Philippines court upholds conviction of ex-lawmaker

MANILA: The Sandiganbayan upheld the conviction for graft of a former Mindanao lawmaker in connection with the purchase of 60 per cent share of ailing bank in Southern Luzon worth $1.4 million when he was the chairman of a government water agency.

In a 17-page decision, the court upheld the conviction of former congressman Prospero Pichay J. of Surigao del Sur in Mindanao and his co-accused, Wilfredo Feleo Jr. then the administrator and deputy administrator, respectively, of the Local Water Utilities Administration (LWUA).

Pichay and Feleo were sentenced to three counts of graft each and sentenced to serve a maximum of 10 years in prison per count.

The case arose from Local Water Utilities Administration’s decision to purchase 60 per cent of an ailing bank in Southern Luzon for $1.4 million without approval from the Monetary Board of the Central Bank of the Philippines.

In addition, Local Water Utilities Administration deposited $5.3 million in the bank after it was designated as a depository bank of LWUA as well as transferred $7.1 million in capital infusion also without prior approval from the Monetary Board.

Both Pichay and Feleo questioned their conviction saying that there was “no gross inexcusable negligence” and that the prosecution failed to prove that the allegations resulted in undue injury to the government or any party.

But Sandiganbayan ruled: “The evil sought to be prevented by the stringent application of banking laws would not have transpired had the accused simply complied with what is incumbent upon them.”

“But to secure prior approval with the appropriate government agency before venturing into risky purchase of 60 per cent voting equity of Ecology Savings Bank, Inc. (ESBI), capital infusion and additional deposit involving the total amount of $14 million of the public fund,” it added.