Ombudsman orders dismissal of Arroyo ally Prospero Pichay

MANILA, Philippines—Acting Ombudsman Orlando Casimiro ordered the dismissal of Arroyo ally and former Congressman Prospero Pichay as chair of the Local and Water Utilities Administration (LWUA) after he was found guilty of grave misconduct.

Aside from Pichay, also ordered dismissed from services include acting administrator Daniel Landingin and acting Deputy Administrato Wilfredo M. Feleo. They are also perpetually disqualified from holding public office and forfeiture of all benefits.

The order is immediately executor.

Pichay has been slapped with a case for violation of Republic Act 6713 or the Code of Conduct and Ethical Standards for Public Officers and Employees and Grave misconduct for the unlawful disbursement of LWUA funds for the purchase of 60 percent outstanding capital stock of the Express Savings Bank, Inc. (ESBI).

Complainants said LWUA paid P80 million for the 60 percent shares of ESBI, whose main office is located in Cabuyao, Laguna.

The bank was undergoing rehabilitation from the Bangko Sentral ng Pilipinas at that time of LWUA’s purchase. The employees added that through LWUA board resolution no. 336, the government agency invested another P400 million to increase the bank’s authorized capital.

Complaint stated that Pichay who also heads the LWUA Board ignored Administrative Order No. 59 which requires that all proposals to establish subsidiary corporations shall be submitted to the Monetary Board for review and approval by the Office of the President.

The complaint pointed that Section 15 of the General Appropriations Act for 2009 which restricts the use of government funds as investments or deposit in private banking institutions was also violated.

He is facing a separate complaint for plunder before the Department of Justice (DoJ) and is currently undergoing preliminary investigation.