WB findings scandalous, shocking, says Lacierda

MANILA, Philippines - Malacañang on Wednesday castigated Chief Justice Renato Corona for misusing World Bank funds intended for judicial reforms for out-of-town trips and other unauthorized expenses.

In a statement, Presidential Spokesman Edwin Lacierda said that while Corona and Supreme Court spokesman Jose Midas Marquez plead ignorance, the World Bank aide memoire "is the surest evidence that funds meant for judicial reforms were wasted: and in the process, basic rules of good governance were ignored."

"The findings are as scandalous as they are shocking. The Chief Justice used judicial reform funds as a personal piggy bank to fund travel, gifts, dining and recreation; the Court Administrator who reports directly to the Chief Justice violated basic government rules by being the proponent, approver, and head of bidding for his own proposed expenses and acquisitions," Lacierda said.

The spokesman said he is wondering why Corona would order an investigation when the aide memoire discloses that Corona was fully informed of the adverse findings.

"Accountability is catching up with the Chief Justice and his subordinates who have given the Supreme Court a bad name, and who have shown themselves blind to the cause of reform," he said.

The World Bank confirmed on Tuesday “ineligible expenditures” as contained in an aide memoire in connection with a $21.9 million project intended for judicial reforms.

In a statement, the bank said “the Aide Memoire summarized the findings and recommendations of the mission, pointing out implementation issues that included some ineligible expenditures. The [Judicial Reform Support Project] is scheduled to close on June 30, 2012 and the focus for the remaining period is to bring the project to a closure.”

Out of town trips

The WB report states that instead of being spent fully for reforms in the judiciary, a portion of the $21-million loan was allegedly used for out of town trips of SC magistrates.

On March 18, 2011, Chief Justice Renato Corona and other Supreme Court officials went to the University of Cebu. The aide memoire said it appears that plane fares for some court officials were taken from the loan.

The World Bank is also questioning the travel allowance of 2 court officials, which reached P170,000 or $4,000 each for a 3-day trip to Sydney, Australia.

This is aside from lavish room accommodations and dinners shouldered by the Supreme Court. Corona was appointed chief justice of the Supreme Court in 2010.

The memo also questioned what it believes is the excessive power given by the Supreme Court to its spokesman and administrator Jose Midas Marquez in handling the loan package.

The bank said Marquez, while acting as court administrator, was also chief of the powerful Bids and Awards Committee.

"In four contracts to one firm, this senior court official was also requestor of services, approver of terms of reference, end user, authorizer of contract extensions, authorizer of payments," the memo said. The World Bank pointed out that this has led to questionable decisions on how the fund was managed.

The World Bank is demanding a refund from the Supreme Court for expenses that were not covered by the grant.

Corona denial

Corona has denied involvement in the alleged misuse of the World Bank loan.

He said the alleged misuse of the funds happened more than 10 years ago before he became chief justice.

"Ang iba naman dito ay maipapaliwanag ni Judge Geraldin Econg ng PMO [Program Management Office] na siyang namamahala nito sa mga pondong ito," he said.

Marquez echoed Corona's statement, saying the PMO is preparing the answer to the memo.