Valenzuela Rep. Gatchalian denies involvement in LWUA deal

Valenzuela Rep. Sherwin Gatchalian on Thursday denied his involvement in the controversial P800 million acquisition by the Local Water Utilities Administration (LWUA) of the now defunct Express Savings Bank, Inc. (ESBI) in 2009.

“I have no participation nor influence in that company,” Gatchalian told GMA News Online in a phone interview. “I have never been an officer or board member of the bank. I am just a nominal stockholder before.”

“Before, my family owned the corporation that owned the bank pero noong nanalo ako noong 2001, dinivest ko na ang shares ko na less than 1 percent,” he explained.

In 2001 Gatchalian won the congressional seat of the First District of Valenzuela, a position he has been elected to again after serving three terms as mayor of Valenzuela.

The Office of the Ombudsman on Wednesday revealed that it has opened another investigation into the controversial acquisition of ESBI that cost the government P800 million and allegedly involved Gatchalian and former LWUA chairman Prospero Pichay, among others.

The Ombudsman named Gatchalian as one of the bank's officers.

GMA News Online tried to get in touch with Pichay, but he was not immediately available for comment.

In 2011, Pichay was sacked from his LWUA post and from government service when the Ombudsman found him and two others liable for grave misconduct in a related ESBI case.

For his part, Gatchalian welcomed the Ombudsman's probe.

“Nagtataka ako bakit lumalabas ang pangalan ko sa isyu na ito pero ayos lang na magkaraoon ng imbestigasyon ang Ombusdman para lumabas ang katotohanan,” he added. — BM, GMA News