THURSDAY, 19 SEPTEMBER 2013
The Honorable Chairperson Loren Legarda,
Honorable Members of the Committee on Finance,
My Colleagues in Government,
Good morning!
Allow me at the outset to express my deep appreciation for this opportunity to present to the Honorable Members of the Committee the Department’s budget proposal for 2014.
Our annual budget exercise cannot succeed without the favorable understanding and backing of the Honorable Members of this august chamber in providing legislative input that are indispensable for transparency, accountability and whole-of-government ownership for our foreign policy. It likewise ensures that the legislative branch of our government is actively engaged in the fulfillment of the DFA’s mandate.
Our corps of 3,178 officers and staff stationed at the Home Office and in eighty-four (84) Foreign Service Posts work 24/7 in all corners of the globe in pursuit of our vision to advance the interest of the Philippines and the Filipino people in the world community.
The Department’s total budget of P10.94 billion in 2012 and P11.64 billion for the current year were put to good use as reflected in the Department’s accomplishments or Major Final Outputs (MFOs).
Under MFO1, Foreign Policy Services, a total of 3,450 policy recommendations were submitted to our external stakeholders, primarily the President, various Departments of the executive branch, as well as to the legislature. These policy recommendations revolved around the three (3) pillars of Philippine foreign policy: 1) the promotion of national security; 2) the enhancement of economic diplomacy; and 3) and the protection of the rights and welfare of Filipinos overseas.
In the area of national security, we sustained our efforts in defending the Philippines’ rights and entitlements in the West Philippine Sea (WPS) by pursuing a rules-based regime through legal, diplomatic and political tracks.
The arbitration case we have filed against China under the U.N. Convention on the Law of the Sea or UNCLOS is well underway. For the Philippines, an arbitral award will clearly define what is ours, specifically our maritime entitlements under UNCLOS with regard to our fishing right, rights to resources and rights to enforce our laws within our Exclusive Economic Zone (EEZ). For ASEAN and the rest of the global community, the clarification of maritime entitlements under UNCLOS would assure peace, security, stability and freedom of navigation in the West Philippine Sea (WPS).
At the same time, though we pursued initiatives to formally establish the country’s archipelagic sea lanes and maritime zones, congressional action in passing these bills is still urgently needed.
The Department was at the forefront of government’s efforts that contributed to the resolution of the incident in Lahad Datu, with focus on providing humanitarian and consular assistance to Filipinos affected by the incident.
We strengthened bilateral cooperation with our allies and like-minded countries in the political and defense/security fields to help the country improve its defense capability and support the attainment of a minimum credible defense posture.
Key to these engagements is our defense partnership with the U.S. In 2012, we held high-level engagements with U.S. officials, highlighted by the official visit to the U.S. of President Benigno S. Aquino III, the holding of the 2+2 Ministerial Consultations, and two (2) bilateral strategic dialogues.
Currently, we are negotiating the Framework Agreement for the proposed Increased Rotational Presence (IRP) of U.S. Forces in Philippine territory, which will contribute in accelerating the modernization of the AFP, inter-operability, capacity building and enhanced capability for humanitarian assistance and disaster response
Aside from the U.S., we promoted defense cooperation initiatives with other countries. From 2012 to July of this year, we successfully facilitated the conclusion and signing of forty (40) agreements on political and security matters, and secure Senate concurrence in the ratification of the Status of Visiting Forces Agreement with Australia, and Mutual Legal Assistance Treaties with China and the United Kingdom, among others.
In the region and in the world, the Philippines, as part of its responsible global citizenship, remained active in key forums that promote international trust, confidence and cooperation. We sustained our participation in organizations such as ASEAN, the ASEAN Regional Forum, APEC, the Asia Europe Meeting (ASEM), and the United Nations System that set norms and rules to build a safer and more peaceful international environment.
The Philippines is one of the top troop-contributing countries to UN Peacekeeping Operations. As of August 2013, we have 714 Peacekeepers in seven (7) mission areas.
We remain engaged in global governance and cooperation efforts that involve, among others: 1) combating transnational threats such as terrorism and extremism, 2) disarmament and arms control; 3) interfaith and inter-civilizational and inter-cultural understanding and tolerance; 4) disaster preparedness and response; 5) social justice; 6) global migration; 7) international humanitarian law; and, 8) human rights.
With respect to climate change management, adaptation and mitigation, the Department fulfilled a dual task of ensuring coherence in Philippine positions, consistent with the national interest, in climate change negotiations, particularly on climate financing, and in the implementation of multilateral environmental agreements and conventions. At the same time, we have intensified our cooperation with partner agencies, both at the domestic and international levels, to enhance our country’s capacity to effectively address this very vital concern.
The Department did its part in raising the country’s profile and standing in the international community by reinforcing the value of “summit diplomacy.” Since 2012, we embarked on fifty-two (52) high-level visits, twelve (12) of which were headed by the President. We also hosted twelve (12) Heads of State or Government and seventeen (17) Foreign Ministers. For the remainder of the year, we expect to receive at least four (4) Heads of State or Government, highlighted by the forthcoming visit of U.S. President Barack Obama.
In economic diplomacy, the men and women of the DFA continue to be at the front lines in the promotion of our nation's economic interests, especially where other Departments have no overseas presence. Our Foreign Service Posts actively engaged bilateral, regional and global partners in the areas of: 1) trade, investment, services and tourism promotion; 2) technology transfer; 3) Official Development Assistance (ODA) and development cooperation; 4) human resources development; and 5) institutional capacity-building, with a common goal in mind – to support the attainment of the administration’s goal of reducing poverty and achieving inclusive growth.
The Department facilitated the conduct of seven-hundred and eleven (711) trade missions in various parts of the world. These include scoping missions to explore new economic frontiers outside of the traditional markets for Philippine goods and services, such as Kazakhstan, Mongolia, South Africa, Angola, Nigeria and Seychelles.
We also convened and participated in three-hundred and three (303) bilateral joint commissions and consultations – formal mechanisms which provide an effective venue for advancing our external partnerships.
The Department sustained its active representation of Philippine economic interests in various regional and international fora. It is worth noting that 2014 will be important in preparing for the Philippine Chairmanship of APEC in 2015. The hosting of APEC, our second since 1996, will reaffirm the leadership role that the Philippines is able to play in the global arena. Our APEC Chairmanship will also advance our agenda with respect to regional integration and development. This is an enormous responsibility, which should merit the full support of this Chamber.
Aside from these, the Department successfully facilitated the conclusion and signing of sixty-one (61) agreements on economic and trade matters, including the Philippines-EU Partnership and Cooperation Agreement, Agreements on Fisheries and Agriculture Cooperation with Kuwait and Qatar, and Air Services Agreements with Australia and Korea.
Through the South-South Cooperation mechanism under relevant UN resolutions, the Philippines generated substantial goodwill with its international partners by sharing technical expertise and knowledge with least developed countries. Since 2012, the Technical Cooperation Council of the Philippines has conducted various technical cooperation programs for partners such as Bhutan, Laos, Myanmar, and Timor-Leste.
We embarked on cultural diplomacy to enhance international understanding. We consider Cultural Diplomacy as an important instrument in any country's diplomatic armory as it supports the government’s current thrust for increased tourism arrivals, as well as the expansion of trade and investment opportunities.
At the same time, we continued to undertake a proactive public diplomacy program to promote the three pillars of Philippine foreign policy in order to generate public awareness and support for key programs and activities in line with the Philippine Government's development goals.
In line with our second Major Final Output (MFO) - Diplomatic and Consular Services – we sustained our efforts in providing efficient and people-friendly consular services and assistance for our nationals abroad and, wherever appropriate, at home.
We have made improvements, which we will sustain, in serving the public such as the opening of 11 new consular offices in various malls, conduct of mobile passport services both in the Philippines and abroad and an increase in the number of appointments per day at the main passport office in ASEANA – from 2,500 to 4,000. We are now located in 24 sites all over the country, providing efficient consular and assistance-to-nationals services.
With respect to Overseas Voting, the Department exerted best efforts to carry out its mandate under Republic Act 9189. We conducted a vigorous information dissemination campaign to encourage overseas Filipinos to register for, and vote in, the national elections last May, utilizing information technology platforms, social and print media, public service announcements through the Filipino Channel and other media organizations, as well as celebrity endorsers, posters, flyers, bookmarks, t-shirts, among others.
In addition, the Foreign Service Posts conducted 178 outreach sorties. A total of 398,554 new applicants were registered for the May 2013 elections, a 68.9% increase over the 235,950 new registrants for the 2010 presidential elections, and which resulted into an increase in the total number of valid overseas registered voters by 25% from 589,830 to 737,759. At the May 2013 elections, a total of 118,795 overseas Filipinos cast their vote, representing 16.10% of the total number of register overseas voters.
The President holds close to his heart the issue of protecting the rights and promoting the welfare of overseas Filipinos. Taking care of our nationals abroad is an utmost priority of the Department of Foreign Affairs as mandated by the Migrant Workers Act.
Since 2012, we have facilitated the negotiation and signing of twenty (20) bilateral and multilateral agreements that will strengthen labor cooperation by enhancing the enforcement of the rights of workers to a safe and healthy work environment in destination countries. Among these were the Agreement on Domestic Workers Recruitment with Saudi Arabia, and the Labor Cooperation Agreement with Lebanon. The Convention concerning Decent Work for Domestic Workers or ILO Convention 189, which was concurred in by the Senate 06 August 2013, came into force on 05 September 2013.
The Department extended assistance to a total of 34,115 overseas Filipino workers (OFWs) and members of their families from 2012 until the first semester of 2013. These include OFWs in distress, those facing criminal charges including for capital cases, Filipino seafarers held hostage by Somali pirates, and human trafficking victims.
We took the lead role in the repatriation of nearly 20,000 Filipinos in countries torn by civil strife and natural disasters since 2011. In Syria for example, we have repatriated since December 2011, a total of 4,772 Filipinos as of 13 September 2013. We are also undertaking the ongoing repatriation of Filipinos in Egypt, which, as of 17 September, has reached one hundred (100) OFWs. I have recently travelled to Syria and Egypt to personally oversee the preparedness of our personnel in ensuring the success of our repatriation efforts. We have not lost a single life in situations within our control consistent with our policy that no Filipino is left behind.
I wish to stress that the issue of repatriation has required constant DFA attention and initiative. Their resolution is complex, since they do not just include our government but often many different foreign actors.
Our paramount concern in Syria and the immediate vicinity remains the welfare of our Filipinos there, which is manifested in our current repatriation efforts to get our nationals out of harm’s way. Strategic silence means we do not participate in proceedings in the UN where resolutions condemning actions of certain governments are put to a vote. This position ensures that we maintain cooperation with the concerned governments to guarantee that our repatriation efforts are not hampered.
We also assisted those who are serving sentence or have pending criminal and labor cases which as of July 2013, total to 5,932 individuals. Currently, there are eighty-three (83) overseas Filipinos who are facing the death penalty for various criminal offenses.
A total of six-hundred ninety-six (696) Filipinos are currently serving their sentence for drug-related offenses. In view of these alarming figures, we continue to actively coordinate with law enforcement agencies in the Philippines and abroad in the arrest and prosecution of members of drug syndicates victimizing OFWs.
On human trafficking and illegal recruitment, we have assisted a total of 3,856 overseas Filipinos, whose cases have been properly endorsed to law enforcement agencies. Aside from closer coordination with the Inter-Agency Committee against Trafficking (IACAT) and relevant international bodies, the Department also facilitated the ratification of bilateral and multilateral agreements calling for the increased cooperation in preventing human trafficking.
We have equipped all our Foreign Service Posts with a 24/7 Assistance-to-Nationals (ATN) mobile hotline which potential victims may contact anytime to seek assistance. Appropriate support services such as rescue, temporary shelter, provision of food and other basic needs, medical and hospital assistance, police blotter, settlement of labor problems, repatriation, and if warranted, assistance in the filing of charges against the trafficker(s) are extended to victims.
As of 31 August 2013, the Assistance-to-Nationals (ATN) Fund has a remaining balance of P153.769 million. In 2012, we spent P268 million. Twenty-four percent (24%) of this amount was used for repatriation. In the first eight (8) months of 2013, we have already obligated P208.9 million. In view of the projected increase in the number of ATN cases, we propose an increase in the ATN fund from 150 million in 2013 to 300 million in 2014.
The Legal Assistance Fund (LAF), on the other hand, has a remaining balance of P41.12 million. We propose P30 million for the LAF in 2014, which is the same amount appropriated in 2013. To increase its utilization, the DFA issued Memorandum Circular 07-13 which rationalized the LAF and which now includes cases other than drug trafficking and the prioritization of human trafficking victims.
Let me also provide assurance to the Honorable Members of this Committee that the DFA will remain unrelenting in undertaking all reforms necessary to avoid any recurrence of the so-called “sex-for-flight” problem. This will include the rationalization of the management of all Migrant Workers and Overseas Filipinos Resource Centers (MWOFRC) at our Foreign Service Posts. We will also focus on what needs to be done to strengthen the One-Country Team Approach. For the DFA, this will be a matter of the highest priority and we will keep you fully informed.
As the honorable members of the Senate are aware, we closed ten (10) Embassies and Consulates General in 2012 in order to rationalize the operations of the Department, and by re-aligning our personnel and resources to ATN-heavy Posts.
We upheld meritocracy over seniority, putting into motion a performance-based system of recognition in the Department. We instituted a continuing education program to help our people hone and upgrade their skills and knowledge. This included: 1) Economic Diplomacy and Management Training for our senior officers at the Asian Institute of Management; 2) on-site language training for our all foreign service personnel; and 3) funding of masteral degree programs until next year and possible on-line training courses. We are doing this even as the Foreign Service Institute, the training arm of the Department, continues to implement regular training programs for all personnel.
Our proposed budget for 2014 is P12,143,568,000 – representing an increase of 4.29% over the Department’s budget for 2013. This represents only 0.59% of the total budget proposal of the national government.
Broken down by expense class, approximately 80% of our total budget will be allotted for Personnel Services and MOOE.
In terms of the agency expenditure program, approximately 81% of the Department’s proposed budget will be earmarked for Operations.
Our foreign policy needs a budget that can help equip the nation to face old and new challenges. Hence, our budget proposal this year, as before, will support the Three Pillars of Philippine foreign policy.
For our key strategies in 2014 for Foreign Policy Services, we propose P602.17 million.
For our key strategies to deliver consular and diplomatic services, we propose Php 9.2 billion.
We need a budget to maintain the quality of our frontline services and the existing physical infrastructure for providing them. We will continue to modernize consular systems and services, including the P1.961 billion for E-Passport Project for the production and issuance of 3.018 M passports, and P42 million for 400,000 visas.
As part of the Department’s thrust to improve services to Filipinos overseas, we propose to increase the Building Fund from 10% to 20% of the consular income. The Building Fund will be used to fund the acquisition and construction of properties in ASEAN countries and Foreign Service Posts with large Filipino population and high incidence of ATN cases. In 2013, the Building Fund is P482 million. With the increase in percentage of consular collections, we propose P1.035 billion in 2014.
Finally, the 2014 Budget also aims to support our own institutional strengthening to enable the DFA to sustain the level of its service delivery and international engagements. These measures will include the strengthening of internal DFA management and accountability systems, the greater use of Information Technology (IT) to support administrative and financial efficiency, and the expansion and renovation of the DFA's buildings that are needed for its work and by the public.
We also endorse, for approval, the budget proposals of the three (3) agencies attached to the Department, namely the Foreign Service Institute in the amount of P43.94 million, the UNESCO National Commission in the amount of PP16.28 million, and the Technical Cooperation Council of the Philippines in the amount of P4.40 million, and whose Major Final Outputs, as shown in the succeeding slides, directly contribute to the DFA’s organizational outputs and outcomes.
Thank you for your kind attention. END