Local gov't execs wary of controversies hounding GMA

By Maricar M. Calubiran

The country's strong organization of local authorities led by mayors are concerned with the economic crisis the nation is currently experiencing due to controversies on jueteng and wiretapped phone conversation between the President and Commissions on Elections Commissioner Virgilio Garciliano.

League of Cities president and Iloilo City Mayor Jerry Treñas said they are worried of the economic situation of the country because of the issues affecting the President. The LCP along with organizations under the Union of Local Authorities in the Philippines (ULAP) recently passed a resolution expressing their full support to Mrs. Arroyo. ULAP also condemned to the strongest possible terms any and all forms of extra-constitutional means to effect changes in the government

Treñas said they should center their attention on the economic aspect of the governance other than engaging in the too-much politicking. “The economy is greatly affected.” He, believes the administration will survive the crisis.

The political instability of the country has aggravated the economic crisis. It will worsen should the government fails to address. In two weeks time, the new Value Added Tax (VAT) will take effect, he said.

The VAT implementation will create an impact to way the government is running its economic affairs. Much debate had been made prior to the approval of VAT. The new Vat law alone is expected to generate at least P30 billion for the rest of 2005 and up to P140 billion next year. Most of it intended to cover the budget deficit.