FG calls World Bank story hearsay, won't face Senate

MANILA, Philippines - Embattled First Gentleman Jose Miguel Arroyo will not appear before the Senate today, saying the inquiry into the World Bank (WB) report that named him among the principal players in the rigging of bids for Philippine government road contracts was based on hearsay.

Speaking to reporters at the St. Luke’s Medical Center in Quezon City where he undergoes regular therapy, an indignant Mr. Arroyo denied the allegations.

“Of course, it’s all pure hearsay. Why do you people believe in hearsay? I feel indignant about it because they’re dragging me based only on these,” Mr. Arroyo said.

But the First Gentleman’s lawyer Ruy Rondain said he was tasked to appear on behalf of his client.

Rondain said he would represent Mr. Arroyo to formally answer the allegations before the Senate committee on economic affairs headed by Sen. Miriam Defensor-Santiago.

Rondain said he would read his client’s “defense statement” before the senators.

Rondain said he will be accompanied by Mr. Arroyo’s doctors led by cardiologist Dr. Antonio Sibulo, who will explain in detail the risks attending their patient’s appearance in the inquiry. The First Gentleman underwent heart surgery in 2006 and has been undergoing twice-weekly therapy ever since.

“Basically, it’s his (Mr. Arroyo’s) reply to all the accusations,” Rondain told The STAR in a telephone interview.

“It’s like an affidavit, his version of the story,” he said.

Rondain though refused to give a summary of Mr. Arroyo’s statement, saying it might preempt the inquiry of the Senate.

But he gave a few details on how it would go. “It’s like, ‘I will answer these allegations but I don’t recognize their validity,’” Rondain said.

Rondain stressed that up to now, none of Mr. Arroyo’s accusers or the documents supposedly linking him to the controversy have turned up.

He said he has been asking how to secure the WB report but supposed excerpts of the report were only leaked to reporters by some senators.

“We will (have) to answer all the allegations to the extent that we can identify them. The problem is that the allegations are amorphous. It’s clear in the law that I don’t have to do anything,” Rondain said.

Still, Mr. Arroyo chose to make a reply as “courtesy and respect” to the Senate, he said.

Rondain said he hopes that it would be the first and last time he would face the Senate inquiry in the issue.

He said Mr. Arroyo was “rolling with the punches” over the controversy.

Senator Santiago earlier said she was ready to subpoena Mr. Arroyo if he would ignore the Senate in its investigation.

Santiago terminated the investigation after one hearing last Jan. 27 but later changed her mind after reports came out quoting excerpts of the controversial WB report.

Corroborative proof

The World Bank stood by its report yesterday detailing the corruption and the people involved in the rigging of Philippine government road contracts.

The WB issued a statement in Washington, pointing out that an “in-depth investigation” of its Integrity Vice Presidency (INT) showed at least 60 people have been interviewed and witnessed the corruption in the bidding of Philippine government road contracts.

The INT is the unit responsible for investigating allegations of fraud and corruption in WB-financed operations.

It conducted the probe after its project team, the Philippines’ National Roads Improvement and Management Program (NRIMP-1), reported its suspicions that the bidding for two major contract packages worth an estimated $33 million had been rigged.

“The Bank does not publicly disclose the details of its investigative findings, but INT’s NRIMP-1 investigation involved more than 10 investigators, lawyers, experts, and technical staff who conducted field work in six countries over a period of more than three years,” the statement read.

“INT investigators conducted more than 60 interviews with various witnesses; reviewed thousands of pages of documents, including bids, contracts, communication and other project documents; and conducted a forensic analysis of all bids submitted over three rounds of bidding for the tenders in question,” the WB added.

Since 1999, the WB said it had debarred more than 350 firms and individuals from more than 24 countries based on similar investigations.

The WB promised to give the Philippine Senate, which is investigating the controversy, the Redacted Report, a summary of the INT’s investigation.

Meanwhile, Sen. Panfilo Lacson has advised former Surigao del Sur congressman Prospero Pichay to be more polite in the hearing today or face contempt.

Lacson also clarified he never mentioned Pichay among those allegedly involved in the road projects bid-rigging scam.

“He is barking up the wrong tree. He should (have) attacked the World Bank. I never mentioned his name. He said he will confront me. I will confront him also in the hearing (today),” he said.

Lacson also bared he has a detailed copy of the WB report that include testimonies of at least 30 witnesses directly implicating the First Gentleman.These are precisely transcripts of interviews and testimonies of 30 witnesses.      – With Jose Rodel Clapano