Ombudsman suspends Pichay

[edgeknife]

---

Ombudsman suspends Pichay | The Philippine Star » News » Headlines

Manila, Philippines - The Office of the Ombudsman yesterday ordered the six-month suspension of Local Water Utilities Administration (LWUA) board chairman Prospero Pichay Jr. for alleged misuse of funds.

Overall Deputy Ombudsman Orlando Casimiro, in his capacity as acting ombudsman, said there is enough evidence to prove that Pichay allowed the investment of P870 million in LWUA funds in a private bank in 2009.

Pichay said he would defy the order.

The Ombudsman issued a 10-page order directing Executive Secretary Paquito Ochoa to implement the six-month preventive suspension on the former Surigao del Sur congressman.

Malacañang has also placed three board members of LWUA under 90-day preventive suspension for alleged misappropriation of funds to acquire a troubled thrift bank.

Ochoa issued on Friday the suspension order on LWUA trustees Bonifacio Mario Peña, Susana Dumlao Vargas and Renato Velasco based on the complaint filed by Finance Secretary Cesar Purisima with the Office of the President on April 6.

The case stemmed from the supposedly anomalous purchase of shares of stocks of the Laguna-based Express Savings Bank Inc. (ESBI) using LWUA funds.

Pichay, on the other hand, declared he would not comply with the Ombudsman’s order, which he described as “blatantly illegal.”

Pichay claimed he was being harassed, being an appointee of the previous administration.

He said former Ombudsman Merceditas Gutierrez already denied twice in November and last month—the motion for reconsideration (MR) filed by the complainant LWUA employees.

Pichay explained that under the law, a MR could only be filed once.

“So which of the two orders will I honor? This is an illegal (suspension) order and blatant one at that. Definitely, I will not respect that order,” Pichay said.

Pichay said Casimiro was pressured by the Aquino administration, particularly Finance Secretary Cesar Purisima, to issue the suspension order. Purisima stood as one of the complainants in his capacity as secretary of finance and member of the Monetary Board of the BSP, which regulates the banking industry in the country.

Pichay claimed Casimiro would not want to suffer the same fate as his predecessor Gutierrez who was pilloried before the public.

Pichay also questioned the authority of Casimiro to issue the order and review the cases handled by Gutierrez.

“As an analogy, if someone was acquitted of a crime by a judge in a regional trial court, when the judge is replaced his successor cannot review the case and reverse it and hand down a conviction,” he said.

The case against Pichay stemmed from a complaint filed by LWUA employees Rustico Tutol, Luis Estrada and Carmen Amores, accusing the former Surigao lawmaker of using P870 million of LWUA funds to invest in ESBI.

Also accused in the case were acting LWUA Administrator Daniel Landingin; acting Deputy Administrator for Investment and Financial Services Wilfredo Feleo; and Corporate Legal Officer and Board Secretary Arnaldo Espinas.

The complainants alleged the fund disbursements were made without approval from Monetary Board and provisions of the Bangko Sentral ng Pilipinas (BSP) circular.

Because of the multi-million peso investment, LWUA supposedly gained 20 percent ownership or control of ESBI’s voting stock but no income came out from the investment. The complainants said P400 million of the total amount invested is not even supported by any Memorandum of Agreement or Certificates of Investment that were supposed to protect LWUA’s interest.

The Ombudsman said the allegations against Pichay and the other LWUA officials involved in the fund mess had been established with documentary evidence.

Among the evidence presented were the LWUA board resolutions showing the fund disbursements to ESBI.

Pichay maintained the LWUA does not need to seek permission of the Office of the President in creating a new entity under the old administrative order.

He pointed out the LWUA did not create a new corporation but simply bought shares from the bank after seeking advice from BSP, but still sought the permission of the Office of President. –With Paolo Romero, Aurea Calica

[mamoth]

aw na nangkong na nis pechai karon

[peewee_toot]

suspension ra? why?

[KlaytoN]

suspension ra? why?

Maayo nalang gani naay suspension nahitabo. Kay kung nipadayon pag ombudsman ang bestfriend sa imo idol pandak, kung wala pa ni resign, wala untay nahitabo kang pichay.. Padayon pa unta pangawkaw sa kaban sa gobyerno..

Pwera saway lang kana si pechay walay konsensya, a very rich trapo in the midst of super poverty in surigao.

[edgeknife]

ako man gani nahibulong ko ngar suspension ra... dapat gi-fire out ni sa iyang pagka corrupt or itanim sa new bilibid prison si pichay!

naa ko amigo nga taga surigao del sur ingon siya nako sa una nga wala pa ni mag congressman, nag-abang ta ni og balay diha... sa manila nag trabaho... pagka congressman ani niya, nikalit lang daw ni kadato... naka tag-iya naman og yuta diha sa surigao del sur... wala gud ni siya negosyo or trabaho kundi ang pagka-politiko ra... gi-negosyo niya ang politics...

di mo mag-duda ana??

[JcBoY]

ako man gani nahibulong ko ngar suspension ra... dapat gi-fire out ni sa iyang pagka corrupt or itanim sa new bilibid prison si pichay!

naa ko amigo nga taga surigao del sur ingon siya nako sa una nga wala pa ni mag congressman, nag-abang ta ni og balay diha... sa manila nag trabaho... pagka congressman ani niya, nikalit lang daw ni kadato... naka tag-iya naman og yuta diha sa surigao del sur... wala gud ni siya negosyo or trabaho kundi ang pagka-politiko ra... gi-negosyo niya ang politics...

di mo mag-duda ana??

In fairness with former Congressman Pichay, daghan pud baya siya natabang sa among pinakapobre apan usa sa pinakadato nga probinsya sa Pilipinas. For pila ka tuig nga nag-antos mi ug hingos sa abog kon mobiyahe mi kon ting-init ug mag-antos pud mi ug pinakalapok nga dalan kon mobiyahe mi ug ting-ulan sa among probinsya sa Surigao del Sur apan sa diha nga nahimo siyang Congressman natabangan pud baya niya ug pa-semento ang among mga highway tinabangan pud sa kanhi presidente kay naka-saksi man gyud pud siya ug biyahi sa among probinsya.

May kaya pud na daan sila si Pichay oi! Tag-iya pud baya na siya ug Publishing House sa Manila unya kaliwat na pud na sila ug mga politiko his mother is our former DECS Provincial Superintendent.

Wa ko molaban niya ha kay politiko pud baya na siya. He deserve a fair trial also.

http://en.wikipedia.org/wiki/Prospero_Pichay,_Jr.

[KlaytoN]

Ang suspension kay murag part na sa "due process" nga dapat sundon. Ang problema man gud kung imo ipaagi sa shortcut or dismissal basin mu counter charge sya og ang kaso mu abot sa supreme court and mapildi unya ang office of the ombudsman due to technicalities (for not following due process) so ma reverse ang decision. Happy kaayo si pichay ana..

[crossramz]

I want them all down.. balo lang kaha kaya ba ni pinoy ang iya saad...

[gpcortes07]

sa ako lang POV aning Pichay maka ingon ko mayra/mirisi niya. Gipakita man gud to iyang opisina nga mura sad opisina sa hari oi, painting pa imo nga ang uban dili na masab-it sa bong2x kay wala na space. Siya mismo ni sulti nga not less than half million daw ang usa ato iya collection. Gipangutana siya sa reporter ug materialistic ba daw siya nga pagkatao? Iya tubag kay very good kaayo, tan-awa lang daw iya nawong if materialistic ba nga wala man daw siya mga alahas, artistic lang noon. hahahaha! Cheap daw kaayo siya kung tinuod pa to ang allegation nga every visit niya sa AFP kay half million iya dawaton.

[account]

Prospero Pichay po, itanim sa presinto!