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WB witnesses link FG to bid rigging

Update on the hearing this afternoon. Judge Zenaida Laguilles was absent. “Emergency,” the staff said.

Mike Arroyo and his lawyer, Ruy Rondain, were also absent.

We were just curious why Arroyo and Rondain knew that the judge would be absent due to “emergency” while Atty Roque was not informed about it.

Related report on Mike Arroyo:

Mike Arroyo is expected to be at the Makati RTC, branch 143, tomorrow, Feb. 4 at 2 pm in connection with the class suit filed by journalists he had sued for libel.

More on this in the comments section.

by Aries Rufo
Newsbreak/ABS-CBN.com

It was a rude baptism of fire for the Japanese contractor. Right before him, “(They) first discussed bribes. They had a rough approach.” From that meeting, it was impressed on him that “(bribe) money was important to do business in the Philippines.”

This was how the Japanese contractor described his meeting with First Gentleman Miguel “Mike” Arroyo and a former senator to World Bank investigators who looked into alleged collusion and rigging in the Bank’s funded road projects.

On another occasion, the Japanese executive met the former senator and “it had been made clear to him that there would be no business in the Philippines without paying money,” the WB report, as prepared by its Integrity Vice Presidency (INT) unit, noted. He was also told “that money would have to be paid as high up as the president, senior government officials and politicians in order to do any further business in the country.”

The Japanese contractor, however, had no direct contact with the President.

The report further added: “To win a contract, it would also be necessary to pay the head of the bureau and politicians several million yen.”

We obtained parts of the World Bank report but we are not disclosing the name of the Japanese contractor and other witnesses. The Japanese contractor has since left the country.

The Japanese contractor was among those interviewed by the INT in connection with its probe on bid rigging. His firm purportedly participated in two bid packages, which were later confirmed to be false. In fact, the company denied placing any bid and that the signatures of the company president were forged.

It was the only direct testimony in the WB inquiry alluding to the First Gentleman’s possible link to bid rigging controversy that has led to the blacklisting of seven firms and one individual for alleged collusion in WB funded road projects worth $33 million. Three other interviewees gave testimonial evidence that indirectly linked Mr. Arroyo to bid manipulation.

Other witnesses

One of them, a local contractor, said Mr. Arroyo was “behind” Eduardo de Luna, owner and proprietor of E.C. de Luna Construction Corp, one of the blacklisted firms. De Luna, the local contractor said, acts as the intermediary between contractors and politicians for the bid fixing.

This bolsters the allegations of Senator Panfilo Lacson that de Luna had close ties with Mr. Arroyo, as evidenced by de Luna’s frequent visits to the LTA building in Makati where the First Gentleman holds office.

Based on Mr. Arroyo’s appointments book for 2002, which Lacson produced during a Senate inquiry, de Luna met with Mr. Arroyo 17 times. We checked this out (Newsbreak has a copy of the First Gentleman’s 2002 journal) to be accurate.

De Luna said he can only recall meeting the First Gentleman three times. Palace officials have downplayed the allegations as baseless.

Another interviewee, a foreign contractor, said he was told “to form a relationship” with de Luna if he is to bag any project. De Luna, the interviewee was told, has “connections” to Mr. Arroyo.

The interviewee said his predecessor had admitted engaging in “arrangements” with high-ranking government officials and government contractors in bid fixing. “(He) said he is unwilling to participate in such arrangement, and therefore (the firm) has no hope of winning Bank funded contracts,” the WB report noted.

Still, another interviewee, a former government official with personal knowledge of the bidding process in the Department of Public Works and Highways, said de Luna, described as one of the primary “facilitators” in bid manipulation, is “close” to Mr. Arroyo and is known to be his “go-between” in foreign-assisted projects.

In the WB report, the interviewees did not say if Mr. Arroyo received any kickbacks from the rigged projects. Yet, it appeared clear to them that de Luna had the First Gentleman’s backing. It was not clear if the WB sought Mr. Arroyo’s side.

For his part, de Luna said in a statement prepared by his counsel, Libra Law, that the World Bank “denied him the right to a formal hearing.”

Other officials, too

The interviewees also tagged government officials and lawmakers who are on the take but the WB withheld their names in its findings. Aside from E.C de Luna Corp, which was debarred indefinitely, other firms sanctioned were China Road and Bridge Corp (debarred for eight years); China State Construction Corp and China Wu Yi Corp (both debarred for six years); China Geo-Engineering Corp (debarred for five years) and Cavite Ideal International Construction and Development Corp. and CM Pancho Construction Inc (debarred for four years).

Mr. Arroyo has been linked before to alleged anomalous government deals and projects, the last controversy of which was the botched $329 million broadband deal with China’s ZTE.

Mr. Arroyo supposedly demanded kickbacks from the project, which was eventually dropped by the government.

Published inGovernance

38 Comments

  1. MEDIA ADVISORY
    From: CENTER FOR INTERNATIONAL LAW

    The class suit filed by journalists and concerned citizens against First Gentleman Jose Miguel Arroyo will be heard by the Regional Trial Court of Makati City, Branch 143 on Wednesday, 04 February 2009, at 2 o’clock in the afternoon. The hearing will entail the presentation of the special affirmative defenses of the First Gentleman.

    It is expected that the First Gentleman will take the witness stand to substantiate his Special Affirmative Defenses.

    The presentation of Mr. Arroyo’s Special Affirmative Defenses has been scheduled as early as 12 April 2007. However, the said presentation has been reset countless times due to the resort of the First Gentleman to discovery procedures to delay the proceedings in the case.

    “Mr. Arroyo must present evidence in court proving that the journalists have no legal right to sue him for violation of their constitutional right to free expression,” said lawyer Roque. “He has to show up and testify in court.”

    More recently, Judge Zenaida Galapate-Laguilles, presiding Judge of the Makati Regional Trial Court Branch 143 , in an Order dated 09 January 2009, denied the move of Mr. Arroyo to have the case dismissed over the alleged failure of the journalists to comply with the discovery procedures.

    The court ruled that the journalists and concerned citizens have a valid cause of action against the First Gentleman by alleging the impairment of their right to freedom of speech and of the press and at the same time alleging bad faith on the part of Mr. Arroyo. These two elements sufficiently establish, prima facie, the existence of a cause of action, the court stated.

    The Court declared that it “believes that the (journalists and concerned citizens’) specific allegation of “impairment” of their right and bad faith on the part of (Mr. Arroyo), which is a core element in an action for Damages, sufficiently establishes, prima facie, the existence of a cause of action, which simply refers to an act or omission in violation of the legal right of another. “Cause of action” is the delict or wrong by which the right of the plaintiff is violated by the defendant.”

  2. I betcha the Japanese contractor is the same one these crooks had tricked into buying the Philippine patrimony in Kobe that the contractor says he has been defrauded into buying even when there is a SC ruling against such sales of Philippne patrimonies.

    Parang pakonsuelo de bobo para tumahimik iyong Japanese contractor na naloko and will possibly be included in a lawsuit that the Filipinos may someday have the nerve and guts to sue the people involved in this kind of illegal transactions.

    That will be the day as a matter of fact!

  3. Good luck, Ellen and Company! Sabi nga, “May the Force be with you, guys!

  4. Pre-Valentine’s date ng mga journalist at ni Fat Gentlepig. Pati RTC, Branch 143. Labs na labs nila talaga si Taba.

  5. eddfajardo eddfajardo

    Hayop talaga itong si Mike Arroyo, the Godfather of Corruption in the government of his better half. May conscience ba itong mag-asawang ito at mukhang wala sa kanila itong mga ginagawa nila na sirain ang Pilipinas sa buong mundo? Ako’y hiyang-hiya na at gusto ko na talagang itakwil ang pagka-Pilipino ko. Sana naman magising na kayo mga kababayan ko na panahon na para itigil na itong kabuluhan na nangyayari sa atin inang bayan. Mag rally na kayo katulad sa Thailand at i-timing sa pagdating ni Gloria galing dito sa America. Just control the NAIA. Di niyo ba alam pumuslit si Bulilit sa Davos without the knowledge of Secretary Romulo at hito ngayon siya makikipagsiksikan makatabi lang si Obama sa prayer meeting kuno at magpapakuha ng litrato para sabihin sa buong mundo na she was invited and had the chance to speak with Pres. Obama on matters of national importance. Maniniwala pa ba kayo?

  6. bitchevil bitchevil

    From Telecom scam to this WB bid rigging, Mike Pidal’s name has been implicated. But, did anything happen? Not even appearing in any hearing or investigation.

  7. Gabriela Gabriela

    Wala bang pwede magbato ng sapatos sa super kurap na yan bukas?

  8. be, actually umattend naman. First yung sa Jose Pidal hearing sa Senate. Pangalawa yung hearing sa Batasan kung saan sabay-sabay nahuli ng kamera na nagmura ng “putang-ina” yung mag-aamang sina kabayo, pato, at baboy.

  9. bitchevil bitchevil

    He did attend at the Pidal hearing, but he invoked his right to privacy. And then, his brother Iggy admitted he was Mike Pidal. Since then, no lawmaker dares to call FG again to any hearing.

  10. bitchevil bitchevil

    While Malacanang and government criminals remain to be free, witnesses and whistle blowers continue to suffer. Please read:

    One year after he survived abduction by a government team, Rodolfo “Jun” Lozada Jr., a star witness in the aborted $330-million national broadband project, finds himself in a curious situation.

    He is in danger of being thrown to jail on charges of perjury and graft filed against him by persons involved in his kidnapping. At the same time, he is also being sent feelers, purportedly from Malacañang, promising him hefty compensation in exchange for a retraction of all that he has said regarding the planned project with the Chinese firm, ZTE Corp. and a public apology to President Gloria Arroyo.

  11. Isagani Isagani

    Lusot na naman si FG Arroyo sa kasong yan. Ano ba ibig sabihin ng FG, Fat Guy? Marahil ito ang tunay na titolo niya dahil napaka dulas, tulad ng mantika ng pawis na baboy.

  12. azcarraga_times azcarraga_times

    fatso can be held liable for Corruption of Public Officials. Machinations in a Public Biddings. etc. dapat jan ifiring squad. this guy just wont stop stealing. while our people continue suffering. when will justice reign? i’m not optimistic about the coming elections, i bet the gang of theives will just get away, just like the previous administrations. any presidentiable that will allow them to get away with their crimes will automatically be blotted out.

  13. bitchevil bitchevil

    Crimes of Fat Guy and the Evil Bitch can only pursued after 2010 if they step down, and the next President comes from the opposition. In the meantime, we can only scratch our balls.

  14. rose rose

    saan ba gaganapin yong prayer meeting ng mga lawmakers dito sa US who invited the law breaker of the Phil.? kailan? sana mag dasal din ang mga Pilipino sa harap ng kanilang pagdasalan..please advise kung mayroon…
    is Obama attending the prayer meeting as well? kung magkita man sila ni lawbreaker of the Phil. sana pagsabihan niya pero kung naniwala siya na si putot ay corrupt dapat
    patunayan niya ang sinabi niya sa inaugural speech niya..we will see who the real barack obama is…

  15. bitchevil bitchevil

    Prayer meeting with Obama? That would make the Evil Bitch grow an inch taller. But I doubt it. It could be just a Malacanang propaganda. If ever such a meeting occurs, I’m sure the US only wants something from RP and needs her committment. It’s simply like this: “If you want to stay until 2010 and even beyond, we want this and that…”

  16. balweg balweg

    RE: Prayer meeting with Obama? Para matapos ang kanyang nakaw na termino or bolahin si Obama para makikilan…BE!

    Yon ngang prayers ng mga kakutsaba niyang Obospo at Kaparian eh di effective, si Obama pa? Pogi point ito kay Obama kasi nga alam buong mundo na itong si gloria e pinakakurap na presidente kaya isang sulbato lamang ni Obama bahag na buntot niyan. Wika nga, tameme kasi di siya pwedeng humirit dahil bokya na…so para yang isang tutang ulol na pwedeng ikahon anytime ni Obama.

    Opppsss, Folks…matanong ko nga kayo ng masinsinan, nakakita na ba kayo ng isang tuta na nauulol? Kundi pa, e look around at yon na nga!

  17. bitchevil bitchevil

    Obama is over 6 feet. The Evil Bitch is under 4 feet. Guess what? She doesn’t need to kneel down…

  18. bitchevil bitchevil

    Excuse me…The Bitch is under 5 feet (unless you believe she’s under 4 feet).

  19. rose rose

    putot is 4’11 kaya when Obama and she meet and they hug it will be a smack right in the middle..at kabit tuko o linta..

  20. parasabayan parasabayan

    Good luck on your hearing Ellen!

  21. parasabayan parasabayan

    The fat guy will get away all the time coz the putot knows how to silence the witnesses with money and a higher position. Or even worse, the putot and her fatso will just threaten the witness and their families to stop them from telling the truth. This is going on and on and no one seem to know how to stop it! It is a mafia syndicate at its best! This duo will spend all they can to annoint the next president so they can continue to do their wicked ways. Tabako style!

  22. Elvira Elvira

    You can link this Fat Pig to all kinds of links in this world, but you would never pin him down! UNLESS…his “putotin” is kicked out, then and only then …

    For the meantime, let us all pray:

    “Please naman Lord, hear our prayer: KUNIN Mo na sila…SOONEST!!!

  23. parasabayan parasabayan

    Motorcycle bandits are also in abundance so if the prior perks do not work, “kaput” ang witness!

  24. eddfajardo: May conscience ba itong mag-asawang ito at mukhang wala sa kanila itong mga ginagawa nila na sirain ang Pilipinas sa buong mundo?
    *****

    Nakakatawa ka naman, Edd. Alam mo na ngang wala tinatanong mo pa. Yup, sagot sa tanong mo, friend ay WALA! Pero bilib ka sa baboy kung umarte. Akala mo inosente ang unggoy kung mag-pose sa mga litrato nila noong unano. And boy, ipinagmamalaki pa ang pagbabasa daw niya ng Biblia! Who knows baka version ni Satanas ang Bible niya?

    Pero tama iyong uncle ng kaibigan ko na nagtapat sa amin na ang modus operandi ni Fatso mag-alok ng mga government projects daw kuno sa mga governors, mayors, tongressmen at senatong na makakasabwat nila sa kanilang mga scum para makakuha ng mga ODA kung saan niya uutusang pumunta iyong asawa niyang estupida. Kasabwat pa siguro iyong mga nasa Department of Finance at Audit Office ng Pilipinas kaya nakakalusot ang animal. Laki na ng ninakaw ng mga animal sa totoo lang.

    May isang dam nga kuno sa Mindanao ang inaasikaso ni Siason na mabigyan ng ODA ng Japan, pero adamant ang mga opisyal namin dito na huwag pagbigyan lalo na’t may guerra pa doon. Akala kasi ng mga magnanakaw palagi silang makakalamang. Kulang kasi siguro iyong pangsuhol nila doon sa mga kurakot ng Mindanao para tulungan silang maging permanente na sa Malacanang gaya noong bumugbog sa tatay at kapatid noong golfer.

    Kawawang bansa!

  25. Amen, Elvie! Hallelujah pa!

  26. rose rose

    Elvie: Amen to your prayers..

  27. cmgbx777 cmgbx777

    Pasensya na,nais ko lang maliwanagan. Narinig ko kasi kay Mr.Arnold Clavio sa Dzbb na si Mr. Dela Paz, yung golfer,
    humihingi ng 5M kay Pangandaman to drop all the cases filed against him and his mayor son. Totoo kaya?

  28. dandaw dandaw

    Do you still believe in those court trials in the Philippines when the justices are as corrupt as the administration? I hope and pray the journalists win.

  29. bitchevil bitchevil

    I also hope and pray the Democrats win.

  30. norpil norpil

    di ba nanalo na ang democrats?

  31. Chabeli Chabeli

    Someone whispered to me that COASTAL ROAD CORP is also one of the companies that FG is involved in. It is headed by an FG crony who lost $50M US in Lehman Brothers.

    Does FG have to take a sh*t in every nook & cranny in the Philippines ??????

  32. Update on the hearing this afternoon. Judge Zenaida laguilles was absent. “Emergency,” the staff said.

    Mike Arroyo and his lawyer, Ruy Rondain, did not show up. A young lawyer from Rondain’s, Atty. Vanessa Gonzalez, showed up.

    It was agreed by Gonzalez and the jounrnalists’ lawyer, Harry Roque, that the next hearing would be on March 11, 2 pm.

    We were just curious why Arroyo and Rondain knew that the judge would be absent due to “emergency” while Atty Roque was not informed about it.

  33. “We were just curious why Arroyo and Rondain knew that the judge would be absent due to “emergency” while Atty Roque was not informed about it.”

    I wouldn’t be surprised to learn that Arroyo had something to do with the emergency thingy of Zenaida — Philippine courts are as corrupt as DPWH in Pinas.

    Heheheh!

  34. Philippines has no capital or liquidity to fund its own projects. It has to borrow money. When banks loan money to any government such as Philippines, the bank can be at risk of losing the principal and interest to be made for profit if Philippines cannot pay back in the future.

    Knowledge of the fact that Philippines is one of the number one corrupt country in Asia is not an excuse for deregulation. When bank loan money to a corrupt country, the debt can become odious debt.

    This is the main reason why world bank must regulate and impose a strict liability provision.

    In international Law, odious debt is a legal theory which holds that the national debt incurred by a REGIME for purposes that do not serve the best interests of the nation should NOT BE ENFORCEABLE. Such debts are thus considered by international doctrine to be PERSONAL DEBTS of the regime that are incurred by THEM and NOT DEBTS of the STATE.

    “When a despotic regime contracts a debt, not for the needs or in the interests of the state, but rather to strengthen itself, to suppress a popular insurrection, etc, this debt is odious for the people of the entire state. THIS DEBT DOES NOT BIND THE NATION; it is a debt of the regime, a personal debt contracted by the ruler, and consequently it falls with the demise of the regime. The reason why these odious debts cannot attach to the territory of the state is that they DO NOT FULFILL one of the conditions determining the lawfulness of State debts, namely that State debts must be incurred, and the proceeds used, for the needs and in the interests of the State. Odious debts, contracted and utilized for purposes which, to the lenders’ knowledge, are contrary to the needs and the interests of the nation, are not binding on the nation – when it succeeds in overthrowing the government that contracted them – unless the debt is within the limits of real advantages that these debts might have afforded. THE LENDERS have committed a hostile act against the people, they cannot expect a nation which has freed itself of a despotic regime to assume these odious debts, which are the personal debts of the ruler.

    Remember Marcos debts? the people are not responsible to pay for it. Imagine if our country will not pay world bank because it was an illegal debt?

    I am hoping that the people of this country will now understand why World bank are strict in their dealings. Any banks can lose their money if a borrower such as Gloria Arroyo is using the money not for the benefit of the people. It will become her ONLY debt and the people will have to get this money baCk from a swiss bank… 🙂

    Cory, Ramos and Estrada can be as guilty as Arroyo. During their terms, there was no exposure at all because WORLD banks and other banks were weak in their own regulation. It is just in the past 10 years that banks are required to know who is who.

    Again, knowing and willing to lend money to a corrupt country is a liability to the banks.

    siguro sumakit na ang ulo ni arroyo kung saan mangungutang. 🙂

  35. dandaw dandaw

    Bitch,

    I know that you always want to strike at me. You said that you are smarter than me. As a smart man have you figured out how to get your democrat head out of your ass?

  36. bitchevil bitchevil

    I don’t care as long as your nose is on my ass.

  37. dandaw dandaw

    Evil,
    Alam kong masyado kang frustrated. Hangang dyan ka nalang sa blog at hindi mo maabot si Gloria.
    Kawawa ka naman. Ambisyuso pa naman. Sana kong hindi ka sirang ulo padalhan kita nang pira para mag kandidato ka. Para kasabay mo si gloria at si miguel na naingitan mo. Wag ka sana maginsulto sa hindi mo kilala. There’s no way I’ll get close to you because I live here in Paradise and you live maybe where most of the kurakot slums of Manila are. Even if you live in Forbes Park its still Manila. Get it?

  38. bitchevil bitchevil

    Change We Can, says Obama. Change We Can’t, say Bush and McCain.

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