General Garcia Won an Ombudsman Deal

Former Ombudsman Simeon Marcelo suggested to PNoy to intervene and move to nullify the deal that Retired Major General Carlos Garcia obtained with the Ombudsman to plea guilty to lesser charges of direct bribery and money laundering before the Sandiganbayan in exchange with walking away from the non-bailable case of plunder charges over the P303.27 million he stole from the government when he was military comptroller assigned to Camp Crame. In the deal, he agreed to return a portion of the money. He walked out free from jail on 17 December 2010 after posting a P60,000 bail. Special prosecutor Wendell Sulit defended the deal as it will allow the government "immediate control of Garcia's assets and save the state from a long legal process," TJ Burgonio of Philippine Daily Inquirer reported.

This is a tragic blow to the fight against graft and corruption. And if the Ombudsman proves to have shady motives behind this deal, the Philippine judicial system and the interest of the Filipino people will be in serious trouble.

Philippines Gets White in OECD List

The Organization for Economic Cooperation and Development (OECD) placed the Philippines in its "white list" as Department of Finance passed regulations allowing a swap of bank information between counterpart banks in keeping with the international convention on tax standards. Countries in the list are those who have substantially implemented these tax standards. Based in Parish, France, OECD was founded in 1961, and currently has 33 member countries, which the country is still not among them. Among Asian countries, only Japan and Korea so far qualified for membership. [Related Reports: Agence France-Presse: "Philippine targets cheats' offshore bank accounts," msn News 30 September 2010]  

Philippines Receives MCC $434-M Grant

On 24 September 2010 (Friday), Philippine Finance Secretary Cesar Purisima and MCC CEO Daniel Yohannes signed the $434 million Republic of the Philippines-Millenium Challenge Corporation (GRP-MCC) Compact at the Waldorf Astoria Hotel. PNoy renewed his commitment against corruption and US Secretary of State Hillary Clinton praised Filipino hardwork and bounced off the sentiments of Filipinos working in the US against the control of Filipino "elite in business and politics that basically call the shots," providing "not much room for someone who's hardworking, but not connected." (See Worldwide Recognitions page.) 

Truth Commission Begins Mandate

The Philippine Truth Commission, chaired by retured SC Chief Justice Hilario Davide Jr. will proceed to follow their appointed mission on Wednesday, 15 September 2010, despite ongoing debate in the Supreme Court for PTC's constitutionality. [Source: Edu Punay, Aurea Calica, Jose Rodel Clapano, Delon Porcalla: "Supreme Court asks Palace to hold implementation of EO 1" The Philippine Star 14 September 2010] 

Philippine GOCCs Has Huge Share of the National Debt

The Senate Development Budget Coordinating Committee took a dose of shock on 13 September 2010 when it learned that 43 percent of the Philippine national debt came from the Government Owned and Controlled Corporations. Known for their "very generous" pay and incentives, that could come as no surprise, after all. [See GOCCs/GFIs page for details.]

GOCC: PSALM Failed to Use Sold Assets for Napocor Debt Payment

The House Committee on Appropriations uncovered that the Power Sector Assets and Liabilities Management Corporation (PSALM), the GOCC tasked in to undertake the privatization of the Napocor assets and pay off its debts, paid only a total of $4 billion, despite $10.65 billion privatizaton proceeds, loans of $2.2 billion in 2009, and P30 billion loan in 2010. [See GOC Corporation/GF Institutions page for details.]

Philippines Cofounds International Anti-Corruption Academy

On 2 September 2010, Ambassador (to Austria and to the International Organizations in Vienna) Lourdes Yparraguirre signed the agreement that to create the first international anti-corruption institution, the International Anti-Corruption Academy. The IACA will be based in Laxenburg in Lower Austria. Its launching happened the following day in Vienna. It will offer programs tailored for policy makers and professionals. [Source: Pia Lee-Brago: "RP becomes founding member of first International Anti-Corruption Academy," The Philippine Star 12 September 2010]

Arroyo's P447 Million in Donation Spree

Former President Gloria Macapagal-Arroyo spent P447 million in donations to 13 foundations and non-government organizations, resulting to P594 million in unliquidated cash advances in 2009 alone. Her government was writing checks for private organizations using government funds, instead of channelling these financial resources in related government programs. [See Executive Abuses page]

DILG-PNP: Six Active Generals Suspended

The Office of the Ombudsman suspended six police officers still in active service and six other already retired from service. [See Other Departments page]

DENR: Datu Lami Mama Sentenced for Malversing Fees and Charges

The Sandiganbayan convicted former DENR ARMM assistant secretary for operations for self-appropriating P44.532-million worth of environmental fees and other forest charges. [See Other Departments for more details.]

DAR: Saiki Sarip Sentenced for Malversing Employee Pay

The Sandiganbayan sentenced former DAR ARMM PARO acting cashier Saiki Sarip for misappropriating P2.272 million worth of employee salaries. [See Other Departments for details.]

Two Commissions Under the Office of the Previous President Decommissioned

The Presidential Anti-Smuggling Group (PASG) as well as the Presidential Anti-Graft Commission (PAGC) received no allocation from the 2011 National Expenditure Program, effectively decommissioning them. [See Other Departments and Commissions for details.]

BIR: Macario Gaw Jr. Charged of Willful Tax Evasion

The Bureau of Internal Revenue filed willful tax evasion cases against billionaire Macario Lim Gaw Jr. of Corinthian Gardens Subdivision in Quezon City for attempting to hide and failure to pay income tax amounting to P5.5 billion on sold 10 lots in 2007 and 2008. [See Internal Revenue page for details.]

DepEd: Noodle Scam Under Investigation

The Office of the Ombudsman started reviewing the liability of DepEd officials of the previous administration on the renowned "Noodles Scam" in connection with two feeding programs of the Department--The Food For School Program and the Low Performing Schools Breakfast Feeding Program. Six DepEd former officials are under investigation together with six employees of Jeverps Manufacturing Corporation. [See Other Departments page for more details.]

No Gag Order for Aquino Cabinet and non-Cabinet officials

Communications and Strategic Planning Secretary Ricky Carandang assured lawmakers that no gag order will ever be given to Aquino Cabinet and non-Cabinet rank officials. [See Dismantling Traditional Politics page.]

P10.6 Billion 'Pork' Releases in DPWH Recalled

DPWH Secretary Rogelio Singson ordered his people to recally the funds for congressmen-recipients' projects. Despite not having new revenue support, the P10.6 billion 'pork' insertion for allies in the 2010 budget had been released before PGMA step down from office on June 30. This amount was part of the 'pork' augmentation (that is, beyond the lawmakers' regular annual allotment) that had been inserted in the 2010 budget, coming from the allotment for debt payment but divertied into congressional 'pork barrels." The total diverted amount reached P64.6 billion. [See Executive Abuses page]

"Double Compensation" in LWUA

An employee of LWUA reveals that chairman Prospero Pichay receives around P 450,000 in monthly perks alone, plus P 2.5 million in intelligence funds. [See GOC Corporations page]

First Plunder Case vs. Arroyo: Unremitted CGT on Government Airport Sale

An Ombudsman accredited revenue informer senior investigator filed a plunder complaint against former President GMA for failing to remit CGT to the government on the sale of government-owned airport land in Mandurriao, Iloilo in 2007. [See Executive Abuses page.]

ICTJ Affirms Constitutional Basis for EO1

A senior associate from the New York-based International Center for Transitional Justice (ICTJ) confirmed that there is constituional basis for creating the Truth Commission headed by former SC Chief Justice Hilario Davide Jr. through Executive Order No. 1. [See Worldwide Recognitions page.]

Senator Santiago Lauds Appointment of Sereno to SC

Senator Miriam Defensor-Santiago lauded President Aquino in his appointment of Ma. Lourdes Aranal-Sereno as the newest member of the Supreme Court, replacing retired chief justice Renato Corona as an SC justice. [See Praises from Critics page.]

DPWH Dismantled Billboards with Politicians' Names

DPWH Secretary Rogelio Singson started imposing the ban on the practice of putting the names or pictures of politicians on DPWH project signages. [See Dismantling Traditional Politics page.]

MWSS Ordered Return of P8.7-Million Illegal Perks

The Commission on Audit ordered MWSS to return to government a total of P 8,762,948.31 in financial benefits that the MWSS board of trustees approved in 2000 because of lack of approval from the Office of the President. [See GOC Corporations page.]

Corruption-Ridden CAS Purged

Customs Commissioner Angelito Alvarez abolished the corruption-ridden Customs Accreditation Secretariat (CAS), and replaced it with the Interim Customs Accreditation and Registration (ICARE) to clean up the registry list and ensure that new registrants qualify from the fundamental requirements. [See Customs page.]

Grand C Graphics Charged for Not Paying 90 Returns Filed Electronically

The BIR charged Grand C Graphics president Gloria dela Cruz and treasurer Deborah Cing for not paying 90 withheld taxes filed electronically. [See Internal Revenue page.]

China Philippines Charged for Using Parent Tax Credit

The BIR charged officials of the China State Philippines Construction Engineering Corp. for not paying P712.74 million in taxes from 2003 and 2006 when it used the tax credit certificate issued to its parent China State Construction Corporation Limited. [See Internal Revenue page.]

DILG Orders Policitians' Names Removed

DILG Secretary Jesse Robredo ordered the removal of the names of politicians, including his and that of the President, from government projects and billboards, including vehicles. [See Dismantling Traditional Politics page.]

VAT on SLEX Tool Fee, Arroyo Law

Malacañang affirmed that the bases for their enforcement of VAT on SLEX Tool Fee came from two Revenue Memorandum Circulars seeking the imposition of consumption tax, passed and signed by former president Gloria Macapagal-Arroyo. These laws however did not see implementation in the previous administration for political expediency, in order not to worsen her popularity among Filipinos. [See Executive Abuses page.]

Smuggling Cases Filed Against Plum Blossom and Full Story

Customs Commissioner Alvarez filed smuggling cases against the board of directors of Plum Blossom and the proprietor of Full Story for the import of white rice claimed as mung beans. This is the second case the Bureau filed on smuggling after it filed in July 22 complaints against Gold Mind and Quick Flo proprietors. (Please check the Customs page.)

MCC Affirmation with $434 Million Grant

Millenium Challenge Corporation (MCC) CEO Daniel Yohannes confirmed that the MCC Board headed by State Secretary Hillary Clinton agreed to unlock the $434 million grant to help the Philippines fight poverty and corrption. (Please check the Worldwide Recognition page.)

Midnight Appointments

EO 2 nullified at least 977 midnight appointments from the Arroyo presidency. Chief Presidential Legal Counsel Eduardo de Mesa said that Arroyo cannot be held liable because of presidential immunity at the time of making those appointments. (Check Executive Abuse page)

Two Tax Evasion Cases Filed

The BIR under Kim Jacinto-Henares has filed two cases of tax evasion against DSM Construction and Development Corporation and Villarica Pawnshop. (Visit Internal Revenue page for details.)

P17B in Excess Funds Taken Off DPWH

DPWH Secretary had P17B in excess funds from unnecessary projects returned to the Philippine coffers. (Visit Public Works & Highways page for details.)

The BSF Case

The Office of the Ombudsman ordered a six-month preventive suspension of six officials in connection with the botched BSF deal. (See Elections page)