Aquino: SC's $21.9-M loan hints at loopholes in judiciary system

President Benigno Aquino III on Monday said the alleged misuse of a $21.9-million World Bank loan intended for a Supreme Court project showed loopholes in the judiciary system.

 

“Sa palagay ko’y pruweba po yan ng ating sinasabing kakulangan o dapat isaayos ng hudikatura,’ Aquino said in a press briefing after the inauguration of D’Luxe Bags Philippines, Inc. in Barangay Sta. Rosa, Concepcion, Tarlac.

 

“Bagamat may separation of powers dapat naman may check and balance na dapat mangyari. At ililinaw siguro yung relasyon ng bawat sangay ng gobyerno sa bawat isa para hindi nga tayo humantong sa sitwasyon na hindi nga masasabing pulitika yan dahil lang pong masasabi nating independent foreign party pa na nagrereklamo dun sa palakad sa Korte Suprema,” he added.

 

However, Aquino refused to say who should be held liable because he first wants the investigation to be finished.

 

“Hintayin nating matapos ang imbestigasyon dahil me COA (Commission on Audit) findings pa tayo dito,” he said.

 

Senate finance committee chairman Franklin Drilon, an ally of Aquino, filed a resolution calling for a probe on the WB fund mess.                               

 

The President believed the alleged anomaly would not jeopardize other foreign loans granted to the government.

 

“Sa palagay ko pag narectify yung mga findings nila dito, at marectify din natin ang ating mga ginagawa sa judiciary system e magiging kaagapay na naman natin sila sa pagpapaganda ng ating hudikatura,” he said.

 

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.

 

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. - VVP, GMA News