New Blood
President Arroyo has certainly hit the ground running in 2005 with a series of commendable appointments to the Cabinet and other key positions. Unlike last year, when the President appeared to be busy paying off political debts with questionable appointments, most of this year's choices have been met with approval by the business community.
Let's start with the twin appointments to the Secretary of Finance and the Secretary of Trade and Industry. Both are the key players and acknowledged leaders of the President's economic team and the subject of this edition's cover story. The transfer of Cesar V. Purisima from his old portfolio at the Department of Trade and Industry to his new post as Secretary of Finance underscores and makes official the key role he plays as the President's go-to man in terms of economic policy. Since becoming Secretary of Trade in January 2004, Purisima has been first among equals on the economic team. His shift to Finance is actually a better fit for him, given his background in finance, audit, and risk management.
Secretary Purisima's successor in Trade and Industry is the consensus choice in the business community as the right man for the right job at the right time. Secretary Juan B. Santos is a seasoned CEO, having led Nestle Philippines since 1987 (and concurrrently Nestle Singapore for a few years as well) and growing it out to the eighth-largest company in the country and the 12th largest Nestle in the world. His adherence to strong corporate governance and his eye for competitiveness are welcome qualities at DTI.
The President has likewise surprised people pleasantly with her appointment of Alberto Lina, CEO of the local Federal Express franchise, to the Bureau of Customs as its head. Given his large exposure in the freight forwarding and logistics businesses, nobody expected Lina to take on the job (and divest himself of his holdings). A major private sector player who knows the ropes inside Customs may be just what that agency needs.
The other welcome surprise is the retention of Commissioner of Internal Revenue Guillermo Parayno, long-rumored to be wanting out. Parayno, a systems-savvy executive is slowly closing loopholes at the BIR through an intensive information technology-enabled administration.
No other appointment looms larger and more important to the Philippine economy than the appointment of the Central Bank Governor, the country's top monetary man. With present Governor, Rafael B. Buenaventura, set to retire in July 2005, there was a growing list of names submitted to the President for consideration as Buenaventura's successor. The potential pitfall would be to succumb to vested interest lobbying and to delay the appointment down to the last-minute, thereby creating an environment for monetary instability and speculation. Here, the President has come through with flying colors, appointing an experienced insider in Amando M. Tetangco (currently Deputy Givernor) and naming him early enough to cut all speculative activity and lobbying efforts. Tetangco is a steady, cool performer well-known in international financial circles and has had the experience of actually running Bangko Sentral affairs for an extended period when Buenaventura was out on leave for a long stretch in 2004.
A few more tricky appointments await the President's decision for the balance of the year. The Chief of the Philippine National Police, Gen. Edgar B. Aglipay, retires on March 13, providing the President an opportunity to break the pattern of short term chiefs. Three members of the Monetary Board are also due for retirement by mid-year. Strong, independent-minded members will be needed here. Finally, the Chief Justice, Hilario Davide, Jr., retires just before year-end from the Supreme Court after having led it for a stretch that allowed some key reforms to sink in. The position is critical for political and economic reasons, given the type of cases the Court is asked to decide upon.
The quality of these Presidential decisions will have as much impact on people's lives as her policies and legislative platform will. |
