Ombudsman suspends Pichay over dubious bank deal

MANILA, Philippines - Acting Ombudsman Orlando Casimiro on Friday ordered the suspension of Local Water Utilities Administration (LWUA) Chairman Prospero Pichay in connection with the alleged violation of an administrative order concerning the agency’s exposure in a local bank.
In his order dated May 17, 2011, Casimiro  invoked Section 24 of Republic Act 6770 (The Ombudsman Act) and Section 9, Rule 3, Administrative Order 7, Rules of Procedure of the Office of the Ombudsman, and ordered Pichay’s 6 month suspension without pay. The order is immediately executory.
The same order asked the Office of the Executive Secretary to immediately implement the order and notify the Ombudsman of the implementation within 5 days.
Pichay was served the suspension today by Executive Secretary Paquito Ochoa’s office.
The suspension stems from a case filed by LWUA employees Rustico Tutol, Luis Estrada and Carmen Amores against Pichay, LWUA Acting Administrator Daniel Landingin, LWUA Acting Deputy Administrator for Investment and Financial Sevices Wilfredo Feleo and LWUA Corporate Legal Officer Arnaldo Espinas.
The case is for violation of the Republic Act 6713 (Code of Conduct and Ethical Standards for Public Officials and Employees) and Grave Misconduct.
The Ombudsman’s order dated May 17 however zeroed in on only Pinchay and made no mention of the other respondents.
Pichay’s camp plans to elevate the case to the Court of Appeals and seek a nullification of the suspension.
'Forum-shopping'
Pichay’s lawyer Freddie Villamor had no basis and was issued “blindly and hastily.” Villamor also feels there was forum-shopping in the case.
Villamor noted the suspension order comes after a similar motion for preventive suspension was denied twice by then-Ombudsman Merceditas Gutierrez. The 1st was in November 22, 2010 and the 2nd was in February 14, 2011 for weak evidence of guilt.
Villamor notes Casimiro’s order, which came after Gutierrez quit her post amid an impeachment trial, was “surprising and highly irregular.”
The case filed by the employees concerns the agency’s acquisition of 60% of shares in  ExpressBank, as well as the infusion of some P400 million into the bank as investment.
Villamor said after the first motion for suspension was denied, the complainants submitted a consolidated reply with a second motion for preventive suspension. In denying that second motion, Villamor says the Ombudsman ruled that the officials continued stay in office will not prejudice the case.
'No 2nd MR'

Villamor said the rules bar a 2nd motion for reconsideration. In which case, the proper recourse should have been to file an appeal before the Apellate Court or the High Court. 
He believes Casimiro, as Gutierrez’ successor , has no power to reverse her decision.
“Kung mag-file ka pa ng another motion for preventive suspension, lalabas nang 2nd motion for reconsideration [ito]. Bawal [ito] sa rules of procedures dahil walang nagfile ng 2nd MR, which is prohibited at wala naming nag-akyat ng orders sa Court of Appeals or Supreme Court, to reverse [the decision]. Pagkaalam naming tapos na ang issue ng preventive suspension”
Villamor said nowhere does Casimiro refer to Gutierrez’ previous denials of the motions for preventive suspension in his order. “Maaring naiissue nang di nabasa ang records ng kaso. “
Villamor theorized that the Ombudsman’s turnaround may have something to do with an administrative case Finance Secretary Cesar Purisima filed against Pichay and the other agency officials for the same allegation this time before the Office of the President dated  April 6, 2011 -- almost 2 months after the 2nd motion for suspension was denied by the Ombudsman.
Villamor noted Casimiro’s order mentions an alleged violation of an administrative order that was not part of the earlier complaints for suspension.
Pichay’s camp sought to dismiss the complaint before Malacañang for forum shopping.
“All of the sudden lumabas itong May 17 order issued by Casimiro, this time granting preventive suspension supposedly being sought by complainants in a case Gutierrez twice  over denied.”
Casimiro 'pandering to Palace'
Pichay for his part remained defiant and accused Casimiro of pandering to Malacañang.
”Sagana ako sa order ng Ombudsman .  itong order ni Casimiro iligal at garapal. Illegal ang order palagay ko naman. Siguro sumsisipsip dahil gusto maging Ombudsman. As far as I'm concerned, the valid order was order not to suspend.”
When asked if he will continue to report to work, Pichay said, “As far as if papasok ako…hindi naman ako regular employee. I'll see if there’s next meeting. Titignan ko kung papasok ako.”
Pichay even twitted Malacañang for what he feels is harassment. “I’m an old hand in politics. I’m used to this. I just feel they are doing an amateur job. Dapat pag-igihin nila para walang loophole.”
He maintained he violated no law or rule, even the administrative order cited in his suspension. Pichay says that AO 59 does not apply to this case.
He said ExpressBank is a private institution. Nevertheless, he says he got then President Gloria Macapagal-Arroyo’s approval.
“Kami po hindi nagcreate o acquire. What we did is [to] invest in a private bank as advised by the BSP [Bangko Sentral ng Pilipinas] since that’s not a government agency. 'Di naming kailangan ang Office of the President, yet we still asked for approval,” he said.
Pichay cited that the bank continues to make money, earning 31million in 2010 and 20 million as of April 2011. Pichay says the bank is being used to  help finance water districts.
So far he said the bank has extended loans to 12 water districts and 13,000  households.
“Kung naisip nila panggigipit , good luck sa inyo. Paglilingkod natin paano pababain ang bilihin,  matrikula; paano mapapababa presyo ng bilihin; ilang tao mabibigyan ng bahay.  If you look at records, during my incumbency nadoble na ang water districts. Nung pumasok tayo, 479 na water district; [ngayon] 860 na ang water district,” he said.