“(T)he best way to handle a potential conflict is to acknowledge its existence and, as much as possible, keep clear of decisions that involve these particular companies.”
by Ducky Paredes
Clearly, for many of the President’s appointees, the issue that they will have to face before the Commission on Appointments (CA) when the time for their confirmation comes will be that of the possibility of Conflict of Interest. This comes from their having been involved in businesses that are regulated by or have interests in government contracts.
From the Constitution, we have this: “There shall be a Commission on Appointments consisting of the President of the Senate, as ex officio Chairman, twelve Senators, and twelve Members of the House of Representatives, elected by each House on the basis of proportional representation from the political parties and parties or organizations registered under the party-list system represented therein.”
When the CA meets, expect it to look closely at the president’s cabinet appointees to determine whether these appointees ought to be confirmed
Ping de Jesus, appointed Secretary for the Department of Transportation and Communications (DOTC) is only half-right when he says that because he has resigned his position as an executive of a telephone company and of a power distribution company, there is no more “conflict of interest.”
If Ping no longer holds any shares in these companies, there may no longer be any clear conflict in pecuniary interests (although a conflict in pecuniary interests may still arise from direct gifts and/or bribes), there is still the possibility of non-pecuniary interests that could arise from personal or family relationships or involvement in sporting, social or cultural activities. They include any tendency toward favor or prejudice resulting from friendship, animosity or other personal involvement that could bias one’s judgment or decisions even though there may be no financial benefit.
Going into public service is tough and, as a former senator used to say, “if you did anything after reaching 18, expect it to come up in your confirmation hearing in the CA.”
Other P’Noy appointees that could also have a hard time at the CA are Public Works Secretary Rogelio Singson, Energy Secretary Jose Rene Almendras and Customs (BOC) Commissioner Angelito Alvarez. Although in the case of Alvarez, it would be Finance Secretary Cesar Purisima who may be called on to explain Alvarez to the CA since it is the Secretary of Finance who will need CA confirmation.
De Jesus’ history as an executive in a companies of the Lopez Group and Metro Pacific – two of the largest business conglomerates –is bound to be placed under the CA microscope.
Singson is in the same situation having been a former president of Lopez-owned Maynilad Water and former director of Metro Pacific Investments Corp. Almendras is a former president of Manila Water and Cebu Holdings Inc. (both owned by the Ayala group) and former treasurer of the Aboitiz group.
Alvarez used to work with the Lina Group which has a big money contract (through its subsidiary, E-Konek Pilipinas, to provide IT services to the BOC. Alvarez also has the added notoriety of having been suspended from a prestigious golf club from having cheated on his scores during a major tournament.
But, a potential conflict of interest is not really anything to worry about for one who will admit the existence of the potential problem. In fact, the best way to handle a potential conflict is to acknowledge its existence and, as much as possible, keep clear of decisions that involve these particular companies. Being up front with everyone about these conflicted interests is the only way to go.
In the Bush administration, the vice president, Dick Chaney was a major investor in Halliburton that had major dealings with his government’s work in the Iraq war. In fact, it goes deeper than that. The Bush Family connection to Halliburton goes back three generations.
In 1998, Halliburton acquired Dresser Industries for some $7.7 billion. Prescott Bush, grandfather of George W. was a director at Dresser Industries. Cheney of Halliburton personally negotiated the purchase of Dresser Industries. The deal was closed on a quail-hunting expedition.
According to a report in The Nation at the time of the purchase: “Dresser was a Skull & Bones shop, whose board included presidential father and grandfather Prescott Bush.”
Chaney, who had been a Halliburton executive and investor for most of his life, explained himself on television in 2003: “”And since I left Halliburton to become George Bush’s vice president, I’ve severed all my ties with the company, gotten rid of all my financial interest. I have no financial interest in Halliburton of any kind and haven’t had, now, for over three years.”
Some say that Chaney was lying when he uttered these words. At any rate, in the U.S., the President and the Vice President are exempt from prosecution for cases arising from conflict of interest.
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“War seems to be part of the history of humanity. As we look at the situation of our planet in the past, countries, regions and even villages were economically independent of one another. Under those circumstances, the destruction of our enemy might have been a victory for us. There was a relevance to violence and war. However, today we are so interdependent that the concept of war has become out dated. When we face problems or disagreements today, we have to arrive at solutions through dialogue. Dialogue is the only appropriate method. One-sided victory is no longer relevant. We must work to resolve conflicts in a spirit of reconciliation and always keep in mind the interests of others. We cannot destroy our neighbors! We cannot ignore their interests! Doing so would ultimately cause us to suffer. I therefore think that the concept of violence is now unsuitable. Nonviolence is the appropriate method.” – Dalai Lama
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