Palace invokes secrecy law on Quedan over swine scam

April 5, 2008

The Quedan and Rural Credit Corp. (Quedancor), the state lending agency embroiled in the P5-billion swine scam, may opt not to reveal the beneficiaries of the program supposedly to raise livestock production since borrowers in the program are “covered by the bank secrecy law” on deposits.

Sen. Francis Escudero earlier had challenged Quedancor to make public the beneficiaries of the loan program, in which P1.6 billion was believed to have been misused.

Chief Presidential Legal Counsel Sergio Apostol said although Quedancor administers public funds, these are covered by the bank secrecy law that could be invoked by borrowers to hide their identities.

Apostol said the only way to compel Quedancor to reveal the identities of the borrowers would be to bring the case to the courts which have the power to compel the bank to disclose the identities of the borrowers.

“It depends on Quedancor, they may listen to Sen. Escudero, or they may not, it is their prerogative, because they may risk opposition from the borrowers and the bank would become liable. The court, however, could intervene and demand Quedancor to disclose their books. We have to be reminded that Quedancor is covered by the bank secrecy deposit law,” he said.

Asked if the law still applies considering what is involved are public funds, Apostol said yes.

“That’s immaterial because (Quedancor) is still a lending institution,” he said.

Apostol also lashed out at University of the Philippines law professor Harry Roque in resorting to publicity in exposing the supposed swine scam that included President Arroyo among those allegedly involved in the mess.

“A people’s court, which Roque resorted to in exposing the alleged scam, is a court in communist countries, he may be an advocate of communism,” he said.

These people with (former) Vice President Teofisto Guingona conducted a people’s court and it ended up like a joke right? They have done that after they failed to impeach President Arroyo before the House of Representatives (in 2005), he said.

Apostol stressed it would be better if Roque substantiates his facts and present it before the Office of the Ombudsman which is the proper forum in the country to hear criminal cases.

Roque used as proof Quedancor’s transfer to the Office of the President from the Department of Agriculture (DA), and the result was corruption?

Apostol denied reports that Quedancor was transferred under the Office of the President from the Department of Agriculture only to be looted of government funds to back President Arroyo’s presidential bid in 2004.

“That’s not true, there’s no basis for that. The reason President Arroyo transferred Quedancor to the Office of the President was to intensify the fight against corruption, so this swine scam could be properly investigated, this scam allegedly happened not under the OP but when it’s (Quedancor) still with the DA,” according to Apostol.

“She’s (Arroyo) not coddling corrupt officials and there’s no sacred cow. So we’re challenging Atty. Roque if he has a strong case to bring this up to the Office of the Ombudsman and we can assure him that there would be no sacred cow,” he said.

Deputy presidential spokeswoman Lorelei Fajardo gave the same view, saying the president of Quedancor had expressed his readiness to face an investigation from the Ombudsman and to answer allegations on perceived anomalies within the corporation.

“We trust that the matter is best brought before the Office of the Ombudsman and should there be any findings on any wrongdoing, the Office of the President will support the filing of proper charges in the Sandiganbayan. We urge, however, the detractors of the administration to temper their accusation spree, and not be so quick in putting the blame or insinuating culpability of the president without any proof. The propensity of the opposition to automatically tag the president for wrongdoings has become taxing and repetitious,” she said.

Deputy Presidential Spokesman Anthony Golez said the burden of proof is on the part of Roque.

“Our constitution protects citizens from baseless allegations. The one who alleges has the burden to show the proof that can be appreciated and can stand in our courts. Many of our president’s critics have tried many antics to relate controversies to the palace, but no evidence has so far been presented to any courts. We urge the detractors to discern when to end divisiveness for the sake of our people, and when to start being builders of unity for the sake of progress to our country,” he said.

“A people’s court, which Roque resorted to in exposing the alleged scam, is a court in communist countries, he may be an advocate of communism,” he said.

Apostol stressed it would be better if Roque substantiates his facts and present it before the Office of the Ombudsman which is the proper forum in the country to hear criminal cases.

Roque used as proof Quedancor’s transfer to the Office of the President from the Department of Agriculture (DA), and the result was corruption?

Deputy Presidential Spokesman Anthony Golez said the burden of proof is on the part of Roque.

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