First Scandal: DPWH Sec. Rogelio Singson involved in midnight deal

This is the first scandal ever to hit the month-old Aquino administration. Let me re-print the article today published in the Philippine Daily Inquirer.

DPWH chief Singson linked to `midnight deal'

By Gil C. Cabacungan Jr.
Philippine Daily Inquirer
First Posted 00:12:00 08/01/2010

PUBLIC WORKS Secretary Rogelio Singson, as then president of Maynilad Water Services Inc., teamed up with then Philippine Amusement and Gaming Corp. (Pagcor) chair Efraim Genuino to push a water concession deal that would have supposedly deprived the government of at least P3.6 billion in water fees.

The deal between Pagcor and Maynilad involving the 3,877-square-meter Bagong Nayong Pilipino Entertainment City in Parañaque City was among the midnight deals that Genuino was said to have been pushing before he left Pagcor in June. But the board of the Metropolitan Waterworks and Sewerage System (MWSS) refused to uphold the deal, and the current Pagcor management has put it on hold pending further investigation.

Controversial DPWH Sec. Singson

Days before President Aquino was sworn into office on June 30, Genuino was purportedly calling MWSS board members to seek their approval for the deal that had been on the drawing board since the first quarter of 2009.


An MWSS board member, who declined to be identified because of the sensitive nature of the matter, said Singson wanted the contract in place before Genuino stepped down because the new Pagcor management might not play ball with Maynilad.


At that time, Singson had already met with Mr. Aquino at his residence on Times Street, Quezon City, and was rumored to be part of the then being formed Cabinet.


Singson’s comment


The Inquirer reached Singson last night for comment.


In a text message, he said that there was “nothing irregular” with the agreement between Maynilad and Pagcor, and that the latter “merely wanted to make sure [its] investors have water.”

He added: “The Pagcor City is within our concession, so we are putting up a reservoir to expand our service to Pagcor City, and the Las Piñas and Cavite areas.


“We just completed a similar reservoir in Villamor Air Base.” Singson said.


The President was asked by text message last night if he was aware of the “midnight deal.”


He replied: “First time I have heard about it. Let me make inquiries.”


According to the draft memorandum of agreement (MOA), a copy of which was obtained by the Inquirer, Maynilad wanted to take over the water concession for Entertainment City. It sought from Pagcor “gratuitous, exclusive, unhampered and unrestricted use of the property.”


Maynilad, which is controlled by Metro Pacific Investments Corp. of Manuel V. Pangilinan and DMCI Holdings, maintained that since Entertainment City was in Parañaque—which is part of its West zone franchise area from the MWSS (the East zone is controlled by the Ayala-owned Manila Water Services Inc.)—it should automatically get the contract.


Claim disputed

But some members of the MWSS management and board disputed Maynilad’s claim. At least two MWSS board members, who asked not to be named for fear of retaliation from the involved parties, said that since Entertainment City was located in a newly reclaimed area, it should be classified as a new and exclusive franchise area of the MWSS.


They pointed out that when Maynilad won the West zone in 1997, the MWSS explicitly named the parts of Parañaque, Manila and other areas of the West zone that were covered in its contract, and stated that the proposed site of Entertainment City was still under water.


They also noted that Quezon City was split into two zones, which was why the contract coverage should not be interpreted mainly by territory.


Bidding required


The same MWSS sources said the water utility should bid out the new franchise area and get the best deal for the government.


They said that at an estimated water consumption of 10 million liters a day, the MWSS could have charged a minimum concession fee of P1 per liter which, for one year, would amount to P3.65 billion, or more than enough to wipe out its debt of P2.5 billion.


To address the concerns of the MWSS management and board, Singson and Genuino obtained a ruling from the Office of the Government Corporate Counsel (OGCC), whose head, Raul Ragandang, is an MWSS board trustee.


The ruling basically upheld Maynilad’s view that since the Pagcor project was in Parañaque, it was covered by its West zone concession area.


In a letter to the MWSS board of trustees on May 19, Singson said: “As you may be aware, the OGCC has passed upon and reviewed the Pagcor MOA twice—in May 2009 and April 15, 2010. We wish to respectfully reiterate that the construction of a pumping station and water reservoir at the Bagong Nayong Pilipino Entertainment City in Parañaque City is part of our business plan and is pursuant to our commitment to deliver safe, adequate reliable and affordable water supply to our customers in the southern portion of the West zone.”


Approval deferred


Despite Singson’s appeals and Genuino’s phone calls, the MWSS deferred approval of the Maynilad-Pagcor MOA in its last board meeting before the change in administration.


The MWSS board members maintained that since Entertainment City was not part of its contract, Maynilad had no authority to enter into a water supply agreement with Pagcor.


The board members also argued that the MWSS should charge Maynilad an additional concession fee for getting a bonus expansion in its coverage area.


Citing as an example a landlord who is charging P10,000 a month for a 50-square-meter apartment, the MWSS source said the rent would go up to P15,000 a month if another 25 square meters were added to the apartment.


Confusing the issue


“I’m sorry that some MWSS officials are desperately trying to confuse the issues. I really don’t know why,” Singson said.


In a subsequent test message, Singson said former MWSS Administrator Diosdado Allado “has been blocking the agreement for some reason.”


“It is only Administrator Allado who thinks Pagcor City is not within Maynilad’s concession area,” he said, adding that Allado’s view “has been refuted by the OGCC.”


Singson also said “even former MWSS Chair Gabriel Claudio believed our position.”


Lightning rod


In less than two weeks in office, Singson has become a lightning rod of criticism from lawmakers who cite his close ties with Pangilinan’s Metro Pacific and construction giant DMCI as a potential source of conflict of interest in his capacity as public works secretary.


Earlier, he was in such a rush to take over MWSS that he informed then Chair Claudio in a letter that he was taking over as head of the water utility. (He later quit the MWSS post, invoking propriety.)


But in his State of the Nation Address on July 26, Mr. Aquino cited Singson for exposing and stopping the release of funds for dubious typhoon rehabilitation projects of the Department of Public Works and Highways, and for quickly resolving the water crisis in Metro Manila. With a report from Jerry Esplanada

So, Mr. President, what is your next step now? Will you still maintain Mr. Singson as part of your cabinet, considering that he is now involved in this?

People's Expose 1st Electronic Edition is now on PDF--Get it first!

Is Big Business now slowly entrenching itself inside the government bureaucracy? It seems like it.

Jose Almendras, former Ayala Group executive now heads the Energy department. And we all know that the Ayalas are now poised to enter into the energy generation sector very soon, the first with Angat.

Rogelio Singson again made another faux pas, with his attempt to sit as chair of the Toll Regulatory Board (TRB), a government agency which transacts with his former bosses over at MetroPacific Investments Corporation, the one behind Maynilad Water.

For more of this big business intrusions in government bureaucracy, read the first online newsletter of New Philippine Revolution. Get it by emailing me for a copy at mangubat.patricio@gmail.com. You can also get it at http://pinoyobserver.wordpress.com/.

Thanks for supporting me in this campaign to expose the truth.

Rogelio Singson's sudden attack of delicadeza and Customs Chief's Alvarez empty fish net

New DPWH secretary Rogelio "Babes" Singson had a sudden attack of "delicadeza" when he purportedly gave up as "chair" of the Metropolitan Waterworks and Sewerage Systems or MWSS citing "conflict of interest".



Singson only had this "epiphany" shortly after an interview over DZMM and when he already assumed the post. And to think that Singson is proud of telling the people that he's a "minister" of God.

If he, really, is a minister, then, Singson would have the decency of resigning altogether as DPWH secretary, not just giving up the MWSS post. Imagine, he just barely warmed his seat and he now has this problem about "delicadeza"? How many more delicadeza-related issues would he encounter in the future? Noynoy has six more years to go.

Singson, before assuming the DPWH post, is the top executive of Maynilad, a public utilities corporation. If Singson really felt "hiya", he should have refused the offer of Noynoy Aquino the very first time he was offered the public works portfolio.



Singson only gave up the chairmanship after media reminded him of a conflict of interest. I don't believe that he did not know that there's a problem prior to assuming the post.


Fact is, his very appointment smacks of the absence of delicadeza.


He's the representative of Big Business in government and we all know that Big Business right now is eye-ing other government businesses and services which the State plans to privatize.


Had we not pointed this out to him, Singson would not have relented and would have taken over the MWSS with impunity. Such is the lack of delicadeza of a few of the President's men.


What is there at the MWSS that is so juicy and so salivating that Singson wants nothing more than its chairmanship?


Water rates. MWSS is now acting as the regulatory body that protects the public's interest in water services of two concessionaires--Maynilad and Manila Water. MWSS is the one who approves water rates. Probably, Singson is so desirous to control it because his backers are salivating on increasing water rates.


Woe is the Filipino consumer! We already have a cartel over oil prices. We have a mammoth and inefficient electricity cartel, likewise in rice cartel. Now, even water is slowly being cartelized and commodified.

By the way, it's already SATURDAY AND CUSTOMS COMMISSIONER ANGELITO ALVAREZ IS STILL TRYING TO FIND A BIG FISH INSIDE THE BUREAU WILLING TO BE HIS FIRST GUINEA PIG.

WHY IS IT TAKING HIM TOO LONG TO PRESENT ONE WHEN HE BRAGS THAT HE KNOWS THE "INS" AND "OUTS" OF THE BUREAU?

ALVAREZ IS A VETERAN PLAYER, WITH MORE THAN 20 YEARS EXPERIENCE IN THE FREIGHT AND CUSTOMS INDUSTRY.

SO MUCH FOR THIS GUY WITH LOTS OF AIR IN HIM. WELL, WHAT DO YOU EXPECT FROM A GUY WHO CHEATED HIS WAY TO A GOLF WIN?

A Singson to head DPWH and a politico now at DBM: Lopez proxy in energy department?

The appointment of a former campaign manager as Budget Management secretary is understandable. Butch Abad, the Liberal party campaign manager, is a former politician. He will head the DBM, the agency tasked specifically on disbursements of government funds. And you know what will definitely happen next?

Expect those local executives who supported Noynoy Aquino to get what they want. Expect other local executives who jumped ship to be pampered with pork barrel funds. And expect those who are intending to follow suit to get the same. As the saying goes, politics is a rewarding enterprise.

With a former politico as the DBM head, what will then happen to the anti-poverty program of the government? What will be prioritized first? Will the Aquino administration limit debt servicing in exchange for increasing the budgets of needy agencies such as DECS and others? Or will they put greater emphasis on giving those meaty pork to those who rah-rah with them last elections?

Another one, a certain Rogelio Singson, president of Maynilad waterworks system, is being eyed to head the public works department. Nothing wrong, except that he's a very close relative of Ilocos governor Chavit Singson, who happens to be very close to the previous dispensation AND a certified big time operator here in the Philippines.

A Singson to head DPWH? We all know what happens inside that old building along North Bay boulevard. DPWH, according to Transparency Network, is one of the most graft-ridden agencies in the Republik.

While Singson heads the Maynilad, look at our water rates--they are higher than water rates in the entire ASEAN region. Imagine, a country rich in water resources selling water to its citizens at a price they can't ill-afford!

Probably, Singson is good in numbers. If he prices cents per cubic meter of water, he can very well price ten pesos for every cubic inch of asphalt. Or even higher. How then can we sleep well at night knowing that our money is being treated like water?

Jose Almendras, another water executive, is being asked to head the energy department. Are Singson and Almendras now the Lopez company proxies in the Aquino administration? Probably yes.

We all know that the Lopezes' have a stake in the energy generation department, a direct competitor of close Arroyo associates, the Aboitiz.

Is the new administration now saying err assuring the Lopezes, very close political allies of the Aquinos, that what they lost in Meralco, they will now regain by putting their man at the helm of the energy department?

Hmmm....at this early, what we are seeing are danger signs ahead. Imagine, two critical government agencies--public works and energy---in the hands of proxies of the Lopezes. Are we now saying, Mr. President that all is game in the name of politics?

Its like saying, go after big-time rice smugglers yet spare those who are responsible for jacking up our water and electricity rates.

Wow. Talk about "new administration", this one is showing signs of being old.