(EXCLUSIVE) Cabinet official’s kin linked to P190-M Japan deal

A nephew of justice secretary Raul Gonzalez and a political supporter of President Gloria Macapagal-Arroyo have been linked to a controversial Y468-million (P190-million) deal to develop Philippine properties in Japan. The two are said to be dummies of a Japanese firm accused of having the bidding of a controversial government contract rigged last year. “Our information is that the contract will be signed soon, despite a case having been filed before the city prosecutor’s office. It has never progressed," said sources privy to the developments surrounding the contract. While the contract remains the subject of an investigation by the Manila city prosecutor, they said it will be signed “anytime soon." At the center of the controversy is the government’s contract with Nagayama-Taisei Consortium for a land development contract in Japan will be signed anytime soon. The 50-year contract involves the development of the Philippine-owned properties in Nampeidai, Naniwa-cho, and Obanoyama districts in Tokyo, on a build-lease-transfer basis. Charged before the Manila city prosecutor’s office were Jerry Fuentebella y Gonzalez and Victor Aguilar y Salvacion, whom National Bureau of Investigation agents arrested in January 2005. Fuentebella is the justice secretary’s nephew and a brother of presidential adviser on economic development for Visayas Franklin Fuentebella, who is now a director of the Philippine National Bank. Aguilar was a supporter of Arroyo’s presidential bid in 2004. He yielded an ID of the Office of the President when he was arrested in January 2005. Records from the Office of the City Prosecutor showed the case is filed as I.S. No. 05D-08466. The case stemmed from the alleged falsification of documents that would have facilitated the granting of a 50-year Y384-million (P192-million) land development contract in Japan to Nagayama-Taisei Consortium. Signs of pressure to stop the probe started early morning of Jan. 13, 2005, when Fuentebella’s brother went to the NBI and “introduced" himself, though agents said he did so “politely." But DOJ sources said that later in the day, Gonzalez called up NBI Special Action Force (SAU) chief Vicente de Guzman III and “told him that Fuentebella is his nephew." Gonzalez was said to have also “instructed" the NBI not to file charges against his nephew on inquest, which is standard procedure in such cases. “No charges were filed against them and the investigation is in limbo, even if they were caught flagrante delecto," DOJ sources lamented. Charges were eventually filed in April 2005 – a year later, when Gonzalez was informed that the issue would be raised against him during his confirmation hearing at the Commission on Appointments. Investigation showed that Fuentebella and Aguilar went to the Department of Finance (DOF) Jan. 12, 2005 and tried to have a “resolution" signed. The resolution would have made Nagayama-Taisei Consortium as one of the “qualified bidders" for the contract and the “winner" over fellow “finalist" Urban Corp. But DOF officials presented with the “resolution" alerted the NBI. At about 4:45 p.m. that day, Aguilar returned with an envelope and produced two original printouts of a “resolution" with the signatures of Foreign Affairs undersecretary Franklin Ebdalin and justice undersecretary Ernesto Pineda. The three-page “resolution" claimed to be from the Bids and Awards Committee of Developing Philippine Properties in Japan. Aguilar and Fuentebella were arrested with the forged resolution, and brought to NBI headquarters for questioning. They gave their address as Block 12, Lot 1, Diamond St., Veraville Philam BF Resort Village, Las Piñas.-GMANEWS.TV