Spanish, he is fluent in
English, Portuguese and French, as I was not
mistaken in referring to Magellan. And he is
very knowledgeable of our Filipino language. In
fact, I asked him during the committee hearing if
he knows some of our dialects or understand our
dialect, and he said yes.
MI. Rodriguez conducted himself in a proper
and irreproachable manner during his entire stay
in the Philippines. He is a law-abiding citizen and
per information of the Bureau of Immigration, he
does not have any record that goes against what
we consider to be a man of rectitude, and he is
especially not among those included in any
blacklisting by our govenunent.
MI. Jose Pepe R. Rodriguez frequently
interacts socially with Filipino citizens. He has
learned and embraced the customs, traditions
and ideals of Filipinos.
In fact, in 2004, Pres. Gloria Macapagal
Arroyo conferred the Order of Sikatuna, Rank of
Lakan, on MI. Rodriguez for his efforts in
renewing and advancing ties between Spain and
the Philippines during his 25 years stay in this
country.
In his acceptance speech, Mr. Rodriguez
said that for someone who has spent the best
years of his life in fhis country, he confessed
that at the very moment, he felt that he is, he
was, and will be a Filipino.
1 could go on and on and enumerate the
long list of achievements of this person who
calls our country his home and who considers
this country his home.
However, I find it sufficient to say that with
Mr. Jose Rodriguezs achievements, qualities
and qualification and love of country as reflected
in his works, this man is a welcome addition to
the Philippines as one of its citizens.
With this, I urge this Chamber to pass this
bill into law and grant Philippine citizenship to
Mr. Jose Rodriguez.
REMARK OF SENATOR ARROYO

Senator Arroyo expressed support for the bill
granting Filipino citizenship to Mr. Rodriguez who, he
said, is a very good Filipino.
REMARKS OF SENATOR BIAZON

Senator Biazon stated that he often met Pepe
Rodriguez in social gatherings and in the golf course.
He said that he would like to be associated with
Senator Arroyos remarks.
COAUTHORS
Upon motion of Senator Enrile, there being no
objection, Senators Angara, Cayetano, Biazon, Arroyo,
Ejercito Estrada (J), Lacson, Magsaysay, Flavier,
Lim, Gordon, Recto and Villar were made coauthors
of the bill.
INTERPELLATION OF SENATOR ANGARA

Asked by Senator Angara if MI. Rodriguez is
the head of the Institute de Cervantes and a longtime representative of the Spanish Press, ZPE,
Senator Enrile replied in the affirmative.
Senator Angara stated that he was the proponent

of the law creating the Philippine-Spanish Friendship
Day which Don Rodriguez knows has brought the
Spanish-Philippine relations closer again after it was
interrupted by Hollywood 70 years ago. He said that
the grant of citizenship to Mr. Rodriguez is really a
Senates token of recognition of the services he has
done for the country.

OF INTERPELLATIONS
There being no further interpellations, upon motion
of Senator Enrile, there being no objection, the Body
closed the period of interpellations and proceeded to
the period of amendments.

OF AMENDMENTS
amendment, upon motion of Senator Enrile, there
being no objection, the Body closed the period of
amendments.
A-
1461
SAGRAY, PROVINCE OF CAMARINES

SUR AS A TOURIST ZONE;

ON SECOND READING
House Bill No. 2454 was approved on Second
Keading.
2.
AN ACT DECLARING THE ISLANDTOWNS OF BIRI, CAPUL, SAN

ANTONIO AND SAN VICENTE, ALL
IN THE PROVINCE OF NORTHERN
SAMARAS ECO-TOURISM ZONES;
was suspended.
3.
It was 6:04 p.m.
OF HOUSE BILL NO. 2454
was suspended.

No. 235), entitled
AN ACT DECLARlNG THE ISLANDS OF
LAHUY, COTIVAS, GUINAHUAN,
LUKSUHIN, MALIBAGAN AND
MASAG, OFF THE NORTHEASTERN
COAST OF THE MUNICIPALITY
OF CARAMOAN, PROVINCE OF
CAMARINES SUR AS TOURIST
ZONES; and

the hill.

No. 234), entitled
4.

No. 236), entitled
AN ACT DECLARING THE PROVINCE
OF BOHOL AS AN ECO-CULTURAL
TOURISM ZONE
Senator Cayetano stated that the parliamentary
status was the period of interpellations.
It was 6:06 p.m.
The Chair recognized Senator Gordon, Sponsor
SUSPENSION OF THE RULES

no objection, the Body suspended the Rules of the
Senate to allow the consideration of four tourist zone
hills at the same time.
TOURIST ZONE BILLS

(Continuation)

no objection, the Body resumed consideration, on
Second Reading, of the following House bills:
of the measure.
OF INTERPELLATIONS
There being no interpellation on any of the bills,
upon motion of Senator Cayetano, there being no
objection, the Body closed the period of interpellations
and proceeded to t h e period of committee
amendments.

was suspended.
It was 6:08 p.m
1.

No. 233), entitled
ANACTDECLARINGTHEATULAYAN
ISLAND OF THE MUNICIPALITY OF
At 6:08 p.m., the session was resumed. 4@'
1462
D) THE DOT AND ITS ATTACHED

AGENCIES MAY PROVIDE NECESSARY TECHNICAL ANTI FINANCIAL
ASSISTANCE FOR THE DEVELOPMENT OF TOURISM NFRASTRUCTURE AND SKILLS DEVELOPMENT
WHILE ENDEAVORING, WHEN
PRACTICABLE, TO PROMOTE THE
TOURISM ZONEBOTH KCALLY AND
INTERNATIONALLY.
E) THE DOT, PDA AND THE RELEVANT
MUNICIPALITIES SHALL CREATE A
FORUM BY WHICH THE PRIVATE
SECTOR NONGOVERNMENT ORGANIZATIONS AND OTHER INTEREST
GROUPS, CAN INTERACTWITH ONE
ANOTHER AND THE GOVERNMENT
TO CREATE AN ATMOSPHERE THAT
SHALL ENCOURAGE INVESTMENT,
AND THE DEVELOPMENT OF A
CULTURE OF TOURISM,
PROPOSED COMMITTEE AMENDMENTS

Upon motion of Senator Cayetano there being no
objection, the the Body approved the insertion into
the Record of the Senate of the following Committee
amendments to the House bills as contained in their
respective Committee reports:
House Bill No. 591
(Committee Repor.t No. 233):
1.
On page I , delete lines 1 to 2, and in lieu

thereof, insert a new Section 1 which shall
read as follows:
SECTION 1. THIS ACT HEREBY
DECLARES THE ATULAYAN ISLAND OF
THE MUNICIPALITY OF SAGNAY,
PROVINCE OF CAMARINES SUR AS A
NATIONAL TOURISM ZONE
2.
On the same page, delete the entire Section

2, from line 3 up to line 9, and in lieu thereof,
insert a new Section 2 which shall read as
3.
On page 2, delete Section 3 and renumber the

succeeding sections accordingly; and
4.

4 and Section 5, and in lieu thereof, insert the
new sections as follows:
follows:
SEC. 2. UNTII. COMPREHENSIVE
LEGISLATION RATIONALIZING THE
NATIONAL TOURISM PROGRAM IS
ADOPTED,THE FOLLOWING PRINCIPLES
SHALL GOVERN THE PLANNING,
DEVELOPMENT, PROMOTION AND
MANAGEMENTOFTHIS TOURISM ZONE
A) THE DEPARTMENT OF TOURISM
(DOT) AND ITS ATTACHEDAGENCIES,
AND THE PARTIDO DEVELOPMENT
ADMINISTRATION (PDA) SHALL
COOR!XNATE IN TIIEFORMULATION
OF ATOURISM DEVELOPMENT PLAN
FOR THE TOURISM UINE: PROPWED,
THAT SAID PLAN IS CONSISTENT
WITH, OR MAY BE INTEGRATED
INTO, THE NATIONAL TOURISM
MASTER PLAN OF THE DOT.
B) THE PLAN SHALL PROTECT AND
ENHANCE THE NATURALFEATURES
AND CULTURAL HERITAGE OF THE
TOURISM ZONE, WHILE PROVIDING
SUSTAINABLEECONOMIC OPPORTUNITIES F O R m LOCALCOMMUNlTY.
SEC. 3. THE DEPARTMENT OF

TOURISM, IN CONSULTATION WITH THE
PDA AND THE LOCAL GOVERNMENT
CONCERNED, SHALL ADOPT APPROPRIATE RULES AND REGULXTONS,AND
ENTER INTO AGREEMENTS TO
IMPLEMENT THIS ACT.
SEC. 4. THIS ACT SHALL TAKE
EFFECT AFTER FIFTEEN (15) DAYS OF
COMPLETION OF ITS PUBLICATION.
House Bill No. 786
(Cornmilfee Report No. 234)
1. On page 1, delete lines 1 to 5 , and in lieu

thereof, insert a new Section which shall read
as follows:
DECLARES TIE ISLAND-TOWNS OF BIRI,
CAPUL, SAN ANTONIO AND SAN
VICENTE IN THE PROVINCE OF
NORTHERN SAMAR AS NATIONAL
TOURISM ZONE,
C) THE PDA AND THE RELEVANT
MUNICIPALITIES SHALL UTILIZE

ITS POWERS PROVIDED UNDER
R.A. 7820, AS AMENDED, AND THE
LOCAL GOVERNMENT CODE, RESPECTIVELY, TO IMPLEMENT AND
ENFORCE THE TOURISM DEVELOPMENT PLAN.
2.
Delete the entire Section 2, from page 1,

line 6 up to page 2, line 5 and in lieu thereof,
follows:
SEC. 2. UNTIL COMPREHENSIVE
1463

ADOPTED, THE FOLLOWING PRINCIPLES
MANAGEMENT OF THIS TOURISM ZONE:
A) THE DEPARTMENI OF TOURISM
(DOT) AND ITS ATTACHEDAGENCIES,
ANDTHEPROVINCL4LGOVERNMEM
OF NORTHERN SAMAR SHALL

COORDINATE IN THE FORMULATION
OF A TOURISM DEVELOPMEW PIAN
FORTHETOURISM ZONE: PROWDED,
THAT SAID PLAN IS CONSISTENT
B) THE PLAN SHALL PROTECT AND
ENHANCE THE NATURAL FEATURES
TOURISM ZONE. WHlLE PROVIDING
NITIES FORTHE LCALCOMMUNlTY.
C) THE RELEVANT LOCAL GOVERNMENT SHALL UTILIZE ITS POWERS
PROVIDED UNDER THE LOCAL

GOVERNMENTCODE TO IMPLEMENT
AND ENFORCE THE TOURISM
DEVELOPMENTPLAN
D) THE DOT AND ITS ATTACHED
AGENCIES MAY PROVIDE NECESSARY TECHNICAL AND FINANCIAL
ASSISTANCE FOR THE DEVELOPMENT OF TOURISM INFRASTRUCTUREANDSKILLsDEVELQPMJ2NTIN
THE LOCAL GOVERNMENT WHILE
ENDEAVORING, WHEN PRACTICABLE, TO PROMOTE THE TOURISM
ZONES BOTH LOCALLY AND
INTERNATIONALLY.
E) THE DOT AND THE LOCAL GOVERN-
MENT SHALL CREATE A FORUM BY

WHICH THE PWATE SECTOR, NONGOVERNMENTORGANIZATIONSAND
OTHER INTEREST GROUPS, CAN
INTERACT WITH ONE ANOTHER
AND THE GOVERNMENTTO CREATE
AN ATMOSPHERE THAT SHALL
ENCOURAGEINVESTMENT.ANDTHE
DEVELOPMENT OF A CULTURE OF
TOURISM,
F) THE LAND EMBRACED BY THE
TOURlSM ZONE SHALL BE EXEMPT
FROM THE COVERAGE OF THE
COMPREHENSIVE AGRARIAN
REFORM PROGRAM. AND SHALL BE
DETERMINED BY THE CONCERNED

SANGGU.;
3.
On page 2, delete Section 3 and renumber the
succeeding sections accordingly;

4. On the same page, delete the entire Section
4 and Section 5 , and in lieu thereof insert the
new sections as follows:

LOCAL GOVERNMENT CONCERNED,
SHALLADOPT APPROPRIATE RULES AND
REGULATIONS, AND ENTER INTO AGREEMENTS TO IMPLEMENT THIS ACT, and
House Bill No. 574
(Committee Report No. 235)
On page 1, second line of the title, replace
the word Covitas with COTIVAS after the
word Lahuy;
On the same page, delete lines 1 to 3, and in

lieu thereof, insert a new Section 1 which
shall read as follows:

DECLARES THE ISLANDS OF LAHW,
COTIVAS, GUINAHUAN, LUKSUHIN,
MALIBAGAN AND MASAG, OFF THE
NORTHEASTERN COAST OF THE
MUNICIPALITY OF CARAMOAN,
PROVINCE OF CAMARINES SUR AS
NATIONAL TOURISM ZONES.;
Delete the entire Section 2, from page 1, line
4 up to page 2, line 2, and in lieu thereof,
follows:
ADOPTED, THE FOLLQWING PRINCIPLES
SHALLGOVERNTHEPLANG,DEVELOPMENT, PROMOTION AND MANAGEMEN
OF THESE TOURISM ZONE:
A. THE DEPARTMENT OF TOURISM
OT)AND II3ATTACHEDAGENCES,
AND THE PARTIDO DEVELOPMENT
ADMINISTRATION (PDA) SHALL
COORDINAE IN TIIE FORMUL4TION
OF ATOURISM DEVELOPMENTPLAN
FOR THE TOURISM ZONE: PROVIDED,
THAT SAID PLAN IS CONSISTENT 4-
1464

B. THE PLAN SHALL PROTECT AND
TOURISM ZONE, WHILE PROVIDING SUSTAINABLE ECONOMIC
OPPORTUNITIES FOR THE LOCAL
c o m n .
C. THE PDA AND THE RELEVANT
MUNICIPALITIES SHALL UTILIZE
THEIR POWERS PROVIDED UNDER
R.A. 7820, AS AMENDED, AND THE
LOCAL GOVERNMENT CODE, RESPECTIVELY, TO IMPLEMENT AND
ENFORCE THE TOURISM DEVELOPMENT PLAN.
D. THE DOT AND ITS ATTACHED
AGENCIES, MAY PROVIDE NECESSARY TECHNICALAND FINANCIAL
ASSISTANCE
..--.-~ FOR THE DEVELOPMENT OF TOURISM INFRASTRUCTURE AND SKILLS DEVELOPMENTIN
THE LOCAL GOVERNMENT WHILE
ENDEAVORING, WHEN PRACTICABLE,TO PROMOTE THE TOURISM
ZONES BOTH LOCALLY AND
INTERNATIONALLY.
E THE DOT, THE PDA, AND THE
RELEVANT MUNICIPALITIES SHALL
CREATE A FORUM BY WHICH THE
PRIVATE SECTOR, NONGOVERNMENT ORGANIZATIONSAND OTHER
INTEREST GROUPS, CAN INTERACT
WITH ONE ANOTHER AND THE
GOVERNMENT TO CREATE AN
ATMOSPHERE THAT SHALL
ENCOURAGE I"T
AND
, THE
DEVELOPMENT OF A CULTURE OF
TOURISM.;
4. On page 2, delete Section 3 and renumber the
~
succeeding sections accordingly; and

5.

4 and Section 5, and in lieu thereof, insert the
new sections which shall read as follows:

TOURISM, IN CONSULTATIONWITH THE
PDA SHALL ADOPT APPROPRIATE
RULES AND REGULATIONS, AND ENTER
INTO AGREEMENIS TO IMPLEMENTTHIS
ACT.
House Bill No. 2072

(Committee Report No. 236)
I.
Delete Sections I , 2, 3,4,Sand 6 and in lieu

thereof, insert new Sections 1, 2, 3 and 4
which shall read as follows:
SECTION I . THIS ACT HEREBY

DECLARES THE PROVlNCE OF BOHOL AS
A NATIONAL TOURISM ZONE.
ADOPTED,THE FOLLOWING PRINCIPLES
MANAGEMENTOF THIS TOURISM ZONE:
A. THE DEPARTMENT OF TOURISM
WT)AND ITS ATTACHED AGENCLES,
AND THE PROVINCIAL GOVERNMENT OF BOHOL AND THE CITY
GOVERNMENT OF TAGBILARAN
SHALL COORDINATE IN THE
FORMULATION OF A TOURISM
DEVELOPMENT PLAN FOR THE
TOURISM ZONE: PROVIDED, THAT
SAID PLAN IS CONSISTENT WITH,
OR MAY BE INTEGRATED INTO, THE
NATIONAL TOURISM MASTER PLAN
OF THE DOT.
B. THE PLAN SHALL PROTECT AND
TOURISM ZONE, WHILE PROVIDING SUSTAINABLE ECONOMIC
OPPORTUNITIES FOR THE LOCAL
COMMUNITY.
C. THE PROVINCIAL GOVERNMENT OF
BOHOL AND THE CITY GOVERNMENT OF TAGBILARAN SHALL
UTILIZE ITS POWERS PROVIDED
UNDER THE LOCAL GOVERNMENT
CODETO IMPLEMENTAND ENFORCE
THE TOURISM DEVELOPMENT
PLAN.
D. THE DOT AND ITS ATTACHED

AGENCIES MAY PROVIDE NECESSARY TECHNICAL AND FINANCIAL
ASSISTANCE FOR THE DEVELOPMENT OF TOURISM INFRASTRUCTURE AND SKILLS DEVELOPMENT IN
THE PROVINCE OF BOHOL WHILE
ENDEAVORING, WHEN PRACTICABLE, TO PROMOTE THE TOURISM
ZONE BOTH LOCALLY AND
INTERNATONALLY.
1465
E THE DOT, THE PROVINCIALGOVERN

MENT OF BOHOL AND THE CITY
GOVERNMENT OF TAGBILARAN
SHALL CREATE A FORUM BY
WHICH THE PRIVATE SECTOR,
NONGOVERNMENT ORGANIZATIONS AND OTHER INTEREST
GROUPS, CAN INTERACT WITH ONE
ANOTHER AND THE GOVERNMENT
TO CREATE AN ATMOSPHERE
THAT SHALL ENCOURAGE INVESTMENT, AND THE DEVELOPMENT
OF A CULTURE OF TOURISM,
PROVINCIAL GOVERNMENT OF BOHOL
AND THE CITY GOVERNMENT OF
TAGBILARAN SHALL ADOPT APPROPRIATE RULES AND REGULATIONS, AND
ENTER INTO AGREEMENTS TO IMPLEMENT THIS ACT.
COMPLETIONOF ITS PUBLICATION.
APPROVAL OF
COMMITTEE AMENDMENTS
no objection, the Body approved the committee amendments to House Bill No. 591; House Bill No. 786;
House Bill No. 574; and House Bill No. 2072.

OF COMMITTEE AMENDMENTS
no objection, the Body closed the period of committee
amendments and proceeded to the period of individual
amendments.

OF INDIVIDUAL AMENDMENTS
There being no individual amendment, upon
the Body closed the period of individual amendments.
APPROVAL OF HOUSE BILL NOS. 591, 786,

574, AND 2072 ON SECOND READING
Submitted to vote, and there being no objection,
House Bill Nos. 591, 786, 574 and 2072 were
approved on Second Reading, one after the other.
OF HOUSE BILL NOS. 591, 186, 574
AND 2072
the hills.
was suspended.
It was 6:lO p.m.
At 6:17 p,m., the session was resumed.

(Continuation)
Second Reading, of Senate Bill No. 2233 (Committee
Report No. 60), entitled
AN ACT ESTABLISHING A PROVIDENT PERSONAL SAVINGS PLAN,
KNOWN AS THE PERSONAL
EQUITY
AND
RETIREMENT
ACCOUNT (PERA).
Senator Cayetano stated that the parliamentary
The Chair recognized Senator Angara, Sponsor
of the measure, and Senator Enrile for his
interpellation.
INTERPELLATION OF SENATOR ENRILE

Asked by Senator Enrile on the purpose and
mechanics of the bill, Senator Angara explained that
the Personal Equity Retirement Account (PERA) is
a voluntary retirement scheme, supplementary and
complementary to the existing retirement benefit that
is mandatory, under the S S S for private employees,
and GSIS for government employees.
Senator Angara said that under the PERA
scheme, the Filipino taxpayers are enjoined to s e t K
1466
aside up to P50,OOO a year to a retirement fund

which he could draw at age 55. He stated that
among the attractions to setting aside part of the
taxpayers income are: initial five percent (5%)
credit by contributing the amount; assistance of a
professional trust manager in investing; tax-free
earnings of the fund; and tax-free privilege when he
withdraws his savings upon reaching age 5 5 . Thus,
he said, the taxpayers savings could grow
exponentially over the period of his holding.
Senator Enrile asked why non-taxpayers, who
might have the financial capability to join the fund,
would be excluded from availing themselves of the
voluntary pension scheme which is a form of capital
mobilization as it could generate savings that could be
utilized for investments to encourage the creation
of new industries. Senator Angara agreed to expand
the coverage as he pointed out that the measure
would help expand the capital market which consists
of the equities market and the bond market where,
under the specific guidelines set forth in the bill, the
savings accumulated under the voluntary fund are
required to be exclusively invested, thus, opening up
other avenues of financing to new industries that
otherwise would have no opportunity to be financed,
since 95% of the enterprises in the country are
financed through banks.
Asked if working minors could be a member of
the fund, Senator Angara said that if the minor is a
working Filipino, then he is qualified and eligible to
set up his own fund.
Senator Enrile asked why the measure should be
limited to working Filipinos and exclude people who,
for instance, earned money from games or contests
rather than from gainful employment. Senator Angara
clarified that the law intends to capture recurring and
continuing sources of capital, and proceeds from
one-time winning would not fit into the recurring
income category.
As regards the inclusion of all types of income in

the fund, Senator Angara said that the savings plans
cannot cover a bequest or donation to a minor
beneficiary who, in turn, would set up the fund.
Senator Enrile expressed the view that if the idea
is to create a savings scheme to pool idle money in
the hands of the population to build a capital pool
to be used in creating jobs, there is no reason to
deny participation in the plan to those with financial
capability. Senator Angara said that the Committee

would be sympathetic to expanding the coverage by
including even one-time non-recurrent winnings.
On whether ail individual member could still
continue the scheme beyond the age of 55, Senator
Angara replied that a member may opt to withdraw
the savings in one-time lump sum provided he has
stayed in the fund for at least five years or he could
even continue the account and simply withdraw a
fixed amount for emergency needs.
Asked what would happen to the initial contribution

of a member who has failed to place the amount of
P50,OOO within a year, Senator Angara replied that
P50,OOO is the maximum amount that an individual
could place in the fund in a year; a member may
opt to place the money by installment or make
a one-time placement of P50,OOO within the year,
and another P50,OOO could be placed for the
second year.
On whether a financially capable individual could
open five simultaneous PERA accounts, Senator
Angara replied that the member could do so provided
that there is only one administrator for these accounts.
On whether a financially capable individual

who owns five PERA accounts would be allowed
to open five PERA accounts for each of hidher
children, Senator Angara replied in the negative,
saying that these are tax-free savings that would put
a great drain on the National Treasury. However,
he affirmed that a member would be allowed to
open one account for himself and one each for his
four children.
He clarified that the ceiling of five accounts is
applicable to a couple regardless of the members
income capacity. He said that the Committee had,
in fact, a hard time convincing the Department of
Finance to allow the savings plan.
On the assertion that the scheme would favor
the rich over the poor, Senator Angara stated that
the opportunity for a low-income individual to open
even one account is benefit enough because he
would be able to build up a retirement nest.
Senator Enrile agreed that in terms of retirement benefits, the PERA would be favorable to
the members but from the point of view of the
government, it would be more of a burden b e c a u s e p
a rich person with P250,OOO could easily open five

accounts, each of which would he entitled to 5%
credit. Senator Angara explained that the five PERA
accounts should total to P50,OOO.
1 A67
funds trustees, managers or administrators could

go under.
As to the cash surrender value of the amount of

P50,OOO which was placed by the member at the age
of 20, Senator Angara replied that the value would
he P50,OOO multiplied by 35 years plus the
compounded interest.
Considering that the contributions are considered

a deposit in an investment house or mutual fund,
Senator Enrile suggested that the accounts be
considered hank deposits insured with the Philippine
Deposit Insurance Corporation (PDIC). Senator
Angara clarified that the fund is not treated as a
deposit; therefore, it cannot he covered by the PDIC.
As regards the rate of interest, Senator Angara

explained that since the equities and bonds are
considered good bonds, it could have a yield of 9%
and if compounded for 35 years, it could build a very
good retirement package for the future.
On whether the PDIC system could be amended

to include the PERA under its coverage, Senator
Angara said that the matter would be studied after
the PERA has been launched and has gained
credibility and security.
On the expected yearly rate of interest of

the fund over the expected time, Senator Angara
replied that the rule of thumb is that a money held
for five years in the scheme could be doubled,
making it very attractive for those who would retire
at the age of 55 but could still pursue another
profession.
As regards the 50% tax credit scheme, Senator

Angara explained that the tax credit would he based
on the amount of the investors contribution: for
instance, a contributor with a P50,OOO investment
would have a tax credit of P2,500 which he could
apply against his income tax liability.
Asked how the money would be returned to the

owner, Senator Angara replied that the owner may
choose to get it either lump sum or by way of
pension annuity.
As to what would happen to the savings of an
individual who dies before the five-year requirement,
Senator Angara replied that the heirs could
immediately withdraw the money, less the fees and
other overhead expenses.
With respect to the administrator of the fund,
Senator Angara stated that it could either he an
independent trust company or an accredited account
manager.
Asked whether the hill has safeguards to protect
the contributors investments from irresponsible
administrators or from losses and bankruptcy such
as those experienced by some pre-need plans,
Senator Angara explained that equities or bonds are
all accredited and guaranteed by the issuer. Moreover,
he said that unlike certain mutual funds which are
invested with little transparency, there would be a
listing of the shares and bonds acquired through
the PERA by, for instance, the Central Bank,
the Insurance Commission and the SEC. However,
he did not discount the possibility that any of the
Senator Enrile pointed out that the scheme

is only beneficial to people who have taxable
income and are capable of investing P50,OOO surplus
income hut not in the case of ordinary workers.
Senator Angara said that while an ordinary worker
might not he able to set aside the maximum
P50,OOO investment, the bill aims to afford OFWs
an excellent opportunity to set aside savings
particularly since most of them are not covered
by the SSS and are unable to save money since
the hulk of their remittance goes to family needs.
He said that individual, and small-and mediumsize entrepreneurs also stand to benefit from the
scheme by putting their excess income into a
retirement fund.
As for the seemingly discriminatory nature of the
hill considering that an individual who has invested
P10,OOO cannot make use of the 5% tax credit as
opposed to another who has put in P50,000, Senator
Angara said that there is equality among individuals
as far as taxes are concerned.

OF INTERPELLATIONS
There being no further interpellation,upon motion
of Senator Pangilinan, there being no objection, the
Body closed the period of interpellations.w
1468
Upon motion of Senator Pangilinan, the session

was suspended.

was suspended.
It wns 7 4 1 p.m.
At 7:02 p.m., the session was resumed with
Senate President Pro Tempore Flavier presiding.
It wns 745 p.m
COMMITTEE AMENDMENTS
OF SENATE BILL NO. 2233
As proposed by Senator Angara, there being no

objection, the following Committee amendments were
approved by the Body, one after the other:
Upon motion of Senator Pangilinan, there being no

objection, the Body suspended consideration of the bill.
1.
On page 9, line 3, after the wordcirculation,

insert the phrase PROVIDED, THAT THE
TAX INCENTNES GRANTED H E X E W E R

SHALLTAKEEFFECTON laJANUARY 2009;
Senator Angara stated that the DOF had

requested that there be a transition period because of
the potential revenue loss as a result of the tax
waivers and relief. He added that the DOF bas
calculated that by 2008, the government could manage
to balance the budget and afford the temporary
revenue loss which shall later on be recouped by an
expanded tax base and a more vigorous economy.
2.
On the title of the bill, change 2005 to 2007

OF AMENDMENTS
There being no other committee or individual
amendment, upon niotion of Senator Pangilinan, there
being no objection, the Body closed the period of
committee amendments and proceeded to the period
of individual amendments.

There being no individual amendment, upon motion
Body closed the period of individual amendments.

(Continuation)
Upon motion of Senator Pangilinan, there being

Report No. 35), entitled
AN ACT DECLARING A NATIONAL
POLICY FOR TOURISM AS THE
PRIMARY ENGINE OF INVESTMENT, EMPLOYMENT, GROWTH
AND NATIONAL DEVELOPMENT,
R E O R G A G THE DEPARTMENT
OF TOURISM AND ITS ATTACHED
AGENCIES TO EFFECTIVELY AND
EFFICIENTLY IMPLEMENT THAT
POLICY, PROVIDING NECESSARY
INCENTIVES FOR INVESTMENT
AND APPROPRIATING FUNDS
THEREFOR.
Senator Pangilinan stated that the parliamentary
status was the period of individual amendments.
Thereupon, the Chair recognized Senator Gordon,
Sponsor of the measure, and Senator Drilon for his
amendments.
APPROVAL OF SENATE BILL NO. 2233
ON SECOND READING
Submitted to a vote and there being no objection,
Senate Bill No. 2233 was approved on Second Reading.

was suspended.
It was 7:06 p.m.
1469
Asked by Senator Drilon whether the sales of

locally manufactured merchandise to the duty-free
shops are VAT-free, Senator Recto replied that
every domestic sale is subject to VAT.
REQUEST OF SENATOR PIMENTEL

5.
Senator Pimentel requested that the Members

be provided with copies of the January 22, 2007
version of the bill, which shall he used as working
draft.
Upon motion of Senator Drilon, the session was
suspended.
It was 7:09 p.m.
At 7: 17 pm., the session was resumed.
DRILON AMENDMENTS
As proposed by Senator Drilon and accepted
by the Sponsor, there being no objection, the Body
approved the following amendments, one after the
other:
1. On page 13, delete lines 15 to 17, and in lieu
thereof, insert the following: THE DUTY
FREE PHILIPPINES CORPORATION AND
THE OPERATION OF THE DUTY-FREE
STORES AND SHOPS SHALL ALWAYS
REMAlN IN GOVERNMENT CONTROL
AND SHALL NOT BE BIDDED OUT TO
PRIVATE PARTIES.;
2. On the same page, line 18, before the word
Such, insert the following: EXCEPT AS
PROVIDED FOR IN REPUBLIC ACT
NO. 6768, AS AMENDED (AN ACT INSTITUTING A BALIKBAYAN PROGRAM),
SUCH MERCHANDISE, GOODS AND
ARTICLES SHALL BE SOLD ONLY
TO DEPARTING PERSONS FOR THEIR
CONSUMPTION ABROAD,
3. On the same page, lines 22 and 23, delete the
phrase foreign tourists for consumption
within a tourism zone, or to, and on line 24,
after the period (.), delete the rest of the

paragraph up to line 27;
4.
On page 14, delete the comma (,) on line 19

and the subsequent phrase up to line 21;
and
On the same page, delete lines 22 and 23
He said that he does not think that any significant

inventory of the Duty Free Philippines would he
locally manufactured merchandise and this would
only pose difficulties to revenue collection efforts.
Upon motion of Senator Gordon, the session was
suspended.
It was 7:27 p.m.
Upon query, Senator Gordon stated that the book
value of the PTA assets is P I 2 billion. He disclosed
that the PTA is basically a losing proposition because
practically all its assets are losing, except the Tagaytay
Peoples Park which is being rented from Tagaytay
government and makes P17 million, and Club
Intramuros which makes P1.4million from its golf
course. He cited the following losses: Balicasag
Island Dive Resorts, P2.9 million; Banawe Youth
Hostel, P4.4 million; Boracay Water Sewerage
System, P7.9 million; Cebu Complex, P2.7 million;
The Gardens of Eco-Malasag, P2.7 million; Hilaga,
P10.7 million; McArthur Beach Resort, P3.6 million;
Mt. Data, P1.9 million, which was eventually
closed down; and San Fabian PTA Beach Resort,
P3.1 million. He stated that the Zamhoanga complex,
which the government tried to lease out to the
Koreans, is losing P3.8 million. He concluded that
the total losses amount to P25,078,000.
Asked on the full amount of the travel taxes net
of proceeds for the National Commission on Culture
and the Atts, Senator Gordon replied that it is about
P1.35 billion; however, he noted that this provision is
a caveat because of an agreement between ASEAN
countries to remove the restrictions on travel taxes.
Adverting to Section 51(d), Senator Drilon noted
that 50% of the net income of Duty Free Philippines,
in lieu of its statutory remittance to the government
under Republic Act No. 7656, shall be placed in a
1470
special Tourism Promotion and Development Fund.

Asked on the estimated amount for the Fund, Senator
Gordon replied that it is about P325 million since
Duty Free Philippines has been making P650 million
yearly. With regard to Section 5(e), he said that it is
approximately P260 million or 25% of Pagcor's net
income of P1.1 billion. But Senator Drilon pointed out
that the 25% of the P1.25 billion, supposedly the net
income of PAGCOR, is about P3 billion.
suspended.
It was 7.36 p.m.
Senator Gordon informed the Body that he was
trying to get a copy of the Department of Finance
memorandum stating that the 25% is net of what
Pagcor gives to other agencies. He said that he would
furnish Senator Drilon with a copy of the document.
Asked how much the 25% of the net income of
international airports and seaports would be, Senator
Gordon replied that NAIA earned about P870 million
in 2004; Mactan-Cebu International Airport Authority,
P700 million; and Diosdado Macapagal International
Airport, P170 million. Senator Drilon observed that
under the provisions, the Fund could reach between
P4 billion and P8 billion depending on how the
Pagcor income is determined, as well as the income
from the international airports. Senator Gordon agreed,
adding that translated into dollars, it is about $166
million, 45% of which should go to promotions and
marketing.
Senator Drilon commended Senator Gordon for
allocating said amounts for marketing and promotions
because, apparently, the PTA appropriation is like a
little pork barrel of the tourism secretary.
At this juncture, Senator Gordon informed the
Body that ofthe P12.5 billion government share from
Pagcor in 2006, the net income was P1.6 billion upon
which the 25% or P400 million share was computed,
and said amount would go to the Tourism Promotion
and Development Fund, 45% of which, in turn, would
go to the tourism promotions and marketing.
Senator Drilon posited that two funds are sought

to be created - the Tourism Promotion and
Development Trust, under Section 50, and the Tourism
Promotion and Development Fund, under Section 51,
that would consist of the investment earnings from
the Trust; travel taxes, PI .35 billion; an appropriation
from the General Appropriations Act, P0.5 million;
50% of the net income from the Duty Free Philippines;
25% of the net income of Pagcor; and 25% of the
net income from international airpofi and seaports.
The various revenues, he added, would amount to
P4 billion.
As regards the DOT allocation from the PTA's
income, Senator Gordon stated that the PTA has not
given anything to the department which is a departure
from the original intent of the PTA, the concept of
which is sought to be changed.
Senator Drilon noted that whenever the
Committee on Finance looks at the DOT budget, it
looks at less than one-half of a budget because more
than the other half goes to the PTA.
Senator Gordon stated that the PTA's earning is
actually used as the pork barrel of previous presidents
to build everything from basketball courts to parks
but not to develop tourism. The P4 billion, he said, is
small compared to the tourism budget of Singapore,
Malaysia or Hong Kong.
On whether there are models of tourism economic

zones that could be looked into, Senator Gordon
stated that Subic and Clark could be used as examples.
However, Senator Drilon stated that Subic and Clark
are enclosed manufacturing hubs. He agreed that
they are really PEZAs of tourism that would enjoy
the incentives under Section 76 of the proposed Act.
Asked if it would be possible for Ayala Avenue
to qualify as a TEZ under Section 53, Senator
Gordon replied that in theory, Ayala could apply to
be part of the incentives program under the TEZA
which is categorized into: 1) the greenfield areas those that have not been developed; have strategic
locations like Palawan Islands or Bohol to catalyze
socioeconomic development in neighboring communities; and 2) the brownfield areas - those that are
developed but need infusion of investments like Roxas
Boulevard and Chinatown.
On whether the TEZA would issue permits and

licenses for the regulation of commercial activities +c
1471
within the Binondo or Chinatown TEZ, Senator Gordon

stated that it would be within the jurisdiction of the
local government units, unless it is a greenfield area
which is totally new. However, Senator Drilon pointed
out that under Section 58, the TEZA has the sole and
exclusive jurisdiction to issue permits and licenses,
among others, within the zone.
suspended.
It was 7 : s p.
1.
On page 27, delete the words and approval

on lines 30 and 31;
Asked if an agricultural land could be made

part of a zone and exempted from CARL, Senator
Gordon replied that, precisely, the measure provides
the adoption of the necessary rules and regulations
so that the TEZA, in coordinatjon with the DAR,
could implement the provision on lines 25 to 30 of
page 26.
Senator Drilon suggested the recrafting of said
lines to clearly reflect the intent of the provision so
that the authority to convert an agricultural land
identified by the TEZA could he transferred from
the DAR to the TEZA. Senator Gordon agreed to
the suggestion.
At 8:OO p.m., the session was resumed.

Senator Gordon stated that Section 56 states
that, Except as herein provided, the local government
units which comprise, overlap, embrace, or include
a zone in their territorial jurisdictions, shall retain
their basic autonomy and identity in accordance with
Republic Act No. 7160, otherwise known as the
Local Government Code of 1991. He said that the
same provision applies to all PEZAs.
Senator Drilon pointed out that the exception is in
the mandate of the TEZA in Section 58 which also
states, Supervisory jurisdiction over all tourism
entaprises outside the zones shall be shared between
the local government units and the department under
Subchapter 11-C of this Act. He opined that the
term supervisory jurisdiction is vague, suggesting
the need to delineate the jurisdiction between LGUs
and TEZA. He added that Subchapter 11-C has no
relation to Section 58. Senator Gordon clarified that
it should read Subchapter 11-E.
Upon query, Senator Gordon affirmed that
investments in tourism enterprises outside of the TEZ
would be supervised by BO1 or PEZA, but the DOT
should be informed about the construction of new
hotels.
Senator Drilon said that DOT should be notified,
but it is the LGUs that approve applications to put up
hotels.
As proposed by Senator Drilon and accepted by
the Sponsor, there being no objection, the Body
approved the following amendments:
Senator Drilon said that the moment the Act

declares the land exempt from the coverage of the
CARL, no rule or regulation could change it. He
asked the technical staff to also clarify the mandate
of the TEZA vis-A-vis the powers of the local
government, particularly in relation to Section 58.
Adverting to Section 63(c), Senator Drilon asked
if the loans contracted by the TEZA would carry a
government guaranty for repayment. Senator Gordon
said that it is possible under such terms and conditions
prescribed by law, rules and regulations, and upon
recommendation of the DOF.
On whether the TEZA would issue franchises to

transportation companies operating in the zone,
Senator Gordon replied that the bill contemplates a
greenfield area, an island, for instance, that has no
power system, so the TEZA would have to put up a
power plant, as the Maldives has done on its islands.
Senator Drilon pointed out that the powers
granted under the bill are so broad and without limit
that some unscrupulous TEZA head could invoke
them and require all public utilities to secure their
franchises from the zone authority. Senator Gordon
gave assurance that the technical staff would make
the necessary clarifications in the bill.
Asked if a locator in a TEZ need not be
a tourism enterprise, Senator Gordon replied in
the negative, stating that the locator would not
be entitled to the incentives granted by the zone
authority. To the observation that there is no provision in the bill to this effect, Senator Gordon said 4-
1472
that it would be included in the RR.Senator Drilon

argued, however, that rules and regulations cannot
go beyond the language of the law, otherwise, nothing
would stop the rule-makers from interpreting the
law in accordance with what they think is the policy
of Congress.
2.
On page 33, line 28, between the words

registered and enterprises, insert the
word TOURISM
3.
On page 30, line 2, change Section 77 to

SECTION 16.
As regards the powers of the TEZA, unless the

provision is very critical, Senator Drilon proposed the
deletion of the power of the TEZA to demolish
houses as provided for in Section 64(f).
Senator Gordon explained that said power was
lifted from the PEZA law and was really meant to
give as much leeway to the TEZA to operate on a
clean slate. He said that this shall address the
problem brought about by houses built along the
seashores and canals, and houses, buildings and
structures constructed without the necessary permit.
He added that the demolition would he subject to
expropriation procedures so as not to violate the
rights of the owners.
Asked what kind of permit the owners of the
buildings in a Binondo TEZ would have to secure,
Senator Gordon said that he would ask the technical
committee to craft a better provision. Nonetheless,
he stated that the intention is to enable the local
government units to grant incentives to developers
to redevelop certain areas, keeping in mind the
U S . models.
4. On page 3 1, line 20, delete the words starting
with the article The up to the period (.) on
line 24.
Senator Drilon explained that under the Rules
of Court, only the Secretary of Justice and the judge
in the appropriate cases exercise the power to grant
immunity from prosecution to any person whose
testimony is necessary. Senator Gordon explained
that the PEZA law also has the same provision and
the only reason it was included in the bill is to enable
the TEZA to expose and curb smuggling and other
venalities within the zone.
On Section 69 (Administration of Zones),

Senator Drilon asked whether the zone operator is
envisioned only as a corporate entity to administer

the tax incentives for the importation of goods and
services. Senator Gordon clarified that it would be
totally administered by the TEZA and not by the
zone operator.
Senator Drilon pointed out that Section 75
provides that the TEZA shall have the sole and
exclusive jurisdiction to grant the incentives and
administer the same through the zone operators. He
expressed concern that the zone operator could be a
private corporation with administering powers, which
could not be held liable for graft. Senator Gordon
said that the provision would be deleted t o ensure
that the TEZA would be the only one to provide
the incentives.
With respect to Section 73 (Civil Dispute
Resolution), Senator Drilon inquired whether one of
two conflicting registered enterprises in the zone
could go to court and ask for a temporary restraining
order to prevent any damage. Senator Gordon said
that the idea is for the conflicting parties, particularly
tourists, to go into mediation proceedings immediately.
He stated that he would ask the technical staff to
clarify the provision further.
Asked whether Section 74 (Labor Dispute
Resolution) intends to remove the function of the
Department of Labor and Employment (DOLE) to
resolve disputes as far as the companies in the zones
are concerned, Senator Gordon replied in the negative, saying that mediation offices are encouraged to
coordinate with the DOLE. He said that the objective
is to fast-track the establishment of enterprises and
make them more competitive, and ensure industrial
peace in the zones to make them more attractive to
investors.
On whether the imposition of a strike ban on

employees within five years from the registration of
the enterprise could stand constitutional scrutiny,
Senator Gordon replied that according to Father
Bemas, in his book, the right to strike was first
recognized as statutory authority in 1953 with the
enactment of the Industrial Peace Act of 1953 but
it is qualified by the phrase in accordance with law
x x x the constitutional provision does not invalidate
the existing laws on the snhject and does not
prohibit the enactment of reasonable laws which
might diminish the right to strike
However, he
expressed willingness to accept an amendment to
remove said provision.
....
4P
1473
5.
On pages 32 and 33, delete Section 74;
Senator Gordon asked whether the provision on

the creation of special labor dispute resolution offices
could be retained. Senator Drilon pointed out that the
National Conciliation and Mediation Board (NCMB)
under the DOLE has a nationwide network. He
believed that creating such offices within the zones
would duplicate the functions of the NCMB and
further bloat the bureaucracy. Senator Gordon recalled
that the labor dispute offices that were set up in the
SBMA worked very well and hardly encountered
problems.
6. On page 33, line 9, after the word provided
and the period (,), delete the rest of the
sentence;
To the observation that under Section 76(b), the
new enterprise shall only he imposed a 3% tax on its
gross income, Senator Gordon stated that according
to the McKenzie study, it takes six years for a
tourism enterprise like a hotel to make money and
that the incentives would attract new investments in
the tourism industry.
argued that the incentives would open new opportunities and the zone administrator is there precisely
to ensure that the enterprises follow the procedures.
He added that there is also a congressional oversight
committee to report any malfeasance or misfeasance
to Congress.
Asked whether the PAL or Cebu Pacific office
in a Binondo TEZ that imports equipment for the
expansion of the airline could avail of the tax holiday
for twelve years, Senator Gordon stated that these
airlines have their own privileges under their charters.
He believed that an airline could buy a new aircraft
and avail of the incentive. He stated that PAL, for
instance, should he able reclaim the incentives it once
enjoyed when it was run by the government.
To the observation that not even an enterprise
in the PEZA enjoys 3% tax on gross income, Senator
Gordon stated that he would he amenable to a sunset
provision that after six years, the 3% tax shall he
increased to 5%, the same tax a PEZA enterprise
pays. He stated that the incentive could widen the
tax base as new enterprises would he set up employing
more people.
Senator Drilon stated that a 12-year tax holiday

for hotels and transport companies is justified because
of the magnitude of the investments hut not for
enterprises that the tourism secretary may identify
which could he convention organizers or tourist estate
management services. In reaction, Senator Gordon
admitted that the Committee tried to he liberal,
hence, it included small- and medium-enterprises
involved in hotel, shipping and air travel, among
others, so as to encourage local and foreign
investments in places like Palawan or Bohol. He
recalled that Malaysia could not compete with China
in the area of manufacturing, so it poured money into
tourism promotion and incentives and offered new
destinations like Lankawi.
As regards another incentive, Senator Drilon

argued that the accelerated depreciation provision is
not needed in a gross income tax regime. Senator
Gordon pointed out that the incentives were put in
the bill to attract investors in the tourism industry.
Saying that he agreed with the thrust of the

provision, Senator Drilon cautioned, however, that
the incentives should he availed of by the wellintentioned tourism investors and not by pseudotourism enterprises. He stated that he would leave
the issue of the validity of the length of the tax
holiday to the experts in the field.
Asked whether the DOF has vetted the implication of the provision on revenue collection, Senator
Gordon replied that the DOF has never supported
incentives, not even those proposed in the hill. He
suspended.
It was 9.95 p.m


SECOND ADDITIONAL
referrals:
-F-
1474
MESSAGE OF THE PRESIDENT

OF THE PHILIPPINES
Letter of Her Excellency, President Gloria
Macapagal Arroyo, dated 6 February 2007,
certifying to the necessity of the immediate
enactment of House Bill No. 5859, entitled
AN
ACT PROVIDING FOR THE

APPORTIONMENT OF THE LONE
LEGISLATIVE DISTRICT OF THE
CITY OF CAGAYAN DE ORO,

urgent need to provide immediate and effective
representation to the people of Cagayan de Or0
City in the face of phenomenal growth in its
population, as well as to ensure speedy delivery
of basic services to its inhabitants, pursuant to
the provisions of Article VI, Section 26(2) of the
1987 Constitution.

MESSAGE FROM THE HOUSE
OF REPRESENTATIVES
February 6, 2007, the House of Representatives
approved the Bicameral Conference Committee
Report on the disagreeing provisions of House
Bill No. 5956, entitled
AN ACT TO STRENGTHEN THE OFFICE
OF THE SOLICITOR GENERAL BY
EXPANDING AND STREAMLINING
ITS BUREAUCRACY, UPGRADING
EMPLOYEE SKILLSAND AUGMENTING BENEFITS AND APPROPRIATING FUNDS THEREFOR AND FOR
OTHER PURPOSES,
AN ACT TO STRENGTHEN THE OFFICE
OF THE SOLICITOR GENERAL BY
EXPANDING AND STREAMLINING
ITS BUREAUCRACY, UPGRADING
EMPLOYEE SKILLS AND AUGMENTING BENEFITS, AND APPROPRIATING FUNDS THEREFOR AND FOR
OTHER PURPOSES.
To the Archives
COMMUNICATION
Letter from Executive Secretary Eduardo R . Ermita
of the Office of the President of the Philippines,
transmitting to the Senate the letter of Her
Excellency, President Gloria Macapagal
Arroyo, dated 6 February 2007, addressed to
Speaker Jose C. De Venecia Jr. of the House
of Representatives, certifying to the necessity
of the immediate enactment of House Bill
No. 6073, entitled
AN ACT GOVERNING THE ESTABLISHMENT, OPERATION A N D
REGULATION
OF
LENDING
COMPANIES,
pursuant to the provisions of Article VI,
Section 26(2) of the 1987 Constitution.

THIRD ADDITIONAL
RESOLUTION
Proposed Senate Resolution No. 618, entitled
RESOLUTION DIRECTING THE SENATE
COMMITTEE ON FINANCE T O
CONDUCT AN INQUIRY, IN AID
OF LEGISLATION, INTO THE COMPROMISE AGREEMENT ENTERED
INTO BY THE PHILIPPINE NATIONAL
CONSTRUCTION CORPORATION
(PNCC) WITH RADSTOCK SECURITIES LIMITED, FOR THE PURPOSE
OF PROVIDING REMEDIAL LEGISLATION AND POLICY PARAMETERS
ON COMTROMEE AGREEMENTS TO
PROTECT GOVERNMENT ASSETS
AND ENSURE THE JUDICIOUS USE
OF GOVERNMENT FUNDS
Introduced by Senator Drilon
To the Committee on Finance

COMMITTEE REPORTS
Committees on Public Information and Mass Media; &-
1475
WEDNESDAY, FEBRUARY 7, zoo7
and Justice and Human Rights, on Senate Bill

No. 1120, introduced by Senator Pimentel Jr.,
entitled
AN ACT GRANTING THE RIGHT OF
REPLY AND PROVIDING PENALTIES FOR VIOLATION THEREOF,

Committee on Local Government, on House
Bill No. 6029, introduced by Representative
De Guzman, entitled
AN ACT CREATING A BARANGAY
TO BE KNOWN AS BARANGAY
FORTUNE IN T H E CITY OF
MARIKINA, METRO MANILA,
INTO A COMPONENT CITY T O
BE KNOWN AS THE CITY O F

GUIHULNGAN,
recommending its approval with amendments.
Sponsor: Senator Lim

Committee on Local Government, on House Bill
No. 6023, introduced by Representative Almario,
entitled
AN ACT CONVERTING THE MUNICIPALITY OF MATI IN THE PROVINCE
OF DAVAO ORIENTAL INTO A
AS THE CITY OF MATI,
recommending its approval with amendments

No. 6028, introduced by Representative De
Guzmau, entitled
AN ACT CREATING A BARANGAY TO
BE KNOWN AS BARANGAY
TUMANA IN THE CITY OF
MARIKJNA, METRO MANILA,

Committees on Health and Demography; and
Finance, on House Bill No. 1352, introduced by
Representatives De Guzman and Magsaysay
(E), entitled
AN A C T INCREASING THE BED
CAPACITY OF THE AMANG
RODRIGUEZ MEMORIAL MEDICAL
CENTER FROM ONE HUNDRED
FIFTY (150) TO THREE HUNDRED
(300) BEDS AND APPROPRIATING
FUNDS THEREFOR,

Sponsor: Senator Cornpailera Pia S. Cayetano

No. 6024, introduced by Representative Paras,
entitled
FOURTH ADDITIONAL
COMMITTEE REPORT
AN ACT CONVERTING THE MUNICIPALITY OF GUIHULNGAN IN THE

PROVINCE OF NEGROS ORIENTAL

Committees on Education, Arts and Culture&-
1476
(Subcommittee on Basic and Higher Education

and Culture); and Finance, on House Bill
No. 5977, introduced by Representative Nantes,
et GI., entitled
AN ACT CONVERTING THE SOUTHERN

LUZON POLYTECHNIC COLLEGE
IN THE MUNICIPALITY OF
LUCBAN, PROVINCE OF QUEZON,
ITS UNITS AND SATELLITE
CAMPUSES IN THE MUNICIPALITIES OF SAMPALOC, INFANTA,
POLLLO, TAGKAWAYAN, ALABAT
AND TIAONG, AND THE LUCENA
DUAL-TECH LlVELIHOOD AND
TRAINING CENTER IN THE CITY
OF LUCENA, ALL IN THE PROVINCE
OF QUEZON, INTO A STATE
UNIVERSITY TO BE KNOWN AS
THE SOUTHERN LUZON STATE
UNIVERSITY (SLSU) AND APPROPRIATING FUNDS THEREFOR,
incoming generation against the killer-disease

Hepatitis-B by mandating the immunization of all
newborn infants immediately within twenty-four
(24) hours after birth but not later than seven
days, consistent with the constitutional mandate
of enhancing the health and well-being of our
people;
AN ACT ESTABLISHING A PROVIDENT PERSONAL SAVINGS PLAN,
EQUITY
AND
RETIREMENT
ACCOUNT (PERA),
to address the urgent need to promote our

peoples welfare by providing them opportunities
to save for old age, as well as to mobilize
savings that can possibly contribute to capital
formation;

AN
Sponsor: Senator Recto

FIFTH ADDITIONAL
MESSAGES OF THE PRESIDENT
OF THE PHILIPPINES
Letters of Her Excellency, President Gloria
enactment of the following Senate bills, pursuant
to the provisions of Article VI, Section 26 (2) of
the 1987 Constitution:
AN ACT REQUIRING MANDATORY
IMMUNIZATION SERVICES AGAINST
HEPATITIS-B FOR INFANTS,
AMENDING FOR THE PURPOSE
PRESIDENTIAL DECREE NO. 996,
AS AMENDED, AND APPROPRIATING FUNDS THEREFOR,
to address a public emergency arising from
the necessity to safeguard the health of the
ACT PROVIDING FOR T H E

CONTROL AND ELIMINATION OF
RABIES, PRESCRIBING PENALTIES FOR VIOLATION THEREOF
THEREFOR,

urgent need to control, prevent the spread of,
and eradicate human and animal rabies, which
is the cause of death of several hundreds of
Filipinos each year and unnecessarily pose fear
and threat to the health and safety of our people.

MESSAGE FROM THE HOUSE
OF REPRESENTATIVES
7 February 2007, the House of Representatives
passed Senate Bill No. 2586, entitled
AN ACT AMENDING SECTIONS 2 AND
3 OF REPUBLIC ACT NO. 2239, AND
FOR OTHER PURPOSES
To the ArchivesA,
1477
to wit:
MALAC~~ANGPALACE
MANlLA
AN ACT ESTABLISHING A PROVIDENT

PERSONAL SAVINGS PLAN, KNOWN
AS THE PERSONAL EQUITY AND
RETIREMENT ACCOUNT (PEW).
Secretary Yabes called the roll for nominal voting

February 7,2007
HON. MANUELB. VlLLAR JR.
Senate President
Philippine Senate
Pasay City

Section 26(2) of the 19x7 Constitution, I hereby
AN ACT ESTABLISHING A PROVIDENT PERSONAL SAVINGSPLAN,
EQUITY AND RETIREMENT
ACCOUNT (PEW).
to address the urgent need to promote our
peoples welfare by providing them opportunities to save for old age, as well as to mobilize
savings that can possibly contribute to capital
formation.
Best wishes.
Very truly yours,
cc. Hon. Jose C. De Venecia Jr
Speaker
Quezon City

ON THIRD READING
In favor
Angara
Biazon
Cayetano
Drilon
Enrile
Flavier
Gordon
Lacson
Madrigal
Magsaysay
Osmeiia
Pangilinan
Roxas
VilW
Against
Arroyo
Recto
Abstention
None
With 15 senators voting in favor, two against,
SIXTH ADDITIONAL
referrals:
MESSAGE OF THE PRESIDENT

OF THE PHILIPPINES
Letter of Her Excellency, President Gloria
enactment of Senate Bill No. 2597, entitled

motion of Senator Pangilinan, there being no objection,
No. 2233.

NO. 9280 OTHERWISE KNOWN AS
THE CUSTOMS BROKERS ACT OF
2004, AND FOR OTHER PURPOSES,
Pursuant to Section 67, Rule XXlII of the Rules

of the Senate, upon motion of Senator Pangilinan,
to address the urgent need to correct the

unintended consequence of the enactment of the
Customs Brokers of 2004 that tends to impede
rather than facilitate the smooth and rapid flow ad
1478
of commerce into the country including various

legal issues raised in court. The passage of this
amendment will remove the ambiguities in the
implementation of RA 9280, consistent with
international standards and worlds best customs
practices,
pursuant to the provisions of Article VI, Section
26(2) of the 1987 Constitution.

COMMUNICATION
Letter from Executive Secretary Ednardo R. Ermita
of the Office of the President of the Philippines,
transmitting to the Senate the letter of Her
Excellency, President Gloria Macapagal Arroyo,
dated 7 February 2007, addressed to Speaker
Jose C. De Venecia of the House of Representatives,
enactment of House Bill No. 6036, entitled
AN ACT AMENDING SECTIONS 2 AND
3 OF REPUBLIC ACT NO. 2239,
OTHERWISE KNOWN AS AN ACT
AUTHORIZING THE PRESIDENT OF
T H E PHILIPPINES TO SELL A
CERTAIN PARCEL OF LAND OF
THE PRIVATE DOMAIN OF THE
NATIONAL GOVERNMENT TO THE
RAMON MAGSAYSAY AWARD
FOUNDATION, AND FOR OTHER
PURPOSES,
pursuant to the provisions of Article VI,
Section 26(2) of the 1987 Constitution.
To the Archives
Upon direction of the Chair, Secretary Yabes read
the Presidents certification as to the necessity of the
immediate enactment of Senate Bill No. 2597, to wit:
MALACARANG PALACE
MANILA
February 7,2007
HON. MANUEL B. VILLAR JR.
Senate President
Philippine Senate

NO. 9280 OTHERWISE KNOWN
AS THE CUSTOMS BROKERS
ACT OF 2004, AND FOR OTHER
PURPOSES,
to address the urgent need to correct the
unintended consequence of the enactment of
the Customs Brokers Act of 2004 that tends
to impede rather than facilitate the smooth
and rapid flow of commerce into the country
including various legal issues raised in court.
The passage of this amendments will remove the
ambiguities in the implementation of RA 9280,
consistent with international standards and
worlds best customs practices.
Best wishes.
Very truly yours,

cc. Hon. Jose C. De Venecia Jr.
Speaker
Quezon City

ON THIRD READING

No. 2597.

NO. 9280 OTHERWISE KNOWN
AS THE CUSTOMS BROKERS
ACT OF 2004, AND FOR OTHER
PURPOSES.
Secretary Yabes called the roll for nominal
voting.
Pasay City


The rcsult of the voting was as follows:
1 A74
NECESSARY INCENTIVES FOR

INVESTMENT AND APPROPRIATING FUNDS THEREFOR.
In ,favor
Angara
Arroyo
Biazon
Cayetano
Drilon
Ejercito Estrada (J.)
Enrile
Flavier
Gordon
Lacson
Madrigal
Magsaysay
Osmeiia
Pangilin
Pimentel
Recto
Roxas
Villar
Against

status was the period o f individual amendments.
Thereupon, the Chair recognized Senator Gordon,
Sponsor of the measure, and Senator Drilon for his
amendments.
DRILON AMENDMENTS
(continuation)
None
Abstention
None
was suspended.
It was 9:20 p.m.


(Continuation)
Report No. 3 9 , entitled
AN ACT DECLARING A NATIONAL
POLICY FOR TOURISM AS THE
PRIMARY ENGINE OF INVESTMENT, EMPLOYMENT, GROWTH
AND NATIONAL DEVELOPMENT,
REORGANIZING THE DEPARTMENT O F TOURISM AND ITS
ATTACHED AGENCIES TO EFFECTIVELY AND EFFICIENTLY IMPLEMENT THAT POLICY, PROVIDING
Adverting to page 34, Senator Drilon asked

whether tourism enterprises in the zone would he
exempt from all taxes and customs duties. Senator
Gordon replied in the affirmative.
On page 35, Senator Drilon noted that under

Section 76(d)(2), tourism enterprises in the zone
could claim tax credit for all national taxes paid on
locally sourced goods and services directly or indirectly
used by the registered enterprise for services rendered
within the zone. Asked how this process would
operate, Senator Gordon explained that the enterprise
is entitled to a rebate on its input tax when it buys
locally made products.
As regards the social responsibility incentive in
Section 76(e), Senator Gordon clarified that it is a tax
deduction.
As proposed by Senator Drilon and accepted by
approved the following amendments:
1.
On page 35, line 6 , replace the word credit
with DEDUCTION;
2.
On the same page, line 13, between the

words registered and enterprises, insert
the word TOURISM.
Asked by Senator Drilon whether the term

liberalized civil aviation environment on line 36 of
page 36 means an open sky policy, Senator Gordon
replied in the negative. To illustrate the meaning of
the term, he cited Clark Field, Subic and other areas
that allow foreign flights on a chartered basis. He
added that the government has adopted this policy to
service areas where the countrys airlines do not
want to fly.+-
1480
3.
4.
On page 38, reword lines 21 to 28 (Section

82), as follows:
proceeding. Senator Gordon replied that the provision

has been deleted at the instance of Senator Drilon.
SEC. 82. PEACE AND ORDER. -THE

PHILIPPINE NATIONAL POLICE SHALL
ESTABLISHATOURLSMSECURlTYFORCE
To ASSIST IN MAINTAINMG PEACE AND
ORDER WlT" AREAS OF HIGH TOURISM
TRAFFIC. THE DEPARTMENT SHALL
MSUE rm r u r m G OF MEMBERS OF
THE FORCE IN CULTURAL SENSITIVITY
LANGUAGE AND RELEVANT LAWS.;
On whether lines 25 to 30 of Section 55, on the

exemption of lands identified as part of a zone from
the coverage of the Urban Development and Housing
Program Act of 1992 and the Comprehensive
Agrarian Reform Law would remain, Senator Gordon
explained that the Committee was in the process of
crafting the appropriate language. Senator Biazon
said that he would just wait for therevised provision.
On page 39, line 18, after the word "law,"

insert a period (.) and delete the rest of the
sentence;
Adverting to Section 89, Senator Drilon noted

that with the approval ofthe DOT, even an enterprise
outside the zone shall be entitled to avail of any
economic incentive enumerated in the said section as
well as tax holiday; and new and expanding tourismregistered enterprises shall also enjoy exemption
from duties and national taxes on the importation of
foreign-made transportation and accompanying spare
parts. Senator Gordon clarified that the matter is being
cleared with the BOI. He added that the incentives
would hopefully bring these enterprises up to speed.
On whether the Philippine Airlines and other
airlines could import spare parts of airplanes tax-free
under the provision, Senator Gordon stated that PAL
already enjoy these privileges but other airlines do not,
hence, the intention is to give them the same privileges
to encourage inter-island travel and enhance business.
As regards the estimated loss in revenue, Senator

Gordon stated that the finance secretary believes
there is none because the revenue is non-existent.
However, he contended that tourism growth could
generate opportunity revenues.
Senator Drilon noted that Shangri-La would be
entitled to income tax holiday should it have a
significant expansion. Senator Gordon agreed,
stressing that hotels should improvehpgrade from
time to time to keep pace with the uptrend in the
industry. He believed that giving the new operators a
chance to come in could increase the competition
and, in the process, create more jobs.
INQUIRIES OF SENATOR BIAZON

Senator Biazon asked if Section 64(f) would
be implemented without the benefit of a judicial
At this point, Senator Gordon said that the Committee would present its amendments incorporating
the concerns of Senators Drilon and Biazon.
was suspended.
It was 9:44 p.m.
Upon direction of the Chair, the Deputy Secretary
for Legislation read the President's certification as

to the necessity of the enactment of Senate Bill
No. 2541, to wit:
MALACAIW~GPALACE
MANILA
February 7,2007
HON. MANUEL 8.VILLAR JR.
Senate President
Philippine Senate
Pasay City
Section 26 (2) of the 1987 Constitution, I hereby
committee Report No. 196, entitled
4-
AN ACT PROVIDING FOR THE

RABIES, PRESCRIBING PENALTIES FOR VIOLATION THEREOF

AM) APPROPRIATING FUNDS
Against
Madrigal
Abstention
TFEREFOR

urgent need to control, prevent, the spread of,
and eradicate human and animal rabies, which is
the cause of death of several hundreds of
Filipinos each year and unnecessarily pose fear
and threat to the health and safety of our people.
Best wishes.
Very truly yours,
None
With 17 senators voting in favor, one against,
(Continuation)
GLORIA MACAPAGAL ARROYO

CC: HON. JOSE C. DE VENECIA JR
Speaker
Quezon City

ON THIRD READING
No. 2541.
there being no objection, Deputy Secretary Reyes
read only the title of the bill, to wit:
AN
ACT PROVIDING FOR THE

RABIES, PRESCRIBING PENALTIES
FOR VIOLATION THEREOF AND
APPROPRIATING FUNDS THEREFOR.
Deputy Secretary Reyes called the roll for

nominal voting.
In ,favor
Angara
Arroyo
Biazon
Cayetano
Drilon
Enrile
Flavier
Gordon
Lacson
Magsaysay
Osmetia
Pangilinan
Pimentel
Recto
Roxas
Villar

Second Reading, of House Bill No. 3409 (Committee
Report No. 209), entitled:
AN
ACT FURTHER AMENDING

PRESIDENTIAL DECREE NO. 1869
OTHERWISE KNOWN AS PAGCOR
CHARTER.

Thereupon, the Chair recognized Senator Arroyo,
Sponsor of the measure, and Senator Lacson for his
interpellation.
INTERPELLATION
OF SENATOR LACSON
Asked by Senator Lacson when the Pagcor
franchise would expire, Senator Arroyo replied that it
is on July 2008.
Asked if the projects or agencies mentioned
in PD 1869 still exist, Senator Arroyo stated that
they have been rendered functus officio given
the fact that the original franchise has undergone
various amendments through the presidential decrees
issued by President Marcos. He explained that
PD 1869 created a corporation and granted it a
franchise, and the decree itself is the Articles of
Incorporation.
As to the subsequent decrees that amended
PD 1869, Senator Arroyo cited Presidential Decree
Nos. 1067, 1067-B,1067-C, 1399 and 1632 which
relate to the franchise and powers of the Pagcor. qaP
r"
1482
As to how the Pagcor distributes its earnings,

Senator Arroyo stated that 5% goes to the BIR as
franchise tax and, in turn, the balance is distributed
as follows:
50% goes to the National Treasury;
A fixed amount for the city hosting the

Pagcor casinos;
5% of the balance after the franchise

tax and the national governments
mandated income share to the Philippine
Sports Commission;
P400 million a year or P2 billion in five
years for the Early Childhood Care and
Development Program;
PI00 million initial funding to the Sports
Incentives and Benefits Act;
P300 million or P10 million a month to
the Gasoline Station Training and Loan
Fund;
P250 million for the Pagcors remittance
to the Presidents Social Fund to implement the National Museum Act of 1998;
P5 million from the National Treasuly
share to support the Comprehensive
Dangerous Drugs Act of 2002;
P30 million to the Childrens TV Act of
1997;
P300 million to the Batangay MicroBusiness Enterprises Development Fund;
P14.72 billion to the Philippine Seafarers
One-Stop Processing Center under
Presidential Administrative Order No. 56;
P1% of the net cash income to the
Board of Claims under the Department
of Justice to compensate victims of
wrongful prosecution; and
The remaining balance is remitted to the
Presidents Social Fund for the priority
projects of the Office of the President.
He supposed that whatever is left is used as
Pagcors capital expense.
Asked if Pagcor has sources of income other
than the casinos, Senator Arroyo replied that other
sources of income as of December 31, 2005 were:
bingo operations, in-house P105 million; bingo

operations, franchises, P1.374 billion; management
fees, PI83 million; hotel operations, P564 million;
gasoline service operations, PI .I 64 billion; entertainment, P2.166 million; and others P7.668 million. He
added that Pagcor also has dividend income of
P942 million.
Upon motion of Senator Arroyo, the session was
suspended.
It was 9.57 p . m
At 9:58 p.m,, the session was resumed.

suspended.
It was 9:S9 p . m
At 9 5 9 p,m,, the session was resumed.
As regards the operation of the arcades, Senator
Arroyo stated that 40% is on a lease agreement with
private investors.
T o the observation that Pagcor under
Section 1l(1) of PD 1869 can enter into management
contracts provided that the aggregate fees shall not
exceed 10% of the gross income, Senator Arroyo
explained that Section 1l(1) means that the aggregate
fees of leased operations must not exceed 10% of
the gross income of Pagcor and in the lease agreement,
with respect to the operation of the arcades, Pagcor
gets a 60% share.
Asked why Pagcor entered into a management
agreement instead of running the arcade itself,
Senator Arroyo replied that apparently, Pagcor subleases certain machines because it is very difficult
to update them. He said that the machines and other
gambling paraphernalia are very expensive; and it is
the lessee who buys the equipment and other supplies.
The 60-40 deal of Pagcor, he added, was purely a
business decision and it is risk-free to the government 4-
because Pagcor does not shell out a single centavo.

Moreover, he stated that the lease contracts have
exit clauses in case a court finds the contract
disadvantageous to the government. He stated that
the lease agreement has been approved by Pagcors
own Corporate Legal Services Department, the Office
of the Government Corporate Counsel, the
Commission on Audit and the Department of Justice.
Asked if Pagcor has enough capital to finance
the purchase of slot machines, Senator Arroyo replied
that it does.
Senator Arroyo recalled that indeed, during the
hearings, the Pagcor people had testified that it
would be easier for them to lease and get 60%
instead of wracking their brains over changing their
gambling paraphernalia every now and then.
Adverting to Section 13 of PD 1869, Senator
Lacson said that he could not see any reason why
imported vessels and/or accessory ferry boats
that have contractual arrangements with Pagcor
would be exempted from paying the mandatory fees
and taxes. Senator Arroyo stated that the bills of
Senators Enrile, Ejercito Estrada (J) and Lapid seeking to overhaul the entire Pagcor operations might
address the concern which is under the purview of
the Comuttees on G o v m e n t Corpomtions and Public
Enterprises; and Games, Amusement and Sports.
He said that the jurisdiction of the Committee on
Public Services is simply on the grant of the franchise.
Senator Lacson believed that the grant of
franchise to Pagcor and the bill calling for the
extension of such franchise could not be dissociated
because it would be worthless to extend a franchise
based on a defective and outdated law. Considering
that House Bill No. 3409 itself seeks to further
amend the Pagcor charter, he wondered why other
amendments could not be introduced in the bill
so that all the obsolete provisions of the law could
be removed. Senator Arroyo reiterated that the
Committee on Public Services has no jurisdiction on
bills involving taxes.
Asked if the Committee would adopt House Bill
No. 3409 without amendment, Senator Arroyo
replied that while the Committee originally intended
to adopt it without amendment, Pagcor has called
the Committees attention to reconsider restoring
the provision to operate Internet gambling which the
House removed.
1483
Asked if he would accept amendments to restore

the provision that the House removed, Senator Arroyo
said that he would, if it is within the Committees
jurisdiction.
INTERPELLATION OF SENATOR ANGARA

Replying to the queries of Senator Angara, Senator
Arroyo affirmed that Pagcor earns about P25 billion
a year and its revenues are expected to continue to
rise. He said that in 2002, Pagcor earned from the
SEC the distinction of being the most profitable
corporation in the Philippines with P20.21 billion in
earning; for 2003, despite the SARS scare, it kept. its
shortfall to a minimum, posting an earning of P19.43
billion; for 2004 and 2005, it earned an income of
P24.87 billion and P23.24 billion, respectively, and
P23.200 billion as of November 30, 2006.
In reply to further queries, Senator Arroyo believed

that the Committee on Public Services cannot change
the wording of a franchise written almost 25 years
ago, the same way that a corporation that wishes to
amend its charter should go to SEC and file an
amended Articles of Incorporation.
Senator Angara argued that if there is a bill, for
instance, to amend the Napocor charter, the
Committee on Government Corporations and Public
Enterprises should hear and incorporate all the
proposed amendments of members, if found worthwhile. Likewise, he said that the power of a franchise
committee embraces all the ancillary issues involved
in the franchise. In fact, he said, he would like to
introduce an amendment to the allotment provision
so that more money could go to social services like
education, health and preservation of the national
heritage. He said that he had cleared this up with the
Pagcor chair who welcomed the proposal by remarking that it would make a better Pagcor. He said that
he could not understand why such matter is beyond
the jurisdiction of the committee as he was not asking for the revamp of the entire charter. Senator
Arroyo replied that Pagcor is giving the monies to
12 beneficiaries not because the Pagcor franchise
was amended but because of separate independent
laws that were introduced mandating that a certain
amount be taken from Pagcor.
Senator Angara said that these are minimal
amounts, except for the share of the Philippine
Sports Commission which is 5%. Pointing out that
the bulk of the income is given out as discretionary@
1484
funds, he underscored the need for the proper and

transparent distribution of the monies raised from
non-tax revenues. Senator Arroyo said that anyone
could introduce a bill mandating that a certain
percentage of the net income of Pagcor be given to
a particular project or agency.
Senator Angara believed that specifying the
allotment at this point is integral to the very nature of
the franchise; thus, insisting that the Committee is
merely a franchise committee is a narrow reading of
the law and is a waste of valuable time. Senator
Arroyo pointed out that Rule IX of the Rules ofthe
Senale provides that the jurisdiction of the Committee
on Government Corporations and Public Enterprises
covers all questions affecting government corporations,
including all amendments to their charters; on the
other hand, the jurisdiction of the Committee on
Public Services is to grant or amend legislative
franchises.
Senator Angara argued that to insist tliat the sole
responsibility of the Committee on Public Services is
to extend a franchise is a very narrow reading of its
authority and very destructive of the committee
system wherein a committee discusses and considers
all the issues, including minor ones, affecting the
subject matter. He said that subdividing the work on
one franchise hill between several committees like
the Committee on Government Corporations and
Public Enterprises for the amendments, Committee
on Ways and Means for the tax component, and the
Committee on Finance for the appropriations would
never enable the Senate to pass a bill. But Senator
Arroyo insisted that this is the way the committee
system works in the Senate.
MOTION TO RECOMMIT THE BILL

Thereupon, Senator Angara moved to recommit
the bill.
Senator Arroyo stated that only the House of
Representatives initiates franchise hills, as provided
for in the Constitution. He wondered whether the
House would agree to all the amendments being
proposed by Senator Angara.
Noting that the Senate has overhauled the general
appropriations hill, Senator Angara reasoned that it
cannot be argued that the Members CaMOt amend a
franchise which to him is contrary to Senate practice,
the Rules and common sense. If Senator Arroyo was
not prepared to consider amendments which the

Pagcor itself accepted, he said that nothing remains
to be done except to recommit the bill.
Senator Arroyo noted that House Bill No. 3409
consists of two pages which could increase to four
pages if he agreed to the amendments of Senator
Angara which he argued the House would never
accept. He maintained that the function of the
Senate with respect to franchise bills is to concur,
disagree or modify. He emphasized that this was the
rule followed by past committee chairs.
Senator Angara reasoned that the amendment
he was proposing is for public interest and no one
would object to the use of the the gaming proceeds
to improve public schools and hospitals and to
conserve the national heritage. He maintained that
as the records would show, the Senate had amended
franchise bills in the past.
However, Senator Arroyo contended that Bs
committee chair for the past six years, the Body has
never amended articles of incorporation. But Senator
Angara disagreed. He appealed to the Rules of the
Senate, arguing that a committee should not simply
limit its function to extending a franchise.
Senator Arroyo stated that precisely, the procedure has been to refer a hill to a primary, secondary
and tertiary committees.
Senator Angara argued that it is the responsibility
of the primary committee to consider amendments
that affect the subject matter of a hill. In view of the
difference in opinions, he said that it would he better
to recommit the hill so that all aspects could be
considered.
Senator Arroyo recalled that the bill of Senator
Enrile was referred primarily to the Committee on
Government Corporations and Public Enterprises while
that of Senator Ejercito Estrada [J) was referred
primarily to the Committee on Games, Amusements
and Sports with the Committee on Public Services
as the secondary committee. He noted that the
Pagcor bill was passed by the House during the
Twelfth Congress but the Senate did not take it up
for about two years. He recounted that the House
transmitted the franchise bill in June 2005 but Pagcor
only completed the documentation requirements in
July 2006. He bared that in October 2006, he was
told that Pagcors franchise would expire in April&-
1485
2008 which fact made it difficult for Pagcor to deal

with banks, creditors and partners. It is for this
reason, he said, that he had to attend to it immediately
especially in the light of the heightened competition
among neighboring countries in the gambling industry
which is now a rich source of revenue. He stressed
that Pagcor could not deal with its creditor banks and
foreign partners unless its franchise was renewed for
another 25 years.
Senator Angara noted that as early as October
last year, all the documentary requirements had been
fulfilled by Pagcor but it was only now that the
Committee presented the report. He agreed that with
the franchise renewal, investors and creditors should
be pleased but he would rather please the Filipinos
more. He proposed to improve the Pagcor charter by
allocating a portion of its proceeds to social services
which, he believed, would be an improvement and an
invitation to foreigners to come in and expand their
operations.
Senator Arroyo reiterated that he did not
want to intrude into the jurisdiction of the other
committees. He moved that the Body take a vote
on the motion.
With the permission of the Body, the Chair
suspended the session.
it was 10:37 p.m.

INQUIRY
OF SENATOR ROXAS
Asked by Senator Roxas whether the Chair has
ruled on the motion of Senator Angara, Senator
Arroyo stated that he and Senator Angara have
agreed that the amendments to he proposed would
not conflict with their respective positions.
REMARKS OF SENATOR ROXAS

Senator Roxas informed the Body that Senator
Arroyo has stood firm in his belief that the Committee
on Public Sewices has a limited scope as far as
amendments to franchises are concerned to which
he disagreed. Effectively, he said, the Body could
agree to the extension of the Pagcor franchise or not
agree to extend it; and the other recourse is to leave
the task of amending specific provisions of the
franchise to another committee.
He stated that he would have wanted to introduce
an amendment segregating the function of regulating
gaming from the activity of engaging in gaming, both
of which are presently reposed in Pagcor. He asserted
that this is not good governance because the regulator,
in effect, regulates its own activities, hence, there is
no system of checks and balance.
He disclosed that the other amendments that he
would have wanted to propose pertain to the sale of
the ownership of Pagcor, after a certain period, to
the public either through a public offering or the entry
of strategic partners so that government could reduce
its participation in gaming; and the allocation of the
income of Pagcor.
Given the position of the Committee chair,
Senator Roxas stated that it would be useless to
interpellate on the bill much less to propose amendments beyond the scope determined by the Chair.
Lest he be constrained to interpellate on the bill
extensively to better understand it, he hoped that the
Committee chair has heard his views.
In closing, Senator Roxas manifested that he
would vote against the bill.
was suspended.
it was 11:19 p.m,

suspended.
It was 11:12 p.m.
4a-
1486
PARLIAMENTARY INQUIRY
OF SENATOR LACSON
Noting that it was already 11:21 in the evening,
Senator Lacson inquired whether the bills passed
on Second Reading last Monday, February 5 , could
be passed on Third Reading after the stroke of
twelve midnight when the three-day rule shall
have been complied with. The Chair replied in the
affirmative, as it confirmed that the Members need
not come the next day for that purpose.
Senator Pangilinan stated that if the Members
passed other bills on Second Reading after twelve
midnight, they might have to come back on Friday for
the Third Reading.
OF HOUSE BILL NO. 3409
the bill.
BILLS CREATING ADDITIONAL

BRANCHES OF TRIAL COURTS
(Continuation)
With the unanimous consent of the Body, upon
motion of Senator Pangilinan, consideration, on Second
Reading, of the following bills was resumed:
No. 140), entitled

AN ACT CREATING TWO ADDITIONAL
BRANCHES OF THE MUNICIPAL
TRIAL COURTS IN CITIES (MTCC)
IN THE CITY OF SAN JOSE DEL
MONTE, PROVINCE OF BULACAN,
AMENDING FOR THE PURPOSE
SECTION 129, OTHERWISE KNOWN
AS THE JUDICIARY REORGANIZATION ACT OF 1980, AS AMENDED,
?FIEREFOR;
2.

No. 139), entitled
AN ACT CREATING AN ADDITIONAL
BRANCH OF THE MUNICIPAL TRIAL
COURT IN THE MUNICIPALITY OF
DAET, PROVINCE OF CAMARINES
NORTE, AMENDING FOR THE
PURPOSE SECTION 30 OF BATAS
PAMBANSA BILANG 129, OTHERWISE KNOWN AS THE JUDICIARY

REORGANIZATION ACT OF 1980, AS
AMENDED, AND APPROPRIATING
FUNDS THEREFOR
No. 1291, entitled
AN ACT ESTABLISHINGAN ADDITIONAL
BRANCH OF THE REGIONAL TRIAL

COURT IN THE PROVINCE OF
ZAMBOANGA SIBUGAY TO BE
STATIONED AT THE MUNICIPALITY
OF IMELDA, AMENDING FOR THE
PURPOSE SECTION 14, PARAGRAPH
(J) OF BATAS PAMBANSA BLG. 129,
OTHERWISE KNOWN AS rm
JUDICIARY REORGANIZATION ACT
OF 1980, AS AMENDED, AND APPROPRIATING FUNDS THEREFOR and
No. 134), entitled
AN ACT CREATING AN ADDITIONAL
BRANCH OF THE REGIONAL TRIAL

COURT IN THE PROVINCE OF LANA0
DEL SUR TO BE STATIONED AT THE
MUNICIPALITY OF WAO, AMENDING
FOR THE PURPOSE SECTION 14,
PARAGRAPH (M) OF BATAS
PAMBANSA B E . 129, OTHERWISE
KNOWN AS THE JUDICIARY
REORGANIZATION ACT OF 1980, AS
AMENDED, AND APPROPRIATING
FUNDS THEREFOR.
status of each bill was the period of interpellations.

OF INTERPELLATIONS
There being no interpellation on any of the bills,

upon motion of Senator Pangilinan, there being no
objection, the Body closed the period of interpellations
and proceeded to the period of amendments.

OF AMENDMENTS

amendment to any of the bills, upon motion of
Senator Pangilinan, there being no objection, the
Body closed the period of amendments.
"r
1487
APPROVAL OF HOUSE BILL NOS. 5117,

5116, 1308 AND 4393 ON SECOND READING

status was still the period of interpellations.

House Bill Nos. 5117, 5116, 1308 and 4393 were
approved on Second Reading, one after the other.
Thereupon the Chair recognized Senator Arroyo,

Sponsor of the measure, and Senator Gordon for his
interpellation.
OF HOUSE BILL NOS. 5117, 5116,
1308 AND 4393
INTERPELLATION OF SENATOR GORDON

the bills.

no objection, the Body considered Committee Report
No. 258 re: PRIVILEGE SPEECH OF SENATOR
DRILON AND T H E INTERPELLATIONS
THEREON, DELIVERED ON JANUARY 22,2007,
ENTITLED A SEASON OF SHAME;
PRIVILEGE SPEECH OF SENATOR ALFRED0
S. LIM DELIVERED ON JANUARY 22, 2007,
ENTITLED WHAT ARE WE IN POWER FOR?
AND P.S. RES. NO. 609.
With the permission of the Body, only the subject
matter of the committee report was read without
prejudice to the insertion of its full text into the
Record of the Senate.
APPROVAL OF COMMITTEE
REPORT NO. 258
no objection, Committee Report No. 258 was approved
by the Body.

(Continuation)
Second Reading, of House Bill No. 3409, entitled:
AN

CHARTER.
Asked by Senator Gordon why jai-alai, internet

and other forms of gambling were not included in
the scope of Pagcor operations, Senator Arroyo
replied that it was the House that removed them
and Senator Angara would introduce an amendment
to restore internet gambling.

OF INTERPELLATIONS
There being no further interpellation, upon motion
Body closed the period of interpellations and
proceeded to the period of committee amendments.

There being no committee amendment, upon
the Body closed the period of committee amendments
and proceeded to the period of individual amendments.
ANGARA AMENDMENT
On page 1, line 12, as proposed by Senator

Angara and accepted by the Sponsor, there being no
objection, the Body approved the replacement of the
word maintain with the word LICENSE.
ANGARA-GORDON AMENDMENT
On page 2, line 1, as jointly proposed by Senators
Angara and Gordon, there being no objection, the
Body approved the deletion of the phrase AND
INTERNET GAMBLING.
PROPOSED AMENDMENT
OF SENATOR ENRILE
On page 2, line 3, after the word Philippines,
Senator Enrile proposed to replace the colon (:) with
a period (.) and to delete the proviso starting with
the word PROVIDED on line 3, up to the period
(.) on line 6.
4-
1488

REGULATEDBY, IN AND UNDER SPECIAL
LAWS SUCH AS REPUBLIC ACT NO. 7922;
AND (3) GAMES OF CHANCE, GAMES OF
CARDS, AND GAMES OF NUMBERS LIKE
COCKFIGHIlNG,AUTHORIZED,UCENSED
AND REGULATED BY LOCAL GOVERNMENT UNITS. THE CONDUCT OF SUCH
GAMES OF CHANCE, GAMES OF CARDS
AND GAMES OF W E R S COVERED BY
EXISTING FRANCHISES, REGULATORY
BODIES OR SPECIAL LAWS TO THE
EXTENT OF THE JURISDICTION AND
POWERS GRANTED UNDER SUCH
FRANCHISES AND SPECIAL LAWS,
SHALL BE OUTSIDE THE LICENSING
AUTHORITY AND REGULATORYPOWERS
OF PAGCOR,
Senator Recto wondered whether the proposed

amendment would, in effect, authorize Pagcor to
operate casinos in any area even without the consent
of the local governments. Senator Enrile replied in
the affirmative as he explained that the proposal aims
to only maintain the status quo.
Asked by Senator Enrile whether such
authorization is contained in the Local Government
Code, Senator Arroyo replied that if it were so,
then there would be no need to amend the Pagcor
charter. He pointed out that the Pagcor seeks the
permission of the concerned LGU only as a matter
of courtesy.
For his part, Senator Enrile believed that the
requirement for Pagcor to secure a permit from the
LGUs should remain in the Local Government Code
and not to be included in the Pagcor charter.
Upon motion of Senator Recto, the session was
suspended.
It was 11:37 p m .
At 11:37 p.m., the session was resumed,
Upon resumption, Senator Enrile withdrew his
proposed amendment.
As proposed by Senator Enrile and accepted by
approved the following amendments, one after the
other:
1.
On page 2, between lines 13 and 14, insert

a new paragraph to read as follows:
THE AUTHORITY AND POWER OF
PAGCOR TO AUTHORIZE, LICENSE, AND
REGULATE GAMES OF CHANCE,GAMES
OF CARDS, AND GAMES OF NUMBERS
SHALL NOT EXTEND TO. (1) GAMES OF
CHANCE AUTHORIZED, LICENSED, AND
REGULATED OR TO BE AUTHORIZED,
LICENSED AND REGULATELI BY, INAND
UNDER EXISTING FRANCHISESOROTHER
REGULATORY BODIES; (2) GAMES OF
CHANCE, GAMES OFCARDS AND GAMES
OF NUMBERS AUTHORIZED, LICENSED,
2.
On page 2, Section 1, add a new subsection

(2), to amend Section 3(h) of the Pagcor
Charter on Corporate Powers as contained
in P.D. No. 1869 as follows:
a. On the first line, after the word
make and the comma (,), insert the word
CONCLUDE and a comma (,);
b. On the second line, after the word

kind, insert the phrase AND NATURE;
suspended.
It was 11:43 P.M.

c. Delete lines 3 to 6 beginning with
the word pertaining and ending with the
word corporation, and in lien thereof, insert
the following: WHICH ARE NECESSARY,
APPROPRIATE, PROPER OR INCWENTAL
TO ANY BUSINESS OR PURPOSE OF
PAGCOR, INCLUDING BUT NOT LIMITED
TO INVESTMENT AGREEMENTS, JOINT
VENTURE AGREEMNB, MANAGEMENT
AGREEMENTS, AGENCY AGREEMENTS,
WHETHER AS PRINCIPAL OR AS AN
AGENT, MANPOWER SUPPLY AGREEMENTS, OR ANY OTHER SIMILAR
AGREEMENTSOR ARRANGEMENTS WITH
ANY PERSON, FIRM, ASSOCIATION OR
CORPORATION.&
1489

There being no other individual amendment, upon
the Body closed the period of individual amendments.

ON SECOND READING
Submitted to a vote, and with the majority voting
in favor, House Bill No. 3409 was approved on
Second Reading.
INQUIRIES OF SENATOR ROXAS

Asked by Senator Roxas on the differences
between the amendments that had been accepted
by Senator Arroyo and those being proposed by the
other Members on the allocation of Pagcor earnings,
Senator Arroyo stated that beforehand, he had
informed Senator Enrile that he would reject proposed
amendments that have to do with allocation. He
clarified that the amendments he had accepted would
exclude card games from Pagcor jurisdiction and
expand the agreements that Pagcor could enter into.
As regards the document that was the subject of

the amendments, Senator Arroyo explained that the
amendments were to PD 1869 which refers both to
the Articles of Incorporation and the franchise
authority of the Pagcor.
Senator Roxas noted that the initial representation
of Senator Arroyo was that the power of the
Committee was only with respect to what was
submitted by the House of Representatives and to
the extension of the franchise, and so he thought that
PD 1869 and subsequent presidential decrees that
have to do with the charter of Pagcor were beyond
the Committees mandate. He asked what the
Committee can and cannot do relative to the matter.
At this point, Senator Enrile stated that his
amendments dealt with the establishment of the
jurisdiction of Pagcor as a licensor and its operational
powers. He said that the Committee could not divorce
the franchise of Pagcor from its corporate power
because they govern the franchise. Since Pagcor is
authorized to operate and license gambling operations
under its franchise, he said that it is germane and
relevant to amend the power of Pagcor to enter into
contracts as an operator.
On whether there is a difference in treatment or

interpretation between the amendments that were
submitted and accepted, and the questions he had
posed earlier, Senator Enrile replied that before he
introduced his amendments, he showed them to
Senator Arroyo and asked whether those are germane
to the House bill being amended.
Senator Roxas stated that based on the conversation he bad with Senator Arroyo, he concluded that
the amendments he was contemplating were not
consistent with Senator Arroyos interpretation and
so he decided not to pursue them. He clarified that
he was only interested to know the difference in the
treatment of those proposals.
Senator Arroyo explained that PD 1869 consists
roughly of two parts: First, the creation of Pagcor
consisting of Sections 2 to 9 which refer to the
corporate powers and the organization of Pagcor
instead of the Articles of Incorporation filed with
the SEC: Section 2, the Creation ofPhilippine Amusement and Gaming Corporation, which states the
corporate powers, the state policy, and the reason for
creating Pagcor; Section 4 is the authorized capital
stock that would be owned by the government;
Section 5 refers to the government investment;
Section 6, the Board of Directors; Section 7, Powers,
Functions and Duties of the Board of Directors;
Section 8, Registration; and Section 9, Regulatory
Power; and second is the grant of the franchise
consisting of Section 10, Nature and Term of
Franchise; Section 11, Scope of Franchise; Section
12, Special Condition of Franchise; Section 13,
Exemptions, and subsection 3, Dividend Income; and
Section 14, Other Conditions and the Corporations
activities. Moreover, he said that Title 4 refers to
government audit; Title 6, exemption from Civil
Sewice Law, and Title 7, Transitory Provisions.
Senator Arroyo stated that the Committees
jurisdiction, as far as PD 1869 is concerned, refers
only to Title 4, Grant of Fratichise and Related
Activities, as well as Sections 10 to 14. He said that
the Committee accepted Senator Enriles proposed
amendments because they refer to Title IV.
of the immediate enactment of House Bill No. 3409,
to wit:
1490
MALACAfuANG PALACE
MANILA
February 6,2007

HON. MANUELB. VlLLAR JR.

Senate President
Philippine Senate
Pasay City
In .favor
Cayetano
Enrile
Flavier

certify to the necessity of the immediate enactment of House Bill No. 3409, under Committee
Report No. 209, entitled
AN ACT FURTHER AMENDING
CHARTER,
to address public emergency arising from the
urgent need to extend PAGCORs corporate
existence to ensure continuity of its critical
programs and projects geared towards uplifting
the socio-economic plight of the less fortunate in
Philippine society.
Best wishes.
Very truly yours,
Angara
Arroyo
Gordon
Magsaysay
Pangilinan
Recto
Villar
Against
Roxas
Abstention
None
With 11 senators voting in favor, one against,

(Continuation)
cc: Hon. JOSE C. DE VENECIA JR.

Speaker
Quezon City

ON THIRD READING
In view of the Presidential certification, upon
No. 3409.
AN

CHARTER.

Report No. 3). entitled
AN ACT EXTENDING THE UTILIZATION PERIOD OF THE AGRICULTURAL COMPETITIVENES
FUND, AMENDING FOR THIS
PURPOSE SECTION 8 OF REPUEILIC
ACT NO. 8178, ENTITLED AN ACT
REPLACING QUANTITATIVE IMPORT
RESTRICTIONS ON A G R I C U L m
PRODUCTS, EXCEPT RICE, WITH
TARIFFS, CREATING THE AGRICULTURAL COMPETITIVENESS
FUND: AND FOR OTHER PURPOSES.
status was still the period of interpellations.
Thereupon, the Chair recognized Senator
Magsaysay, Sponsor of the measure, and Senator
Osmefia for his interpellation.
.rc
1491
THURSDAY. FEBRUARY 8,2007
INTERPELLATION
OF SENATOR OSMERA
the Execom has authorized the agriculture secretary

to approve loans of PI5 million and below.
Preliminarily, Senator Osmeiia asked on the total

collection in Fund 183 or the account number that he
helped obtain from the Bureau of Treasuty for all the
collections in minimum access volume (MAV)
importations.
Asked whether the intent of the ACEF is to

assist small and medium entrepreneurs, and not the
small farmers, Senator Magsaysay replied that the
Fund aims to improve the post-harvest processing
of these entrepreneurs to enable them to go into
agribusiness as well. He said that the loan proceeds
from the Quedan and Rural Credit Guarantee
Corporation (Quedancor) shall be lent to the small
farmers.
Upon motion of Senator Magsaysay, the session
was suspended.
It was 12:07 a.m.

At 12:07 a.m., the session was resumed.
Senator Magsaysay replied that the total collection
in Fund 183 of the ACEF as of January 15, 2007,
was P5,819,135,810 and the available balance to date
was P2,817,683,441. Upon huther queries, heaffirmed
that the grand total for approved ACEF projects was
over P3 billion, including the recently approved 27
projects amounting to P233 million; total loans granted
was roughly P2.206 billion; total loan receivables as
of the third quarter of 2006 was P184,134,000; and
the total loan payment per the latest report of the
Landbank as of the third quarter of 2006 was roughly
P50 million.
Noting that there was only a 28% payback,
Senator Osmefia explained that the reason he objected
to the extension of the ACEF was that it did not
comply with the AFMA which provides that the
Fund shall be used for small farmers and fisherfolk,
farm-to-market roads, infrastmcture, value-added
facilities, and the like; instead, the Fund was utilized
to lend money to medium-agricultural enterprises
without interest and collateral.
Senator Magsaysay stated that the ACEF has
suspended the loan application processing for two
years.
However, Senator Osmeiia pointed out the report
of the Congressional Oversight Committee on
Agriculture and Fisheries Modernization (COCAFM)
indicating that 27 projects were recently approved
amounting to P233 million, which is roughly PI0
million per project. Senator Magsaysay stated that
Senator Osmeiia stated that the small farmers

are the ones who badly need credit and not those
entrepreneurs who have banking connections, credit
lines, and collaterals to offer. He expressed
disappointment over the fact that legislators are not
keeping their promise as enunciated in the various
provisions of the Agricultural Tariffication Act and
the Agricultural and Fisheries Modernization Act,
which are supposed to help the small farmers. He
said that at the proper time, he would introduce an
amendment to allocate whatever remains of the
Fund to the small farmers and laboratories in all agricultural centers, and for the loans to be administered
through microfinance institutions particularly the
People's Credit and Finance Corporation where no
single applicant can borrow more than P150,000,
consistent with the provisions of the Bangko Sentrd
ng Pilipinas and other government agencies.

OF INTERPELLATIONS
There being no further interpellation, upon motion
of Senator Angara, there being no objection, the
Body closed the period of interpellations and
proceeded to the period of committee amendments.

There being no committee amendment, upon
motion of Senator Osmeiia, there being no objection, the Body closed the period of committee
amendments and proceeded to the period of individual amendments.
OSMERA AMENDMENTS
As proposed by Senator Osmeiia and accepted
by the Sponsor, there being no abjection, the Body+,
THURSDAY. FEBRUARY 8.2007
1492
approved the following amendmenls, one after the

other:
1.
On page I, after line 13, insert the sentence

THEREAFTER,THE LAND BANK OF THE
PHILIPPINES SHALL BE THE SOLE
DEPOSITORY OF ACEF FUNDS;
2,
On the same page, lines 15 and 16, delete the

phrase "and earmarked by Congress";
3.
On the same page, lines 14 and 15, delete

the phrase "TO FINANCE MEDIUM TO
LONG TERM CROPS AND OTHER SUCH
PROJECTS AS MAY BE PRIORITIZED BY
THE ACEF EXECUTIVE COMMITTEE,
4. On the same page, delete the provision

starting on line 20 up to line 10 of page 2
and, in lieu thereof, insert the following:
(A) TWO HUNDRED MILLION PESOS
(P200,000,000.00) IN A SPECIAL FUND
DEPOSITED WITH THE LAND BANK OF
THE PHILIPPINES FOR THE YOUNG
FARMERS PROGRAM. SAID PROGRAM
SHALL BE ADMINISTERED BY THE
DEPARTMENT OF AGRICULTURENATIONAL AGRICULTURE AND
FISHERIES COUNCIL (DA-NAFC).
(B)ONEBILUONPEKB(Pl,W,W,W00)
IN A NON-DIRECTED TRUST FUND
DEPOSITED WITH AND MANAGED BY
THE LAND BANK OF THE PHILIPPINES.
THE INCOME FROM FLJNDINVESTMENTS
SHALL BE USED TO FUND SCHOLARSHIPS FOR NEEDY BUT DESERVING
STUDENTS ENROLLED AT MEMBER
INSTITUTIONS OF THE ASSOCIATION
OF COLLEGES OF AGRICULTURE IN
THE PHILIPPINES (ACAP). THE GRANTS
SHALLNOT EXCEEDFIFTEEN THOUSAND
PESOS (Pl5,OOO.OO) PER SCHOLAR PER
YEAR INCLUDING A ONE-TIME THESIS
GRANT OF FIFTEEN THOUSAND PESOS
(Pl5,OOO.OO) PER SCHOLAR WHO ARE
SENIORS.
THE RULING BODY OF ACAP SHALL
DETERMINE THE AMOUNT OF SCHOLARSHIP FUNDS ALLOCATED TO EACH
MEMBER INSTITUTION.
(C)ONEBIUIONPESOS(Pl,W,W,W.CQ)
IN A FUND DEPOSITED WITH AND
MANAGED BY THE LAND BANK OF THE
PHILIPPINES. THE FUND SHALL BE LENT
TO MICROFINANCE INSTITUTIONS
ACCREDITED BY THE PEOPLE'S CREDIT
AND FINANCE CORPORATION WHICH

FINANCE INSTlTunONS SHALLON-LEND
TO SMALL FARMERS AND FISHERFOLK
PROVIDED, THAT NO SINGLE LOAN OR
SERIES OF LOANS TO A SINGLE
BORROWER SHALL BE MORE THAN ONE
HUNDRED FIFTY THOUSAND PESOS
(PI 50,000.00).
(D) FOUR HUNDRED MILLION

PESOS (P400,000,000.00) AS A ONE-TIME
GRANT TO MEMBER SCHOOLS OF
ACAP TO UPGRADE LABORATORY
FACILITIES, PURCHASE LABORATORY
EQUIPMENT, AGRICULTURAL EQUIPMENT AND TO FUND RESEARCH
AND DEVELOPMENT PROGRAMS AND
PROJECTS IN AGRICULTURE, AQUACULTURE AND MARICULTURE. THE
RULING BODY OF ACAP SHALL
DETERMINE THE AMOUNT OF GRANT
FOREACH MEMBERCOLLEGE.
(E) FOUR HUNDRED MILLION
PESOS (P400,000,000.00) AS A ONE-TIME
GRANT TO UPGRADE LABORATORY
FAcILmES AND ANY0"EREQUIpMENT
OR FACILITIES FOR RESEARCH AND
DEVELOPMENT PROJECTS TO THE
FOLLOWING: FIFTEEN (15) AGRICULTURAL COLLEGES IDENTIFIED BY
THE PHILIPPINE COUNCIL FOR AGRICULTURE AND NATURAL RESOURCES
RESEARCH AND DEVELOPMENT
(PCARRD) AND THE DEPARTMENT
OF AGRICULTURE-BUREAU OF AGRICULTURAL RESEARCH (DA-BAR) AS
CENTERS OF EXCELLENCE IN AGRICULTURE AND FISHERIES:
1. BENGUET STATE UNIVERSITY
(BSU),
2. MARIAN0 MARCOS STATE

UNIVERSITY (MMSU),
3.
ISABELA STATE UNIVERSITY (ISU),
4. CENTRAL LUZON STATE

UNIVERSITY,(CLSU),
5.
UNIVERSITY OF THE PHILIPPINES,

LOS Ba_r;rOS(UPLB),
6. BICOL UNIVERSITY (BU),
7. UNIVERSITY OF THE PHILIPPINES

IN THE VISAYAS (UPV),
8. NEGROS ORIENTALSTATE
UNIVERSITY (NORSU),
9. LEYTE STATEUNIVERSITY (LSLJ), @
y"
THURSDAY, FEBRUARY 8,2007
1493
THEREAFTER, THE COMMISSION
ON AUDIT SHALL CONDUCT AN
ANNUAL AUDIT OF THE VARIOUS
FUNDS UNDER THE ACEF INCLUDING
THE GRANTS GIVEN AND REPORT
ITS FINDINGS TO THE SUPERVISORY
COUNCIL, COCAFM, COMMITTEE ON
APPROPRIATIONS OF THE HOUSE
OF REPRESENTATIVES, AND THE
COMMITTEE ON FINANCE OF THE
SENATE.;
IO. WESTERN MINDANAO STATE

UNIVERSITY (WMSU),
11. CENTRAL MMDANAO

UNIVERSITY (CMU),
12. UNIVERSITY OF SOUTHEASTERN
PHILIPPINES (USEP),
13. UNIVERSITY OF SOUTHERN
MINDANAO (USM),
14. NORTHERN MWANAO STATE
INSTITUTE OF SCIENCE AND
TECHNOLOGY (NMSIST),AND
6.
released to the official designated

depository bank with DEPOSITED WITH
THE LAND BANK OF THE PHILIPPINES:
15. AURORA STATE COLLEGE OF
TECHNOWGY (ASCOT).
THE PCARRD AND THE DA-BAR
SHALL JOINTLY DETERMINE THE
AMOUNT OF GRANT TO EACH
INSTITUTION.THESE GRANTS SHALL BE
IN ADDITION TO THE GRANTS THAT
THE ABOVELISTED SCHOOLS WILL
RECEIVE IN ACCORDANCE WITH
SUBSECTION (D) HEREOF.
5.
Insert a new Section 2, subject to style,

to read
SEC. 2. SUPERVISORY COUNCIL. - A

SUPERVISORYCOUNCIL COMPOSED OF
THE SECRETARIES OF AGRICULTURE,
OF THE COMMISSION ON HIGHER
EDUCATION, OF THE DEPARTMENT OF
SCIENCE AND TECHNOLOGY, OR THEIR
REPRESENTATIVES WHO SHOULDHAVE
THE RANK OF UNDERSECRETARY,
A SENIOR VICE PRESIDENT OF THE
LANDBANK, OF THE SMALL BUSINESS
CORPORATION, AND THE COCHAIRS
OF THE CONGRESSIONAL OVERSIGHT
COMMITTEE ON AGFUCULTURE AND
FISHERIES MODERNIZATION (COCAFM)
SHALLOVERSEE THE IMPLEWATION
OF THIS FUND AND COLLECT THE
REPAYMENTS OF LOANS FROM ACEF
BORROWERS AND DEPOSIT THE SAME
WITH THE LANDBANK.
THE COMMISSION ON AUDIT
SHALL IMMEDIATELY CONDUCT AN
AUDIT OF THE ACEF FUND AND SUBMIT
ITS REPORT TO THE SUPERVISORY
COUNCIL, THE COCAFM AND THE
COMMITTEE ON APPROPRIATIONS
OF THE HOUSE OF REPRESENTATIVES
AND THE COMMITTEE ON FINANCE
OF THE SENATE WITHIN THREE
MONTHS OF THE EFFECTIVITY OF THIS
LAW.
On page 2, line 16, substitute the phrase
7.
On the same page, line 18, substitute the

phrase The Department of Agriculture
and the official depository bank with
THE SUPERVISORY COUNCIL AND
THE LAND BANK OF THE PHILIPPINES;
atid
8.
On the same page, line 21, delete the phrase

The Department of Agriculture (DA) in
consultation with all the concerned
stakeholder groups in the agricultural and
fisheries sectors and other agencies
concerned, in coordination with the
Congressional Oversight Committee on
Agriculture and Fisheries Modernization
(COCAFM), and in lieu thereof, insert THE
SUPERVISORYCOUNCIL.

There being no other individual amendment,
upon motion of Senator Magsaysay, there being no
objection, the Body closed the period of individual
amendments.

ON SECOND READING
Senate Bill No. 1837 was approved on Second
Reading.
PRESIDENTIAL CERTlFlCATION
Upon direction of the Chair, the Deputy Secretaty
for Legislation read the Presidents certification as
to the necessity of the enactment of Senate Bill
No. 1837, to wit:&
THURSDAY, FEBRUARY 8.2007
1494
MALACARANG PALACE
MANILA
November 4,2004
HON. FRANKLIN M.DRILON
Senate President
Philippine Senate
Pasay City
Committee Report No. 3, entitled:
AN ACT EXTENDING THE UTILIZ-
ATION PERIOD OF THE AGRICULTURAL COMPETITIVENESS

ENHANCEMENT FUND, AMENDlNG FOR THIS PURPOSE SECTION
8 OF REPUBLIC ACT NO, 8178,
ENTITLED AN ACT REPLACING

there being no abjection, the Deputy Secretary for
Legislation read only the title of the bill, to wit:
AN ACT EXTENDING THE UTILIZATION
PERIOD OF THE AGRICULTURAL
COMPETIVENESS ENHANCEMENT
FUND, AMENDING FOR THIS PURPOSE SECTION 8 OF REPUBLIC
ACT NO. 8178, ENTITLED AN ACT
REPLACING Q U N l T A T I W IMPORT
RESTRICTJONS ON AGRICULTURAL
FUND AND FOR OTHER PURPOSES.
The Deputy Secretary for Legislation called the
roll for nominal voting.
QUANITIATIWIMPORTRESIlUG
TIONS ON AGRICULTURAL
FUND AND FOR OTHER
PURPOSES:
to address the urgent need of strengthening the
intent of R.A. 8178 by extending the utilization
period of the Agricultural Competitiveness
Enhancement Fund (ACEF) from the mandated
nine years to the proposed fifteen years to help
provide farmers, fisherfolk and other agricultural
workers access to other sources of funds for
their enhancement activities.
In favor
Angara
Arroyo
Biazon
Cayetano
Drilon
Enrile
Flavier
Gordon
Lacson
Madrigal
Magsaysay
Osmeila
Patlgilian
Pimentel
Recto
Roxas
Vila
Against
Best wishes.
Very truly yours,
GLORIA MACAPAGAL-ARROYO
CC: HON. JOSE C. DE VENECIA, JR.
Speaker
Quezon City

ON THIRD READING
No. 1837.
None
Abstention
None
Upon motion of Senator Recto, the session was
suspended.
It was 12:35 a . m . p
1495
THURSDAY, k L RUARY 8,2007
I hereby certify to the correctness of the

foregoing.
At 12:35 a m , the session was resumed.
ADJOURNMENT OF SESSION
no objection, the Chair declared the session adjourned
until Thursday, February 8, 2007.
OSCAR G . YABES
It wus 12:36 a.m.
Approved on June 4, 2007

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RElPUBLlC OF THE PHILIPPINES

Almighty God, our Heavenly Father whose love

With 15 senators present, the Chair declared the

Grant our people and leaders wisdom, courage

Senators Angara, Gordon, Lapid, Madrigal,

Give to all who exercise authority the determination

Give them also clarity of vision to guide the

fervently pray that the unity we shared

Upon direction of the Chair, the Secretary of the

Upon motion of Senator Cayetano, there being

WEDNESDAY, FEBRUARY 7,2007

2. BSP Circular No. 558, series of 2007,

4. Memorandum No. M-2007-022, series

INTO A COMPONENT CITY TO BE

To the Calendar for Ordinary Business

AN ACT CONVERTING THE MUNICIPALITY OF TANDAG IN T H E

House Bill No. 5973, entitled

AN ACT CONVERTING THE MUNICIPALITY OF BAYBAY IN T H E

AN ACT AMENDING REPUBLIC ACT

House Bill No. 5990, entitled

Letter from the Secretary General of the House of

WEDNESDAY, FEBRUARY 7,2007

5 February 2007, the House of Representatives requested a conference and designated

Sponsor: Senator Ramon Bong Revilla Jr

To the Calendar for Ordinary Business

recommending its approval without amendment.

To the Committee on Rules

It was 4:13 p.m.

Sponsor: Senator Ramon Bong Revilla Jr.

To the Calendar for Ordinary Business

Upon direction of the Chair, Secretaly Yabes

Committee Report No. 261, submitted by the

recommending its approval without amendment

WEDNESDAY, FEBRUARY 7,2007

certify to the necessity of the immediate

NATIONAL INTERNAL REVENUE

to meet the public emergency borne out of

APPROVAL OF HOUSE BILL NO. 2933,

RESULT OF THE VOTING

Today, as we are about to conclude the Third

WEDNESDAY, FEBRUARY 7,2007

On many occasions, especially during the

Sa mga akasyong iyon, walang administrasyon, walang oposisyon. Lahat ay nagkaisa

These are righteous and law-abiding

As we are about to close the 13Ih Congress,

These are concerned citizens who have

If ever we met the expectations of our

With the Chambers kind indulgence, I pay

From Senator Drilon, I have come to have

I remember him providing comic relief and

WEDNESDAY. FEBRUARY 7.2007

Senator Flavier stands tall here today,

Senator Osmeria is the fearless fiscalizer and,

And of course, there is also Sen. Ramon

Mr. Senate President, you are the MI. Sipag

First, I express my deep admiration to you,

leadership that is demanded by these critical

Sen. Joker P. Arroyo is reputed to belong

And finally, I pay tribute and respect to my

WEDNESDAY. FEBRUARY 7,2007

In the Senate, she is mother to us all

a 24-hour duty guard and caregiver. Of course,

And to my colleagues who will remain with