We, the Former Senior Government Officials (FSGO), welcome the increasing concern of multilateral institutions such as the World Bank, to ensure a corruption free environment in its lending practices. We recognize and laud the commitment of the World Bank to pursue integrity and good governance in its projects. We are deeply disturbed by the efforts of some government officials and legislators to impugn and malign the efforts undertaken by the Bank to weed out corrupt practices in government.
The investigation undertaken by the Department of Institutional Integrity (INT) of the World Bank in relation to several road projects of the DPWH follows a rigorous and thorough process that determines if there are rules violated by borrowers and their contractors. The World Bank, as a steward of public funds from different governments, ensures that these funds are used judiciously and appropriately.
The World Bank issued the Referral Report to the Philippine government in November 2007. The referral report indicated the summary of the findings of the World Bank investigation identifying the rules and procedures of the World Bank that were violated. It even offered assistance, if requested, in the spirit of partnership in fighting corruption and promoting good governance. The full text of the Referral Report may be seen at http://www.worldbank.org.ph
The Department of Finance, in 2007, passed on the Referral Report to the Office of the Ombudsman, as the Constitutionally mandated authority tasked and funded to conduct investigations on corrupt practices within the government. It thereby became the responsibility of the Office of the Ombudsman to investigate and determine if and what Philippine rules and laws were violated by those involved in the project. We deplore the inaction of the Office of the Ombudsman. The Ombudsman cannot wash her hands off this case because she was given the information more than a year ago. This is clearly an abdication of duty.
The Department of Finance is the direct partner of the World Bank. If it was truly concerned about collusion in a major infrastructure program funded by a loan to the Philippine government it should have been relentless in causing the Ombudsman to act by following up and exerting pressure. We remind Sec. Teves that his inaction in this case is a dereliction of his duty which merits the censure of his peers and of the constituency he is supposed to serve.
The World Bank, despite the seeming lack of interest of the Philippine government, continued its investigation and issued the Notice of Sanctions Proceedings to the firms which were found violating the rules and standards of the World Bank in 2009.
It is our international embarrassment that some Senators and Congressmen have accused the World Bank of possible collusion with the contractors. This is the outrageous practice of the current leadership of this government to accuse those who dare tell the truth of deception. In Cambodia when the INT presented a report to the government on corrupt actions by some ministries, the Royal Government of Cambodia did its own investigation and the Ministries found to have violated the rules by the investigation of the Royal Government of Cambodia returned the funds or paid back the World Bank.
It is the Constitutional duty of the Ombudsman to take decisive action against corrupt practices. Her dismal inaction has been consistently apparent in many previous cases: NBN-ZTE, Bolante, Nani Perez, Euro Generals, Mega Pacific, etc. Some members of FSGO are signatories to resolutions requesting her resignation. When a Constitutional official refuses to do her sworn duty, it does not seem likely that she will have the sensitivity to resign. This is why FSGO members have joined the moves for her impeachment.
Refer to:
Jesus Estanislao
Former Secretary, Department of Finance
Contact number: 09189341038
Vitaliano Nañagas
Former President/Vice Chair, Philippine Deposit Insurance Corporation
Contact number: 09296853840
Cayetano Paderanga
Former Member of the Monetary Board, Bangko Sentral ng Pilipinas
Contact number: 09228533544
For requests for fax or e-copies of this statement, please call the FSGO Secretariat (Johanna de los Reyes) through cell number 09065879490 and landline number 6341334.
