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In , while cases in Switzerland and in a U. In contrast, the civil suit against Disini dragged on for a longer time. It took 25 years before the court could resolve Civil Case No.

During the early course of its investigation, the PCGG successfully convinced former Herdis executives to be whistle-blowers. Jacob had claimed that Disini's commissions were deposited in his personal Swiss bank accounts and not to Herdis' accounts.

Thus, in , then Ombudsman Simeon Marcelo filed two criminal cases against Disini, one for bribery and the other for violation of Section 4 a of the Anti-Graft and Corrupt Practices Act, which prohibits a private individual from exploiting close personal ties with a public official in order to gain some pecuniary or material advantage.

Consequently, Disini was arrested but was later released on PhP54, bail. However, despite establishing the fact that Marcos and Disini were close associates and relatives by affinity and that Marcos acted in favour of Disini as Westinghouse's special agent, the court could not find preponderant evidence that the Marcoses received any commissions from the deal.

Recovery of the Disini commissions has been made even more uncertain after his death in The government's deal in with the Zhongxing Telecommunications Equipment ZTE Company, a Chinese state-controlled firm, is another political controversy arising from a dubious big-item procurement — the NBN project.

It is a complicated case arising from the quarrel for profit and commissions between two competing groups with powerful political sponsors.

At the time of the scandal, the unpopular GMA administration was already beleaguered by other election-related controversies, such as the Hello Garci scandal and the Fertilizer Fund Scam.

De Venecia's group, Amsterdam Holdings, Inc. Later, Joey De Venecia led in exposing anomalies in the deal. On 11 September , acting on a complaint from a House representative, the Supreme Court issued a temporary restraining order for the project.

Despite the contract's cancellation, the SBRC decided to continue its investigation. Two years later, it recommended further investigation with the view of filing graft charges against the president and her spouse, House Speaker de Venecia and his son, Comelec chairman Abalos, NEDA Secretary Romulo Neri, some whistle-blowers and other government officials involved SBRC, , pp.

His friend and technical adviser, Rodolfo Lozada, was sent to Hong Kong to avoid testifying before the Senate. In October , amidst the Senate inquiry, Abalos resigned from his post as the Comelec chair.

Based on this agreement, the Philippine government signed an memorandum of understanding with ZTE, allowing the latter to invest in information technology projects in the Philippines, including the NBN project SBRC, , pp.

In September , China's Export—Import Bank indicated its intention to fund the project as a loan to the Philippines. The two proposals bore different implications in terms of ownership and control.

AHI's BOT scheme meant that the private company would run the enterprise until its agreed date of transfer to the government.

In contrast, the ZTE proposal meant that the broadband network would be owned and operated by the Philippine government while the procurement of equipment, services, and financing would come from China People of the Philippines vs.

Arroyo et al. The SBRC report suggested several improprieties committed by government officials and private individuals in the deal. At the centre of the political controversy were Comelec Chair Abalos and FG Arroyo, alleged brokers who received commissions for their services.

Both Abalos and Arroyo, as a private individual though married to the president, had no official capacity to intervene in the deal.

Testimonial evidence established Abalos' lobbying and bribery attempts. The SBRC report also found it improper for the president to be playing golf and having lunch at ZTE's Shenzhen headquarters in November since the company was lobbying for a contract.

It further pointed out the president's tolerance of corruption, as she knew about Abalos' bribe offer to Neri as well as other irregularities in the broadband contract SBRC, , pp.

Nevertheless, he showed his hand at influencing government by inviting the DOTC Secretary Mendoza for breakfast at his home.

The SBRC argued that both he and his son attempted to commit graft since by law, relatives of the House Speaker up to the third civil degree, were not supposed to intervene or engage in a business, transaction or contract with the government.

Ombudsman Merceditas Gutierrez was Mike Arroyo's schoolmate in one of the country's prestigious universities. Prior to her appointment as Ombudsman, she was GMA's former justice secretary.

The persecution of GMA and other government officials began. The House of Representatives impeached Ombudsman Gutierrez and she resigned in April before the conviction trial at the Senate.

It should be noted that, contrary to tradition, it was the retiring Carpio-Morales who swore in Aquino as president and not then Supreme Court Chief Justice Renato Corona.

Corona, whom Aquino resented for accepting GMA's midnight appointment as chief justice, was later impeached Batalla et al. The charge against GMA et al.

In hindsight, the claims advanced by the Ombudsman in its case reflected the bias favouring the previous Senate testimonies of de Venecia and others in the opposition.

In late , GMA and Abalos were charged and jailed for electoral fraud. Both men were freed after posting bail on the day of their arrest.

On 1 March , the government prosecution finished presenting its case before the Sandiganbayan. Soon after, the accused asked the court to allow them to file a demurrer to evidence.

A demurrer to evidence is a motion to dismiss the case for insufficiency of evidence. On 24 June , the Sandiganbayan granted the request and as provided by the rules of criminal procedure, gave Arroyo et al.

Consequently, the accused individuals separately filed their motions for dismissal. On 25 August , the Sandiganbayan issued its resolution exonerating the Arroyo spouses, Abalos and Mendoza for lack of evidence to establish allegations of overpricing, the existence of a conspiracy and the disadvantages of the ZTE—NBN contract Macapagal-Arroyo vs.

People of the Philippines and Sandiganbayan , The weaknesses of Philippine governance institutions to curb grand corruption in government procurement projects during the past half-century could be gathered from a comparison of the two scandals.

Both scandals share a number of elements from the process of contracting to their resolution. First, an opportunity for corruption existed based on executive agreements that did not undergo competitive public bidding.

Although transpiring under different political regimes, one autocratic and the other democratic, the BNPP and ZTE projects were both based on top-level agreements with foreign entities that made contracting less transparent to the public.

Second, that executive agreements could be made without competitive public bidding encouraged the formation of corrupt rent-seeking relationships at the top levels of government.

The two megaprojects revealed the importance of brokers and political sponsors—promoters in such relationships.

Particularly, they were crucial to easing out the competition and successfully closing deals between the rent-seeking firm and the government.

Third, the lack of transparency in government contracting made the projects susceptible to public allegations of improprieties, which served to bolster the political opposition.

Foreign media exposed the anomalous BNPP contract, which drummed up local opposition not only for the corruption but also for the nuclear plant's potential harm to public safety and the environment.

Negative public opinion to the project of an already politically beleaguered Arroyo presidency prompted an inquiry from the Senate leading to the project's cancellation.

The fourth element relates to the erratic behaviour and questionable competence of prosecutorial agencies dealing with grand corruption, particularly the OMB and PCGG.

However, important pieces of evidence were not properly handled as attested by the testimonies of PCGG personnel in Republic of the Philippines versus Disini et al.

The court found no convincing proof of Marcos' ownership of the Herdis companies or his financial gain from the Westinghouse deal. Similarly, the two cases raise questions concerning the OMB's competence and behaviour.

On appeal by the latter, the Supreme Court in ruled that the Ombudsman exercised grave abuse of discretion. Consequently, the new Ombudsman at the time of the Supreme Court decision filed graft charges against the Marcos crony.

In , the Sandiganbayan ruled in favour of the government. She also cleared GMA's husband. In , when the prevailing political fervour was against the former president, her successor Ombudsman Carpio-Morales, hastily filed charges against the Arroyos, Abalos and Mendoza.

Insufficient evidence to graft charges led to the Sandiganbayan ' s exoneration of the accused in August In an earlier court decision, the Supreme Court also acquitted Arroyo for lack of evidence in a plunder case involving the alleged misuse of intelligence funds of the Philippine Charity Sweepstakes Office Macapagal-Arroyo vs People of the Philippines , The petition was filed in July by Carpio-Morales.

A politically subservient or accommodating judiciary might be argued to be the fifth element in the legal settlement of both corruption scandals.

Aquino was of course against Marcos and his cronies. It was also during his term that criminal charges were filed against GMA.

The Sandiganbayan ' s ruling on the ZTE case, issued in the early days of the Duterte presidency, favoured the Arroyos and other co-accused.

Her remark was suggestive of the political malleability of the courts. Sixth, both projects contained the element of foreign government participation, therefore entailing diplomatic considerations.

Ferdinand Marcos. Rolex 12 — controversy involving Pres. Ferdinand Marcos ' favoring certain Generals to propagate his terms of office.

Coco Levy Fund Scam — controversy involving Pres. Ferdinand Marcos and his cronies for conspired to tax coconut farmers. Manila Film Center Accident and cover up.

Bataan Nuclear Power Plant bribery and graft case. First Lady. Marcos scandals — incidents of alleged corruption linked to Japanese Official Development Assistance to the Philippines during the Marcos' administration.

Operation Big Bird , — the bungled plan of the Philippine Government to retrieve the alleged ill-gotten wealth of the Marcoses in Swiss banks.

Local Government. Fidel V. Ramos was accused of corruption in the controversial deal that involved the acquisition of hectares of reclaimed land on Manila Bay that was to be converted into so-called Freedom Islands.

Subic Bay Leadership Dispute — Pres. Joseph Estrada's Executive Order No. Estrada appoints relatives to government positions, and intervenes in their behalf.

Hot Cars Scandal — Pres. Estrada assigns seized vehicles by the Bureau of Customs to his Cabinet secretaries and favored political allies.

BW Resources scandal — Pres. Estrada and associates profit from an alleged stock manipulation scheme. Joseph Estrada receiving jueteng payoffs and bribes.

This led to the impeachment of Estrada and eventual downfall. Gloria Macapagal Arroyo. Hello Garci scandal — scandal involving Pres.

Gloria Macapagal Arroyo on committing electoral fraud during the National Elections. Office of the President , Department of Agriculture.

Gloria Macapagal Arroyo , Jocelyn Bolante. Court of Appeals. Department of the Interior and Local Government. Euro Generals scandal — involves Eliseo de la Paz and several Philippine National Police officials who went to Russia in October to attend the Interpol conference.

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