With the credibility of the Securities and Exchange Commission at an all-time low, what does Malacañang do? It is reportedly set to appoint Deputy Executive Secretary Manuel Gaite as replacement for embattled SEC Commissioner Jesus Martinez, who went on leave last Wednesday on the eve of his retirement amid accusations that he received lavish gifts from the head of the Legacy Group.
Why would Gaite’s appointment raise eyebrows? A year ago the unassuming public official was plucked out of obscurity when he was linked to a purported attempt by the administration to discourage Rodolfo “Jun” Lozada from telling what he knew about anomalies in the government’s $329-million national broadband network deal with China’s ZTE Corp.
Lozada eventually talked, after being subjected to what he described as a botched kidnapping attempt. He told the Senate that while considering whether or not to testify, he had been sent to Hong Kong, with his travel documents arranged by Gaite. When Lozada texted Gaite from Hong Kong in the middle of the night that he did not even have winter clothing and was running low on funds, Gaite put together P500,000 in cash and gave this to Lozada’s brother in Manila. Why was this Good Samaritan act questionable? Because it linked Malacañang directly with efforts to keep Lozada from testifying at the Senate.
Gaite did his best to keep the Palace out of the mess, denying that he arranged Lozada’s contrived official trip to London that ended up in Hong Kong. Gaite also said the P500,000 came from his relatives who were engaged in the egg business. Senators rolled up their eyes in disbelief, but Gaite soon faded out of the national spotlight as the broadband deal was scrapped.
This administration knows how to reward loyalty. The most durable Cabinet members are those whose departments have been linked to the biggest corruption scandals in recent years. Lozada’s friend Romulo Neri, who invoked executive privilege when the Senate sought details on President Arroyo’s knowledge of a P200-million bribe attempt in the ZTE deal, is now in charge of the private sector’s multibillion-peso pension fund. Ignacio Bunye, who as presidential spokesman produced a strange tape in what looked like an attempt to preempt the release of the “Hello, Garci” conversations, is now a member of the Monetary Board, a position that is not co-terminus with the President.
Now Gaite the egg entrepreneur may soon get his own sinecure in the embattled SEC. Investors have long complained about the weak business regulatory environment in the Philippines. Gaite’s looming appointment is hardly the way to reassure them.