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    Editorials:

    Illustration by Jimbo Albano

    Casualty of war

    ONE of the hard-hit casualties in the ongoing national broadband network (NBN)-ZTE controversy must even now start to pick up the pieces of its tattered reputation, if we are serious about the future of the Philippine bureaucracy.

    Before President Arroyo named the then-House planning and budget office chief to be the director general of the National Economic and Development Authority (Neda), the socioeconomic-planning body had been suffering a slow decline in influence and esteem in the Cabinet.

    The last nail was made by Mrs. Arroyo when she named Romulo Neri to the Neda, despite initial warnings by well-intentioned experts that he was too “politicized,” having served for some eight years with Speaker Jose de Venecia Jr. and being saddled with the reputation of being fast and loose with data and information, not to mention too steeped in the ways of a very political body like Congress.

    It wouldn’t take long for him to start living up to that reputation, starting with his famous briefing that the country has more than a trillion dollars worth of mineral reserves and this, if exploited, would send the gross domestic product soaring to stratospheric heights. As far as we remember, he never validated this claim.

    But as it turned out, an inclination to hyperbole wasn’t to be the worst problem with then-director general Neri. When the initial details of how the government vetted the NBN first came out, it became immediately apparent that the Neda under his watch had been relegated to the margins of the Cabinet.

    Of course, it may seem too much to expect the new Neda chief to have the character of the then-chain-smoking Solita Collas-Monsod, the first Neda chief after Marcos who took it upon herself, with help from very able deputies, to give the planning body the position it deserved as primus inter pares in the Cabinet. After Monsod, the Neda was observed to be slowly declining in influence, but some observers just attributed this to the fact that her successors were not as colorful or emphatic as she was.

    But at least their credentials as economists were beyond reproach. These names quickly come to mind— Jesus Estanislao, Cayetano Paderanga, Dante Canlas, Cielito Habito and Felipe Medalla. 

    The current DG, Augusto “Tito” Santos, is a very competent career man at the Neda, but unfortunately has been made to suffer the injustice of warming Neri’s seat as “acting DG” in between Neri’s stints at the Neda.

    Mr. Santos should stay on as Neda chief for good, and the Palace must banish all illusion by Neri that, per a supposed presidential promise, he will be back at the Neda after six months, when he finishes “trouble-shooting” at the Commission on Higher Education. Considering Neri’s very politicized background, it is fair to surmise that a “return” to the Neda was dangled precisely to influence his behavior in the NBN inquiry.

    That troubling issue aside, the fact is that the processes undergone by the NBN in themselves already reflect the narrow field to which the Neda under Neri limited itself. As gleaned from the paper by UP School of Economics dean Noel de Dios and Prof. Raul Fabella, the Neda’s inputs were not given much weight later when the Cabinet decided on the NBN.

    And Medalla, a former economics dean and Neda chief, was reported to have said in a forum that it bothered him that  Neri said the Neda wasn’t looking at the financing side of big projects like the NBN. Indeed, that is troubling because it would have fallen among the official development assistance (ODA)-funded projects, and as everyone knows, ODA-funded projects have always been the Neda’s task to vet.

    Before that, some Neda officials interviewed in earlier stories also said they left it to the project proponent, the Department of Transportation and Communications, to validate the technical aspects of both the NBN and its sister, the cyber-education program, another China-funded project.

    While a proponent agency is expected, indeed, to have the technical expertise to vet projects, that should not in any way diminish the Neda’s role to look at the technical aspects of each major project, and this is precisely why the Neda is set up into “staffs” with core expertise in various fields (agriculture, infrastructure, public investments, regional development, etc.); and also why the Neda Board meets regularly with the Cabinet on projects elevated by interagency Neda Board committees.

    That Mr. Neri allowed the institution he headed to increasingly lose its say in the Cabinet is perhaps best seen when he virtually admitted he was bamboozled by his superiors into giving the NBN clearance.

    But perhaps the worst signal of the low level of confidence he had in the Neda staff is his decision to tap an outsider, sans any formal contract, to look at the NBN deal. Why he would ask an outsider like Rodolfo Noel Lozada Jr., even assuming his brilliance as a telecoms engineer, to vet a project when his agency has its own staff may perhaps be seen in a clearer light when one considers his famous quote—assuming Lozada told the truth—that he had asked his friend to step in because Lozada was needed to “moderate the greed” of unnamed parties.

    It is inconceivable to think of someone like a Monsod, or any of her predecessors we named, considering the financing and specs of multibillion-peso projects from such a cynical viewpoint.

    Given all that has happened and the institutional damage it suffered, the Neda must quickly move, even as the NBN inquiry still runs, to reclaim the mandate its erstwhile chief had yielded to outsiders, or risk losing the confidence of foreign financiers, be they multilateral-bilateral donors or private investors or contractors.

    To be fair, the Neda has played an active role in streamlining the different modes by which the build-operate-transfer law and its variants are applied on big-ticket projects. Now, it must pursue the process to its logical conclusion. The most immediate step in this direction is to assure its various publics that it remains on the saddle and has not been irremediably co-opted by politicians.

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