Miriam hits WB, US govt in Senate's bid-rigging hearing

Posted at 02/12/2009 4:12 PM | Updated as of 02/12/2009 9:47 PM

A senator lambasted the United States government for the World Bank's refusal to provide the Philippine Senate a copy of the its purported report that found bid-rigging activities of public officials and contractors in the bidding of a multi-million road project in the country.

"How dare the United States lecture the rest of the world on democracy and not follow the rule of majority, which is basic in any democracy," Santiago said during the Senate economic affairs committee hearing on the alleged bribery in WB-funded projects.

Santiago even came to the point of criticizing America's "unilateral approach," which, she said was instigated by former US president George Bush, in dealing with international laws.

"I hope that the Obama administration will change that attitude," she said.

"They have an attitude problem in America," she added.

The senator was highly frustrated by the World Bank's continued refusal to provide the Seante a copy of the "WB report," which Senate President Juan Ponce Enrile said, "started all this brouhaha."

The report mentioned the alleged involvement of politicians and public officials, including First Gentleman Jose Miguel Arroyo and the late senator Robert Barbers, in the briberies and collusive schemes in the bidding for a $33 million worth of WB-funded road projects in the country.

Santiago attempted last February 2 to get a copy of the report, which, she said could have been the "notice of sanctions proceedings" documents furnished by the WB to contractors who participated in the road project's biddings.

She said WB regional director Bert Hofman simply replied, “We cannot share it with you.”

Hoffman reportedly cited that they could not divulge the identity of their witnesses, who are named in the report.

The senator said she filed a protest and gave Hofman a legal memo, where she said the WB cannot simply snub the Senate’s request under the 1946 convention on the immunities and privileges of specialized agencies.

“We are telling the World Bank, your rule on confidentiality has changed in international law. It would be as if an ordinary law passed by Congress. Thus it (confidentiality) is no longer binding in the Philippines,” she said.

WB official to be subpoenaed

Joining the fray, Enrile demanded Santiago to issue a subpoena against Hofman and make the WB official explain the documents about the supposed bid-rigging activities in the country.

“I suggest that since that this whole brouhaha was started by the World Bank, and they submitted these reports containing so many names, I think it is only fair and incumbent upon that agency – no matter how exultant and sacrosanct and full of immunities as it is – to at least [bring a representative] here and explain what these documents are all about,” the Senate President said.

Santiago, for her part, said she is moving to send a subpoena duces tecum to Hofman and demand an original copy of the WB documents regarding the alleged collusive schemes.

She said she is executing a subpoena, which, Enrile, as Senate President, said he would be willing to sign.

Four reports

Santiago earlier said there was confusion in the various media reports on the "World Bank report". She pointed out there were four reports the bank produced: a referral report, notice of sanctions proceedings, decision of sanctions board, and a redacted report.

The confidential WB investigation report that mentioned the First Gentleman consists of more than 200 pages. It supposedly contains testimonies of some contractors and other people involved in the bidding for a $33 million World Bank-funded road project.

The senator presented at the hearing “excerpts” of the report, which came from Sen. Panfilo Lacson.

She said the validity of the document would have to be agreed upon by senators.

Contractors, including Edward de Luna and former Public Works secretary Florante Soriquez, denied the testimonies mentioned in the supposed WB report.

First Gentleman Jose Miguel Arroyo, who was prevented by his doctor to attend the hearing because of his health condition, denied the allegation through a defense statement presented by his lawyer at the hearing.


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