LWUA chair Pichay ordered suspended

SUSPENDED Local Water Utilities Administration chair Prospero Pichay, shown here in a file photo, was ordered suspended for six months without pay by the Office of the Ombudsman in connection with a grave misconduct case. AFP

MANILA, Philippines—The Office of the Ombudsman has ordered the preventive suspension of Local Water Utilities Administration (LWUA) chair Prospero Pichay in connection with a case of grave misconduct filed against him.

Pichay was ordered suspended for six months without pay. The order, contained in a 10-page resolution dated May 17, 2011 and approved by Overall Deputy Ombudsman and acting Ombudsman Orlando Casimiro, is immediately executory.

The Office of the Ombudsman explained that the suspension was necessary to make sure that Pichay will not be able to jeopardize the investigation being conducted against him to determine if he is guilty of grave misconduct and violation of Republic Act 6713 or the Code of Conduct and Ethical Standards for Public Officers and Employees.

LWUA employees Rustico Tutol, Luis Estrada, and Carmen Amores filed the complaint against Pichay over the questionable purchase of 60 percent outstanding capital stock of the Express Savings Bank, Inc. (ESBI).

Complainants said LWUA paid P80 million for the 60 percent shares of ESBI, whose main office is located in Cabuyao, Laguna.

The bank was undergoing rehabilitation from the Bangko Sentral ng Pilipinas at the time of LWUA’s purchase. The employees added that through LWUA Board Resolution No. 336, the government agency invested another P400 million to increase the bank’s authorized capital
Complainants said that Pichay ignored Administrative Order No. 59 which requires that all proposals to establish subsidiary corporations shall be submitted to the Monetary Board for review and has to be approved by the Office of the President.

They added that Section 15 of the General Appropriations Act for 2009 which restricts the use of government funds as investments or deposit in private banking institutions was also violated.

The Ombudsman’s investigation will determine if Pichay is administratively guilty which would warrant dismissal from service.

Pichay is facing a separate complaint for plunder before the Department of Justice (DoJ) and is currently undergoing preliminary investigation.