Espiritu quits; Puno moving to new post

Saying he wanted to unify the Cabinet, Finance Secretary Edgardo Espiritu submitted yesterday his irrevocable letter of resignation to President Estrada, all but confirming vicious infighting in the President's official family.

At the same time, Interior and Local Government Secretary Ronaldo Puno, who met with the President yesterday afternoon, indicated he would soon get a new assignment.

Palace sources said Espiritu is likely to be replaced by Trade and Industry Secretary Jose Pardo, who in turn may be replaced in the trade department by House Majority Leader Mar Roxas III.

Puno, on the other hand, will reportedly be assigned as ambassador to the United Nations.

Palace sources said the revamp, which the President is expected to announce in his Ulat sa Bayan (Report to the Nation) this Saturday, would be part musical chairs, with several Cabinet members simply moving on to other posts.

The President virtually confirmed that Puno was on the way out but said he was still scouting for a replacement. Former Manila Mayor Alfredo Lim, one of those being considered, said the strongest contender for the post is someone close to the President - Rizal Gov. Casimiro Yñares. Also in the short list are Metro Manila Development Authority Chairman Jejomar Binay and former Mandaluyong Mayor Benjamin Abalos.

Espiritu held a press conference after meeting with the President at Malacañang yesterday afternoon to hand in his resignation.

"I hope it will set the trend for the entire Cabinet to unify. The President is pitiful," Espiritu told reporters, apparently referring the Mr. Estrada's plummeting popularity ratings which was partly blamed on in-fighting among his Cabinet members.

"I hope my resignation will encourage everybody to work together, to be a cohesive team," Espiritu added.

Reliable sources said Espiritu was fed up with backstabbing by Pardo and Bangko Sentral ng Pilipinas Governor Rafael Buenaventura.

The President said he was saddened by Espiritu's resignation.

"In the year and a half that he served in my Cabinet, he has helped restore fiscal discipline and financial responsibility that the economy so badly needs through a regime of low interest rates and some fo the lowest inflation figures that the country has seen in a dozen years, and pro-market and pro-poor policies that are the hallmarks of our administration," Mr. Estrada noted.

Asked if he would reconsider his decision if requested by the President, Espiritu said; "No, it's irrevocable."

In his three-paragraph resignation letter, Espiritu said he reached the decision after a "careful and lengthy discussion" with his family.

He said he felt that he would be able to help the President and the government better "in an unhampered manner in my private capacity."

Espiritu reportedly prayed in a church after handing in his resignation.

Asked what would be the impact of Espiritu's resignation on the economy, Buenaventura said it would depend on the replacement.

Trade and Industry Undersecretary Solomon Cua temporarily takes over as caretaker of the department pending formal assumption of Espiritu's successor.

Mr. Estrada appointed Espiritu immediately after assuming the presidency in June 1998.

The business community hailed the appointment, saying it provided continuity during the Asian financial crisis.

After meeting with the Chief Executive at Malacañang early last night, a beaming Puno indicated he was pleased with his new assignment.

"We will let the President make whatever announcements that need to be made, but we had extensive discussion which is profitable for everybody." Puno told reporters after emerging from the meeting.

He said the President did not mention any replacement for him yet.

"There are so many contenders. All of them are qualified and they have been in local government for so many years," Mr. Estrada said, adding that the candidates are equally bright and have similarly good track records.

The President also clarified that contrary to news reports, he has not discussed the matter with Lim.

"We have not talked yet, but I believe he is one of the candidates I am considering for the DILG (Department of the Interior and Local Government) post," Mr. Estrada said.

Lim, who lost the presidential race to Mr. Estrada, told The STAR he is grateful to the President for considering him as replacement for Puno.

He admitted, however, that Ynares has a clear advantage over him for the DILG portfolio.

On the alleged resignation offer of Public Works and Highways Secretary Gregorio Vigilar, the President merely said he would not stand in the way of anybody who does not way to work for the government.

In the same radio interview, the Chief Executive said he has not acted on the request of Presidential Spokesman Fernando Barican to be relieved of his post and given a new assignment.

The President said there is no need for him to immediately act on Barican's case, saying the post is just a "minor position" in the Cabinet.

In his weekly radio program "Itawag Mo Kay Erap," Mr. Estrada said changes in the Cabinet would be minimal.

The President said while there would be new faces in his official family, others would merely be given new assignments.

At the same time, he brushed aside anew calls by some quarters for him to act decisively on the Cabinet reshuffle, Mr. Estrada said it is his prerogative as President to announce the revamp as he sees fit.

"I don't know about them. Maybe, they should be President first. They just don't know the responsibilities of the President that you don't simply pick out people to be your Cabinet secretary, then regret it afterwards," Mr. Estrada said.

Malacañang sources told The STAR that former Air Force chief and STAR editor-in-chief Gen. Ramon Farolan might be named the new Customs commissioner, vice Nelson Tan. The same position was also reportedly offered to Lim.

On the other hand, Tourism Secretary Gemma Cruz-Araneta would be designated ambassador to Venezuela, with Philippine Tourism Authority chief Lito Banayo replacing her at the tourism department.

Press Secretary Rodolfo Reyes will be transferred to the Manila Economic and Cultural Office in Taiwan, while Barican gets his request to be given a new post - the Department of Environment and Natural Resources vice Secretary Antonio Cerilles who moves over to the Department of Public Works and Highways.

Presidential Legislative Liaison Office head Secretary Jose Jaime Policarpio Jr. replaces Reyes, while Presidential Management Staff chief Leonora de Jesus transfers to the Housing and Urban Development Coordinating Council.

Aphrodicio Laquian, one of Mr. Estrada's advisers, will reportedly take over the post to be vacated by De Jesus.

The source said it would be a toss up between Mike Toledo and Francis Pangilinan to fill the position to be vacated by Barican.

Mr. Estrada lamented that some people he had offered Cabinet posts turned him down for one reason or another.

He said among the reasons for rejecting his offer were low pay, hard work and vulnerability to criticisms.

The President also reiterated that he would announce the revamp within 10 days even as some of his Cabinet secretaries have already been egging him to come out with a definitive statement as soon as possible.

Reuters reported that Mr. Estrada's dilly-dallying on the revamp, and his plummeting popularity rating, has dampened the stock market.

However, Foreign Affairs Secretary Domingo Siazon Jr. said the President was taking his time in announcing the revamp to avoid choosing the wrong replacements.

Siazon also hinted that some former high school classmates of the President in Ateneo University would likely be given Cabinet posts, but refused to elaborate.