A perfect scam
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The so-called Poverty Education and Alleviation Certificate (PEACe) Bonds issued in 2001 was among the biggest racket sprung under the previous administration, all costing the Filipino taxpayers P35 billion which government gave away to a private group called Caucus of Development NGO Networks (Code-NGO) a P1.4 billion windfall, tax free.
The P12 billion bond float was a payback for the backers of Gloria Arroyo who supported her coup d’etat against then sitting President Joseph Estrada in 2001. The group counted among others, now Social Work and Development Secretary Dinky Soliman and Peace Process Adviser Teresita Deles.
The scam was hatched through official channels that probably included then Gloria’s Finance Secretary Jose Isidro Camacho since his sister Marissa Camacho was the head of the Code-NGO and such float needed to pass through a gauntlet of approvals from regulators, including the Bangko Sentral ng Pilipinas (BSP). The float was even a first for a so-called zero coupon bond where in maturity the P12 billion value of the bonds when it was issued will be worth P35 billion by this Oct. 18 when these mature..... MORE
Source: The Daily Tribune
URL: http://www.tribuneonline.org/commentary/20111010com1.html
1 comment
gawain ng mga dmnyong kunwa'y makabayang tupa. grrrr.
"And what was done about it? All that the scammers received as penalty was the belated imposition of a 20 percent tax which should have been collected anyway had the transaction not received the immense manipulative influence during Gloria’s administration.
"The bond issue was unique since it was issued not for any government need but was tailor fit for Code-NGO.
"The element of abuse included in the fact that it was underwritten by a bank which also figured prominently as benefiting from Edsa II, Rizal Commercial Banking Corp. (RCBC) of the Yuchengco group."
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