Sandigan reverses conviction of ex-envoy over alleged $17K fund misuse

The Sandiganbayan Special Fourth Division, in a split 3-2 decision, has reversed the graft and malversation conviction of former Philippine Permanent Representative to the UN Lauro Baja, Jr.  over the alleged misuse of $17,542.27 worth of insurance claims due to lack of evidence.

In a seven-page Resolution, the anti graft-court acquitted Baja of the said criminal charges by giving weight to the affidavit of former Consul General of Guam Teresita Lopez-Mendiola that opening a separate bank account for the insurance money is not prohibited by any law.

Mendiola, in her judicial affidavit, narrated her experience where she also opened a new bank account from that of the Philippine Consulate General office to prevent commingling of the fund, that she and her finance officer served as signatories of the said new account to monitor the insurance proceeds and that she was never called regarding any irregularity in relation to these procedures—a situation which, according to the Sandiganbayan, can be applied to Baja’s case.

“The narration of Consul General Mendiola serve to belie any ill-motive on the part of the accused. In fact, they directly contradict the allegation that he acted in evident bad faith in handling the insurance proceeds he received on behalf of the Philippine Mission in New York,” the anti-graft court said.

“The statements of Consul General Mendiola lend credence to the act of the accused that the deposit of said insurance proceeds in a separate bank account was not prohibited per se,” the Sandiganbayan added.

Likewise, the Sandiganbayan cited the admission of Philippine Mission to UN’s Finance Officer Tomas Valeriao that he advised Baja to open another account as a legal solution to prevent commingling of funds, and that Baja made it a point that for every withdrawal under the separate bank account named Philippine Mission to the UN-Renovation of Townhouse, it would need the signature of Baja and Valerio.

“This effectively erases the impression that the accused was motivated by dishonest purpose. The accused took every available step to ensure that the subject funds are properly safeguarded ” the anti-graft court said.

In addition, the anti-graft court said that Baja cannot be faulted for failure to report the insurance proceeds received by Baja in the bank reconciliation statement of the Philippine mission since this reporting is Valerio’s job in the first place.

In further bolstering his cause, Baja also presented electronic documents from York Risk Services Group, Incorporated—the third party adjuster who possessed the insurance claim as well as the release of the hold back value—which read “I will issue payment for the holdback I believed that the insured has successfully proven that the work was completed and the insured spent more than the holdback.”

“This affirmation destroys the prosecution’s position that the accused converted the insurance benefits to his personal benefit. It is clear that the needed quantum of proof to convict the accused of the crimes charged is found lacking,” the Sandiganbayan said.

“Wherefore, premises considered, the decision dated April 13, 2018, is hereby vacated. Accordingly, a new judgment is entered, acquitting accused Lauro Baja, Jr.,” the anti-graft court added.

The anti-graft court has also ordered the lifting of the hold departure order on Baja and his cash bail released subject to usual accounting and auditing procedures.

Baja’s acquittal was favored by Sandiganbayan Associate Justices Reynaldo Cruz, Alex Quiroz and Rafael Lagos. Associate Justices Bayani Jacinto and Sarah Jane Fernandez dissented. — BM, GMA News