FG lawyer: Mr. Arroyo has never met a Japanese contractor

Posted at 02/03/2009 3:09 PM | Updated as of 02/03/2009 3:11 PM

First Gentleman Jose Miguel Arroyo's lawyer Ruy Rondain has denied allegations made in a World Bank (WB) investigation report, published in an article on abs-cbnNEWS.com/Newsbreak, about an unidentified Japanese contractor as having discussed with Mr. Arroyo the need to bribe high-ranking government officials to get business deals in the Philippines.

In an interview Tuesday over ANC's On the Scene, Rondain said Mr. Arroyo has never met and discussed bribery with any Japanese contractor.

"No, he has never met with any Japanese contractor," he said when asked to comment on the article.

Rondain said the abs-cbnNEWS.com/Newsbreak report, which is based on a WB investigation, has "no evidentiary value" since the Japanese contractor is "not only nameless" but is "also faceless."

He challenged the contractor to come out and testify on the record.

According to the WB investigation report, which looked into alleged collusion and rigging in WB-funded road projects, the Japanese contractor and Mr. Arroyo met and "discussed bribes." From that meeting, it was impressed on him that "(bribe) money was important to do business in the Philippines."

The World Bank report was prepared by its Integrity Vice Presidency (INT) unit.

The report said the Japanese executive also met a former senator and "it had been made clear to him that there would be no business in the Philippines without paying money."

The Japanese was also told that “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.”

abs-cbnNEWS.com/Newsbreak 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. -- with a report from ARIES RUFO, abs-cbnNEWS.com/Newsbreak
 


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