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Corruption As ‘Official’ Policy

ebdane-dpwh-corruption-montage

Public Works Secretary Hermogenes Ebdane:

Collusion is part of the way contractors do business but it does not mean that public works officials are involved in it. Officials of the Department of Public Works and Highways “cannot prevent contractors from talking among themselves” and comparing bid prices. “But it doesn’t mean that the DPWH is part of it,” as is being insinuated.” The construction companies band together for a bidding and agree which one of them would win the contract. The winner then pays off the other members of the group. This typically occurs when there are only a few firms competing for one contract. This is part of the companies’ way of doing business.“In any kind of business, there is always cheating. That will never go away,”

Filipinos just have to accept the fact that their tax money will continue to be stolen and that corruption in government agencies awash with public funds is tolerated.

This is essentially what presidential alter ego Hermogenes Ebdane is telling us.

The public works secretary’s boss is having breakfast today with 44th US President Barack Obama so I have to wonder whether Mr. Ebdane realizes what he is declaring to the world.

Senators known to march to Malacanang’s music are even saying that the onus is on the World Bank to cough up the evidence in its findings that construction firms with confirmed links to presidential spouse Mike Arroyo “colluded with one another” to bag road contracts funded by the World Bank.

One cannot but wonder if they realize both the World Bank and the International Monetary Fund are American-led, and capitalized by the United States.

This patently cavalier attitude if not scandalous toleration of corruption and theft of public funds by Manila is disgustingly shameful.

Mr. Barack Obama’s call for leaders like Gloria Macapagal Arroyo to “unclench” heir fists appears to have fallen on absolutely deaf ears with government monkeys neither seeing, hearing, or speaking evil.

This while their society is shackled by poverty and the worsening economic crisis.

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Comments

  1. GabbyD says:

    where is this quote come from? (link?)

    i have a technical question on how they cheat. this collusion would work if they can inflate the lowest price by submitting fake bids that are too high. the winner, the lowest bid, is actually far above cost of production, and the winner pays off the losers from the profits.

    so this shouldn’t work because from the there is a max bid requirement set by the procurement agency. its a three letter acronymn… ABC?

    so, did he say anything about this max bid?

    the only way collusion would work is if the DPWH sets a max bid that is too high systematically.

  2. blackshama blackshama says:

    The twits in the legislature demand proof? Who cares for proof, if you hold the money and purse strings? The WB isn’t part of the corrupt Philippine state!

  3. Gabby,

    I don’t, as a rule don’t usually embed links as you may note in past posts as I avoid the spin from MSM. Google Ebdane now and you will see several MSM ‘takes’ on his remarks.

  4. GabbyD says:

    k, thanks ding.

    i actually wouldn’t mind if they revealed how the alleged collusion happened.

  5. Click over to MLQ3. His Daily Dose today is highly instructive

  6. macapili says:

    We have seen and are now seeing the various parts of the bigger “stay-in-power” machine moving – JDV out, Nograles in, Villar out, JPE in, cha-cha in the house, Yusof in Comelec (NOEL in 2010?), cha-cha will also be in the senate. Why would she cling to power if she has nothing to fear beyond 2010?

  7. J_AG says:

    Actually privatizing the delivery of capital goods would be reverting to the past. Abolish the DPWH n the DOTC. Let government draw up the requirements of public goods and allow the private sector simply to bid for the construction and delivery and maintenance of these public goods.

    Remove all price restrictions or regulations of prices of all natural monopolies.

    Look at what happened to the LPG issue. Alam nang lahat na tanga si Reyes. Nabisto ang mga private players. The crisis forces everyone to cooperate other wise mag aalsa ang mga consumers.

    The same with the banks. Warning labels should be posted. Remove guarantees which are a ticket for riches for bankers.

    Which presidentiable will have the wherewithall be able to singlehandedly change the system. In the Philippines government should minimized.

    Obamas pick in Daschle proves that even there it fails. Daschle received gifts from lobbyist and did not declare it. He wanted to serve but his wife is a highly paid lobbyist for a business sector and he got too used to the high life.

    Hey being rich and powerful is fun and it really is great. The privileged really live in a separate universe.

    From Maureen Dowd of the NY Times

    “The New York Post revealed that Sandy Weill, former chief executive of Citigroup, took a company jet to fly his family for a Christmas holiday to a $12,000-a-night luxury resort in San José del Cabo, Mexico. No matter that the company just got a $50 billion federal bailout and laid off 53,000 worldwide.”

    “The interior of the 18-seat jet, as described by The Post, is posh, with a full bar, fine-wine selection, $13,000 carpets, Baccarat crystal glasses, Cristofle sterling silver flatware and — my personal favorite — pillows made from Hermès scarves.”

    “Aux barricades!”

    As part of his retirement package from Citigroup Weill has free use of the corporate jets.

  8. Karl Garcia says:

    Gabby,

    remember what I have been hammering on the IRR B
    or the implementing rules for foreign funded projects.
    The problem is this.
    (from PCIJ)

    “Anybody who bids beyond (the ABC) in the Philippine setting is automatically out of the running,” he points out. “Under World Bank (rules) there is no limit. You can even put in 10 times if you want. If the bidders talk to each other, is there a way to stop it?”

    It is the foreign lenders who does not want to put ceilings as it goes against their guidelines.

    In June 2002, the DPWH issued a department order stating that bids for civil works and supply contracts above 15 percent of the approved budget contract would be rejected outright. Then Public Works Secretary Simeon Datumanong noted that awarded contracts for foreign-assisted projects were higher than approved costs by an average of 15 percent, with some going as high as 30 percent.

    Country managers of the Japan Bank for International Cooperation (JBIC), Asian Development Bank (ADB), and World Bank promptly wrote a joint letter opposing the order, reminding Datumanong that the imposition of contract price ceilings violates their procurement guidelines.

    The order was not implemented because of the lenders’ objections.

    since we have no IRR B for our procurement act we follow section four of RA 9184.

    Does R.A. 9184 cover foreign-assisted projects?
    Yes, R.A. 9184 covers foreign-assisted projects. This is categorically stated under Section 4, which we quote:

    Scope and Application – This Act shall apply to the Procurement of Infrastructure Projects, Goods and Consulting Services, regardless of source of funds, whether local or foreign, by all branches and instrumentalities of government, its departments, offices and agencies, including government-owned and/or controlled corporations and local government units, subject to the provisions of Commonwealth Act No. 138. Any treaty or international or executive agreement affecting the subject matter of this Act to which the Philippines is a signatory shall be observed.

    However, the IRR-A covers fully domestically funded projects only. Meantime, projects funded from foreign sources shall be governed by the guidelines of the International Financing Institution (IFI) pending the issuance of IRR-B.

    even the Scorp recognizes that our foreign lenders does not recognize price ceilings.(abaya vs Ebdane)

    So that means we follow their guidelines?
    Then if there are no ceilings talagang recipe for collusion talaga.

  9. DJB says:

    Hey everyone!

    I’ve just been over visiting at a blog that Manolo Quezon points too on The Daily Dose. It’s an investor in The Legacy Group who got burned. Legacy Group BlogWatch
    It’s worth checking out and giving the guy some blog love.

  10. Phil Manila says:

    Not to condone graft and corruption, don’t you get the feeling that every Tom, Dick, and Harry of a senator and congressman is conducting investigation.

    Sen. Gordon’s saga of an investigation on the fertilizer scam, Miriam Santiago (she even threw a tantrum when initially her committee was not the lead) on WB charges of collusion, Escudero on pre-Legacy failure, Rep. Cuenco on pre-need, etc. etc.

    Now its Jinggoy Estrada on Hanjin accidents.

    Now, what these investigations got to do with the price of eggs?

    Coming soon 2010 elections. Its show time, folks.

  11. Juwan_D says:

    corruption corruption corruption….hhhmmmmm

    The Philippines is consist of Corrupt politicians and Corruptible idiot Filipinos…

    Alam na ng lahat ng tao na kurakot ang isang politiko…pero binoboto pa din..nakikipagpatayan pa kapag inalipusta ang kandidato nya bwehehehehe

    Hay buhay pinoy…puro dakdak…wala naman ginagawa para mabago ang kinabukasan bilang isang pinoy.

    kape na lang kayo sa starbucks…

  12. Can you guess the third Filipino president who will be included in the exclusive list of the world’s most corrupt leaders?

  13. Juwan_D says:

    para sa akin..di na importante kung sino ang mas kurakot o menus kurakot…

    ang isyu ay kahit sino pa maging presidente natin…siguradong kurakot din sya sampu ng kanyang mga alipores…

    at ang katotohanan ay maghihirap pa din ang mga pilipino dahil sa mga klase ng politiko ng pilipinas…

    pero ..wala naman gagawin ang mga pinoy..ayos lang..idol si politiko eh..basta ngumiti sa akin iboboto ko na..siguradong mabait na..bwahahahahaha

  14. KA FLOR says:

    If things seems to be hopeless. You surrender
    to the situation. Even if it will destroy you,
    and will not give you peace of mind and happiness.

    The attitude is a defeatist attitude. Human progress were done and advocated by people who believe that there are always ways and means to better the present situations, inventions, discoveries, ways of life, etc…

    Not done by people who sit on the fence, accept their fate until they kick out the ghost.

    Yes, corruption can be minimized. Transparency in
    conducting the country’s financial affair is
    the answer. Accountability of people running the
    affairs.

    Why do corrupt people flourish ?

    Because, corrupt people are allowed to ply their trades. We dont jail and deter people who are doing corrupt practices. We allow them to enjoy their loots. That came from us, from Our Taxes.

    We the people must enact laws like: Freedom of
    Information. Where any citizen can get information
    anytime on due course to any public official.

    The trouble is they can legally hide their loots
    in any bank. Invoking the Bank’s secrecy laws.

    Look at the Resodo case at the DOJ as an example.
    Not only Resodo is hiding his loot and bribe.
    Other DOJ people are also hiding their loot and
    bribes. If we can open these informations, as
    required by us the Filipino people. It will deter
    loot and bribes from being hidden.

    Confiscate also what they had stolen.

    We are the employers. So, we have the right to
    protect our employers’ right also.

  15. Phil Manila says:

    With all the alleged graft and corruption going on, its the press-identiable solons who are making all the invest-tigations. Notice how the corruption watchdog Ombudsman is so psssssilent. The courts TROing every move by the regulators, who it seems are either toothless or careless.

    The people are getting used to the daily melodrama.

    They ask: who could we trust?

  16. GabbyD says:

    @karl

    yup, i remember that. i thought/think that ebdane is making a blanket statement about all public works projects, not just the foreign funded ones. so for non-foreign, the ABC is a rule right thanks 2 the new law.

  17. karl garcia says:

    gabby,

    karamihan ng mga projects sa atin foreign funded.

    eo40 made that abc rule, and that does not cover foreign funded projects.

    kung tungkol sa sinabi ni ebdane e di isa lang ang masabi ko dyan, Bull Shit!

  18. KA FLOR says:

    Corruption is endemic to a third world country
    like us. We have to accept the fact that we have
    a huge problem. Although our Leaders, who are the
    perpetrators tell us otherwise. They are the problem.

    Yes, corruption can be minimized by enacting good
    laws. Implement them. Jail these people. confiscate what they have stolen. Hit them in the pocketbook with fines.

    The U.S government passed these laws to break
    corruptions, Mafias, organized crimes, terrorists,
    etc…

    1. Freedom of Information Acts.

    2. Anti-Racketeering law.

    3. Patriot Acts

    Our government is like being ruled by Mafiosis.
    That even the great Mafiosi Alphonso Capone may
    be even turning in his grave now.

    Solution:

    1. Citizens must follow up the cases of corrupt
    practices.

    2. Full implementation of the law. No palakasan.
    No bata-bata. No, because he or she is in
    power.

    If we are all intimidated and afraid of these
    people. We will let the cycle go on, and on.

  19. brianjay says:

    OR given the recent situation and the chance that poverty levels would expand brought by the huge job losses due to the financial crisis, will Filipinos be moved to take control of their Government because of their desperate situation?

    Is there a possibility that some sort of civil war may come. Some sort of revolution that will ultimately change things?

    I think no EDSA can change us now.
    When a lot of people are hungry and desperate, they envy everything and will not tolerate anything.

    Perhaps, tapos na ang panahon ni Ibarra.
    Even Rizal, in all his civility, when in despair threw his most reckless answer to the social crisis: REVOLUTION

  20. KA FLOR says:

    Filipinos are addicted to EDSA. It is their
    panaceas that things will better after another
    EDSA. How pathetic…

  21. KA FLOR says:

    Hey, fellows. Foreign governments are now concerned
    of entrenched corruption in the country. They are
    thinking of cutting foreign aids and assistance.
    Until we take care of our acts.

    Those Senate Investigations are waste of time.
    It leads to nothing. These “palabas” are even
    badly scripted.
    so, tighten your belts. Those corrupt officials
    are not affected. We should throw them to the
    sharks.

  22. allan says:

    There is a new formula that fits this all

    PHILIPPINES = CORRUPTION

    From head to toe of the philippine government

    When this will change?

    Allan
    UK & Dubai

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