This page contains alleged, adjudged, and confirmed administrative abuses from the Arroyo Presidency that need to be corrected in the Aquino Administration.
MULTIMILLION GRANTS TO FOUNDATIONS, NGOs WITHOUT DOCUMENTATION
8 September 2010, Wednesday---The Commission on Audit unearthed some P447 million worth of financial assistance to 13 foundations and non-government organizations despite their failure to present required documents, including Securities and Exchange Commission (SEC) registration. These are organizations of local government officials and charitable institutions in Pampanga, where she later runs for representative and wins.
ICTSI Foundation. An institution chared by billionaire Enrique Razon, ICTSIF received P100 million in financial assistance "when no vouchers ad supporting documents were submitted," according to the 2009 annual audit report for the Office of the President. It helped Arroyo in funding various projects in Bicol and Pampanga.
Philippine Good Work Foundation. PGWF received P100 million in donations "when no vouchers ad supporting documents were submitted," according to the 2009 annual audit report for the Office of the President. It helped Arroyo in funding various projects in Bicol and Pampanga.
Pampanga Mayor's League received her donation of P7 million. It has no SEC registration.
Board Member League of Pampanga received P5 million donation from Arroyo. It lacked disbursement vouchers.
Federation of Fil-Chinese Chamber of Commerce and Industry received her donation of P70 million.
ABS-CBN Foundation received her P30 million donation.
Philippine Bamboo Foundation received her P25 million donation.
Butil received P10 million donation.
Unang Hakbang Foundation received P25 million of her donation.
Gawin ang Tama Movement received her donation of P25 million.
Resource Enhancement and Cooperation for Habitat received from her P10 million in donations.
Mateo Veinticinco Caritas Foundation received from her P10 million donations. [Sources: Mario B. Casayuran: "143 GOCCs owe Gov't P24 Billion," Manila Bulletin 8 September 2010]
EXCESSIVE "PORK" RELEASE TO CONGRESSIONAL ALLIES
18 August 2010---Before stepping down on June 30, former PGMA managed to release pork barrel funds totalling P 10.61 billion to her allies in Congress. The amount is part of a total of P 30.32 billion that lawmakers had inserted in the 2010 DPWH budget. Subsequently, this DPWH insertion was part of the P 64.4-million reduction in the 2010 debt payment that senators and congressmen made, which they diverted to their pork barrel. This diversed amount was on top of the more than P 23 billion in annual regular pork barrel funds for members of Congress (each senator receives P 200 million annually; each House member, P 70 million). A congressional committee jointly chaired by Sen. Edgardo Angara and former Quirino Rep. Junie Cua.
This action violates her own "conditional veto message," stating "release of the increased items of appropriations is subject to the identification by Congress of new revenue measures in support thereof," that accompanied her approval of the P 1.54-trillion budget early this year. But the releases happened even without the revenue measures priorly identified. Former budget secretary Rolando Andaya Jr. confirmed that there have been releases made out of the lawmakers' budgetary insertions. But he did not answer if Arroyo ordered him to release the money despite the written conditional veto message. He also said that a second condition existed (the first one was the one highlighted in the message): "You can release the money if there are savings or you kill or scrap an equal amount in the agencies' regular appropriations.
The DPWH received the biggest allotment from debt payments (it is in its budget that most congressional insertions were hidden). The Department of Agriculture followed (P3.3 billion). Then the Department of Transportation and Communications (P2.1 billion), Department of Agrarian Reform (P1.3 billion), Department of Environment and Natural Resources (P1.5 billion), and Department of Interior and Local Government (P1.1 billion).
What is noticeable was the five-time jump (from P145 million to P800 million) in the allocation towards the two-year-old Aurora Special Economic Zone Authority (ASEZA) of Angara (its law co-author) in the 2010 budget. Is this one privilege of heading the committee?
Action taken: Budget Secretary Florencio Abad ordered DPWH Secretary Rogelio Singson to recall the amount from the funds for the congressmen-recipients' projects. [Source: Jess Diaz: "Palace recalls P10.6 million in GMA 'pork' releases," The Philippine Star 18 August 2010]
UNREMITTED ILOILO AIRPORT SALE CG TAX
17 August 2010--In 9 October 2007, the Philippine government under former President Gloria Macapagal-Arroyo sold the 544,739-square meter airport in Mandurriao, Iloilo to property giant Megaworld Corporation for P 1.2 billion. The administration paid P 18 million documentary stamp tax on the sale, but Arroyo did not remit the P 72 million capital gains tax she collected. Executive Order 360 (asset disposition program), signed in 2004 by Arroyo and former Executive Secretary Alberto Romulo, governed the sale.
Supposedly the law bans private corporation from acquiring any kind of alienable land of public domain, making the transaction highly illegal. Section 1(1) of Republic Act 7080 (Anti-Plunder Law) provides that nonpayment of P 72 million taxes to national government is a theft of public funds and a crime of plunder through malversation or raids on the public treasury.
This is what Danilo Lihaylihay, president of Philippine Association of Revenue Informers Inc (PARII) and chief investigator of Vanguard Anti-Graft Task Force Inc (VAGTFI), found out in his team's investigation on the sale. VAGTFI is accredited by the Office of the Ombudsman to help the present government address graft and corruption in the revenue service.
Action Taken: Lihaylihay filed a plunder complaint on August 17 against former president Arroyo for failing to remit to government coffers tax collected from the sale of the old Iloilo airport. Also named in the complaint are Alberto Romulo (former executive secretary), Margarito Teves (former finance secretary), John Sevilla (former chairman of the DOF Privatization Council), and Andrew Tan (Megaworld chairman). [Source: "First plunder complaint vs Arroyo filed," abs-cbnNEWS.com 17 August 2010; "Plunder charges filed," Business World 17 August 2010]
Comments: It is not clearly indicated in the report how the property got transferred to Megaworld without any payment of the P 72 million CGT. If BIR let this CGT go without payment, then former offials too might get involved in the complaint.
SLEX CONSUMPTION TAX
13 August 2010--Presidential spokesperson Edwin Lacierda affirmed that the previous Arroyo administration issued two memorandum circulars on the collection of consumption tax on road fees but refused to implement them without offering any explanation.
The decision not to implement these circulars may have been political expediency as the Arroyo administration suffered low popularity during their issuance.
The implementation of value added tax on the SLEX toll by the Aquino administration indicates a mere enforcement, not of a new law, but of a law passed during the Arroyo administration. [Source: Norma Bordadora: "Palace blames Arroyo for Aquino's woes over VAT," Philippine Daily Inquirer 13 August 2010]
MIDNIGHT APPOINTMENTS
8 September 2010, Wednesday---The Commission on Audit unearthed some P447 million worth of financial assistance to 13 foundations and non-government organizations despite their failure to present required documents, including Securities and Exchange Commission (SEC) registration. These are organizations of local government officials and charitable institutions in Pampanga, where she later runs for representative and wins.
ICTSI Foundation. An institution chared by billionaire Enrique Razon, ICTSIF received P100 million in financial assistance "when no vouchers ad supporting documents were submitted," according to the 2009 annual audit report for the Office of the President. It helped Arroyo in funding various projects in Bicol and Pampanga.
Philippine Good Work Foundation. PGWF received P100 million in donations "when no vouchers ad supporting documents were submitted," according to the 2009 annual audit report for the Office of the President. It helped Arroyo in funding various projects in Bicol and Pampanga.
Pampanga Mayor's League received her donation of P7 million. It has no SEC registration.
Board Member League of Pampanga received P5 million donation from Arroyo. It lacked disbursement vouchers.
Federation of Fil-Chinese Chamber of Commerce and Industry received her donation of P70 million.
ABS-CBN Foundation received her P30 million donation.
Philippine Bamboo Foundation received her P25 million donation.
Butil received P10 million donation.
Unang Hakbang Foundation received P25 million of her donation.
Gawin ang Tama Movement received her donation of P25 million.
Resource Enhancement and Cooperation for Habitat received from her P10 million in donations.
Mateo Veinticinco Caritas Foundation received from her P10 million donations. [Sources: Mario B. Casayuran: "143 GOCCs owe Gov't P24 Billion," Manila Bulletin 8 September 2010]
EXCESSIVE "PORK" RELEASE TO CONGRESSIONAL ALLIES
18 August 2010---Before stepping down on June 30, former PGMA managed to release pork barrel funds totalling P 10.61 billion to her allies in Congress. The amount is part of a total of P 30.32 billion that lawmakers had inserted in the 2010 DPWH budget. Subsequently, this DPWH insertion was part of the P 64.4-million reduction in the 2010 debt payment that senators and congressmen made, which they diverted to their pork barrel. This diversed amount was on top of the more than P 23 billion in annual regular pork barrel funds for members of Congress (each senator receives P 200 million annually; each House member, P 70 million). A congressional committee jointly chaired by Sen. Edgardo Angara and former Quirino Rep. Junie Cua.
This action violates her own "conditional veto message," stating "release of the increased items of appropriations is subject to the identification by Congress of new revenue measures in support thereof," that accompanied her approval of the P 1.54-trillion budget early this year. But the releases happened even without the revenue measures priorly identified. Former budget secretary Rolando Andaya Jr. confirmed that there have been releases made out of the lawmakers' budgetary insertions. But he did not answer if Arroyo ordered him to release the money despite the written conditional veto message. He also said that a second condition existed (the first one was the one highlighted in the message): "You can release the money if there are savings or you kill or scrap an equal amount in the agencies' regular appropriations.
The DPWH received the biggest allotment from debt payments (it is in its budget that most congressional insertions were hidden). The Department of Agriculture followed (P3.3 billion). Then the Department of Transportation and Communications (P2.1 billion), Department of Agrarian Reform (P1.3 billion), Department of Environment and Natural Resources (P1.5 billion), and Department of Interior and Local Government (P1.1 billion).
What is noticeable was the five-time jump (from P145 million to P800 million) in the allocation towards the two-year-old Aurora Special Economic Zone Authority (ASEZA) of Angara (its law co-author) in the 2010 budget. Is this one privilege of heading the committee?
Action taken: Budget Secretary Florencio Abad ordered DPWH Secretary Rogelio Singson to recall the amount from the funds for the congressmen-recipients' projects. [Source: Jess Diaz: "Palace recalls P10.6 million in GMA 'pork' releases," The Philippine Star 18 August 2010]
UNREMITTED ILOILO AIRPORT SALE CG TAX
17 August 2010--In 9 October 2007, the Philippine government under former President Gloria Macapagal-Arroyo sold the 544,739-square meter airport in Mandurriao, Iloilo to property giant Megaworld Corporation for P 1.2 billion. The administration paid P 18 million documentary stamp tax on the sale, but Arroyo did not remit the P 72 million capital gains tax she collected. Executive Order 360 (asset disposition program), signed in 2004 by Arroyo and former Executive Secretary Alberto Romulo, governed the sale.
Supposedly the law bans private corporation from acquiring any kind of alienable land of public domain, making the transaction highly illegal. Section 1(1) of Republic Act 7080 (Anti-Plunder Law) provides that nonpayment of P 72 million taxes to national government is a theft of public funds and a crime of plunder through malversation or raids on the public treasury.
This is what Danilo Lihaylihay, president of Philippine Association of Revenue Informers Inc (PARII) and chief investigator of Vanguard Anti-Graft Task Force Inc (VAGTFI), found out in his team's investigation on the sale. VAGTFI is accredited by the Office of the Ombudsman to help the present government address graft and corruption in the revenue service.
Action Taken: Lihaylihay filed a plunder complaint on August 17 against former president Arroyo for failing to remit to government coffers tax collected from the sale of the old Iloilo airport. Also named in the complaint are Alberto Romulo (former executive secretary), Margarito Teves (former finance secretary), John Sevilla (former chairman of the DOF Privatization Council), and Andrew Tan (Megaworld chairman). [Source: "First plunder complaint vs Arroyo filed," abs-cbnNEWS.com 17 August 2010; "Plunder charges filed," Business World 17 August 2010]
Comments: It is not clearly indicated in the report how the property got transferred to Megaworld without any payment of the P 72 million CGT. If BIR let this CGT go without payment, then former offials too might get involved in the complaint.
SLEX CONSUMPTION TAX
13 August 2010--Presidential spokesperson Edwin Lacierda affirmed that the previous Arroyo administration issued two memorandum circulars on the collection of consumption tax on road fees but refused to implement them without offering any explanation.
The decision not to implement these circulars may have been political expediency as the Arroyo administration suffered low popularity during their issuance.
The implementation of value added tax on the SLEX toll by the Aquino administration indicates a mere enforcement, not of a new law, but of a law passed during the Arroyo administration. [Source: Norma Bordadora: "Palace blames Arroyo for Aquino's woes over VAT," Philippine Daily Inquirer 13 August 2010]
MIDNIGHT APPOINTMENTS
4 August 2010--Through Executive Order No. 2, signed 30 July 2010, President Benigno S. Aquino III nullified all appointments made by former president Gloria Macapagal-Arroyo on or after March 11, including those made prior March 11 but took effect thereafter once the office became vacant after March 11, 2010.
Chief Presidential Legal Counsel Eduardo de Mesa estimated some 977 midnight appointees have already vacated their posts but could not give the exact number.
Legal Action: De Mesa clarified that former President Arroyo could not be held liable for the midnight appointments since she enjoyed immunity at that time. All the present administration can do is to nullify her midnight appointments. [Source: Genalyn Kabiling: "Aquino revokes 977 midnight appointments," Manila Bulletin 4 August 2010]
Dismissals: In the Bureau of Customs, four officials (all non-CESO holders) had been ordered to vacate their posts under Customs Personnel Order No. B-205 signed on August 12. They are Jose Ong (deputy commissioner for administration), Edna Barrida (director of financial service division), Nestorio Gualberto (director of the enforcement security service), and Rey Delgado (director of teh customs planning and systems development service). Under the law, appointed government officers must be CESO elegible. [Source: Raymund Antonio: "Four customs officials ordered dismissed," Manila Bulletin 16 August 2010]
Dismissals: In the Bureau of Customs, four officials (all non-CESO holders) had been ordered to vacate their posts under Customs Personnel Order No. B-205 signed on August 12. They are Jose Ong (deputy commissioner for administration), Edna Barrida (director of financial service division), Nestorio Gualberto (director of the enforcement security service), and Rey Delgado (director of teh customs planning and systems development service). Under the law, appointed government officers must be CESO elegible. [Source: Raymund Antonio: "Four customs officials ordered dismissed," Manila Bulletin 16 August 2010]
