MALACANANG ADMITS RP HAS A 'SERIOUS DRUG PROBLEM'

Malacanang vowed yesterday to dismantle drug syndicates and eliminate
the country's "serious drug problem" following a US report that the
Philippines was becoming a haven for drug smugglers.

"We recognize that much more needs to be done in curbing the illegal
drug trade, but calling the Philippines a drug smugglers' haven is
stretching it too far," Press Secretary Ignacio Bunye said in a
statement yesterday.

Bunye said authorities continued to dismantle drug laboratories,
arrest and convict drug traffickers and have "heavily constricted the
supply of illegal drugs on the streets."

"Our anti-narcotics agents are deeply committed and focused on getting
the job done; we have worked closely with allies, including the United
States, in checking drug smugglers and their deadly contraband," he
said.

"A drug-free Philippines is still our goal," Bunye said, adding that
the government was taking decisive steps to attain it.

On the other hand, Sen. Manuel Villar Jr., Senate committee on public
order and illegal drugs chairman, said yesterday the US government
report on international narcotics control should serve as a wakeup
call for Filipino authorities that the problem of illegal drugs exists
in the country.

"They need to be more vigilant and aggressive if they want to achieve
a drug-free Philippines by 2010," he said.

Villar said there is still an urgent need for Filipino authorities to
step up their campaign against drug addiction and drug
trafficking.

"We don't need other countries or international agencies to tell us
that our country's drug situation continues to worsen," he said. "We
should treat such negative reports about us as a challenge to continue
our anti-drugs campaign and programs."

Villar said the US State Department's report confirms his belief that
drug addiction was connected with criminality.

But Sen. Ramon "Bong" Revilla Jr. said the US report was unfair,
considering the recent accomplishments of authorities in fighting drug
syndicates.

"The statement is very disappointing because it will definitely have
an impact on our economy," he said. "Well-meaning investors might shy
away from the country."

But Revilla said authorities should take the report seriously and
"begin introspecting on their performances."

"Our government should put more premium on the anti-illegal drug
campaign and pour in more resources and logistics," he said.

In its 2006 International Narcotics Control Report, the US State
Department said the illegal drug trade in the Philippines had evolved
into a billion-dollar industry.

The annual report, a requirement of the US Congress, assesses efforts
of other countries to combat the illegal drugs trade.

"The Philippines is a narcotics source and transshipment country," the
report said.

"Illegal drugs enter the country through seaports, economic zones, and
airports. With over 36,200 kilometers of coastline and 7,000 islands,
the Philippine archipelago is a drug smuggler's paradise."

The Philippines also continues to experience an increase in foreign
organized criminal activities from China, Hong Kong and Taiwan, the US
State Department report added.

It said rebel groups source part of their funding from trafficking
narcotics and arms, as well as money laundering through alleged ties
to organized crime.

"There is little cash and negligible amounts of US dollars used in the
transactions, except for the small amounts of narcotics that make it
all the way to the United States for street sale," the report said.
"Drugs circulated within the Philippines are usually exchanged for
local currency."

The report referred to the Philippines as a regional financial center
where most narcotics trafficking through the country is done through
letters of credit.