FG is at it again

Read the story below. There's another anomaly involving the First Gentleman. Again, FG got himself involved in another overpriced deal, which, according to Senator Jamby Madrigal, might run between US$ 18 million and US$ 90 million. It was allegedly brokered by Francis Chua, whom I remember meeting sometime in 2000 in an interview. Chua is allegedly very close to the First Family since he lead this group's founding sometime before 2000. This group is supposedly a counter-force to the PCCCIII of Lucio Tan, which, at that time, was very close to the Erap administration.

Another anomaly--Southrail documents are missing. Documents about this anomalous deal are again missing, just like what happened to the ZTE deal which Undersecretary Formoso lost right after the Boao forum.

And another--the Department of Education (DepEd) ruled that Jun Lozada should not be allowed to enter public schools to talk about the ZTE deal. What if, in some instance, Jun finds himself needing a toilet and it happens that he's near the Ramon Magsaysay High school along Espana, would he be allowed to enter the premises of that public school? Obviously, according to the DepEd, he's not allowed.

Such attempts at destroying documents and preventing people from knowing the truth, I believe, is more than enough evidence for the CBCP, former Senator Salonga and all the rest who are not convinced to call for Arroyo's resignation to reconsider their decision. These attempts at suppressing the truth are as clear as daylight. We must not blind ourselves.

If we want to know the truth, we must be ready to sacrifice everything for the Truth to come out. But if government agencies are being used by just one family to protect itself against further acrimonious accusations, then, what use are these calls for Arroyo to allow the truth to come out when it is very, very clear that she's not really willing to do so?


FG linked to another alleged overprice

By AUREA CALICA
The Philippine Star

Sen. Jamby Madrigal is seeking an investigation into the Bureau of Customs (BOC)’s purchase of allegedly overpriced x-ray scanning machines from a Chinese company without public bidding, reportedly upon the intervention of First Gentleman Jose Miguel Arroyo.

Madrigal said the alleged deal was brokered by a certain Francis Chua who is believed to be the former president of the Federation of Filipino-Chinese Chambers of Commerce and Industry Inc. (FFCCCII), a group supportive of the administration.

Madrigal’s call for an investigation is contained in Senate Resolution 317.

"It is estimated that the alleged overprice of the NICIS project may run between $18 million and $90 million for both project phases," Madrigal said.

The purchase of the x-ray machines is part of the administration’s so-called Non-Intrusive Container Inspection System (NICIS), which involves the installation of mobile or truck-mounted x-ray machines to scan container vans in the different ports of the country to prevent smuggling, facilitate trade and prevent tariff evasion. The NICIS project was implemented based on Executive Order 592 signed by President Arroyo on Dec. 15, 2006.

In her resolution, Madrigal said the Arroyo government, through the Department of Finance and the BOC, signed a concessional loan agreement with China on May 11, 2006 and on Jan. 15, 2007 to finance Phase 1 and 2 of the NCIS, respectively.

The loan for Phase 1 involves $50 million for 10 units of the x-ray machines and $100 million for 20 more units for Phase 2. The Export-Import Bank of China was assigned to process the loan while the Beijing-based Nuctech Co. Ltd. was China’s supplier for the project.

According to Madrigal, the NICIS project is part of the $1.109-billion loan agreement between the government and China covering the Northrail and Southrail projects. The amount is way above the usual pledges of development aid from a single country. The International Monetary Fund, the World Bank and Japan collectively promised $11.4 billion, with $1 billion more still being negotiated.

During the Nov. 2, 2007 budget hearing, BOC Commissioner Napoleon Morales said each unit of the x-ray machines cost $2.5 million.

But according to comparative international prices of x-ray machines based on results of public biddings for the Los Angeles Harbor Department and the Iceland State Trading Center, each unit of the x-ray scanning machines from Nuctech costs only $1.9 million on the average, the resolution read.

Senate witness Rodolfo Lozada Jr. mentioned during a hearing on the national broadband network deal controversy that the First Gentleman joined Customs and other officials in inspecting the x-ray scanning machines in China along with Chua.

"Why is the First Gentleman part of the visit to China to see the x-ray machines? Are we going to follow everything that China wants because the loan will come from it?" she asked.

Madrigal said some of the machines were reportedly defective and became non-operational a few months after their delivery.

She also questioned why the government had to purchase 30 machines when one would have been enough, based on the practice in other countries. Madrigal added that with the huge number of units purchased, the government should have negotiated a discount.

"The anomalies in the NICIS project may have arisen because of the lack of transparency in this government-to-government transaction, when it could have been done through public bidding," Madrigal said.

The president of Nuctech, Hu Haifeng, is a son of Chinese President Hu Jintao. Nuctech is the same supplier of the now suspended Cyber-Education project.

So far, Madrigal said BOC has accounted for only 16 units in different ports in the country.

She further noted that the BOC personnel who were trained in China in 2006 to operate the machines were all allegedly removed from their posts. "Why?" Madrigal asked.

Madrigal said she could not accept the argument of the BOC that it purchased a different model to justify the high unit cost, considering that more progressive countries were able to get x-ray machines from the same company for lower prices.

Chua reacts
In a text message to The STAR, Chua said the allegations might scare away potential Chinese direct investors.

"My role as investment envoy is to bridge China relations with the Philippines," he said in his text message.

"My primary concern is foreign direct investments such as Cosco’s proposed central shipping hub totaling $5 billion of private investment," he said.

"I will never interest myself in government-to-government projects since (they are) purely a matter between two states," Chua pointed out.

"Since my stint as federation president to this day, I have spent all of my time encouraging Chinese to do private business in the Philippines and ultimately generate more jobs.

"I lament that these allegations have deterred the investments of these multinational Chinese companies which could have generated thousands more jobs and infused billions more capital into the Philippines," he pointed out.