(Update) Ex-Navy chief convicted over disbursement mess

(Updated 5:58 p.m.) The Sandiganbayan Fifth Division has convicted a former chief of the Philippine Navy to less than five months in jail for failing to account for P67.64 million in government funds. Retired Vice Admiral Mariano Dumancas, who served as Navy flag officer in command, was also permanently barred from assuming public office because of his offense. In its 46-page decision, the graft court found that Dumancas was guilty beyond reasonable doubt of anomalously disbursing funds from 1992 to 1994. State auditors' investigation showed that the Navy took out P67,643,106.95 from a delivery contract fund alloted for the purchase of 55 units of 16-foot fiberglass high-speed boats. The total delivery contract, amounting to P208.25 million, was signed in Dec. 29, 1985 with the Marcelo Fiber Glass Corp. as the listed contractor. The money in question was diverted for the acquisition of medical, construction and office supplies as well as vehicle spare parts in 1992. Magistrates rejected Dumancas' explanation that the disbursement was carried out in good faith based on the recommendation of his staff. "In the instant case, the accused had foreknowledge of the irregularity attendant in the transactions, that is, the disbursement vouchers and checks which he claims to have been processed were made as payment for payees different from that intended. Instead, he countersigned the checks, and looked the other way," the Sandiganbayan said. State Auditor V Rosalina Mamuag, who led the special audit on Navy account books, initially reported that the questionable disbursements actually amounted to P160.9 million. Dumancas is a member of the Philippine Military Academy Class of '60. - GMANews.TV