Undersecretaries Edmund Mir and Mabini Pablo were suspended in August for 90 days after they — along with several other DPWH officials — were accused of claiming bogus repairs on department-owned vehicles that totaled P182 million over a few years.
Some of the accused have already been criminally charged while others are still being investigated.
Upon Datumanong’s recommendation in September, Executive Secretary Alberto Romulo issued a memorandum recommending Mir’s and Pablo’s reinstatement "as they were not signatories to supporting documents and neither were they charged with the responsibility of approving said vehicle repairs."
Mir and Pablo denied responsibility, saying they were not in charge of monitoring day-to-day operations of their subordinates.
But in approving their reinstatement, Mir and Pablo were "strongly warned and admonished" by Mrs. Arroyo for their reported failure to detect the irregularity.
Pablo and Mir were "required therefore to jointly draft a department order instituting additional controls to prevent recurrence of irregularities."
In previous surveys, the DPWH had been seen as one of the most corrupt government agencies along with the Bureau of Internal Revenue, Bureau of Customs and the Philippine National Police.
The vehicle repair scam began sometime in the 1990s and was discovered only early this year.
The scam involved fictitious, exorbitant and repetitive repairs on some 500 DPWH vehicles. Investigators counted 9,000 repair vouchers for 2001 alone, for an average of 25 repairs a day at a cost of P500,000 daily, including holidays and weekends.
In some instances, investigators found that the bogus repairs cost much more than the value of the vehicle. In one case, it was discovered that P900,000 was spent last year on fictitious repairs on an old model Mercedes-Benz.
In July, US Ambassador Francis Ricciardone said in an interview that corruption is one of the country’s biggest problems that is driving away foreign investors.
Upon assuming office in 2001, Mrs. Arroyo pledged to root out corruption, a serious problem that hounded past administrations.
In January 2001, Mrs. Arroyo’s predecessor, Joseph Estrada, was ousted in a military-backed popular protest after he was accused by an estranged drinking buddy of taking bribes from illegal gambling bosses, misusing state funds and profiting from insider trading.
Arrested last year, Estrada is now detained in a military hospital and currently on trial for plunder and other charges.