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Philippine authorities catch tax cheat with anonymous letter

The Philippine Daily Inquirer reports that the Philippine Bureau of Customs has filed charges that Oillink, an import company, cheated the government out of 700 million Philippine pesos (16 million US dollars). The Bureau of Customs discovered the fraud through an anonymous letter, apparently from a disgruntled employee. In a column, Raul Palabrica says, "It takes a lot of guts for a person to provide inside information to the authorities that could lead to the imprisonment of the people he once worked with or whose table he may have shared on several occasions." "And once the whistle is blown, there is no assurance that the whistle-blower will not be caught in the maelstrom that his action may have caused," Palabrica adds. He also comments on the predicament of UBS whistleblower Brad Birkenfeld.  Birkenfeld's disclosures, he says,

resulted in the rest of the safe banking havens based in Lichtenstein, Cayman Islands and other exotic places into doing something similar under pain of being accused of money laundering and blacklisted in the international banking community.

So you think the whistle-blower was declared a hero for initiating the action that practically turned upside down tax haven banks?

No! Instead, he was tried and found guilty of abetting tax evasion and sentenced to 40 months in jail.

That is suffering for speaking truth to power.

Filipino whistleblower protection prompts more disclosures

Benigno AquinoThe new president of the Philippines, Benigno Aquino III (pictured), has granted security guarantees to a group of whistleblowers under the Witness Protection Program. Now those whistleblowers are disclosing more information about corruption under the prior administration. GMA News TV is reporting that the whistleblowers will disclose information about election rigging involving the prior president and certain military leaders. "We are more than willing (to expose more anomalies) because before, we were being suppressed. Now, we are free to talk," former Army technical sergeant Vidal Doble told GMA. Doble previously released a wiretapped conversation in June 2005 called "Hello, Garci." The recording portrays former President Gloria Macapagal-Arroyo discussing rigging election results with former Elections commissioner Virgilio Garcillano. Doble plans to name more names. Doble also reports that military officials told him to implicate only Samuel Ong, a former National Bureau of Investigation official who exposed the election scandal. He produced tape recordings implicating Macapagal-Arroyo in cheating to win her 2004 reelection. Ong died of lung cancer in May 2009. Corrupt military officials apparently wanted the deceased whistleblower to take the fall for the scandal. Jose Barredo Jr., another member of the whistleblower’s group, told GMA that he plans to disclose how funds for a seedling and fertilizer fund were diverted to Macapagal-Arroyo's campaign. Jueteng whistleblower Sandra Cam told GMA that her group applied for the Witness Protection Program because it trusts in the leadership of its present head, Secretary Leila de Lima. I reported here last March about the murder of jueteng whistleblower Wilfredo "Boy" Mayor. Jueteng is an illegal numbers game, and Mayor's testimony helped convict a political ally of Macapagal-Arroyo. These developments demonstrate the power of having whistleblower protections strong enough to convince whistleblowers that they will be safe in making their disclosures. The closer the issues are to national security, the stronger the protections need to be.

Whistleblower murdered in Philippines

Whistleblower Wilfredo "Boy" Mayor was murdered last Sunday morning in Pasay City, Philippines. According to numerous news reports, gunmen on two motorcycles attacked Mayor's vehicle (which had heavily tinted windows) while it was stopped at a red light at 4:11 am on Sunday.

Mayor had been an operator of an illegal numbers game called "jueteng." His testimony to the Philippine Senate linked President Gloria Macapagal-Arroyo's son to the illegal game. Former Lingayen-Dagupan Archbishop Oscar Cruz announced that he believes Mayor was killed because he was about to expose a concern that construction projects in Albay were being steered to a favored contractor.  This contractor was exercising monopoly power over construction, preventing effective competition. The projects were funded using the Countrywide Development Fund (CDF). My heart goes out to Mayor's family and friends as I consider how speaking truth to power exposes one to unknown levels of retaliation. Follow these links to stories by ABS-CBN, World News and GMA TV.

International Whistleblower News (November 16, 2009)

[UK] Develin, Kate, “NHS whistleblower ‘sacked for revealing dumped x-ray scans’,” Telegraph.co.uk, November 14, 2009.

Dr Otto Chan, a consultant radiologist, believes that he was labelled a troublemaker after the revelations about the Royal London. He claims that hospital bosses decided to get rid of him and that his dismissal has left him unable to get another job in the health service. He is suing the hospital for loss of earnings, future earnings and pension.Click here to read more.

[Philippines] "Why charge the whistleblowers?," The Manila Times.net, November 13, 2009. 

We agree with the senators and others who have criticized the Senate joint three-committees’ report on the ZTE scandal for including the two main whistleblowers among the persons recommended for prosecution. Senate Minority Leader Aquilino Pimentel Jr., Senators Panfilo Lacson, Alan Peter Cayetano, and Francis Escudero were right to warn that prosecuting Messrs. Click here to read more.     

[Vietnam] "Whistleblower prompts inspection of Vietnam's Jetstar airline," EarthTimes, November 11, 2009. 

Hanoi - Vietnamese authorities are inspecting budget carrier Jetstar Pacific Airlines (JPA) after two foreign engineers fired by the company accused it of violating safety protocols, government officials said Wednesday. Jetstar Pacific's former chief engineer, Bernard John McCune of Australia, and one of his colleagues sent a letter on October 26 to the Vietnam Aviation Agency detailing several violations of safety rules. Click here to read more. 

[Canada] "Hydro employees intimidated: whistleblower," CBCNEWS, November 10, 2009.

A Manitoba Hydro whistleblower said Tuesday that employees at the publicly owned utility are being threatened to stay quiet about allegations of mismanagement and that she fears an investigation into her claims is being swept under the rug. Click here to read more.

[Russia] Whitemore, Brian, "'YouTube'Whistleblower Arrives in Moscow On Police Day, As Scandal Deepens, Radio Free Europe Radio Liberty, November 10, 2009. 

His bank card and mobile phone were blocked. He was detained on the way to the airport. And he had a tough time buying a plane ticket. But Aleksei Dymovsky, a police major in the Black Sea port city of Novorossiisk, managed to make it to Moscow, where he continued his campaign to expose what he called widespread malfeasance and corruption in Russia's law-enforcement bodies. Click here to read more. 

[UK] Award for whistleblower nurse, Press Association, November 10, 2009.

A whistleblower nurse struck off after raising concerns about poor standards of care insisted she had done the right thing as she picked up a national nursing award. Margaret Haywood secretly filmed the neglect of elderly patients for a television documentary and was struck off the nursing register for misconduct in April. She admitted breaching patient but said she had agreed to film at the Royal Sussex Hospital in Brighton to highlight terrible conditions there. Click here to read more. 

[IEA] Macalister, Terry, "Key oil figures were distorted by US pressure, says whistleblower," guardian.co.uk, November 9, 2009. 

The world is much closer to running out of oil than official estimates admit, according to a whistleblower at the International Energy Agency who claims it has been deliberately underplaying a looming confidentiality shortage for fear of triggering panic buying. The senior official claims the US has played an influential role in encouraging the watchdog to underplay the rate of decline from existing oil fields while overplaying the chances of finding new reserves. Click here to read more. 

You can download PDF files of the news in each country’s page: Canada, Philippines, Russia, UK, and Vietnam.   

Filipino Lieutenant Whistleblower Ordered To Appear Before The Military

The Philippine Navy has ordered whistleblower Lieutenant Nancy Gadian to appear before the military within 48 hours.  Lt. Gadian courageously blew the whistle on misuse of funds from the joint US-Phillipine Balikatan military exercises spurring a Philippine Navy probe into the alleged misuse of the funding.  However, instead of praising Lt. Gadian for her actions, the military has turned her into a target.
 

Now the navy is accusing Lt. Gadian of desertion from the military, false declaration and misuse of funding, extravagant expenditures and, refusal to appear before the investigating committee.  Despite facing these allegations and threats from the military, Lt. Gadian has not backed down.  She continues to deny the accusations of lavish spending and asserts that she filed her resignation on April 16th.  Three witnesses have supported Gadian’s  declaration regarding the misuse of funding.

Members of the Phillippine Senate have called on the government to protect Lt. Gadian and investigate her claims.  On May 17, Senate Loren Legarda called on the government to ensure the safety of Nancy Gadian. One week ago, Senator Rodolfo Biazon, Chairman of the Senate Committee of National Defense and Security declared his support to conduct an inquiry if Gadian cooperates with the Committee. However, the Navy’s48 hour time limit for Lt. Gadian expires on May 22.  If she does not show up, the military will “enforce what the military regulations and rule says,” Navy spokesman Lt Col. Edgard Arevalo said.

We are not sure what is Nancy Gadian’s destiny is as another whistleblower in this global society.  In her article on Filipino whistleblowers, Ninez Cacho-Olivares notes that historically, whistleblowers have either been “charged for some crime and arrested or their reputations are destroyed.”  We hope the Philippine Government will support accountability and ensure that Lt. Nancy Gadian does not meet the same fate as these whistleblowers.  

 


Philippines Whistleblowing System


International Program of the National Whistleblowers Center



Referred Articles:

Mendez, Christina, “Secure whistleblower in Balikatan exercises fund scam,” Philstar, May 17th, 2009.

“Navy gives whistleblower 48 hours to surrender,” GMA News.TV, May 20, 2009.

Olivares, Nines Cacho, “Fate of Whistleblowers.” The Daily Tribune, May 18th, 2009.

See, Aie Balagtas, “Group rallies behind Gadian – 'the woman who has balls',” GMA News. TV, May 15th, 2009.

Solmerin, Zaff, “Navy Chief warns Gadian vs. testifying in Congress, Business Mirror, May 18th, 2009.

Uy, Jocelyn, “Balikatan Whistleblower risks losing benefit, Philippine Daily Inquirer, May 17th, 2009.