US embassy cable - 05MANILA4776

C O N F I D E N T I A L SECTION 01 OF 03 MANILA 004776 
 
SIPDIS 
 
STATE FOR EAP/MTS, INR/EAP, INR/TNC, S/CT, USIP - SOLOMON, 
NSC FOR GREEN 
 
E.O. 12958: DECL: 10/04/2015 
TAGS: PGOV, PHUM, PTER, PINS, KISL, PINR, ECON, RP 
SUBJECT: NEW GOVERNOR IN MUSLIM REGION IN MINDANAO SWORN IN 
 
REF: A. MANILA 4224 
     B. MANILA 3726 
     C. MANILA 3710 
     D. MANILA 3116 
 
Classified By: Political Officer Stephen Worobec 
for reasons 1.4 (b) and (d). 
 
1. (C) Summary.  Newly elected Autonomous Region of Muslim 
Mindanao (ARMM) Governor Zaldy Ampatuan was sworn into office 
on September 30 by Executive Secretary Eduardo Ermita. 
Conspicuously absent from the inaugural ceremony were 
outgoing ARMM Governor Dr. Parouk Hussin, and Cotabato City 
Mayor Muslimin Sema, both of whom are senior members of the 
Moro National Liberation Front (MNLF).  During his inaugural 
speech, Ampatuan expressed his support for the peace process 
in Mindanao and promised a more efficient, transparent, and 
accountable ARMM administration that would promote economic 
development, provide security, and improve social services. 
Executive Secretary Ermita delivered a message from 
Malacanang that the nation and international community would 
all be watching whether new ARMM officials made good on these 
promises.  Doing so will require all of the political and 
financial muscle that Zaldy's father, Andal "Andy" Ampatuan 
Sr., and the Arroyo Administration can provide.  At a well 
staged media event held in Malacanang Palace on October 6, 
President Arroyo administered a second oath of office to 
Zaldy and other ARMM officials. End Summary. 
 
 
A Royal Family 
-------------- 
 
2.  (SBU) On September 30, USAID-Philippines director, USAID 
Growth with Equity in Mindanao (GEM) program manager, and 
poloff attended a filled-to-capacity inaugural ceremony for 
ARMM Governor elect Zaldy Uy "Puti" Ampatuan, Vice-Governor 
elect Ansaruddin "Hooky" Adiong, and 24 Regional Assemblymen 
at the Shariff Kabunsuan Cultural Complex in Cotabato City. 
The details of the circumstances of the ceremony provide 
fascinating glimpses into the political dynamics in the ARMM. 
According to the "ARMM Gazette" - the first issue of which 
was distributed at the inaugural - the Ampatuan family traces 
its lineage to both native and foreign leaders.  Zaldy 
Ampatuan's paternal grandfather, Shariff Aguak, was the great 
grandson of Shariff Saidona Mustapha who descended from Arab 
rulers, Shariff Jainal Abedin of the Malaya Sultanate of 
Johor, and Muhammad Issa, the great, great grandchild of the 
Prophet Muhammad.  On the maternal side, Zaldy traces his 
roots to the Rajah Buayen royalty, the Sultan of Kabuntalan, 
and 20th century local Muslim (Chinese) ruler, Piang Tan. 
 
Guests of Honor 
--------------- 
 
3.  (C) Seated on center stage with Governor Ampatuan and 
Vice-Governor Adiong were GRP Executive Secretary Eduardo 
Ermita, Armed Forces of the Philippines (AFP) Southcom 
Commander Edilberto P. Adan, Congressman Simeon A. 
Datumanong, House Speaker Gerry Salapuddin, Regional 
Assemblyman for Basilan Province Hatimil Hassan, 
Secretary-General of the National Anti-Poverty Commission 
 
SIPDIS 
Zamzamin Ampatuan, the Charge d' Affaires of the Indonesian 
Embassy, and the Malaysian, Libyan, and United Arab Emirates 
ambassadors to the Philippines. 
 
The Big Four 
------------ 
 
4.  (SBU)  Among the other guests of honor were three key 
members of the political bloc that supported Zaldy Ampatuan 
during the August 8 ARMM election: Basilan governor Wahab 
Akbar; Tawi-Tawi Governor Sadikul Sahali; and Sulu Governor 
Benjamin Loong.  (Note:  According to an Embassy contact, 
former Abu Sayyaf founder/member Wahab Akbar is the closest 
of the three governors to the Ampatuan family.  Akbar 
allegedly "owns" the majority of mayors in Basilan Province, 
and as the most powerful figure in Basilan Province was 
instrumental in "delivering" the vote for President Arroyo 
during the May 2004 election.  End note.) 
 
5.  (SBU)  The remaining member of the "Big Four" - Andal 
"Andy" Ampatuan Sr., Zaldy's father, the governor of 
Maguindanao, and the patriarch of the Ampatuan clan - was the 
last guest of honor to enter the inaugural hall.  He made his 
way down the aisle wearing sunglasses, surrounded by an 
entourage of bodyguards and a swarm of media.  After taking 
his seat near his son on center stage, Andy removed his 
sunglasses in a gesture which seemed to indicate that the 
inaugural ceremony - delayed for over one hour - could begin 
and so it did. 
 
Hussin and Sema Take a Rain Check 
--------------------------------- 
 
6.  (SBU)  Conspicuously absent from the event - originally 
billed as a turnover and inaugural ceremony - were outgoing 
ARMM Governor Parouk Hussin, and Cotabato City Mayor Muslimin 
Sema, both of whom are senior MNLF members.  Hussin has made 
no secret of his displeasure with the GRP for its failure to 
implement fully the 1996 GRP-MNLF Peace Agreement, provide 
adequate funding for the development of the ARMM, and endorse 
MNLF candidates during the August 8 elections. During several 
speeches over the past month, Hussin criticized the results 
of the ARMM election by mentioning allegations of widespread 
electoral fraud. 
 
 
Zaldy Lays Out His Agenda 
------------------------- 
 
7.  (SBU) "Development" appears to be the operative word for 
Governor Ampatuan, for he repeated it during his inaugural 
speech no less than a dozen times.  While doing so, he 
expressed his support for the peace process in Mindanao and 
promised to restore trust and confidence in the ARMM through 
a more efficient, transparent, and accountable 
administration.  Among the public services that Zaldy 
promised to improve were security, stimulation and regulation 
of business activities, protection of domestic entrepreneurs, 
and the provision of education, hospitalization, and housing 
for the underprivileged. 
 
8.  (SBU) The only issue Zaldy addressed with any specifics 
was the crisis currently facing the Government Service 
Insurance System (GSIS).  Zaldy said that he intended to 
settle this crisis within his first 100 days in office. 
(Note.  According to press accounts, the House Committee on 
Good Government recently issued subpoenas to officials of the 
ARMM Department of Education, ARMM Commission on Audit, and 
the Land Bank of the Philippines in Cotabato City to produce 
documents relative to the non-remittance of an estimated 
968.7 million pesos or $17,256,684 US dollars - inclusive of 
interest -  of compulsory teachers' contributions to the GSIS 
during the period of 1997-2003.  Since the subpoenaed 
officials failed to produce these documents, the House 
Committee has threatened to cite them for contempt.  Among 
the allegations related to this GSIS scandal is that 283.2 
million pesos or $5,030,303 US dollars of funds from the 
ARMM's Department of Education were illegally disbursed 
through the Cotabato City branch of the Land Bank of the 
Philippines.  End Note.) 
 
 
Message from Malacanang 
----------------------- 
 
9.  (SBU) Executive Secretary Eduardo Ermita noted during his 
speech that the foreign diplomatic community, international 
aid agencies, Organization of Islamic Conference (OIC) 
countries, MNLF, MILF, GRP, and general populace would all be 
watching whether the new ARMM administration made good on its 
promises.  Several of Ermita's remarks  intimated that Andy 
Ampatuan would be playing an important role in his son's 
governorship.  After referring to Andy as "the source of 
strength for Mindanao," Ermita said that Andy "will be at 
your side to be sure that you succeed."   Other themes of 
Ermita's speech were the importance of rule of law, fiscal 
responsibility, good governance, and full implementation of 
the 1996 GRP-MNLF Peace Agreement.  Ermita also stressed the 
necessity for the new ARMM leadership to work closely with 
GRP officials in Manila for budgetary support. 
 
 
Zaldy Takes the Oath Again 
-------------------------- 
 
10.  (SBU) On October 6, USAID-Philippines director and 
poloff attended a second swearing-in ceremony for ARMM 
Governor Ampatuan, Vice-Governor Adiong, and the Regional 
Assemblymen that was held at the Malacanang Palace. 
President Arroyo administered the oath of office and used the 
event to push her national agenda, including passage of an 
anti-terror bill. 
 
 
Comment 
------- 
 
11.  (C) In the wake of the GSIS scandal and the chronic 
crisis of confidence facing the ARMM, Governor Zaldy Ampatuan 
has considerable house cleaning to do if he is to reform a 
bloated ARMM bureaucracy plagued by inefficiency, nepotism, 
graft, and corruption.   Although Ampatuan appears to 
understand that the economic development of the ARMM through 
commerce, tourism, and investment hinges on peace, security, 
and stability, long-standing tensions exist between the 
traditional ruling elite represented by the Ampatuan clan and 
the MNLF and MILF in a society where rido (clan conflict) 
remains an accepted way of settling differences.  Other 
looming issues are the continued Abu Sayyaf Group and Jemaah 
Islamiyah presence and the contentious problem of who exactly 
will control and reap the profits from natural resources, 
e.g., minerals, natural gas, and petroleum, within the ARMM. 
 
JOHNSON