Pichay: Case vs. LWUA political persecution
MANILA, Philippines - Former Surigao del Sur Representative and Local Water Utilities Administration (LWUA) trustee Prospero Pichay Jr. filed his counter-affidavit Thursday at the Department of Justice (DOJ) on charges of violations of the Anti-Graft and Corrupt Practices Act, Revised Penal Code and the Manual of Regulations for banks in connection with LWUA's acquisition of financially troubled bank, Express Savings Bank, Inc. (EXSBI), filed by finance chief Cesar Purisima.
Speaking to reporters, Pichay said he has questioned the jurisdiction of the DOJ in handling the preliminary investigation of the complaint since he was charged before the Office of the Ombudsman for the same facts, allegations and charges contained in Purisima's complaint - a case still pending at the anti-graft office.
Pichay insists the Ombudsman has primary jurisdiction over the case.
"We're questioning the jurisdiction, otherwise it will be forum-shopping," he said.
In his counter-affidavit, which he personally subscribed to, Pichay raised the following points:
-On allegations of malversation: only accountable officers can be accused of malversation which excludes him for being a non-accountable officer;
-On allegations of violations of the General Appropriations Act (GAA): he did not use any money coming from the GAA but used an "internally-generated fund" from LWUA. Moreover, the GAA does not state that the acquisition or investment in a private corporation cannot be done by a government-owned and controlled corporation (GOCC) such as LWUA.
"First of all, we wanted to create a bank but since the Central Bank said there was a moratorium, so they advised us to acquire a bank. When you acquire a bank, I'm sure that if it is a profitable bank, [management is] not going to sell it. So normally, ano ba ang naa-acquire na banks? Yung mga banks na not doing so well.
"There were 2 banks that we considered. One was a profitable bank with a capitalization of P40-million, with one branch. They were selling it at P250-million. The other one was a bank with 4 branches, a capitalization of P100-million, a deficiency of P51-million. So in other words mayroon pang natitirang capitalization of P49-million, P9-million more than the previous one with one branch, and it was only selling for P80-million. If you were in my shoes, what will you buy?" Pichay said, referring to EXSBI as the second bank.
Pichay said EXSBI made P31-million in 2010 and P20-million so far in 2011.
"We are expecting to make at least P40-45 million this year. And not only that, look at the benefits - napautang namin ay P300-million sa water district at 12,000 households na po ang nag-benefit nito. Aside from that, kumita yung bangko from the 13 water districts na napautang namin," he said.
"Ang importante kasi is yung taumbayan na nabigyan natin ng malinis at murang tubig. If only Purisima will look at it, he will realize that he has been stupid all this time," he said.
Asked if he felt the charges are a product of political prosecution, him being a staunch ally of former president Gloria Macapagal Arroyo, Pichay said, "Of course it is a political persecution. Look around you, everybody has been accused of either tax evasion, plunder. Even justices of the Sandiganbayan have been told to resign. You'll just have to agree with them so that you will not be persecuted."
"Basically, this is the work of Secretary Purisima," Pichay said.
The 35-page complaint also named other LWUA trustees as respondents, namely, Renato S. Velasco, Susana Dumlao Vargas, Bonifacio Mario M. Pena, Sr. and Daniel Landingin.