Ombudsman should probe SUV discount

The amount is big enough to be scandalous. It is also a violation of a public official’s code of conduct. PNP chief Alan Purisima admitted he bought in 2013 a brand new luxury sports utility vehicle (SUV), a 2013 Toyota Land Cruiser Prado, at a heavily discounted price of P1.5 million from a dealership in San Fernando, Pampanga.

That SUV costs between P3-and P4-million depending on the model. This means Purisima got a whopping discount of as much as P2.5 million.

That amount is too large to be considered an innocent gift. If an individual earned just P1million in a year, Kim Henares would already consider that person in the top income tax bracket.

Testifying before the Senate Committee on Public Safety, Purisima acknowledged that the SUV was heavily discounted, but he denied giving any favors in exchange for the hefty price slash. Well… that sounds like a mistress of an aging billionaire saying she is doing it all for love.

The P2.5 million discount must certainly breach what a public official can accept without compromising himself and violating the law. The code of conduct for public officials bans the acceptance of such gifts. A gift is defined as anything of monetary value from any person.

In other countries, such donations and discounts are also outright illegal. It is perhaps going to be argued that it is different in the Philippines because in our culture these are expressions of friendships.

But surely, a P2.5 million discount distorts the concept of friendship. That establishes a social obligation on the part of the PNP chief to return the favor when asked at some future date. 

It is time for the Ombudsman to investigate and set the parameters for gift giving and receiving. This is timely too with the approach of the Christmas season.

The Ombudsman must rule on the question of whether Purisima violated anti corruption laws by accepting such a generous discount on his purchase of a personal SUV and that P11 million donation for a new official residence.

Kim Henares should look into whether the car dealer paid a donor’s tax on that substantial discount. That big amount is not the normal discount car dealers give their customers and must therefore be considered a gift that is taxable. Unless this is done, the credibility of the administration will be on shaky ground.

Otherwise, that P2.5 million discount should be considered taxable income for Purisima.

Such a practice cannot be legal. Note that here is one big loophole the crooks in and out of government can exploit. It is a way to launder illegal cash. A public official gives car dealer so many millions in “SOP” or jueteng collections and the dealer “sells” him a car discounted to the equivalent of the “SOP”.

The three contractors who donated the official residence of Purisima should also be assessed donor’s tax. It doesn’t matter that they donated to the national police. A deed of donation establishes an obligation to pay the proper taxes.

I realize that our standards of what is ethical and moral in the public service are influenced by culture. But these standards cannot be so loose as to be meaningless. We have to enforce the anti corruption law strictly.

And if we base it on what P-Noy had been saying in the spirit of Daang Matuwid, we can assume the ethical standards are set very high. Every public official, specially those close to P-Noy, should set the example rather than be treated as exemption. If the value of a gift or a discount in the price of an expensive item (car or jewelry, for example) is so large, it is a bribe.

Besides, why would Purisima need a luxurious top of the line SUV when P-Noy declared to the world that he is a simple man of simple tastes? Either P-Noy doesn’t know his buddy that well or he was saying an outright lie to defend Purisima. Either way, it is not good for the President. As it is, I have heard some people say that Purisima is P-Noy’s Ver. Not good at all.

NAIA management

From one P-Noy buddy to another… this time the NAIA GM, again. Remember how P-Noy made a big deal of defending his Bodet Honrado from accusations of incompetence over the lack of air conditioning of NAIA terminals?

Well… P-Noy said then that the fault lies with government procurement procedures which are quite cumbersome… and also because one cannot get delivery of air conditioning chillers overnight. So it was said it would take nine months or August this year for delivery.

August came and went and I wondered how come we haven’t heard anything about the delivery of the aircon units. So here we are again… no relief from the effects of incompetence.

We cannot get rid of Honrado while P-Noy is in Malacañang, but the good news is that the PPP Center has announced the plan to bid out to the private sector the operation and management of NAIA terminals. Relief may be in sight.

We may get a good preview of how the private sector can professionally manage an airport terminal by Nov. 1. Because of this latest non performance at NAIA, I asked around on how the Megawide consortium is doing in Mactan. They are our hope to prove that airport management is best left to the private sector.

I have been told that the Megawide/GMR consortium will take over management of the old terminal by next month even as they prepare to break ground for the new terminal. I had my doubts about GMR, their Indian partner, during the bidding process but now that they have been awarded the project, I think we should all wish them well.

I am told that the Megawide guys are now ready for a smooth takeover of operations for Terminal 1. Indeed, I told them I would be very happy to have my initial misgivings of their consortium to be proven wrong.

The young guys behind Megawide assured me they are doing everything to make sure they will be able to dramatically transform the passenger experience at Mactan airport through innovation and efficiency. They seek to have a safe and secure environment defined by Filipino hospitality, even in the old Mactan Terminal 1.

In preparation for the takeover, they have already absorbed 45 employees from the old airport management, hired 200 new people from the local community and assigned seven expats from GMR who are experienced in airport operations. The Megawide guys said that technology transfer is key. So that even if GMR prematurely sells out as they did in their other airport projects, the local guys are well trained to take over. 

The Mactan consortium has already started technical training of their Filipino staff, brought some key staff on a study tour in India and Cebu-based training is now continuing. They have also prepared comprehensive checklists on the handling of airport systems, outlined procedures to be followed in taking over engineering systems.

The Megawide officials also told me they have finalized their plan on the implementation of interim improvements in Terminal 1 without disrupting current operations. They will focus on improving passenger processing times and service quality, as well as in the general look and feel of the terminal. They will introduce customer service staff to assist and guide passengers.

Yes, they will improve the toilets and other facilities. They will rearrange check-in and immigration counters for more efficient passenger flow. Over all, they are promising a much improved passenger experience never before felt in a Philippine airport terminal.

To see is to believe, of course. But I am ready to give them the benefit of the doubt. In fact, I hope they are so successful between now and mid 2015, the schedule for the bidding of the O and M of NAIA terminals. If they can deliver on their promises for Mactan, NAIA should be next.

NFA

Just got additional information on the embattled resigned NFA chief:

Arthur Juan (PMA, Air Force Pilot) used to be president of San Miguel Foods. The experience of Arthur Juan in sourcing and logistics management makes him well qualified to run a huge logistics organization such as NFA.

Dr. Rolly Dy, a professor of Agri Business at the University of Asia and the Pacific, told me he has known Arthur as a man of competence and integrity.  He could not believe the accusations against him.

Boo Chanco’s e-mail address is [email protected]. Follow him on Twitter @boochanco