Resigned Finance Secretary Cesar Purisima said the President had wanted to postpone the implementation of the unpopular EVAT law to save her presidency from crumbling public support and mounting clamor for her to resign.

"I had a conversation with the President . . . where she expressed desire to delay the implementation of EVAT without talking about ways it should be delayed," Purisima said in an interview over ANC television.

"Certainly, there was concern about the potential impact the price increase will have on the people," he said.

Purisima, who resigned from the Arroyo administration along with seven other Cabinet members and two senior officials, however, did not say if the President had influenced the Supreme Court in issuing a temporary restraining order (TRO) on the Executive Department’s implementation of the new tax last July 1 on questions of unconstitutionality.

The VAT law, approved by Congress earlier in May, retains the 10 percent rate on goods and services but grants the President standby authority to raise it to 12 percent next January under certain fiscal conditions. It is considered the heart of Arroyo’s tax reform agenda to improve weak revenue collection and cut the P180 billion budget deficit.

Purisima denied the accusation of Environment Secretary Michael Defensor that his group’s resignation was part of a conspiracy to bring down the President.

However, the resigned finance secretary admitted that he and former Education Secretary Florencio Abad met with Vice President Noli de Castro in Hong Kong to inform him of their plan to resign their positions.

Purisima said they discussed with the Vice President their plan to file their resignation in a 20-minute meeting at a shopping mall in Hong Kong.

He said it was imperative to let De Castro in the loop since he was considered the legitimate successor of Mrs. Arroyo in case she steps down from office.

Former Trade Secretary Juan Santos said that abandoning the Arroyo administration was a "very painful decision" but he reiterated the group’s appeal to President to resign and save the country from further economic ruin.

Santos said the President has lost credibility to govern and should let De Castro take over the government.

"We hope the President understands the message," he said. The President has been distracted by her efforts to "save her presidency" that she has placed governance and fiscal reforms in the "backburner," according to former Land Reform Secretary Rene Villa.

Villa said the President would wind up with a "wounded presidency" even if she survives the raging political crisis.

Teresita Deles, former presidential adviser on the peace process, added the President would find it very hard to make tough decisions with her integrity under fire.

Last Friday, Purisima and other key economic managers said the President preempted their move to resign by announcing Thursday evening that should would ask her entire Cabinet to submit their courtesy resignationand give her freedom to reorganize her administration.

"This preemption does not change our conviction that her decisions as of late are guided mainly by her determination to survive as president," they said.

Other officials who resigned were Budget Secretary Emilia Boncodin, National Anti-Poverty Commission Chairwoman Imelda Nicolas, Internal Revenue Commissioner Guillermo Parayno, and Customs Commissioner Alberto Lina.

Opposition defends resigned Cabinet execs against pro-GMA critics

By HANNAH L. TORREGOZA

The United Opposition (Uno) yesterday defended the 10 Cabinet members who quit their posts and joined the clamor for President Arroyo to resign against verbal attacks launched by pro-administration critics.

Uno chairman Mayor Jejomar Binay praised the 10 former Cabinet members as among the most efficient members of the Arroyo Cabinet after several pro-administration mouth pieces described their action as "dissolute and immoral."

Binay said the department secretaries who resigned were key players in the country’s economic arena.

"We are one in saying that these people who left their departments are deemed the most efficient, deserving leaders who served the people well. Their principle to serve prevailed over and above friendship," Binay said.

The opposition also said their resignation was a significant sign that President Arroyo has lost the confidence of her subordinates.

In a phone interview, Carmelito Anzures, Uno committee member, said the department secretaries merely acted on principle believing that President Arroyo has lost the moral authority to lead and govern the country.

"If they are belittling the moves of these ten, then why in the first place did they assign these people to the most crucial agencies? Pagpapatakip na lang nila ‘yan, alam naman nila nabubuo na ang consensus na hindi na nasisikmura ng mga tao si GMA," Anzures said.

Jesus Arranza, chairman of the Federation of Philippine Industries (FPI) said the business community was confident the current political instability will not affect the economy even if key government economic finance and economic departments and agencies, particularly the Department of Trade and Industry (DTI), Department of Finance (DoF), Department of Budget and Management (DBM), were run by officers-in-charge or undermanned following the resignation of Cabinet secretaries.

"There are already policies in place. Kahit walang tao ‘yan, tuluy-tuloy and takbo ng ekonomiya. Agencies do not operate on a day-to-day affair. Governement has structured policies that are just being followed by those in leadership," Arranza said.