DICT faces 'ghost internet' probe over alleged overpricing, undelivered services

MANILA, Philippines — The Department of Information and Communications Technology (DICT) is under a fact-finding investigation by the Office of the Ombudsman over allegations of a "ghost internet" scheme, where public funds may have been paid for undelivered internet connections and IT systems equipped with substandard or even fake software. The investigation centers on projects of the Department of Information and Communications Technology, including the government's Free Wi-Fi program. Assistant Ombudsman Mico Clavano said investigators are examining whether contracted internet sites were actually installed and functioning, whether the government was billed for connectivity that was never delivered, and whether prices for hardware, software and services were inflated. One potential loophole, Clavano said, is that government inspections may have focused on physical equipment such as machines and routers without adequately checking the software installed in them. "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 A contractor can install cheaper, outdated, or even fake software while still charging the government full price for the real thing," Clavano said at a September 18 briefing. "Because nobody verifies the software after the hardware is approved, the overpricing goes undetected." Investigators are also looking into who approved, certified or authorized payment for projects that may not have been fully delivered. "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 were they inflated?" Clavano said. The investigation also covers allegations that some sites under the government's Free Wi-Fi program had equipment installed but did not actually provide internet access. "Kaya parang niloloko na lang ho 'yung taumbayan dahil sinasabi na may free internet, free Wi-Fi, 'yun pala naglalagay lang sila ng mga router na wala namang lumalabas na internet," Clavano said. ("So it appears the public is being fooled because they are told there is free internet or free Wi-Fi, when routers are installed but no internet service is actually coming through.") The Ombudsman's inquiry remains at the fact-finding stage, and no findings of liability have been made. The DICT said Sunday, September 20 that it has yet to receive formal notice of the investigation but is prepared to provide records, technical information and system data. "Although no formal notice has been received from the Office of the Ombudsman to date, the DICT proactively welcomes the inquiry," the agency said. The DICT said Secretary Henry Aguda has ordered tighter monitoring of the Free Wi-Fi program, including technical audits and contractual sanctions for reported inactive or non-performing sites. The agency also said it upgraded its network monitoring system to provide real-time information on Free Wi-Fi sites and verify whether contractors are delivering the services for which the government is paying.