US & Philippines Marines Begin Drills Near Spratlys

About 3,000 U.S. and Filipino marines’ soldiers started two weeks of annual military drills in the Philippines on Monday that will include a hostile beach assault exercise near the disputed Spratly Islands.

U.S. Marine 1st Lt. Nick Eisenbeiser said the Oct. 17-28 maneuvers would focus on honing their joint capability to ensure regional security and were not aimed at China or any country as an imaginary target.

"They shouldn't get worried," Eisenbeiser, when asked if the exercises were aimed at China, who’s growing naval power has set off concerns in the region. "We're assisting the Chinese in ensuring that their region is peaceful."

The exercises would ensure that U.S. and Philippines forces could jointly respond to "anything that arises," he said.

The United States irked Beijing last year by asserting that Washington had a national security interest in the peaceful resolution of the disputes over the Spratly Islands.

The potentially oil-rich islands are located in the West Philippines Sea (South China Sea), between Vietnam, the Philippines and Malaysia, and straddle some of the world's busiest sea lanes.

China seeks to resolve the disputes through bilateral talks with five other claimants, including the Philippines. Beijing has rejected any U.S. role in the resolution of the disputes over the islands.

Philippine military spokeswoman 1st Lt. Cherryl Tindog said an Oct. 27 drill will involve a mock raid by about 100 U.S. and Filipino marines from an American warship to capture a hostile beachhead west of Palawan province, which faces the South China Sea.

Other events include a live-fire exercise in Crow Valley in Tarlac province, north of Manila, and medical missions and school constructions in several Philippine towns.

One Filipino-occupied island was proposed as a possible site for joint training but was ruled out to avoid antagonizing China and other claimants. The island lies close to a Spratly reef occupied by Chinese forces and an island separately occupied by Vietnamese forces. The information came from two officials who spoke on condition of anonymity because they were not authorized to talk to reporters.

Philippines marine Brig. Gen. Eugenio Clemen said the exercises with U.S. forces would be confined to the country's territory so "nobody could question that."

The Philippines and Vietnam, another Spratlys claimant, have separately accused Chinese vessels of intruding into what they say is their part of the contested areas and of disrupting oil explorations in their territorial waters this year.

Both countries have since discussed those allegations with China and renewed calls for the peaceful resolution of the disputes, easing monthslong tensions.

₱5 Billion Armament Budget to Secure West Philippines Oil and Gas Field Approved by Pres. Aquino

President Benigno Aquino III has approved the release of ₱4.9 Billion from the Malampaya fund to strengthen the defenses of natural gas exploration in northern Palawan, National Treasurer Roberto Tan said Wednesday (September 14, 2011).

The fund to be released this month, will be disbursed to the Armed Forces of the Philippines (AFP) for the purchased of New smaller patrol vessel, 4 radar Station, Tanks, and modern assault rifles and ammunitions. The AFP was tasked to acquire and deploy a support fleet of ships smaller than the Hamilton class BRP Gregorio del Pilar.

As early as last March, the Philippine military sent an aircraft to the disputed Recto Bank ( Reed Bank) near Palawan following reports that Chinese patrol boats were trying to harass a Filipino oil exploration team there.

Lt. Gen. Juancho Sabban, chief of the AFP Western Mindanao Command, said the Chinese were claiming the exploration team from the Department of Energy was in Chinese territory where in fact the Recto Bank is just in the backyard of the Philippines, within 200 Nautical Miles Exclusive Economic Zone, while china is within thousands of Kilometers.

BRP Gregorio del Pilar, the Philippine Navy's largest and newly acquired ship, is a symbol of the Philippines' "seriousness" in fortifying the protectors of the country's maritime resources.

The Gregorio del Pilar, however, is less than half the size of China's first aircraft carrier that is expected to go on sea trials by the end of September. The Philippines' largest ship is 367 feet long, compared to China's Shi Lang that measures 1,000 feet.

₱100 Billion Malampaya "Commingled" Fund Missing?

The National Treasurer also disclosed Wednesday at the joint congressional oversight committee hearing on the comprehensive tax reform package that the Malampaya fund, with a remaining balance of ₱99.45 Billion, exists as a "commingled" special account in the government's general fund.

He said the Malampaya collections from 2002 to August 2011 totaled ₱121.97 Billion, of which ₱21.645 Billion was disbursed partly to pay for the Hamilton class ship which the Philippines bought from the United States of America.

During the hearing, Senator Ralph Recto made an issue out of the "commingled" status of the Malampaya fund and said that the fund was missing. Recto argued that the fund cannot be used for any purpose other than those for which it was created.

In a July 5 statement, Budget Secretary Florencio Abad explained the Malampaya fund was "…not actual cash but an accounting of revenue inflows and expenditure items charged against the Fund since revenues were remitted to the government from the Malampaya Natural Gas Project since it started in 2002."

The Malampaya special account is known at the Department of Budget and Management as Fund 151 and is managed by the Bureau of Treasury and the Energy Department.

Abad also said back in July that the Aquino administration had charged ₱2.87 Billion to the Malampaya account for "necessary energy-related" expenditures:

·        ₱2 Billion for fuel requirements of the National Power Corporation-Small Power Utilities Group (NPC-SPUG), to avert a power shortage in off-grid areas

·        ₱450 million for the Pantawid Pasada program as direct support to jeepney and tricycle drivers affected by the recent spate of oil price hikes and

·        ₱423 million for the purchase of the USS Hamilton cutter marine vessel to strengthen the security perimeter of the Malampaya Natural Gas Project.

Abad claimed that during the Arroyo administration only ₱250 million out of the ₱19.64 billion drawn from the fund was spent on an energy-related project that provided electricity to 211 villages in 2006

"The rest of the 98.73 percent or ₱19.39 billion was released for non-energy related projects," Abad noted and broke it down as follows:

·        In 2006, ₱1 billion for the Armed Forces Modernization Fund (What AFP modernization happened in 2006?)

·        In 2008, ₱4 billion for the Department of Agriculture

·        In 2009, a total of ₱14.39 billion to various agencies, including ₱7.07 billion for the Department of Public Works and Highways, ₱2.14 billion for the Philippine National Police, ₱1.82 billion for the Agriculture Department, ₱1.4 billion for the National Housing Authority, and ₱900 million for the Department of Agrarian Reform.

National Treasurer Tan said the ₱4.9 billion for the security build-up in northern Palawan will likely be raised through borrowings and then credited to Fund 151.

Budget Secretary Abad in a statement September 7 described how government will disburse the money for Malampaya defenses.

"The amount is divided between the capability requirements of the Philippine Navy and Philippine Air Force. Of this amount, ₱2.65 billion will fund base support and logistic system, coast watch requirements; and the acquisition of a high-endurance cutter sea vessel and three helicopters of the Philippine Navy."

"Meanwhile, the Air Force will be using ₱2.30 billion to purchase three helicopters and develop a base-hangar," Abad said.