Ombudsman asked to suspend, charge Garcia, other GSIS execs with graft

MANILA, Philippines – The Office of the Ombudsman was asked yesterday to suspend for six months the president and general manager, vice president and treasurer, and the entire board of the Government Service Insurance System (GSIS).

In two separate complaints, a retired government employee and three public school teachers also called on the anti-graft agency to charge before the Sandiganbayan with graft, misconduct and malversation of public funds Winston Garcia, GSIS president and general manager; Consuelo Manansala, vice president and treasurer; Board of Trustees chairman Bernardino Abes; and members Victoria Ablan, Jesse Andres, Mario Ramirez, Esperanza Ocampo, Reynaldo Palmiery, Alejandro Roces, Jesus Santos, and Nita Javier for allegedly depositing about P10.39 million of state pension funds in the bank account of Manansala.

In their complaints, Robert Carballo, a government retiree; and Feliciano Taguibao, Miguel Miram, and Luz Pacete, all public school teachers, said a report of the Commission on Audit showed that the GSIS initially deposited over P2.7 billion to the account of Manansala on May 5, 2003 after the certificate of incorporation of GSIS Properties Inc. (GPI) was issued by the Securities and Exchange Commission.

It was found that various deposits were subsequently made to the account of Manansala instead of the funds being deposited in the account of GPI, which was already recognized as a corporation, the complaint added.

The complainants also questioned the creation of GPI through resolution No. 120 passed by the GSIS board on June 5, 2001 without prior clearance or review of the Office of the Government Corporate Counsel and the Department of Finance as required under Administrative Order No. 59.

“The cash transfers made to the savings account of Consuelo Manansala out of the proceeds of matured treasury bills (amounting to P7,999,990,973.58) resulted in ‘opportunity loss’ in aggregate amount of P46,988,422.80 because had the money been placed in treasury bills it would have earned P57,376,774.88 (or P10,388,322.08 higher),” read the complaint.

The complainants asked the Office of the Ombudsman to investigate possible violations of Republic Act 3019, the Anti-Graft and Corrupt Practices Act; RA 6713, Code of Conduct and Ethical Standards for Public Officials and Employees; and Article 217 of the Revised Penal Code, Malversation of Public Funds or Property. – Edu Punay