1998 Press Releases can be found at the Archive Section.


 
Mahogany Not Allowed To Conduct Drug Tests---SEC (31 August)
Puno Faces CA Rejection After September 15 (30 August 1999)
Miriam Will Join LAMP If. . .  (30 August 1999)
Miriam Wants Probe On P278M Embezzlement Charges 24 August 1999
Ca: Puno Overstaying At DILG (24 August 1999)
Miriam Files Contemp Charges vs. Mahogany Exec. (24 August 1999)
Miriam Vows To Pursue Probe On DILG Anomalies (20 August 1999)
Miriam:  Mahogany, Primarily A Trading Firm (20 August 1999)
Mahogany, Inc. Capital Is Mere P30 T (17 August 1999)
Miriam Wants Professional Boxers Protected (14 August 1999)
Miriam Says Jimenez TRO Proper (12 August 1999)
Miriam To Cite  Mahogany Exec For Contempt (10 August 1999)
PNP Crime Lab Chief Says Mahogany Deal Is A Monopoly (6 August 1999)
COA Finds P1 B DILG Contract Illegal, Puno Criminally Liable (6 August 1999)


MAHOGANY NOT ALLOWED TO CONDUCT DRUG TESTS---SEC
31 August 1999

Sen. Miriam Defensor Santiago yesterday said DILG Sec. Ronaldo Puno has forged an agreement with Mahogany Inc., a company that is not allowed to conduct drug tests.

During the Senate blue ribbon committee hearing, Santiago said Puno may be criminally liable for usurping legislative power in imposing a compulsory drug testing program and penalizing those who fail to take the drug test.

“The power to impose a compulsory drug testing program is legislative in nature.  Thus, the contract is an invalid and corrupt usurpation of legislative power under the Penal Code,” she said.

SEC commissioner Danilo Concepcion said Mahogany Inc. violated the corporation code when it conducted drug tests because it is registered only as a general trading firm.

Concepcion supported the view expressed by Santiago that Mahogany committed an ultra vires act when it went beyond its primary purpose of trading goods, wares and merchandise as stated in its incorporation papers.

“Mahogany is limited only to trading goods.  It should not be allowed to go into trading of services,” Concepcion told the Senate blue ribbon committee.

Concepcion pointed out that Mahogany cannot shift from a trading firm to one that sells services unless its articles of incorporation is amended accordingly.

“Under the Corporation Code, this becomes a ground for the revocation of the firm’s license,” he said.

Santiago said it is strange that Mahogany was awarded the drug-test contract after a bidding, considering that a bidder would normally be required to show its experience in that particular field.

“It would have been easy for the bidding committee to see that Mahogany would be committing an ultra vires act and that it does not have a track record in the supply of services,” she said.

Sen. Aquilino Pimentel Jr., chair of the Senate blue ribbon committee, said it appears that Puno “has entered into some agreements which at the end of the day will not benefit the government.”

Santiago also presented several receipts proving that Mahogany has been implementing the drug-test deal, contrary to claims by Puno that the contract has not yet been perfected and implemented.

Pimentel said the receipts are proof that Mahogany has been discharging its functions under the MOA, and apparently, government is not getting any revenues from the deal.

“Puno must address why they should not be held liable for allowing a private firm to use the facilities of government, despite their allegation that there is no contract yet,” he said.  “If the MOA has not been perfected, why was Mahogany allowed to use government facilities and charge people for drug-testing in government facilities?”

Pimentel added that “if this is truly a build-operate-transfer kind of agreement, what is to be transferred to the government at the end of the day considering the equipment of Mahogany is merely rented?”



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PUNO FACES CA REJECTION AFTER SEPTEMBER 15
30 August 1999

Sen. Miriam Defensor Santiago said that DILG Secretary Ronaldo Puno has only 15 days, counted from August 25, to submit his statement of assets and liabilities, otherwise he will be rejected by the CA.

Santiago, a CA member, said that CA secretary Casiano Flores informed all CA members that the notice sent to Puno’s office was received last August 25.

The recently amended CA rules provides: “The nomination or appointment shall no longer be acted upon by the standing committee concerned after the lapse of 15 working days and the same shall be a ground for its rejection by the commission.”

In his notice sent to Puno, Flores stated: “In regard to your appointment, the 15-day period for you to complete documentary requirements begins upon receipt of this letter.”

Santiago said that at the CA caucus held last week, the senators and representatives agreed that the 15-day period will continue to be counted even though the Senate will go into recess on October 8.

Thus, even after the Congress goes into recess, the CA would continue to have jurisdiction over the case of Puno and other pending cases.

This means that the 15-day period for Puno begins on August 25 and ends on September 15.

“If Puno fails to submit his papers by September 15, that would be a ground for his rejection,” she said.

Santiago said that if Puno submits his papers before the deadline, the CA will hold public hearings on his confirmation.

Santiago is a member of the committee on local governments, which is chaired by Sen. Robert Barbers.

She said that the CA hearing is expected to question Puno on his previous track record as a so-called “campaign strategist” for the administrations of Pres. Marcos and Pres. Ramos.

She said other questions will deal with Puno’s assets here and in the U.S., including a Greenmeadows house which he allegedly bought just before he became DILG undersecretary.

Santiago said that former Sen. Rene Saguisag is expected to submit his fact-finding report on the controversial Motorola contracts signed by Puno “very soon.”

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MIRIAM WILL JOIN LAMP IF . . .
30 August 1999

Sen. Miriam Defensor Santiago said she will join President Estrada’s new Lapian ng Manggagawang Pilipino (LAMP), if the campaign against graft and corruption is included in the party constitution or platform of government.
 Santiago was reacting to a media question on whether she and certain other senators will join the new LAMP.

This developed after three senators -- Juan Ponce Enrile, Gregorio Honasan, and Francisco Tatad -- took their oaths as new LAMP members last weekend.

“The campaign against graft and corruption is the flagship commitment of my People’s Reform Party.  I will leave PRP, only if any other party has a similar commitment to reform the culture of corruption,” she said.

Senate president Blas Ople is reportedly working on a draft LAMP constitution.

The new LAMP will also have to issue a platform of government for the coming 2001 senatorial and local elections.

“Pres. Estrada has repeatedly pledged to fight graft and corruption in his administration.  Therefore, I am inclined to join the LAMP.  But I would like to see some written confirmation of the fight against corruption,” she said.

Santiago said senators and representatives will have to join LAMP early, if they want to be proclaimed as official LAMP candidates for the next elections.

“In my case, I am in no hurry to join the LAMP, because I haven’t decided yet whether I shall seek reelection,” she said.

Santiago said she is applying to teach at the University of Oxford, under the Gladstone Professorship of Government, which starts October 2000.

The senator also said she has requested Pres. Estrada to nominate her to the International Court of Justice for the vacancy in 2002.

“The rush to be included in the various LAMP election tickets is already gaining momentum,” she said.

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MIRIAM WANTS PROBE ON P278M EMBEZZLEMENT CHARGES
24 August 1999

Senator Miriam Defensor Santiago yesterday called for a Senate probe on the alleged misuse of some P278 million public funds by Ramos-appointed officials of the Philippine Coconut Authority to finance political activity projects of the past administration.

Santiago filed a resolution after a media report tagged former PCA officials led by its ex-Administrator Gen. Virgilio David for allegedly using government funds for illegal training programs, excessive allowances, unauthorized payments and other irregular expenses.

The news report was based on the findings of the Commission on Audit dated 28 May 1998, and signed by COA Director III Amorsonia Escarda.

“These alleged activities and practices if proven true, are punishable under RA 3019 or the Anti-Graft and Corrupt Practices Act,” Santiago said.

Santiago also urged the committee to summon former President Fidel Ramos,  PCA Administrator Virgilio David and his deputy Ignacio Lopez along with PCA employees who admitted participation in the crime, but have turned state witnesses to come ace to face with their former bosses and reveal the truth.

This is the second time that Ramos’ men are facing graft and corruption charges.

The Senate Blue Ribbon committee had earlier recommended the prosecution of Ramos and five former cabinet secretaries involved in the Clark Expo Scam.

In a 90-page consolidated report, the committee largely based its findings on the arguments raised by Santiago on the technical malversation of funds amounting to some P7.3 billion pesos.

Criminal, civil and administrative charges will reportedly be filed against David, Lopez and other PCA officials.

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CA:  PUNO OVERSTAYING AT DILG
24 August 99

The Commission on Appointments will decide at a caucus today (August 25) whether to reject the outright nomination of Ronaldo Puno as DILG secretary, because of his refusal to submit his statement of assets and liabilities, and other documentary requirements.

Puno took his oath of office last April 13, but has continuously failed to submit his required papers to the CA, thus preventing it from setting his confirmation for public hearing.

The CA committee on rules chaired by Rep. Emilio Espinosa decided yesterday (August 24) to amend the CA rules by setting a deadline for a nominee to submit his papers.

Under the proposed amendment, a nominee should submit his papers within 60 days from his initial appointment, or from his oath-taking, whichever came first.

Puno has exceeded the 60-day period for submitting his papers, and has been holding office for 4 months without being confirmed or without even attending a confirmation hearing.

CA secretary Casiano Flores said he sent a letter to Puno to submit his papers twice – on June 14 and August 18 – and the letters were stamped “Received” by the DILG.

Yet Puno has been making the excuses that he did not receive any notice from the CA.

“All the nominees submitted their papers except Puno,” Flores said.

It is believed that Puno is trying to avoid his confirmatiion hearing while his nemesis, Sen. Miriam Defensor Santiago, is a member of the CA.

Puno is allegedly hoping that Santiago will leave the CA by December.

In a sporting gesture, Santiago proposed that the CA should give Puno a “non-extendible” period of 5 days to submit his papers, or face rejection.

In evading his confirmation, Puno has succeeded in incurring the ire of the entire CA.

The law provides that no person shall hold public office unless he has been confirmed by the CA.

Puno has been holding office without confirmation for 4 months, and is believed to have set a record for “overstaying” in office without a single confirmation hearing.

Other officials have held office without confirmation, but at least they attended confirmation hearings immediately after completing their papers.

“No cabinet member should be allowed to evade the power of the CA to confirm him before he can hold office.  No cabinet member should be allowed to choose which CA members he wants to confirm him,” said Sen. Raul Roco, vice-chair of the rules committee, at the CA caucus last week.

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MIRIAM FILES CONTEMPT CHARGES VS. MAHOGANY EXEC.
24 August 99

Sen. Miriam Defensor Santiago yesterday filed contempt charges against Mahogany executive Carlito Cubelo for the false accusation that she allegedly coerced him to implicate DILG Sec. Ronaldo Puno in the anomalous drug-test deal.

In a letter to Senate blue ribbon committee chair Sen. Aquilino Pimentel Jr., Santiago said Cubelo cast false aspersions on her and her husband in his letter dated 4 august 1999 which he later retracted in the August 17 hearing.

“Cubelo had already done me damage.  He distributed and publicized in the media his letter with its defamatory false accusations.  His subsequent retraction does not serve to mitigate his contemptuous behavior,” she stressed.

Santiago then cited Cubelo’s other false testimony that Santiago and witness Manuel Sto. Domingo were both members of the board of directors of Fil-Estate, Inc.

It was later clarified that it was only Santiago, and not Sto. Domingo, who served as a director of the Public Estates Authority, and not Fil-Estate.

Santiago stressed that Cubelo’s testimony was already able to raise in the mind of the public a question about her integrity and honesty.

“The subsequent admission of the truth by Mr. Cubelo does not serve to mitigate his contemptuous behavior.  For had I not spoken up vehemently to clear my name, Cubelo would have succeeded in poisoning the public mind bout my actuations in the present investigation,” she said.
In both cases, Santiago said Cubelo committed a  contempt of the committee under Section 18.

“Cubelo twice testified falsely or evasively against me,” she said.

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MIRIAM VOWS TO PURSUE PROBE ON DILG ANOMALIES
20 August 99

Sen. Miriam Defensor Santiago yesterday vowed to pursue the Senate probe on the graft cases in the Department of Interior and Local Government despite many attempts to stop or harass her.

Santiago said she will fight to the end, so the truth will come out.

Contrary to his earlier statements, Cubelo admitted that he voluntarily went to the Santiago offices last July 29.

During the hearing it was also established that Cubelo even pleaded to Sto. Domingo to arrange a meeting with Usec.Santiago.

He also contradicted his earlier statement when he admitted that Senator Santiago was not present in the meeting.  He also rebuffed his earlier claim of coercion when he revealed that he was not asked to sign any prepared statement.

Cubelo circulated his attacks against Santiago in the August 6 hearing at the blue ribbon committee, or a week after the meeting transpired at Narsan Builing, Quezon City.

He even distributed copies of his letter and press releases to the media maligning the senator and her husband before the hearing.

Santiago remained undaunted by the latest attempts by DILG Sec. Ronaldo Puno and Mahogany executive Carlito Cubelo to discredit and attack her for exposing the P3.6 billion drug test deal which may probably be the biggest graft case in Philippine history.

“I will not be deterred by the cheap stunts of my detractors.  I will pursue this case relentlessly.  I will make sure that the inquiry will not end in a whitewash,” she promised.

This developed as Santiago revealed to the Senate blue ribbon committee the SEC registration papers of Mahogany that showed it is only a general trading firm, and not a pharmaceutical or trading firm.  Its paid up capital is only P31,250.

“To justify the fee of P300 per person, Mahogany claims that it had to put up a big capital.  But the truth is that Mahogany is merely leasing its drug testing machines from the local representative of an American firm,” she said.

Apart from making snide remarks against the Santiago couple at the last hearing, Cubelo maliciously attacked Santiago when he insinuated that the senator and the owner of the machine firm served as board members of the private firm Fil-Estate.

“He is lying,” retorted Manuel Sto. Domingo, the president of the equipment firm during the hearing.

In the same hearing, Cubelo said Puno is using him as a political pawn.  He also made a complete turnaround from his coercion charges against Santiago and DILG Usec. Narciso Santiago Jr.

“Cubelo is insulting the intelligence of the Senate and the public by making these machinations to harass Senator Santiago,” said Col. Danny Lim, a staff of Usec. Santiago.

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MIRIAM:  MAHOGANY, PRIMARILY A TRADING FIRM
20 August 99

Sen. Miriam Defensor Santiago yesterday said the SEC registration papers of Mahogany Inc. clearly showed that it is only a general trading firm, and not a pharmaceutical or medical firm.

Santiago said Mahogany executive Carlito Cubelo admitted before the Senate blue ribbon committee that he amended the papers only last July or one month after she delivered an expose on the anomalous P3.6 billion Mahogany contract.

Despite many attempts to harass her, Santiago said she will not be silenced as she will continue to see to it that the truth will come out in the light of repeated lies being told by those people who are subjects of an ongoing Senate probe.

“I will not be deterred by the cheap stunts of my detractors.  I will pursue this case relentlessly,” she stressed.

Last July 29, Mahogany executive Carlito Cubelo voluntarily went to the Santiago offices in Quezon City, and pleaded to DILG Undersecretary Narciso Santiago Jr. and staff of Senator Santiago that he be allowed to discuss the Mahogany problem.

After several days, Cubelo distributed the letter during the Senate blue ribbon committee hearing (last August 6).  Cubelo’s letter maligned Santiago and her husband, alleging that he was coerced to sign an affidavit linking Puno to the irregularity.

Cubelo and DILG Sec. Ronaldo Puno tried to harass Santiago and Usec. Santiago by trying to have the Senate ethics committee investigate the Santiago couple.

However, in the last hearing, Cubelo admitted that Santiago was not in the building.  He also said that he did not see or talk to her, and that Usec. Santiago did not pressure him to sign anything.

In the same hearing, he tried to insinuate that she and the owner of the equipment firm were connected with Fil-Estate.  But when she was cross-examined, Cubelo was caught lying.

This was the cause why Santiago scolded him.  The scolding is now being used to project him as an underdog, and to compel the Senate ethics committee to probe Santiago anew.

Manuel Sto. Domingo, president of the equipment firm, kept telling the committee that Cubelo was lying..

According to Col Danny Lim, Cubelo is insulting the intelligence of the members of the Senate through these machinations.  He added that Cubelo is making all these harassment, so that Senator Santiago will stop pursuing this investigation.

“Cubelo is again seen in the Senate, trying to evade the real issues. He deserved every word said by Sen. Santiago when he was scolded because he was manipulating the facts and deliberately diverting the issues,” Lim said.

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MAHOGANY, INC. CAPITAL IS MERE P30 T
17 August 99

Mahogany, Inc., the firm which cornered a P3.6 billion drug testing contract with the DILG, has a paid-up capital of a mere P30,000.

This developed during the third public hearing on the Mahogany scam by the Senate Blue Ribbon committee yesterday (August 17).

Sen. Miriam Defensor Santiago, who delivered a privilege speech exposing the scam, presented the registration papers with the Securities and Exchange Commission, showing that the paid up capital for the firm is P31,250.

Santiago  pointed out that the board of directors consist of the couple Carlito and Susan Cubelo, and three others, all of whom reside in Sampaloc.

Santiago also pointed out that the Mahogany office is a very small space in a building in Baclaran, Roxas Boulevard.

As if these were not enough, Manuel Sto. Domingo, president of Bio-Analytical, Inc., testified that his firm is merely leasing the drug testing equipment to Mahogany.

“If  Mahogany is merely leasing its equipment, then the fee of P300 that it charges is an overprice,” Santiago said.

Santiago pointed out that the lease contract between Mahogany, Inc. and Bio-Analytical, Inc. includes a “confidentiality clause.”

The confidentiality clause states: “Both Mahogany and Bio-Analytical shall observe strict confidentiality as to the terms and conditions of this agreement.  That both parties shall not reveal explicitly or implicitly to any person or persons the terms and conditions of this agreement much more provide a copy of this agreement to anyone except to persons with written authority and approval from Mahogany, Inc. and Bio-Analytical.”

“The confidentiality clause is evidence of fraud on the part of Mahogany, Inc.  All along, Mahogany, Inc. tried to justify the P300 fee by claiming that it had to buy expensive equipment, when the truth is it merely leased them,” the senator said.

“A contract which compels one million people to take compulsory drug tests and imposes criminal penalty for failure to comply is an exercise of legislative power which a mere cabinet member is not authorized to do,” she said.

Santiago, repeating the finding of the COA auditor, said the Mahogany contract is grossly disadvantageous to the government, because it disregarded the original project proposal.

The original project proposal provided for a build-operate-transfer scheme and for a revenue sharing arrangement, but the Mahogany contract does not include these provisions.

Santiago proved that the Mahogany contract is a monopoly, because the contract does not mention any other drug testing laboratory except Mahogany.

She rejected Puno’s argument that the Mahogany contract is allegedly not a contract.

“Although it calls itself a memorandum of agreement, still, the document signed by Puno and Cubelo defines a memorandum of agreement as “a contractual arrangement.”
Hence, there is no doubt that this is a contract,” she said.

Santiago also scoffed at Puno’s claim that the contract is not yet being implemented.

“That is a bare-faced lie.  Mahogany is already conducting drug tests at Camp Crame, Quezon City, and in Cebu, Iloilo, Davao and Cotabato cities,” Santiago said.

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MIRIAM WANTS PROFESSIONAL BOXERS PROTECTED
14 August 99

While five Filipino boxers continue their bid to capture gold in the 20th Sea Games’ competitions in Brunei. Senator Miriam Defensor Santiago proposed that boxers be given insurance coverage and called for the government to set standards to protect their health and safety.

Santiago filed Senate Bill No. 1637 or the “Professional Boxing Safety Act” which seeks to establish and provide for the implementation of health and safety standards in the conduct of professional boxing matches.

Santiago emphasized the need to safeguard boxer’s health because boxing exposes them to physical injuries since boxing is a physically challenging sport. “Boxing, being a sport where the player is susceptible to injury requires government regulation and safety standards” Santiago said.

Under Santiago’s bill a promoter must provide insurance coverage for each boxer who participates in a boxing match, a standby ambulance service and a thorough physical examination for boxers by a physician before and after a match.

“Boxing promoters must be given responsibility” she said because they are  the ones who profits from this sport.”

The Professional Boxing Safety Act also requires the Games and Amusement Board to establish procedures in evaluating professional records and medical records of boxers.

“Filipinos have shown a good chance of excelling and attaining world prominence in boxing.  Many of them have made the nation proud by becoming wold champions” she said.
Filipino boxers who made names in the world of boxing in the country are Luisito Espinosa, Onyok Velasco and Many Paqiao.  While Welter Aric Chavez and Larry Semillano played heroes in 1995 and 1997 SEA Games respectively.

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MIRIAM SAYS JIMENEZ TRO PROPER
12 August 99

Sen. Miriam Defensor Santiago, a former RTC judge, said that the temporary restraining order issued by a Manila court to stop the processing of a United States request for the extradition of Mark Jimenez is “proper and complies with the provisions of the Rules of Court.”

Responding to a media inquiry, Santiago said Rule 58 allows an RTC judge to issue a TRO, as long as there is yet no judgment or final order.

“Under Rule 58, a TRO may be granted at any stage of a proceeding.  Thus, it is not necessary that there should be a case pending in court.  A proceeding pending in a public office is enough basis for a TRO,” she said.

Citing the 1997 case of Republic v. Silerio, Santiago said that the TRO issued by Manila RTC judge Ralph Lantion complies with two requirements: first, there must be an existing right; and second, the act restrained would be a violation of that right.

“There was no impropriety, just because the judge issued the TRO immediately after the hearing.  On the contrary, the law requires the judge to hold a summary hearing and to act on the TRO application within 24 hours,” she said.

The senator, who recently wrote the book Rules of Court Annotated, said that the basic purpose of a TRO is “to preserve the status quo.”

“A TRO is effective only for 20 days.  It should not be appealed to the Supreme Court, because the appeal might take longer than the 20-day period of the TRO,” she said.

Santiago said that if justice secretary Serafin Cuevas believes that the TRO is improper, then the remedy is to file with the RTC a motion to dissolve the TRO.

“Usually, the RTC will dissolve the TRO only if it would cause irreparable damage to the government.  But there is no proof of such irreparable damage,” she said.

Santiago, who also wrote a book, Political Offences in International Law, said that if the executive branch certifies that the criminal charges filed against Jimenez are also political offences, meaning the acts were “ideologically motivated,” then the judge will have to dismiss the extradition case.

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MIRIAM TO CITE  MAHOGANY EXEC FOR CONTEMPT
10 August 99

Sen. Miriam Defensor Santiago yesterday warned that she will file a motion for contempt against Mahogany executive Carlito Cubelo with the Senate ethics committee for distorting the Senate hearings on the anomalous DILG contracts.

In a letter to Blue Ribbon committee chair Sen. Aquilino Pimentel Jr., Santiago said Cubelo’s letter was used as a smokescreen for the damaging findings by the Commission on Audit that the malodorous Mahogany contract violated the Anti-Graft Law.

She said Cubelo did not report any untoward incident the day after his meeting with DILG Undersecretary Narciso Santiago Jr. last July 29, but waited until the day before the committee hearing resumed last August 6 to complain.

“Mr.  Cubelo feared that the COA audit report would prove his guilt, and therefore he tried to a create a diversionary tactic by means of his bluff-and-bluster letter,” she said.  It is an unmatched saga of deceit, betrayal, and corruption in high places.”

Santiago said the allegations in Cubelo’s letter form no basis for any complaint--- legal, moral or ethical.  She added that the letter only sought to scandalize her.

“I had already gone home by the time Cubelo arrived at my office at night, and he admits it.  His perverse insistence that the Blue Ribbon Committee should be used as a forum so that he can spin his absurd yarn is sufficient to constitute a basis for a finding of contempt,” she said.

Santiago stressed that Cubelo contradicted his own trumped-up charge that he was allegedly pressured to make certain statements against Puno since he voluntarily went to Santiago’s office.

The Cubelo letter, paragraph 3, states: “Voluntarily, I narrated the sequence of events.”  In addition, the letter also states: “I attended a prearranged meeting.”

“The mere admission by Mr. Cubelo that he voluntarily went to my office, and voluntarily told his story (whether true or not) is a contradiction of his pretense that he was pressured,” he said.

Santiago suspects that Puno’s recent sensational media statements are “infantile antics intended both to trivialize the Senate inquiry, and to divert public attention away from his graft and corruption.”

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PNP CRIME LAB CHIEF SAYS MAHOGANY DEAL IS A MONOPOLY
6 August 99

Sen. Miriam Defensor Santiago’s charge that the controversial P3.6 billion Mahogany contract establishes a monopoly in favor of the drug firm and grossly disadvantageous to the government was bolstered and supported by the testimony of the PNP Crime Laboratory director.

P/Chief Supt. Steve Cudal yesterday appeared before the Senate blue ribbon committee during the continuation of its hearing on the multi-billion anomalous drug-test contract.

Cudal admitted that after Santiago exposed the Mahogany deal, he signed a lengthy four-page memorandum of protest last June 14 objecting to the contract that gives exclusive right to mahogany to conduct drug-tests to the exclusion of the PNP crime laboratory.

According to Cudal, his initial understanding of the contract was that the PNP will only recognize the results of the Mahogany drug tests. But he later claimed that this was a misimpression.

Santiago threatened to cite Cudal for contempt for the suspicious turn-around in his statements that there was a period when the results of other private drug testing centers were not being accepted, but now they are now acceptable after he made objection.

She said the contract, which is a novelty in itself, incorporates so-called Implementing Rules and Regulations which prohibit the issuance of firearm licenses “without a drug-testing clearance from PNP Crime Laboratory Mahogany drug-testing centers.”

“This is the language of monopoly, contract to the brazen allegation of the signatory,” she said.

There are 104 drug testing laboratories accredited by the Dangerous Drugs Board, plus the PNP Crime Laboratory. But in actual practice, none of them are recognized by the PNP Civil Security Group because only tests conducted by the Mahogany were accepted.

In his memorandum dated 14 June 1999, Cudal stated that “there were firearms license holders and security guards who opted to have their drug tests conducted at the PNP Crime Laboratory; however, in spite of their insistence, they were advised to go to MMPSI (Mahogany) for drug testing based on the approved MOA.”

For his part, Sen. Rodolfo Biazon questioned the legality of the penal provisions citing the fact that there is absolutely no legal basis ant that only Congress has the exclusive right to impose sanctions.

The IRR also provides that all applicants for gun licenses are required to undergo drug tests under the supervision of the Mahogany and the PNP crime laboratory. But the payment of the drug tests, as well as the issuance of official receipts, would only be made to and Mahogany.

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COA FINDS P1 B DILG CONTRACT ILLEGAL, PUNO CRIMINALLY LIABLE
6 August 99

The Commission on Audit has issued a report finding that the DILG contract with Mahogany, Inc. violates the Anti-Graft and Corrupt Practices Act, and the signatories are criminally liable.

The report dated 2 June 1999 was signed by Romeo Pulido, resident auditor of the Philippine National Police.

The contract signatories are: DILG Secretary Ronaldo Puno, PNP Chief Gen. Roberto Lastimoso, Malacañang assistant executive secretary Antonio Nery, and Mahogany president Carlito Cubelo.

This surfaced during the interpellation of Sen. Miriam Defensor Santiago at the Senate Blue Ribbon committee hearing yesterday (6 August).

In addition to the COA report, Santiago also produced a memorandum dated 14 June 1999 by Atty. Steve Cudal, PNP Crime Laboratory director, asserting that the Crime Laboratory is capable of administering the drug tests now enjoyed as a monopoly by Mahogany.

Santiago also produced a similar memorandum dated 18 June 1999 signed by 12 PNP Crime Laboratory officials at national headquarters; 7 officials from district offices; and 22 officials from regional offices; or a total of 41 Crime Laboratory officials protesting against the Mahogany contract.

Santiago used harsh words to belittle Puno’s arguments that the Mahogany document is allegedly not a contract, and that it allegedly has not been perfected or implemented.

“Despite their desperate attempt to be clever and devious, the signatories to the contract are criminally culpable because the law is clear,” said Santiago, a former RTC judge and UP law professor.

Santiago said that under the 1970 case of Luciano v. Estrella, the Supreme Court ruled that the moment a public official signs a contract grossly disadvantageous to the government he incurs criminal liability, even if the contract has not been perfected or implemented.

Santiago, citing Supreme Court decisions, contradicted Puno, and said that the contract was perfected by mere consent of the parties.

The senator also said that contrary to Puno’s claims, the contract has been implemented in Camp Crame, Quezon City, as well as in such cities as Cebu, Davao, Cotabato and Iloilo, as reported by reputable national dailies.

Santiago denounced the Puno explanation as “arguments made in bad faith because they directly contradict existing law, thus betraying an intent to deceive and mislead.”

Santiago, citing the Civil Code and the Rules of Court, added: “Contrary to the glib pronouncements of the signatories, the law is the exact opposite of their allegations.”

The senator quoted the Parol Evidence Rule, which means that after a public official has signed a questionable contract, his liability will be judged on the basis of what is written in the contract, and not on the basis of his subsequent explanations.

“The signatories are nailed to their contract, which is the most damning evidence against them,” Santiago said.
 In effect, Santiago urged the Blue Ribbon committee to recommend to the Ombudsman the criminal prosecution of Puno and his companions.

“No amount of explanation can serve to finesse the fact that the contract is a lucrative monopoly granted to a favored company.  It is unconscionable and indefensible,” she said.

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The Isulong Team: Isulong SEOPh, Isulong Seoph by Benj, Pinoy Isulong by Seoph Martinez and Useless Isulong