Probe lost Laoag funds, Ombudsman urged anew

The Laoag City government lost P85 million to a scheme attributed to its treasurer, who has reportedly fled to the United States. —LEILANIE ADRIANO

LAOAG CITY — With the Ilocos Norte government now embroiled in another fund mess, the provincial board on Tuesday urged anew the Office of the Ombudsman to investigate the theft of P85 million from the Laoag City treasury in June last year.

Ten board members approved a resolution which urged Ombudsman Conchita Carpio Morales “to motu propio conduct an  investigation and if warranted, [file] the appropriate criminal or administrative charges against the persons or government officials responsible for the loss of taxpayers’ money.”

It was a reiteration of the Aug. 6, 2016, letter to the Office of the Ombudsman that requested an investigation into the theft.

Laoag treasurer Elena Asuncion reportedly fled to the United States after officials had uncovered the missing funds.

Asuncion was last seen at the Laoag City Hall during the Independence Day celebration last year.

Another fund scandal

The Commission on Audit and the Bureau of Local Government Finance have undertaken an audit of the city government’s transactions but both agencies have yet to release a report.

Board Member Vicentito Lazo said the province found itself embroiled in another money scandal without any resolution to the Laoag City issue. He was referring to the House of Representatives’ investigation of the alleged misuse of tobacco funds by the provincial government.

“It’s ironic that while we celebrated Independence Day [last week], four provincial capitol department heads and two cashiers were detained at the House of Representatives despite a release order from the Court of Appeals,” Lazo said.

The investigation was initiated by Ilocos Norte Rep. Rodolfo Fariñas, uncle-in-law of Laoag City Mayor Chevyll Fariñas. The mayor is married to Fariñas’ nephew, Vice Mayor Michael Fariñas, a former Laoag mayor.

“There is a need to reiterate to the Office of the Ombudsman [our request for a probe] in order for the wheels of justice to finally turn,” Lazo said.

No whitewashing

He said the government should assure Laoag taxpayers that no whitewashing had taken place in the course of determining how the money was stolen.

According to Lazo, the resolution supplements the findings of the National Bureau of Investigation, which recommended plunder charges against Asuncion, and administrative sanctions against the city government’s auditors, accountant and the cashier division for their failure to detect fake time deposit and savings accounts that Asuncion allegedly opened to hide the funds.

Initial results of the investigation traced the theft back to 2007 during the administration of Michael Fariñas.

But the irregularity had not been detected by the local finance committee until 2016.