Former AFP officials deny involvement in RSBS scam

Seven of the nine military officials allegedly involved in the P277-million loan scam at the Retirement and Separation Benefits System (RSBS) of the Armed Forces of the Philippines (AFP) denied yesterday the existence of graft charges filed against them before the Sandiganbayan.

In a letter to The STAR, retired Gen. Arnulfo Acedera, Lt. Generals Clemente Mariano, William Hotchkiss III, Vice Adm. Eduardo Santos, Rear Admirals Octavio Dauz, Luisito Fernandez, and M/Sgt. Jose Trompeta said they were never indicted.

Contrary to the Aug. 12 article that appeared in The STAR, the officials clarified there was "no indictment," professing innocence to the graft charges that involved RSBS approval of two loans — a P197-million corporate guarantee, and an P8-million short-term loan.

According to them, the publication of the story "caused us and our loved ones much irreversible damage. Please accept our gratitude for any attention this disclaimer may merit your newspaper in the interest of truth and fairness."

Special Prosecutor Dennis Villa Ignacio, who, along with Deputy Ombudsman for the Military Orlando Casimiro, approved the filing of the charges, clarified that the case was indeed set for filing, but that the military officials concerned immediately filed an appeal.

"We already have a resolution on that," he said. "It was not for filing, but they filed a motion for reconsideration to prevent the filing of the information in the Sandiganbayan. So we are left with no choice but to resolve first the motion for reconsideration."

The STAR had obtained a copy of the 15-page resolution, signed by graft investigators Ma. Teresa Lee-Rafols, Eugene Parrone and Gerard Varez and approved by Villa Ignacio and Casimiro, which formed the basis for its RSBS article.

"It was they who caused the non-filing of the (graft charges)," Villa Ignacio said. "Had they not filed a motion for reconsideration, we would have filed the case. They stopped the filing by filing an appeal. It was really set for filing, but they filed an appeal."

Casimiro and Villa Ignacio earlier ordered the indictment of seven military officials, along with retired Armed Forces chief Lisandro Abadia and Brig. Gen. Jose Ramiscal, for their alleged involvement in the multimillion-peso RSBS scandal.

Government probers discovered that the executive committee of RSBS "disapproved" the loan proposal of Marilaque Land Inc., but that the RSBS board of trustees, which Abadia used to head, proceeded "without the approval of the secretary of defense."

The Office of the Ombudsman and the Office of the Special Prosecutor said the retired Armed Forces chief and RSBS president Ramiscal conspired with the seven others and "allowed" themselves to be "persuaded and influenced by Abadia into approving the loan."

Abadia defended the alleged anomalous transactions, however, insisting that the graft cases are "merely a harassment" over "old, resurrected and rehashed issues," which is nothing but a "complaint for political purposes with no regard for truth."

The Office of the Ombudsman ruled nevertheless that the MLI loan was a "losing proposition from the very start, yet the RSBS board of trustees went on to grant the loan proposal of MLI despite its dim and questionable prospects."

Records showed that in December 2001, RSBS approved the dacion en pago (payment through assets) of MLI for payment of P134.2 million, even though MLI assets in Northpoint Estates in Mexico, Pampanga were only valued at P113.9 million, indicating a P20.3 million shortfall.

"By approving the loan of MLI, without taking into consideration the heavy and serious negative impact of the loan to RSBS, the board of trustees had placed the system and the government in a very disadvantaged position," the Office of the Ombudsman said. — Delon Porcalla