Administration allies assail Recto over SICPA controversy

By BEN R. ROSARIO
January 12, 2010, 3:13pm

Senior administration congressmen Tuesday chided former Economic Planning Secretary Ralph Recto for exploiting the controversy over the $20 billion stamp tax proposal of Swiss firm SICPA as part of his campaign propaganda to recover his old Senate seat.

Antique Rep. Exequiel Javier, chairman of the House Committee on Ways and Means, also asked Recto to present his platform to voters instead of trying to revive the National Broadband-ZTE controversy that has long been resolved.

Recto assailed alleged attempts of the Arroyo government to push the SICPA stamp tax proposal. He likened the issue to the NBN-ZTE scandal.

A former member of the Arroyo administration, Recto is trying to regain his old seat in the Senate that he lost in a re-election bid in 2007. He ran under the administration-backed Team Unity then.

Javier, together with Camiguin Rep. Pedro Romualdo, branded as “pure hallucination” Recto’s claim that the SICPA proposal is an NBN-ZTE scam waiting to happen.

Javier said Recto is apparently unaware that government has not yet entered into a contract with SICPA.

He pointed out that the proposal is undergoing a Swiss challenge and is the subject of a congressional investigation.

Arroyo allies have been opposing the project over legal questions.

“The committee held hearings on the SICPA proposal because of various concerns against it, including allegations that a forthcoming deal on it could be onerous and that consumers would shoulder the burdensome pass-on cost. With our and the public’s vigilance on the proposal how could Recto conclude it could be another scam in the making?” said Javier.

Romualdo, chairman of the committee on good government and public accountability, said Recto’s warning of another NBN-ZTE scam-type through SICPA involving the government was absurd and groundless.

“Recto should present his platform, if he has any, instead of issuing alarming statements about SICPA that it could be another NBN-ZTE scam just to malign the Arroyo administration and family,” said Romualdo.

Romualdo reminded Recto that the NBN-ZTE project is a dead issue after President Arroyo canceled this in September 2007.

“He should stop reviving the issue and dragging the President and the First Gentleman because the Ombudsman already cleared them of criminal liabilities in relation to the project.”

Romualdo said members of Congress would again invite finance and internal revenue officials if there are more issues related to SICPA that need clarification.

“Recto is just exaggerating with his prejudgment that the SICPA stamp-tax proposal could be similar to the NBN-ZTE project. We in Congress will ensure that there are adequate safeguards to ensure the proper, effective and honest implementation of the SICPA project if this is approved by the government,” the former Camiguin governor said.