NBI seizes Lozada papers

MANILA, Philippines – The National Bureau of Investigation (NBI) seized last Tuesday documents from the Philippine Forest Corp. (PFC) office in Taguig City as part of its investigation into alleged irregularities involving the agency’s former president Rodolfo Noel Lozada Jr., a key witness in the national broadband network (NBN) controversy.

NBI Deputy Director for Special Investigation Services Victor Bessat said the bureau sent Agent Marlon Tauli of the Anti-Graft Division (AGD) to the PFC office at the NAMRIA building on Lawton Avenue in Fort Bonifacio, Taguig last Tuesday afternoon to pick up documents earlier requested from the agency’s officer-in-charge.

Erwin Krishna Santos, who was appointed OIC after Lozada resigned before testifying at the Senate last Feb. 8, was branded by the witness as a “Judas” for handing over the documents for a price. Santos denied receiving any payment.

Amid initial reports that the NBI had raided the PFC office, Malacañang stopped the Department of Justice (DOJ) from pursuing its investigation into allegations of corruption in the scrapped $329-million NBN contract between the government and ZTE Corp. of China.

NBI officials denied that the bureau raided the PFC office to get documents and gather evidence against Lozada, who implicated President Arroyo’s husband Jose Miguel Arroyo and former Commission on Elections chairman Benjamin Abalos in alleged overpricing and bribery.

Lozada said Santos was given a car and his P50,000 monthly salary as PFC head in exchange for information against him.

Santos denied during a television interview that he was paid to turn against Lozada.

Lozada said his “loyal” employees at the PFC informed him about the raid.

He expressed confidence there were no goods that could be found against him in his office, although he also feared there were many things the authorities could do to nail him.

Aside from the NBN deal, Lozada said the Southrail project was also overpriced. He likewise accused authorities of kidnapping him to prevent him from testifying.

There were reports that Lozada’s office in Taguig was raided by NBI agents while a full page advertisement maligning him as a person and government official came out in national newspapers.

While the character assassination and black propaganda are expected, Lozada said what was really sad was that government agencies were being used to persecute ordinary people.

“The instruments of the state, the police, the NBI and other agencies, even the AFP (Armed Forces of the Philippines), once they (officials) start using them against you instead of protecting people like us, what can we do?” asked Lozada.

US Ambassador Kristie Kenney said she saw nothing wrong in the Senate investigation.

“What is going on in the Philippines right now represents a very legitimate look by the legislative branches of the government at different issues,” Kenney said.

NBI director Nestor Mantaring explained to Justice Secretary Raul Gonzalez that his agency did not use force in securing documents from the PFC.

“Please be advised that contrary to media reports, the bureau did not conduct any raid in the office of PhilForest, much less forcibly took papers and documents therefrom,” said Mantaring in his one page memorandum sent to Gonzalez.

Mantaring submitted the memo in response to a memorandum from Gonzalez ordering him to explain within 24 hours the “exact circumstances” that led to the media reports regarding the alleged raid.

NBI Deputy Director Bessat said NBI-AGD chief Attorney Allan Contado sent a letter to PFC officer-in-charge Santos last Feb. 11, requesting for copies of 23 different documents.

Bessat said the NBI agent sent to the PFC only got three documents that included the articles of incorporation of PFC, bylaws and list of grantees of leasehold rights.

“This is just the initial phase of our fact-finding investigation. Later on, once the NBI has secured all the needed documents, we could validate allegations of corruption,” said Bessat.

There have been accusations of nepotism against Lozada when he allegedly appointed his brother Jose Orlando as vice president of the PFC. He also reportedly committed graft when he acquired 35 Australian Boer goats.

The NBI also requested the following documents: PFC charter, organizational chart and structure of PFC, list of stockholders and members of the board, audited financial statements, board resolutions, list of employees and officers of PFC, time book and payroll sheets of PFC employees, personal data sheets or 201 files and service records of the two Lozada brothers, liquidation report, progress and accomplishment report of their KR-2 funds, and memorandum of agreement between PFC and the National Economic and Development Authority (NEDA); acquisition and procurement documents of the Toyota Camry 3.5 and Toyota Hilux pickup, liquidation report  of the Gabriel Multimedia Projects, contracts and agreements between PFC and Gabriel Multimedia, contracts or agreements between PFC and Transforma Quinta Inc., and contracts or agreements between PFC and other private corporations.

Bessat also denied earlier news reports that they “raided” Lozada’s former office.

He explained that the NBI is part of the Fact Finding Committee formed by the DOJ conducting a parallel probe into the NBN deal.

The NBI-DDSIS assured that the manner by which the NBI obtained the documents was proper and aboveboard. They also sent only one agent and not several men armed with long firearms as earlier reported.

Who’s liable?

President Arroyo last week directed the DOJ to conduct an investigation into the canceled NBN deal to pinpoint those who may be held liable for violation of procurement and anti-graft laws.
Executive Secretary Eduardo Ermita, however, said that since the Ombudsman is an independent body, the DOJ should not pursue its investigation and instead give way to the Tanodbayan, who heads the office.
Mrs. Arroyo previously said that “if there is any clear evidence of wrongdoing, the appropriate forum would be the courts, particularly the Sandiganbayan or the Ombudsman.”
Tanodbayan Merceditas Gutierrez was reported to have created a panel to investigate several cases filed with her office concerning the NBN-ZTE deal that was scrapped by the President last year.
Gutierrez was quoted to have said that the panel she created will begin holding public hearings next week.

Malacañang, however, backed the DOJ probe on Lozada’s alleged corrupt transactions while he was still president of PFC but officials denied it was part of efforts to get back at him for testifying against the Arroyo administration.

Ermita denied the Palace ordered the probe into Lozada’s dealings while he still headed the PFC, an agency under the Department of Environment and Natural Resources (DENR), but said it may have been prompted by disclosures of Sen. Miriam Defensor-Santiago during last week’s Senate hearings.

“People might think this (investigation) is a form of harassment against Lozada but the truth is that it is only proper that we show that there are no sacred cows in government after Sen. Santiago presented some documents about some of his activities,” Ermita said.

“I recall hearing from the Senate there are questions propounded by the senator about things not regular during his time at the PFC,” he said.

He pointed out that Lozada himself admitted to the Senate that he had some involvement in alleged irregular transactions.

He said the raid by NBI agents at the PFC was meant to “make sure records in his office are intact.”

Ermita said it would be “normal” and “proper” for the DENR to call for an investigation against Lozada following disclosures on his alleged illegal activities.

He also denied the administration was behind newspaper advertisements questioning the credibility of the witness.

This developed as Philippine National Police chief Director General Avelino Razon Jr. said the police are mulling the filing of perjury charges against Lozada for denying that he asked for police security and even accused police officers of abducting him at the Ninoy Aquino International Airport (NAIA) when he arrived from Hong Kong last Feb. 5.

Razon said they are consolidating Lozada’s testimony before the Senate, where he claimed that he was taken against his will by security agents.

“He was not grabbed. If he was forced, our policemen should be holding him, put handcuffs to Mr. Lozada. He could have shouted for help while he was at the restroom for about 10 minutes,” said Razon.

Razon has submitted his statement before the Office of the Solicitor General in connection with the ongoing investigation.

Aside from Razon, the OSG has also taken the statements of Chief Superintendent Romeo Hilomen and Senior Superintendent Paul Mascariñas of the Police Security and Protection Office (PSPO).

Senate Minority Leader Aquilino Pimentel Jr. took up the cudgels for Lozada, saying that the witness is more credible than Sen. Joker Arroyo and that the threat of libel charges to be filed against him by Abalos should be disregarded.

“Lozada may not have the political clout and standing of Joker but truth is not about political clouts or standing. Truth can come from the most lowly of sources. And in the recent (NBN project) investigation, it came from Lozada who, despite his obvious dread of being killed, has decided to come out and speak the truth no matter what,” Pimentel said in a statement.

“In that respect, he is a hero – and no matter how Joker and other similarly minded senators belittle him, he will emerge the victor because truth is his shield. And it will set him and our nation free if we listen to him and cleanse our government of crooks, panhandlers and Pharisees,” Pimentel added.

Arroyo said Lozada could be considered a credible witness but not an expert since he was not into procurement and he did not have any documents and other evidence to back up his allegations.

Arroyo and Lozada had a confrontation during Monday’s hearing on the alleged abduction of the witness. - With Paolo Romero, Cecille Suerte Felipe, Aurea Calica, Mike Frialde