"In societies where Robbing Hoods are treated like a celebrity it is but natural to expect political parties to act like a Mafia syndicate" Political Jaywalker "In a nation where corruption is endemic people tend to confuse due process with aiding and abetting criminals" Political Jaywalker "War doesn't determine who is right, war determines who is left" Bertrand Russell "You have just one flash flood of money, you keep your people poor. It's like a time bomb and it's scary" Philippine Lawmaker

Get the picture? The Philippine DEBT - from EDSA to the stolen election of 2004!

A leading advocate for good governance US based Loida Nicolas Lewis was shocked beyond belief upon seeing the graph of the Philippine DEBT – from EDSA to the stolen election of 2004, to quote:

My Goodness! Could this be true?
Then, PGMA is worst than Marcos!
Where is decency? How did this happen? What is Gary Teves doing?


Image
National government outstanding debt. Source: Bureau of Treasury.

That is so true and it is now 2010 and the public debt is almost 5 Trillion

And how did this happen?

Well for instance Jose Ibazeta has some explaining to do.

He was former head of PSALM the body formed in 2001 to implement the EPIRA mandate of privatizing the power generation capacity of NAPOCOR or NPC. before he was named Sec. of Energy. The purpose of privatization aside from promoting competition in the power sector is also to get rid of part of our external public debt. In 2001 that debt of NAPOCOR was about US$15 Billion.

Now 9 years later in his own words Ibazeta said that they have already privatized 98 percent of NPC's power generating capacity. However NPC is poised to go into new borrowing to service NAPOCOR's debt which still stands at close to the same 15 billion dollar figure. So how do you think was privatization implemented? it seemed that the crown jewels of NAPOCOR were sold out but the government was left with the debt - with NAPOCOR now just almost an empty hulk.

NAPOCOR is now faced with the problem of down sizing 50 percent of its work force -- when these employees should have been sent off with the privatized power generation capacities in a properly packaged privatization process.

Now Ibazeta is making noises about staying on as Energy Secretary -- what for? To do rear guard action - to clean up evidence - in a possible CRIME scene?

Ibazeta has to go! This is necessary whether he is innocent or not -- just for Noynoy to have a clean start in this energy area.

Imagine scenes like these happening in the entire PRIVATIZATION PROCESS and you see how our public debt can balloon up to such stratospheric levels.

Ever wonder who is behind Ashmore investments of London -- the erstwhile partner of Roberto Ongpin who together with Ramon Ang cornered the privatization deals of PETRON, MERALCO, and the govt. owned stocks in San Miguel?

Supposedly Tomas Alcantara and Benito Araneta sits in the board of the corporations of Roberto Ongpin and Ramon Ang. These personalities are known to be quite close to FG Mike Arroyo.

So do we have a better guess now as to who could be the very secret clients of Ashmore Investments? We may have no way to confirm it, nonetheless since there could be several layers of corporate veils hiding the actual principals.

When privatization deals are not done in a level playing field - full value is not gained by the public. The only harvest we get is an empty bag bereft of value and full of debts - with the prospect of more to come as government try a PONZI scheme to service these debts.

Hope we really get the picture!!!

___________________________________________________
More Articles from GRR:
**********************************************************************
Gil R. Ramos Ph.d. finished his Doctorate in Monetary Economics and Masters in Population Economics at the University of Hawaii. He did his AB Economics and also a Masters in Urban Regional Planning both at the University of the Philippines. He currently teaches MBA students at the (New Jersey City University) NJCU in Managerial Economics, Corporate Financial Management, and Managerial Information Systems. He runs his own consulting firm GRR Analytics based in the New York / New Jersey area.






Subscribe in a reader


Pedestrian Observer Group Blog
Click on the images to receive your free email updates
POGB will not sell, exchange, use or allow any 3rd party access to your email for
any other purposes without exception, email exclusively for article updates only.

Follow PJ @ Facebook, NetworkedBlogs, & Twitter

1 Speak Out:

Related Posts with Thumbnails