TESDA’s pork money mill: Who gets how much, how?

SO WHAT if pork money or earmarks for legislators line the budget of the Technical Education and Skills Development Authority (TEDA)? Who gets how much, and how?

Why, in the first place, do legislators have to course their pork monies to TESDA for allotment to private Technical Vocational Institutions (TVIs)?

TESDA Director General Joel Villanueva has expressed a sense of powerlessness when it comes to how pork funds lodged at his agency should be expended, and for which TVIs.

Villanueva told PCIJ last week that legislators, through TESDA’s directors and managers at its regional and provincial offices, are the ones who get to accredit and select the TVIs.

“They were the ones who dictated the costing, the partners, ‘yung ibang tools,” he said, referring to lawmakers who had already channeled their pork to the TVIs through TESDA. Villanueva added that the legislators get to identify which TESDA unit should manage their pork, and the officers of these units in turn get to enroll the service of TVIs.

“The funds are given to the regional and provincial offices,” he said. “Ayoko namang sa akin ma-sentro lahat, kaya sabi ko, kayo mag-manage niyan… ibang-iba ako kaysa sa nauna sa akin dito (I didn’t want everything to be centralized under me so I told them, you manage that… this is where I differ from my predecessor).”

By Villanueva’s account, TESDA has turned into a reform and reformist agency, in part because it had a controversy-ridden past under his predecessor. Augusto ‘Buboy’ Syjuco Jr. was TESDA’s boss.

While he was serving as a congressman of Iloilo’s second district from 1998 to 2001, Syjuco has been charged with graft for alleged misuse of his pork-barrel funds. That, however, was just the beginning of Syjuco’s entanglement with pork and the courts.

Since 2013, the Office of the Ombudsman had filed graft charges against Syjuco before the Sandiganbayan four times.

Just last March, the Ombudsman filed a new criminal case against Syjuco for the purchase of P9.25-million worth of books using TESDA money, through a printing contract that was awarded sans public bidding.

The Ombudsman indicted Syjuco for awarding the contract in July 2006 to Grand C. Graphics, Inc. to print 250,000 copies of a book that he himself wrote, Salabat for the Filipino Soul Book II and which he described to be “a book of Filipino virtues” and “a career guide for Filipino children.”

But Villanueva’s depiction of a TESDA now fairly high in the integrity meter is not one shared by some TESDA employees and partner training institutes.

Two senior employees of TESDA told PCIJ a different story – of “scholarship vouchers” awarded to favored private contractors by TESDA’s regional and provincial offices, in exchange for commissions of 20 to 35 percent of contract cost paid up– front or at the close of the program, always in cold cash.

One of the insiders explained, “At the end of the program, when it’s time for the PO to pay the chosen schools, that’s when there are ‘arrangements.’”

Uso sa mga PO (provincial offices) ang ganyang kalakaran (Such shenanigans are popular at the POs),” said one of the insiders. “Since PO disburses the scholarship vouchers to their chosen private schools, and the chosen private schools will report their scholars, true or false, there is no way to find out talaga.

By contrast, the source added, “ang public schools at TESDA training centers, totoo talaga ang naka-declare kasi talagang mahihirap ang mga clients (with the public schools and TESDA training centers, what’s declared is true because the clients are really poor).”

By the account of the source and another TESDA insider, the amounts involved are huge. One of the sources said that the collection, per contract, “would range from 100K (100 thousand pesos) up, depending on the number of scholarships awarded to the schools, which amounts to millions per school.”

The second source and TESDA insider rued that the moneymaking ventures continue to thrive at TESDA because many of its officers and senior employees own either a school or an assessment center with TESDA accreditation.

“The officers of TESDA with have schools or assessment centers, that’s how they earn,” said the second insider. The source added that scholars or schools that want to get such accreditation, in fact, do not have to pay any fees, “but centers are paid by TESDA on a per-head basis times the amount of assessment fee. So, depende ‘yun kung ano trade nila (it depends on what their trade is).”

Both sources also say that on the TESDA board sit at least two owners of schools located in Cavite, Batangas, and Metro Manila, that have been doing good business with TESDA.

“Corruption in the assessment (of scholars) happens,” the second source said, “when private schools pay back the PO, since they were allowed to participate in the assessment. Lahat ng nag-serve as TESDA representative from PO will receive from the assessment centers, JO (job order) included.” The “minimum amount” in such transactions,” said the source, “is 40K pataas (forty thousand pesos up).”

That such sums run into so many digits is not surprising since huge amounts of pork monies have poured into TESDA. In 2012, lawmakers had practically smothered the agency with their PDAF.

Of the 72 legislators who allocated a total of more than P300 million to TESDA in 2012, 68 were party-list and district representatives who channeled P284-million of their PDAF through TESDA. Four senators gave P17.5 million more. — PCIJ, August 2015

TESDA’s 11 TVIs: Sister firms, tied to politicians, not SEC-registered

THEY ARE supposed to be top-rate technical vocational institutions (TVIs), which is why they bagged millions of pesos from the Technical Education and Skills Development Authority (TESDA).

Or actually, from the pork-barrel funds of some legislators that had been loaded up in TESDA’s agency budget.

But the Commission on Audit (COA), in its report on TESDA for 2013, had found them “non-compliant” with TESDA’s training rules, and their project implementation, marked with “discrepancies.” Generally, for a lot more money per seminar, they trained fewer students across shorter training periods, COA said.

The e-Fund releases portal of the Department of Budget and Management (DBM) show that at least 19 legislators had allocated between P12.5 million and P90.95 million of their pork shares from 2010 to 2013 to the 11 TVIs named in COA’s report.

Read Part 6 of our series on “Pork a la Gloria, Pork a la PNoy”:

* 11 TVIs at TESDA: Sister firms, linked to pols, not SEC-registered

At least two of the 11 TVIs – Ilaw ng Bayan and I-Connect Solutions Tek Bok Inc. – were even described by state auditors as having not one of the livelihood programs that “could be associated with any of the programs per training regulations or competency-based curricula.”

Two others have evident political connections.

The first,, Ilaw ng Bayan, which has Quezon City Vice Mayor Joy Belmonte as an incorporator (as well as its president, according to its Facebook page), has two SEC registration records. It first registered in 1993 but that is now listed to have been revoked. It registered again in 2015 for this purpose: “to establish an educational scholarship/dormitory shelter, and/or other assistance for deserving disadvantageous students.”

Also referred to in its documents as the Quezon City Skills and Livelihood Training Center, Ilaw ng Bayan’s course offerings include “bartending, hilot, food and beverages, barista, housekeeping,” according to its Facebook page.

The second I-Connect Solutions Tek Bok Inc. listed the residential address of its board members Mark Rainier T. Luz (board chairman), Danilo Lingad, and Carla Bumagat as its office address, too. But that same address belongs to two more entities: Margin Multi-Ventures and Construction Corporation, a private company, and the Party-list group 1-ABAA (1-Ako Babaeng Astig Aasenso), which ran but lost in the 2010 elections. 1-ABAA became controversial in 2010 when it proposed a law putting a 10-year cap on the validity of a marriage contract.

Margie Tajon was at that time named as the 1-ABAA president. A certain Margie Tajon Luz also appears as the president and board chair of another TESDA TVI, Gabaymasa Foundation. Inc. In December 2014, the Ombudsman filed graft and malversation charges against Luz and Gabaymasa for their involvement in the so-called “fertilizer fund scam.”

Three others, which altogether received nearly half the total pork that the 19 legislators coursed through TESDA in 2013, are sister companies. Asian Spirit Career Foundation, Inc., Asian Touch International Training Institute, Inc., and Phil-Best Entrepreneurs were incorporated by same persons.

In an effort to understand why, despite these COA findings, these TVIs remain in the good graces of some legislators, PCIJ checked out the files of the Securities and Exchange Commission (SEC), mined DBM’s databases on PDAF releases, and visited with some of them at their offices. – PCIJ, August 2015

TESDA: Pork, pricey seminars, dicey docs, favored contractors

TWO PICTURES in stark contrast have been drawn about one agency: the Technical Education and Skills Development Authority (TESDA).

The first, a none-too-flattering one, by the Commission on Audit (COA), which speaks of “deficiencies” by the dozen in the agency’s implementation of its massive training and scholarship programs.

The second, glowing and pretty, by President Benigno S. Aquino III, who has heaped generous praise on TESDA on many occasions, citing it as an exemplar of performance in the executive branch, in terms of the volume of scholars that it has trained in recent years.

Among other things, COA says that there have been many “deficiencies” in TESDA’s scholarship programs funded with pork monies and awarded to private training institutes, including missed number of target beneficiaries, overpricing of supplies and training courses, contracts awarded without bidding, improper selection of beneficiaries, seminar attendance sheets of doubtful integrity, and the holding of different seminars on the same day and time for the same dubious beneficiaries, but at different locations.

Read: Part 5 of our series on “Pork a la Gloria, Pork a la PNoy”:

* TESDA’s billions: Goody story turns sorry with pork

COA’s 2013 annual agency report on TESDA said such deficiencies were particularly present in its implementation of two major programs that had been expanded using lumpsum monies that had been loaded up in TESDA’s budget that year: Training for Work Scholarship Program (TWSP) and Cash-for-Training Project (C4TP).

The report also revealed what the state auditors said was “non-compliance” in the implementation of TWSP by TESDA’s partner Technical Vocational Institutions (TVIs) or partner training entities from the private sector.

For 2012 and 2013, data from COA and the Department of Budget and Management (DBM) showed that TESDA received a total of P427.09 million in PDAF from legislators, including 19 who gave their pork monies to projects implemented by at least 11 apparently favored TVIs.

TWSP had been funded under TESDA’s regular budget in previous years. In 2012, TWSP was expanded, while C4TP was started as “a program funded from DSWD (Department of Social Welfare and Development) designed to focus on the potential contributions of disadvantaged youth to nation building by engaging them in gainful employment by providing relevant, high quality and efficient technical education and skills development by TESDA.”

In 2012, TESDA received additional monies from the Priority Development Assistance Fund (PDAF) of legislators. It also got Disbursement Acceleration Program (DAP) funds that year, one sum being its own DAP allocation, and another representing a big portion of the DAP assigned to the DSWD.

But it was when TESDA had expanded too fast and its budget had grown too fat that COA found major discrepancies in project implementation. This was even as COA cited that TESDA had reported good to outstanding results on its “key performance indicators” – i.e., number of scholars trained, graduated, assessed, and employed, and number of seminars conducted – in 2013.

In the end, the picture that emerges is that while TESDA has been striving to surpass the targets of its regular programs, its more generously funded training tracks have gotten caught in a web of conflicting interests – politics, commerce, and corruption – involving some TVIs favored by a number of legislators, and favored further by some TESDA officers at the central, regional, and provincial offices.

It’s an image that TESDA Director General Emmanuel Joel Villanueva obviously doesn’t cherish. Speaking with PCIJ by phone recently, he said that his problem with COA is it does not update its prior year’s reports to reflect agency action on its findings in subsequent months.

“Ang ano ko lang sa COA, every time they come out with report, they do not lift a finger to update the report and say naayos na. Hindi raw nila policy ‘yun.. (My concern with COA is, every time they come out with a report, they do not a lift a finger to update the report and say that the problem has been addressed. They say it’s not their policy),” Villanueva said

He also said that despite COA’s adverse findings on TESDA in COA’s report for 2013, “since I took over, at no time has COA issued a notice of disallowance or notice of suspension on me or TESDA.” Villanueva became TESDA chief in July 2010.

COA found at least 11 TVIs non-compliant or with deficiencies in implementing TWSP: Asian Touch International Institute Inc.; Asian Spirit Career Foundation, Inc.; Meridian International College of Business, Arts and Technology; Phil-Best Entrepreneurs; Ilaw ng Bayan Foundation, Inc.; Informatics Computer Institute Valenzuela; I-Connect Solutions Tek Bok Inc.; Matuwid na Landas Foundation, Inc.; Serbisyong Pagmamahal Foundation, Inc.; Mechatronics Technologies, Inc.; and BSC Technological Institute, Inc.

PCIJ research on these TVIs reveals that two of them had already ceased operations in 2014, after cornering multimillion-peso contracts from TESDA. Two others have clear political connections, while at least two more also appear to have links with a Napoles-like network of dubious nongovernment organizations (NGOs). One TVI meanwhile was incorporated in the same year that it snagged multimillion-peso projects with TESDA. Three others are sister-firms that share the same set of directors and owners.

Altogether, according to COA and DBM reports, there were at least 19 legislators who enabled these TVIs to secure contracts with TESDA: Representatives Mar-Len Abigail Binay, Monique Yazmin Lagdameo, Ma. Rachel Arenas, Oscar G. Malapitan, Romero Federico S. Quimbo, William Irwin C. Tieng, Cinchona C. Cruz-Gonzales, Sigfrido R. Tinga, Sherwin N. Tugna, Antonio C. Alvarez, Victorino Dennis M. Socrates, Arnel M. Cerafica, Cesar V. Sarmiento, Tobias Reynald M. Tiangco, and Winston Castelo. – PCIJ, August 2015

TESDA: Pork, pricey seminars, dicey docs, favored contractors

TWO PICTURES in stark contrast have been drawn about one agency: the Technical Education and Skills Development Authority (TESDA).

The first, a none-too-flattering one, by the Commission on Audit (COA), which speaks of “deficiencies” by the dozen in the agency’s implementation of its massive training and scholarship programs.

The second, glowing and pretty, by President Benigno S. Aquino III, who has heaped generous praise on TESDA on many occasions, citing it as an exemplar of performance in the executive branch, in terms of the volume of scholars that it has trained in recent years.

Among other things, COA says that there have been many “deficiencies” in TESDA’s scholarship programs funded with pork monies and awarded to private training institutes, including missed number of target beneficiaries, overpricing of supplies and training courses, contracts awarded without bidding, improper selection of beneficiaries, seminar attendance sheets of doubtful integrity, and the holding of different seminars on the same day and time for the same dubious beneficiaries, but at different locations.

Read: Part 5 of our series on “Pork a la Gloria, Pork a la PNoy”:

* TESDA’s billions: Goody story turns sorry with pork

COA’s 2013 annual agency report on TESDA said such deficiencies were particularly present in its implementation of two major programs that had been expanded using lumpsum monies that had been loaded up in TESDA’s budget that year: Training for Work Scholarship Program (TWSP) and Cash-for-Training Project (C4TP).

The report also revealed what the state auditors said was “non-compliance” in the implementation of TWSP by TESDA’s partner Technical Vocational Institutions (TVIs) or partner training entities from the private sector.

For 2012 and 2013, data from COA and the Department of Budget and Management (DBM) showed that TESDA received a total of P427.09 million in PDAF from legislators, including 19 who gave their pork monies to projects implemented by at least 11 apparently favored TVIs.

TWSP had been funded under TESDA’s regular budget in previous years. In 2012, TWSP was expanded, while C4TP was started as “a program funded from DSWD (Department of Social Welfare and Development) designed to focus on the potential contributions of disadvantaged youth to nation building by engaging them in gainful employment by providing relevant, high quality and efficient technical education and skills development by TESDA.”

In 2012, TESDA received additional monies from the Priority Development Assistance Fund (PDAF) of legislators. It also got Disbursement Acceleration Program (DAP) funds that year, one sum being its own DAP allocation, and another representing a big portion of the DAP assigned to the DSWD.

But it was when TESDA had expanded too fast and its budget had grown too fat that COA found major discrepancies in project implementation. This was even as COA cited that TESDA had reported good to outstanding results on its “key performance indicators” – i.e., number of scholars trained, graduated, assessed, and employed, and number of seminars conducted – in 2013.

In the end, the picture that emerges is that while TESDA has been striving to surpass the targets of its regular programs, its more generously funded training tracks have gotten caught in a web of conflicting interests – politics, commerce, and corruption – involving some TVIs favored by a number of legislators, and favored further by some TESDA officers at the central, regional, and provincial offices.

It’s an image that TESDA Director General Emmanuel Joel Villanueva obviously doesn’t cherish. Speaking with PCIJ by phone recently, he said that his problem with COA is it does not update its prior year’s reports to reflect agency action on its findings in subsequent months.

“Ang ano ko lang sa COA, every time they come out with report, they do not lift a finger to update the report and say naayos na. Hindi raw nila policy ‘yun.. (My concern with COA is, every time they come out with a report, they do not a lift a finger to update the report and say that the problem has been addressed. They say it’s not their policy),” Villanueva said

He also said that despite COA’s adverse findings on TESDA in COA’s report for 2013, “since I took over, at no time has COA issued a notice of disallowance or notice of suspension on me or TESDA.” Villanueva became TESDA chief in July 2010.

COA found at least 11 TVIs non-compliant or with deficiencies in implementing TWSP: Asian Touch International Institute Inc.; Asian Spirit Career Foundation, Inc.; Meridian International College of Business, Arts and Technology; Phil-Best Entrepreneurs; Ilaw ng Bayan Foundation, Inc.; Informatics Computer Institute Valenzuela; I-Connect Solutions Tek Bok Inc.; Matuwid na Landas Foundation, Inc.; Serbisyong Pagmamahal Foundation, Inc.; Mechatronics Technologies, Inc.; and BSC Technological Institute, Inc.

PCIJ research on these TVIs reveals that two of them had already ceased operations in 2014, after cornering multimillion-peso contracts from TESDA. Two others have clear political connections, while at least two more also appear to have links with a Napoles-like network of dubious nongovernment organizations (NGOs). One TVI meanwhile was incorporated in the same year that it snagged multimillion-peso projects with TESDA. Three others are sister-firms that share the same set of directors and owners.

Altogether, according to COA and DBM reports, there were at least 19 legislators who enabled these TVIs to secure contracts with TESDA: Representatives Mar-Len Abigail Binay, Monique Yazmin Lagdameo, Ma. Rachel Arenas, Oscar G. Malapitan, Romero Federico S. Quimbo, William Irwin C. Tieng, Cinchona C. Cruz-Gonzales, Sigfrido R. Tinga, Sherwin N. Tugna, Antonio C. Alvarez, Victorino Dennis M. Socrates, Arnel M. Cerafica, Cesar V. Sarmiento, Tobias Reynald M. Tiangco, and Winston Castelo. – PCIJ, August 2015

TRC in zombieland still, 2 years after pork scam

AT THE height of the media hoopla over the pork-barrel scam two years ago, Dennis Cunanan had a perennially furrowed brow that matched a grim countenance. But the Dennis Cunanan who sat down with PCIJ recently looked relaxed – which is not exactly what one would expect from someone facing multiple graft cases at the Sandiganbayan.

The cases stemmed from Cunanan’s stint at the Technology Resource Center (TRC), a government-owned and controlled corporation (GOCC) attached to the Department of Science and Technology (DoST).

In 2013, TRC had been among five state firms singled out for possible abolition by the Governance Commission for Government Owned and Controlled Corporations (GCG), in large part because of their role as implementing agencies of allegedly anomalous pork-barrel projects.

In the last quarter of 2013, President Benigno Aquino III, approved the abolition of Zamboanga del Norte College Rubber Estate Corporation (ZREC), the National Agribusiness Corporation (NABCOR), and the Philippine Forest Corporation (PFC). Left standing, however, are the National Livelihood Development Corporation (NLDC) and the firm once headed by Cunanan, TRC.

Yet while TRC lives, it does so in zombieland.

TRC, insiders told PCIJ, “is still open but on the way to closing shop.” A DOST Technical Working Group, they say, has set up “parameters on the manner of closing operations.”


Read, Part 4 of our report on “Pork a la Gloria, Pork a la PNoy’:

* TRC in zombieland still, two years after pork scam

Until February this year, however, TRC has continued to offer livelihood training seminars, for fees of P1,815 (decorating balloons) to P4,269 (commercial bread-making) per person, including one held in Gerona, Tarlac on how to bake muffins and cookies.

On its Facebook page that links out to the DOST website, TRC this year has also offered training seminars on jewelry appraisal and pawnshop operation; accounting and record-keeping for small businesses, setting up a hardware/construction supply store, travel agency, bakery, silkscreen printing, retail store, beauty parlor, and other small business operations; and making Chinese dimsum, herbal soap and detergents, trendy balloons, processed meat, and doing tilapia culture, among others.

As the DOST’s corporate arm, TRC supports research and technology by providing investments in innovations and rolling out or marketing the products of these studies. But state auditors say that somewhere along the way TRC became a conduit for the flow of pork monies to fake nongovernment organizations (NGOs).

The Commission on Audit’s (COA) Special Audit Report on the disbursement of the Priority Development Assistance Fund (PDAF), or simply pork barrel, form 2007 to 2009 abounds with serious allegations against TRC.

According to COA, P2.44 billion worth of pork monies was transferred to TRC during the period, and that in turn, TRC transferred nearly the entire amount, P2.432 billion to bogus NGOs linked to Janet Lim-Napoles, the supposed pork barrel scam queen.

The projects, the COA report said, were endorsed by a total of 143 senators and congressmen, notably:

* Seven senators — Edgardo Angara, Jose ‘Jinggoy’ Estrada, Juan Ponce Enrile, Gregorio ‘Gringo’ Honasan, Lito Lapid, Ralph Recto, Ramon ‘Bong’ Revilla. Of the seven, Revilla allotted the biggest amount of PDAF to TRC: P127.5 million.

* 136 members of the House of Representatives, including then Surigao del Sur 1st District Rep. Philip Pichay, who allotted P209.4 million of his PDAF to TRC.
From 2007 to 2009, said the COA report, TRC transferred the P2.432-billion pork funds it received to 39 NGOs.

Of these NGOs, eight had been organized by Napoles.

In total, the Napoles-linked NGOs got P478.64 million from TRC.

But COA said that the biggest payout from TRC to a single NGO went to Aaron Foundation Philippines Inc.: P476.41 million. – PCIJ, August 2015