Press Release
December 21, 2007

ROXAS CALLS ON GOVERNMENT TO JUNK COVINGTON CONTRACT

Senator Mar Roxas called on the government to publish in full the provisions of a $50-million six-month contract signed between the Philippine Embassy in Washington D.C. and a United States lobby firm known as Covington & Burling LLP.

"If true, this amount is even bigger than what we get from the US in military aid. If they can't defend this in Plaza Miranda or any palengke in the country, then they should junk it altogether," Roxas said.

Roxas, chairman of the Senate trade and commerce committee, noted that the contract is another example of wasteful and non-transparent spending of the people's hard-earned money.

"What can Covington do that our own Philippine Embassy cannot accomplish? $50-million for a prominent US lobby firm is P2 billion worth of assistance to disadvantaged sectors like farmers, fishermen, distressed OFWs, malnourished children and many others," he said.

"Tama ba na ang mga ganitong kontrata ang pinopondohan ng buwis ng bayan? Bakit sa ganitong mga transaksyon eh ang bilis nilang pumayag, pero sa mga panukala katulad ng zero VAT on oil ay ang bilis nilang humindi," he added.

"Glaring examples of such overpriced and needless foreign contracts are precisely why it's better to let the people enjoy part of their money by suspending the EVAT on oil than let government decide on how such revenues should be allocated," he explained.

He recalled that the failed Venable contract which was priced at P50 million drew a huge outcry from the people and members of Congress.

"I am familiar with the rates charged for normal trade access or information access. This amount is for something more, perhaps like getting the US Defense and Military establishment to soften resistance to a new strain of Martial Law," he said.

"Paulit-ulit na lang ang mga ganitong uri ng pagkakamali kaya napakababa ng kredibilidad ng ating pamahalaan," Roxas said.

The senator said that foreign contracts such as the Covington deal must go through public bidding and be imbued with transparency and accountability.

"Who is behind this contract and why? Who is ready to stand before the people and explain what this contract is all about and why $50-million of the people's money should be spent on this rather than on school-feeding programs, better health services, and other priorities?" he said.

Based on news reports, Covington & LLP has been engaged to "promote the interests of the Republic of the Philippines with the US Congress and the US Government on a range of political, economic, and security issues" and other tasks.

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The reported contract provides that "the term of the individual consultant shall be, at most, six months, renewable at the option of the appointing Head of the Procuring Entity," referring to Gaa. The consultant will "work closely with the Embassy of the Philippines in connection with the following tasks:"

  • Promote the interests of the Philippines with the US Congress and the US government on a range of political, economic, and security issues.

  • Support efforts that can result in increased US trade opportunities for the Philippines.

  • Support efforts that can result in increased foreign direct investment from US companies.

  • Support efforts to develop new initiatives or expand current programs that support the ability of the Philippine Armed Forces to strengthen capabilities in the areas of security and anti-terrorism.

  • Work with Philippine government officials to promote increased levels of US Development Assistance to the Philippines.

  • Ensure that members of the US Congress and government officials are regularly and accurately updated on developments in the Philippines to promote understanding of the importance and positive developments taking place in the country.

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