Valenzuela City Rep. Sherwin Gatchalian on Tuesday said he lamented the move by the Office of the Ombudsman to announce to the media the filing of graft and malversation raps against him and other members of the Gatchalian family in connection with the irregular sale of an insolvent bank in 2009.
In a press conference, Representative Gatchalian, son of so-called “Plastic King” William Gatchalian of Wellex Group Inc., said the Ombudsman need not broadcast to the media its resolution finding probable cause against the accused because he already had filed a motion for reconsideration.
Valenzuela City Rep. Sherwin Gatchalian. FILE PHOTO
“I do not see the necessity of having a press conference by the Ombudsman considering we still have a motion for reconsideration. Pinapakinggan pa ang MR, meron na kaagad press con,” Gatchalian said.
He said the conduct of a press conference tarnishes his name because of the antigraft body’s allegations of corruption.
“If your name is tarnished … anyone will feel bad … Pag sinabi mong Ombudsman case, akala na ng tao ang laki-laki at bilyon bilyon na ang pinag-uusapan,” Gatchalian said.
15 years in public service
“In my 15 years in public service, I’ve never been accused of corruption or any money issues. Alam nila sa Valenzuela gaano tayo kahigpit sa corruption. Pag nasampahan ka sa Ombudsman, ang unang pumapasok sa isip ng tao, corruption,” he added.
The representative, however, refused to comment on the timing of the filing and whether or not the charges were driven by politics, especially as he had expressed his bid to run as senator under Vice President Jejomar Binay’s United Nationalist Alliance (UNA).
“Your question is as good as mine … It’s very unfair for me to speculate on what the motives are of the administration,” Gatchalian said.
He said he was willing to face his case in the Sandiganbayan.
“Clear ang conscience ko. Handa naman tayong humarap doon,” Gatchalian said.
In a statement, Gatchalian said he only had 14 shares in Express Savings Bank Inc. (Esbi) equivalent to 0.00001886042 percent of the total shareholdings sold. The 14 qualifying shares were worth P179.63 per share for a total P2,514.82.
“I had no hand or participation in the management and the day-to-day operations of Esbi, and nor was I involved in the negotiations for its sale,” Gatchalian said.
Irregular acquisition
The graft and malversation complaint stemmed from the irregular acquisition of the Local Water Utilities Administration (LWUA) of the insolvent Esbi owned by the Gatchalians, the plastic tycoons in Valenzuela city, and the Forum Pacific Inc. (FPI).
Indicted for graft, malversation and violation of banking laws are former LWUA board chair Prospero Pichay Jr. (who is also former Surigao del Sur representative), six other dismissed LWUA officials—Eduardo Bangayan, Aurelio Puentevella, Enrique Senen G. Montilla III, Wilfredo M. Feleo, Daniel A. Landingin and Arnaldo Espinas;
Wellex Group Inc. executives led by owner William T. Gatchalian, his wife Dee Hua Gatchalian, his sons Representative Gatchalian, Alay Buhay Rep. Weslie T. Gatchalian and Kenneth Gatchalian, Elvira A. Ting, and Yolanda de la Cruz;
FPI executives Weslie Gatchalian, Arthur R. Ponsaran, Geronimo Velasco Jr., Peter Salud, Rogelio D. Garcia, Lamberto Mercado Jr., Joaquin Obieta and Evelyn de la Rosa, and Esbi executives George Chua, Gregorio Ipong, Generoso Tulagan, Wilfred Billena and Edita Bueno.
READ: Pichay, 5 Gatchalians sued
Pichay and other LWUA officials approved the acquisition of the insolvent bank in 2009 despite audit findings that show that the bank suffered net losses and capital deficits from 2005 to 2009.
Financial rescue
The acquisition took the effect of a financial rescue, as the LWUA officials bought 445,377 Esbi shares worth P101.363 million from the Gatchalian group that gave the agency 60-percent equity in the bankrupt bank.
Pichay and the other officials later injected P780 million LWUA funds to the bank to increase its authorized capital stock.
The Gatchalians of Wellex and other owners of the bank were also paid P80 million in the acquisition.
The LWUA made the acquisition and transactions despite warnings by the Bangko Sentral ng Pilipinas (BSP), the monetary board of the BSP and Department of Finance (DOF) about the Esbi’s fragile financial condition following a due diligence review that showed high liquidity and credit risks.
The acquisition was also made without the requisite regulatory approvals from the BSP, its monetary board, the DOF and the Office of the President.
In a statement, Wellex Group lawyer Lamberto Mercado had said the filing of the charges seemed politically driven, especially as one of the accused Pichay was a known ally of former President Gloria Macapagal-Arroyo.
“They are sellers in good faith. It is unfortunate, though, that FPI and WGI was sucked into the whirlpool of political vendetta against known political allies of the previous administration since Pichay is known to be very close to detained former President Arroyo,” Mercado said. RC