The Office of the Ombudsman indicted former Bulacan Rep. Ma. Victoria Sy-Alvarado for graft and fund misuse for transferring her pork barrel funds to a private rural bank.
In a statement issued Wednesday, the Office of the Ombudsman said it found probable cause to charge Sy-Alvarado, who will face trial for three counts of violation of the Anti-Graft and Corrupt Practices Act and three counts of Malversation of Public Funds, before the Sandiganbayan.
Also indicted were Department of Social Welfare and Development (DSWD) Region III officials namely, Minda Brigoli, Adelina Apostol, Mely Pangilinan, and Maria Piedra; as well as Nestor Custodio, General Manager of the Cooperative Rural Bank of Bulacan (CRBB).
The Ombudsman also found Brigoli, Apostol, Piedra and Pangilinan administratively liable for Grave Misconduct, Serious Dishonesty and Conduct Prejudicial to the Best Interest of the Service.
They were ordered dismissed from service and meted the accessory penalties of perpetual disqualification from holding public office, forfeiture of retirement benefits and cancellation of eligibility.
In case any one of them is already separated from the service, the Ombudsman said the penalty is convertible to a fine equivalent to their salary for one year.
Based on Ombudsman records, Alvarado, in 2008, released a total of P3 million from her Priority Development Assistance Fund (PDAF) for the implementation of a project under the DSWD’s Protective Services for Individuals and Families in Difficult Circumstances under the Comprehensive and Integrated Delivery of Social Services (CIDSS) program.
The funds were transferred in three tranches to the bank account of the DSWD Regional III Office purportedly to create a micro-financing scheme under the CIDSS program.
However, the Ombudsman Field Investigation Office alleged that “since the PDAF is for a public purpose, it may not be allocated for funding a private banking institution such as CRBB, a private stock corporation which operates primarily for profit and for the benefit of its members only.”
In her defense, Alvarez said she has “good faith with the intention of extending financial assistance to her constituents to boost economic activity.”
Alvarez also said the CRBB was chosen “as [it] is a cooperative that reaches and maximizes the number of beneficiaries especially in the Province of Bulacan.”
But the Ombudsman’s resolution noted that “the DSWD’s Protective Services Program provides a range of interventions or financial assistance to individuals, families, and communities in crisis or difficult situations, such as those affected by or vulnerable to disasters.”
“Clearly, Alvarado’s P1 million PDAF was never intended for microfinancing activities of CRBB,” the Ombudsman also said.
The Ombudsman cited National Budget Circular No. 476, which states that PDAF allocations should be directly released to government agencies identified in the project menu. It emphasized that the said circular does not authorize the direct release of funds to CRBB, a cooperative rural bank.
The Ombudsman said the malversation was committed because public funds were diverted to a private bank for a private purpose. The bank ended up being foreclosed.
“Alvarado, Brigoli in behalf of the DSWD, and Custodio in behalf of CRBB, conspiring with one another, entered into a Memorandum of Agreement designating microfinancing as the PDAF-funded project instead of the DSWD’s CIDSS Program,” the Ombudsman said.
“Alvarado, who had control in the selection of her priority project and programs, thus exceeded her authority in endorsing CRBB,” the Ombudsman added. kga