|
The Institute for Ethics and Economic
Policy (IEEP) |
|
|
|
REFORMS UNDERWAY TO STAMP OUT CORRUPTION A $300,000 US grant from the World Bank
will fund a Philippine government launched anti-corruption pilot project with
15 agencies and local government units.
Transparency International has ranked the
AGLIPAY FORMS AUDIT BODY TO CURB POLICE CORRUPTION.
National Police (PNP) chief Director General Edgar Aglipay has set up an
Internal Audit Office as part of attempts to halt corruption in the police
force. The audit function, previously under the office of the PNP controller,
will now be placed under the office of the national police chief, headed by
Superintendent Rodrigo De Gracia, to ensure that it is “properly supervised”
Agiplay told reporters. Agiplay intends to implement the PNP’s
anti-corruption plan before his retirement on March 13th. (Yahoo!
News, INQ7,
General in corruption scandal charged with perjury. According to reports, Major General Carlos Garcia, at the, was charged with perjury for failing to declare assets estimated by the local press at more than a million dollars. Garcia is under house arrest and awaiting a possible court martial, was accused in civilian court of making false reports to the government of his assets between 1997 and 2000. (Agence France Presse, 05 November 2004 summary by Sherldine Tomlinson).
general to be tried for corruption; prosecutors set to file cases against more officers. It was reported that a general accused of corruption following a tip that he had amassed a fortune in money and property in the United States faces to a court martial. Maj. Gen. Carlos Garcia, formerly in charge of the military budget, will be charged with gross dishonesty and grave misconduct. (Yahoo News (AP), October 12, 2004, summary by Sherldine Tomlinson).
Enrile bats for body to probe corruption in military. It was reported that senator Juan Ponce Enrile have urged President Arroyo to create an independent commission composed of civilians, legislators and retired justices that would do a thorough investigation on corruption in the Armed Forces of the Philippines. Enrile said that the investigative commission would help cleanse the ranks of the AFP as well as bring back the honor of the military men. (Sun Star, October 7, 2004, summary by Sherldine Tomlinson).
Arroyo to face
probe for letting Estrada out of jail.
According to reports, Lawyers and anti-corruption activists has
filed a criminal complaint against Philippine President Gloria Arroyo and at
least three other government officials for allegedly allowing former
president Joseph Estrada to evade prison. The complaint, filed with the
ombudsman, contends that Mrs Arroyo and the others gave their consent for
Estrada to visit his vacation house across from the army camp where he is
being detained, even though the court trying him for alleged corruption did
not give permission. The office of the ombudsman said it will investigate
whether there is enough evidence to file charges of consenting to evasion of
prison and usurpation of judicial functions. (The Straits Times, March 11, 2004, summary by Sherldine Tomlinson). TASKFORCE TO REVAMP PHILIPPINE MILITARY Following the failed rebellion made by over 300 junior officers in July over corruption in the armed forces, President Gloria Arroyo has set up a committee including 25 people to carry out reforms in the Philippine military. It’s said that the Philippine military is to be among the weakest and most corrupt in the region. The reform will be partly financed by the US and focus on effective personnel management, an increase in budget and acquisition controls and the improvement of operational and training capacity. (the Strait Times 17 Nov 2003, summarized by Hanh Vu).
FATF TEAM TO REVIEW RP’S ANTI-MONEY LAUNDERING PROGRAM Financial Action Task Force (FATF) team will arrive Philippines this month to review the implementation of the anti-money laundering law in the country as a part of a long process of taking it off the Paris-based group’s list of countries regarded to be non-cooperative in the fight against money laundering, says Finance Secretary Jose Isidro Camacho. He believed that his country would eventually be de-listed on the FATF’s assessment. Having escaped from economic sanctions made be FATF member countries after passing a global anti-money laundering law earlier this year, The Philippines still appears on the FATF’s list of non-cooperative countries. (AFP, 07 Oct, 2003, summarized by Hanh Vu).
Filipinos urged to ‘report-a-mistress’. In an effort to stop officials spending government money on their extramarital affairs, an anti-corruption watchdog in the Philippines has launched a "report-a-mistress" campaign. Since the lunch of the campaign, the group is reported to have received at least 500 calls, e-mails and text messages. According to Congress representative Kim Lokin, corruption has damaged the country and the economy. Lokin also pointed out that the government needs to stop corruption in order for the country to move forward. (BBC News, September 26, 2003, summary by Sherldine Tomlinson).
GMA scores Transparency International corruption report. It was reported that President Gloria Macapagal-Arroyo expressed dismay after a recent survey of corruption watchdog Transparency International which ranked the Philippines as the third most corrupt country in Asia and 11th in the world. Arroyo said that although her administration has accepted the findings of Transparency International, it was nevertheless unfair as it did not mention the bureaucratic reforms the government has put in place since 2001. (PhilStar.com Sep 19 2003 summary by Sherldine Tomlinson).
LEADER'S HUSBAND FACES MONEY LAUNDERING INQUIRY Miguel Arroyo, Philippines President Gloria Macapagal Arroyo’s husband could be a mine to sabotage the credibility of Arroyo administration’s anti-corruption drive when he was blamed for money laundering even though the charge is still unproven. Mrs Macapagal stepped up measures to fight graft in government after July’s failed mutiny, led by young officers who complained of massive corruption and other irregularities in the armed forces. (Financial Times, 03 Sep 2003, summarized by Hanh Vu).
GUNMEN KILL ANTI-CORRUPTION RADIO COMMENTATOR IN THE PHILIPPINES Noel Villarante, a DZJB radio commentator who is known for his attacks against corruption in the provincial government and illegal gambling, was shot to death outside his house in Santa Cruz town in Laguna province south of Manila late Tuesday. Gunmen remained unidentified till now, according to police. There have been at least 39 Filipino journalist killed on duty since 1986, said the media watchdog Center for Media Freedom and Responsibility, but all the cases stayed unsolved up to now. (AP, 20 Aug 2003, summarized by Hanh Vu).
Tax & customs officials face corruption charges. The Philippines have filed graft charges against four tax and customs officials in an effort to stamp out corruption in the government’s revenue agencies. The Department of Finance filed criminal complaints against three officials of the Bureau of Internal Revenue and a customs official after a lifestyle check showed they were living way beyond their means. “It is the government’s responsibility to ensure that every peso collected goes to the government and not to the pockets of some corrupt officials,” said Finance Assistant Secretary Emmanuel Bonoan. Two revenue assistant commissioners, a revenue regional director and a customs warehousing chief have been charged by the Department of Justice. (Borneo Bulletin, July 22, 2003, summary by Sherldine Tomlinson). Corruption Cited in Philippine Escapes. The Philippine president said that police corruption likely led to the escape from prison of three terror suspects, including a top bomb expert, and threatened to shake up the police force. The escape of Indonesian Fathur Roman alGhozi, an alleged bomb expert of the al-Qaida-linked Jemaah Islamiyah group, along with two other suspects has been an embarrassing blow to the Philippine government’s high-profile role in the U.S. led war on terrorism. (New York Times, July 17, 2003, summary by Sherldine Tomlinson).
OPINION: KILLING JOURNALISTS It's said that moral can be killed by grafts; spirit by starvation wage but to stop journalists from exposing irregularities that some people would like to keep secret and hidden from public view there is a ultimate way – making them disappear forever. A study made by six Communication Arts graduates in Miriam College show that in 16 years (1986 – 2002) a total of 69 journalist were killed in Philippine. Of the total, 39 were categorized as job-related; 22 had unknown causes or motives; and 8 were non-work related. Of the 39 journalists killed during their duties, many were actively involved in crusades against corruption and related issued or were assigned to conflict areas. Only 5 (7.25%) of the 69 cases have been solved; exactly 92.75% of the cased have remained unsolved. To deal with the situation, Freedom Fund for Filipino Journalist Inc. will conduct a press briefing on the killings of Filipino journalists at a gathering held in Club Filipino and launch a Countdown for Justice for slain journalist Edgar Damalerio of Pagadian city. (Philippine Daily Inquirer 06 May 2003, summary by Hanh Vu).
government
corruption eating into firms profits.A survey has shown that
Philippine companies would be able to cut costs and boost net income by as
much as 20 per cent if corruption in the government fell to the level of
Singapore. Most of the 500 companies polled said that they were willing to
contribute 2 per cent of their net income to fund a programme to cut
corruption. (The Straits Times Apr 04 2003 summary by Sherldine
Tomlinson).
Philippines
dash for sanctions deadline. The US lists several terror groups in the Philippines.
The Philippines government is making a last-minute bid to pass
money-laundering laws to avoid economic sanctions. The anti-money laundering
Financial Action Task Force has demanded the Philippines strengthen laws or
face being added to a blacklist of uncooperative countries. The 11 September
attacks on the US gave a new international impetus to the crackdown on money
laundering, especially by terrorist organisations. Sanctions would seriously
affect trade with the country and the repatriation of billions of dollars by
Filipino workers in Asia, the Middle East and US. (BBC News, February 11,
2003 summary by Sherldine Tomlinson). Manila, MIRACLE OF WATER TO THE POOR FADES, BAIL OUT OF
PRIVATE COMPANIES. Politically connected families and private companies share
the turf. Read the fifth installment of ICIJ's 10-part series into global
water privatization, "The Water Barons." http://www.public-i.org
ANTI-GRAFT COURT CONSIDERS NEW PANEL TO TRY ESTRADA. Former Philippine president Joseph Estrada is currently facing trial on charges of violating the Anti-Plunder Law, along with hid son Jinggoy. Among the charges against them is the acceptance of monthly protection money from illegal gambling operators totaling millions of pesos, the embezzlement of 275 million pesos from a provincial development fund and the acceptance of kickbacks from profits gathered from the misappropriation of public funds. Estrada is also accused of amassing hefty commissions from a transaction in which the state-owned Government Service Insurance System invested a huge amount of money in Belle Corporation, a stock brokerage firm under the chairmanship of businessman Willie Ng Ocier. The trial is being handled by the Sandiganbayan’s 3rd Division, which is facing the problem of a shortage of judges. Estrada’s defense lawyers have agreed to the proposal that the Sandiganbayan set up a special division to deal with the case, subject to their perusal over who will preside over the trial. They had earlier appealed that the case be transferred over to another Sandiganbayan branch. In the meantime, hearings on the Belle Corporation case was being held by the 3rd Division yesterday.(8 Jan 2002, Gulf News, summary by Radhika Das).
Boncodin assures funding for anti-corruption war. Budget Secretary Emilia Boncodin has given assurance that the government has adequate funds to support President Arroyo’s renewed initiatives against corruption. Arroyo declared that she is out to cut down corruption. Boncodin said that, the E-Government fund would be tapped to modernise the Bureau of Internal Revenue (BIR) and the Commission on Elections. Boncodin also pointed out that, some adjustments in the funding allocations can still be made to channel more financial resources to strengthening the campaign against corruption in line with the President’s pronouncement.(CBN News, January 21, 2003, summary by Sherldine Tomlinson).
Citing economy, president will not seek 2004 ELECTION President
Gloria Arroyo said that she would not run for president in 2004 to avoid
further dividing her impoverished nation. The president said her candidacy
would result in “never-ending divisiveness” and worsen the nation’s economic
difficulties. Arroyo announcement came amid concern among business leaders
about the country’s economic prospects in the face of raging national budget
deficit, poor tax-collection efforts and perceptions of increased
lawlessness. The president also said that she intends to devote the last year
and a half of her term to strengthening the economy and encouraging business
activity that is unhampered by corruption and red tape in government.(Chicago Tribune, December 30, 2002 summary
by Sherldine Tomlinson). Philippine minister quits after corruption charges. In his letter of resignation,
Perez said he and the government had been subjected to “undue stress” which
may put in danger all the gains this government has achieved. And this I will
not allow. Perez has been on leave
since November 26 after Congressman Mark Jimenez, who has since been
extradited to the United States to face charges of fraud and illegal election
contributions, accused him of corruption. Perez has denied any wrongdoing and
has in turn filed a civil suit against Jimenez.(MSNBC News, January 2, 2003, summary by Sherldine Tomlinson). President pledges war against corruption. According to reports, a circumstantiated battle against the spreading scourge of corruption in the Philippines is taken place. President Arroyo who came to power in 2001, after the fall of her predecessor Joseph Estrada, and struck by corruption charges declared that she would close the ‘Public Welfare Authority’. It is a government agency that is working on a controversial highway project, now suspected of serious irregularities. The President in conclusion pledged to reimburse all consumers that received ‘exaggerated’ electricity bills. The Supreme Court has already ordered Manila’s Electricity Company to refund consumers a total amount of $528-million because of corruption activities within the company. (Missionary Service News Agency, December 2, 2002 summary by Sherldine Tomlinson). BONCODIN BLAMES BUDGET DEFICIT ON
CORRUPTION, TAX LEAKAGES. Department of Budget and Management Secretary
Emilia Boncodin is blaming the multi-billion-peso budget deficit on
inefficient tax collection and lost revenues because of corruption. In a
radio interview, Boncodin expressed her concern over the budget deficit that
has ballooned to 133 million pesos as of July, topping the full-year target
by three million pesos. Among those she cited that caused the current fiscal
dilemma are the 150-million-peso vehicle repair and acquisition scam at the
Department of Public Works and Highways, the four-million-peso VAT revenue
loss stemming for underpayment by 300 companies, and the 200-million-peso
tax-diversion controversy at a branch of the Land Bank of the Philippines.
She stated that her department is taking steps to generate savings for the
government. Although the budget chief assured that the government has enough
money to cover mandatory expenses including salaries and other benefits for
public sector employees, other expenses will depend on the availability of
funds and priorities set by the Arroyo administration. (The Philippine Star, August
27, 2002, Summary by Eliza Villarino). ARROYO ORDERS SIX MINISTERS PROBED
FOR GRAFT. Local businessmen in the Philippines lauded the move of President
Gloria Macapagal-Arroyo to investigate even members of her Cabinet for
alleged graft. Heading the probe is the Presidential Anti-Graft Commission,
which was created during the term of former president Fidel Ramos but became
inactive during the short-lived reign of Joseph Estrada, who is now detained
over allegations of plunder. Among those facing investigation are Secretaries
Hernani Braganza and Heherson Alvarez of the Department of Agrarian Reform
and the Department of Environment and Natural Resources, respectively.
Braganza is the subject of a complaint by his department's employees' union,
which contended that the chief employed 207 consultants and ordered office
renovations that amounted to 1.5 million pesos. Alvarez is being questioned
for allegedly hiring 195 consultants and contractual employees. Aside for
these investigations, the commission is also handling administrative charges
against Central Bank Governor Rafael Buenaventura and other heads of
government-owned corporations and financial institutions for allegedly
failing to comply with an order by President Arroyo last year to limit their
salaries to no more than 1.8 million pesos. Those who will be given a guilty
verdict could get a reprimand, suspension for six months or removal from
public service. (The Straits Times, August 28, 2002, Summary by Eliza
Villarino). SANDIGANBAYAN ORDERS ALL ASSETS OF
ESTRADA, CO-ACCUSED FROZEN. The Philippines' antigraft court Sandiganbayan
has ordered the freezing of assets owned by former President Joseph E.
Estrada in relation to the four-billion-Philippine-peso plunder case filed
against the ousted Chief Executive. The court also directed similar action be
undertaken on bank accounts valued at 11 million pesos held by Estrada's
alleged jueteng (a from of illegal gambling) accountant Yolanda Ricaforte in
six Equitable PCI Bank branches and the 201-million-peso deposit in the same
bank consigned to the Erap Muslim Youth Foundation. The ten-page resolution likewise ordered the attachment of
houses owned by Ricaforte and Charlie "Atong" Ang, both of which
are located in Quezon City. The court's spokesman Renato T. Bocar said that a
guilty verdict would mean forfeiture of the valuables in favor of the
government and that the decision, being interlocutory, cannot be appealed at
the Supreme Court. He stated, however, that the defense might submit a
counter-bond equal to the amount of properties to remove the attachment.
Ex-Estrada defense lawyer Raymond Fortun said that the charges are without
merit and that Estrada did not acquire any property during his presidency.
Feeling apprehensive about a certain portion of the resolution, the
defendant's attorneys intend to file a motion to clarify the extent of the
attachment. (BusinessWorld Intenet Edition, August 27, 2002, Summary by Eliza
Villarino). AGRI-BASED FIRMS HINDERED BY CREDIT LACK, CORRUPTION After 5 years of introduction of Agricultural Farm and Modernization Law which was addressing many of the agricultural sector's problems in Philippine, no progress have been made so far in the sector. The agriculture-based businesses in this country could not take off due to poor access to credit, rising criminality, lack of infrastructure, weak markets and corruption but no concrete sustainable actions are being undertaken by the government, according to a recent World Bank survey. (Philippine Daily Inquirer, July 29, 2002, summary by Hanh Vu).
NEW PRECEDANTS. Nationwide anti-graft drive proposed by
solon The impeachment cases against
Ombudsman Aniano Desierto are being used as precedent to fight graft and
corruption in government. Misamis Oriental Rep. Oscar S. Moreno has begged on
civil society, the Church, the business community and other sectors of
society to unite in a campaign to oust Mr. Desierto and other allegedly
corrupt officials. Ombudsman Desierto
is charged with whitewashing the tax credit scam cases that involves the
Chingkoe Group of Companies. Mr. Moreno said the removal of Mr. Desierto
through impeachment would serve as a warning against public officials and
would be a catalyst of change in government service. (BusinessWorld
(Philippines), February 8, 2002, summary by Sherldine Tomlinson).
TAPE EVIDENCE GIVEN BY ACCUSER IN BRIBERY CASE AGAINST OMBUDSMAN. In the impeachment proceedings against Ombudsman Aniano Desierto, the accuser, lawyer Ernesto Francisco yesterday revealed a new tape evidence in which his former client, banker Luke Roxas is heard admitting to having delivered a bribe of P400,000 and expensive camera equipment to Mr Desierto. Mr. Francisco had filed the impeachment complaint against Mr Desierto on charges of bribery, betrayal of public trust and violation of the Constitution with reference to the case of his having accepted a bribe for deferring the investigation into the Bank of Southeast Asia- Petron Corp. scam in 1997, when Mr. Roxas was the majority stock holder in BSA. The National Association of Corruption Prevention Units (NACPU), a group of 300 civilian anti- graft units has however asked for dismissal of the impeachment proceedings, stating it an attempt to oust the ombudsman as he is the lead prosecutor in the plunder case involving P4-billion against former president Joseph Estrada. The deputy ombudsman has said that Mr. Francisco had violated the rule of confidentiality between lawyers and clients and the anti-wire tapping law, on grounds of which he could be disbarred. The house committee on justice is to decide on the sufficiency of the impeachment complaint. (Business World, December 12, 2001, summary by Aruna Balakrishnan).
ANTI-CORRUPTION COURT GRANTS PERMISSION TO IMELDA MARCOS TO TRAVEL ABROAD. Imelda Marcos, former first lady who is facing charges of corruption was given permission by the Sandiganbayan anti- corruption court, to travel to China for medical treatment. The widow of the country’s late President, Ferdinand Marcos was granted bail in October on charges of having Swiss bank accounts under the names of several foundations, containing millions of dollars illegally forwarded into them. She was also charged with violation of the constitution as cabinet minister in the 1980s. These charges are part of a larger case alleging that the Marcos family plundered the nation to the tune of $10bn between 1968 and 1986, when finally they were overthrown in a popular revolt. The family is also under investigation on charges of human rights violations. Mrs. Marcos who was earlier sentenced to a 12- year term on corruption charges had managed to get away on appeal. However, in light of the cranial surgery that she had undergone last December, the court has decided to grant permission to her request to travel abroad for treatment. (BBC, December 3, 2001, summary by Aruna Balakrishnan).
Manila, FORMER PRESIDENT JOSEPH ESTRADA, ACCUSED OF POCKETING $77MILLION IN ILLEGAL PROCEEDS, NOW PROCEEDS TO SUE GOVERNMENT PROSECUTORS, The former Philippine president Joseph Estrada is preparing to sue government prosecutors in his first legal offensive since being detained in April. According to the lawyer of Estrada, Raymond Fortun, Ombudsman Aniano Desierto will be among those accused of "malicious prosecution and damages." Ombudsman Aniano Desierto had certified that there was probable cause to file a perjury charge against Estrada. "The unwarranted filing and subsequent withdrawal" of five of the original eight charges against Estrada "showed a clear case of political harassment against him," Estrada's lawyer said. We remind to you that Estrada is accused of cheating on 1999 statement of assets and liabilities and of pocketing some $77 million in illegal gambling proceeds, tobacco tax kickbacks, and commissions from stock purchases. (Source: CNN, October 31, 2001, summary by Pavlidis George).
MURDER OF KEY WITNESS, A CONCERN FOR DETAINED FORMER PRESIDENT JOSEPH ESTRADA. Auditor, Agustin Tan and a key witness for the president in his corruption trial, was ambushed and killed last week. According to the former President, who is on trial on several charges including embezzling 130 million pesos in tobacco taxes, Tan had testified that the charges against him were baseless and would have played a crucial role in exonerating him of the charges in the Sandiganbayan, the anti- graft court. However, the charge sheet alleges that the money was personally delivered to Estrada’s place by two people including provincial governor, Luis Singson, who had blown the whistle on the President a year ago leading to his impeachment trial, further to which Estrada was toppled in a revolt and arrested in April this year. Speaking from the military hospital where he is detained, Estrada expressed unhappiness in the incident and the fact that no one has been arrested for the murder of Tan. However, the trial is to continue from next Wednesday and Estrada is likely to face life imprisonment if indicted on the charges of having accumulated a phenomenal personal fortune worth 80 million dollars. (Agence France-Presse, October 12, 2001, summary by Aruna Balakrishnan).
RACE TO PASS MONEY LAUNDERING BILL. The Congress of Philippines is working hard on the drafting of a new anti-money laundering bill. The Government and the Legislature of the country will try to present by Sept. 30 the new legislation to the Financial Action Task Force (FATF is a Paris-based watchdog that fights international money laundering). According to Mr. Magsaysay, chairman of the Senate committee on banks which is in charge of the anti-money laundering bill: "By Sept. 30, with the other senators knowing that this (anti-money laundering bill) is a must, we will already pass the bill, it would be certified and then signed and sealed and delivered by President Macapagal-Arroyo to the FATF". "With the support of the senators, we hope they will not make the discussions long but give out their concerns so in three to four days by next week, we can finish it." (Source: Manila Time, September 19, 2001, summary by Pavlidis George).
MANILA: ESTRADA’S GRAFT TRIAL BEGINS OCTOBER 1. On Thursday, the nation’s anti-graft court announced that Former President Joseph Estrada will stand trial on October 1 on the charge of plunder. In a pre-trial hearing, the Sandiganbayan court said it will hear from the defense and the prosecution on accusations that Mr. Estrada amassed an illicit fortune of $80 million from illegal gambling operators and kickbacks during his 31 months in office. He denies the charges. While economic plunder is a capital offense in the Philippines, many believe it unlikely that Mr. Estrada would be put to death. On October 29, the former president is also to stand trial on perjury charges. Prosecutors allege that Mr. Estrada underreported his net assets in 1999, declaring only $700,000 when they believe he had more than $36 million in several bank accounts at the time. (Source: Court TV Online (AP), September 10, 2001, summary by Agnes San Pedro). COURT ASKED TO
FREEZE BANK ACCOUNTS LINKED TO ESTRADA. The Sandiganbayan was asked to freeze 16 bank accounts being linked
to former president Joseph E. Estrada. The accounts, in Equitable PCI
Bank, Equitable Savings Bank and United Coconut Planters Bank (UCPB), need to
be attached so that these may be forfeited in favor of the government in case
Mr. Estrada is convicted. The prosecution panel said the government is
entitled to these assets since the accused Mr. Estrado amassed this wealth
via fraudulent means. (Business World, August 17, 2001, summary by Barbara
Gray). SOCIAL SECURITY SERVICE PRESIDENT REFUSES TO QUIT Allegations of graft and corruption and a reported plan by Social Security Service president Vitaliano Nanagas to privatize the organization, led SS workers to walk out of their jobs on Monday in protest. Employees are insisting that Nanagas be replaced. Nanagas is denying the claims, stating that all he did was to “reform the service of the SSS and refused to step down unless President Gloria Macapagal-Arroyo asked him to do so. No solution has been met nor replacements been made. (INQ7.net, July 31, 2001, summary by Kelli Johnston).
Financial Action Task Force (FATF), international body against money laundering has not only retained this country in its Blacklist but declared that this country faces countermeasures.(Wall St. J. June 22, 2001, p. A3).
EXTRADITION SOUGHT FOR TWO ALLEGED ACCOMPLICES OF EX-PRESIDENT NOW IN THE USA Hernando Perez, Justice Secretary, will request the U.S. to extradite two alleged Estrada accomplices, Charlie Ang and Yolanda Ricaforte, who are planning to seek political asylum. Perez believes asylum is used for the politically oppressed, not those facing charges of plunder. U.S. authorities have slowed the extradition as they have requested Manila authorities extradite Mark Jiminez, tycoon, who was indicted in 1999 for tax evasion, mail fraud, and illegal Democrat Party contributions. Ang allegedly collected payoffs and embezzled funds and Ricaforte allegedly audited illegal payments. (INQ7, May 26, 2001, summary by Marg Reynolds).
MONEY TALKS AND THE DEAD VOTE Election fraud was to be expected during the recent election in which thirteen senatorial seats, the entire House of Representatives, and thousands of local posts were up for grabs. The types of fraud include: more votes cast than registered on the voting list, tampering with the tally of votes, use of ‘flying voters’ or those from outside the constituency who vote using registered names of others, either wholesale or retail vote buying, and stuffing or stealing ballot boxes by candidates or their agents. All the fraud types must have the connivance of election officials, although the government Commission on Elections has determined penalties if the cheaters are caught. (AOL News (Reuters), May 14, 2001, summary by Marg Reynolds).
EX-PRESIDENT WANTS PRESIDENCY IF COURT ACQUITS HIM. Joseph Estrada, deposed leader, promises to call for a presidential election if a court clears him of corruption charges and he is reinstated as president. He also stated he would call for a shift from presidential to parliamentary government. Gloria Macapagal Arroyo, President, lifted the state of rebellion after Estrada-allied politicians were arrested for plotting to overthrow the government. Estrada commented, ‘How come if it’s the rich … it’s called democracy? But if it’s the poor who go there, it’s rebellion?’ (Yahoo News (DJ), May 7, 2001, summary by Marg Reynolds).
PRESIDENT PROMISES MORE ARRESTS A state of rebellion was declared by Gloria Macapagal Arroyo, President, which gave police power to arrest without warrants, following violent demonstrations which killed at least six and injured more than a hundred people. She ordered arrest of eleven opposition leaders and also some business leaders accused of financing Estrada’s supporters. Further, Jose Victor Ejercito and Jude Estrada, Joseph Estrada’s sons, may also be arrested; Jingjoy Estrada also faces charges of plunder, together with his father. (Yahoo News (AP), May 2, 2001, summary by Marg Reynolds).
POLITICAL DYNASTIES CLING TO POWER:Millions of dollars are spent by candidates campaigning in the national elections for the covert rewards of plum government jobs or padded contracts for family and friends. The powerful political clans and dynasties, such as the Marcos family, have held the economy of the country hostage. However, actors and athletes, such as Joseph Estrada’s disastrous reign, are also leaving their mark on the electorate. The administration of Gloria Macapagal Arroyo has vowed to hunt down the funds amassed by the dynasties to distribute to 10,000 Philippine victims of human rights abuses suffered during the Marcos’ administration. Head of the Commission on Elections, Resurreccion Borra, stated legal reforms to impose a restriction on relatives of politicians participating in elections are required. A Filipino journalist recently stated a choice between self-serving political dynasties and these singing, dancing fools is as a choice between cholera and typhoid. (San Francisco Chronicle, May 1, 2001, summary by Marg Reynolds).
FINANCE DEPARTMENT FIGHTS GRAFT WITH WEBSITE Alberto Romulo, Finance Secretary, together with members of the private sector, has launched a website called ‘Walang Kukurap’ (‘no blinking’) at which citizens may lodge complaints against corruption amongst government employees. Agencies such as the Bureau of Customs, Bureau of Internal Revenue, and the national and local Treasury Departments within the Department of Finance will be included and the website will also solicit suggestions for performance improvement. Assistance by the Department of Justice and private practitioners has been enlisted and tax collection has increased substantially since the program’s inception. (Philippine Star, Apr 22, 2001, summary by Marg Reynolds).
TACTICAL’ MOVE OVER ESTRADA CORRUPTION CHARGES Aniano Desierto, Ombudsman, announced state prosecutors have withdrawn five of eight criminal charges against Joseph Estrada, pending agreement by the country’s anti-corruption court. The most serious of the charges include economic plunder and will remain; the lesser charges include accepting bribes from gambling syndicates, embezzlement of exise taxes, and perjury. Estrada denies any wrongdoing. (BBC News, Apr 18, 2001, summary by Marg Reynolds).
Manila, SHOOTINGS AND ABDUCTIONS - ELECTION PHILIPPINE STYLE. Gunmen killed a policeman during a ballot-box heist and suspected rebels abducted a mayoral candidate. In total 73 political killings took place since campaigning began in January for a Senate race. The candidates who favor President Arroyo appeared to hold a slight lead over those allied with former President Joseph Estrada. We remind to you that the Estrada was hounded out of office by massive protests in January and jailed last month on corruption and plunder charges. More specifically, Estrada was accused of pocketing $82 million in payoffs while he was in office. The whole political crisis began in August when a provincial governor accused Estrada of corruption and included an abortive impeachment trial. Arroyo, who was at the time the vice president, took office on Jan. 20th -the same day Estrada left the presidential palace. (Source: Associated Press, May 16, 2001, summary by Pavlidis George).
8 BUSINESSMEN QUESTIONED OVER MILLIONS DEPOSITED TO ALLEGED ESTRADA-OWNED ACCOUNTS Margarito Gervacio Jr., Overall Deputy Ombudsman, has directed eight businessmen who allegedly deposited millions of pesos into the Jose Velarde account owned by Joseph Estrada, to explain why they should not be charged with economic plunder. The businessmen were held as co-conspirators in laundering ill-gotten wealth through the account with Equitable-PCI Bank. The Velarde account’s initial deposit of P1 on August 26, 1999 grew to P3.3 billion within fifteen months. The businessmen are listed as Jaime Dichaves, Mark Jiminez, Manuel Pa-ngilinan, George Go, Dante Tan, Lucio Co, Kelvin Garcia, and William Gatchalian. Also summoned to the Office of the Ombudsman were Dichaves’ wife Abby and his lawyer, Fernando Chua. (Philstar.com, Apr 12, 2001, summary by Marg Reynolds).
FORMER PRESIDENT LOSES APPEAL CLEARING WAY FOR CORRUPTION TRIAL Francis Garchitorena, chief judge, together with other members of the Sandiganbayan, the country’s anti-graft court, may hear a petition by Joseph Estrada, former president, which seeks to halt criminal proceedings against him as he was not provided enough time to answer charges. The Supreme Court has dismissed this petition and also Estrada’s second appeal to keep the presidency and immunity from prosecution. The former president stated there was a double standard of justice in the country as corruption cases against Fidel Ramos, his predecessor, have been unresolved for two years. (Yahoo News (AP), Apr 10, 2001, summary by Marg Reynolds).
CONVICTS SAY ESTRADA HAS FIRST USE OF PRISON TOILET Prisoners at Quezon City jail have said they will ensure former president, Joseph Estrada, will enjoy as many privileges as possible if he is convicted and joins them. Venancio Roxas, president of the inmates association, stated that although he may have to share a cell and toilet with fifty other inmates, he won’t have to wait his turn. To make him as comfortable as possible, they are even willing to give him a home-made wooden bed. Mr. Roxas said, ‘We’re willing to make these sacrifices for a former president and a good action star’. (Ananova, Apr 9, 2001, summary by Marg Reynolds).
WORLD BANK URGES EFFECTIVE ANTI-CORRUPTION MEASURES An explicit and credible corruption strategy, transparency, and good governance are essential for countries seeking a competitive advantage as Asia recovers from the economic crisis, according to a recent World Bank study. The country meets many preconditions for a successful anti-corruption campaign; however, very large amounts of public funds are lost to political and bureaucratic corruption. The World Bank recommended the following approach to fight corruption: policy reforms and deregulation, reforming campaign finance, increasing public oversight, reforming budget processes, improving meritocracy in the civil service, targeting selected departments and agencies, enhancing sanctions against corruption, developing partnerships with the private sector, and supporting judicial reform. (Yahoo News (Asia Pulse), Apr 6, 2001, summary by Marg Reynolds).
EX PRESIDENT ESTRADA FIGHTS TO PRESERVE IMMUNITY Francis Garchitorena, Presiding Judge, stated no bail is permitted for economic plunder, the most serious of the eight charges against Joseph Estrada. Estrada’s lawyer filed a second appeal of a decision that stripped him of immunity from prosecution. (Yahoo News (AP), Apr 5, 2001, summary by Marg Reynolds).
FORMER PRESIDENT INDICTED FOR AMASSING $82 MILLION IN BRIBES. Joseph Estrada, former President, was indicted on charges he amassed $82 million in kickbacks and payoffs during his 2-1/2 year term in office. Prosecutor Aniano Desierto, has leveled a variety of charges against Estrada, including plunder, violation of the anti-graft law, misuse of public funds, perjury, illegal use of an alias, illegal gambling, and violation of the law on ethical standards. Estrada reported a net worth of $700,000 two years ago. Also charged with plunder, a capital offsense, were Estrada associates Atong Ang, businessman; Edward Serapio, lawyer; Jinggoy Estrada, Joseph Estrada’s son; and others. Luisa Ejercito, Senate candidate and wife of Joseph Estrada, has been charged in connection with accepting kickbacks. Luis ‘Chavit’ Singson, Governor of Ilocos Sur province, has been granted immunity from prosecution in exchange for testimony as he first publicly accused Estrada of bribe-taking and skimming tax revenues. (NYT (AP), Apr 4, 2001, summary by Marg Reynolds).
EXAMPLES OF GRAFT AND CORRUPTION. WHAT IS THE EXACT DEFINITION OF CORRUPTION? The National Anti-Corruption Framework and Strategy 2000 has defined corruption as ‘the use of public office for private gain or the betrayal of public trust for private gain’; and the definition of graft refers to ‘the acquisition of gain in a dishonest or questionable manner’. Examples of corruption include up to 65 percent of textbook funds reserved for bribe money in the publishing industry, commissions to congressmen on public works contracts averaging 30 percent of the project cost, and congressional candidates paying ‘barangay captains’ to purchase votes amonst their constituents to vote for the preferred candidate. (Inquirer, Mar. 26, 2001, summary by Marg Reynolds).
OUSTED PRESIDENT ESTREADA GUILTY OR INNOCENT? LET THE DICE DECIDE. Seven Filipino men have invented a board game similar to Monopoly and have called it ‘Impeachment: an educational board game’. The game is a re-enactment of the Senate impeachment trial of ousted President Joseph Estrada and sales of the game have been brisk. Production of the second set of copies is underway and Alfred Galvez, one of the seven, stated ‘At the end of the day, it’s still a game of strategy and numbers’. (Yahoo News (Reuters), Mar. 27, 2001, summary by Marg Reynolds).
AFFIDAVIT WEAKENS FORMER PRESIDENT’S CASE Hernando Perez, Justice Secretary, stated that the counter-affidavit filed by Joseph Estrada will weaken his case and may be used against him in his pending appeal with the Supreme Court ruling on the legitimacy of Arroyo’s presidency. The Court refused Estrada’s appeal for presidential immunity. And the counter-affidavit acknowledges he has submitted himself to the Ombudsman’s jurisdiction and no longer enjoys immunity from suit. Estrada has claimed that allegation are fabricated in his first counter-statement with the Ombudsman, in connection that allegedly earned P189.7 million in commissions from using funds from the Government Service Insurance System and the Social Security System to purchase P1.8 billion of Belle Corp. stocks. (ABS-CBN News, Mar. 23, 2001, summary by Marg Reynolds). PRESIDENT CALLS FOR MORAL REVOLUTION TO STAMP OUT CORRUPTION. President Arroyo stated that a recent survey by the Political and Economic Risk Consultancy has caused the Philippines to be perceived as one of Asia’s most corrupt countries. Further, she stated, the legacy of the immoral leadership of Joseph Estrada has caused her to urge government officials and employees to launch an anti-corruption revolution and prove that the Filipino men and women are above suspicion. The Supreme Court recently barred the Ombudsman from filing criminal charges against Estrada pending resolution of his appeal of the ruling upholding the Arroyo presidency. (ABS-CBN News, Mar. 20, 2001, summary by Marg Reynolds).
OFFICERS GET DEATH SENTENCE IN BRIBES Superintendent Francisco Ovilla and his nine subordinates have been sentenced to death for accepting bribes totaling $13,265 from alleged drug dealers. The drug dealers sold 3.3 pounds of the stimulant, ‘meth’, to an undercover officer in August 1999. (The Charlotte Observer, Mar. 16, 2001, summary by Marg Reynolds). EXAMPLES OF GRAFT AND CORRUPTION. This is the anatomy of some types of corruption in Philippines, taken from the website of the Transparent Accountable Governance project. According to an article of Yvonne T. Chua of the Philippine Center for Investigative Journalism, up to 65 percent of textbook funds are reserved as bribe money. The bulging bag of a medium-sized book publisher caught in January 1999 contained several envelopes: P 1,000,000 (5% of the contract) for the regional director; 50,000 for the supply officer; 40,000 for the chief accountant; 15,000 for the accountant who obligated the money; 10,000 for the cashier; 5,000 for each of the accounting clerks; 40 percent of the contract to a congressman. The total is about half the size of the contract she won. Here is another example taken from a report by Earl Parreño: according to the report, congressmen get 12 percent to 20 percent of the funds allotted for building artesian wells, bridges, and roads. In 1998 a cabinet member told journalists that commissions on public works ran up to an average 30 percent of the project cost. Finally, a piece by Stella Tirol tells of the corruption that takes place in elections. For example one congressional candidate in Southern Luzon gave out as much as P 10,000 a day in the barrios. The rate then was P 100 per voter. In addition to the simple dole-out, there are more sophisticated ways, such as getting the barangay captain to your side. One barangay captain she interviewed admitted that he and other barangay captains were offered P 30,000 each. A bidding competition would ensue among the candidates. (Source: Inquirer -Philippines, March 26, 2001, summary by Pavlidis George).
EX-PRESIDENT GOT KICKBACKS IN DEAL Joseph Estrada, former President, has been charged with eight complaints of plunder, which may be punishable by death under Philippine law. He previously denied all charges of corruption, which were filed with the national ombudsman. Justice Minister, Hernando Perez, stated he will make a motion that the separate cases be consolidated into one, thereby facilitating one court trial. (Yahoo News (Reuters), Mar. 12, 2001, summary by Marg Reynolds).
13 CORRUPTION CHARGES AWAIT EX-PRESIDENT Herando Perez, Justice Minister, has prepared nine of possibly thirteen charges against ousted President, Joseph Estrada, which include misuse of public funds, graft, perjury, bribery, unexplained wealth and various plunder cases. The plunder cases include the diversion of tobacco excise taxes to Estrada’s personal account, the investment of the Government Service Insurance System in Waterfront Phils, Inc., and the investment of the Social Security System in Belle Corp, which together allegedly earned Joseph Estrada million of dollars in kickbacks. (ABS-CBN News, Mar. 9, 2001, summary by Marg Reynolds).
CORRUPTION ALLEGATIONS SPLIT MILITARY Navy Chief Rear Admiral Guillermo Wong has been forced to resign after complaining about corruption in the form of irregularities of 11 million pesos ($227,000) in the purchase of equipment. Wong stated helmets and guns were paid for but not delivered. Gloria Macapagal, President, has claimed the armed forces were now united, however, Angelo Reyes, army Chief of Staff, said Mr. Wong had broken the military tradition of respect for officers. (Financial Times, Mar. 1, 2001, summary by Marg Reynolds).
NAVY CHIEF TO QUIT OVER CORRUPTION ALLEGATION CONFLICT WITH MARINES Guillermo Wong, Navy Chief, has been forced to resign after openly scolding several marine commanders under him for alleged corruption in the command. Wong attempted to introduce computerized bidding in reforming the procurement of weapons and equipment, but some marine officials resisted. Division within the military, together with massive protests over corruption and political jockeying for the command posts has caused instability for the 10,000 troops of the Marine Corp. (WSJ, Feb. 22, 2001, summary by Marg Reynolds).
THOUSANDS GREET EX-PRESIDENT ESTRADA Supporters of deposed president, Joseph Estrada, cheered at his wife’s campaign rally for a Senate seat and called for his successor, Gloria Macapagal Arroyo to resign. Estrada was removed from office by the Supreme Court when his impeachment trial on corruption charges collapsed. He has denied these charges and awaits the Supreme Court decision on the legitimacy of the Arroyo administration. (Yahoo News, Feb. 27, 2001, summary by Marg Reynolds). Manila, Corruption
forces aid cuts. The Asian Development
Bank (ADB) faces pressure from donors to cut aid to countries which fare
poorly on new performance criteria that include ratings for governance and
corruption. The bank stated that
economic development is held back by poor governance systems: in an
assessment of the systems of Thailand and Vietnam it found that found that
approximately 30 per cent of public expenditures in both countries
disappeared through fraud and corruption. (FT, February 11, 2001, summary by Hema Kotecha). MANILA – A banking executive serving as a witness
in President’s Estrada impeachment trial made a stunning revelation today as
she described how she personally saw the president using a false name to
withdraw $10 million from a personal secret account. The trial had so far
centered on testimony from Ilocos Sur Governor Luis Singson, Estrada’s former
close friend, who had testified that Estrada received $8.6 million from
gambling lords and skimmed of $2.6 million from tax revenues intended for
tobacco farmers. (AP, December 22,2000. Summary by Fabian Camacho).
President Jospeh Estrada awaits vote in his impeachment trial for illegal gambling profits of $8 million and tax kickbacks of $2.8 million. If convicted on any one of the four impeachment charges by the Senate, Estrada may be removed from Office.(Yahoo News, AP, Nov. 19, 2000, summary by Marg Reynolds).
President Joseph Estrada will answer to corruption charges in the first impeachment trial in the country. He has been accused of bribery, corruption, betrayal of public trust and constitutional violations. He is accused of receiving $10.8 million in government taxes and gambling payoffs.(FT, Nov. 19, 2000, summary by Marg Reynolds).
President Joseph Estrada will answer in the Senate to corruption and receiving large sums of gambling bribery money accusations. A four part plan by one of Estrada’s collaborators for buying press coverage was uncovered and published in the Philippine Daily Inquirer. (M.I.S.N.A., Nov. 21, 2000, summary by Marg Reynolds). IMPEACHMENT
SUMMONS FOR ESTRADA. The Senate summoned President Joseph Estrada to answer
corruption charges in the country's first impeachment trial. The trial is
scheduled to start in early December, with the Senate's 22 members as jurors.
Estrada, who has denied the charges, said that the trial will give him
"an opportunity to reveal the whole truth in the proper forum." His
lawyers have 10 days to respond to the four articles of impeachment, namely
bribery, corruption, betrayal of public trust and constitutional violations.
If found guilty of any of the charges by at least two-thirds, or 15, of the
senators, Estrada will be removed from office. The charges arose after a
former ally accused Estrada of accepting 544m pesos ($10.8m) in illegal
gambling payoffs and government taxes. (Financial Times, 19 Nov 2000, summary
by Debbie Uy). MANILA Prosecutors say they have taken a step
forward, claiming to have proven the crime of bribery against President
Joseph Estrada. Prosecutor Sergio Apostol announced this in a radio interview
with DzMM, furthur enumerating cases in which the embattled President Estrada
personally received bribes from alleged baglady Yolanda Ricaforte and star
witness Luis Singson. In addition, Apostol emphasized Estrada?s admission to
having received 200 million pesos from jueteng collections through Atty.
Edward Serapio. The Muslim Youth Foundation, for example, is one of the
organizations set up as a front for bribe money. Still pressing is the issue
of the President?s mysterious mansions. (ABS-CBN News, 23 December 2000,
summary by Lu. C. L.). Jose
Maria Sison, leader of the underground Communist Party of the Philippines,
has accused President Joseph Estrada of masterminding a series of fatal
bombings in Manila in order to deflect attention from his corruption trial.
14 people have died in the bombings and at least 100 others injured. Sison,
speaking from his self-exile in Netherlands, asserts that the bombings are
representative of the government?s repressive measures designed to put down
any anti-Estrada dissent. However, no evidence could be cited to back up his
claims, and Estrada?s administration has roundly denied the allegations.
(Channel News Asia, 31 December, summary by Lu C.L.). Edgardo
Espiritu, Pres. Estrada's former finance minister, testified that the
president had confessed about having made lots of money trading the shares of
a gaming firm at the center of a price-fixing scandal. The gaming firm in
question was BW Resource Corp, whose majority owner, Dante Tan is now charged
with price manipulation arising from spectacular 5, 000% rise and fall in the
firm's shares in 1996. Tan had also admitted that Estrada had been his
partner in the said firm. Prosecutor Hernani Perez told the Senate court:
"We are showing that he betrayed public trust and engaged in conflict of
interest because the president should not participate in a company that has a
franchise with the government because it is a violation of his oath of
office." (Channel News Asia, 11
January, summary by Lu. C.L.). Manila, THE ESTRADA CASE. President Joseph Estrada
allegedly took about 400 million pesos
(US$8 million) in bribes from illegal gambling syndicates and
130 million pesos ($2.6 million) of excise
taxes intended for tobacco farmers.
Estrada has pleaded not guilty to charges of bribery, corruption,
betrayal of public trust and culpable
violation of the constitution. In its efforts
to impeach Estrada on these charges, the Philippine Senate ordered
the opening of crucial bank records.
Prosecution, after a preliminary examination
of the bank documents, said the latter appeared to have been
doctored. Chief Justice Hilario Davide, head
officer of the Senate court, had
ordered the unsealing of documents relating to an account held in
Equitable-PCI Bank. According to prosecutor
Romeo Capulong, the documents showed
that the bank account belonged to one Jose Velarde, "a mystery man
without an address, a telephone, an occupation
or a nationality". The person who
introduced the account-holder was named simply as GLG. No questions were
asked as to the identity of GLG. Bank's
chairman G. L. Go, a friend of Estrada,
denied referring to the impeachment trial. On the other hand,
Estrada has denied ownership of the disputed
bank account: "I have nothing to
do with banks," he said. Estrada now needs at least 8 votes of the
22-member Senate to be acquitted, while a vote
by a two-thirds majority is needed
to convict him and remove him from office. (Source: Reuters, December
20, 2000, summary by Pavlidis George).
A new twist has emerged in the Senate impeachment trial of
President Estrada. On Monday the prosecution received a letter from Mr. Jamie
Dichaves, claiming that the co-called ‘Jose Valhalla’ is his and not the
president’s. The lead prosecutor, however, condemned this as a last-ditch
ploy to save the president form impeachment. (Channel News Asia, 19 December
2000, summary by Lu.C.L.). QUEZON CITY An investigation by the ABS-CBN group turns
out evidence that Valhalla Resources Inc., the mysterious company linked to
impeached President Estrada, owns an P8.5 million log cabin in Tagaytay
Highlands. This posh accommodation is reportedly the same linked to the
President’s mistress, Laarni Enriquez. Valhalla Resources is one of the
companies that the President neglected to declare in his statement of
assets and liabilities, although he has financial links to the company. Up to
now, the ownership of this controversial company remains a mystery.
Several questions, however, have been raised with regards to the ownership and
extravagant spending of this company. Another such controversial company is
the much-spoken-of Equitable PCI Bank. Prosecutors allege that this bank was
used to fund a P142 million house for a mistress of Estrada’s. (ABS-CNB
Business, 15 December 2000, summary by Lu C.L.). The Supreme Court Chief Justice Hilario Davide has ordered
Philippine President Joseph Estrada to open his bank records, which allegedly
contain secret accounts held by the president. These include a copy of a
cheque for about US $3 million reportedly issued by the president under a
false name. The cheque was had been used to purchase a mansion for one of his
mistresses. This development is a huge setback to the incumbent, as it could
lead to the conviction of the embattled leader. Things now
look especially bleak for the president, as star witness Luis Singson
has just finished his 3-day testimony and presented the court with evidence
showing that Mr. Estrada had received money from illegal gambling at least 38
times over the past 2 years. (Channel News Asia, 15 December, 2000, summary
by Lu C.L.) MANILA The 11-member House of Representatives prosecution team have called President Estrada’s mistresses to stand trial after the President blocked a request to inspect their homes. The inspection was significant to the trial as the President had allegedly built their lavish homes with dirty money. Although the head prosecutor has conceded that it would be a humiliating ordeal for the women, the move had to be carried out as, by opposing the inspection "the president clearly showed he has many things to hide and he would suppress the evidence even at the expense of exposing his mistreses to scrutiny and even ignominy." (Yahoo Asia Finance, December 5, 2000, summary by Lu C. L.). MANILA
President Joseph Estrada’s trial is set to begin this week in a dramatic
climax after 2 months of political and economic turmoil sparked by
accusations of corruption and bribery. The 22-member Senate will act as both
judge and jury and will conduct the trial from Thursday, deciding on whether
Estrada is at all fit to govern the nation of 75 million. Estrada is the
first Asian leader to be impeached while incumbent. Two-thirds of the upper
house must vote in favor of a conviction to remove Estrada from office. The trial
is seen to be symbolic for one of Asia’s most vibrant democracies. The
judgment "will show the world whether or not we are a working democracy
or that we only have the facade of democracy," Senate president Aquilino
Pimentel said. (Yahoo Asia Finance, December 3, 2000, summary by Lu C.L.). QUEZON CITY, Palace prompted to come up
with list of reforms following heavy criticism of Estrada’s regime by
ex-President Fidel Ramos. "Your administration, instead, went into massive
binge of fault-finding, scapegoating and people-bashing, and you spurned the
hands of friendship, cooperation, solidarity and teamwork of many concerned
citizens extended to you - including mine. But we must persist because the
nation must move on and fast," Ramos said. Estrada thus has been ordered
to shape up or ship out by Dec. 15. Ramos urged the incumbent President to
reform his extravagant lifestyle, increase transparency with regards to his
accumulation of unexplained wealth, deplorable work ethic, justify his
alleged participation in corruption, cronyism, and ‘jueteng’ (an illegal
numbers game) and rid his cabinet of corrupt and sycophantic officials.
(ABS-CBN News, November 29, 2000, summary by Loo C.L.). MANILA, Estrada’s camp has come up with
a counter-report, Halal Ng Masa, lashing out at ex-Presidents Fidel Ramos and
Corazon Aquino, both of who are actively and vociferously campaigning for his
removal. The report accused Aquinos’ regime of being fraught with nepotism,
and further alleges that Ramos personally benefited from billions of pesos
lost in an anomalous land deal involving PEA and a private firm. This report
was aired on a weekly nation-wide television programme and has been denounced
by journalists as a propagandistic gesture geared at deflecting his
corruption charges. This report was scheduled for release just a day after
Estrada pleaded not guilty to charges of bribery and also just five days
before the start of his impeachment trial. Estrada stands accused by governor
Luis Singson of having received some P400 million in gambling bribes and
misusing P130 in tobacco excise taxes. (ABS-CBN News, December 2, 2000,
summary by Loo C.L.). PASAY CITY, The Philipine Senate will
consider a suggestion of head prosecutor Joker Arroyo’s to shorten the
impeachment trial by making a decision immediately after each impeachment
charge has been deliberated. This suggestion was made with the proximity of
the May senatorial and local elections in mind. Estrada is charged with the
following: alleged bribery by jueteng operators, breach of public trust,
graft and corruption, as well as violation of the Constitution. A single
guilty verdict will effectively remove him from office. In accordance with
the Articles of Impeachment, first up is the case of the bribery by jueteng
operators. Estrada however hit back at his chief accusor, governor Luis
Singson, alleging that the latter had tried to bribe him with P200 million
just weeks ago. (ABS-CBN News, December 2, 2000, summary by Loo C.L.). Philippines MANILA, ABS-CBN has received military intelligence reports revealing that the opposition has amassed P 2.5 billion over the last 2 years. This money is supposedly meant for destabilization purposes, to be used to oust the President definitely by 2004. Furthermore, Vice-President Gloria Macapagal Arroyo has been accused of having pocketed some P50 million from gambling lord Bong Pineda. In addition, former congressman Jose Peping Cojuangco has reportedly received a P1 billion donation to fund the United Opposition. Meanwhile, political strategist and Council of Philippine Affairs founder pastor Saycon allegedly procured at least P500 million. (ABS-CBN News, November 30, 2000, summary by Loo C.L.). PRESIDENT IMPEACHED ON BRIBERY CHARGES. President Joseph Estrada became the first Philippine president to be impeached by the House of Representatives. Pandemonium greeted Speaker Manuel Villar's announcement of the impeachment, which comes after allegations that Estrada accepted pay-offs from illegal gambling syndicates. Estrada supporters protested that the House's endorsement of the impeachment motion was unconstitutional, as the usual rules, such as the roll call of members and declaration of a quorum had not been observed. Opposition members, on the other hand, cheered at the announcement and chanted for Estrada to resign. According to the opposition, 115 congressmen had endorsed the motion, more than the required 1/3 of the House, which has 218 members. The Senate will likely start the impeachment trial later this month. Two thirds of the Senate has to vote in favor to oust Estrada from office. The political crisis has battered the economy, weakening the peso to a historic low of 51.95 to the dollar two weeks ago. (Reuters, 13 November 2000, summary by Debbie Uy).
WORLD BANK, OECD TO BACK REFORMS IN GOVERNANCE. Despite a growing political crisis, the World Bank and OECD promised financial support and expertise to the Philippines for corporate governance reforms. Former finance secretary Jesus Estanislao said that he was still discussing with representatives from the two agencies on the size of the financial assistance. The World Bank has been focusing on corruption and good corporate governance, which it says violate on its duty to alleviate the plight of the poor. The OECD has also been working against corruption and money laundering. The Philippines is in a political turmoil as its embattled President Joseph Estrada fights against allegations of corruption. (World Bank Development News, 10 November 2000).
PRESIDENT
DENIES NEW CORRUPTION CHARGES. President Joseph Estrada denied allegations
that he made more than $16 million from an insider-trading stock fraud and
received a $20 million kickback from the sale of the country's largest
telephone company. Estrada already faces impeachment proceedings for
allegedly accepting kickbacks from an illegal gambling operation. On November
13, the House of Representatives will start considering a motion to impeach
the president. Estrada has repeatedly said he is innocent and will not step
down, despite defections in his ruling coalition and calls for his
resignation by business and church groups. He called the allegations against
him lies made up by his political enemies and "forces seeking to
destabilize the government and promote their selfish agenda."
(Washington Post, 11 November 2000, summary by Debbie Uy).
IMPEACHED PHILIPPINE PRESIDENT FLAUNTS EXTRAVAGANT LIFESTYLE Philippine President Joseph Estrada is fighting to stay in office after being impeached Nov. 13 on charges that he took illegal gambling kickbacks and siphoned off tobacco taxes. Grandly supporting four households, the former film star has flaunted an extravagant lifestyle. http://www.public-i.org/story_01_111500.htm
Corporate Governance: Wall Street Journal, Nov. 8, 2000 (Front page sec. C) notes that this country is among the lowest ten in corporate governance by CLSA, Salomon Smith Barney. This means that shareholders do not get equitable treatment and disclosed information can be false and misleading. The laws governing duties of managers, accountants, etc. are inadequate or not enforced properly.
Manila- The motions to impeach President Estrada continue as the congressional justice committee has allowed the impeachment articles to be considered during the House plenary session this Monday, November 13. Estrada stands accused of graft, bribery, and perjury, including appropriating P130 to P250 of government funds for personal use and participating directly in the real estate business. (Manila Bulletin, November 7, 2000, Summary by Fabian Camacho).
ESTRADA IMPEACHMENT CASE SET IN MOTION. An impeachment case against President Joseph Estrada has been formally set in motion by the Philippine Lower House last October 23 to investigate the alleged gambling pay-offs received by the president. The House committe on justice can begin hearing the bribery and corruption charges against Estrada. Lawmakers and analysts expect the impeachment proceedings to trigger heated debates in Congress for months, worsening political turmoil and battering the economy. The bribery scandal has sparked several street protests against Estrada and calls for him to resign. Estrada has repeatedly denied the allegations and rejected the calls for him to step down. He suggested he might agree to a presidential snap election if the public supports it, but officials have questioned the legality of such an election. (The Independent Bangladesh, 24 October 2000, summary by Debbie Uy).
MANILA, Impeachment charges against President Estrada. Opposition groups filed impeachment charges against President J.Estrada. The President is accused of pocketing $11.4 million in illegal gambling money and tobacco taxes; he denies, though, every accusation. (Washington Post, October 18, 2000, summary by G.Pavlidis).
MANILA – Though few political analysts expect it to succeed, the Philippines opposition has filed an impeachment motion against President Estrada over allegations he took 414m pesos ($8.7m) in payoffs involving jueteng, an illegal lottery game. Mr. Estrada has denied all charges and gives all indications that he intends to stay, despite calls from influential figures for him to step down. Mr Estrada is also involved in a stock market scandal involving a gambling company. (Financial Times, October 18,2000. Summary by Fabian Camacho).
ESTRADA'S VICE PRESIDENT QUITS. Philippine vice president Gloria Macapagal Arroyo resigned from her Cabinet post on October 12 after allegations that president Joseph Estrada received 400 million pesos ($800 million) in illegal gambling payoffs. Mrs. Macapagal Arroyo, who was head of the opposition Lakas-NUCD party, the party of former president Fidel Ramos and secretary for social welfare and development, said in a statement "serious accusations have been made against the president." On October 9, Governor Luis Singson of the northern Ilocos Sur province had accused the president of taking payoffs from criminal syndicates operating jueteng, a lottery-style game. (Financial Times, 12 October 2000, summary by Debbie Uy).
MANILA - A prominent Philippines archbishop has called President Joseph Estrada to resign after a provincial governor revealed he personally oversaw payments of over $8.6 million from illegal gambling operators to Mr. Estrada over a 21-month period. Estrada's government has long been the center of corruption allegations, but this is the first time a high-ranking government official has accused him of embezzlement. Mr Estrada denies any involvement. (International Herald Tribune, October 12, 2000. Summary by Fabian Camacho). NEW GRAFT BODY CONSIDERED USELESS
Executive Secretary Ronaldo Zamora virtually admitted yesterday that a
commission recently created by President Estrada to fight corruption is toothless,
after all. Zamora also expressed disappointment that lawyer Haydee Yorac,
former Commission on Elections commissioner, turned down Mr. Estrada's offer to head the National
Anti-Corruption Commission. "That means that we will look for somebody
else equally credible as Attorney Yorac is," Zamora said, adding that
President Estrada's offer still stands. Yorac rejected the offer because the
commission's powers, she said, had no "real teeth" and were only
recommendatory, which would only make her look "ridiculous." Unlike
the Hong Kong anti-corruption commission, Yorac pointed out, the Philippine
body could not subpoena officials and documents, order arrests and hold
persons at airports. "I cannot accept the job because it will only confuse
the people. It will foster the illusion that I can deliver something that I
cannot deliver," she said. Zamora said that "the real problem is
that there are laws and there is the Constitution that say that many of the
powers that Attorney Yorac wants are really in the hands of the Ombudsman and
the Sandiganbayan," he said. Zamora said they have taken note of Yorac's
views. "Regarding what powers she wants to put into the commission,
we're prepared to take a second look about that," he said. Zamora said
last week that Yorac had already accepted Mr. Estrada's invitation.
Yesterday, he disputed this, saying, "We did not say that she has
accepted but, in fact, we said that she was going to think about it."
Yorac was surprised about her appointment when told by press about it the
other day upon arriving from a vacation in the United States. She said she "never spoke to
anybody about accepting this appointment and I definitely did not accept
it." A Yale law graduate, she also took issue that she took a one-month
study at rival Harvard University to examine various models of anti-graft
bodies in our countries. Mr. Estrada issued Executive Order 268 in July 18
creating the five-member commission to satisfy a World Bank demand that the
administration seriously fight corruption and cronyism. The Philippine Star,
September 6, 2000 http://www.philstar.com NEW HEAD OF ANTI-GRAFT BODY APPOINTED
Former Commission on Elections commissioner Haydee Yorac will head the newly
created National Anti-Corruption Commission (NACC). Executive Secretary
Ronaldo Zamora said yesterday Yorac had accepted President Estrada's offer
for her to lead the campaign to unmask crooks in government. However, Zamora
said Yorac had asked the Chief Executive for a month to study the various
models of anti-graft campaigns at Harvard University before she assumes
office. Yorac will take over the NACC by the end of September, he added.
Zamora said the President picked Yorac to head the NACC because he knows her
as "a person of complete credibility" who could lead the
government's fight against graft and corruption. Zamora said the NACC will
take off from studies on graft and corruption in government conducted by the
World Bank and the Development Academy of the Philippines. The President created the five-member
NACC through Executive Order 268 last July 18 to replace the Presidential
Anti-Graft Commission. The Philippine Star, August 31, 2000
http://www.philstar.com : SUCCESSFUL PRACTICES TO FIGHT
CORRUPTION IN ASIA PROFILED AT ANTI-CORRUPTION CONFERENCE To provide valuable ammunition for
President Estrada´s proposal to form an AntiGraft Commission, a conference on
Institutionalizing Strategies to Combat Corruption: Lessons from East Asia,
was held August 12-13, 2000 in Manila. Corruption exists in both developed and
developing countries and different nations have evolved different ways of
dealing with it. According to Ambassador Al Yuchengco, who opened the
meeting, the best records in Asia have been established by the governments of
Singapore and Hong Kong. Mr. Wolfgang Mollers, regional representative of the
Konrad Adenauer Foundation, said that the best means of bringing down corrupt
practices was a well-informed public that can serve as a watchdog to deter
public officials from abuse of power. Vice President Gloria Macapagal-Arroyo
cited her father´s (President Diosdado Macapagal) efforts to create a program
of "moral regeneration" and her parent´s example while in office by
refusing to accept valuable gifts. In his paper on the Philippines, professor
Eric Batalla of De La Salle, spelled out in historic and pertinent detail
just how much corruption costs this country in terms of its development.
Malversation of funds, falsification of documents, and bribery - were
estimated to cost P5.4 billion in the fiveyear period 1990-1995. Another
estimate suggests we lose P100 million per day to corrupt practices. With
corruption so deeply embedded and tolerated in this society what can be done
to change it? The two leading guidelines of the Singapore experiment are 1)
paying public servants high wages that are competitive with private sector
jobs and 2) prosecuting, punishing and shaming those public officials found
guilty of corruption. Anyone found guilty immediately loses his job and pays
heavy fines. In 1987 when the head of national housing came under
investigation, he committed suicide. Singapore has a Corrupt Practices
Investigation Bureau and their investigators are empowered to examine the
bankbooks of anyone under investigation, and those of his wife and family members
as well. Although Singapore has one of the cleanest records in the world
today, Dr. Tan Tay Keong, who presented the paper, assured his audience that
Singapore was also once rife with corruption during the British colonial
period and its early nationhood. The problem was only attacked in the late
1980´s. The Singapore program included tough anti-graft laws, which are
meticulously enforced; anti-corruption agencies, which maintain constant
vigilance and high salaries to public officials to reduce incentives for
abuse of office. Anyone who takes bribes or peddles influence in Singapore
knows that he faces the probability of investigation and punishment. It’s
enough to make a man honest. The Malaysian representative announced that his
government has recently created an anti-corruption agency which receives
complaints, investigates and makes arrests Indonesia has launched a national
anti-corruption drive and Thailand has discovered that corruption exists in
every ministry. Hong Kong, which like Singapore, has a good international,
rating, also gives high salaries to government officials to resist
temptation. They also must declare assets to prevent them from using their
position for personal gain. There are continual "integrity
checks´´ of all officials and immediate dismissal for dishonesty. Despite
these strictures, Dr. T. Wing Lo told his audience, Hong Kong had a housing
scandal in 1985 involving substandard construction and defects in both
housing and infrastructure - which is still not entirely resolved. Dr.
Francisco Magno of De La Salle University proposed that the Philippines could
start its war on corruption by minimizing opportunities, through transparency
in government department procurements, simplifying the regulatory process,
and limiting the discretionary authority of officials. Manila Bulletin,
August 31, 2000 http://www.mb.com.ph : BREAKING OFF THE TYRANNY OF CORRUPTION
-.EDITORIAL To some people in some places in the bureaucracy, corruption is a
way of life. Which is why putting an end to it is no mean task: it is a
courageous decision. To break up the ways of profligate lives requires the
unconquerable will of a true reformer. It is like fighting tyranny. When
President Joseph Ejercito Estrada first launched his drive against graft and
corruption in government last year, many welcomed it with uneasy
reservations. And for good reason. All presidents before him did the same,
and failed. Corruption in almost all levels of the bureaucracy flourished and
remains unabated. There are varied reasons, and one of them is inadequate
mechanisms that ensure transparency and enforcement. And low pay, of course.
When office workers are poorly paid and bribers are all around, it takes a
strongly embedded moral code to spurn temptations. Fortunately for us there are still many
of them in public service but they are mostly unnoticed. In the case of high
public officials, it is the prospect of getting away with the law because of
their influence that makes them corrupt. What is needed is for government to
exert more leadership than what people see today to assure the creation of a
dominant ethical environment in governance. President Estrada´s current drive
to look into the lifestyle of government officials is in the right direction
but that may not be enough. Corrupt officials are too wily for that sort of
old-boy trap. What is important is to show them that the same law applicable
to the ordinary citizen will be applied to their own conduct - no more, no
less - including the President´s. Secretary Dong Puno said the President has
consistently made it known no one is exempt from the drive. Let´s see the
process and practice as they apply the "last result of human
wisdom." Manila Bulletin, August 31, 2000 http://www.mb.com.ph : BUREAU OF INTERNAL REVENUE BLOCKS ANTI-CORRUPTION
EFFORTS - OMBUDSMAN SAYS Ombudsman Aniano Desierto said yesterday
the Bureau of Internal Revenue (BIR) is stonewalling efforts to check on the
lifestyles of government officials. Desierto said the BIR refused to open its
books, telling government investigators that income tax returns are
confidential, and that they could not scrutinize them. Desierto said the
officials being investigated have "waived" such confidentiality and
BIR officials cannot continue to use that excuse to prevent investigators
from doing their job. Desierto said the statement of assets and liabilities, which reveals the net worth of public officials, is vital in allowing the Ombudsman to discover any unexplained wealth. "The office (of the Ombudsman) has since elevated the matter to the Supreme Court (SC) and has been asking the SC to speedily resolve the is | ||
