Palace defends Venable contract

Malacañang defended yesterday its new contract with Washington-based lobby firm Venable LLP, saying it is important for protecting the national interest.

Press Secretary Ignacio Bunye issued the statement following reports that the Palace had again tapped the services of Venable, which became the center of controversy and a Senate investigation last year after its lobby contract with the government, which allegedly included raising funds for the administration’s Charter change campaign, was made public.

"The Philippine government lobby in the United States is important to our national interest," Bunye said. "We have a strategic relationship with America for regional and global security as well as upholding democratic governance... We need the services of experts in putting our position forward in the corridors of US decision making."

Bunye stressed that there was nothing wrong in hiring the services of Venable as "this is a task done by all Philippine administrations and should not be construed as something extraordinary or beyond the pale of normal diplomatic measures."

Reports from Washington showed that the Philippine government had again enlisted the services of Venable, which "will work to ensure that the interests of the Republic of the Philippines, including appropriations, will be advocated clearly and persuasively to key policymakers in the US administration, in both Houses of Congress and in both US political parties."

This was based on a six-page registration statement filed before the US Department of Justice last Jan. 5, which also showed that Venable "is representing the Republic of Philippines, specifically the executive branch with address at Malacañang."

The firm’s main contact official was identified as retired general Arturo Carillo, presidential adviser on military affairs.

However, the lobby firm will no longer be paid on a retainer basis. Instead, it will charge the government an hourly rate and all expenses would have to be pre-approved.

Based on the same records, Venable was reportedly paid $225,000 and a certain agency with the acronym TECRO was listed as paying an additional $34,000 for services rendered from June 1, 2005 to Nov. 30, 2005.

National Security Adviser Norberto Gonzales, who previously negotiated the deal with Venable for the Palace, said he was not aware of any new contract being entered into by the government with the lobby firm.

He said since he got into trouble with senators last year for refusing to disclose the details of the Venable contract, he had no longer "touched" the issue.

Gonzales was cited for contempt by the Senate Blue Ribbon committee in September and was ordered detained. He, however, suffered a hypertension episode under dogged questioning by senators so he was put under Senate guard while recuperating at the Philippine Heart Center in Quezon City.

President Arroyo ordered the Venable contract revoked shortly before the Senate inquiry began. She, however, issued Executive Order No. 464, which barred Cabinet members and other officials in the Executive branch from appearing in congressional hearings without her permission.

The EO remains in effect today.