US embassy cable - 05MANILA5688

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. 
 
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.