Securities and Exchange Commission : Legacy’s pre-need firm anomaly

For claiming that she has no history of misdemeanor during her 53 years in public service, Securities and Exchange Commission (SEC) chairperson Fe Barin is being taunted by her critics who have unearthed a paper trail that involves a deal between her husband and one of the companies she regulates.

Documents made available to Newsbreak and ABS-CBN News showed that pre-need firm Legacy Consolidated Phils., Inc paid for the cost of transferring the ownership of a sports utility vehicle (SUV) previously owned by Alejandro Barin, the SEC chair’s husband.

A check voucher dated August 6, 2007 showed that Legacy’s pre-need firm issued a check to its assistant vice-president for administration, Agnes Santiago, to advance P5,400 for the cost of the transfer. (Santiago is one of the Legacy officers implicated by the regulators, Bangko Sentral ng Pilipinas (BSP) and the SEC, in the syndicated estafa cases filed at the justice department).

The vehicle is a 1997 model of Mitsubishi Pajero that the internal Legacy Consolidated office memos referred to as “previously assigned to Atty. Alejandro Barin.”

The pre-need firm’s senior vice-president Christine Limpin, signed the internal memo authorizing the cash advance. According to ABS-CBN News’ research, Limpin is now the registered owner of the vehicle

One question nags: Why was Limpin able to source funds--however meager--for the purchase of a car from a company that has a fiduciary duty to its pre-need plan holders?

However, another question seems as important: Why was the SEC chair’s husband involved in a deal with a company that the chair regulates?
Regulator

The SEC chair oversees the pre-need industry, a retail financial services industry engaged in selling quasi insurance and investment products focused on funding planholders’ future needs for education, pension, and memorial.

In the wake of the revelations made at a Senate hearing last week that Jesus Martinez, one of the five SEC commissioners, received cash and a property from Legacy’s founder Celso de los Angeles, legislators have called for the resignation of all five SEC commissioners.

Senate President Juan Ponce Enrile and Senate Trade and Commerce committee head Mar Roxas specifically asked for Barin to tender her resignation for being remiss in regulating the pre-need industry.

In a press conference in Malacanang, however, SEC chair Barin said she has no intention of resigning. She stressed, "I will be 75 soon. I spent 53 years, more than half of my life, in government. I hope it will not end this way." She said she will carry on with her job and has no plans of stepping down or going on leave unless asked by President Arroyo herself.

In the continuing messy saga of the Legacy Group of financial service firms, the paper trail involving the Pajero deal puts Barin as the latest in the growing list of politicians and political appointees dragged in the efforts to follow the money in this multi-billion peso controversy.
No smoking gun

Unlike the paper trail that involved Martinez, however, the paper trail for the Pajero deal falls short of being a smoking gun.

In the Senate hearing last week, de los Angeles transferred a property in Parañaque City to the name of his son, Nicolo Martin, who in turn sold it to Martinez’s son. (In a media interview last week, Nicolo Martin tearfully denied being aware of the deal's implications. He said he just followed his father's instructions to sign the sale documents).

The timing of the transaction was questioned at the Senate since the sale between the sons of de los Angeles and Martinez occurred at a time when the three Legacy pre-need firms could not obtain a dealers license from a SEC unit that Martinez oversees.

Not long after the property sale, the Legacy pre-need firms were granted their dealers license in April 2008, essentially paving the way for the firms to amass more funds from the unknowing public.

This direct link was not as clear in the Pajero transaction involving Alejandro Barin, the SEC chair’s husband.

Mrs. Barin told ABS-CBN News that they owned the Pajero since 2001 and that she confronted her husband in 2007 when she learned that he sold it to Legacy’s officer, Limpin.

“When I came to know about the sale, I asked him why do you have to deal with them? You know that you are not supposed to deal with anyone who intends to do business with the SEC, so please lay off,” Mrs. Barin narrated. She added that Mr. Barin did not intercede in Legacy’s transactions in SEC.

There was no proof available that the Barin couple earned a handsome fee from the Pajero sale.

In 2007, around the time the Pajero sale occurred, Legacy Consolidated was one of the troubled pre-need firms that did not meet SEC’s requirements before the regulator renews their permits to continue operations.
Lubao

Atty. Alejandro Barin hails from Lubao, the hometown of President Arroyo.

In the late 1950’s, Mr. Barin was a junior associate at the law firm of President Arroyo’s father, Diosdado Macapagal. When the older Macapagal became president in the sixties, Mr. Barin declined the latter’s offer to join the cabinet, but he inherited the law firm’s big-time clients, including the rich Arroyo family.

In the seventies, Mr. Barin and Mike Arroyo, who eventually became President Gloria Arroyo’s husband, became partners in a law firm.

Mr. Barin is currently one of the commissioners at the Energy Regulatory Commission (ERC). He was once the officer-in-charge until Zenaida G. Cruz-Ducut, another political appointee from Lubao town, took over as chairperson in July 2008

Mrs. Barin was the first to chair ERC when it was constituted in 2001. -- with Lynda Jumilla, ABS-CBN News (abs-cbnNEWS.com/Newsbreak)

Justice is for sale : Supreme Court Chief Justice P20-Million bribe money

MANILA, Philippines – A litigant in the citizenship case of Negros Oriental Rep. Jocelyn Limkaichong accused Supreme Court Chief Justice Reynato Puno of receiving P20 million in bribe money to favor the incumbent lawmaker.

Businessman Louis Biraogo on Tuesday said he received an anonymous email dated March 13, 2009 saying that the SC would refer the case to the House of Representatives Electoral Tribunal (HRET) to delay the court’s proceedings on the matter.

“This perpetuates the suspicion of the people that justice is for sale in this country. In fact, Chief Justice Puno was given P20 million worth of reasons for pressuring the new ponente, Justice [Diosdado] Peralta to dismiss the Supreme Court cases and send it to HRET," a portion of the email read.

Biraogo provided the media with copies of the email in a press conference.

Asked for comment, SC spokesman Jose Midas Marquez, who is also Puno’s chief of staff, said they would like to see a copy of the anonymous letter first before making a statement to the media.

“I understand he distributed a letter to the media. Haven’t seen the letter yet," Marquez said in a text message to GMANews.TV.

It was Biraogo who had earlier accused Puno of sitting on the Limkaichong case, an allegation that triggered widespread rumors of alleged moves to oust the chief justice in January 2009.

In 2008, Biraogo obtained a leaked copy of the unpromulgated ruling on Limkaichong’s case. After an investigation, the SC ruled that retired Justice Ruben Reyes, the case’s former ponente, was responsible for the premature release of the confidential document.

Biraogo had earlier said “a concerned court employee" gave him the leaked copy of the draft ruling.

In Tuesday’s press conference, Biraogo said he believed in the credibility of the email’s anonymous sender, saying the copy of the ruling he obtained matched with the SC’s draft decision

The case against Limkaichong, who is accused of not being a natural-born Filipino citizen, remains pending at the SC.

In 2008, the SC deferred the promulgation on the ruling because nine of the 14 justices who signed the ruling concurred only “in the result." An “in the result" concurrence refers to agreeing to a decision on a case alone, and not on the arguments on which a decision was based on, thus, the ruling supposedly lacked doctrinal value. - with Carlo Lorenzo, GMANews.TV

Modus operandi in bid fixing

Bribery used to be a simple operation, the exclusive domain of contractors. They only have to bribe officials in exchange for a winning bid. Now, a well-entrenched Mafia--involving colluding government officials, lawmakers and favored firms--dictates who wins and loses in government projects.

Bidders and those who have first-hand knowledge of the wheeling and dealing in government contracts fleshed out to World Bank investigators how the anatomy of corruption works in the Philippines.

It is a scheme that bidders are forced to play, if they have to have an even chance of bagging a contract. Those who do not cooperate “are subject to elimination from bidding in future contracts.” This was the case of one foreign contractor in a public works project that refused to play the game. The foreign contractor was among those interviewed.

As detailed by those interviewed by the WB, in large government contracts, “ the process is completely fixed. Prices are determined, and winners and losers are determined, before the bidding even takes place.”

In the past, contractors would just obtain the approved budget contract (ABC) for a package by bribing officials within an agency. Then bidders would just arrange among themselves which contractor would bag the contract.

Politicians set the rules

But this time, it is now the politicians who set the rules. “Contractors engage in a sort of auction, where the contractor willing to pay the largest bribe can win the politician’s support,” one local contractor told WB probers. We got portions of the WB inquiry containing interviews with local and foreign contractors and a former government official.

Normally, one has to deal with politicians in both the national and local level—the former who controls the implementing agency and the latter, whose area is hosting the project. One former senator was known “to be very active in using his influence to further the collusive bid scheme.”

At this point, word of honor is not honored. The one who has the money reigns supreme. Bribe, preferably, should be given at once to seal any agreement.

It is also crucial to be in the favor of the ‘facilitator’ of the bidding manipulation, which bidders say is contractor Eduardo de Luna, owner and proprietor of the now-blacklisted E.C de Luna Construction Corp. for public works projects. Contractors interviewed by WB says de Luna has connections in the public works department who are part of the cartel.

At least two WB witnesses identified them as Public Works assistant regional director for Region 4 Huillio Belleza and one Tito Miranda, supposedly assigned at the DPWH-Philippine-Japan Highway Loan Project Management Office, as members of the Mafia.

We tried to get in touch with Belleza and Miranda but they were out of office as of this writing.

SOP and sham bidding

Several witnesses told WB probers that de Luna enjoys the backing of First Gentleman Miguel “Mike” Arroyo. De Luna, they say, acts as Mr. Arroyo’s go-between in foreign assisted projects.

One contractor said E.C de Luna is so powerful that it controls most of the bidding at the Department of Public Works and Highways. The WB source said it was through E.C. de Luna operations that China Geo Engineering Corp., China Road and Bridge Corp, and China Wu Yi Co. Ltd., three of the blacklisted firms by the WB, won the bidding for WB-funded projects. The source had predicted that these three Chinese would win the bids before the tender offers were opened.

Once the ‘winning’ firm has been identified with the blessing of the cartel, the sham bidding begins. Designated ‘losing’ bidders, in collusion with the syndicate, complete the charade.

The previous standard operating procedure (SOP) was for the ‘winning’ bidder’ to provide three percent of the advance payment for the project to the losing bidders. SOP to the politicians is also taken from the advance payment. One former public works secretary was also reported to be on the take.

But recently, the practice is to split a percentage of the advance payment between the politicians and the intermediary. A lawmaker who acts as sponsor to the bidder gets 15-20 percent of the project value while local officials share between 2-3 percent. The intermediary is responsible for the share of the losing bidders.

'No one can stop it'

The kickback is nothing to scoff at. Total payoff, according to the local contractor, ranges from 15-27 % of the total value of the contract. This does not include up to 20 percent in “unnecessary costs added to the project,” a former government official with intimate knowledge of bidding in the public works told the WB’s Integrity Vice Presidency unit. The “unnecessary costs” are mean to cover the costs incurred for the bribe.

Expectedly, all payments are in cash. “Company books do not reflect any of these payments in any event, because the books are faked to avoid taxes, ” said a local contractor.

The former government official supported this assertion, adding that bribery extends to internal revenue officials to keep the company’s financial books above board.

In essence, one confidential witness, also a contractor, told WB probers, is that “the corruption involvement in this bidding is extensively from FG (First Gentleman and congressmen to DPWH officers and contractors. No one has the ability to stop it.”
ABS-CBN/Newsbreak
as of 02/03/2009 4:16 PM

RP NOW SEEN AS MORE CORRUPT THAN INDONESIA

RP NOW SEEN AS MORE CORRUPT THAN INDONESIA
$1 trillion in bribes paid each year

SINGAPORE - To understand the challenge faced by emerging Southeast Asian economies struggling to shake off a corrosive culture of corruption, you can start by counting the parking tickets issued to foreign diplomats in Manhattan.
The league table of the worst parking offenders in New York embassies tells the same story as other methods economists have used to gauge countries’ propensity for corruption — many Asian nations fare very poorly in upholding the rule of law.
And the fact national corruption patterns persist even among diplomats in a foreign city suggests that a solution requires more than just better law enforcement — it needs fundamental institutional reform and a wholesale change in attitudes.
"You cannot fight corruption just by fighting corruption," said Daniel Kaufmann, who spearheaded the World Bank’s efforts to improve the study of governance and the rule of law, and who estimates that $1 trillion of bribes are paid every year.
Evidence showed there was little to be gained from "yet another anti-corruption campaign, the creation of more commissions and ethics agencies, and the incessant drafting of new laws, decrees, and codes of conduct," he said, adding that "fundamental and systemic governance reforms" were needed instead.
Economists who specialize in governance say combating corruption is not just a moral imperative — it is essential for promoting long-term economic growth and investment.
That means economies like Singapore and Hong Kong, which have successfully sought to crack down on corruption, have received real economic benefits in return. And southeast Asia’s laggards have driven investors away because of their poor reputation.
"International capital flows are strongly affected by corruption," said Johann Graf Lambsdorff, professor at the University of Passau and creator of Transparency International’s Corruption Perceptions Index (CPI). "Capital flows into countries that have a reputation of limiting corruption."
There is no objective way of measuring corruption. Most methods of ranking countries rely on tracking perceptions, and two of the most widely followed — Kaufmann’s World Governance Indicators for the World Bank, and Transparency International’s CPI — aggregate several surveys to produce a composite rating.
They paint a remarkably consistent picture of southeast Asia.
Singapore is the clear leader in the region according to all surveys. At the opposite end of the scale, Myanmar is among the world’s most corrupt countries — of 180 nations ranked by Transparency International, only Somalia rates worse.
Of the emerging economies that most interest investors, Malaysia has a clear advantage — the World Bank indicators gave it a 2007 score of 62.3, above Thailand on 44.0, Vietnam on 28.0, Indonesia on 27.1 and the Philippines on 22.2. Transparency International’s CPI ranks the countries in the same order.
Economists say a host of data supports the theory there is a "development dividend" for countries that tackle corruption.
"We estimate that a country that improves its governance from a relatively low level to an average level could almost triple the income per capita of its population in the long term, and similarly reduce infant mortality and illiteracy," Kaufmann said.
Lambsdorff said there was convincing evidence that not only foreign direct investment but also portfolio investment was affected by corruption, with studies showing that stock markets outperformed in countries that successfully reduced corruption.
"International investors are more confident of a country, or consider the country to be less risky so don’t seek such a risk premium to invest in a country," he said.
Economists agree that tightening the law is not enough to defeat corruption. Often what is required is a full overhaul of governance and institutions, and a transformation of attitudes.
The New York parking ticket study supports this thesis. In a 2006 paper, Raymond Fisman and Edward Miguel of the US National Bureau of Economic Research collected data on $18 million in unpaid parking fines issued to diplomats between 1997 and 2002.
"The act of parking illegally fits well with the standard definition of corruption, the abuse of entrusted power for private gain," they wrote. Kuwait was the worst offender with 246.2 violations per diplomat. Indonesia had southeast Asia’s biggest tally with 36.1, followed by Thailand with 24.5.
And overall, the parking ticket ranking showed remarkable correlation with more conventional measures of corruption.
"Norms related to corruption are apparently deeply ingrained, and factors other than legal enforcement are important determinants of corruption behavior," Fisman and Migel said.
This raises the question of whether gains in tackling corruption take years or even generations to achieve.
Kaufmann said short-term gains were not impossible: "While it is true that institutions often change only gradually, in some countries there has been a sharp improvement in the short term."
Indonesia ranked among the world’s most corrupt nations five years ago but now outperforms the Philippines in most rankings — a major step forward given the importance of country comparisons in influencing investment decisions.
But perhaps the key finding of economists’ work in measuring corruption is the bleak discovery that there has been no clear trend toward gradually defeating it, either in Asia or globally.
"In spite of improvements in some countries, there have been at least as many countries where deterioration has taken place," Kaufmann said in a World Bank report. "The quality of governance around the world has been stagnant." – Reuters

Anti-Impeachment Payola

Gloria allies line up for P.5M impeach kill prize

Daily Tribune By Charlie V. Manalo and Gerry Baldo
11/26/2008
It’s a cool P500,000 for each of the congressional allies of President Arroyo in exchange for their killing of the impeachment complaint that will be voted upon today at the justice committee, as congressmen found out for themselves yesterday while P500,000 in bundles of P1,000 and P500 bills was being distributed by a Palace ally at the Linden Suites yesterday.
“It’s all over. The congressmen have been paid again — for ‘a job well done’ for Gloria Arroyo,” an opposition congressman who knew about the Linden Suites payoff by Malacañang tipped off the Tribune late afternoon yesterday.
Several congressmen were seen at the Linden Suites, witnesses also confirmed to the Tribune.
But Malacañang, despite the payoffs to congressmen-allies to kill the impeachment complaint, played innocent, as the Palace yesterday challenged the House to resume the hearing on the impeachment case.

Dismissed justice: FG Miguel Arroyo behind my ouster

Dismissed justice: FG behind my ouster


By Aries Rufo, Newsbreak, abs-cbnNEWS.com | 09/16/2008 6:05 PM
For three hours, the mobile phone of Court of Appeals Justice Vicente Roxas kept on ringing but the magistrate was not in the mood to answer the call. It was the afternoon of May 30, and the corporate war between the Lopez group and the Government Insurance System had just reached the CA. A raffle held earlier in the day had picked Roxas as the ponente of the case.

The caller ID displayed the name of a ranking government official, who is known to Roxas. He then received a text message with clear instructions: for him to decide in favor of GSIS over the Meralco case. The instruction, the text said, was from the First Gentleman Miguel “Mike” Arroyo. The text said this was “for the Filipino people.

"I should have accepted the call,” Roxas said, with a tinge of regret and partly in jest.

We interviewed Roxas Monday afternoon and asked him to confirm a report we gathered that Mr. Arroyo tried to reach him when the Meralco case landed on his lap. He hedged at first, but related the attempts to reach him through his mobile phone.

Roxas said his refusal to take the call could have angered the powers-that-be and thus began the orchestrated drive to destroy his reputation. “You destroy the ponente, you destroy the (Meralco decision),” Roxas said.

The 8th division of the CA had ruled that the Securities and Exchange Commission has no jurisdiction over the Meralco row, as it nullified the SEC cease-and-desist order against Meralco from validating the proxy votes of the Lopez group during the May 27 stockholders’ meeting.

It was a scheme he was only able to make sense of after the SC dismissed him from office last week. The rest of this story

SC sacks CA justice, suspends another in bribery scandal

SC sacks CA justice, suspends another in bribery scandal

abs-cbnNEWS.com | 09/09/2008 4:16 PM
The Supreme Court (SC) dismissed from the judiciary Court of Appeals (CA) Justice Vicente Roxas and suspended CA Justice Jose Sabio for two months for their irregularities and improprieties in connection with the bribery scandal involving the Manila Electric Co. and Government Service Insurance System (Meralco-GSIS) case.
Two out of the 15 justices did not take part in the decision imposing penalties on the erring CA justices.
Twelve SC justices voted to dismiss Roxas while one voted for suspension. He was dismissed with forfeiture of all benefits except accrued benefits.
In Sabio's case, 10 voted to suspend him without pay for two months, one voted for a six-month suspension, one voted for a reprimand since he was the whistleblower, and one voted for dismissal.
The SC reprimanded Court of Appeals Presiding Justice Conrado Vasquez for his failed leadership in handling the bribery case.

The SC admonished Justice Myrna Dimaranan-Vidal for allowing herself to be rushed by Justice Roxas to sign the July 8, 2008 decision granting Meralco's request for a temporary restraining order, which allowed the election of a new board and the Lopez family to maintain control of Meralco.
As for CA Justice Bienvenido Reyes, the SC found him guilty of simple misconduct. He was reprimanded and given a stern warning.

The SC called on the Department of Justice to conduct a preliminary investigation of businessman Francis de Borja, who allegedly tried to bribe Justice Sabio with P10 million so that another justice can handle the Meralco-GSIS case.

With respect to Presidential Commission on Good Government (PCGG) Chairman Camilo Sabio, the SC directed the Office of the Bar Confidant to conduct disbarment proceedings against Camilo for trying to influence his brother, Jose, to support the GSIS in its battle for control of Meralco. The rest of this story

Korea's Hanjin alleged P400 M bribery offer

IT�S AGAIN GLORIA IGNORING NERI DISCLOSURE

Hanjin bribery bid a reprise of NBN scam, says Lacson

By Sherwin C. Olaes

Daily Tribune 05/04/2008

The brewing Hanjin Heavy Industries amd Construction Corp.�s (Hanjin) bribery mess was a scene taken from the ZTE-National Broadband Network (NBN) scam when President Arroyo asked former Socio-Economic Planning Secretary Romulo Neri why he refused to accept a P200-million bribe, according to Sen. Panfilo Lacson.

Mrs. Arroyo again failed to immediately investigate Korean industrial Hanjin bribe offer that Tagoloan, Misamis Oriental Mayor Paulino Emano told Mrs. Arroyo.

Emano said the bribery attempt was for him to allow a $2-billion shipyard project of the firm despite the absence of an environmental clearance.

If Emano was indeed offered P400 million in bribe and Mrs. Arroyo ignored the mayor�s report, a more interesting question now comes to mind. �How much was offered or actually given to Malaca�ang or Mrs. Arroyo?,� Lacson asked.

The payoff mess involving Hanjin is turning out to be another scandal in the mold of the $329.48 million ZTE-NBN deal, Lacson said.

Lacson noted Mrs. Arroyo did not order an investigation when Emano told her about a P400 million bribe offer, just like she ignored Neri�s report of a P200 million offer.

�It�s Sec, may 200 ka rito (Secretary you have 200 in the project)� all over again.

Lacson was referring to the notorious exchange between Neri and former Commission on Elections (Comelec) chairman Benjamin Abalos that was revealed by Neri himself during a Senate inquiry into the NBN bribery anomaly.

When Mayor Paulino reported to Mrs. Arroyo a P400 million bribe offer by Hanjin, instead of ordering an immediate investigation, he was ignored by Mrs. Arroyo, Lacson said.

�Now that he is talking a bit, a full-blown investigation is being ordered,� Lacson added.

Malaca�ang, meanwhile, indicated being irked over what it termed as an exaggeration by Emano that Mrs. Arroyo ignored him when he reported the alleged bribery attempt by Hanjin.

Deputy presidential spokeswoman Lorelei Fajardo said there�s no truth Emano�s claim but she said Mrs. Arroyo, nevertheless, called the attention over Hanjin�s manhandling complaint against him.

�In view of the conflicting reports or assertions from both sides of the story, the president has directed (Department of the Interior and Local Government) Secretary (Ronaldo) Puno to initiate a fact finding investigation, to ferret out the truth,� she said.

Lacson said last year, when Neri, now chairman of the Commission on Higher Education, told Mrs. Arroyo about a P200 million bribe offer from Abalos, Mrs. Arroyo merely told him not to accept the bribe, but to push through with the ZTE project.

Senate hearings on the ZTE mess revealed a web of corruption involving kickbacks and commissions that jacked up the price of the contract by more than 200 percent, Lacson said.

Lacson also called for the immediate securing of Emano, adding the mayor must now tell all bout the attempted bribery, and Mrs. Arroyo�s possible attempt at a cover-up.

�Mayor Emano must be protected and secured immediately. Thereafter he must tell the details of the whole truth about the attempted bribery involving Hanjin, including making Mrs. Arroyo at least an accessory after the fact,� he said.

Lacson said it is amusing that Mrs. Arroyo would be �furious� only now, saying she should have become furious the moment the bribe offer was reported to her.

�Why did she not immediately order an investigation? Is she ordering one now only because the mayor made it public? And if P400 million was offered to local officials, how much more was offered to Malaca�ang?� he said.

Emano had said he was offered the amount to allow the continued operation of the shipbuilding facility in the town. Emano ordered Hanjin to cease operation after it failed to present an environmental compliance certificate (ECC) and a municipal building permit.

Hanjin officials, through a letter-complaint filed before the office of Misamis Oriental Gov. Oscar Moreno, claimed Emano�s men manhandled one of their representatives.

Hanjin had planned to operate a $2 billion shipyard that would extend from Tagoloan to Villanueva in Misamis Oriental. Its training center alone would occupy eight hectares, while the planned shipyard would be on a 70-hectare property in Tagoloan and on a 400-hectare property in Villanueva.

Fajardo, however, was mum over reports that the President allegedly scolded the mayor upon hearing from the latter Hanjin�s bribe offer.

Fajardo said Puno has already sent Philippine National Police (PNP) investigators to check on the veracity of the mayor�s claims against Hanjin.

�We have to await their (DILG and PNP) report,� she said.

Fajardo stressed that there�s no sacred cow in the government, denying the Senate�s claim that Hanjin is being protected by President Arroyo.

�No. There are no sacred cows, the president as the primary defender of the Constitution, will never allow anybody to be above the law. The law shall be applied to all without fear or favor. The matter is presently being investigated. It is the opportunity for both sides to present their pieces of evidence, if any and those found to be liable for any wrong doing must face the music in court,� she said.

For his part, Press Secretary and presidential spokesman Ignacio Bunye in a radio interview said it was lamentable that the Hanjin project is being stalled by the bribery controversy.

�There are claims and counter claims, charges and counter charges. Secretary Puno has created a team to investigate the charges. This lost opportunity will cost us all, not only of our country but the local government,� he said.

Bunye expressed hopes that Hanjin would resume the planned shipyard project.

�Those (bribery and extortion) charges will be investigated and we hope that this situation will be resolved,� Bunye added.

Senate investigators, led by Sen. Pia Cayetano, however, said that Hanjin may face charges over the bribery allegations.

Cayetano said Subic Bay Metropolitan Authority (SBMA) officials were found to have allegedly committed grave violations in another project of Hanjin, allowing the Korean firm to construct two high-rise condominium buildings within its forest reserve area and the firm would likely be facing numerous serious charges.

Hanjin is likely to be slapped with more charges, according to Cayetano, chairman of the environment committee in the upper chamber, as it was found to have started ground works for the structure in Misamis Oriental even before an environmental clearance or permit was issued to the project.

Cayetano expressed outrage over the reported bribe from Hanjin to municipal Mayor Paulino Emano of Misamis Oriental, in exchange for his reversal in stopping the construction of he shipyard.

But Cayetano said she more outraged at the fact that even as Emano bared the bribe offer, and informed Mrs. Arroyo on this, the President even had the effrontery to scold the municipal mayor, who was merely doing the right thing, and following the law.

�I am outraged to hear that Hanjin offered such favors to the local official to allow them to continue construction even without first securing a municipal building permit and environmental compliance certificate (ECC), among others. These are basic requirements under the law, regardless of whether you�re a local or foreign investor,� said the senator, referring to the recent revelation made by Tagoloan Mayor Emano ON the P400-million contract offered to him by Hanjin.

�But what I found more revealing is when President Arroyo even scolded Mayor Emano (last Wednesday in Cagaytan de Oro City) for standing his ground, even if he only acted in accordance with his duties as an elected public official.

�The President also allegedly ignored him when he reported the matter about Hanjin�s offer,� Cayetano pointed out.

The President is also said to have ignored the baring by then National Economic Development authority (Neda) chief Romulo Neri of a P200 million bribe offer allegedly made by then Commission on Elections chairman Benjamin Abalos Sr., for Neri to push the ZTE-National Broadband Network project, which has been found by the Senate to have been kickback-laden to the tune of $135 million or so. Sherwin C. Olaes

Resign Gloria Macapagal Arroyo!

Banner from Philippine Experience blogsite

Philippine bogus President Gloria Arroyo has no moral authority to lead our divided nation. Political scandal, scams and anomalous transactions under her inept corrupt regime is no longer acceptable. She is dragging the Senate investigation on Hello Garci political scam and China's ZTE Corp. broadband scam. The Arroyo government is run by thieves and Mafia-like cronies.

IBON Survey: Most Filipinos Want Arroyo To Step Down Due To Corruption Charges

Recent corruption scandals besetting the Arroyo administration have led most Filipinos to call for President Gloria Macapagal-Arroyo to step down, according to the results of the latest IBON survey.
Asked if they were aware of calls made recently by members of the Church and other sectoral groups for Pres. Arroyo to resign from office and face corruption charges levelled against her, 75% of the total 1,503 survey respondents said yes.
Of these, 77.4% said they agreed with such call to step down.
Various interfaith and sectoral groups such as Solidarity Philippines, Concerned Citizens Group, United Church of Christ in the Philippines, among others, have called for a rejection of what they called as Arroyo’s morally bankrupt government.
The IBON nationwide survey was conducted from January 7 to 14, 2008, with 1,503 respondents. It has a margin of error of plus or minus three percent.

Gloria Arroyo aware of corruption in NBN -ZTE deal before signing

Photo: Far3StaticFlicker
Gloria Arroyo Confessed Her Crime
Whoever made Gloria Arroyo’s new alibi script is dumb idiot. It seems that she wants to tell the Filipino people ‘another lapse of judgment’. Gloria committed a heinous crime. She did nothing to stop the anomalous deal. The bitch is lying big time.

Did Gloria Arroyo inform her Cabinet men about the irregularities in the ZTE deal before they went to China? Who are involved? What are the specific misdeals? Did she order an official investigation upon learning the alleged irregularities? There are more questions than answers. Why only now?

GMA aware of corruption in NBN deal before signing

By Sherwin C. Olaes
02/24/2008
President Arroyo yesterday admitted she was aware of the purported corruption in the ZTE-National Broadband Network (NBN) deal that the government forged with the Chinese firm in April last year.
The Chief Executive, during a radio interview over dzRH, however, stressed that she was only informed of the irregularities in the broadband project the night before signing the supply contract.
“I was told about corruption the night before the signing of the supply contract. How could we cancel it the night before the signing,
given that another country was involved in this contract?” she said.
Mrs. Arroyo added she pushed through with the contract because of the compromise with China, whose government-to-government business relationships could have been affected.
The President witnessed the signing of five contracts between the Philippines’ Transportation and Communications Secretary Leandro Mendoza, Education Secretary Jesli Lapus, Trade Secretary Peter Favila and China’s ZTE, Tsinghua Tongfang and other Chinese contractors last April 21, 2007.
It was Mendoza and ZTE president Yu Yong who signed the NBN contract that was witnessed by Mrs. Arroyo.
The Philippine government’s copies of the contract, which were reportedly stolen, had been reconstituted. Daily Tribune

Gloria Macapagal-Arroyo: The Most Corrupt President

Crocodile Gloria

Gloria Arroyo’s top ten wish list:
1. The P 28 billion North Rail project - The cost of the anomalous deal is $16 M per kilometer, and the 3% interest p.a. China Eximbank financed the project.

2. Fertilizer Scam - P 728 million of the Ginintuang Masaganang Ani (GMA Rice) program was used in the 2004 presidential election, with former Agriculture Undersecretary Jocelyn Bolante as the chief architect of the scam. Bolante’s plunder case is rotting at the Office of the Ombudsman.

3. Phil Health Cards - Dr. Francisco Duque III of allegedly using some P5 to 25 million in taxpayers' funds to finance the election campaign of President Arroyo last 2004 elections. Overseas Filipino workers' P500 M OWWA trust funds had been wasted.

4. The Jose Pidal Money Laundering Case – Presidential husband Mike Arroyo has a 200-million-peso (3.64 million dollars) bank account with local creditor Union Bank under his alias "Jose Pidal," where funds from campaign supporters and alleged anomalous deals were laundered.

5. Mega-Pacific Scam - The botched P1.3-billion poll modernization project of the Commission on Elections (COMELEC) goes all the way up to Malacañang. Overpriced by P500 million, the poll body ignored its own bidding rules and changed these to suit one favored bidder, Mega-Pacific Corp.

6. Macapagal Boulevard Scam – It cost P1.1 billion to build. More than P837 million of this amounts went to JD Legaspi Construction, one of the three firms that constructed the project.

7. $470 M IMPSA Power Plant Deal -$14 M bribe allegedly went to Gloria and Jose Pidal.

8. The over-priced $325 M ZTE-NBN broadband project-$70 M bribe allegedly pocketed by Gloria and Jose Pidal. Former elections chief Benjamin Abalos brokered the deal with China's ZTE Corp.

9. The over-priced $420 M ZTE-Cyber education project-Under Senate investigation.

10. Malacanang's payola scandal and Europe junket

Gloria ‘most corrupt’ president in RP history—Pulse

12/12/2007
The Philippines is not only the second most corrupt country in Asia, and one of the top 10 most corrupt countries in the world, as measured by Transparency International, a global corruption watchdog, but also that its president, Gloria Arroyo, is the most corrupt president in Philippine history, as measured in a recent Pulse Asia survey conducted last October, but kept embargoed by the survey outfit until yesterday.
Mrs. Arroyo, as the Pulse survey showed to be viewed by the Filipino people as the most corrupt ever, topped the list with 42 percent nationwide. Her rating is even worse in the National Capital Region (NCR) which gave her a 50 percent corrupt rating, topping the most corrupt list. Luzon gave her the same percentage in corruption. Visayas, her bailiwick, gave her a 27-percent corruption tag rating while Mindanao gave her a rating of 34 percent.
Among socio-economic classes, ABC, or the so-called elite, gave her 50 percent in gauging her as the most corrupt president in Philippine history; the D class, gave her a 43-percent rating, while the E class or the poorest of the poor, measured her at 35 percent.
Corazon Aquino, who was president from 1986 to 1992, was viewed as the least corrupt president or not corrupt, followed by Joseph Estrada, whom respondents also voted as the second least corrupt, or second president who is not seen as corrupt. Daily Tribune

Transparency International : Bribery in RP among worst in world

The corrupt Arroyo government is just doing a lip service in the fight against massive corruption in the bureaucracy. Gloria Arroyo and her cohorts are responsible for bleeding the treasury dry. The buck stops at Malacanang Palace. The Big Fish is elusive and well-protected by Jose Pidal mafia gang. Transparency and accountability does not exist under the Arroyo regime. Malacanang Palace is blocking any congressional investigation on alleged misused of public funds, scams and bribery.


64% say GMA gov’t ineffective vs corruption

Bribery in RP among worst in world — TI

By Chito Lozada Business Editor

12/07/2007

The Philippines under the Arroyo regime has climbed high in the global corruption index.

Corruption watchdog Transparency International (TI) ranked the Philippines in the top rung of countries most affected by bribery in the world based on its Global Corruption Barometer 2007 report released yesterday.

According to the corruption watchdog, it is the police, politicians and judges who are the most corrupt.

One in every four persons has been asked to pay a bribe to the police, and political parties and parliaments or Congress, are the most tainted by corruption, a TI study showed.

The poor are targeted for bribes in both developed and developing countries.

The study “has made it clear that too often, people must part with their hard-earned money to pay for services that should be free,” said TI chairman Huguette Labelle. “And they do not see enough commitment when they look to their governments and leaders.”

The study found that among the countries with the highest level of petty bribery, with 30 percent of respondents reporting paying bribes, is the Philippines.

Mrs. Arroyo has been mired in corruption scandals that keep on coming, and where she has been seen to block all investigations into the corruption scandals, the latest of which are the China ZTE Corp. National Broadband Network project, along with the P500,000 cash bribes each given to some 190 congressmen and a big number of local executives, right in Malacañang.

The World Bank also recently suspended funding of several road projects in the country owing to the discovered “excessive” corruption and huge overpricing in bidding for the projects.

The TI survey showed the Philippines along with Albania, Cambodia, Macedonia, Kosovo, Nigeria, Pakistan, Romania and Senegal in the top rung of countries with the highest incidences of corruption in the world.

The TI survey polled more than 63,000 people in 60 countries between June and September 2007. It showed above 33 percent reported having paid a bribe to obtain a service in the group that included the Philippines.

The TI, in its yearly Corruption Perceptions Index, showed that the Philippines has consistently fallen in ranking during the term of President Arroyo.

On respondents evaluation of the Arroyo government’s efforts to fight corruption, an overwhelming 64 percent said the measures being implemented were ineffective against 24 percent who said the efforts were effective.

The second rung of countries affected by corruption that included Bolivia, Dominican Republic, Greece, India, Indonesia, Lithuania, Moldova, Peru, Serbia and the Ukraine had 21 percent to 33 percent of respondents reporting having paid a bribe.

The survey also showed that 70 percent of those surveyed in the Philippines believe that the level of corruption will further increase in the next three years.

In Asia, the Philippines was only second to Cambodia on the percentage level of businesses which reported that they have to pay to obtain services.

On a ranking of 1 to 5, with 1 being the cleanest and 5 being the most corrupt, respondents said the police were the most corrupt in the country with a 3.6 rating, followed by the Parliament and the legislature, 3.5; political parties, 3.4; tax revenue authorities, 3.1; and 3 for the legal system and the judiciary.

On views of corruption in the future, 79 percent of respondents believe that the level of corruption will rise in the next three years, which the second highest in the region next only to India with 90 percent seeing a worsening of the corruption level in the next three years.

One in every four people has been asked to pay a bribe to the police, and political parties and parliaments, and they are the most tainted by corruption, the TI survey shows.

The poor are targeted for bribes in both developed and developing countries, according to the watchdog’s Global Corruption Barometer 2007.

The study “has made it clear that too often, people must part with their hard-earned money to pay for services that should be free,” Labelle stressed. “And they do not see enough commitment when they look to their governments and leaders.”

By region, Africa experiences the most demands for bribes, the study found.

The poor are hit hardest by petty bribery as they are more likely than those from a high-income bracket to pay bribes when seeking services.

And, TI said, that rule held true regardless of whether respondents were from richer or poorer countries.

Telephone and gas providers were the least likely to demand bribes, while the police were the worst offenders.

Twenty-five percent of respondents who came into contact with the police were asked to pay a bribe and one in every six reported that they ended up paying a bribe.

Judges in many countries are happy to take a bribe in return for dismissing a case or influencing a verdict in a court case, it was also found.

In the Philippines, this is common knowledge.

In Pakistan, for example, 96 percent of those questioned reported corrupt practices in courts.

“The police and the judiciary in many countries around the world are part of a cycle of corruption, demanding bribes from citizens,” TI’s managing director Cobus de Swardt said in a statement.

“This troubling finding means that corruption is interfering with the basic right to equal treatment before the law.”

Labelle said however that TI had noticed some cause for hope.

“We are heartened... that the public is increasingly demanding the accountability of the very institutions that most affect their lives, as this is a powerful driver of change,” she said.

The police and the judiciary featured as the services most likely to demand bribes. This result shows a serious threat to rule of law worldwide and proof that the basic right to equal treatment before the law is not guaranteed, according to TI.

“Turning promises into action is essential if anti-corruption efforts are to have an impact on the lives of ordinary people. Governments are key to making good on commitments to fighting corruption. But governments are not alone in their responsibility. We need to see concerted action from civil society and the private sector too,” Labelle said.

“The Global Corruption Barometer 2007 is a wake-up call, and a reminder that people around the world are increasingly demanding an end to corruption and its terrible cost,” Labelle added.

The Berlin-based organization also produces an annual ranking of countries perceived to be the most corrupt. Daily Tribune

Malacanang's cash bribes came from PNP intelligence funds

Cash gifts’ from Palace via PNP intel funds
By Angie M. Rosales
11/13/2007
The P500,000-cash bribes stashed in brown gift bags handed to congressmen and local executives didn’t come from the governors’ league, nor from President Arroyo’s political party Kampi (Kabalikat ng Malayang Pilipino) but from the intelligence and counterinsurgency funds of the Philippine National Police (PNP) — at least P160 million worth in cash — further bolstering charges that the cash bribes were handed out with the knowledge and consent of Mrs. Arroyo, having allegedly taken this from the police intelligence budget, over which she exercises control.
The amount could reach as much as P1 billion as an alleged paper trail shows there were purported “clearinghouses” used in the release of the funds, suspected to be the funds allocated to the PNP, as pronounced by Mrs. Arroyo, for counterinsurgency or counterintelligence funds ordered released by the Department of Budget and Management (DBM) several months ago.
Opposition Sen. Panfilo Lacson came up with this disclosure on the eve of the scheduled opening of the Senate inquiry into the alleged payoff incident right inside Malacañang last Oct. 11.
Citing sources from the PNP, the agency where he used to be the director general during the Estrada administration, Lacson claimed the alleged cash bribes, worth at least P160 million given to congressmen after the dialog with Mrs. Arroyo, were provided by the Police Anti-Crime Emergency Response (Pacer) and the Police Security Protection Office (PSPO).
“We have sources in the PNP who disclosed to us that the cash gifts handed out in Malacañang to the congressmen as supposedly Kampi funds actually came from PNP funds. Remember President Arroyo authorized the release of P1 billion for counterinsurgency
operations and we received reports from inside the PNP itself that part of that fund to be used for counterinsurgency after it was cleared, went instead to the DILG (Department of Interior and Local Government) or the Napolcom,” Lacson disclosed.
Daily Tribune

Gloria Arroyo, et al face graft charges over ZTE-NBN contract

Let’s observe how Presidential Chief Legal Counsel Sergio Apostol and Solicitor General Agnes Devanadera handle the presidential immunity issue. I think presidential immunity from suit does not covers de facto president or usurper.

What do we expect from Jose Pidal's crony Ombudsman Merceditas Gutierrez? This will be an impartiality test case for Ombudsman Gutierrez. She should be loyal to the Constitution not to Gloria Arroyo or Jose Pidal. The Joc-Joc Bolante fertilizer scam is going nowhere. She even absolved former Comelec chairman Benjamin Abalos’ criminal liability in the over-priced election counting machines. ZTE-NBN scam key player Trade and Industry Secretary Peter Favila should be also included in the complaint.


Arroyo, et al face graft charges over NBN contract

A group led by former vice-president Teofisto Guingona Jr. filed Tuesday a graft complaint before the Ombudsman against President Arroyo and three others in connection with their alleged involvement in the $329 million broadband network project with China's ZTE Corp. ABS-CBNNEWS

‘Abalos tried to bribe ZTE rival into backing out’

Malacanang must protect Elections chief Benjamin Abalos at all cost or he may spill the beans. The revival of Hello Garci political scam and the possible Comelec's involvement in the cover-up is too hot to handle. Massive and systematic electoral fraud in 2004 presidential election may have the blessings of Abalos and Gloria Arroyo. The entire Arroyo government played specific roles in the systematic election fraud and subsequent cover-up operations before and after votes are counted by the joint congressional vote canvassing.

‘Abalos tried to bribe ZTE rival into backing out’

By PAOLO ROMERO
The Philippine Star

Commission on Elections (COMELEC) Chairman Benjamin Abalos allegedly made several efforts last year to bribe the head of a rival proponent of the government’s national broadband network (NBN) project with $10 million to give way to ZTE Corp.

Abalos also allegedly suggested that the contract be overpriced by about $70 million, to be charged as consultancy fees.

A source privy to the alleged bribery attempts said Abalos invited Jose de Venecia III, son of Speaker Jose de Venecia Jr. and co-founder of Amsterdam Holdings Inc. (AHI) to the Wack-Wack Golf and Country Club sometime in December for a breakfast meeting.

The COMELEC chairman is also a ranking officer of the exclusive golf club located in Mandaluyong City.

Neri drops bombshell: Abalos approached me for ZTE

ZTE broadband $330 M misdeal: Elections chief Benjamin Abalos in hot water

Comelec Chairman Benjamin Abalos has no business in DOTC broadband project. He is not an expert in wireless telecommunications. What monkey business he is dealing with China’s ZTE?


Graft raps filed vs DOTC
chief over broadband deal

BY PETER TABINGO
NUEVA Ecija Rep. Carlos Padilla yesterday filed criminal complaints before the Office of the Ombudsman against Transportation Secretary Leandro Mendoza and two subordinates over alleged anomalies in the awarding of the $330 million broadband project to Chinese firm ZTE Corp.
Padilla accused Mendoza and assistant secretaries Lorenzo Formoso and Elmer Soneja of violating the Anti-Graft and Corrupt Practices Act, the Telecommunications Policy Act, the Build-Operate-Transfer Act and the Government Procurement Act.
He said executives of ZTE Corp. including its chairman Hou Weigi, vice president Yu Yong, chief Manila representative George Zhu Ying, and executive director Fan Yang should also be indicted for conspiring with DOTC officials in binding the Philippine government to what he said was an onerous deal.
He assailed Mendoza’s decision to burden the public with the $330 million project funded by a loan from the Chinese government, saying two other bidders were willing to build the broadband project at no cost to government. The other bidders were Amsterdam Holdings Inc. and Ameriscom of the United States.
"There was no bidding done for this project, and under the law, all telecommunications projects of the national government have to be bidded out. In this case, all aspects of the contract are suspicious because these have been kept under wraps," the opposition lawmaker said.
Padilla also chided the Department of Justice for allowing itself to be the "laughing stock" for rendering a favorable opinion on the ZTE project, when the department allegedly did not even have a copy of the contract. Malaya 08/29/2007
Related Links
ZTE deal conceived in hotel `escapades???
Rep. Carlos Padilla links Elections chief Benjamin Abalos of being the patron of China's ZTE Corp.
Chinese loan caps sneaky ZTE deal
COMELEC silent on ‘sexcapade’
Abalos admits ZTE paid for China trips
Teves confirms Abalos's involvement in broadband deal
House minority mulls Abalos impeachment

Malacanang's Command Votes=Bribery

Justice Secretary Raul Gonzalez should resign for violation of Omnibus Election Code. He justified it as an incentive for 12-0 Team Unity sweep in Iloilo City. Tell that to Marines Mr. Justice Secretary!

COMELEC: Bribe offer from DOJ chief a criminal act

A Commission on Elections official on Thursday said Justice Secretary Raul Gonzalez violated the Omnibus Election Code (OEC) after promising to pay P10,000 to each barangay captain in Iloilo City who will be able to deliver a 12-0 sweep for the administration's Team Unity.

"In Section 261, Paragraph A of the Omnibus Election Code, there are three acts which are considered crimes: the act of giving, the act of offering and the act of promising. Kaya ang mere act of promising money eh crime na iyon eh (That's why the mere of act of promising is already a crime)," Director Ferdinand Rafanan of the COMELEC told ABS-CBN's "Magandang Umaga Pilipinas."

Quoting the OEC, Rafanan said the act of promising has four elements. He said it includes promising money to any person or community and inducing anyone or the public in general to vote for any candidate in exchange for cash.

Rafanan said the provision was used by the Supreme Court in ruling against a public official who promised to pay voters if they voted for him.

He said that if Gonzalez delivers on his promise, he would commit another violation of the Omnibus Election Code. "Kapag itinuloy niya ang magbigay (If he actually gives the money) that is another crime," he said.

Election lawyer Romulo Macalintal, meanwhile, defended Gonzalez, saying that charges can be filed against the justice chief only if he actually delivers on his promise.

COMELEC Chairman Benjamin Abalos said Wednesday that he has instructed the commission's law department to investigate Gonzalez's offer.

Abalos said COMELEC is planning to question Gonzalez about the P10,000 offer. He added that the poll body also wants to get the justice secretary's exact quote.

Meanwhile, Sergio Apostol, chief presidential legal counsel, admitted that while Gonzalez did not violate any election law, the public might think that the justice chief's statements are backed by Malacañang.

He added that Gonzalez's offer was "morally wrong."

"His only alternative is to keep his mouth shut but, knowing Raul, he will not keep his mouth shut. Magtrabaho na lang siya ng maganda (He should just work well) for Team Unity and deliver his goods not through media," Apostol added.

Gonzalez violated anti-graft law

Re-electionist Sen. Panfilo Lacson said Gonzalez may also be held liable for violating the Anti-Graft and Corrupt Practices Act.

"The center of discussion is whether there was a violation of the Omnibus Election Code. We've forgotten that there is also the Revised Penal Code, which says if you offer a bribe that could be tantamount to attempted bribery," Lacson told DZMM.

He said Gonzalez as a public official may be charged with qualified bribery if he actually gives money to barangay officials.

Lacson said he might file an attempted bribery charge against Gonzalez. He added that any tax-paying Filipino can also file charges against the justice secretary for making the offer.

An official of Akbayan Iloilo had rejected Gonzalez's offer, saying that the votes of Akbayan members are not for sale.

"He can promise money, he can even promise to be sane for the rest of his life, but no, we will not allow our votes to be bought," Pert Supeña, Akbayan Iloilo spokesman, said in a statement.

"If he would promise that TEAM Unity would support the impeachment of President GMA or that it would denounce Charter change, then we might change our mind and vote for TU after all. Otherwise, it's no for the administration slate," he added.

Akbayan Rep. Loretta Ann Rosales said Gonzalez's statement was "an example of how embedded patronage is in our politics."

"People like him should resign or should not be in government if we want new politics," Rosales said.

Supeña said Akbayan Iloilo is putting up streamers in different barangays in Iloilo City saying, "Ang amon boto wala ginabaligya (Our votes are not for sale)". He also urged the provincial COMELEC director to conduct a parallel inquiry on Gonzalez's offer.

ABS-CBN 4/26/2007 at 11:45:18 a.m.)