VACC files graft, malversation raps vs. Isabela governor, 2 solons over ‘pork’ scam

By ELIZABETH MARCELO , GMA News

Published January 23, 2015 11:05am

(Updated 6:55 p.m.) The Volunteers Against Crime and Corruption (VACC) on Friday morning filed criminal and administrative charges against Isabela Governor Faustino Dy III and two party-list representatives for their alleged involvement in the multibillion-peso pork barrel fund scam.

Led by its founding chairman Dante Jimenez and chairman Martin Diño, the VACC filed with the Office of the Ombudsman criminal charges of graft or violation of Republic Act (RA) 3019 or the Anti Graft and Corrupt Practices Act, malversation of public funds and falsification of public documents against Dy, incumbent ABS party-list Rep. Catalina Leonen-Pizarro and I CARE party-list Rep. Michael Angelo Rivera.

The VACC also filed against Dy, Pizarro and Rivera administrative charges of grave abuse of authority, grave misconduct and conduct prejudicial to the best interest of service.

GMA News Online tried but failed to reach Dy, Pizzaro and Rivera for their comments.

Also charged with the three officials were other employees of the Isabela provincial government who allegedly acted as their cohorts, namely: Isabela provincial administrator Atty. Noel Manuel Lopez; provincial treasurer Ma. Theresa Araneta-Flores; provincial accountant Pete Gerald Javier; Bids and Awards Committee chairman Rodrigo Sawit; provincial Social Welfare and Development Officer Lucila Ambatali; Commission on Audit (COA) supervising provincial auditor Teresita Rios; and provincial General Services Office (GSO) inspectorate Roda Ramirez.

Also charged were certain businessmen Allan Ty and Jimmy Pua of Jimmy Pua Enterprises Inc., as well as other unidentified individuals or “John and Jane Does.”

The charges stemmed from the alleged misappropriation and malversation of P25 million worth of funds coming from the respondents' pork barrel through ghost deliveries of relief goods intended for the province of Isabela's Social Services program.

The VACC asked for the preventive suspension of the respondents pending the result of the Ombudsman's investigation of the matter.

In its 10-page complaint affidavit, the VACC said Pizarro and Rivera allocated the amounts of P15 million and P10 million, respectively, from their Priority Development Assistance Fund (PDAF) or pork barrel to the provincial government of Isabela under the province’s National Local Government Unit (NALGU)Fund with the Land Bank of the Philippines.

The VACC said that upon audit by COA last year, following a request for investigation by incumbent Gamu, Isabela Vice Mayor Fernando Cumigad, it was revealed that there were several procedural deficiencies in the disbursement of the funds.

The VACC said it was also found out by COA that there was no competitive bidding conducted for the procurement of the relief goods.

The VACC said the Provincial Social Welfare and Development Office also failed to provide specific reason for the urgency of the items procured.

The VACC said the COA findings also noted that payment of P10 million was done on a reimbursement basis to businessman Ty instead of making a direct payment to the supplier of the purchased goods, Sanitary Mart Corporation. The VACC said such practice is a “blatant violation” of Republic Act 9184 or the Government Procurement Reform Act.

The VACC said that upon verification by COA, officials of the municipalities listed as beneficiaries of the Isabela government’s Social Services program, said they never received any relief items indicated in the PDAF-funded project.

The VACC said that “in an attempt to conceal their transgressions”, Dy sometime in 2013, issued a certification to COA Supervising Auditor Teresita Rios saying that the P25 million has already been returned.

“This is a tantamount to admission that indeed the subject funds were disbursed, misappropriated and malversed! The fact that it was returned does not cure the defect. The forbidden acts has been consummated and the replenishment of funds will not in any way undo what has been done!,” the complaint read.

In a print out bank statement dated February 28, 2014 issued by Land Bank it can be seen that the amount of P25 million under the Isabela government’s bank account was intact.

The VACC, however, pointed out that based on the findings of COA, “the reason the fund was still intact was because it was refunded.” — RSJ, GMA News

Tags: vacc, bantaykaban, faustinodyiii, catalinaleonenpizzaro, michaelangelorivera