Telcos helped NSA spy on calls

Our Washington Spy-Ring disclosed that several executives from big telecommunications companies have admitted that the US National Security Agency (NSA) had secured the telcos’ cooperation in monitoring calls by suspected international terrorists. Among those implicated in the investigations are AT&T, MCI (formerly known as WorldCom) and Sprint, all of whom are capable of routing calls around the world. The Bush administration has come under fire for allegedly engaging in eavesdropping activities without first securing warrants from the courts. Foreigners are said to be the ones who are mostly vulnerable to eavesdropping, especially in Asia because of the presence of the Jemaah Islamiyah in several countries, among them the Philippines. Perhaps it would be much safer for foreigners to call using landlines and be open about their conversations. Ironically in the Philippines, it is the administration that is complaining that a yet unnamed top opposition leader had been spying on the cellular phone calls of the President and other Palace officials using sophisticated eavesdropping equipment.

AIG agrees to settle

International insurance industry informants disclosed that American International Group (AIG) has agreed to a settlement of over $1.5 billion with the US Securities and Exchange Commission and the state of New York in exchange for the dropping of civil and criminal fraud charges filed against it. The deal – which is the largest insurance industry settlement in US history – would be divided between New York and the SEC. It would definitely be a windfall for New York, whose Attorney General Eliot Spitzer opened the proverbial can of worms when he accused AIG of using creative accounting methods to defraud the public by manipulating financial results for the company. The scandal led to the ouster of Maurice "Hank" Greenberg, who had been with the company for more than three decades, as CEO. AIG was also implicated in allegations of bid rigging involving Marsh & McLennan Cos., formerly headed by Hank’s son Jeffrey. Spitzer was able to get a settlement of $850 million from Marsh & McLennan last year.

Baring Fe’s follies

Insurance industry players are saying Securities and Exchange Commission (SEC) chairperson Fe Barin must have been ill advised in her choice of replacement for the seat recently vacated by Commissioner Joselia J. Poblador. The indefatigable dame of the SEC had publicly announced her preference for recently retired SEC General Accountant Roberto G. Manabat to be part of the five-member commission. Manabat had been charged by the College Assurance Plan (CAP) before the Ombudsman for violating Section 3 of the Anti-Graft and Corrupt Practices Act. CAP evidenced its complaint by presenting a letter signed by Manabat directing the pre-need company to pay a P100,000 monthly compensation to CAP comptroller Mario Aguas, an amount said to be grossly excessive and unreasonable compared to the monthly salaries of CAP officers. Legal luminaries are curious on what fantastic legal technical manipulations could have been undertaken by Manabat and his legal counsel allegedly to evade prosecution despite the presentation of the original copy of the above-mentioned letter, which served as the proverbial smoking gun. Meanwhile, insurance insiders are aghast over Barin’s choice, saying that Manabat has conflict of interest because of his links with the American International Group (AIG). Manabat was also said to have been an auditor of Philamlife and was an accountant of Washington Sycip handling insurance accounts. When asked to disclose his affiliations during an SEC en banc session, Manabat had to bring along legal counsel (probably the same one who got him off the hook with the Ombudsman, observers noted). Meanwhile, the SEC is considering relocating to an informal settlers-infested government area in Quezon City near the Bureau of Internal Revenue head office. Other places reportedly being considered are The Fort, located between the Ortigas and Makati business districts.

Open display of pirated CDs

A Spybiz informant reported that pirated CDs, including porn are being openly displayed in front of a popular mall and between two fast-food chains in this city in Southern Philippines. Cops reportedly patrol the area daily but seem to be blind to the rampant display of the pirated wares. The suppliers are allegedly Chinese from the mainland who reputedly have good connections in government. Informants said one of the suppliers is a woman whose brother is said to be hiding in the Visayas because he was caught selling shabu. The brother was previously arrested but managed to escape, nevertheless. The female supplier is allegedly involved in fixing the paper of Chinese from the mainland. She’s also been said to boast that her success in drug dealing could be attributed to her onions – as dogs could not sniff the drugs because of the pungent smell.

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