₱10 Billion (PDAF) PORK BARREL Scam linked 28 legislators, 5 Senators, 23 Congressmen with Ghost “JLN Group of Companies”

Sen. Franklin Drilon who is expected to be the next Senate President is proposing the removal of the Priority Development Assistance Funds (PDAF) or known as PORK BARREL of lawmakers following reports that a certain businesswoman had plotted a ₱10 billion scam over the past decade using the pork barrel of senators and congressmen for ghost projects.

 

"We should seriously think about abolishing the pork barrel," Drilon told Radyo Inquirer 990AM in an interview Monday morning.

 

Drilon said in a radio interview Monday that Senate will let the National Bureau of the Investigation's take the lead in probing a fraudulent scheme involving millions of pork from various lawmakers allegedly channeled through ghost projects.

 

Drilon was reacting to the Philippine Daily Inquirer's report linking at least 28 legislators – five senators and 23 members of the House—to the alleged scheme hatched by Janet "Jenny" Lim-Napoles to dummy organizations receiving pork barrel funds named as "JLN Group of Companies".

 

The issue links Senators are the following:

1. Juan Ponce Enrile
2. Bong Revilla
3. Gregorio Honasan
4. JV Ejercito
5. Bongbong Marcos

 

Drilon said anomalies like these will be eliminated once the pork barrel is abolished.

 

Scrapping the pork barrel was the ideal move but Drilon admitted that "in reality, many congressmen need this for projects in their districts."

 

He added if the pork barrel will not be removed, the next option is to limit the types of institutions where these funds may be appreciated.

 

He suggested giving pork barrel directly to hospitals and schools so that the fund can be easily audited.

 

"Payag ako na itigil etong pork barrel para matigil na etong mga reported anomalies. Itigil natin pork barrel. Sa akin ang buod nito kung i-retain ang pork barrel talagang i-limit na lang natin among sa institutional recipients," he said in a radio dzMM interview.

 

"Kung hindi man matanggal lagyan mo ng limitation para yung opportunity for corruption ay very limited," he added.

 

The National Bureau of Investigation (NBI) is looking into an alleged ₱10-billion scam by a company that set up fake nongovernment organizations (NGOs).

 

The organizations are believed to have benefited from the pork barrel of several lawmakers, as well as the fertilizer fund mess and proceeds from Malampaya.

 

In a letter addressed to Justice Secretary Leila de Lima, lawyer Levito Baligod said his client, Benhur Luy, was reportedly detained in a condominium in Taguig because he knew about illegal business practices in the appropriation of the pork barrel of certain lawmakers and projects during the Arroyo administration.

 

After Luy was rescued last March, he issued an affidavit accusing the JLN Group of Companies of being involved in anomalous deals.

 

Luy was employed by his relative, Janet Napoles -- the owner of JLN.

 

Other employees and relatives of Luy claim the company set up 5 fake NGOs that became beneficiaries under the fertilizer fund scam, Malampaya scam, and the pork barrel of some lawmakers.

 

The employees of JLN, and even the household help, became the presidents and officials of the fake NGOs.

 

A number of cities also became beneficiaries, but the signatures of the local officials were fabricated.

 

According to the affidavit of JLN project coordinator Merlina Sunas, the government funds appropriated to the fake NGOs were remitted to Napoles.

 

Sunas added Malampaya had a ₱900-million budget, but there were no deliveries of supplies and materials.

 

The liquidation reports submitted to concerned government agencies were also allegedly fabricated.

 

She said this was also the modus for the pork barrel of some lawmakers and the controversial fertilizer fund scam.

 

Drilon said though that his pork barrel had not been used for any irregular activities.

 

"I had no transactions with her," said the senator, referring to Janet "Jenny" Lim-Napoles, the person allegedly behind the anomalous.

 

Justice Secretary Leila de Lima has confirmed that the names of some lawmakers and officials were mentioned by some of the whistleblowers who had tagged Janet Lim Napoles of the JLN Group of Companies as the alleged brains behind the anomaly. Even the linked names were already disclosed by the philStar, Justice Secretary Leila de Lima declined to name the lawmakers and officials.

 

With report from ABS-CBN , philSTAR, and INQUIRER

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Philippines took over Japan’s Car part dominance in Asean but cried for cheap imported Cars

According to Raquel Santos, the 127 members of MVPMAP who make 272 different car parts and components, are not exactly happy over the fact that imports of complete cars have over taken locally assembled units. He said the assemblers in the Philippines account for only 39 per cent of total car demand

Japan way behind; PH exports $3.5B car parts to ASEAN

 

The Philippines has beaten Japan in exporting vehicle transmission assemblies to the ASEAN (Association of South East Asian Nations) region. Every year, according to Ferdinand Raquel Santos, Japanese companies Toyota, Mitsubishi, and Isuzu export $3.5 billion compared to Japan's $1.1 billion.

 

Raquel Santos, president of the Motor Vehicle Parts Manufacturing Association the Philippines (MVPMAP), told Business Insight cars imported from the region, particularly Thailand, have transmission assemblies made in the Philippines.

 

The rest of the car parts - wire harness, tires made by Yokohama in Clark, carpets, plastic parts, leatherette seats, seat belts, plastic bumpers, are big in numbers but have smaller values.

 

He said in value terms the Philippines accounts for about 25 per cent in parts exported to the region. Nearly all of them are accounted for by transmission assemblies. He said a car has 20,000 parts and components. Very few of them, except transmission assemblies  come  from the Philippines.

 

He explained that Japan might have discovered that producing the assemblies in the region such as the Philippines has the advantage of Thailand.

 

According to Raquel Santos, the 127 members of MVPMAP who make 272 different car parts and components, are not exactly happy over the fact that imports of complete cars have over taken locally assembled units. He said the assemblers in the Philippines account for only 39 per cent of total car demand.

 

The rest is imported. Back in 1996, 90 percent of automobiles sold in the Philippines is locally assembled. Imports account for a negligible 10 per cent.

 

He explained that the reversal of the ratio negatively affects the business of local parts manufacturers in terms of loss of demand.

 

He said he hopes local assemblers will regain their dominance but pointed out that the tariff agreements are a high hurdle. Under the Asean Free Trade Association (AFTA) many items or products enter the region without a tariff.

 

He said the fact that a separate agreement with Japan (Japan Philippines Economic Partnership Agreement (Jepepa)) and the coming similar agreements with South Korea and Australia do not help the Philippine makers of auto parts and components improve their business.

 

Still, Raquel Santos said, there are two models Mitubishi's L-300-and the Crosswind of Isuzu that use 70 per cent local parts and components

 

A good number of members of the association export parts and components to Thailand and Indonesia. These parts, he said, are common to units assembled in the Philippines.

 

He laments the fact that the 70,000 workers employed by the association, have not increased precisely because the market of parts makers have been taken over by imported units. He stressed, though that these units also use Philippine-made components notably the transmission assemblies.

 

Rising volume of imports deny the parts makers the economies of scale. The high cost of power in the Philippines does not help the members of the association either, according to Raquel Santos.

 

However, he said, there is a necessity for economic groupings to create big bargaining unit with giants of North America and Europe. He said competition with these highly developed countries will force the emerging markets like the Southeast Asian countries to introduce innovation, improve technology and management to be able to compete globally.

 

Raquel Santos broadly hinted that while the growth of small car parts manufacturers is stymied by rising imports, there is the fact that the Philippines is becoming the hub of manufacturing transmission assemblies as shown by the fact that three Japanese companies are heavily involved in producing them here.

 

Slowly, Filipino minds and hands are absorbing the technology in making this major car component. This could well be the start of more major components being produced in the Philippines.

 

Raquel Santos himself has a company producing minor parts like seats. He continues to trying to improve his technology, knowing he said, that modern technology and management efficiency are the keys to any successful operation, production of car parts or any other manufacturing ventures. His hopes are high in the face of negative developments. So are the rest of the members of the association.

 

With report from Malaya Business Insights

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