Ombudsman orders probe into PCSO controversy

Overall Deputy Ombudsman Margarito Gervacio Jr. has issued an order directing his office's Fact Finding and Intelligence Bureau (FFIB) to conduct a probe into a new set of anomalies at the Philippine Charity Sweepstakes Office (PCSO).

The investigation will cover the recent allegations that P200 million of PCSO funds had been spent for the procurement of medicines that were either substandard or overpriced.

Gervacio, who is currently the officer-in-charge of the Office of the Ombudsman, said the probe will be conducted upon the request of PCSO Chairwoman Rosario Lopez.

The matter was formally brought to the attention of the Ombudsman by former PCSO chief Manuel Morato in a letter dated March 16, 2000.

In the same letter, Morato referred to other controversies like the purchase of an elevator, charging of P10 to P20 from the poor for medical assistance, renovation of the Quezon Institute allegedly without bidding, a car plan allegedly benefiting temporary PCSO directors and unspecified "abuse of many other privileges."

Gervacio said former PCSO board member Sister Christine Tan, who had blown the whistle on the misuse of funds for projects of the Office of the President, will be investigated for her alleged involvement in the release of the medicine fund.

Also to be subjected to a probe are former PCSO chairwoman Cecilia Muñoz-Palma, board member Ulpiano Sarmiento, Maria Feria and Neil Lina.

A team composed of lawyer-investigators has been directed to submit in 10 days a report of the initial findings.

Gervacio, however, has instructed the FFIB not to limit the coverage of the probe to those mentioned by Morato, but to include the publicized allegations by Tan that some P430 million in PCSO funds had been misused.

First Lady Luisa Estrada and San Juan Mayor Jinggoy Estrada are expected to testify today in the Senate probe into their alleged transfer of funds to projects supported by or initiated by the Office of the President.

Also invited to the hearing are Lopez, Tan and Palma.

Palma said she is deeply troubled by newspaper reports brought about by Tan's allegations.

She vehemently denied that under her chairmanship, the PCSO board was a "rubber stamp" of President Estrada.

"In fairness to all, I must state that the amount the PCSO may have given for the projects of the First Lady and the President constitute a fraction of the totality of financial assistance from the Charity Fund, which during the first 18 months of the administration reached a grand total of P1,086,197,699.17," Palma said in a statement.

The PCSO chief pointed out that she and other members of the Board used their judgment in assessing the merits of requests from Malacañang, Congress, government and non-government institutions and the public in general.

"It is a fact that requests for assistance were received by the Board from the First Lady and were granted because the projects were within the PCSO charter," Palma said. "But it is incorrect to impute that there was no other course for us but to grant the request."

Members of the current PCSO board have themselves been accused of mismanagement, including the use of funds for expensive damage control junkets, purchase of luxury cars and use of discretionary funds for trips abroad. -- With Perseus Echeminada, Manny Galvez