Whoa, says foe, Pichay shouldn’t be in Congress

A RIVAL OF Surigao del Sur Rep. Prospero Pichay Jr. has sought his disqualification from the House of Representatives, saying the Office of the Ombudsman had barred him from ever holding public office.

In his petition before the House of Representatives Electoral Tribunal (HRET), Gregorio Murillo Jr. said the Ombudsman had barred Pichay from holding public office after it found him guilty of grave misconduct for the transfer of nearly P1 billion in Local Water Utilities Administration funds to an insolvent bank when he was LWUA chair.

Murillo filed the petition on July 13, the same day that Pichay was indicted by the Ombudsman for graft and malversation of public funds in the Sandiganbayan.

Murillo said Pichay was ineligible to run for public office in the last May election because the July 4, 2011, decision by the Ombudsman stemming from the LWUA complaint had disqualified him from holding public office.

Murillo also said the HRET should nullify the certificate of candidacy filed by Pichay for “materially misrepresenting that he is eligible to run even if the July 4, 2011, decision of the OMB (Office of the Ombudsman) disqualifies him from holding any public office.”

Rightful winner

Murillo said that as the second-placer in the May 9 elections, he should be declared the rightful winner of the House seat for the first district of Surigao del Sur.

Pichay received 90,843 votes, while Murillo garnered 58,062 votes.

LWUA employees filed a complaint against Pichay, then chair of the LWUA board, along with three other officials, for their alleged unlawful disbursement of P780 million for investment in Express Savings Bank Inc. (Esbi), a private thrift bank under rehabilitation by the Bangko Sentral ng Pilipinas in 2009.

The complainants also said the LWUA board unlawfully authorized the payment of P400 million to Esbi for capital subscription, as this was not supported by a memorandum of agreement or certificates of investment.

In its 2011 decision, the Ombudsman said the law restricted the “use of government funds as investments or deposit in private banking institutions.”

Moreover, Pichay and his co-respondents should have sought the approval of the Office of the President and the Monetary Board before LWUA established a subsidiary through the acquisition of Esbi.

The Ombudsman found Pichay and his co-respondents “guilty of grave misconduct” and imposed a penalty of “dismissal from the service… with accessory penalties of forfeiture of all benefits, except leave credits, and disqualification to hold any public office.”

Indicted with Pichay on July 13 were neophyte Sen. Sherwin Gatchalian and 23 others, including Gatchalian’s parents and brothers. The Gatchalians own Wellex Group Inc. and Forum Pacific Inc., which used to own and operate Esbi.

In April 2015, the Ombudsman recommended the filing of criminal charges against Pichay and the other public officials and private individuals.

Also ordered indicted were Gatchalian brothers Kenneth and Wesley for graft and malversation.

In a resolution, the Ombudsman said the government lost P80 million when LWUA bought Esbi.

Pichay, as LWUA chair, approved a resolution on March 24, 2009, to purchase Esbi without securing the mandatory regulatory approvals from the Monetary Board of the Bangko Sentral ng Pilipinas, the Department of Finance and Office of the President.

On July 4, 2011, the Ombudsman ordered the dismissal and perpetual disqualification from public office of Pichay over the acquisition.

Just days after, Pichay was charged with tax evasion for failing to pay the government P32.73 million in income taxes for 2009.

In June 2012, LWUA Chair Rene Villa filed another graft charge against his predecessor Pichay and other officials for misuse of P2.3-billion funds in 2009 and 2010.

Sources: Inquirer Archives