SC asked to reverse ruling dismissing Arroyo fund mess case

Former President Gloria Macapagal-Arroyo. AP FILE PHOTO

MANILA, Philippines—A petition was filed Monday with the Supreme Court asking to reverse the decision of the Office of the Ombudsman that dismissed the criminal case against former President Gloria Macapagal-Arroyo in connection with the alleged misuse of P530 million funds intended for overseas Filipino workers (OFWs).

Former Solicitor-General Francisco Chavez filed the petition which also seeks to review the case.

“Petitioner respectfully prays of this Honorable Court to review, reverse and revise the decision of the Office of the Ombudsman, approving the recommendations to dismiss the charges against herein respondents relative to the actual transfers of the amount of P530,382,445.00 OWWA Medicare fund to the Philippine Health Insurance Corp (PHIC) and the amount of US$350,000 from the OWWA Capital Fund to several Labor attaches in the Middle East…in lieu thereof, judgment be rendered finding probable cause to formally charge respondents and recommending their prosecution,” Chavez said in his petition for review.

Aside from Arroyo, the Ombudsman also ordered the dismissal of case against former President and CEO of the Philippine Health Insurance Corp. [PHIC])Francisco Duque III; former Executive Secretary Alberto Romulo; and former Chairman of the OWWA Board of Trustees Patricia Sto. Tomas, and former OWWA Board of Trustees Members Virgilio Angelo, Manuel Imson, Rosalinda Baldoz, Mina Figueroa, Caroline Rogge, Victorino Balais, Gregorio Oca and Virginia Pasalo.

Aside from plunder and violation of the Anti-Graft Law, the Ombudsman also dismissed the complaint for malversation of public funds, qualified theft and violation of the Code of Conduct and Ethical Standards for Public Officials and Employees against the respondents for lack of evidence.

The Ombudsman, in its 47 page memorandum and an 11-page supplemental memorandum approved by Ombudsman Conchita Carpio-Morales dated June 14 and October 12, said that the OWWA funds were properly distributed to its beneficiaries and its graft investigators found no evidence that the fund was misused.

But Chavez, in his petition, maintained that OWWA funds are private funds that are not allowed to be appropriated for other purpose except for what is stated under the Overseas Workers Welfare Act.

The purpose stated under the law includes:

“1.     To provide social and welfare services to Filipino overseas workers, including insurance coverage, social work assistance, legal assistance, placement assistance, cultural services, remittances services, and the like;

“2.     To provide skills and career development services to the Filipino overseas workers and their replacements in order to insure adequate supply of manpower for national economy as well as expect;

“3.     To undertake studies and researches for enhancement of their social, economic, and cultural well-being; and

“4.     To develop, support, and finance specific projects for the benefit of Filipino overseas workers.”

“By law, OWWA is the sole, exclusive and proper administrator of the OWWA funds for the direct and exclusive benefit of the OFWs. For the Office of the Ombudsman to even state that the PHIC—another government agency that is concerned with the welfare of the general community—spent each and every centavo received from OWWA Fund for the welfare and direct benefit of the OFWs smacks of misplaced justification,” Chavez said.

He pointed that PHIC caters to the needs of the general community, without so much as giving special attention to the needs of OFWs.

“Further, neither the President nor any member of the Board of Trustees of OWWA had the constitutional or statutory authority to transfer or cause the transfer of OWWA funds to the Department of Health, through the PHIC. By doing so, respondents effectively commingled private trust funds with public funds. This is illegal,” Chavez said adding that “such transfer without statutory basis is a clear indication of misappropriation, conversion and/or misuse of funds as a predicate crime for the commission of plunder.”

On the use of the US$350,000 from the OWWA Capital Fund, Chavez said it is for the welfare assistant to migrant workers and their relatives affected by the crisis in the Middle East to several Labor attaches in the Middle East and not to finance preparatory activities such as stockpiling and purchase of vehicles of several posts in Lebanon, Jordan, Oman, Bahrain, Egypt and in Iran in support of the US led war in Iraq.