Commission on Audit bombshell

Today’s movie quote comes from the film, Casablanca:

Rick: How can you close me up? On what grounds?
Captain Renault: I’m shocked, shocked to find that gambling is going on in here!
[a croupier hands Renault a pile of money]
Croupier: Your winnings, sir.
Captain Renault: [sotto voce] Oh, thank you very much.
[aloud]
Captain Renault: Everybody out at once!

And so, shocked, shocked was she to find that bribery is going on in here! That an ‘Upset’ Arroyo orders probe of Palace ‘bribery’.

The problem is, that the Palace’s own allies are compounding the problem. If the There’s the Hamlet-like agonizing of Rep. Antonio Cuenco – Arroyo ally torn between telling truth, hurting her– isn’t bad enough, then there’s this: Arroyo present during cash distribution–Manila solon although in a major clarification to a major error, it turns out (CORRECTED) Arroyo wasn’t present, says Manila solon:

full statement of the Philippine Daily Inquirer, parent company and one of the content providers of INQUIRER.net, follows:

“The Philippine Daily Inquirer deeply regrets that it inadvertently reported in today’s issue that Rep. Bienvenido Abante said President Macapagal-Arroyo was present during the distribution of cash handouts to politicians last Thursday. Abante had actually said the President was not present.

“The Inquirer sincerely apologizes for the error.

“We are looking into the matter to ensure that no similar errors occur in the future.”

Even Ramos denies giving gifts to Atienza, solons and the Inquirer editorial says these recent revelations act as indirect confirmation of past testimony. The whole thing’s so squalid that poor Bong Austero has to point out,

I am not saying that what happened last week was justifiable. I am not saying we should condone it. All I am saying is that there is context around it. This culture of political patronage has been around for quite some time and will continue to be around for as long as voters continue to hound their elected leaders for all kinds of assistance.

What made what happened last week galling was the brazenness and shamelessness of it all. In short, bastusan at garapalan na talaga.

Which may be why up-to-now loyal allies of the President are beginning to publicly discuss whether to spill the beans or not (like Cuenco). This can only send the Speaker’s sensitive political antennae quivering. Newsstand is far more inclined to caution than I am, and yet he has begun to wonder,

Now, on dzMM’s TeleRadyo, I see Speaker de Venecia announcing that, as he had promised last night, he had written an appeal to President Arroyo, calling on her to start a “moral revolution.” She can start, he said, by firing some of her Cabinet members.

This, it seems to me, could very well be the signal to start (open) hostilities.

What does this mean? It means, just possibly, that JDV has seen the same thing as the opposition leader did, and has decided to go down fighting.

See De Venecia calls on Arroyo to set up new administration.

I can’t help but recall, as I recently recalled in Jose De Venecia’s Last Stand (essentially reprinting my August 29, 2005 Inquirer column, which, unfortunately, is no longer available on line), that the possibility, even probability, of a parting of ways between the Speaker and the President was something I saw coming even back then, and was of course trying to encourage. A paper published in 2006, Constitutional Reform in the Philippines: Out of Crisis, What? by Joel Rocamora very kindly quoted a portion of my column:

In the great division of our people that took place in recent months, it was the speaker who put foot soldiers, so to speak, at the command of former President Ramos when he decided to support the president. In truth, what Ramos possessed at the time was an impeccable sense of timing, and a residual prestige. It would depend on the speaker, however, to hold the line, and man the trenches in what has become a political battle of attrition, with loyal troops and efficient lieutenants.

But the I-told-you-so part I’d like to point out is this:

In fighting for her political life, the president nailed not hers, but Ramos’ and De Venecia’s colors to the mast, and proceeded to continue sailing the ship in the direction of enemy fire. Furthermore, she has tied both Ramos and the speaker to the mast, which means it is they who are getting shot at, while the president continues to command the show from the comfort of her cabin.

While Ramos has already done all he can do – you can only throw your support behind someone once — the speaker is still being called upon to marshal the troops in the House, and for what? Whatever their view about the president, the majority of the public wants the impeachment process to continue. The speaker might have been able to justify fighting “creeping impeachment” by “stealthily railroading” the throwing out of the impeachment, but the unpopularity both of himself and his parliamentary cause would only be worth it if the president did her part by gambling big on achieving constitutional change. She has done the opposite: She has gambled small, and it may be her real bet is on herself.

And at the end of the day, perhaps he’s taken heart from realizing (see De Venecia can only be replaced if he agrees–solon: Speakership only for Lakas, he says) that even at the age of 70, he could just possibly get a new lease on political life if he remains the party chief. At a time when his party has begun to publicly fret about its association with the President.

But this, I think, will be the story primed to hog the headlines over the next few days: Palace misused charity funds, gave loans sans records – COA. The report details the findings of a Commission on Audit annual audit of the Office of the President.

In particular, this section of this story:

In 2006, COA said the Office of the President received “from various sources” donations totaling P65,413,463.79 or P65 million, for the following purposes:

‘ Donation for the Southern Leyte landslide, P7.1 million
‘ Donation for Socio-Economic Projects of the President, P35.6 million
‘ Donation for Typhoon Milenyo victims, P2.7 million
‘ Donation for the relief and rehabilitation of affected areas in Albay province, P20 million.

COA’s adverse finding follows: “We noted, however, that out of the actual expenses incurred totaling P64,079,173.40 from the donations, expenses totaling P8,807.621.75 could not be identified with any of the purposes of the donations.”

According to COA, Malacanang had reported using the donations thus:

‘ Burial expenses, P795,000
‘ Hotel Expenses, P815,380.15
‘ Maintenance of the Malacanang Golf Course, P900,000
‘ Summit Conferences/General Assembly, P2,295,241.60
‘ Donation to Foundation, P4,000,000

These expenses “out of the purposes of the donations are contrary to Section 13 of the General Provisions of the General Appropriations Act of 2005,” which stipulates that “donations, whether in cash or kind, shall be deemed automatically appropriated for the purpose specified by the donor.”

The golf course and unnamed foundation donations in particular, are primed for heavy political play. The full report can be found online, supposedly, at the Commission on Audit website but when I tried going there, it was under construction. A source familiar with government accounting practices sent me a cautionary note, however:

Just a word of caution on interpreting the findings, it is common practice among government agencies that the findings are first discussed with management before they are actually published. These findings are therefore expected by government. Also, COA can only recommend and most of the time their recommendations are not followed.

Uniffors reports on the rumor mill.

Meanwhile, Senators revive call on Gloria to resign: a case of jumping the gun? What surprises me is that Senator Pangilinan has taken the lead in an issue. And Bypassed Cabinet members reappointed. Tick tock for the armed forces brass: High Court gives CA green light to require disclosure of Burgos report.

This article should be required reading for Filipinos in the IT sector: India’s IT Sector Needs to Reboot.

Part 1 and Part 2 of my column for this week, were on Mabini’s independence blueprint.

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Manuel L. Quezon III.

282 thoughts on “Commission on Audit bombshell

  1. The last time i felt like this was January 2001. A journalist-friend told me that a certain General Espinosa will defy the order of General Angelo reyes if worst comes to worst. I was eating lunch then when he told me that. A few days later, Espinosa need not defy Reyes as the latter joined him in ousting Erap.
    Now I have the same feeling. Very strong. The center cannot hold. It will break.

  2. The long wait is over. The tipping point has been reached. what is born cannot return to womb.

  3. re: amante story, this is one case where bencard can say the inquirer really has egg all over its face.

    re: rjtv, well, it’s good to keep tabs of rjtv to find out what the palace talking points are at any given time.

  4. ramrod:

    johhny midnight? isn’t he the guy who asked people to put bottles of water in front of their radios?

  5. Brave and honorable bloggers. Rejoice for freedom from evil governance will soon be attained.The people owe you one. I salute you warrior-bloggers.

  6. I am now preparing for a celebration once those evil occupants in Malacanang are gone. Free beer plus pulutan.

  7. frombelow,

    I am keeping my fingers crossed, I hope you would not only speak as someone from below but also as someone from above.

  8. tsk tsk tsk… she is still mumming on this issue. Palagay ko she’s hallucinating…”rewind pleaseeee!”, hindi ko gusto tong nangyayari, nagtatanong “why it leaked?” “It should not leak, it has been a customary practice, why it leaked? “siguro kulang? Sana same amount na lang ang binigay ko”. “If I gave them 1M (gaya nong kay Garci) I could have zipped their mouths”……wishful thinking.

  9. frombelow….free beer and pulutan? Ready na rin yung videoke ko. Celebrate tayo! with fingers crossed.

  10. CaT,
    I’m not an accountant so could you please help me understand what the connection is between “TIMING DIFFERENCE” and “SPENDING DONATIONS FOR PURPOSES NOT INTENDED BY THE DONORS”?

    You see in Government Accounting, there are so called Advances made to certain agencies or units from the appropriations.

    Then the liquidation is made once these advances were spent and corresponding back-up documents are submitted.

    While these papers are still with the agencies and the cut off period requires a preparation for report. These advances remain unliquidated because the corresponding entries in the books have not been made.

    This is not only true for government, even in private entities, closing and adjusting the books go beyond the end of the calendar year that we have to so-called prior-year’s adjustments in our adjusting entries.

    If they like to malverse the funds, they could provide all the necessary documentations and the public may not be even aware that the supporting papers are bogus. Just take a look at the paper trail made by Marcos. It is so intricate that it takes years before they could trace the ownerhips of ill-gotten properties. Up to now, the cases are still in court. The word is Lucio Tan.

    If there are cases like unexplainable donations like 4,000,000 all they do it is ask for explanation and supporting papers.

    Do you think the President with a discretionary fund amounting to billions and is not subject to scrutiny will be interested in loose change?

  11. Brave and honorable bloggers. Rejoice for freedom from evil governance will soon be attained.

    The whole problem with the world is that fools and fanatics are always so certain of themselves, but wiser people so full of doubts.

  12. “why it leaked?” “It should not leak, it has been a customary practice, why it leaked? “siguro kulang? Sana same amount na lang ang binigay ko”. “If I gave them 1M (gaya nong kay Garci) I could have zipped their mouths”……wishful thinking.” – goodah

    Talagang wishful thinking. Knowing her repressed arrogance and apparent underestimation for Filipino intelligence, this is the more likely reaction when cornered.

    “So you think you can do a better job huh?”,”Of course there is bribery, of course there are payoffs!” You heard JDV!” “Whats a President to do to get things done around here?” “Are you really that naive to think all that infrastructure roadmap will magically appear in mid air without me doing something extrajudicial?”
    You want the truth? You can’t handle the truth you gullible pushovers!”

  13. The cat: Is 4,000,000 loose change? Kaya pala mukhang keep d change na lang ang 500,000. Wow, bongga ha! 7 digits is regarded as loose change. How many landslide victims can benefit from that? Ilang sakong bigas na yan.

  14. The cat,

    Thats why we’re blogging our hearts out, we’re full of doubt. We question authority when we notice any irregularity, what we need is transparency, let her explain. Unfortunately, she’d rather hide than face the people squarely. Why the need for so many people to speak in her behalf.

  15. Sometimes I think we live in two realities if I listen to these people, the stench is there, people have admitted, the pattern of deceit is so obvious, what further proof do they need? – Ramrod

    Expect the same coming from our very own Benny Midnight, due any moment, especially now that the PDI has given him some ammo to work with.

  16. “Do you think the President with a discretionary fund amounting to billions and is not subject to scrutiny will be interested in loose change?”

    What? Did you say billions? She’s free to do what she wants with it and doesn’t have to bother with approval or liquidation? and all this is legal? Well, it okay then…

  17. The whole problem with the world is that fools and fanatics are always so certain of themselves, but wiser people so full of doubts.

    REJOICE FOR THEIR DAYS ARE NUMBERED. Am I a fool or fanatic?

    But how can we clean this government of corrupt people? Am I wise now?

  18. What? Did you say billions? She’s free to do what she wants with it and doesn’t have to bother with approval or liquidation? and all this is legal? Well, it okay then…

    It had been there already, my friend even before GMA.
    Wondering why people spend millions just to receive a measly amount for salary?

  19. But how can we clean this government of corrupt people? Am I wise now?

    And since did we have zero corruption?

    TO have perfect and clean government, some advocate for dictatorial government. A leader who has the will power to fight corruption.

    To have a dictatorial government, you have to lose many for your rights including freedom of expression.

    There is still corruption like China, only it isn’t much publicized and discussed in forums like this.

    You ask me if you are wiser just asking how to remove corrupt people.

    Honestly, I don’t.

  20. JdV’s opportunity to redeem himself from his past ignominous acts against the Filipino people is now.

    Forget your ambition to be Prime Minister. It won’t happen because it’s just not meant to be.

    Ilaglag mo na ang unanong usli ang ngipin para naman medyo bumango ang pangalan ng pamilya mo. Or alang-alang sa memory ng nasunog mong anak.

  21. Puno is just being himslf, the “operator”.

    Hindi kaya nahihiya sina Dong sa pinaggagagawa ng isang ito? Punong-puno na ang tao sa mga kagaguhan nyo. Alis na diyan, tsupiiii!

  22. “And since did we have zero corruption?”

    I don’t think frombelow is saying we should have zero corruption, like most of us we desire that the present state of things improve. Since we have a figurehead, she is the most likely target of you-know-what, it comes with the territory.

    I don’t think you mean to say “corruption is everywhere, its normal, accept it, you can’t do anything about it, what did you expect a perfect government? Go on with your lives you pushovers!”

  23. Why should we accept corruption as being a normal part of our daily lives?

    Kaya tayo ganito kasi nga ganyan ang attitude natin sa katiwalian.

  24. “It had been there already, my friend even before GMA.
    Wondering why people spend millions just to receive a measly amount for salary?” – the cat

    “MANILA, Philippines — Former president Fidel V. Ramos said Wednesday he distributed paper bags with Christmas goodies for indigents but never paper bags with cash gifts to congressmen “for whatever purposes whatsoever” during his term from 1992-1998.

    The former chief executive issued the statement in reaction to a claim by Environment Secretary Jose “Lito” Atienza that giving cash gifts was a “usual practice” even during the term of Ramos and his successor, ousted president Joseph Estrada.

    Ramos said during his term, fund releases were made only through the Department of Budget and Management and were always in line with rules and regulations in accounting and audit.

    “At no time in my administration did we ever get into the practice of distributing cash gifts to congressmen for whatever purpose whatsoever,” Ramos’ statement”

    By Fe Zamora
    Inquirer
    Last updated 06:36pm (Mla time) 10/17/2007

    The cat, you mean to say Ramos is lying?

  25. Ronnie Puno:The Spin Doctor EXPOSED!

    Ronaldo Puno is arguably one of the most successful campaign managers in Philippine politics. He supported the presidential bids of eventual winners,Ferdinand Marcos, Fidel Ramos, Joseph Estrada, and Gloria Macapagal Arroyo.

    He was a former interior secretary of the Philippines, and was a representative in Congress. He is also the leader of Kampi, the chief administration party of Gloria Macapagal Arroyo.

    Yes, the same rascal who ordered the bashing of the Iloilo City Kapitolyo to remove Governor Tupas and the kidnapping of Satur Ocampo to face trumped-up charges in Leyte; the same congressman who gave up representing his Antipolo district to become Gloria’s conductor to orchestrate EO 464, CPR, Con-Ass etc as Secretary of Interior and Local Governments and effective head of the Philippine National Police; the same cheat who masterminded the 2004 rape of the presidential ballot frustrating the election of Fernando Poe, Jr.

    He also fixed the 2007 senatorial elections but miserably failed; this same butcher who, together with Bert Gonzales, may be responsible for most of the extrajudicial killings in the countryside; the same mechanic who stole Miriam Santiago’s presidency; the same real estate magnate who has not properly declared his fat ranch in West Virginia and his mansion in McLean, (Virginia), almost beside the CIA headquarters, is now staging a capture of the Embassy of the Philippines in Washington, DC.

    This chameleon par excellence has fleeced every administration except Cory Aquino’s.

    Actually, Ronnie started early. Pushed by his father who was then one of Marcos’s justices, his career took off like a rocket ship, and in no time he was undersecretary of local governments and one of dictatorship’s fastest rising stars.

    After that infamous debate preparatory to the 1986 snap elections where his namesake Ronnie Nathanielz and he arrogantly insulted Joe Concepcion and Ting Jayme on TV in front of Comelec Commissioner Opinion, however, he escaped to the United States right after EDSA revolution, leaving manila in a huff together with his wife Pinky Mendoza and their children and hibernated in Northern Virginia.

    Having taken a few deep breaths after visiting Marcos who was then exiled in Hawaii, he launched a career in wheeling and dealing power with former US senator Melcher as partner, starting with his successful defense of Imelda Marcos in her New York trials after the dictator died.

  26. We should expect our government officials to be honest and true to their word.

    Don’t tell me that we cannot do what Singapore has done, i.e., pay their government employees well to attract the best and brightest who will have enough money left at the end of the month to live comfortably.

    Punishing those caught, both bribe-giver and bribe-taker, is not a bad idea either.

  27. broadbandido,

    The problem with bribes is that its hard to prove, especially if you deal in cash, no vouchers, no acknowledgement of receipt, untraceable. You can’t build a case based on “talk.” Of course, either the briber or the bribee can squeel but it can easily be dismissed as hearsay by any lawyer worth his salt. One way is “sting” operation using marked money so you catch these people in the act.
    Now you understand why there are “vigilantes?”

  28. I’m thinking of a career change to “Spin Doctor” like Ronnie Puno, the pay is great, people believe you, and you can do what normal people can’t do – create your own reality and persuade people to believe it, along the way, convince people to accept corruption as the norm and integrity is an aberration, its a dream job! No sales targets, no expense liquidations, no more monthly progress reports, no annual reports, no strategic plan, just golf in Wack-Wack, wow!

  29. same pattern.

    first step: an obscure, disgruntled/crusading do-gooder in bureaucracy contacts a hip-shooter in the media/political opposition concerning some perceived anomaly;

    second step: feeding frenzy in the media with all sorts of “experts” making the rounds of tv talk shows proclaiming a “tipping point”; while hysterical-sounding news readers (e.g., failon, sanchez, hontiveros of abs-cbn, etc.) present a one-sided anti-gma “reports”;

    third step: hate-gloria bloggers celebrate, high-fiving each other, making plans for a “new” government, telling everybody else “i told you so”;

    fourth step: government explains the issue, proving the perceived anomaly as more apparent than real;

    fifth step: irresponsible print and broadcast media (journalists cum columnists), in tandem with hate-gloria bloggers, cry in unison: spin!, lies!, spin!, lies!”.

    sixth step: senate investigation (in aid of legislation/destabilization);

    seventh step: anti-gma media, politicians and bloggers wiping their face of you-know-what.

    then, on to the next “scandal/tipping point”.

    third step:

  30. The Cat,

    How do you make quotes like that? I tried highlighting, copy, and paste but it doesn’t have the same effect.
    ———

    This has been my problem. too I have been trying for sevral months now but to no avail.

  31. RAM:I’m afraid you can’t be a spin doctor!You are an honest
    Cavalier.

    To be a spin doctor like ronnie puno,you have to start very early in life as a CHEAT .

    I vividly remember him as a young student leader who cheated his way to the National Union of Students’ presidency in Naga by intimidating and MAULING his young rivals from other schools with the help of Marcos’goons.

    Marcos wanted to penetrate all legitimate moderate student organizations preparatory to his martial law plans.

    Creating Spins has been Ronnie ‘s way of life since then!

  32. “Human Rights #11: We’re always innocent till proven guilty.”
    — ANC-aired public service announcement

  33. ramrod and rego:

    I think you have to use ‘blockquote’ tags, like so:

    This text is inside blockquote tags.

    Which should appear as:

    This text is inside blockquote tags.

  34. “The President should speed up the investigation on just who was stupid enough to hand out those paper bags containing cash to the two governors, and perhaps also to others.

    The timing was bad, very bad, coming as it did when talks of bribery prompted the President to scrap the $329 deal for the national broadband network with ZTE Corp., and immediately after talks also of bribery were heard in the halls of the House of Representatives to support that impeachment case against her. Emil Jurado,Manial Standard

    Ay naku!Talk about the standard of morality of Emil Jurado!All he can say about the the bribery scandal:”the timing was bad, very bad…”

  35. 8th Step : First couple hold hands on the beach,
    walking towards the sunset…”whew, better
    luck next time you amateurs!”

  36. Arrrgh!! I’m so sorry. The HTML just rendered again my attempts to put the text in code.

    Here it is again. Just put a “” tag before your text; and after your text, put an ending “” tag.

    Again, remove the extra spaces, and the quotation marks. (I hope this works na.)

  37. “8th Step : First couple hold hands on the beach,
    walking towards the sunset…”whew, better
    luck next time you amateurs! ramrod”

    Are you creating a SPIN? lol

  38. equalizer,

    Just trying it out. 🙂

    “”Again, remove the extra spaces, and the quotation marks. (I hope this works na.)””

  39. bencard,

    been reading this thread yesterday and can’t really compose something interesting. Im almost tempted to join the frenzy when I read the inquirer headline about abante. Then the title of this is “bomb”. But still manage to put it on hold becuase I feel something is wrong.

    Then reading your “steps”, I realized that people desperately wanted Gloria out. (Before Christmas?)

    Unfotunately, the same peopel are not giving the people even just a little glimpse on how the country will be ran if that scenario happened. And that scarce me.

    Ok lang naman sa akin yung mga exposes, if theres wrong doing by all mean expose it. But the way it is being presented to the public and the “automatic” reaction of the anti GMA in this forum. Grabe!!!!.

    Kahapon ko pa gustong sabihin na ” hinay hinay naman tayo”

  40. How callous!

    “Even I have missed one meal in the last three months,” quipped Gloria Arroyo in an obvious dig at the question used by the SWS to solicit responses from survey respondents about going hungry or missing a meal in the last three months.

    The Philippine version of Marie Antionette’s infamous quote “Let them eat cake”, while the whole country was starving …

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