|
By Alecks P. Pabico, Philippine Center for
Investigative Journalism
Last of two parts
Editor’s note: Part one began to
explore Romulo Neri’s background, saying competence is not the
issue with his appointment to the Social Security System (SSS). The
story also reported how he was seen as a leader, rather than as a
manager, at the National Economic and Development Authority, or NEDA—and
yet he was considered an outsider
The way one director understood it, Romulo Neri
played politics as a matter of course in public policy. The NEDA
secretariat and other oversight bureaucracies are to exert effort in
providing full information to decide policy, he said, and that
necessitated engaging with politicians and playing the game of
politics.
From his own experience working with him, the
Congressional Planning and Budget Office’s Rodolfo Vicerra
believes his predecessor—Neri—played politics not in the sense
of politicking, which he said the former chief always tried to
avoid. “It’s more of realpolitik,” Vicerra explained, “as he
always wants to involve himself in policy issues. And he has his
advocacies.”
Doing so may have made the NEDA secretariat more
aware of the nature of public policy in their work, but it also made
them vulnerable, Vicerra said. “It put the organization and
employees unprecedently in an unrequitedly bad light,” he added,
though maintaining that the secretariat has remained
nonpartisan—its own standard of integrity and professionalism
undiminished by this initiation into politics.
But Neri’s pragmatism, the NEDA staff also
claimed, conflicted with his reformist image. Some would say on
hindsight that this probably explains why he is seemingly not
appalled by unethical behavior, that is, corruption by way of
commissions, extortions, kickbacks and the like, because these make
things move or work. Others find it ironic that he wanted reforms
yet “still wants to be in the good graces of this government.”
Still others comment that since he is a “political animal”
himself, it was not surprising that he had been offered bribes as he
had admitted.
Of his consultants, estranged friend Rodolfo
Noel “Jun” Lozada Jr., who was one of the whistleblowers in the
National Broadband Network scandal, probably best describes Neri’s
reform program, which he said is more after adjustments of the
system, how to make it work or how to control it to make it work.
“He has a very good grasp of the system, both
its functional and dysfunctional parts. And from my perspective, he
is one of the most knowledgeable persons on how to adjust the
system,” Lozada said, adding that Neri is in his elements when he
speaks of reforms within the system.
A bevy of consultants
The entire time Neri was with NEDA, his
consultants proved to be a thorny issue. A case in point was the
more than P20,000 salary he was able to wangle for his driver, which
the NEDA staff considered scandalous. The average pay of drivers at
NEDA at the time was only P8,000 to P10,000 a month. But Neri was
able to justify the amount, and to which the Civil Service
Commission consented, by changing the driver’s terms of reference
to one of a “consultant on confidential matters.”
While already at Commission on Higher Education,
Neri had asked NEDA for the renewal of contracts of technical
consultants who were all assigned to him when he was director
general. He specifically requested that lawyers Paul Lentejas and
Heraldo Dacayo Jr., Engr. Arsenio Mesiona, Tomas Eizaguirre and
Antonio Manalo be detailed to the commission by extending the
memorandum of agreement between the two agencies. Neri claimed the
extension was “necessary in order to ensure the continuity of the
special assignments, such as, but not limited to the NEDA
Productivity Enhancement Projects” that he had initiated when he
was still with NEDA.
Neri similarly requested for the assignment
extension of four NEDA personnel—Lourdes Reyes (executive
assistant), Felino Torsar (administrative aide 4), Antonio Enriquez
(administrative aide 3), and Antonio Alvarado (close-in
security)—with the commission so they could provide him
assistance. At the same time, he asked that the NEDA support
vehicle, an Isuzu Crosswind, and three mobile-phone units the four
NEDA staff were using be retained.
Out of courtesy to a former director general,
NEDA acceded to extending the detail of all except his lawyers until
March 30. Neri had wanted another extension in anticipation of his
return to NEDA in August, but it appears there won’t be any
forthcoming as it puts the agency in a very awkward situation as far
as the Commission on Audit is concerned. In fact, the audit agency
has already issued a notice, questioning the propriety of the detail
arrangement.
Because he tended to overlook employee
relations, Neri was said to have left to his consultants the
handling of matters, usually administrative or legal in scope, that
had to do with staff concerns.
Edwin Daiwey, acting assistant director of the
Development Information at NEDA, said, “He [Neri] let these
consultants handle employee-related matters like the COLA [cost of
living allowance] back pay, employee complaints [one case involved a
regional director accused of sexual harassment], and other matters
that had nothing to do with socioeconomic staff work.”
The NEDA staff would hear other names of
consultants, such as Rody Cruz, said to be a nephew of construction
magnate Felipe Cruz, who is a close friend of Neri. The younger Cruz
is alleged to be another of Neri’s operators who is involved more
in the execution phase of NEDA-approved contracts. Francis Chua, the
former president of the influential Federation of Filipino-Chinese
Chamber of Commerce and Industry, and his son Brian were also
reportedly close to him.
Golfing buddies
A peek into who Neri plays golf with at the
exclusive Wack Wack Golf and Country Club in Mandaluyong City could
also give clues as to who the former NEDA chief prefers to mingle
with. Between December 10, 2006 and January 5 this year, Neri played
golf 21 times, usually Saturdays and Sundays. His regular playing
partners were some of his consultants like Lozada, the Cruzes
(Felipe and Rody), Army Col. Maximo Caro, Cesar Lacuna and a Col.
Philip Cruz.
During that same period, Neri twice played golf
with businessman Donald Dee, and once with former Supreme Court
Justice Jose Melo, Rufino Javier (no confirmation if he was the
former elections commissioner or a namesake), Art Tuason, Joel Muyco,
an E. Choa, a Dr. Lim, and a certain Estrella.
At past 8 a.m. on December 29, 2006, he played
golf with Executive Secretary Eduardo Ermita as guests of Francisco
Ortigas. On January 5, shortly before noon, he played with
broadcaster Rey Langit and Cerge Remonde, chief of the Presidential
Management Staff.
Having consultants is not an issue, explained a
senior director, pointing out that the NEDA Secretariat has had
consultants all the time in different capacities and at different
levels, especially when projects called for it.
But what is clear is that the practice had no
precedent. Of NEDA’s directors general, it was only Neri who hired
consultants specifically for his office.
Former NEDA chief Solita Monsod, who in her time
saw no need for consultants as she relied solely on the expertise of
the staff, does agree that as an agency NEDA can hire consultants.
But that privilege, she said, does not extend to the director
general.
Cielito Habito, the socioeconomic planning
secretary during the administration of Fidel Ramos, said he didn’t
even realize that the director general could hire consultants.
Compromised communications
By relying on consultants like Lozada, the NEDA
staff also pointed out that Neri did not maximize, and at times even
bypassed, the NEDA Technical Secretariat, which serves as the
research and technical support of the NEDA Board.
During his watch, Neri allowed an unwieldy
interplay of the official and unofficial actors and processes of
policy, politics and patronage at NEDA.
In the Senate hearings on the broadband deal,
Lozada, who was almost like Neri’s alter ego, admitted that his
job as consultant involved looking at the deal structure of proposed
projects, or in Neri’s own words, “moderating the greed” of
project proponents both from the government and private sector.
This set-up, mid-level division heads argue, had
a negative effect on the usual flow of information and
decision-making critical to the institutional stability of NEDA.
It’s hard for the NEDA Secretariat to own, defend decisions,
positions or communications that did not pass through it, they said.
There are indications that some “official”
communications in connection with the broadband deal and the
cyber-education project could be the handiwork of Neri’s
consultants and not of the NEDA staff. One such document is the
letter of Neri to Chinese Ambassador Li Jinjun bearing the supposed
“FG” marginal note that Senator Jamby Madrigal mistook as the
initials for “First Gentleman,” the President’s husband, as
proof of his alleged involvement in the deal. (NEDA corrected the
senator as her copy did not have the letter “I” after “FG”
to signify the original endorsement for “FGI/PIS” referring to
Florante G. Igtiben, chief of the Asia-Pacific Division of the
Public Investment Staff or PIS that handles projects funded by
China.)
Had the senator been more discerning, she could
have examined that letter and noted what were apparent
discrepancies. For one, NEDA staff claimed, the letter was not
written in the style of NEDA. The salutation part did not
specifically address the ambassador using his title and surname. The
use of the phrase “your undying support” at the end of the body
of the letter was rather unusual. NEDA as spelled out lacked the
word “and.” Even the leading, the space between lines of text,
was not in accordance with NEDA official communications. Besides, it
appeared to have been printed without using the official NEDA
letterhead.
Plus, the barcode at the bottom of the page
indicated that the letter was received by the Public Investment
Staff, instead of having originated from it under normal
circumstances. The letter was considered “official” only in the
sense that it bore Neri’s signature.
‘Beholden to the President’
“He appeared to be a very straight guy at
first, until the NEDA staff started hearing about corruption
allegations in the media,” said another employee, particularly
referring to the controversy over the allegedly anomalous broadband
project awarded to the Chinese firm ZTE Corp., that first broke out
in April 2007.
Neri was the NEDA chief when the $330-million
broadband deal was approved. In one of the hearings conducted by the
Senate on the scrapped project, Neri testified that then Commission
on Elections Chairman Benjamin Abalos Sr. tried to offer him a
P200-million bribe to facilitate the project’s approval.
But when pressed by senators if he was ordered
by President Gloria Arroyo to prioritize ZTE and to approve the
project despite Neri’s report to her of the alleged bribery by
Abalos, he refused to answer and instead invoked executive
privilege. Many believed Neri’s conversations with Arroyo could
have implicated her in the alleged bribery and overpricing that
attended the broadband deal, as Senate witnesses had testified.
“Neri gave us the impression that he is
beholden to the President and whatever she says he will abide
[by],” a NEDA employee said. Many still recall with a sense of
pride how former directors general had strong convictions who cannot
be dictated or coerced upon even by the President.
Even Monsod, whose term was credited for turning
around the agency’s image of a Marcos rubber stamp, could not hide
her disgust at how NEDA had sunk to its “lowest point” under
Neri.
At a University of the Philippines forum in
October last year, the feisty economist, along with past NEDA
directors general Gerardo Sicat, Cayetano Paderanga, Medalla, Habito
and Canlas, disagreed with Neri’s portrayal of a “weak NEDA”
in his first and only Senate testimony on the broadband deal.
Neri said NEDA’s role only entailed approving
projects based on their viability and consistency with the
country’s long-term development goals and not in determining how
it would be funded in the best possible way. Project approval, he
added, was a collegial function of the NEDA-Investment Coordinating
Committee, of which he was just one member.
By saying such things, Neri indicated that the
independence and integrity of the country’s premier social and
economic development planning and policy coordinating body had been
compromised, Monson explained.
For this reason, many have viewed with alarm
Neri’s recent appointment by President Arroyo to head the SSS,
with groups like the Makati Business Club questioning his
“intestinal fortitude to be able to withstand the pressures from
the powers that be and protect the interest of SSS members.”
But what is even curious about the appointment
is President Arroyo’s July 8 issuance of Administrative Order 232
clustering the existing social welfare programs of the SSS,
Department of Social Welfare and Development, Department of Health,
Government Service Insurance System, and other agencies under a
National Social Welfare Program to be overseen by the SSS
Administrator, who is bestowed with Cabinet rank.
Ermita was candid enough to disclose the reason.
As a member of Mrs. Arroyo’s Cabinet, Neri, he cheerfully said,
remains covered by executive privilege.
Still, some at NEDA would like to give their
former boss the benefit of the doubt. “I believe he has a basic
decency, although I am not sure about his consultants,” one
director said. “He may have wanted to please several masters,
maybe he was trying to differentiate the technical staff from his
other dealings,” others said. Or that he was mediating probably in
the broadband deal without knowing that he heads the agency that
evaluated it.
Not privy to all the events surrounding the
broadband scandal, Vicerra said he is not one to judge Neri. But he
is certain that he had his reasons for doing what he did. “As far
as I’m concerned, he is one person who thinks well in advance.
Every major decision or action he does is well thought out.”
Neri’s thinking process, he adds, is not only that of an MBA
holder but of someone who consults the I Ching (also called the
“Book of Changes,” one of the oldest Chinese classic texts) to
guide him on how to think and act.
Yet for an I Ching practitioner, it is quite a
conundrum that Neri seems not ready to accept the inevitability of
change for the government he serves.
|
