Blue Ribbon to probe crime angle in road bidding scandal

MANILA, Philippines - The Senate committee on accountability of public officers and investigations (Blue Ribbon) would take over the investigation on the criminal aspect of an alleged collusion among construction firms and public officials in bidding for World Bank-funded road projects. Senate Resolution 899, filed by senators Panfilo M. Lacson, Benigno Simeon C. Aquino III, Loren B. Legarda, Ma. Ana Consuelo A. S. Madrigal and Manuel A. Roxas II Wednesday, directed the Blue Ribbon to conduct the probe. The resolution was not referred to the committee Wednesday as it was filed minutes before the plenary session was adjourned. Senator Richard J. Gordon, committee chairman, said he would start the probe once the issue has been referred to his committee. Those identified in the report were former congressmen Prospero A. Pichay, Jr. and Jerome Paras of Surigao del Sur and Negros Oriental, respectively; former Public Works secretary Florante Soriquez; Public Works staff Boy Belleza; Public Works-Region 4 assistant director Tito Miranda; and Public Works project director Lope Adriano. They were linked by several witnesses interviewed by the World Bank based on the notice of sanctions proceedings, a voluminous compilation of interviews that detailed the names, places and times of interviews. Last month, the lending institution announced the blacklisting of Filipino firms E. C. de Luna Construction Corp. and its owner Eduardo C. de Luna, Cavite Ideal International Construction and Development Corp., CM Pancho Construction, Inc., and Chinese construction firms China State Construction Corp., China Wu Yi Co. Ltd. and China Geo-Engineering Corp. Senator Miriam Defensor-Santiago, chairman of the economic affairs committee which started to probe the issue, said she will continue the investigation only for the economic aspects of the case. Senators have agreed in a caucus on Tuesday that the issue’s criminal aspect should be handled by the Blue Ribbon. Meanwhile, the World Bank reiterated it has evidence of collusion in the National Roads Improvement and Management Program-1. Leonard McCarthy, World Bank’s vice-president for Institutional Integrity, said the allegations were based on summary reports and accessory documents. "Because the Referral Report contained sensitive information which may be relevant to investigation in the Philippines and made no judgment as to whether the laws of the Philippines had been violated, it was shared on a strictly confidential basis to allow the investigative authorities in the Philippines to undertake their own investigation and reach their own conclusion," Mr. McCarthy said in his letter to Senate Minority Leader Aquilino Q. Pimentel, Jr. dated Feb. 13. Mr. McCarthy added the documents forwarded to the Ombudsman "constitute the relevant body of information... to consider carrying out the investigation she deems appropriate." Ombudsman Ma. Merceditas N. Gutierrez, who received a copy of documents from the World Bank since 2007, had said in a Senate hearing that the Ombudsman failed to act on a swift investigation since the lending institution has declined to cooperate and present witnesses who linked First Gentleman Jose Miguel T. Arroyo and other public officials to the scandal. But Mr. McCarthy has clarified that the multilateral lending agency has "made no judgment" on whether or not Philippine laws may have been violated, although documents on the issue have been forwarded to the Finance department and the Ombudsman for action. Mr. McCarthy’s letter was in reply to a letter sent by Mr. Pimentel dated Feb. 3 that requested the World Bank for copies of documents to help the Senate determine the participation of certain personalities in the scandal. — Bernard U. Allauigan, BusinessWorld