CEBU CITY—A former official of the Bureau of Internal Revenue (BIR) was found guilty by a Regional Trial Court (RTC) of failing to disclose in his statements of assets, liabilities and net worth (SALN) his bank deposits amounting to P5.8 million.
As such, the court ordered Nieto Racho, former chief of the BIR Special Investigation Division, “to reconvey or return” to the government the amount that was deemed “ill-gotten.”
Judge Alexander Acosta of RTC Branch No. 9 ruled that the P5.8 million in bank deposits was “patently disproportionate” to Racho’s salary as a BIR official and to his other lawful income.
If Racho failed to return the money, the court ordered the forfeiture of his properties of corresponding value.
Judge Acosta, in his ruling, said any amount, which a public officer or employee had obtained and was manifestly out of proportion to his or her salary, is presumed to have been unlawfully acquired.
“If the respondent is unable to show to satisfy the court that he has lawfully acquired the property in question, then the court shall declare such property forfeited in favor of the state,” he said.
Racho is the first government official in Cebu to be charged and convicted in court for failing to declare his assets in his SALN.
Public officials are required to submit their SALNs under the Anti-Graft and Corrupt Practices Act and the Code of Conduct and Ethical Standards for Public Officials and Employees.
Racho has a pending case of falsification of private documents for allegedly falsifying the signature of a lawyer on a special power of attorney that he presented to prove that the money in the bank deposits belonged to his siblings and nephews.
He also has a pending case of falsifying public documents for being untruthful in his SALN entries.
In 1999, Racho, then revenue district officer of the BIR in Talisay City, declared only P15,000 as “cash in bank” in his annual statement, which government officials and employees were required to submit annually. His annual salary was P220,093.
But a concerned citizen asked the Office of the Ombudsman Visayas to investigate Racho, which later led to the discovery of his P5.8 million in bank deposits that was not disclosed in his SALN.
Racho’s cash deposits were certified by Metropolitan Bank, Philippine Commercial International Bank and Bank of the Philippine Islands.
Racho also failed to declare two business enterprises—Angelsons Lending and Investors Inc. and Nal Pay Phone Services.
The case is pending in the Municipal Trial Court in Cities Branch 7.
Racho was dismissed from service after the Ombudsman-Visayas found him administratively liable for failure to include his bank deposits amounting to P5.8 million.