Everybody thought that the squabble between the Government Service Insurance System and the National Power Corporation (Napocor), involving the reinsurance of Napocor assets, was already settled last Sept. 10, 2001 when President Gloria Macapagal-Arroyo issued Memorandum Order No. 30. The memo order created a special committee to conduct a transparent, open and competitive public bidding for the reinsurance of Napocor properties insured with the GSIS.
Under the presidential memo, the special committee is chaired by Finance Secretary Jose Isidro Camacho, with two members each from the GSIS and Napocor. And the committee was mandated to award the winning bid "at least 15 days" before the renewal date of Napocor’s insurance coverage. Since Napocor’s insurance coverage expired on Sept. 30, 2001, the award deadline was Sept. 15.
Secretary Camacho was in China on official mission when President Macapagal-Arroyo issued the memo order. He was not thus able to chair the two committee meetings that were conducted. As a result, nothing final or official was decided upon.
Since there was no time to conduct prequalification proceedings, GSIS proposed that the world’s top 10 insurance brokers be automatically qualified. Napocor gave its consent in principle, but Napocor president Jesus Alcordo specified that no invitation be given to two of the 10 companies – Marsh and McLennan Cos. Inc. and Jardine Lloyd Thompson. For the information of STAR readers, Marsh and McLennan is the world’s No. 1 insurance broker, while Jardine is No. 5.
Based on his memorandum to Camacho, Alcordo’s desire to exclude the two companies stemmed from issues about high premiums and overpricing. But then, a question arises. Since no bid has as yet been submitted, how can any prospective bidder be charged with anything irregular?
In the meetings of the special committee, Alcordo pushed for AON Corporation, the world’s No. 2 broker. Note that in 1999, AON won the bid for Napocor’s reinsurance and was appointed as Napocor’s "broker of record." However, two days later, on March 25, 1999 to be exact, AON begged off from the "broker of record" appointment for strange reasons.
Under such a situation where AON did not honor its commitment in 1999, why would Napocor now want to deal with AON? And why is Alcordo also pushing for Higgins, which is not in the world’s top 10? Is this the kind of "transparent, open and competitive bidding" that President Macapagal-Arroyo had in mind when she issued Memo Order No. 30?
The recent terrorist attack against America has jacked up insurance premiums by 50 to 100 percent. Had the original bid schedule for Napocor assets been followed, Napocor would have been saved from the hiked premiums and would not have been affected by the backlash of the tragedy. Note that premiums paid under Napocor’s current policy amounted to $13.874 million. Now, the amount will be higher by 50 to 100 percent. Sayang, all because of Napocor’s bullheadedness.
If you motor through Villamor Airbase on your way to either the domestic or the international airport, there is no way you are going to miss that huge construction project near the last gate of Villamor. That is the International Passenger Terminal 3 of the Ninoy Aquino International Airport. Slated for completion by end of 2002, Terminal 3 is going to replace the old Terminal 1 where most international passengers currently pass through.
Because the Terminal 3 is so big, the contract governing its construction and operation has naturally invited controversy. In fact, as far back as two years ago, a congressional investigation was conducted, because of its Build-Operate-Transfer scheme. Today, Terminal 3 is again in the limelight, for various reasons.
Recently, I wrote about what critics claim are awkward, controversial and dubious provisions of the concession agrement entered into between the government and the Philippine Air Terminal Co. Inc. – of the so-called PIATCO Contract. Certainly, these provisions have to be corrected, if the Terminal 3 project is to be acceptable and palatable.
However, there is something awkward, too, about the plunder case filed against Transportation and Communications Secretary Pantaleon "Bebot" Alvarez by a group called MIA-NAIA Association of Service Operators (MASO). How can one justify the plunder raps when Alvarez had no hand at all in the forging of the PIATCO Contract? The charge against the DOTC headman is anchored on the allegation that a company named Wintrack overcharged the government for construction and excavation work done at Terminal 3’s site.
MASO claimed that Venner Mendoza, a computer-aided design operator of Wintrack, executed an affidavit saying that Alvarez "is the beneficial owner of Wintrack." Former Securities and Exchange Commission chairman Perfecto Yasay Jr., filed the plunder case against the DOTC head in behalf of MASO.
But then, there came a twist when Mendoza denied ever having signed that affidavit. In fact, Mendoza even went to the office of Deputy Ombudsman Margarito Gervacio to deny, under oath, his signature on the affidavit issued by MASO. Worse, Mendoza stated that he was offered $200,000 in April or May to testify against Alvarez.
The legal issue here is how Wintrack got embroiled in the plunder case when it was PIATCO, not Wintrack, that entered into a contract with the government. And PIATCO has even issued press statements saying that PIATCO is owned by Filipino, Singapore, Japanese and German investors, not by Wintrack.
Another oddity is that it is not Bebot Alvarez but his wife, who was a minority holder of Wintrack. And since the time Alvarez was appointed as DOTC Secretary, his family had divested itself of shares in Wintrack. Noteworthy, too, is that the PIATCO contract was signed during the time of the Ramos administration and amended during the time of the Estrada administration.
Apparently, the wise and logical step of oppositors to the PIATCO contract is to have the agreement nullified by the courts, and to have the guilty parties punished. To pressure Alvarez to nullify the contract on his own and by himself might not have a legal leg to stand on.
Here is some background info on Bebot Alvarez. He graduated from the Ateneo de Manila Law School, ran for Congress successfully under the banner of Rene de Villa’s Reforma Party, and worked for the law firm of former Sen. Wigberto Tañada. This ought to belie impressions that Alvarez is associated with wheeling-and-dealing activities.
Thoughts for Today: Always welcome a new day
with a smile on your face,
love in your heart,
and fine thoughts in your mind…
and you’ll see a great day ahead of you. Humble work becomes holy work
when it’s done for God.
May your day be filled with joy
and opportunities to do great things for Him. My e-mail address: <
jaywalker@pacific.net.ph>.