Sotto: Senate probe on SC’s WB loan mess may focus on PNoy  ally

An ally of President Benigno Aquino III may also be grilled in the Senate’s investigation into the alleged misuse of a $21.9-million World Bank loan intended for a Supreme Court project. Senate majority leader Vicente Sotto III cited information reaching him indicating the supposed misuse of funds could involve the high court while under Chief Justice Hilario Davide Jr. “I have read that the one to be investigated is not the present Supreme Court led by Renato Corona but a previous one. At any rate, it would be good to have an investigation to see if it is indeed the court under Davide that must be held accountable,” Sotto said in an interview on dzBB radio. On the other hand, he said he sees no conflict with the ongoing impeachment trial if the evidence in the loan mess implicates incumbent Chief Justice Renato Corona. The Senate is to start the impeachment trial of Corona on Monday. Asked if there would be a conflict between the impeachment trial and the Senate probe, if the evidence in the loan mess points to Corona, he said, “Hindi naman siguro (I don’t think so).” Davide served as Chief Justice from Nov. 30, 1998 to Dec. 20, 2005. On the other hand, Corona assumed the post on May 17, 2010. Earlier reports quoted Senate finance committee chairman Franklin Drilon – another Aquino ally – as saying he will file a resolution to probe the WB mess. The upcoming Senate investigation stemmed from an aide memoire dated Dec. 28, 2011 sent by World Bank acting country director Matthew Stephens to Associate Justice Teresita Leonardo de Castro, chairperson of the Judicial Reform Support Project (JRSP) management committee. In the aide memoire, the WB noted ineligible expenditures, including those incurred outside the agreed procurement plan. Also, the WB told the Supreme Court to refund a total of $199,900 (P8.7 million) comprising ineligible expenditures, adding that 70 of the 133 transactions made using the loan for the JRSP were ineligible. Drilon was quoted as saying the WB's Board of Executive Directors approved the loan on Oct. 2, 2003 to finance the JRSP, which is meant to “support an accessible judicial system that would foster public trust and confidence.” The total project cost was pegged at $24.4 million, out of which $21.9 million represents the loan from the WB and the balance being the counterpart of the Philippine government. According to the World Bank, the project could not be completed by the original closing date of Dec. 31, 2009 so this was extended by 18 months to June 30, 2011. However, due to several reasons, the closing date was extended by another 12 months to June 30, 2012. Davide, Corona Davide had sworn in then Vice President Gloria Arroyo as president in January 2001 to replace then impeached President Joseph Estrada. After his retirement as Chief Justice, Davide was appointed to other posts under the Arroyo administration but supported then Sen. Benigno Aquino III’s presidential bid in 2010. His son Hilario III ran for Cebu governor under Aquino’s Liberal Party in 2010 but was defeated. On the other hand, Corona had been a spokesman and chief of staff of Arroyo when she was president. His assumption of the Chief Justice’s post had been branded by critics as a midnight appointment. In Malacañang, deputy presidential spokesperson Abigail Valte said the reported irregularities show the need for all government institutions, even those with fiscal autonomy, to be transparent and accountable. “Ito ang laging sinasabi ni Sec. (Florencio) Abad na kahit may fiscal autonomy ang iba’t ibang sangay ng pamahalaan lahat tayo dapat transparent sa gastos, lalo ito (WB loan) utang at magbabayad ang taongbayan," she said on government-run dzRB radio. “Fiscal autonomy is no excuse to disregard proper use of public funds,” she added. — LBG, GMA News