The suspension was contained in an order dated Dec. 3, 2003 and is pursuant to Section 13 of RA 3019, also known as the Anti-Graft and Corrupt Practices Act, in view of the existence of probable cause to charge Principio with violation of the anti-graft law.
Principio had argued before the Ombudsman that he did not specifically recommend in his examination report that the Rural Bank of San Miguel be penalized and that the recommendation was contained in the Report of Examination not signed by him, but by acting deputy Director Conrado D. Sta. Ana on behalf of BSP Director Wilfredo T. Domo-ong, Managing Director Ricardo P. Lirio, and Deputy Governor Alberto V. Reyes.
Principio claimed that it is, therefore, an error to rule that it was he who recommended the imposition of the P2.5 million penalty on RBSM, the biggest rural bank in Bulacan with 15 branches, leading to the bank’s closure.
On Nov. 12, 2002 the Ombudsman filed an information for violation of the anti-graft law against Principio with the Regional Trial Court of Manila.
Principio also argued that he did not cause undue injury to any party whether the government or a private party.
However, the court ruled that the existence of undue injury or good faith or lack of it are evidentiary in nature. As a matter of defense it can be best passed upon after a full-blown trial on the merits.
The court also ruled that the determination of the existence or absence of probable cause lies within the sound discretion of the Office of the Ombudsman.
The arraignment of Principio is scheduled on Jan. 21, 2004 at 8:30 a.m.