PRESIDENT ARROYO APPOINTS NEW OMBUDSMAN TO LEAD

UNCLAS SECTION 01 OF 02 MANILA 005688 SIPDIS SENSITIVE DEPT FOR EAP, EAP/MTS, EAP/MLS, INR/EAP, INR/B DEPT PLEASE PASS TO USAID C. DOWNEY E.O. 12958: N/A TAGS: PGOV PREL KCOR KWMN ECON EAID PINR RP SUBJECT: PRESIDENT ARROYO APPOINTS NEW OMBUDSMAN TO LEAD ANTI-CORRUPTION FIGHT REF: A. MANILA 5649 ¶B. MANILA 5012 ¶C. MANILA 4693 ¶1. (U) This message is Sensitive But Unclassified -- Please handle accordingly. ¶2. (SBU) Summary: President Arroyo has named her Chief Legal Counsel, Maria Merceditas "Mercy" Gutierrez, as the new Ombudsman for the Philippines. Gutierrez, a 1995 participant in the State Department's International Visitor Program, was chosen over two other highly-qualified nominees. She is replacing Simeon Marcelo, who is credited with ramping up the GRP's anti-corruption efforts. Gutierrez is regarded as competent and honest, with significant experience in government. End Summary. President Appoints First Woman Ombudsman -------------- ¶3. (U) On November 30, President Arroyo named her 56 year- old Chief Legal Counsel, Maria Merceditas "Mercy" Gutierrez, as the head of the Ombudsman's Office, an independent GRP agency which fights graft and other illegal diversions of governmental resources. Gutierrez took up her new position on December 1. Gutierrez is replacing Simeon Marcelo, who played a vital role in strengthening the GRP's anti- corruption efforts, and who resigned on November 30. She is the first woman to occupy this position and will serve a seven-year term that ends in 2012. The Selection Process -------------- ¶4. (U) The GRP's Judicial and Bar Council began reviewing possible candidates after Marcelo announced on September 30 his intention to resign at the end of November for health reasons (see refs for background). Starting with a list of 14 candidates, the eight-member Council submitted its short list of three nominees to President Arroyo during a November 21 meeting. In addition to Gutierrez, the other two nominees were: -- Diosdado Peralta, Associate Justice of the Sandiganbayan (Anti-Graft Court); and, -- Victor Fernandez, Deputy Ombudsman for Luzon. ¶5. (U) In making its final selection, the Judicial and Bar Council unanimously endorsed Gutierrez. Peralta and Fernandez received the second and third highest number of nominations. Arroyo accepted the Council's recommendation and named Gutierrez to the slot later in the month. �A;Assisted by USAID Project -------------- ¶6. (U) A USAID-funded project assisted the Judicial and Bar Council, civil society groups, and the media to inform the selection process and enhance its transparency. The NGO "Transparency and Accountability Network" (TAN),working with the Asia Foundation, launched a project on October 26 called "Ombudsman Appointment Watch II." This project followed TAN's earlier success with "Ombudsman Watch" in 2002 that resulted in the appointment of Marcelo. ¶7. (SBU) In response to lobbying by TAN, the Council was more flexible about its arrangements, and in fact agreed to an extension to allow additional candidates to apply for the Ombudsman job. There were some other clear and favorable improvements in the selection process this time around. For example, the Deputy Ombudsman, Margarito Gervacio, was not chosen among the top three (Gervacio was not highly regarded, but normally would have been a contender due to his position); instead, a junior deputy (Fernandez) got the nod -- someone of whom outgoing Ombudsman Marcelo thought more highly. Bio-Data on Gutierrez -------------- ¶8. (SBU) Gutierrez is considered very close to President Arroyo and is believed to have her ear. Prior to becoming Chief Presidential Legal Counsel, Gutierrez was Acting Secretary of Justice -- the first woman to hold this SIPDIS position -- from November 2002 to January 2003 and again from December 2003 to August 2004. During these timeframes, Gutierrez built up the anti-trafficking in persons task force and made that issue a priority at the Philippine Department of Justice (PDOJ). Between 1983 and 2003, she served variously at the PDOJ as Undersecretary, Assistant Chief State Counsel and Senior State Counsel, and on the legal staff. ¶9. (U) Gutierrez has also been Chairperson of the Presidential Human Rights Committee and President Arroyo's designated "anti-corruption czarina" to coordinate with the Presidential Anti-Graft Commission. In 1972, she received her law degree from Ateneo de Manila University, where she was a classmate of President Arroyo's husband Mike Arroyo. In 1995, Gutierrez participated in a State Department International Visitor Program on "The U.S. Criminal Justice System." She is married with four children. Generally Positive but Cautious Reaction -------------- ¶10. (U) Public reaction to the news of Gutierrez's appointment has generally been positive but cautious. In the words of Senate President Franklin Drilon (who is anti- Arroyo),the "public will be watching" Gutierrez's first actions carefully. Media commentary and statements by Opposition politicians have highlighted Gutierrez's close ties to the First Family but have not passed judgment on her qualifications. At a minimum, she has been called "competent," while pro-government officials consider her highly experienced and well qualified for the top anti- corruption job. Former PDOJ colleagues describe her as independent (in formulating legal opinions),action- oriented, low-key, honest, and competent. Comment -------------- ¶11. (SBU) President Arroyo's swift appointment of Gutierrez is positive because it avoids an undesirable vacancy in the Ombudsman's Office. The challenge is for Gutierrez to prove that she is a worthy successor to the highly respected Simeon Marcelo, under whose watch the conviction rate at the Ombudsman's Office increased significantly. Although Gutierrez may have had the "inside track" during the selection process due to her Malacanang connections, she is qualified and experienced in the opinion of most observers. Nonetheless, the Philippine public will be watching Gutierrez closely to see whether her close ties to the First Family might affect her independence and effectiveness as Ombudsman. With anti-corruption efforts going in the right direction of late (see ref A regarding the recent court martial of a corrupt retired general),it is vital that Gutierrez keep up the momentum.