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  • Audit on road mess sought
    SENATE SEEKS C.O.A. REPORT ON W.B.-FUNDED PROJECTS; PALACE ISSUES ORDERS
    By Butch Fernandez and Mia Gonzalez
    Reporters

    IN the face of presidential orders to clean up the extensive bidding mess in government after the World Bank (WB) practically blew the whistle on the practice, Executive officials continue to snub the Senate investigation on the WB suspension of its loan for road upgradings.

    Sen. Loren Legarda, chairman of the Senate Economic Affairs Committee, lead prober panel of the questioned road bidding for the WB-funded project, cautioned Cabinet officials who failed to attend Monday’s hearing to explain the loan mess, hinting the committee may not be as tolerant if they ignore it anew.

    “We would be tolerant this time but they should remember they cannot escape questioning,” said Legarda, who cochaired initial hearings with Sen. Ramon Revilla Jr. of the public works committee.

    This, even as President Arroyo Monday issued  orders to protect the integrity of foreign-funded infrastructure projects by, among others, directing greater civil-society representation in government bids and awards committees and a well-funded investigation of irregularities in such projects.

    The Senate committees also asked the Commission on Audit to submit an updated report on the World Bank-funded $232-million National Roads Improvement and Management
    Program 2 (NRIMP 2) earlier suspended by the WB due to alleged “collusion and overpricing.”

    Bank executives earlier said they will not resume deliberations on the road project loan until they are fully convinced that it would not be tainted by corruption.

    “Definitely, there is corruption in here, that is why these projects should be looked into,” she said. “We are sorely disappointed that the invited Executive officials failed to show up but hopefully, they will be ready with the documents we are requesting at the next hearing.” The projects being looked into were supposed to have been undertaken way back in 2003.

    Legarda said the joint investigators are also asking the COA, as well as the Executive agencies concerned, to submit a complete list of all other foreign-funded projects found to have incurred cost overruns.

    President Arroyo on Monday issued Administrative Order 210 titled “Harnessing Government, Civil Society and Sectoral Groups for Transparency and Procurement Reforms” shortly after the WB suspended the $232-million road building loan.

    Under AO 210, the President ordered the Pro-Performance System (PPS) and the Procurement Transparency Group (PTG) “to review road projects covered by the suspended the World Bank loan, for report to the President.”

    Among those being asked to testify next week are Finance Secretary Margarito Teves, Budget Secretary Rolando Andaya, National Economic and Development Authority chief Augusto Santos, and Public Works Secretary Hermogenes Ebdane.

    Legarda said the officials sent word they were not able to attend the hearing because they were tied up with disaster relief work due to typhoon Mina.

    She indicated that among the remedial measures being eyed to prevent irregularities in foreign-funded projects like the one suspended by the World Bank are tighter congressional oversight and stricter standards and safeguards against corruption in these projects.

    Among the other directives of the Chief Executive, meanwhile, is for the Presidential Antigraft Commission (PAGC) to report on the suspended road projects, and “consult the World Bank and other funding agencies on other anomalies to investigate.”

    She also made sure funds for the investigation are available, by instructing the Department of Budget and Management (DBM) to source these.

    Finance Secretary Teves had said before the weekend that the government is confident of the WB eventually approving the second phase of the roads improvement program, after the government had drawn up measures expected to fulfill the Bank’s requirements.

    Among the safeguards proposed are implementation of a technical audit, increased transparency in the bidding process, and the possible adoption of Philippine procurement laws and processes.

    The tainted road loan bidding was held under World Bank procedures, which proved to be not as corruption-proof as the Bank believed.

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