DOT chief charged for airline deal

Tourism Secretary Gemma Cruz-Araneta has been accused of graft before the Ombudsman for allegedly entering into a $1-million "secret deal" with a foreign airline.

The Gabay ng Mundo sa Kaunlaran Foundation (Gabay), in its complaint, said Araneta signed a memorandum of agreement in September 1999 that bound the Department of Tourism with Singapore Airlines (SIA) in promoting tourism in the country.

Gerardo del Mundo, the group's head, said Araneta gave SIA several concessions which he claimed were grossly disadvantageous to the Philippines. These were: (1) Greater air access to the Philippines; (2) The DOT would promote Singapore as a stopover or gateway destination instead of Manila; (3) SIA's position in the Philippine market will be preserved on an exclusive basis; and (4) SIA will receive information relating to the activities of its competitors, including Philippine Airlines.

For these and other services, Del Mundo said the DOT will receive a $1 million contribution from SIA mostly in the form of discounted tickets, cargo rebates and others.

Araneta has been under fire from various sectors for allegedly pandering to foreign interests.