ILOILO CITY -- The government has reactivated the Office of the Investment Ombudsman to help address red tape that is hindering investments in the country.

Trade Secretary Peter Favila said the office was reactivated in response to the clamor of businesses and investors to address bureaucratic hindrances especially at the local level. The office was created under the administration of deposed President Joseph Estrada but was deactivated when the present administration took over.

Favila said the office will oversee graft charges against government officials from agencies, offices and bureaus that are perceived to be blocking investment activities.

He said that with the office in place, they hope that more investments would come in amid renewed confidence in the country's economic performance.

The office will be initially be located at the Department of Trade and Industry office but Favila said they are still discussing the final set up of the office.

The Investment Ombudsman will also provide advice on various investment and business laws, rules and regulations and facilitate the processing of investment-related requirements.

Favila also announced during an economic briefing here Monday that government agencies have put up an investment promotion fund to help local entrepreneurs especially those engaged in small and medium enterprises (SMEs).

The fund will allow exporters to who are having great difficulty to tap funds to have financial assistance to boost their competitiveness in the international market.

Favila said this would be utilized to help in product design, marketing and other programs.

The DTI and the Department has contributed P100 million each to the fund. The Bangko Sentral ng Pilipinas has put in an initial contribution of P50 million initial fund and also the National Economic Development Authority (P20 million) and Philippine Exporters Confederation (P10 million).

Favila said these measures will help sustain the growth rate recorded last year which was the highest in eight years.

The country's gross national product (GNP) grew by 6.2 percent while the gross domestic product grew by 5.4 percent last year. The GDP is the total value of goods and services while the GNP includes the GDP and remittances of overseas workers.

Favila said exports grew by 14 percent last year from $41.3 billion in 2005 to $47 billion, the highest growth since 1998.*NPB

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