Palace welcomes Ombudsman report on graft-tainted World Bank project

MANILA, Philippines - Malacañang welcomed yesterday the move of the Office of the Ombudsman to wrap up its investigation into the alleged collusion of bidders and officials to bag a $33-million World Bank-funded road project and file graft charges against 17 public works officials.

Presidential Adviser for Political Affairs Gabriel Claudio said the development would help lessen political tension and attacks against the Arroyo administration by detractors using the WB project rigging issue.

“I think there’s every reason for us to be confident that the Ombudsman would be moving faster on the other cases filed before them,” Claudio said.

He was sure Ombudsman Merceditas Gutierrez thoroughly examined the merits of the case and the basis for the legal actions against the officials.

“This (legal action) is not for show,” Claudio said.

Despite the recommendation of filing of graft charges against Department of Public Works and Highways former and present officials by the Ombudsman, DPWH Secretary Hermogenes Ebdane Jr. said he was not inclined to ask incumbent officials to go on leave.

He said that until late yesterday, he has not received an official copy of the Office of the Ombudsman’s recommendation to file charges against DPWH officials.

“This punitive action would have to be based on the findings of the investigation,” he said. “We await the formal report of the Ombudsman on the filing of the graft charges against present and past DPWH officials that has already been reported in the news.”

He also vowed to cooperate with the Office of the Ombudsman, saying that as of press time yesterday, there was no order from higher authority to suspend his officials.

“If there is an order, then we will look at it. But of course, it has to be justified. Each one of us has our Constitutional rights,” Ebdane said.

The DPWH chief said he wants see the basis for the findings in the case.

“How can they say that it violated provisions of Republic Act 9184 when the Supreme Court has stated that Approved Budget Cost (ABC) is not binding on foreign funded projects,” he asked. “The WB process is different from the process in the Philippines.”

He also believed that the country’s bidding process of imposing a ceiling on the cost of projects is better than other countries, it might not be applicable to the WB since it could become a precedent to other WB projects in other countries.

He said his department has not been remiss of its responsibility and has taken action.

Ebdane disclosed that he has assigned Assistant Secretary Jaime Pacanan to conduct an in-house investigation on the WB-National Road Improvement and Monitoring Programs (NRIMP) phase 1.

Many of those recommended for graft charges belonged to the Bids and Awards Committee (BAC) who handled the bidding of the three projects under the WB-NRIMP.

Ebdane said he also wants to know the minutes of the bidding. 

Meanwhile, Sen. Francis Escudero said the anti-graft body has again failed to prove its steadfast resolve to battle corruption in the country, explaining that it has avoided the inclusion of several powerful personalities in its recommendation to file charges against those allegedly involved in the bid rigging.

“These high government officials and powerful public figures have already been mentioned in the World Bank report, which detailed the bid-rigging activities by some contractors in collusion with public officials,” he said.

“The Ombudsman had been given an opportunity to prove itself in this case, but unfortunately it would seem that personal ties and political debts play important roles in the office’s performance of its mandate.” – Paolo Romero, Evelyn Macairan, Aurea Calica