MANILA, Philippines – While the head of the judiciary is fighting his battle to keep his post in an impeachment trial, the Senate is poised to investigate the alleged misuse of funds related to a $21.9-million World Bank loan to the Supreme Court (SC).
Sen. Franklin Drilon is set to file a resolution calling for the probe after an aide memoire from the World Bank to the SC containing the results of the review of the project was released and reported by online social news network Rappler.com the other day.
In the aide memoire dated Dec. 28, 2011 sent by World Bank acting country director Matthew Stephens to Associate Justice Teresita Leonardo de Castro, chairperson of the Judicial Reform Support Project (JRSP) management committee, it was noted that there were ineligible expenditures, including those incurred outside the agreed procurement plan.
After its review of the implementation of the JSRP, the World Bank told the Supreme Court to refund a total of $199,900 (P8.7 million) comprising ineligible expenditures.
The World Bank found that 70 out of the 133 transactions made using the loan for the JRSP were ineligible.
Quoting the report, Rappler.com noted that a sizeable amount went to the purchase of computers, including P2 million worth of laptops for the various SC offices.
Even the airfare of SC officials was paid using funds meant for the JSRP.
However, the World Bank stated that some of the information contained in the document has yet to be confirmed.
It also noted that the Project Management Office has started its refund for the ineligible expenditures.
Drilon said the alleged irregularities, if left unchecked, could “prejudice the standing and credit-worthiness” not only of the SC but also of the entire Philippine government before international financial institutions.
In his proposed Senate Resolution No. 674, Drilon said the probe would be conducted by the Senate Oversight Committee on Public Expenditures, which he chairs, to look into the circumstances surrounding the World Bank loan to the SC.
Drilon said the World Bank’s Board of Executive Directors approved the loan on Oct. 2, 2003 to finance the JRSP, which is meant to “support an accessible judicial system that would foster public trust and confidence.”
The total project cost was pegged at $24.4 million, out of which $21.9 million represents the loan from the World Bank and the balance being the counterpart of the Philippine government.
According to the World Bank, the project could not be completed by the original closing date of Dec. 31, 2009 so this was extended by 18 months to June 30, 2011.
However, due to several reasons, the closing date was extended by another 12 months to June 30, 2012.
“There are reports that the World Bank recently rendered an opinion to the effect that since the mid-2010, progress in attaining the development objectives of the JRSP and its implementation have been rated unsatisfactory, with the fiduciary environment pertaining to the project deteriorating to a point that the JRSP has been rated high risk on project management, project procurement and financial management decisions,” Drilon said in his resolution.
“The World Bank allegedly noted that several procurement of goods were undertaken without prior agreement and in some cases, even against the approval of the Bank, resulting in the present situation wherein further expenditures must be undertaken only with the prior agreement of the Bank, in writing, and reflected in the agreed procurement plan,” he added.
Responsible spending
Drilon said the World Bank “reportedly stressed that the lack of appropriate segregation of duties of key Supreme Court officials involved in the project broke the control environment, increased fiduciary and reputational risks and led to irregular or inappropriate procurement and expenditure decisions.”
Among the ineligible expenditures were 16 items related to the Office of the Court Administrator.
“The circumstances, if found true, could prejudice the standing and credit-worthiness not only of the Supreme Court, but the national government as a whole, before such international financial institutions like the World Bank and curtail the inflow of much-needed loans and other monetary assistance,” Drilon said.
He said financial arrangements like the JRSP loan “constitute a future financial drain on the already limited monetary resources at the disposal of the government.”
According to the resolution, there is a need to closely monitor the management and disbursement of such funds and institute improved safeguards in future general appropriation measures to prevent undue dissipation of the already limited government monetary resources.
“The power of the purse as exercised by Congress carries with it the power to institute safeguards to curb wanton and negligent spending on any branch of the government,” Drilon said.
“Whether the funding sources come from taxes or foreign loans, it is the duty of Congress to ensure that every centavo is responsibly spent,” he added.
http://www.philstar.com/Article.aspx?articleId=767979&publicationSubCategoryId=63
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Sotto: Senate probe on SC’s WB loan mess may focus on PNoy ally
Source: GMA News
An ally of President Benigno Aquino III may also be grilled in the Senate’s investigation into the alleged misuse of a $21.9-million World Bank loan intended for a Supreme Court project.
Senate majority leader Vicente Sotto III cited information reaching him indicating the supposed misuse of funds could involve the high court while under Chief Justice Hilario Davide Jr.
“I have read that the one to be investigated is not the present Supreme Court led by Renato Corona but a previous one. At any rate, it would be good to have an investigation to see if it is indeed the court under Davide that must be held accountable,” Sotto said in an interview on dzBB radio.
On the other hand, he said he sees no conflict with the ongoing impeachment trial if the evidence in the loan mess implicates incumbent Chief Justice Renato Corona.
The Senate is to start the impeachment trial of Corona on Monday.
Asked if there would be a conflict between the impeachment trial and the Senate probe, if the evidence in the loan mess points to Corona, he said, “Hindi naman siguro (I don’t think so).”
Davide served as Chief Justice from Nov. 30, 1998 to Dec. 20, 2005. On the other hand, Corona assumed the post on May 17, 2010.
Earlier reports quoted Senate finance committee chairman Franklin Drilon – another Aquino ally – as saying he will file a resolution to probe the WB mess.
The upcoming Senate investigation stemmed from an aide memoire dated Dec. 28, 2011 sent by World Bank acting country director Matthew Stephens to Associate Justice Teresita Leonardo de Castro, chairperson of the Judicial Reform Support Project (JRSP) management committee.
In the aide memoire, the WB noted ineligible expenditures, including those incurred outside the agreed procurement plan.
Also, the WB told the Supreme Court to refund a total of $199,900 (P8.7 million) comprising ineligible expenditures, adding that 70 of the 133 transactions made using the loan for the JRSP were ineligible.
Drilon was quoted as saying the WB’s Board of Executive Directors approved the loan on Oct. 2, 2003 to finance the JRSP, which is meant to “support an accessible judicial system that would foster public trust and confidence.”
The total project cost was pegged at $24.4 million, out of which $21.9 million represents the loan from the WB and the balance being the counterpart of the Philippine government.
According to the World Bank, the project could not be completed by the original closing date of Dec. 31, 2009 so this was extended by 18 months to June 30, 2011.
However, due to several reasons, the closing date was extended by another 12 months to June 30, 2012.
Davide, Corona
Davide had sworn in then Vice President Gloria Arroyo as president in January 2001 to replace then impeached President Joseph Estrada.
After his retirement as Chief Justice, Davide was appointed to other posts under the Arroyo administration but supported then Sen. Benigno Aquino III’s presidential bid in 2010.
His son Hilario III ran for Cebu governor under Aquino’s Liberal Party in 2010 but was defeated.
On the other hand, Corona had been a spokesman and chief of staff of Arroyo when she was president. His assumption of the Chief Justice’s post had been branded by critics as a midnight appointment.
In Malacañang, deputy presidential spokesperson Abigail Valte said the reported irregularities show the need for all government institutions, even those with fiscal autonomy, to be transparent and accountable.
“Ito ang laging sinasabi ni Sec. (Florencio) Abad na kahit may fiscal autonomy ang iba’t ibang sangay ng pamahalaan lahat tayo dapat transparent sa gastos, lalo ito (WB loan) utang at magbabayad ang taongbayan,” she said on government-run dzRB radio.
“Fiscal autonomy is no excuse to disregard proper use of public funds,” she added. — LBG, GMA News
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Marquez says World Bank report premature, unfair
MANILA, Philippines – Supreme Court Spokesman and Court Administrator Jose Midas Marquez said there was no misuse of a loan released by the World Bank.
In a phone interview, Marquez said it was unfair that an aide memoire was released without having the High Court made to answer to the allegations. A receiving party is required to comment on an aide memoire before a final report is made to the public, he said.
He questioned the timing and circumstances behind the release of the aide memoire when the loan was made during the time of Chief Justice Reynato Puno. The incumbent, Chief Justice Renato Corona, will face an impeachment trial Monday.
He refused to comment further since the aide memoire has not even reached his office.
The aide memoire, dated December 28, 2011, said progress in judicial reforms has been slow ever since Corona assumed the position.
The multilateral agency supposedly uncovered incomplete information in the disbursement of a $21.9-million loan for the Judicial Reform Support Project. It tagged the program as “high-risk.”
The same aide memoire questioned the appointment of Marquez as administrator of the fund. It said: “This senior official, due to the combination of his appointments and functions, was the requestor of the services, the approver of the terms of reference, the end-user of the services provided by the firm, the authorizer of contract extensions, and the authorizer of payments to the firm.”
Marquez said he was tasked with such responsibilities because “there are a lot of transactions that need not go through the hands of the chief justice…Should a P5,000 transaction still need to reach the chief justice?”
He said the amount he was made to authorize was initially at P200,000, which was later increased to P500,000. He said an audit team from the Office of the Court Administrator checks on such transactions.
In a separate interview with radio dzRB, Deputy Presidential Spokesperson Abigail Valte said the World Bank report supports the cause of the government, via the Department of Budget and Management, for “transparency…even if there is a so-called fiscal autonomy.”
Marquez did not comment, saying “they don’t know what they’re talking about.”
Meanwhile, Valte asked the public to be vigilant of the impeachment trial against Corona.
“Let’s all be vigilant. We should listen to the proceedings and create our own opinions,” she said.
http://www.abs-cbnnews.com/nation/01/15/12/marquez-says-world-bank-report-premature-unfair
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