Manila charity to close down

A charity foundation has announced that it is closing down amid negative reports linking the organisation to Mike Arroyo, President Gloria Arroyo's husband.

In a related development, the Senate is set to investigate the foundations formed by the president when she was vice-president, particularly on the sources and the use of funds it had solicited from patrons.

Lualhati Foundation Inc.'s former president Edgardo Manda said the organisation's image suffered heavily after it was accused by besieged House of Representatives member Mark Jimenez of being a conduit to pay-offs to the president.

"After Jimenez's accusation, who would want to donate money to the organisation? There is no point in continuing with the foundation," Manda said in a television interview. Manda is now general manager of the Manila International Airport Authority, the post to which he was appointed when Arroyo became president in 2001.

Last week Jimenez said that he gave P8 million ($150,943) to Lualhati Foundation in 1999. Jimenez's ally, Rep. Wilfredo Villarama, who was chief of staff of then vice president Gloria Arroyo, said the amount was solicited by Mike Arroyo and that he was the one who served as a link between the husband of Arroyo and Jimenez.

Manda recalled that the foundation was set up by members of the Rotary Club Makati City of which Mike Arroyo is a member. Manda, however, pointed out that neither the president nor Mike Arroyo are members or officers of the foundation. In a prepared statement, Manda said: "The president has nothing to do with the Lualhati Foundation Inc."

Manda also said that Mike Arroyo did not solicit funds on behalf of the foundation.

Meanwhile, the Senate is set to investigate the foundations set up by the president when she was vice-president, who was also concurrent secretary of the department of social welfare and development between 1998 and 1999.

Aside from contributions to Lualhati, Villarama said he collected cheques amounting to P18 million between December 1998 and June 1999, supposedly for the Ginintuan at Makabayang Alay - a foundation of the then vice-president which also has the same initials as the president.

Opposition Senator John Osmena is set to file a resolution asking the Senate to investigate "the use of foundations and the way many non-government organisations have been given tax-free status therefore resulting in losses of revenue to the government to obtain donations."