(UPDATE 2) NBI files malversation raps vs Lozada
By Tetch Torres, Tina Santos
INQUIRER.net, Philippine Daily Inquirer
First Posted 16:41:00 05/16/2008
Filed Under: Crime, NBN deal
MANILA, Philippines -- The National Bureau of Investigation (NBI) has filed charges of malversation of public funds against a key witness in the national broadband network (NBN) controversy, a lawyer for the bureau said.
The NBI, in a 4-page letter of complaint filed through lawyer Allan Contado of its Anti-Graft Division accused Lozada, then president of the Philippine Forest Corp. (PFC), and Gerardo Cariño, vice president, of violating Article 217 of the Revised Penal Code for Malversation of Public Fund.
Lozada, in testimony before the Senate investigation into the NBN scandal, linked several government officials to the alleged corruption that accompanied the awarding of the $329- million telecommunications contract forged with China’s ZTE Corp.
The deal was scrapped by President Gloria Macapagal-Arroyo soon after the Senate opened its probe. Her husband, Jose Miguel, and former Commission on Elections chairman Benjamin Abalos Sr. have been linked to the allegedly anomalous deal.
The case stemmed from a memorandum of agreement dated November 28, 2006 between PFC and the National Economic Development Authority (NEDA) for the implementation of the Economic Productivity Act of Idle Public Lands program through the Fibercrops and Jathropa Curcas I Plantations Project.
NEDA provided a P19.6-million "KR2 Grant" pursuant to the RP-Japan Increased Food Production Program. This amount, intended as an operations and working fund of the corporation, was deposited in PFC’s savings account with the Philippine National Bank in West Avenue.
The NBI said this mixed the fund with other money used for PFC’s operations.
A month later, PFC released P14.487-million to the Philippine Army, which had an undertaking with the corporation to implement the first and second phases of the project.
However, this amount was returned to the PFC after the secretary of national defense disapproved the agreement.
The remaining balance of the KR2 fund was invested with Insular Life Assurance Company and classified as a Wealth Builder Single Premium Variable Plan instead of being used in a PFC-related public project.
"The funds in question were misappropriated considering that it was invested for a purpose other than that for which the fund was intended," the NBI said.
Chief State Prosecutor Jovencito Zuño will assign the case to a prosecutor for preliminary investigation.
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