Ombudsman flags DICT, begins fact-finding for ‘ghost internet’ projects

The 'ghost internet' projects deal with government contracts where hardware and related software are bought by the government, but the software installed may be either outdated or fake, leading to project overpricing

MANILA, Philippines – The Office of the Ombudsman announced in a press briefing on Friday, September 18, that it was conducting a fact-finding mission on what it called “ghost internet” projects.

The “ghost internet” projects deal with government contracts where hardware and related software are bought by the government for billions of pesos, but the software installed within the devices purchased may be either outdated or fake, leading to project overpricing.

Assistant Ombudsman Mico Clavano said during the briefing, “Once the hardware — the machines, the routers — are delivered and passes inspection, everyone assumes the software that’s supposed to run on it is there as well. But nobody actually checks, and there comes the loophole.”

“A contractor can install cheaper, outdated, or even fake software while still charging the government full price for the real thing. Because nobody verifies the software after the hardware is approved, the overpricing goes undetected,” Clavano added.

It is only found out when systems break down or when somebody digs into the matter further. The investigation, Clavano said, will center around the DICT and will seek to answer four basic questions.

• Were the contracted sites actually installed and are they working?
• Was the government billed for connectivity and services that were never delivered?
• Were the prices of hardware, software, and services reasonable or inflated?
• Who approved, certified, or released payments for projects that were not delivered?

Clavano also said the scope of the investigation will deal with entirety of contracts related to DICT initiatives, but did not specify particulars as the fact-finding process is ongoing.

The Ombudsman, in the same press briefing, confirmed that graft complaints are now pending against members of the Villar family due to allegations related to PrimeWater Infrastructure Corporation. – Rappler.com