The conviction of Surigao del Sur Representative Prospero Pichay Jr. for three counts of graft over the mismanagement of P780 million in Local Water Utilities Administration (LWUA) funds was upheld by the Sandiganbayan.
“The evil sought to be prevented by the stringent application of banking laws would not have transpired had the accused (Pichay and Feleo) simply complied with what is incumbent upon them i.e., to secure prior approval with the appropriate government agency [in this case, the Monetary Board], before venturing into the risky purchase of 60 percent voting equity of Express Savings Bank Inc. (ESBI), capital infusion and additional deposit involving the total amount of P780 millions of public funds,” the Sandiganbayan said in its 17-page resolution dismissing the Pichay’ partial motion for reconsideration.
The anti-graft court added: “After turning all stones, the court finds no sufficient justification to warrant abandonment of our earlier ruling. In view of the foregoing, the respective Motions for Partial Reconsideration of accused Feleo and Pichay are hereby denied for lack of merit.”
The court ruled on 7 June 2022 that Pichay, former LWUA Administrator, and his then Deputy Administrator Wilfredo Feleo Jr. are liable for LWUA’s 2009 acquisition of a 60 percent voting stock of the Laguna-based local thrift bank ESBI owned by the WELLEX Group Inc. (WGI) and Forum Pacific Inc. (FPI).
It added Pichay and Feleo’s claim that there was tacit approval by the Monetary Board for LWUA’s purchase of ESBI shares as borne out by exchanges of correspondence did not have a legal anchor.
Pichay was earlier sentenced to at least 18 years in jail.
“Courts are not the forum to plead for sympathy. The duty of courts is to apply the law, disregarding their feeling of sympathy or pity for an accused. Dura Lex Sed Lex. The remedy is elsewhere… [such as] clemency from the executive or an amendment of the law by the legislative. But surely, at this point, this Court can but apply the law,” the Sandigan ruling read in dismissing Pichay’s argument that LWUA’s acquisition of ESBI was a mere bad business decision by a public official.
Public office is a public trust and all government officials and employees must at all times be accountable to the people, serve them with utmost responsibility, integrity, loyalty, and efficiency, act with patriotism and justice, and lead modest lives which both accused failed to measure up to during their stint as LWUA officials, the ruling said.
It added it is undeniable that as far as the records of the cases were concerned, a sizable amount of public funds which serve as the lifeblood of the nation’s economy was unaccountable due to the irregular transaction undertaken by both accused in the performance of their duties.
“Taking into consideration the sheer amount of government funds involved and the callousness in ignoring the constant call of various government agencies to mend their ways in accordance with laws…such negligence can only be characterized as gross and inexcusable,” the Sandiganbayan said.