Press Release
February 6, 2009

MIRIAM SLAMS WORLD BANK, RESUMES PROBE

Sen. Miriam Defensor Santiago, chair of the economic affairs committee, called for a formal protest by the foreign affairs department, over the World Bank refusal to give the Senate a copy of its Referral Report on three blacklisted Filipino construction firms.

"I was being polite, and dutifully observed protocol by first requesting for waiver of WB confidentiality. All I got for my pains was a summary refusal. This is a gross manifestation of the antediluvian mentality that all developing states are beggars to be ignored at whim," she said.

Santiago said that yesterday (February 6) she received a letter from WB Country Director Bert Hofman, stating that "the confidentiality of the so-called Referral Report, which was shared with the relevant authorities in the Philippines , should be respected and therefore the report cannot be shared with the Senate."

"In effect, the WB is saying that the finance secretary and the Ombudsman are relevant authorities, but not the Senate. I educate those hoity-toity WB lawyers that in the Philippines , a public hearing is a constitutionally protected power of the Senate," she said.

Santiago said that since the WB is on Philippine territory, it is governed by our Constitution.

"Under international law, WB has to take our legal system as it finds it. If not, we can evict them," she said.

Santiago said that under international comity or courtesy, the WB legal department should at least have explained to her the legal basis for the refusal, instead of brushing away her request with just one sentence.

Santiago said that by comparison, even the UN Secretary General has the duty to waive immunity under the 1946 Convention on the Privileges and Immunities of the UN.

"Even the UN Secretary General has the duty, repeat, the duty, to waive immunity, when he believes that immunity would impede the cause of justice, and can be waived without prejudice to the interest of the UN," she said.

Santiago said that out of courtesy to the Senate, Hofman should at least have directed the legal department to submit a legal memorandum to the Senate.

"Mr. Hofman is impeding a Senate inquiry in aid of legislation. It is insensitive for the WB to fail to explain why giving the Senate a copy of the Referral Report would prejudice the WB," she said.

Santiago , who is also chair of the Senate foreign relations committee, said that the WB does not have a Headquarters Agreement with the Philippines .

"No Headquarters Agreement, no immunity, no confidentiality. The provisions of the 1947 Convention on the Privileges and Immunities of the Specialized Agencies are obsolescent at best and obsolete at worse," she said.

In her reply sent yesterday, February 6, immediately after receiving Hofman's letter, Santiago virtually lectured the country director, pointing out that under international law, the immunity principle has evolved from an absolute rule to a relative rule. (See enclosed Santiago letter).

"In the final analysis, it is the Philippine Supreme Court which has power to decide whether there are compelling reasons to rebut the presumption of confidentiality made by the World Bank. It is only a presumption, and this is the right time to test this in a Philippine court. It is arrogance like this which gives rise to the spreading call of the international community to revamp the UN system because it is skewed in favor of rich states. They may be richer, but there are more poorer states," she said.

Santiago also set the resumption of the hearing on the World Bank scandal for Thursday, 12 February.

The economic affairs committee has sent out invitations to certain Filipino public figures mentioned in news report alleging that they were implicated in World Bank documents, namely: First Gentleman Mike Arroyo, former Rep. Prospero Pichay, former Rep. Jerome Paras, former DPWH Sec. Florante Soriquez, DPWH Boy Belleza, Project Director Lope Adriano, and DPWH Asst. Director Tito Miranda.

The Committee also issued subpoena duces tecum (order to bring the WB Referral Report) to: Finance Secretary Margarito Teves and Ombudsman Merceditas Gutierrez.

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