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World Bank tags ‘key corruption risks’ in RP road projects

By Yvonne T. Chua
VERA Files

THE World Bank has identified at least a dozen stages in the country’s road projects, from procurement to payment, that are prone to corruption.

The “key corruption risks” in infrastructure contracts are listed in the bank’s project appraisal document on the $232 million loan it gave last year to the Philippine government for the second phase of the National Roads Improvement and Management Project (NRIMP-2).

As early as 2003, the World Bank rejected bids for two contracts worth $33 million it was funding under the first phase of the project or NRIMP-1 because of bid rigging. The bank released in 2000 a $150 million loan for NRIMP-1.

Click here (VERA Files) for the complete report.

Published inVera FilesWorld Bank projects

14 Comments

  1. Leonard McCarthy, World Bank Integrity Vice President, said, “This is one of our most important and far-reaching cases, and it highlights the effectiveness of the World Bank’s investigative and sanctions process. As the World Bank Group continues to ramp up its anti-corruption work, INT will remain vigilant in investigating allegations and holding wrongdoers accountable.”

  2. Al Al

    This administration has institutionalized corruption.

    It is beyond reform.

  3. Gabriela Gabriela

    I hope World Bank lets its biggest main contributor, the United States, know how corrupt this government is.

  4. bitchevil bitchevil

    * FG alleged to have received bribe to have presidential veto withdrawn

    In July 2001, Veronica “Bing” Rodrigo, former correspondence secretary and friend of President Gloria Macapagal-Arroyo, alleged that the First Gentleman received a P50-million bribe for the President to recall her veto of the franchise bills of the Philippine Communication Clearinghouse and APC Wireless Interface Network. Rodrigo retracted her accusations a few days later.

    * FG accused of using PCSO funds for campaign of certain senatorial candidates

    In October 2001, Robert Rivero, axed consultant of Philippine Charity Sweepstakes Office, alleged that First Gentleman Mike Arroyo used PCSO funds in the campaign of certain senatorial candidates and to bribe the media. He claimed that FG Arroyo paid P20.5 million to Bombo Radyo and Radio Mindanao Network. Even though the PCSO and lotto draw did not air in these stations, some commentators aired pro-administration commentaries. The PCSO publicity department denied Rivero’s accusations.

    * FG’s designation as OFW envoy

    In December 2002, President Arroyo designated Mike Arroyo as an OFW envoy so he could represent her in the countries she could not visit. However, critics assailed Arroyo’s announcement when they learned that his activities as OFW envoy could be funded by a proposed overseas workers legal assistance fund. They feared that the Arroyo couple would use the funds for her 2004 campaign. While the President did not recall her husband’s designation, the first gentleman voluntarily resigned.

    * FG accused of maintaining secret bank accounts in the name of Jose Pidal

    In 2003, Sen. Panfilo Lacson accused Arroyo of maintaining secret bank accounts to launder money from campaign contributions for the 1998 vice presidential bid of President Arroyo.

    First Gentleman Arroyo denied the allegations. His brother, Ignacio “Iggy” Arroyo took up the cudgels for him and claimed to be “Jose Pidal” before clamming up and invoking his “right to privacy” during a Senate investigation.

    * FG’s alleged friend is involved in importation of rotten rice

    Indian trader Kishore Hemlani, allegedly a close friend of First Gentleman Arroyo, also figured that year in a contract involving the importation of 600,000 metric tons of rotten rice worth P9.5 million from India.

    * FG’s expensive accommodations in a Las Vegas suite

    In 2005, First Gentleman Arroyo drew criticism for staying in a $20,000-a-night MGM Grand Villa in Las Vegas, Nevada, during a Manny Pacquiao-Erik Morales boxing match. Arroyo’s camp said the accommodation was complimentary and not paid for by public funds.

    * FG’s alleged receipt of jueteng payola

    During the same year, witnesses at the Senate hearings on jueteng claimed that First Gentleman Arroyo received protection money for the illegal numbers game. The First Gentleman denied the allegations and left the country momentarily to help “remove distractions and doubts from people’s minds” on President Arroyo’s ability to run the government. The Palace, then embattled with both the jueteng and “Hello Garci” controversies, dismissed the accusations against the First Gentleman as mere concoctions by those who wanted to oust the President.

    * FG’s involvement in the Hello Garci scandal

    Still in 2005, a Marine brigade commander appeared at a Senate Hearing on the Hello Garci controversy and claimed that First Gentleman Arroyo delivered a huge amount of cash to Mindanao shortly before the 2004 elections.

    Brig. Gen. Francisco Gudani cited information from an unnamed source that FG Arroyo flew to Mindanao twice in a private helicopter days before the 2004 elections to deliver P500 million in boxes.

    Gudani, who was detailed in Lanao during the 2004 elections, told senators that he witnessed vote-buying and other election irregularities in his area.

    * FG’s alleged friend is involved in fertilizer fund scam

    In 2006, the Senate wrapped up a series of hearings on the fertilizer fund scam and concluded that First Gentleman Arroyo’s close friend and fellow Makati Rotarian, agriculture undersecretary Jocelyn “Joc-Joc” Bolante diverted agricultural funds to the 2004 electoral campaign of President Arroyo.

    * FG’s alleged multi-million dollar German bank account

    Later that year, then opposition Rep. Alan Peter Cayetano claimed that a member of the Arroyo family maintained a bank account in Germany amounting to hundreds of millions of dollars. First Gentleman Arroyo flew to Germany and secured a certification from the bank to disprove Cayetano’s claims. Upon his return, he sought Cayetano’s expulsion from Congress.

    * FG reportedly tells rival to “back off” from national broadband project

    The testimonies of Jose de Venecia III and Rodolfo Noel Lozada Jr. during the Senate hearings on the national broadband network project linked First Gentleman Arroyo to another multi-million dollar controversy.

    De Venecia III claimed that FG Arroyo told him to “back off” from the project, which eventually went to Chinese firm ZTE Corp. De Venecia III was a majority shareholder of one of the proponents of the NBN project.

    Lozada meanwhile claimed that Comelec Chairman Benjamin Abalos phoned “FG” to discuss the NBN project. Lozada also testified that Abalos, de Venecia III, and the First Gentleman met for dinner around the time that the ZTE execs were following up on the project.

    * FG’s reported ties with construction firm that was blacklisted by the World Bank

    In January 2009, Sen. Panfilo Lacson linked FG Arroyo to a constructor blacklisted by the World Bank.

    Citing entries from an appointments book he claimed belonged to FG Arroyo, Sen. Lacson pointed out that the First Gentleman met with Eduardo de Luna of E. C. de Luna Construction Corp. several times. De Luna, who was debarred by World Bank for collusive practice in a national roads project, said in a Senate hearing that he did meet FG Arroyo a few times but denied that he and FG were close. – GMA News Research/GMANews. TV

  5. Tangnanay na Fat Ganid na iyan! Ang dami nang scam, bakit hindi pa hulihin iyan? Amenado iyong Ermita na private citizen ang animal. Bakit binibigyan ng immunity iyan at saka bakit pinapadaan pa sa Senado ang investigation ng animal?

    Sa amin iyan, sabay iyong pulis at parliament ng pag-imbestiga, iyong pulis ng mga private citizen na involved sa scam at iyong parliament sa mga politiko at public official na kasangkot. Ang bobo naman ng process ng Pilipinas. Bakit hindi binabago iyan?

    Wala bang matapang na pulis na sabihin doon sa mga mokong sa korte na mag-issue ng warrant of arrest para doon sa matabang unggoy?

    Please parang awa na ninyo sa bansa ninyo! Nababoy na ng husto, hind pa natitinag! Nakakangiti pa ang hudas sa totoo lang!

  6. Atleast, ngayon di makapagtago sa Tate ang animal. Kaya ano pa ang hinihintay ng mga kinauukulan at maykapangyarihan? Bakit hindi pa posasan ang kriminal?

  7. Tedanz Tedanz

    Pag yang Baboy na yan nagkamaling pumunta dito sa tate walang dahi-dahilan dadamputin siya at dadamputin ng mga polisya. Wala yang kesa na-open heart surgery siya, baka atakehin siya … alaws yan. Kulungan ang punta niya … itanong na lang niya kay Joc-Joc.
    Bakit hindi pa ilabas lahat ni Lacson ang mga ebidensiya niya … bakit inu-unti unti pa. Kaya wala din akong bilib dito kay Lacson. Yan na kaya yong sinasabi niya noon na pag ipinagpatuloy nila yong pag-iimbestiga sa kanya … siya ay may pasasabugingg balita tungkol sa mga Arroyo? Di ibig sabihin matagal na din pala niyang alam yan.

  8. Tedanz Tedanz

    Malala na talaga ang sakit ng ating Bansa. Hindi ko alam kung bakit nasisikmura pa ng mga tao itong pamilyang Arroyo?

  9. balweg balweg

    Cancer Tedanz kaya ang hirap gamutin? Kailangan ng chemotherapy or any other means to control the spread of bad cells na sumisira sa good cells and if the cancer cells moves to other parts of the body for sure stage 4 na ito.

    Yan ang tunay na sitwasyon ng Pinas, kaya pati ang international communities ay apektado na din sa kawalanghiyaan ng mga kurap sa gobyerno at lahat ng institutions na kakutsaba ng Malacanang.

  10. Iyong muntik-muntikang announcement na envoy si Fatso ni Dorobo napahinto dahil sa ingay ng mga OFW sa Japan, Hong Kong, at Korea. Nauna kami sa Japan kasi dito unang in-announce ni Talandi iyon. Kambiyo agad ang mga animal dahil talagang ipapahiya namin siya. Kaya sinong may sabing walang magagawa ang OFW kung sabay-sabay silang mag-iingay?

    Tangnanay nilang mga bobo sila. Kaya naman ibagsak ang rehimen ni Talandi kung gugustuhin kaya lang nga ang daming nakikinabang doon sa mga nakaw na padulas ng magnanakaw.

    Kapal ng mga mukha! At least, dito sa Japan, and thanks to the Japanese groups helping us, ayaw ibigay ng Japan iyong hinihingi ni Talanding ODA for a project daw sa Mindanao. Galit na galit ang Talandi no doubt about that!

  11. Chit Escudero papalit kay Brenda? No tiwala dapat! Ninang niya si Talandi that’s why! Padrino/Madrino system malakas pa sa Pilipinas kasi!

  12. iwatcher 2010 iwatcher 2010

    puro imbestigasyon wala namang nakukulong sa mga miyembro ng malacanang mafia at arroyo corrupt-poration….

    daming ebidensiya wala namanng aksiyon ang ombudsman, ang DOJ at ang solicitor-general

    daming pagnanakaw sa pera ni juan dela cruz, wala namang ginagawa ang taong bayan…animoy pipi,bulag at bingi at marahil manhid na sa mga isyu ng pagnanakaw ng mga ganid.

    imbes na magrally at sumigaw ng katarungan ay gusto pang nanonood lamang ng teleserye ng kapuso at kapamilya.
    yayain mo sa public protest nagdadalawang isip pa, pero yayain mo sa sale sa shopping mall o sa public concerts ng mga artista walang ayaw sugod agad.

    siguro kasalanan na rin natin,pinabayaan natin lahat ng kagaguhan nila sa bayan at dapat pukawin pa natin ang manhid na kaisipan at paninindigan ng mas maraming juan dela cruz na maging mulat sa isyu ng bansa.

    sa bawat milyon na ninanakaw ng mga ganid at kriminal, ilang libong juan dela cruz ang inaalisan nila ng pag-asa sa buhay na maiahon ang sarili sa kahirapan, ilang bata ang nawawalan ng pagkakataong makapag-aral, ilang pamilya ang nawawalan ng karapatan sa lupa at disenteng tirahan, ilang ofws pa ang kailangan magpasakit upang masagip lamang ang naghihikahos na ekonomiya ng ating bansa.

    samantalang sina arroyo at pamilya, si congressmen, si gov., si senador, si department head, si undersecretaries, si chairman ng mga govt corporations etal…hayun patuloy na yumayaman, patuloy na dumarami ang assets, business interests at investments, patuloy na nagdedeposito sa mga foreign banks ng kanilang mga secret accounts, patuloy ang pag-iipon para sa susunod na eleksiyon…

    paano nila nasisikmura ang panloloko sa bayan?

    maging mapagmatyag lamang tayo, they still pursuing charter change sa kahit paanong paraan para maisalba nila ang kanilang mga sarili beyond 2010. nalalapit na sandali nila sa puwesto at sanay huwag na tayong magpabaya.

    ang huling baraha ni juan dela cruz ay ang 2010 election, we should participate and help to achieve a clean and credible election and get rid the malacanang mafia at arroyo corrupt-poration.

    kilos na bayan! ngayon na!

  13. Papaanong makukulong ang mga walanghiyang iyan e puro appointee nila iyong nasa pulis, prosecutor’s office, DOJ, lower, higher and Supreme Courts. Kasalanan ng mga nag-a-approve at nagko-confirm sa mga iyan. Di dapat sinasahuran ang mga ungas until they are confirmed para hindi sila nakadikit na sa puwesto nila at inaalagaan ang mga kriminal na nag-appoint sa kanila.

    Taumbayan dapat nang magising! Kaso bobo din kasi wala naman silang alam talaga sa palakad ng isang tunay na demokrasya. Ginagago lalo na ang mga mahihirap na nakakarami at halos lahat ay walang pinag-aralan naman.

    Kawawang bansa!

  14. Rudolfo Rudolfo

    Mau-ubos na ang lahat ng “negative” words or evelistic description sa webster dictionary, at salitang tagalog, na panay pag-puna…”bbbccc..sssttt..etc.”.sa mga “taong namumunong” uli-anin,at ganid,balatkayo(ombuds..Hustiya,CAo,PW,Banko) sa bansa, WALA TALAGANG NANGYAYARI !..jUAN DE LA cRUZ, ano ba ang nangyayari sa iyo ???…bug-bug sarado ka na, di ka pa NAGIGISING !!! walang mandaraya sa bayang di napa-dadaya…matindi ang pag-plano ng EDSA-2, sa halip na bumuti, lalong napasama..Kung maaari huwag ng EDSA, itsa pwera na lang, at tu-tuk sa 2010 eliksyon, at huwag paba-yaan..maghanap ng mabuting mga TAO na malinis ang budhi at PUSO ( makaDIYOS-MakaTAO-MakaBayan ), hindi mga “linta” ( halata namang may mga itina-tago. Sa expression ng mga mata, mukha, kilay,pag-kilos at pambubula nila )…the eyes is the window of the soul ( para sa MATABA’T, Malalaki ). Action, speaks louder than words ( mga gestures nila sa senado ). Ang texture ng mukha nila ( karamihan ), texture na mahirap pani-wala-an, may naka-tagong di nagsasabi ng totoo. Patawarin sana sila ng Diyos, at ako’y nag-darasal para sa kanilang pag-babago.Amen.

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