MANILA, Philippines—In 2002, President Gloria Macapagal-Arroyo’s husband met “at least 20 times” with the owner of one of three Filipino construction firms now blacklisted by the World Bank.

This startling disclosure surfaced Tuesday at the two-hour inquiry of the Senate committee on economic affairs into the blacklisting of E.C. de Luna Construction Corp., Cavite Ideal International Construction and Development Corp. and CM Pancho Construction Inc. for purported corrupt and fraudulent practices in connection with a national road project financed by the World Bank.

The name of Jose Miguel “Mike” Arroyo was dragged into yet another corruption scandal when Eduardo de Luna, president of E.C. de Luna Construction, admitted to the committee chaired by Sen. Miriam Defensor-Santiago that he knew the President’s husband.

Under questioning by Sen. Panfilo Lacson, De Luna said he and Mike Arroyo had stood together as godfathers at a baptism. But he was quick to say that “I’m not close to the First Gentleman,” and that he had met with the latter only thrice.

At the end of the inquiry, Santiago said she would not hold another hearing if Lacson fails to produce witnesses to attest to Mike Arroyo’s involvement in the blacklisted firm.

But Santiago said Ombudsman Merceditas Gutierrez should be impeached for “gross neglect of duty” for her inaction despite the World Bank findings, and called for the sacking of Finance Secretary Margarito Teves and Public Works Secretary Hermogenes Ebdane.

All guilty

The three officials are “prima facie guilty,” according to Santiago.

“The secretary of finance is guilty. The Ombudsman is guilty. The secretary of public works is guilty,” she said.

“Why? Because the World Bank claims that as early as November 2007, it had already given these three agencies and officials a report concerning the investigation of the three firms’ alleged collusion, which is defined as a crime in the penal code.”

Of the three officials, only Ebdane showed up at the inquiry.

Santiago said she felt “insulted” and “homicidal” at the failure of Teves and Gutierrez to even send representatives.

She said she wanted to cite them for contempt, or send them to the Pasay City jail, for ignoring her committee’s summonses.

Santiago pointed out that it had been three months since Gutierrez received the World Bank report.

“Until now they are still investigating. What kind of an Ombudsman is that?” the senator said, adding:

“She claims that there is a rule within the Ombudsman that while a preliminary investigation is under way, there can be no disclosure of the personalities or the events that are under investigation. Is she claiming that the Ombudsman is higher than the Philippine Senate?”

Asked how she could come up with a committee report after a two-hour inquiry, Santiago said: “What I am saying is that there was no point in today’s hearing. They are all under oath but they are not afraid of perjury or the crime of false testimony. I feel insulted.”

Appointments book

Reacting to De Luna’s claim that he was not close to Ms Arroyo’s husband, Lacson produced the latter’s “personal appointments book” for 2002.

Lacson said the book had been given to him by Eugenio “Udong” Mahusay Jr., who had worked as a messenger for Mike Arroyo.

Mahusay was Lacson’s witness in the 2003 Senate inquiry into Mike Arroyo’s purported secret bank accounts abroad. He eventually recanted his statements regarding the latter’s purported money-laundering activities.

Neither the Senate nor Lacson was able to prove the allegation of money-laundering against Mike Arroyo.

Lacson told De Luna: “I will show you the entries here. You met with the First Gentleman at least 20 times.”

De Luna said he could only recall meeting Mike Arroyo thrice “outside.”

Lacson pointed out that the entries showed meetings at the LTA Building—where Mike Arroyo holds office—in Makati City.

De Luna claimed that he was taken to the LTA Building by Willy Tecson, a contractor, and Resty de Quiros, a former dzRH radio reporter who is now a board member of the Philippine Charity Sweepstakes Office.

Dates and places

When De Luna failed to recount how many times he was brought to the LTA Building, Lacson said he would “refresh” the witness’ memory.

He said De Luna met with Mike Arroyo on March 1, 4 p.m., at the LTA; June 20, 2002, 6 p.m., at the Manila Peninsula business center; July 5, 2 p.m., at the LTA; Sept. 6, 4 p.m., and Sept. 30, 5 p.m., with De Quiros; Oct. 4, 5 p.m. with De Quiros; March 27, 2 p.m.; April 30, 7 p.m., with then Rep. Simeon Datumanong at Makati Shangri-La Hotel; Dec. 8, 4 p.m., with De Quiros; May 6, 4 p.m., with then Agriculture Undersecretary Jocelyn “Joc-joc” Bolante and De Quiros; Dec. 29, 2 p.m. with De Quiros; Oct. 22, 4 p.m.; Oct. 18, 5 p.m. with Bolante and De Quiros; Oct 17 with Tecson; and Oct. 16 with Tecson.

“And so on and so forth. Most of the appointments were at 2, 4 and 5 p.m.,” Lacson said. “I don’t know if you were together, but you were all there.”

De Luna said it was De Quiros who had introduced him to Mike Arroyo.

Relevance

Lacson quoted a columnist as saying that a public works project could not get off the ground despite P70 million having been given to a powerful person.

Ruling on a point of order, Santiago asked about the relevance of the details revealed by Lacson to the World Bank findings.

“There is no relevance, but we shall follow the rule of court that questions otherwise extraneous to the subject matter of the trial may be allowed to establish the credibility of the witness,” she said.

But Lacson said: “There is relevance in the sense that if there is [collusion] going on during the bidding of this project, how come it’s happening? How come some big contractors manage to pocket big contracts? Is there a syndicate at the [Department of Public Works and Highways]? Are there fixers? These are questions that will be asked later on, and I will mention some names.”

Ordered by Santiago to comment, De Luna said he knew nothing about what Lacson was saying.

Where’s the proof?

At the Palace, officials bristled at suggestions that a blacklisted contractor had close ties with Ms Arroyo’s husband.

“I’m sure these incidents, or supposed reports, can be subjected to further validation,” Press Secretary Jesus Dureza told reporters.

Dureza lamented that the First Family, specifically Mike Arroyo, had been unduly dragged into controversies:

“Up to now there’s no single iota of evidence brought to court. People who malign the First Gentleman should come up with something more than just indirect implications.

“The First Gentleman, just like any other private citizen, deserves fair treatment.”

Ruy Rondain, the spokesperson of Mike Arroyo, said Lacson’s attempts to link his principal to De Luna were “unfounded.”

He said Mike Arroyo was not even mentioned, much less blacklisted, by the World Bank.

“As we have been saying right from the start, the First Gentleman does not interfere and will never interfere in government matters and transactions,” Rondain said in a statement.

He said Mike Arroyo was a private citizen who preferred to focus on charity work and a scholarship program for medical students called “Doctors to the Barrio.”

“It is his sincere hope that he be left alone in these endeavors,” Rondain said.

Ms Arroyo’s confidence

At the inquiry, Santiago said removing Teves and Ebdane was in order.

“If you remove people from their offices, it sends a very clear message that the President will not countenance corruption in her administration,” she said.

“It could be that the President’s judgment [is] wrong, but that is a risk we have to take.”

Santiago said the only way to end collusion among contractors was to “make heads roll.”

“If we are going to exonerate people all the time, we might as well not exist in the Senate; we should not hold hearings anymore,” she said.

But Dureza dismissed Santiago’s call for the dismissal of Teves and Ebdane.

“Well, the Palace continues to value the services, of course, of these officials,” Dureza said. “These two gentlemen have the confidence of the President.”

Ebdane defended himself by saying that he had actually recommended the “dropping of the funding” for the road project as early as 2007, while the World Bank blacklisted the construction firms only this month.

He said that while he was serving “at the pleasure of the President,” he saw “no need to kick me out.”

Unintended snub

Ombudsman Gutierrez could not be reached all day Tuesday despite repeated calls to her mobile phone.

In a statement issued at 4 p.m. Tuesday, Assistant Ombudsman Jose de Jesus said: “It was not the intention of the Ombudsman to disappoint [Santiago].”

De Jesus said Gutierrez had sent an “official statement” in reply to the request of Santiago’s committee.

He said Gutierrez had thought that “the letter she sent already served the purpose of the invitation.” With reports from TJ Burgonio, Edson C. Tandoc Jr. and Stephanie Ryans