Noli accused of graft over Smokey Mountain compromise deal

Vice President Noli de Castro was accused before the Office of the Ombudsman of graft and corruption for entering in an alleged "midnight deal" for the controversial P6-billion "Smokey Mountain Project." In his complaint, a certain Gregorio Naval, who identified himself as a taxpayer, hurled charges against the vice president and other government housing officials in connection with a compromise agreement for the Smokey Mountain Development and Reclamation Project (SMDRP). The project, which began in 1988 under the administration of the late President Corazon Aquino, reserved 40 hectares of the dumpsite to be developed into a housing site, radio dzMM said in a report. The infamous dumpsite — which became an international symbol of Philippine poverty — was home to about two million tons of garbage. After Aquino left office, her successor Fidel Ramos was left to continue the project and expanded the project’s land coverage to 79 hectares from 40 hectares. The National Housing Authority, tasked to reclaim the land, partnered with the R-II Builders Inc. (RBI), which is owned by magnate Reghis Romero, to build low-cost homes at the dumpsite. Former Solicitor General Francisco Chavez questioned NHA's authority but his protest was dismissed by the Supreme Court in August 2007, which said that the project, including the joint venture agreement, was legal and valid. Besides De Castro, also named respondents in the case were former Finance Secretary Gary Teves, who was Home Guaranty Corp.'s (HGC) ex-officio chairman; HGC president Gonzalo Benjamin Bongolan; and NHA general manager Federico Laxa, among others. De Castro was included in those charged because as chairman of the Housing and Urban Development Coordinating Council (HUDCC), he also served as HGC's ex-officio vice chairman. Under the supposed compromise agreement, the NHA is supposed to release P4.47 billion to settle both the principal and interest claims of the HGC in the project. Due to lack of funds, the RBI - with HGC as its guarantor - earlier borrowed money from several agencies to finance the billion-peso project. The firm has already returned the money it borrowed from the agencies except that from the Social Security System (SSS). The money that would be released by the NHA to the HGC will in turn be paid to the SSS. Baseless In an interview with reporters on Friday, De Castro expressed confidence that the graft case would not prosper saying no such "compromise agreement" has been signed yet. "Walang basis ang graft charges. Kahit sinong abugado, alam na walang kaso dito [The charges are baseless. Any lawyer would say there's no case here]," he said. During the interview, De Castro also reiterated that no "midnight deal" was signed, contrary to earlier claims that the approval will happen on Friday. The vice president said the so-called memorandum of agreement-compromise agreement (MOA-CA) was still being reviewed by a technical working group tasked to determine the soundness of the project. After the technical working group comes up with recommendations, the agreement will still have to undergo a series of reviews including that by the NHA management. "Napaka-haba pang proseso pa niyan. Ang dami pang dadaanan. Dadaan pa nga iyan sa korte [The process before signing that agreement will be long. It will even have to be reviewed in court]," De Castro said. He said he had even instructed his team to no longer push through with its meetings in connection with the MOA-CA, and let the next administration continue the unfinished task for the SMDRP. "Pinahinto ko na kasi nasa transition na tayo. Sabi ko, let's stop at iyong susunod na administration ang bahala diyan," he said. Besides, De Castro said the govern [I ordered a stop in the proceedings because we're already in a transition in government. I told them, 'Let's stop" and let the next administration take care of that.'] Business interest? Asked who could be behind Naval's filing of corruption charges, De Castro refused to give names but said the matter could be connected to business inetrests. "Ang nakikita ko lang, negosyo ito. Naggagamitan sila. Eto pati kami, ginagamit. Alam niyo na ang negosyo, naglalaban-laban. Iyong isa, ayaw makapasok iyong iba. Gusto solohin lang ang proyekto," he said. De Castro wondered who could have leaked the supposed draft MOA-CA to the media, when he himself has not yet seen a copy of it. "Paano lumalabas iyan. Eh wala pa nga akong kopya. Kahit si Presidente [Gloria Macapagal Arroyo], wala pa ring kopya niyan," De Castro said. "Napakasalimuot ng kasong ito [The SMDRP issue is very complicated case]," he added. - Mark D. Merueñas, RJAB Jr., GMANews.TV