CS Oban Retires After Cleaning the AFP

MANILA

OUTGOING Armed Forces of the Philippines Chief of Staff Lt. Gen. Eduardo Oban Jr. retired on 13 December 2011 after cleaning up the AFP and restoring integrity and honesty among the ranks and officers in the service. That accomplishment happened only within nine months as armed forces top general.

President Benigno S. Aquino III appointed him to the post when the agency reeked of corruption, and its image seriously tarnished.

Our gratitude, General, to your valuable contribution in fighting graft and corruption in government!!!

Cases Filed Against FPGMA

FORMER President Gloria Macapagal-Arroyo has started receiving various corruption-related cases before the Office of the Ombudsman. Starting from the most recent to the earliest, these filed cases include allegations of many things.

Plunder: Funnelling of Public Funds

The Philippine Charity Sweepstakes Office (PCSO) filed on 7 December 2011 the case against FPGMA for funnelling P391.9 million of public funds under the care PCSO.

From 2007 through 2010, the former chief executive allegedly conspired with PCSO officials to funnel intelligence fund by "circumventing," and/or violating the subject COA circulars relative… to the liquidation of complainant PCSO’s intelligence/confidential funds.

Rosario Orearte. As PCSO president, Orearte wrote to FPGMA eight times, at least twice a year, requesting that she be allowed to draw from the agency's intelligence fund. On 4 January 2010 (election year) she managed to draw half of the total of P 300 million. During the Senate inquiry, Sen. Franklin Drilon said the PCSO intelligence funds in 2009, amounting to P116.4 million, were spent against bomb threats, kidnapping, destabilization and terrorism, which were irrelevant to the agency’s mandate and functions. She also admitted to using the intelligence funds for blood money for the families of persons killed by overseas Filipino workers and for relief operations for victims of natural disasters. The rest of the money however could not be accounted for. [Philippine Daily Inquirer]

Electoral Sabotage: Cheating in the 2007 Elections

After a joint Commission on Election(COMELEC)-Department of Justice (DOJ) wrapped up its fact-finding review, COMELEC filed on 18 November 2011 the electoral sabotage complaint before Office of the Ombudsman.

On or before 14 May 2007, FPGMA and two other co-accused allegedly conspired and helped each other to "12-0" victory in the senatorial candidate using felonious and unlawful tampering of the provincial certificate of canvass (PCOC) of votes, the statements of votes (SOV) by city or municipality, and summary statement of votes (SSOV) for the province of Maguindanao.

Lintang Bedol. Under orders of governor Andal Ampatuan Sr., executing the FGMA verbal instruction, then COMELEC official Bedol proceeded to tamper the PCOC, SOV, and SSOV, adding votes for the 12 Team Unity candidates. The tampered votes ranged from 86,122 to 196,157. [Philippine Daily Inquirer]

DEVELOPMENTS

Presidential Social Fund
The Commission of Audit (COA), in its 2010 report on the Office of the President, disclosed on 14 January 2012 the misuse of the Social Fund of former president Gloria Macapagal-Arrowyo amounting to P1.268 billion. P391 million went to several NGOs--GMAC Foundation, Bicol Network for Community Organizing and Linkages, Philippine Bamboo Foundation, and some others--without disbursement vouchers and supporting documents. The rest went to government agencies. However, all of these were transferred as donations, which COA rules prohibit, skirting around transparency and responsibility in the use of public funds. Donations cannot be routinely checked for proper use of funds and accountability. [The Philippine Daily Inquirer]

FG Arroyo Charged with 18 for Corruption

THE SENATE BLUE Ribbon Committee brought the case on 13 October 2011 to the Ombudsman for filing against former First Gentleman Miguel Arroyo, two former government officials and 16 officers of the Philippine National Police (PNP) for violating the Anti-Graft and Corrupt Practices Act the alleged anomalous purchace by the PNP of two second-hand helicopters that Arroyo owned, and prized as brand new helicopters. PNP knew these helocopters were used, but still proceeded with the purchase under the influence of Arroyo. [DETAILS]

SUBJECT

Two old Robinson R44 Raven I helicopters that were sold to PNP as and at brand new prices

WITNESSES

Rowena Del Rosario Testimony
FG Arroyo money amounting $500,000 was used when Del Rosario paid directly the US-based manufacturer Robinson Helicopter Company (RHC) for a downpayment on five helicopters in 2009. The payment was made through a telegrahic transfer via UnionBank. [Read Report]

Archibald Po Testimony
FG Arroyo has five Robinson helicopters in the LionAir hangar in Pasay City since 2004. [Read Report]

Prospero Pichay Suspended for LWUA Purchase of Thrift Bank

On 20 May 2011 (Friday) the Office of the Ombudsman ordered the suspension of Prospero Pichay, chairman of the Local Water Utilities Administration (LWUA), over the agency's purchase of the cash-strapped thrift bank, Express Savings Bank Inc (EXSBI) in 2008, which caused the government to lose P480-million.

Included in the criminal charges that Finance Secretary Cesar Purisima filed on 5 April 2011 are members of the LWUA boards Renato Velasco, Susana Dumlao Vargas, Bonifacio Mario Pena Sr., and Daniel Landigan for anomalous acquisition of a troubled thrift bank.

LWUA is a GOCC specialized lending institution for the promotion, development and financing of local water utilities, not of thrift banks, and as depository of the reserves for capital improvement of local water utilities.

EXSBI is a Laguna-based thrift bank with an authorized capital stock of P100 million divided into one million common shares, 86.7 percent of which were originally controled by the family group of Valenzuela Mayor Sherwin Gatchalian.

According to the Monetary Board, it suffered deficiencies since 2005. By the end of 2009, it posted a capital deficiency of more than P51 million. Without even obtaining the requisite approvals from the Department of Finance, the Office of the President, and the BSP Monetary Board, LWUA pushed through with the acquisition of 485,337 shares of stock, representing around 60 percent of EXSBI outstanding capital stock worth P80-million. [Source: SUNNEX: "Ombudsman suspends ex-lawmaker," SunStar Manila 20 May 2011]

The Office of the President, under former president Gloria Macapagal-Arroyo, approved the bank acquisition four months after LWUA got the bank. The Commission on Audit reported that the LWUA investments on the bank were contrary to the 2009 budget.

KUDOS
LWUA employees led by Rustico Tutol must receive heartfelt gratitude from the Filipino people for their courage in bringing up this corrupt transaction to the court of justice.

UPDATES
Ombudsman, under Acting Ombudsman Orlando Casimiro, Orders on July 4 Pichay Dismissal and Perpetual Disqualification From Public Office. [Source]
Suspension TRO Denied by Appeals Court
The Office of the Ombudsman ordered the dismissal of Pichay from service. Subsequently, the Office of the President ordered LWUA to implement the Ombudsman order. http://www.sunstar.com.ph/breaking-news/2011/07/18/palace-sacks-lwua-chief-pichay-167503

Former AFP Chief Abadia Faces Perjury Conviction on SALN

The Office of the Ombudsman asked the Sandiganbayan First Division to declare former Armed Forces of the Philippines Chief of Staff Lisandro Abadia guilty of perjury for misrepresenting his 1992 statement of assets, liabilities, and net worth (SALN) to mask a P2.55-million rise in the value of his properties.

In 1992, his SALN declared P2,550,000 as "proceeds from the sale of realy property" identified in and covered by Transfer Certificate of Title (TCT) No. 2264, registered in the Cebu Province Registry of Deeds in the names of "Spouses Lisandro C. Abadia and Violeta C. Abadia" but... here's the but... remained in registry until 25 June 2006, 14 years later. The new land title issued thereafter, based on the sale signed between the Abadias and spouses Emilio C. Rafots Sr. and Erlinda M. Rafols, which turned out to be signed on 30 September 2002, 10 years after Abadia declared it as sold. And more than these, the property's official value only appeared as P200,000 in his 1992 SALN, covering P2.35 million in hidden income or cash assets. [Read more.]

Sources

_____: "Ex-AFP chief faces perjury conviction over SALN," ABS-CBN News.com 21 February 2011

Philippine Public Works Save P577M Through Public Bidding

Secretary Rogelio Singson of the Department of Public Works and Highways (DPWH), under the new Aquino administration in the Philippines, saves 577 million pesos for the country when it removed all negotiated contracts outstanding from the previous Arroyo government, and put the projects into public bidding instead. [Read more.]

Malacañang Initiates GOCC Governance Day

President Benigno Simeon C. Aquino III received on 28 January 2011 dividend checks worth over 29 million pesos from 19 Government Owned and Controlled Corporations (GOCCs). Topping the list of billionaire GOCCs were the Bangko Sentral ng Pilipinas (BSP), Land Bank of the Philippines (LBP), Bases Conversion and Development Authority (BCDA) and the Development Bank of the Philippines (DBP).

PCDA, AFP Rot Uncovered

The Senate Blue Ribbon Committee uncovered on 27 January 2011 (Thursday) the so-called Provision for Command-Directed Acitivities (PCDA), a name that sounded much like a pork barrel but that the AFP Chief of Staff controlls, and is being used to address his personal needs. This fund receives contribution from the J staff of the General Headquarter (GHQ) at Camp Aguinaldo (that the military refers to as the "White House"), the official residence of the Staff Chief.

In his testimony befor the committee, former AFP budget officer and retired Lt. Col. George Rabusa testified that his office is required to raise P40 million a month under the PCDA to fund the military chief's personal needs. And since the J staff contributions fall short, the major services in the Navy and the Army as well as key budgetary units like the AFP medical centers augment the shortfall in order to meet this P480 million requirement a year. The Vice Chief of Staff and the next lower ranked officers also benefited from PCDA. GMANews.TV reported the monthly allowance as P10 million with half of it used for personal needs. Vice Chief of Staffs supposedly received P1 million a month.

In fact, when former AFP Chief of Staff Angelo Reyes retired in 2001, he received from PCDA a send-off among of P50 million, according to Rabusa. A practice that has been in the military for the last 20 years. In his 20 months as military chief, he probably received around P100 million, Rabusa computed.

SOURCES
De Santos, Jonathan: "Ex-military chief's P50M 'send-off' gift exposed," SunStar Manila 28 January 2011
LBG/KBK: "Witness: Reyes got P50-M 'pabaon' when he retired from AFP," GMANews.TV 27 January 2011