Changes in the Cabinet.

(From Philippine Daily Inquirer)

Byline: Amando Doronila

THE ADMINISTRATION has fueled speculation about a sweeping Cabinet shake-up by the end of the year, as a shock therapy to counter two adverse developments converging at the close of the first six months of President Macapagal-Arroyo's regular term: the deep plunge in her approval rating, and the threat of a downgrade by international credit rating agencies.

Press Secretary Ignacio Bunye fanned the speculation with the general statement that "All different government agencies are under constant review, constant reorganization" so that they can be streamlined "to become more efficient." The statement has not at all conveyed the urgency of revamping the Cabinet. The truth is that there are two critical areas of concern: the fiscal deficit crisis and corruption, particularly.

The first problem (the plunging approval rating) is political, and the second (downgrading of the credit rating) is a fiscal problem. A Cabinet revamp can act as a shock therapy if it leads to the appointment of new faces that could reinvigorate administration efforts to reduce the growing deficit gap and attack the underlying causes of the plunging approval rating, which are rising inflation and growing concern over corruption. Thus, a revamped Cabinet should have fresh faces to replace rather tired ones and inspire confidence and expectations of injection of new energy. Energy Secretary Vince Perez and Finance Secretary Juanita Amatong, we have learned on good authority, have handed in their resignations, although Perez, according to our source, wants the finance portfolio even if his stewardship of the energy department has been less than brilliant or spectacular.

Who heads these two portfolios-finance and energy-are considered keys to whether the President could reinvigorate the Cabinet. International credit rating institutions, such as Moody's, are watching appointments to these portfolios.

The President, we have learned from authoritative sources, has offered the energy portfolio to opposition leader, Sen. Edgardo Angara, or his nominee from his party (LDP) or the opposition. But Angara, while willing to cooperate with the administration in a "Cabinet of national unity" on the basis of critical cooperation on programs, wants to stay in the Senate, where his term is up to 2007, knowing fully well the Senate is his secure political base.