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    Buñag goes, scores bosses
    PALACE MAKES SHOCKING ANNOUNCEMENT A DAY AFTER 5-MO. DEFICIT REPORT
    By Mia M. Gonzalez
    Reporter

    NINE days after saying that Internal Revenue Commissioner Jose Mario Buñag would keep his post pending a Palace “review” of the performance of agencies in the fiscal sector, Malacañang unceremoniously sacked its chief taxman on Wednesday. It offered him an ambassadorial post, which he declined, saying he’d rather go back to the private sector.

    President Arroyo designated BIR Deputy Commissioner Lilian Hefti, a career revenue officer with a 29-year service, as officer-in-charge.

    While politely thanking President Arroyo for giving him the opportunity to serve the country, Buñag did not mince words when it came to other officials, whom he accused of making him a scapegoat for their incompetence. He was widely believed to refer to, among others, his boss, Finance Secretary Gary Teves, for setting unrealistic policies and targets.

    Sources said the Palace announcement at midday had shocked Buñag, who had painstakingly explained to mediamen the past week why the BIR should not be solely blamed for the revenue collection shortfall in the first quarter—precisely the issue raised last week, when BusinessMirror first ran an exclusive story on June 11, quoting sources as saying Buñag would be made to take the blame for this and could lose his post.

    On Independence Day, Teves told reporters the President, after meeting him and Buñag, decided to keep Buñag; and they all supposedly agreed that the time for reckoning performance was not the first quarter, when other factors could account for the underperformance.

    The Palace also revoked the day after that a controversial executive order that created a new deputy commissioner’s office in the BIR, virtually lodging 70 percent of the bureau’s powers and responsibilities to that office. Buñag said he was not consulted on that EO 625, which was recalled and promptly replaced with EO 625-A.

    On Tuesday, June 19, Finance Secretary Gary Teves revealed the deficit figures of P41.8 billion for the January to May period, underscoring once more the shortfall in BIR collections.

    In May alone, the government posted a P1.7-billion deficit for May due to revenue undercollections.

    The President made the announcement replacing Buñag during a luncheon meeting with media executives at the Palace Aguinaldo Room in response to questions about the BIR chief, whom she said was offered “very important European [diplomatic] post.”

    Buñag thanked Mrs. Arroyo for allowing him to serve the country, but attacked “higher authorities”, apparently referring to Finance Secretary Teves and other members of the economic team, for using him as a “sacrificial lamb” for their “unrealistic, failed and bungled policies.”

    Executive Secretary Eduardo Ermita said in his weekly news conference that the President has chosen Hefti, the No. 2 official in the BIR, to run the bureau until a permanent replacement is chosen.

    Ermita quoted the President as saying during her luncheon meeting with the media that career officials, such as Hefti, “would tend to perform well.”

    Ermita said Teves has yet to submit to the President a shortlist of candidates for permanent BIR chief.

    As for the Bureau of Customs (BOC), Ermita said that the President has made “no mention whatsoever of any move to replace the BOC commissioner.”

    Ermita said that Buñag was offered an ambassadorial post in Europe—reported to be Norway.

    In his statement, Buñag thanked Mrs. Arroyo for the offer but said he would rather take a breather from public service after his nearly two-year stint as BIR chief, and to “explore other options.”

    Buñag, who was BIR deputy commissioner before he was designated as OIC and later permanent BIR chief, took an angry swipe at the economic managers who had set what he called “unrealistic” revenue targets at the expense of officials like him.

    “There are higher authorities in the government who would like to wash their hands of responsibility for the dire consequences of their unrealistic, failed and bungled policies and who look for a sacrificial lamb and a scapegoat to which they can assign blame. So be it. Their time to answer for their failure and incompetence will also eventually come,” he said.

    Buñag reported that during his time, BIR officials tried their “best to meet the administration’s expectations.”

    Buñag reported that in 2006, the BIR even exceeded 2005 collections by 22 percent, “a feat not achieved since 1997” and “surpassed our real collection target by P30 billion.”

    Asked about the rift between Buñag and Teves caused by differences over revenue targets, Ermita said that Teves was only doing his job when he insisted on a particular target for the revenue collection agencies.

    “I think we cannot take it from the supervisor, the secretary, to be able to set his own policy and set his own goals for the department.  Otherwise, the President would be the one running after him, and her factotum for revenue collection is the Secretary of Finance. So let’s say that the Secretary of Finance has his own responsibility on the matter of revenue collection,” he said.

    Ermita said the government remains confident of achieving its target of a balanced budget next year.

    “We are confident that by 2008, we will be able to reach a balanced budget. The OFW remittance is up and the stock market is okay. Foreign investment in the Philippines is higher than normal. All this would add to the factors that would lead us to a balanced budget by 2008,” he said.

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