ATO chief suspended for 3 months for excessive cash advances

Malacañang slapped Assistant Secretary and Air Transportation Office (ATO) chief Nilo Jatico with a three-month suspension without pay for failing to liquidate P2.5 million in cash advances from 2003 to 2005.

The Palace said the suspension was in accordance with the rules and procedures governing the disbursement of public funds.

The suspension was announced yesterday by Presidential Anti-Graft Commission (PAGC) Chairwoman Constancia de Guzman, who also disclosed that the Palace affirmed the PAGC decision in July dismissing an assistant regional director of the Department of Trade and Industry (DTI).

Jatico, meanwhile, apparently made himself scarce after the news of his suspension circulated over the grapevine. He also seemed unaware of the suspension order as he presided over a conference at the ATO yesterday afternoon, when The STAR attempted to contact him for his reaction.

Jatico also did not answer calls made by The STAR to his mobile phone.

The case stemmed from the complaint filed by an ATO employee on July 27, 2004. This ATO employee later filed a letter of desistance and withdrew his complaint on Jan. 24, 2005.

Despite the withdrawal of complaint, the PAGC began an investigation motu propio (on its own) and conducted a fact-finding inquiry and found a prima facie case against Jatico.

Investigation showed that Jatico continued to draw funds beyond the limitation set for extraordinary and miscellaneous expenditures of certain government officials, under the General Appropriations Act (GAA).

Jatico, as a department assistant secretary during that period, was only permitted to draw cash advances amounting to P85,000.

Based on records, the Commission on Audit Report for 2003 reflected Jatico’s total disbursements of P90,961,339.32, which remained unliquidated for a long time. It also recommended that the ATO management should strictly observe the rules and procedures for cash advances.

For the following year, Jatico incurred unliquidated cash advances amounting to P1,191,145.52. Resident auditor Mary Magdalen Razo reported that P425,025.87 of that amount was used for travel and the rest was used by the respondent for hostings, conferences and meetings in 2004.

The PAGC had recommended in a resolution it submitted to the Office of the President on April 4 Jatico’s immediate dismissal from the service with the corresponding accessory penalties of forfeiture of financial benefits and perpetual disqualification to hold public office.

The resolution signed by Executive Secretary Eduardo Ermita on Oct. 16 modified the recommendation citing that the respondent was indeed remiss of his obligation to render proper accounting within the prescribed period by the GAA, but Jatico’s belated liquidation has not caused "undue injury" to government.

"Therefore, it can be considered as ‘simple neglect of duty’," the resolution said. De Guzman said Jatico was given a stern warning that repetition of the offense would merit a more severe penalty.

However, "no matter how light is the offense, the law should be implemented. Failure to comply within the prescribed period of time for proper liquidation of cash advances is not an excuse. I hope that this will serve as a warning to all government officials," de Guzman said.

She also said the Palace reaffirmed its decision to dismiss DTI Assistant Regional Director Perfecto Yap of Region 6 for alleged abuse of authority, falsification of official documents and other graft and corrupt practices. — With Ranier Allan Ronda