Miriam wants NBI to probe politicians in World Bank mess

MANILA, Philippines -- Sen. Miriam Defensor-Santiago called on Justice Secretary Raul Gonzalez to direct the National Bureau of Investigation (NBI) to conduct a “confidential” probe to identify the politicians and other officials named by the World Bank as having helped rig the bid for a nationwide road project.

“Because the NBI belongs to the executive branch, I cannot order it to investigate. I have to make a request through the justice secretary who has control and supervision over the NBI,” she said.

“The NBI should activate its assets and confidential informants to find out who in the public works department is helping private contractors to corner public biddings of World Bank-funded projects,” Santiago, chair of the Senate committee on economic affairs leading the investigation into the matter, said.

The World Bank recently withdrew financing for $33 million worth of projects under the National Road Improvement and Management Program (NRIMP) phase 1 after reportedly detecting collusion between officials and contractors.

The World Bank blacklisted E.C. De Luna Construction, one of the three Filipino firms allegedly involved in the rigging of bids. Four Chinese firms are also involved in the alleged anomaly. In response, the DPWH ordered the suspension of the firms.

The two other Filipino firms – Cavite Ideal International Construction and Development Corp. and CM Pancho Construction Inc. – were each barred for four years from participating in WB projects.

According to Santiago, her committee needs documentary and testimonial evidence of collusion before it can recommend prosecution to the Office of the Ombudsman.

“The World Bank report, coming from a respected world agency, should be taken at face value. Under our Rules of Court, we have to presume that it has performed its official duty in the regular manner,” Santiago said.

“If there is any evidence on either side, then the presumption of innocence has been overturned by the World Bank report. We have no access to the Bank’s documents, but we have to take their report at face value,” she said.

Santiago said the Senate, on its own, is not authorized to conduct field investigation.

“Congress has no investigative facilities. On the one hand, the three blacklisted firms enjoy the presumption of innocence. But on the other hand, the World Bank report is an official document entitled to the presumption of regularity. Hence, my committee needs NBI assistance,” Santiago said in a letter to Gonzalez.

Senate Minority Leader Aquilino Pimentel Jr., for his part, urged his colleagues to get to the bottom of the scandal and cautioned them against issuing statements that might undermine the investigation.

“The investigation should be resumed at once to give the persons concerned the full opportunity to produce the necessary evidence,” Pimentel said.

Pimentel stressed that the Senate, the Office of the Ombudsman and other investigating agencies concerned must be able to secure from the WB all the documentary and testimonial evidence that had been its basis for barring three Filipino contractors from its infrastructure projects.

“The World Bank has debarred the erring contractors for life, and we suspend them only for 15 days,” Pimentel said. “It’s as if we are playing around with our laws.”

Sen. Panfilo Lacson also said he would like the hearing to resume so they could talk about the necessary amendments to the Government Procurement Act, but Santiago said it was the committee on ways and means that should tackle it.

But Lacson argued it should be the economic affairs or finance committees since the ways and means panel was tasked to deal with revenues and taxation.

Still, Lacson said he would file a bill to strengthen the procurement law so that those firms blacklisted by international financial institutions would also be banned in the country.

WB told to name names

A ranking public works official dared the World Bank yesterday to name the government officials who allegedly colluded with private contractors to rig the bidding for a nationwide road project.

“The WB should really come out with the names so that the names of the innocents would be cleared. It would be better if they would give the names,” Public Works Undersecretary for Mindanao Romeo Momo said.

“It would be better for the WB if they would tell it straight and tell us who are those they suspect of being in cahoots with some of the contractors,” he said.

Momo said that despite the controversy the Department of Public Works and Highways has maintained its good relations with the World Bank. He said the World Bank has also taken steps to prevent irregularity in future projects.

“The WB would employ independent evaluators or consultants to monitor the WB projects. The payment for these evaluators would be shouldered by the WB and would have a separate funding from the construction project,” he said.

The DPWH, Momo said, would for its part strengthen its audit capacity as well as broaden participation of non-government organization Bantay Lansangan or Road Watch.

The DPWH, he added, would also promote transparency chiefly by making web or online records of pending projects.

Meanwhile, a DPWH fact-finding committee said it has yet to find evidence of the “collusion” alleged by the World Bank.

“There were no signs of collusion but then we are just gathering facts. We already summoned the officers involved or the one who made the processing of these documents,” committee chairman Assistant Secretary Jaime Pacanan said.

“We also made evaluations on how these particular transactions were made and based on documentary reports, we submitted our initial comment to the Secretary (Hermogenes Ebdane Jr.) through the management committee,” Pacanan said.

He added that they had asked the World Bank and the Procurement Office for Civil Works to provide them with more pertinent information.

The committee, he said, would ask Ebdane to give it more time to complete its investigation.

When asked if the suspension of the firms would be extended, Pacanan said the matter would have to be taken up by the Mancom. “As far as the committee is concerned, we are bent on recommending an extension of the suspension,” he said.

‘Prosecute them!’

Quezon City Rep. Annie Rosa Susano wants the officials and politicians allegedly involved in bid rigging prosecuted immediately.

“Those who are involved must be prosecuted… those who are involved are answerable to the public,” Susano told reporters at the regular Kapihan sa Manila Hotel media forum.

But she said that despite being blacklisted by the World Bank, the construction firms – including those from China – should be allowed to take part in local projects after their 15-day suspension by the DPWH.

“These are still allegations. We have to give them the benefit of the doubt. Persons cannot be considered guilty unless proven guilty. They can join DPWH bidding but the public must be vigilant, we have to see how these people are working,” she said.

“But in my personal opinion, these companies should not join for delicadeza’s sake,” Susano said.   – With Helen Flores