'Subpoena may compel Dinky to attend P10-B Peace bond probe'

MANILA, Philippines - A Palace official advised yesterday the House committee investigating the controversial P10-billion Poverty Eradication and Alleviation Certificate (PEACe) bonds to subpoena Social Welfare Secretary Dinky Soliman so she would be compelled to attend the hearings on the issue. 

“If it’s a subpoena from the House, you certainly cannot refuse to honor the subpoena,” presidential spokesman Edwin Lacierda told reporters.

Soliman earlier snubbed an invitation to attend a hearing by the House committee on good government and public accountability on the alleged irregularities. But she wrote a letter pointing out that the Department of Social Welfare and Development (DSWD) had nothing to do with the 10-year zero-coupon bond sale by the Caucus of NGO Networks (Code-NGO), a group that Soliman used to head. 

“As such, the DSWD cannot respond positively to your request nor can it provide a position paper or any documents related to the subject of inquiry,” Soliman said in her letter.

President Aquino has adopted a hands-off policy on the issue, saying his style of governance is anchored on transparency and accountability, and that it is up to the Cabinet members to defend themselves. 

But again, Lacierda said it would all be a waste of time and government resources, because he was very sure that his colleague did not have anything to do with the multi-billion-peso scandal. 

“The problem is even if she appears before the committee, since she was not aware of the transactions of the Peace Bonds, there’s nothing she can offer in terms of substance because she was no longer connected with Code-NGO,” he said.

Soliman also served as DSWD secretary during the administration of former President Gloria Macapagal-Arroyo, until they had a falling out in July 2005 over the “Hello, Garci” election fraud scandal. “There is nothing for her to hide. But I will ask Sec. Dinky about the situation there. Number one, we know for a fact that she was no longer involved with Code-NGO when the Peace bonds were issued. I think she was DSWD secretary already at that point,” Lacierda said. 

The Peace bonds are due to mature next year at around P35 billion. 

House Deputy Minority Leader Rep. Milagros Magsaysay warned that Soliman’s failure or refusal to face the House would endanger her confirmation by the Commission on Appointments.

“That kind of explanation is not acceptable to the Commission on Appointments,” Sorsogon Rep. Salvador Escudero added. 

Committee chair Iloilo Rep. Jerry Treñas said the House plans to put closure to the controversy, unlike the Senate investigation in 2002 which did not produce any committee report after terminating its inquiry.

The Peace bonds deal, approved just months after former President Arroyo came to power in 2001, outraged many because of the way Code-NGO allegedly used its influence in the Arroyo government in selling the 10-year zero-coupon notes, earning a hefty P1.4-billion profit in the process.