Former finance exec, 4 others fired over tax credi

Five finance department officials accused of issuing P690 million of questionable tax credit certificates (TCCs) to several garments firms were dismissed yesterday following the Ombudsman’s administrative hearing of their cases.

Dismissed were former Finance Undersecretary Antonio Balicena, former deputy executive director Uldarico Andutan Jr., acting deputy executive director Raul de Vera, and tax specialists Rowena Malonzo and Brandy Marzan.

Aside from forfeiting their retirement benefits and other emoluments, they were also banned from re-entering government service.

Ombudsman Aniano Desierto told reporters yesterday the five were held administratively liable for "gross negligence of duty" for issuing the TCCs irregularly.

"Given grave injuries suffered by the government in terms of loss of revenues, their acts of malfeasance clearly constitute gross neglect of duty which warrants dismissal from service," he said.

Desierto said they were found to have conspired with one another in "irregularly approving" the issuance of TCCs to the garment companies and allowing their "illegal transfer" to Steel Asia Manufacturing Corp.

Desierto said Pilipinas Shell Petroleum Corp., Petron Inc., and Caltex Phils. Inc. had benefited from the illegal transactions after the TCCs were issued by the one-stop shop inter-agency tax credit and duty drawback center in 1997.

However, graft charges pending in the Sandiganbayan against the five former finance officials and co-accused Shell, Petron, and Caltex may be dismissed because government prosecutors have failed to present any evidence to prove their case.

Government prosecutors have asked the Sandiganbayan’s fourth division to reconsider its ruling, saying that the issuance of a warrant of arrest indicates that the evidence against the accused is strong.

"The fact that there was a warrant of arrest (means) the Sandiganbayan found there was sufficient evidence to go through with prosecution," read the Ombudsman’s 75-page pleading. "The Special Prosecutor must be allowed to present the same."

Desierto said the Sandiganbayan could have "abused" its powers when it summarily dismissed the P690-million case of graft and estafa without any trial.

"The Court said the Ombudsman has no evidence to back up our claim," he said. "But given that we have a roomful of evidence, there is no reason why the Court will not reverse this adverse ruling."

Meanwhile, the militant Confederation for Unity, recognition and Advancement of Government Employees (COURAGE) described yesterday as "long overdue" the Arroyo administration’s filing of cases against former and present officials of the Social Security System (SSS) for their involvement in the alleged overpricing of PCI Bank shares, which the agency bought during the Estrada administration.

During his watch, former SSS president Carlos Arellano was said to have approved the acquisition of PCI shares at P290 million when its actual value was believed to be P245 million, causing the government to reportedly lose at least P1.1 billion.