The scandalous corruption of the Arroyos
On October 3, Philippine Estate Authority (PEA)director Sulpicio Tagud, along with Plunder Watch, Bayan Muna and others, filed a plunder case against cronies of the Arroyos within the PEA board of directors and their co-conspirator JD Construction. This is in regard to the overpricing by more than P600 million of the construction costs of the President Diosdado Macapagal Boulevard (PDMB). It is but one of the anomalies and extortion cases involving the Arroyos, their cronies and "collectors".
Corruption is very rampant under the Macapagal-Arroyo regime. The Philippines, in fact, is the 11th most corrupt in a field of 102 countries, according to Transparency International, a private organization that monitors corruption levels in various countries.
Thus, it has become ever clearer that the Macapagal-Arroyo regime is no different from the despised Estrada regime. In fact, it is even more desperate for funds since it has very limited resources left to exploit. Also, if the regime does not engage in some hocus-pocus, Macapagal-Arroyo is likely to lose the 2004 elections. She is in dire need of huge amounts of funds to equal if not surpass Estrada's ability to manufacture and buy votes.
Conduit bank
On October 17, the covert and anomalous purchase by Macapagal-Arroyo propagandist Dante Ang of a Makati-based bank was exposed. As early as April, Ang had already acquired majority control of BankWise Inc. (formerly known as Bank Dharmala) for P575 million. For this, Ang used Seed Capital, a company owned by a certain Roberto Guevara, who was also involved in the issuance of P1 billion worth of anomalous PeACE Bonds last year.
Ang is believed to have bought the bank to use it as a conduit for kickbacks to be received by his boss Macapagal-Arroyo from the P100 billion fund allotted for loans to small- and medium-scale businesses. The funds will be lent at interest rates lower that those prevailing in the market. It is widely believed that these funds will be used for bribes in the 2004 polls.
Extortion from private contracts
The controversy over the over-pricing of the PDMB had hardly died down when more overpricing anomalies were exposed in quick succession.
One recent expos� involves the overpricing of construction costs for Bay Boulevard, the thorough-fare that will link the PDMB to Roxas Boulevard. This deal forms part of the anomalous contract used by the regime to bribe JD Construction, the contractor hired for the PDMB. Documents indicate that the PEA allotted P5.2 million for building this road despite JD Construction's original estimate of P2.5 million.
Also exposed this October was Justice Sec. Hernando Perez's coercion of the Department of Public Works and Highways to grant JD Construction the contract for building the Bauan-Mabini highway in Batangas. According to the DPWH, JD Construction uses Torreja Construction as a front corporation. Among the papers submitted by Torreja Construction was a letter from Perez "endorsing" the company. It was also disclosed that Perez's men had been blocking other entities interested in the P41 million project.
Another expos� concerns Perez and Macapagal-Arroyo's involvement in the anomalous government contract with Impresas Metalurgicas Pescarmona Sociedad Anonima of Argentina (IMPSA). It will be recalled that Macapagal-Arroyo approved the IMPSA contract for the rehabilitation and expansion of the Caliraya-Botocan-Kalayaan hydroelectric power complex just two days after she took power.
In exchange for such indecent haste, Perez and Macapagal-Arroyo received P700 million. According to no less than a senate study, the Macapagal-Arroyo regime connived to overstate by $41 million (more than P2 billion) the company's expenses for the rehabilitation aspect, which was unnecessary. Thus, the cost of running the plant has risen from P0.65/kwh to P0.81/kwh. The increase of P0.16/kwh translates to P8 billion in additional electricity charges for consumers in the form of the purchased power adjustment or PPA.
10% of public funds
The Arroyo couple also receives kickbacks from funds of profitable government agencies. According to government employees, Macapagal-Arroyo has imposed a "10% policy," especially on government financial institutions. Under this scheme, Macapagal-Arroyo obliges her minions within the GFIs to centralize 10% of the funds of their respective agencies and departments for her election kitty. In fact, the Arroyos themselves supervise the fund procurements from certain agencies and departments with the help of their close friends and cronies.
One example involves the Arroyo couple's extortion from the Philippine Charity Sweepstakes Office (PCSO). This October, news leaked out about the anomalous approval by the PCSO board of directors of an additional P60 million for Macapagal-Arroyo's advertisements. Prior to this, P250 million had already been allotted by the PCSO for the entire year, but P241.6 million had already been used up as of October. Among others, the money was spent for worthless and mendacious advertisements on cheap medicines, prizes for a golf tournament. The PCSO is headed by Virgilio Angelo, a close friend of Mike Arroyo.
Aside from the couple's known friends and operators, the Arroyos' close friend Gloria Tan-Climaco as well as their minions like DHUD Sec. Michael Defensor and Executive Sec. Alberto Romulo also act as their personal "collectors" for various departments, agencies and even private contracts.
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