Estrada CS Reform

1. JOSEPH ESTRADA CIVIL
SERVICE REFORM

2. The presidency of Joseph Estrada, also known as the Estrada administration,
spanned 31 months from June 30, 1998, to January 20, 2001.
Estrada campaigned on a pro-poor platform. He ordered the removal of all sovereign
guarantees on contracts for public projects which would require the sovereign Filipino
people to assume the financial losses of private companies doing business with the
government.
He made efforts to clean the bureaucracy by ordering the immediate relief of corrupt
officials in the military and police hierarchy.
He ordered a wide-ranging investigation of all government contracts entered into by the
previous administration to ensure these were above-board and directly advantageous
to the citizenry.
He also ordered the investigation of suspected big-time tax evaders including
individuals who had contributed to his presidential campaign. He undertook an
aggressive housing program on a national basis, targeting low-cost homes for the
poor.

3. •Second RP-US Visiting Forces Agreement
•Philippine Clean Air Act of 1999 (Republic Act No. 8749) - designed to protect and preserve the environment and ensure
the sustainable development of its natural resources.
•Incentives for Regional Headquarters of Foreign Multinationals (Republic Act No. 8756) - The measure grants host of
incentives to multinational firms establishing their regional hubs in the country.
It also provides a tax- and duty-free operating environment for them, and multiple entry visas to expatriates and their
families, as well as a flat income tax rate of 15%.
He declared an "all-out-war" against the Moro Islamic Liberation Front (MILF), which led to the
capture of the largest camp of the MILF.
Speeches
•Inaugural Address, (June 30, 1998)
•First State of the Nation Address, (July 27, 1998)
•Second State of the Nation Address, (July 26, 1999)
•Third State of the Nation Address, (July 24, 2000)
Major acts and legislation

4. •Retail Trade Liberalization Act (Republic Act No. 8762) - The bill dismantles 40 years c
state protectionism over the country's retail trade industry and opens the sector to bi
foreign players.
•New General Banking Act (Republic Act No. 8791) - The measure opens up the local
banking industry to foreign players after almost 50 years of having it exclusively reserved
and protected for Filipino nationals.
•Electronic Commerce Act of 2000 (Republic Act No. 8792) - Outlaws computer hacking and
provides opportunities for new businesses emerging from the Internet-driven New
Economy.
•New Securities Act (Republic Act No. 8799) - This law liberalizes the securities market by
shifting policy from merit regulation to full disclosure. With its strengthened provisions
against fraud, the measure is expected to pave the way for the full development of the
Philippine equities and securities market.

5. Economy
Even with its strong economic team, the Estrada administration failed to capitalize on
gains of the previous administration. Estrada's administration was severely criticized
cronyism, incompetence, and corruption, causing it to lose the confidence of forei
investors.
Foreign investors' confidence was further damaged when, in his second year, Estrada wa
accused of exerting influence in an investigation of a friend's involvement in stock market
manipulation.
Social unrest brought about by numerous bombing threats, actual bombings, kidnappings,
and other criminal activities contributed to the economy's troubles. Economic performance
was also hurt by climatic disturbance that caused extremes of dry and wet weather.
Toward the end of Estrada's administration, the fiscal deficit had doubled to more than F100
billion from a low of F49 billion in 1998.
Despite such setbacks, the rate of GNP in 1999 increased to 3.6 percent from 0.1 percent in
1998, and the GDP posted a 3.2 percent growth rate, up from a low of -0.5 percent in 1998.
Debt reached F2.1 trillion in 1999. Domestic debt amounted to F986.7 billion while foreign
debt stood at US$52.2 billion.

6. Agrarian reform
The Estrada administration widened the coverage of the Comprehensive Agrarian Refo
Program (CARP) to the landless peasants in the country side, distributing more than
266,000 hectares (660,000 acres) of land to 175,000 landless farmers, including land
owned by the traditional rural elite.
(Total of 523,000 hectares to 305,000 farmers during his 2nd year as president). I
September 1999, he issued Executive Order 151, also known as Farmer's Trust Fund,
which allows the voluntary consolidation of small farm operation into medium and large
scale integrated enterprise that can access long-term capital. Estrada launched the
Magkabalikat Para sa Kaunlarang Agraryo or MAGKASAKA.
The Department of Agrarian Reform forged into joint ventures with private investors into
agrarian sector to make FBs competitive.
In 1999, a huge fund was allocated to agricultural programs; one of these is the
Agrikulturang Maka Masa, through which it achieved an output growth of 6 percent, a record
high at the time, thereby lowering the inflation rate from 11 percent in January 1999
to just a little over 3 percent by November of the same year.

7. Anti-crime Task Forces
In 1998, by virtue of Executive Order No. 8, Estrada created the Presidential
AntiOrganized Crime Task Force (PAOCTF) to minimize, if not totally eradicate, car theft
and worsening kidnapping cases in the country.
With the help of this task force, the Philippine National Police achieved a record-high
trust rating of +53 percent. Estrada also created the Philippine Center on Transnational
Crime (PCTC) in 1999, with the objective of formulating and implementing a concerted
of action of all law enforcement, intelligence and other government agencies for the
prevention and control of transnational crime.
In November 2000, during the Juetenggate scandal of Estrada, high officials of the
PAOCTF-Cesar Mancao, Michael Ray Aquino, Glen Dumlao, and PAOCTF chief Panfilo
Lacson—were implicated in the murder of publicist Salvador Dacer and his driver
Emmanuel Corbito in Cavite.
Dacer at that time was accused to be behind a black propaganda against Estrada-a
charge Dacer denied.

8. Corruption charges and impeachment
In October 2000, Ilocos Sur governor Luis "Chavit" Singson, a close friend of Estrada
alleged that he had personally given Estrada F400 million as the payoff from jueteng,
grassroots-based numbers game, hidden in a bank account known as "Jose Velarde", as
well as F180 million from the government price subsidy for the tobacco farmers' marketing
cooperative after Estrada ordered a full-blown investigation into Chavit Singson's alleged
misuse of millions of pesos in public funds.
Singson's allegation caused controversy across the nation, which culminated in the House
of Representatives' filing of an impeachment case against Estrada on November 13, 2000.
House Speaker Manny Villar fast-tracked the impeachment complaint. The impeachment
suit was brought to the Senate and an impeachment court was formed, with Chief Justice
Hilario Davide, Jr. as presiding officer. Estrada pleaded "not guilty".
This was the first time the Filipino public witnessed, through radio and television, an elected
president stand in trial and face possible impeachment with full media coverage. During the
trial, the prosecution presented witnesses and alleged pieces of evidence to the
impeachment court regarding Estrada's alleged involvement in jueteng. The existence of
secret bank accounts which he allegedly used for receiving payoffs was also brought to the
fore.

9. In the 2004 Global Transparency Report, Estrada made it into the list of the World's All-T
ime Most Corrupt Leaders in the World. He was listed tenth and was said to have amassed
between $78 million to $80 million.
Also making it to the list from the Philippines was Ferdinand Marcos, who ended up second
in the list as he was said to have embezzled between $5 billion to $10 billion during his 21
years as president from 1965 to 1986.
EDSA II
Protests
On the evening of January 16, 2001, the impeachment court, whose majority were political
allies of Estrada, voted not to open an envelope that was said to contain incriminating
evidence against the president. The final vote was 11-10, in favor of keeping the envelope
closed. The prosecution panel (of congressmen and lawyers) walked out of the Impeachment
Court in protest of this vote.
Others noted that the walkout merited a contempt of court which Chief Justice Hilario Davide
Jr., intentionally or unintentionally, did not enforce. The afternoon schedule of television
networks covering the Impeachment were pre-empted by the prolongation of the day's court
session due to the issue of this envelope.

10. The evening telenovelas of networks were pushed back for up to two hours. That nigh
anti-Estrada protesters gathered in front of the EDSA Shrine at Epifanio de los Santo
Avenue, not too far away from the site of the 1986 People Power Revolution tha
overthrew Ferdinand Marcos. A political turmoil ensued and the clamor for Estrada's
resignation became stronger than ever. In the following days, the number of protesters
grew to the hundreds of thousands.
On January 19, 2001, the Armed Forces of the Philippines, seeing the political upheaval
throughout the country, decided to withdraw its support from the president and transfer its
allegiance to the vice president, Gloria Macapagal Arroyo. The following day, the Supreme
Court declared that the seat of presidency was vacant.

11. Resignation
At noon, the Supreme Court declared that Estrada "constructively resigned" his post and
Chief Justice Davide swore in the constitutional successor, Gloria Macapagal Arroyo, as
President of the Philippines. Prior to Estrada's departure from Malacanang, he issued a
press release which included:
... ”I now leave Malacanang Palace, the seat of the presidency of this country, for the
sake of peace and in order to begin the healing process of our nation. I leave the Palace
of our people with gratitude for the opportunities given to me for service to our people...”
Arroyo is sworn in as the 14th
President of the Philippines by Chief
Justice Hilano Davide Jr. on January
20, 2001.