Sandiganbayan upholds Pichay conviction over P780 million LWUA stock purchase

The Sandiganbayan upheld the conviction of Surigao del Sur Representative Prospero Pichay Jr. for three counts of graft over the mismanagement of P780 million in Local Water Utilities Administration (LWUA) funding.

In a 17-page resolution, the anti-graft court dismissed Pichay's partial motion for reconsideration over the court's June 7 ruling which found former LWUA Administrator Pichay and his then Deputy Administrator Wilfredo Feleo Jr. liable for LWUA's 2009 acquisition of a 60% voting stock of the Laguna-based local thrift bank Express Savings Bank Inc. (ESBI) owned by the WELLEX Group Inc. (WGI) and Forum Pacific Inc. (FPI).

The court said that Pichay and Feleo's claim that there was tacit approval by the Monetary Board for LWUA's purchase of ESBI shares as borne out by exchanges of correspondence did not have a legal anchor.

The court said that Pichay and Feleo's failure to secure Monetary Board approval was used by the Bangko Sentral ng Pilipinas to justify its recommendation denying ESBI's request for the transfer of 60% of voting equity via a sale of shares of stock to LWUA and issued a cease and desist order on ESBI for its acceptance of a government deposit without authority from the Monetary Board.

The BSP recommendation was approved by the Monetary Board in its Resolution No. 605.

"The evil sought to be prevented by the stringent application of banking laws would not have transpired had the accused [Pichay and Feleo] simply complied with what is incumbent upon them i.e., to secure prior approval with the appropriate government agency [in this case, the Monetary Board], before venturing into the risky purchase of 60 % voting equity of ESBI, capital infusion and additional deposit involving the total amount of P780 millions of public funds," the Sandiganbayan said.

Likewise, the court dismissed Pichay's argument that LWUA's acquisition of ESBI was a mere bad business decision by a public official.

"Courts are not the forum to plead for sympathy. The duty of courts is to apply the law, disregarding their feeling of sympathy or pity for an accused. Dura Lex Sed Lex. The remedy is elsewhere... [such as] clemency from the executive or an amendment of the law by the legislative. But surely, at this point, this Court can but apply the law," the anti-graft court said.

In closing, the anti-graft court emphasized that public office is a public trust and that all government officials and employees must at all times be accountable to the people, serve them with utmost responsibility, integrity, loyalty, and efficiency, act with patriotism and justice, and lead modest lives which both accused failed to measure up to during their stint as LWUA officials.

The Sandiganbayan then said that it was undeniable that as far as the records of the cases were concerned, a sizable amount of public funds which serve as the lifeblood of the nation's economy was unaccountable due to the irregular transaction undertaken by both accused in the performance of their duties.

"Taking into consideration the sheer amount of government funds involved and the callousness in ignoring the constant call of various government agencies to mend their ways in accordance with laws...such negligence can only be characterized as gross and inexcusable. Public officers, so long as our Constitution prevails, will remain accountable to the people, and the Court, as a bastion of democracy, will not hesitate to put to the proverbial sword those who betray the trust of the public they are meant to serve," the anti-graft court said.

"After turning all stones, the court finds no sufficient justification to warrant abandonment of our earlier ruling. In view of the foregoing, the respective Motions for Partial Reconsideration of accused Feleo and Pichay are hereby denied for lack of merit," it added.

GMA News Online has reached out to Pichay for comment on the Sandiganbayan ruling but he has yet to reply as of posting time. — DVM, GMA News