THANK YOU, SECRETARY ROMULO FOR YOUR INTRODUCTION.

AND I'D LIKE TO THANK THE CABINET MEMBERS, MOST OF WHOM ARE HERE WITH US TODAY ON THE CELEBRATION OF NATIONAL HEROES DAY AND BONIFACIO'S BIRTHDAY.

I'D LIKE TO THANK ALSO CONGRESSMAN TEDDY BOY LOCSIN, NOT ONLY FOR BEING HERE BUT FOR HELPING ME PUT THE THOUGHTS TOGETHER THAT I WILL SHARE WITH YOU TODAY.

I'D LIKE TO THANK NOT ONLY THE CABINET MEMBERS BUT ALL OF THE OTHER OFFICIALS WHO ARE HERE WHETHER CIVILIAN OFFICIALS OR MILITARY OFFICIALS, WHETHER NATIONAL OFFICIALS OR LOCAL GOVERNMENT OFFICIALS, A LOT OF WHOM ARE HERE; AND OF COURSE, OUR COMMISSIONERS: BAMBAM AQUINO, MARK GASTRODES,
ARIEL ARCILLA; OUR OTHER COMMISSIONERS WHO TOOK THEIR OATH OF OFFICE TODAY FOR BEING THE PRIME ORGANIZERS OF THIS EVENT; TO ALL OF YOU MEMBERS OF THE YOUTH ORGANIZATIONS, STUDENT LEADERS WHO ARE HERE TODAY; DISTINGUISHED GUESTS; MGA KABABAYAN:

ANG ARAW NG MGA BAYANI NG BANSA -- IYAN ANG IPINAGDIDIRIWANG NATIN ITONG ARAW NA ITO. AT PINAGDIDIRIWANG DIN NATIN ANG KAPANGANAKAN NG DAKILANG ANAK-PAWIS, SI ANDRES BONIFACIO. AT GINUGUNITA, SINASARIWA, GINUGUHIT SA ISIP ANG PAG-USBONG NG KALAYAAN SA ATING BAYAN MULA SA DALAWANG TANIM: ANG NASANG KUMAWALA SA PANINIIL AT ANG PAG-ASANG UMAHON SA KAHIRAPAN.

INDEED, THE BIRTH OF OUR NATION SAW THE START BY ANDRES BONIFACIO OF TWO STRUGGLES: ONE FOR FREEDOM FROM FOREIGN CONTROL AND THE OTHER FOR FREEDOM FROM POVERTY.

IISANG SANDATA ANG HAWAK NATIN DITO SA DALAWANG PAKIKIBAKA: ANG MATATAG NA REPUBLIKA, HANDANG IPAGSANGGALANG ANG BANSA AT MAGDULOT NG MATIMBANG NA PAG-ANGAT SA BUHAY NG MGA PILIPINONG NAPAKARAMI'Y LUGMOK PA RIN SA KAHIRAPAN MAHIGIT SANDAANG TAONG PAGKALAYA.

A STATE IS WEAK IF DOMINANT CLASSES OR SECTORS CONTROL IT OR SHAPE ITS POLICIES, ESPECIALLY THOSE DEALING WITH THE ECONOMY. THIS IS OUR DECADES-OLD FUNDAMENTAL WEAKNESS. FROM BONIFACIO AT BALINTAWAK TO CORY AQUINO AT EDSA, WE HAVE STRUGGLED TO CORRECT THIS WEAKNESS BY BRINGING
POWER TO THE PEOPLE.

WALANG BAYANG NANGUNA SA MUNDO SA TULAK NG PANLILINLANG NG SARILI AT KAPWA. WALANG BANSANG UMAKYAT SA PAKPAK LAMANG NG PAGNANAIS MAHIGTAN ANG ABOT NG TUNAY NITONG KAKAYAHAN.

AND SO, I DO NOT AND WILL NOT MAKE POLICY ON THE BASIS OF BASELESS FEARS.

TAKE THE MERALCO ISSUE. I TELL OUR PEOPLE AGAIN: "IF THE SUPREME COURT ORDERS WITH FINALITY THAT THE REFUND WILL BE IMPLEMENTED, I WILL MAKE SURE THAT YOU, THE CONSUMERS, WILL GET YOUR REFUND." (APPLAUSE) OUR CONCERNS WILL BE EXCLUSIVELY: JUSTICE THROUGH FULL RESTITUTION FOR MERALCO'S  CONSUMERS AS THE SUPREME COURT RULES, BUT WITHOUT UNDERMINING THE STABILITY OF THE NATION'S LEADING ENERGY COMPANY.

ON THE PEA ISSUE. ARISING FROM ANOTHER OF ITS CONTROVERSIAL PROJECTS BEGAN IN THE PREVIOUS ADMINISTRATION, LET ME MAKE MYSELF VERY CLEAR: "I AM ABOLISHING THE PUBLIC ESTATES AUTHORITY" (APPLAUSE) I'M ABOLISHING IT THROUGH A BILL I WILL SUBMIT TO CONGRESS NEXT WEEK. ALL ITS ASSETS, MOSTLY PUBLIC LANDS, SHALL BE TRANSFERRED TO THE APPROPRIATE AGENCIES, WHICH WILL HOLD STRICTLY TO ACCOUNT THE OFFICIALS CONCERNED.

I HAD ALREADY ACCEPTED THE RESIGNATION OF ALL THE CURRENT MEMBERS OF THE PEA BOARD, INCLUDING THE GENERAL MANAGER. NOW, I'M DISMISSING THE DEPUTY GENERAL MANAGERS, THE ASSISTANT GENERAL MANAGER, AND THE SENIOR CORPORATE ATTORNEYS. I'M REFERRING THIS LATEST CONTROVERSY TO THE OMBUDSMAN FOR THE FILING OF THE APPROPRIATE CHARGES AGAINST ALL OFFICIALS INVOLVED, INCLUDING THE OLD PEA BOARD MEMBERS. (APPLAUSE)

THE PIATCO ISSUE. THE SOLICITOR GENERAL HAS SUBMITTED TO THE SUPREME COURT THE GOVERNMENT POSITION THAT ALL FIVE AGREEMENTS COVERING NAIA 3 ARE NULL AND VOID.

I'VE RECEIVED PRELIMINARY REPORTS THAT A SIGNIFICANT CHUNK OF THE AIRPORT'S COST OF THE 657 MILLION DOLLARS DIDN'T GO TO ACTUAL CONSTRUCTION COSTS. NO WONDER THE NECESSARY ACCESS TUNNEL CONNECTING TERMINAL 3 TO TERMINAL 2 IS STILL MISSING. THERE'S NOT EVEN A ROAD.

I'M SWORN TO UPHOLD THE LAW, HOW THEN CAN I HONOR CONTRACTS CONTRARY TO LAW. WHAT I CAN DO IS TO ORDER A CRIMINAL INVESTIGATION INTO THE PIATCO PROJECT WITH A VIEW TO THE PROSECUTION OF THE PARTIES RESPONSIBLE FOR THE GROSS IRREGULARITIES. (APPLAUSE) LET ME, HOWEVER, ASSURE THE STAKEHOLDERS:
YOUR LEGITIMATE CLAIMS WILL BE HONORED TO THE LAST PESO AND THE TERMINAL WILL OPEN EARLY NEXT YEAR. (APPLAUSE)

THE BUDGET DEFICIT. FOLLOWING THE 1997 ASIAN CRISIS, PUBLIC REVENUES STEADILY DECLINED FROM 19 PERCENT OF GDP IN 1997, TO 17 PERCENT IN 1998,  TO 16 PERCENT IN 1999, TO 15 PERCENT IN THE YEAR 2000. THIS TREND HAS
ROBBED US OF THE RESOURCES TO SPEND ON IMPORTANT INITIATIVES.

IN MY FIRST YEAR AS PRESIDENT, WE WERE ABLE TO ARREST THE DECLINE AND SUSTAIN THE RATIO OF 15 PERCENT IN 2001. HOWEVER, THE DECLINE HAS RESUMED THIS YEAR AS TERRORISM ADDED ITS TOLL TO THE GLOBAL RECESSION.

IN THIS COUNTRY, PEOPLE DON'T PAY THE RIGHT TAXES, ESPECIALLY THOSE WHO CAN AFFORD IT. THE CUSTOMS, THE BIR, THE NEW ANTI-SMUGGLING INTELLIGENCE AND INVESTIGATION COMMISSION, NOW LED BY NEW COMMISSIONERS, MUST WORK HARDER SO THAT WHETHER YOU ARE BIG BUSINESS OR SMALL FORGET THE ACCOUNTING TRICKS, JUST PAY YOUR TAXES AND DUTIES OR SEE YOU IN COURT. (APPLAUSE)

THE 2 MILLION-DOLLAR MAN. IF THE CHARGES ARE TRUE, ALL THAT MONEY IS NOT REFLECTED IN ANYBODY'S INCOME TAX RETURN. IF CHARGES ARE TRUE, EVERYONE INVOLVED IS GOING TO JAIL AT LEAST FOR TAX EVASION IN ADDITION TO BRIBERY.

TO THE MAN WHO CLAIMS TO HAVE BLOWN THE WHISTLE I SAY, "TIME TO SHOW THE EVIDENCE AND FILE THE CASE IN COURT. AND HURRY UP BEFORE YOU ARE EXTRADITED." (APPLAUSE)

DALAWAMPUNG BUWAN NA MULA NANG MANUNGKULAN AKO. I THINK I'VE LEARNED AND I WANT TO SAY THAT I'VE GROWN IN THIS OFFICE, APPEARANCES NOTWITHSTANDING.

(APPLAUSE)

WITH WHAT I'VE LEARNED, I FACE THE FUTURE WITH A DEEPER GRASP OF THE PROBLEMS, A BETTER SENSE OF THE WAY TO GO, AND A CONFIDENCE THAT TOGETHER WE SHALL OVERCOME. THE NEXT SIX MONTHS WILL SHOW THIS.

UPANG MAKALIKOM NG YAMAN PARA SA ISANG MATATAG NA REPUBLIKA NG PILIPINAS, BUMUBUO TAYO NG MAHUSAY NA GRUPO NG OPISYAL NA MAGPAPALAKI NG SINGIL SA BUWIS AT TARIPA. SAMANTALA, PAKIKILUSIN NATIN ANG MGA BANGKO UPANG PONDOHAN ANG PABAHAY, MUNTING NEGOSYO AT PAGSASAKA. GUMAGAWA RIN TAYO ANG MGA PATAKARAN PARA PUMUNTA ANG PRIVATE SECTOR SA NAPAKAHALAGANG INDUSTRIYA NG KORYENTE.

THE PASSAGE OF THE SPECIAL ASSET MANAGEMENT COMPANY BILL OR SAMC, NOW IN BICAMERAL CONFERENCE COMMITTEE IN CONGRESS, SHOULD FREE UP MORE BANK RESOURCES FOR HOUSING AND OTHER DEVELOPMENTAL PROJECTS THAT THE GOVERNMENT IS NOT IN A FISCAL POSITION TO FUND.

AT KAILANGAN NATING IPAGBILI ANG TRANSCO, ANG OPERASYON NG NAPOCOR SA DISTRIBUSYON NG KORYENTE, UPANG MAGAMIT ANG SALAPING GINUGUGOL NGAYON SA PAGKALUGI NITO. KIKITA RIN ANG GOBYERNO NG HINDI BABABA SA TATLONG BILYONG DOLYAR SA PAGBENTA NG TRANSCO, AT MAHIGIT SANDAANG BILYONG PISO SA PAGHUSAY NG SERBISYO SA ELEKTRISIDAD. WE ARE HOPEFUL THAT THE SENATE WILL PASS THE TRANSCO BILL TO BRING THIS ABOUT AS EXPEDITIOUSLY AS THE HOUSE OF REPRESENTATIVES DID.

TO IMPROVE THE QUALITY OF THE GOVERNMENT WORKFORCE FOR A STRONG PHILIPPINE REPUBLIC, WE SHALL HAVE TIME FOR SUBSTANTIVE IMPROVEMENTS -- FIRST, IN AFFORDABLE HOUSING WHERE THE NEEDS OF TEACHERS, SOLDIERS, POLICEMEN AND OTHER GOVERNMENT EMPLOYEES WILL BE ADDRESSED IN AN ESPECIALLY PACKAGED
PROJECT. AT SA PAGTATAYO  RIN NG MGA BAGONG SENTRO NG PAMAHALAAN, MAGBUBUKAS NG BAGONG PAGKAKATAON PARA SA PAG-ANGAT NG KANILANG BUHAY AT TRABAHO.

PARA SA DAGLIANG IKABUBUTI NG TAGASIYUDAD, SISIMULAING IPAGSAMA ANG MGA MODERNONG SISTEMA NG TRANSPORTASYON AT ANG MGA BAGONG SENTRO NG GOBYERNO UPANG LUMAGO ANG MGA KALUNSURAN SA LABAS NG KAMAYNILAAN. SISIMULAIN NATIN ANG PAGTAYO NG BAGONG PARAANG MAPAGANDA ANG BUHAY SA SIYUDAD. HALIMBAWA, TRANSPORTASYONG PANGMASA NA MAAASAHAN AT ABOT-KAYA SA PAGITAN NG METRO
MANILA AT MGA KARATI G PROBINSIYA. EXTENSIONS OF THE NORTH AND SOUTH EXPRESSWAYS AND THE RAIL LINK TO THE NORTH WILL BE UNDER WAY. AND MY DREAM OF A ROLL-ON/ROLL-OFF PORT-LINKED ARCHIPELAGO HAS BROKEN GROUND WITH FUNDING FROM THE DEVELOPMENT BANK OF THE PHILIPPINES.

PARA SA DAGLIANG IKABUBUTI NG TAGABUKID, BABAWASAN NG MGA MODERNONG SISTEMA NG TRANSPORTASYON ANG GASTOS SA PAGDADALA NG MGA PRODUKTO MULA SA LALAWIGAN PATUNGO SA INDUSTRIYA AT KALUNSURAN. SAMANTALA, SALAMAT SA BATAS TUNGKOL SA PAGSASANGLA NG LUPANG SINASAKA, NA PINASA NG KAMARA NOONG HUWEBES, MAAALIS ANG ISANG MALAKING BALAKID SA PAGPASOK NG PUHUNAN SA AGRIKULTURA.

AKO'Y NAGPAPASALAMAT KAY SECRETARY LEONY MONTEMAYOR NA NANGGALING SA HANAY NG NGO NA NAPANGIBABAW NIYA ANG BOSES NG MALILIIT NA MAGSASAKA. KAYA NAKUHA NATIN MGA BATAS PARA SA KANILA; MGA PATAKARAN NG EHEKUTIBO PARA SA KANILA. NOW, THE NEW LAW ON AGRICULTURAL LAND AS COLLATERAL WILL OPEN UP A WHOLE NEW WORLD OF VAST OPPORTUNITIES FOR THE FARMERS TO GRADUATE FROM
SUBSISTENCE-LIVING ADVOCATES TO MODERNIZING AGRI-BUSINESS PRACTITIONERS. AND TO INITIATE THIS GRADUATION, THIS TRANSFORMATION, I AM APPOINTING AGRI-BUSINESSMAN LUIS LORENZO AS THE NEW SECRETARY OF AGRICULTURE. (APPLAUSE)

SI SONNY ALVAREZ MARAMING SINAKRIPISYO UPANG IPA-IRAL ANG KANIYANG MGA PANINIWALA TUNGKOL SA LIKAS-YAMAN. IN THE NEXT TWO WEEKS, HE MUST FIRM UP INITIATIVES ON ENVIRONMENT, ESPECIALLY TOXIC AND HAZARDOUS WASTE, WATERSHED, AND THE SOCIAL JUSTICE PROGRAM OF THE MACAPAGAL-ARROYO GOVERNMENT TO BUILD A NEW DIWALWAL. THEN, ON DECEMBER 15, HE WILL MOVE ON AND TURN OVER THE DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES TO HIS SUCCESSOR, THE NOTED ENVIRONMENT EXPERT ELISEA GOZUN, WHOM THE ENVIRONMENTALIST KNOW AS BEBET GOZUN. (APPLAUSE)

THE OTHER INITIATIVES, INCLUDING A PROGRAM FOR YOUTH EMPOWERMENT, WILL SOON REVEAL THEMSELVES IN THEIR IMPLEMENTATION. I KNOW THAT PEOPLE HAVE BECOME CYNICAL AND WILL BELIEVE ONLY WHAT THEY SEE.

TRUST ME, YOU WILL SEE WHAT SERIOUS GOVERNMENT CAN DO AS OPPOSED TO WHAT A MERELY POPULAR GOVERNMENT JUST PROMISES.

I THANK THE NATIONAL YOUTH COMMISSION FOR INITIATING THIS NATIONAL HEROES' DAY CELEBRATION. OUR NATIONAL HEROES WERE YOUNG. RIZAL WAS 26 YEARS OLD WHEN HE WROTE THE NOLI ME TANGERE. AGUINALDO WAS 29 WHEN HE BECAME PRESIDENT OF THE FIRST REPUBLIC. BONIFACIO WAS 33 AT THE CRY OF BALINTAWAK. NINOY AQUINO, OUR MODERN DAY HERO, WAS 22 WHEN HE FIRST ENTERED POLITICS.

THE YOUTH REMIND US WHY WE HAVE TO STRENGTHEN THE PHILIPPINE REPUBLIC. THE INSTITUTIONS WE BUILD TODAY WILL SURVIVE BEYOND US, FOR THE YOUTH NOW AND THE YOUTH OF THE FUTURE.

THE THINGS WE NEED REQUIRED TIME TO GET STARTED. THEY WILL EVEN NEED MORE TIME TO GET FINISHED AND FELT. BUT THEY ARE THERE QUIETLY AND SURELY BEGINNING. DON'T LET IMPATIENCE THROW IT ALL AWAY. STAY THE COURSE. STAY WITH ME.

SINO PA ANG MAG-AAHON SA BAYAN, SA KAHIRAPAN NG MGA PILIPINO KUNDI ANG MATATAG NA REPUBLIKANG PILIPINAS.

MARAMING SALAMAT SA INYONG LAHAT. (APPLAUSE)