Magandang umaga po sa inyong lahat.

Maraming salamat sa pagpunta ninyo dito sa Senado. Sa umagang ito, sisimulan natin ang isang mahalagang imbestigasyon at pag-aaral sa isang issue na sangkot ang pera ng taumbayan.

A few months ago, nabalitaan ng publiko ang pagpapakamatay ng isang abogado ng isang bangko. Ayon sa balita, nag-suicide umano ang abogado dahil sa pressure sa kanya kaugnay ng usapin tungkol sa malaking perang inutang ng mga kilalang personalidad mula sa bangkong pinaglilingkuran niya.

Ang sinisimulan po natin sa umagang ito ay hindi isang police investigation.

Hindi natin layunin na pangunahan ang Philippine National Police sa pagresolba ng misteryo ng diumano’y pagpapakamatay ni Attorney Benjamin Pinpin.

Pero responsibilidad ng Senado na tingnan ang pinag-ugatan ng misteryong ito – ang na-ulat na mahigit kalahating bilyong pisong pondo ng Development Bank of the Philippines o DBP na ipinahiram at ginamit ng mga personalidad na diumano ay malakas sa dating administrasyon.

Ang malaking pondo na ito ng DBP ay sangkot ngayon sa malaking away ng mga kilalang malalaking negosyante sa ating bansa. At ang bagong pamunuan ng bangkong ito ay nag-file na ng complaint laban sa ilan sa kanila.

Ang sentro ng reklamo ay ito – ang pagkakautang ng malaking halagang ito ay sa paraan daw ng isang “behest loan”.

Tatlong bagay ang gustong alamin ng ating Senado sa usaping ito.

• Una, nalagay ba sa peligro ang pera ng taumbayan na ipinahiram ng DBP sa mga taong sangkot sa usaping ito?
• Pangalawa, sino ang naglagay sa peligro sa pera ng taumbayan na ginagamit ng DBP at paano nila ginawa ito ?
• Pangatlo, meron bang mga nilabag na batas; meron bang mga nilabag na processes and procedures; at meron bang pagkukulang sa batas kaya nalagay sa peligro ang pera ng taumbayan na ginagamit ng DBP?

Importanteng masagot natin ang mga tanong na ito. Importante ang mga sagot dito sa mga ordinaryong Pilipino.

Ito ang dahilan: hindi ba kaya merong Development Bank of the Philippines ay para tulungang ma-“develop” o umasenso ang mga magsasaka at maliliit na negosyante?

Hindi ba’t iyan ang dahilan kung bakit naglabas ng pera ang gobyerno noong araw pa galing sa pera ng bayan para magtatag ng isang Development Bank of the Philippines?

Ilang beses na in the past na nalagay sa alanganin ang DBP dahil sa mga tinatawag na behest loans.

Ang masaklap dito, ang mga beneficiaries ng mga behest loans ay hindi naman ordinaryong Pilipino. Hindi naman maliit na negosyante. Ang sangkot, palaging mga dambuhala sa larangan ng negosyo at industriya sa Pilipinas.

Tungkulin ng mga mambabatas natin na tiyakin na hindi na magpapatuloy ay ganitong uri ng pagsasamantala sa pera ng DBP na dapat ang maliliit na Pilipino ang nakikinabang.

Sa umagang ito, we are honored by the presence of the following guests and resource persons.

Senate Committee on Peace, Unification and Reconciliation Chairperson Senator Teofisto “TG” Guingona welcomed today some members of the British Parliament to share insights on ways to achieve peace in Mindanao.

The delegates were headed by Right Honourable Paul Murphy, member of the House of Commons, Parliament of the United Kingdom; British Ambassador to the Philippines Stephen Lillie; Mindanao Officer of the British Embassy Shane Male and Director of Philippines International Alert Francisco Lara, Jr.

Sen. Guingona said that the purpose of the visit was to exchange views and experience between the United Kingdom and Northern Ireland and the critical challenges faced by legislators and executives as they worked towards a systematic process of disarmament and demobilization, useful lesson that can be applied to the ongoing GPH-MILF negotiations.

During the meeting, Murphy shared the key turning points and developments of the Northern Ireland peace process.

He said that the British government ended the crisis with the Belfast Agreement (also known as the “Good Friday Agreement”) in 1998, marking a major step forward in the Northern Ireland peace process. The agreement was made up of two inter-related documents: a multi-party agreement by most of Northern Ireland’s political parties, and an international agreement between the British and Irish governments.

It included the declaration of ceasefires by most paramilitary organizations. The British government even recognized the principle that the people of Ireland as a whole have the right, without outside interference, to solve the issues of the North and South by mutual consent. That statement was the key to winning support for the agreement from nationalists and republicans.

Sen. Guingona for his part as Chairperson of the Committee on Peace and Unification, said that he is closely monitoring developments on the peace negotiations with the MILF.

“Peace and progress in Mindanao will not proceed if there is no strong and stable leadership,” Sen. Guingona said.

He added that Mindanao needs a sustained period of peace so that long-term development can be obtained.

Sen. Guingona said that the Committee will investigate to determine possible amendments, not only on banking laws, but especially on the charters of Development Bank of the Philippines (DBP), Land Bank and other government financial institutions.

Last 5 August 2011, DBP Chairman Jose Nuñez and President Francisco del Rosario Jr. filed criminal and administrative cases against DBP’s past Board of Directors led by President Reynaldo David, in connection with the alleged P660 million behest loans that the bank granted to Ongpin’s company, Delta Ventures Resources Inc. (DVRI), to finance the latter’s acquisition of Philex Mining shares that were subsequently sold at an astonishingly high price.

The Committee will require the appearance of Ongpin, former DBP board members led by David, and several bank officials to shed light on the circumstances surrounding the approval of these highly questionable loan transactions.

Aside from possible violations of banking laws, the Committee will also inquire into the possible insider trading and violation of Securities Code because the half- billion peso loans granted to Ongpin were used to buy DBP’s 50 million shares in Philex Mining Corporation at P12.75 per share and subsequently sold to the group of Manuel Pangilinan at P21.00 per share, or more than triple the purchase price. At the time of the sale, Ongpin and David were also both Directors of Philex.

The Committee hearing also aims to determine the involvement of businessman Roberto Ongpin, who was then a Director of Philex Mining, and his closeness with former First Gentleman Jose Miguel Arroyo.

Sen. Guingona said that they need to determine the possibility that Arroyo had a hand in the loan transactions.

Other questions expected to be answered during the scheduled Committee hearings are as follows: Why did DBP, as the seller, agree to receive credit instead of outright cash?; Why was Golden Media added as third party in what could have just been a straight and simple loan transaction between two entities, DBP and DVRI?; Was the bank unduly exposed to any risk and did DBP violate any banking rule or favor a borrower to the detriment of the bank’s depositors and the taxpayers?

Senator Teofisto “TG” Guingona III was recently invited as a resource person in the Focus Group Discussion of the Mindanao Solidarity Network held on 28 September 2011 at Serye, Quezon Circle.

The forum was conducted to solidify civil societies, NGOs and other concerned individuals towards a peaceful and progressive Mindanao; to identify issues, specifically, the peace talks and the implications in Mindanao; and to support initiatives taken for Mindanao advocacy.

The event was held to rally Manila based groups to form a formidable force that will support the peace process in Mindanao and President Aquino’s mandate to end the conflict.

Participants include representatives from the PNP, Meradeka, CHS-ICPI, MSN-Balay Rehabilitation Center, GenPeace, Sulong CH, academe, Fr. Bert Alejo; S.J. and other Mindanao based organizations.

In his speech, Sen. Guingona said that the Legislative is the government’s political arm that formulates the laws in accordance with the government’s policies and projects.

He pointed out that the Legislature does not intend to meddle beyond its functions in the peace talks and other Mindanao-related issues. Accordingly, he called for support from the concerned people or group to help define the specific role of legislature.

Senator Teofisto “TG” Guingona III recently initiated a focus group discussion on the reforms for the ARMM budget held last September 22 at the Asian Institute Management, Makati City.

The ongoing FGD sessions aim to identify the problems of public finance and accountability and to determine how the new government can respond to these problems. Among the resource speakers invited were Rep. Bai Sandra Sema of the 1st District of Maguindanao; Dayang Carlsun Jumcude and Dir. Fatima Kanakau of ARMM and Commissioner Heidi Mendoza of COA.

The FGD is divided into two phases. First is the Manila round wherein several young muslim leaders will be invited to be given background on how the ARMM budget works. Second is the Cotabato round wherein the learnings from the Manila round will be presented in a local workshop to Muslim leaders. Representatives from government agencies like COA and DBM; Civil Service organizations such as Reform ARMM Now, Social Watch, and InciteGov and former ARMM officials were invited as resource persons. Young muslim leaders from Mindanao will also participate in the discussions.

The objectives of the entire FGD are to identify the problems of public finance and accountability in the ARMM budget and to determine how the new Administration can respond to these problems. It primarily aims to empower the young Muslim leaders of Mindanao to understand the ARMM budget in order to simplify the complex government processes and to increase their awareness on the issues and areas for reform, as well as mapping out possible solutions.

Senator Guingona believes that budget reform is vital in pushing for positive changes in how the government can achieve development goals through a responsive budget.

This has been Senator TG Guingona’s advocacy since his term as Congressman of the 2nd District of Bukidnon and until now as a Senator. Senator Guingona is not alone in pushing for a reformed budget. He convened last November 2009 the Open Budget Partnership (OBP), a coalition of the executive and legislative branches of government, civil society organizations, and development partners what aim is to promote transparency, accountability and participation in the whole budget process

“In order for ARMM to initiate reforms, it must have a sound budget allocation and process in order to address the concerns of the region,” Senator Guingona said. Guingona believes that Open Budget forum is needed in order to pull in those in ARMM, National Government Agencies, particularly COA and DBM, and other CSO, to discuss and identify key problems and possibly identify solutions that will be helpful for next year’s budget.

Opening Statement
Helicopter Scam Probe
September 13, 2011

Magandang umaga po sa inyong lahat.

Sa mga sandali pong ito, nakatingin ang buong mundo sa kagandahan ng isang Pilipina. Kasabay ng hearing natin ngayong umaga, ginaganap ang Miss Universe Beauty Pageant, at inaasahang mapupuna ang ganda at galing ng kinatawan ng Pilipinas duon.

Samantala, dito sa bulwagan ng senado, inaasahan natin na makikita din ang ganda ng Pilipino. Hindi ang ganda ng mukha o katawan. Ang gusto nating makita, ang kagandahan ng pagkatao at kagandahan ng kunsensiya ng mga nakikiisa sa pagdinig na ito.

Ganda ng pagkatao sa pamamagitan ng pagsasabi ng totoo.

Ganda ng pagkatao sa pamamagitan ng pagtulong sa atin sa pagtuklas ng katotohanan.

Maganda ang pagkatao ng isang Pilipino na nakakaintindi at isinasabuhay ang tunay na meaning ng salitang “Pananagutan”. Accountability.

At “accountability” ang gusto nating bigyan ng focus sa umagang ito.

Para ma-alagaan ang pera ng bayan, gumawa tayo ng mga proseso sa mga tanggapan at ahensiya ng pamahalaan. Gusto nating tingnang mabuti kung ang mga prosesong ito ay nasunod sa kaso ng kontrobersiyal na pagbili ng helicopters ng Philippine National Police.

At, gusto din nating tingnang mabuti kung ang mga taong dapat na magpatupad ng prosesong ito at sumunod nang tama sa kanilang tungkulin at pananagutan.

As we perform our task and mandate here at this hearing, our hearts are at prayer that the beauty of the Filipino character would triumph today: triumph in the world stage; but more important, to triumph here in this hall where we have long been in search of Truth.

I would like to welcome our guests and resource persons present here today.

STG: Magandang hapon sa lahat. We just concluded another hearing on the helicopter issue. What is apparent is that the Philippine National Police is not a coherent whole organization. As can be seen they are disjointed and uncoordinated. It is a very very disappointing state for the PNP. The Senate President has already expressed his frustration at such a situation. We hope that the PNP will take measures so that they can mend their organizations. Any questions?

Q: Patuloy pa din ba ang hearing?

STG: Patuloy pa din. Nag-aantay tayo ng dokyumento, pati ang LTA mag-submit pa ng kanilang books of accounts.

Q: Why did you release Rowena del Rosario? Were you pressured?

STG: No. She wrote a letter and there was also a request from Senator Escudero, as you heard and that’s the basis of release.

Q: Bale wala na sir yung petition nila?

STG: Yes.

Q: Are you satisfied by her answer? Nakatulong ba ang detention para makakuha ng information?

STG: What happened now is we have been able to get from her answers which makes clearly the Arroyo brothers liable on the tax angle and she did undertake to appear in the future hearings. We will take her word at that.

Q: Ano yung detalye tungkol sa tax case ng mga Arroyo?

STG: For example, she said that from 2004-2011 , they paid Lion Air 18 million pesos. She said it all came from Iggy except the 500 thousand dollars . There was no documentation at all.

Q: Mag-file na ng kaso ang PNP. Paano poi yon? Itutuloy pa din ban g Blue Ribbon ang pag imbestiga?

STG: Itutuloy natin sapagkat you can never tell what evidence will show up. As long as mayroon significant na ebidensiya na lumabas pa , bubuksan namin ulit ito if it’s needed. Right now, we are in the state of waiting for the documents.

Q: May irerekomenda ba kayo na kakasuhan?

STG: Clearly meron na like the inspection team, heade by General Piano. Clearly has liability, clearly he has to answer. The head of the PNP at that time, General Versoza. Clearly has the liability and clearly has to answer. In fact he was the one who signed the contracts.

Q: What particular case?

STG: We have to evaluate that.

Q: Bakit hindi ginigisa si Gen. Versoza?

STG: If you do remember two hearings ago, I did tell him cause he was trying to evade last time. I did point out that he entered into a contract with an entity that was not legally capacitated to do so. MAPTRA, at that time. In spite of that, he did enter into the contact. So sabi ko sa kaniya, “clearly you have a responsibility… you have to be accountable for this”. I just don’t want to repeat it each and every hearing.

Q: Kahit na ally siya ng administration?

STG: This is the first time I heard that he is an ally. Ally or not, the point is, it is clear that he has accountability.

Q: Is Iggy Arroyo still invited?

STG: The invitation is open.

Q: What law is the Blue Ribbon looking at?

STG: The procurement law, the relationship of NAPOLCOM with PNP because if you noticed, parang hugas kamay iton NAPOLCOM when it comes to the liability. They were saying that they have nothing to do with it. The Notarial law, as can be seen, it’s full of loop holes. It can be tightened,.

Q: Makakasama bas a kakaasuhan ang dating chair ng NAPOLCOM?

STG: We will have to evaluate.

Q: Ano nakalagay sa letter ni Rowena?

STG: Basically, she was just appealing to be released. She did say that she would come every time we need her.

Q: Kailan next hearing?

STG: Wala pang schedule. To be announced.

Today, I cast my vote in favor of the Rome Statute of the International Criminal Court.

I firmly believe that the 15th Congress, this Senate, is in the perfect position to make a historical vote in favor of accountability. In favor of human rights.

Genocide, crimes against humanity, war crimes and aggression. Offenses that are irreversible assaults against humanity. The International Criminal Court is a venue for those who are alleged violators to be weighed against the standards of law and justice.

Is it our problem that other countries have not signed this treaty? No.

If these countries fear that a legal, objective, and neutral system like the International Criminal Court can exact accountability for such heinous crimes against their own citizens, that is THEIR problem. Not OURS.

I believe that now is the perfect time for the Senate of the Republic of the Philippines to cast this historic vote to send strong messages to everyone:

1. This is the government that is NOT afraid of any institution of accountability.

2. This is the nation that seeks to cooperate with the continuing international effort to stop heinous crimes: genocide, crimes against humanity, war crimes, aggression.

Lives have been lost in the hands of persons who have not been made liable for any offense.

This has to stop.

The Congress of the Philippines has already passed Republic Act 9851: An Act Defining and Penalizing Crimes against International Humanitarian Law, Genocide and other Crimes against Humanity.

Today, we are casting a vote to further strengthen our commitment to fight such serious crimes.

By casting this vote, we take a step forward in defense of lives lost and lives that will be lost if we continue to fear institutions of accountability like the International Criminal Court.

Today, I cast my vote in favor of the Rome Statute of the International Criminal Court.

Gusto ko pong magpasalamat kay Ginoong Mike Arroyo.

Marahil magtataka kayo kung bakit ako nagpapasalamat sa kanya. Ito po ang dahilan. Nitong nagdaang weekend, nabasa ko ang isang kopya ng affidavit na kanyang pinirmahan kaugnay ng demanda niya sa isang resource ng Senate Blue Ribbon Committee. Ito ang demanda na perjury ni Ginoong Arroyo laban kay Ginoong Archie Po.

Natutuwa po ako dahil nakita ko na madaming bahagi ang affidavit ni Ginoong Arroyo na excerpts galing sa transcripts ng pagdinig ng ating Senate Blue Ribbon Committee.

Natutuwa po ako. Ibig kasing sabihin, naniniwala si Ginoong Arroyo sa Committee na ito. Naniniwala siya kaya nais niyang gamitin ang mga pinag-uusapan dito para sa demanda niya. Sampalataya siya na paniniwalaan ng korte ang mga transcripts mula sa Committee na ito.

Ganun pala. Kung para sa sarili niyang agenda at pakinabang, sampalataya si Ginoong Arroyo sa mga proseso ng Senate Blue Ribbon Committee.

Pero nagtataka pa din ako. Bakit hindi pumunta dito si Mr. Arroyo para magpaliwanag sa mga akusasyon laban sa kanya ng mga testigo ng Senado?

Uulitin ko. Kung pupunta dito si Mr. Arroyo, malaya niyang masasagot ang lahat ng mga akusasyon laban sa kanya. Sinisiguro ng komiteng ito ang patas na trato para kay Mr. Arroyo.

Ganun din ang gusto nating iparating sa kanyang kapatid, si Congressman Iggy Arroyo.

Sana, maintindihan ng kagalang-galang na kongresista na kailangang ipaliwanag niya sa publiko at patunayan sa taumbayan ang binitiwan niyang salita nuong nagdaang linggo.

At dito sa Senado pinakamagandang gawin ang pagpapaliwanag.

Sana, maintindihan ni Congressman Iggy Arroyo na hindi naman maaari na basta na lamang magbibitiw ng mga salita ang isang halal na kasapi ng kongreso at pagkatapos ay hindi na siya papayag na linawin ang sinabi niya sa ating mga kababayan. At ang masakit dito, magiging hadlang pa ang courtesy sa pagitan ng senado at kongreso sa paghahanap ng katotohanan sa likod ng mga binitiwang salita ni Congressman Iggy Arroyo.

Sana, maintindihan ng mga Arroyo na ang mga dahilan, excuse at rason na ginagamit nila ay halos hindi na pinaniniwalaan ng ating mga kababayan.

At sa tuwing gagamit sila ng dahilan, lalo lang silang nababaon sa malaking pagdududa ng sambayanan.

Hindi pa huli ang lahat.

Naghihintay pa rin ang komiteng ito ng Senado sa kanilang pagdalo. Bukas pa din ang aming imbitasyon.

At naghihintay pa din ang taumbayan ng katotohanan.

“Dito mo sa Senado ipaliwanag ang mga sinasabi mong mga kasinungalingan laban sa iyo. At ikaw ay bibigyan ng patas na oras at patas na trato,” he said.

“At nanawagan din ako na huwag tayong magtago sa likod ng medical certificate para iwasan ang pagdalo sa Senado,” he added.

Mr. Arroyo sent word through his lawyer that he would not be able to attend the hearing upon the advise of his doctors and that he needed to attend to his wife, former President Gloria Macapagal Arroyo, who just had a major operation on Wednesday.

The Blue Ribbon Committee had requested the Philippine Heart Center to check the veracity of the medical condition of Mr. Arroyo.

During the hearing, Lionair President Archibald Po revealed a wire transfer certificate amounting to $500,000 sent to US-based Robinson Helicopter Co. from LTA Inc. which served as downpayment to the five helicopters purchased through Lionair in 2004. Upon check at the Securities and Exchange Commission, Mr. Arroyo was listed as the Chairman and President as well as the majority stockholder of LTA Inc.

Lionair employee Edith Solano-Juguan also testified that she had been going to the LTA office monthly since the helicopters were purchased in 2004 up to May 2011 to collect from LTA employee Rowena del Rosario the monthly operating costs of the helicopters, such as fuel expenses, take-off and landing fees, and pilotage charges.

Two former pilots of the helicopters, Capt. Dennis Silvestre and Capt. Margarito Labastilla, also said during the hearing that they had been flying the Robinson Raven 1 helicopters and that they have flown Mr. Arroyo and members of his family a number of times on these helicopters.

The flight dispatcher of the helicopters, Domingo Lazo, testified that he only receives instructions from Mr. Arroyo for the flight plan of the helicopters which include the date, time, pilot, and passengers of the flight.

“So he (Mr. Arroyo) has complete control over these helicopters,” asked Sen. Guingona. To which, Mr. Lazo replied: “Yes.”