Yet another sleaze scandal shakes the Philippines

GLORIA ARROYO, the long-time occupant of the Philippines’ presidential palace, may well have become accustomed to the annual impeachment attempts against her. But now several former senior officials have filed a complaint against the ombudsman, Merceditas Gutierrez, accusing her of “inaction and downright dismissal of clear cases of graft and corruption”. Gutierrez has threatened to sue the complainants for perjury and the falsification of public documents.

by Tribune Web Editor
Saturday, March 14th, 2009

GLORIA ARROYO, the long-time occupant of the Philippines’ presidential palace, may well have become accustomed to the annual impeachment attempts against her. But now several former senior officials have filed a complaint against the ombudsman, Merceditas Gutierrez, accusing her of “inaction and downright dismissal of clear cases of graft and corruption”. Gutierrez has threatened to sue the complainants for perjury and the falsification of public documents.

Sleaze in the Philippines has been the subject of international attention. In 2007, the World Bank cancelled road projects worth $33 million and suspended a loan for $232 million following allegations of corruption in the bidding process. In recent weeks, the issue hit the headlines again as the World Bank announced that seven companies – three Filipino and four Chinese – were banned from bidding for future contracts.

According to the World Bank, “fraudulent practices” in the matter included “misrepresentation of the facts to influence the procurement process for one or more procurement packages” and “participation in a collusive scheme, also involving politicians and government officials, whereby awards were directed to particular contractors in exchange for bribes, kickbacks and payments to designated losing bidders”.

It emerged that World Bank officials had sent a copy of its report to Merceditas Gutierrez, who, complains Alberto Lim, executive director of the Makati Business Club, “should be stopping corruption, but she’s not”.

After the parliamentary committee on public works and highways found no evidence of corruption, having held just two hearings, the Manila Times revealed that five of the 12 congressmen with interests in construction were also members of the committee.

When World Bank officials gave an informal briefing to senators, it emerged that Gutierrez had known for some time that the name of Arroyo’s husband, “Big Mike”, was among those which had figured in the WB investigation and that the ombudsman had been briefed on the methodology of the inquiry as early as May 2006.

This is the reason why Gutierrez has been accused of inaction. But this is not the first complaint of this nature.

One of the first scandals to hit the Arroyo administration concerned justice secretary Hernando Perez, who resigned and disappeared into obscurity. It was not until April last year that the ombudsman charged him with graft and corruption. Seven months later, the anti-corruption court threw out several charges, as it had taken the ombudsman six years to file them – a violation of Perez’s right to a speedy trial – although, to be fair, Gutierrez had only occupied the office for half that period. Two charges remain outstanding.

In October last year, former agriculture under-secretary Jocelyn Bolante was deported from the United States. He had fled there to escape a Senate hearing into the disbursement of 728 million pesos in 2004, purportedly to purchase fertiliser but in reality, claim critics, to fund Gloria Arroyo’s election campaign – which was illegal.

The Senate has now renewed its investigation and recommended that Bolante and nine others be charged with plunder. No bail is permitted when such charges have been laid and conviction for the offence can result in a life sentence. However, far from being arrested, Bolante has announced that he is considering running for congressman or provincial governor in next year’s elections.

Other scandals that have benefited from the public’s short memory span include the case of the electoral commissioner who resigned over allegations that, with the involvement of “Big Mike”, he had been brokering a deal with a Chinese company which would have seen millions of dollars paid out in kickbacks. There is also the case of a recently-retired policeman prevented from leaving Moscow when he was found to be carrying 105,000 euros.

Apart from the World Bank, the US State Department has been displaying an interest in Philippines’ affairs. Both of these agencies have been known to use the corruption issue to urge “free market” reforms. It’s a pity that they are being provided with so much ammunition.

As for Ombudsman Gutierrez, impeachment complaints have to attract a third of the votes in the House of Representatives before going to trial in the Senate. Few believe she’s in any danger.

Ken Fuller

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