'Ex-COA commissioner, auditor for Navy received payoffs'

MANILA, Philippines - A former commissioner of the Commission on Audit (COA) received payoffs from the Armed Forces of the Philippines (AFP), former military budget officer George Rabusa alleged yesterday.

Rabusa also claimed that more than one COA auditor received payoffs from the AFP as part of efforts to cover up massive corruption in the military.

Speaking at the Senate hearing on the plea bargaining agreement of former military comptroller Carlos Garcia, Rabusa alleged that COA resident auditor Divina Cabrera, who was previously assigned at the Intelligence Service of the Armed Forces of the Philippines (ISAFP), was just a lackey of a higher official of the commission.

During previous hearings at the Senate, Rabusa identified Cabrera as the resident auditor assigned at the ISAFP who received a cut from the so-called fund “conversions” in the AFP.

According to Rabusa, Cabrera was initially allocated one percent of the total amount that was converted but she asked for two percent.

Rabusa said Cabrera had a “handler” who he identified as a certain commissioner Raul Flores of the COA.

Rabusa said that Flores was in charge of the intelligence transactions of the AFP and that he occasionally met with him either at the Steak Town restaurant in Quezon City or at Megamall in Mandaluyong City.

During these meetings, some of which were attended by Cabrera, Rabusa claimed that he prepared an envelope containing cash for Flores.

Rabusa said that the amount prepared varied, depending on the need, but that it never went below P200,000 per meeting.

“He calls when there is a problem and then we have to meet,” Rabusa said in Filipino.

Cabrera, who was present during yesterday’s hearing and who denied the allegations of Rabusa, said that Flores has since retired from the COA.

No irregularities

Cabrera, now assigned at the Philippine Navy, said there was never an instance when there were irregularities found during her audit of the ISAFP when she was still there.

Cabrera admitted that she heard about the issue of conversion and understood it to be the use of funds from the maintenance and other operating expenditures of the AFP’s budget for the purchase of equipment.

“As far as the ISAFP is concerned, the funds are released through cash advances,” Cabrera said.

She said that there was nothing irregular with what she audited simply because she based her audit on the documents that were submitted to her.

The denials of Cabrera were not readily accepted by members of the Senate Blue Ribbon committee, who raised several issues against her, including her tenure as resident auditor at the AFP.

Sen. Franklin Drilon asked Cabrera how long she had been assigned at the AFP and if she complied with a supposed policy of COA of having its auditors stay for only three years in each assignment.

Cabrera revealed that she was detailed at the ISAFP for 13 years, from 1991 to 2005.

She claimed that her predecessor was also resident auditor at the AFP for a long time but she could not identify who he was and only said that he had already died.

Cabrera denied that she asked to be retained at the ISAFP but admitted that she had no complaints about the assignment.

“It’s the prerogative of the chairman of the COA. I was just complying with my assignment order,” Cabrera said.

Asked if she liked her assignment, Cabrera said that the transactions that she had to audit were “simple” because it primarily involved the audit of the liquidation of the cash advances of the defense attaches overseas and the other operating units.

Cabrera said that she was reassigned to the Philippine Navy last August.

Cabrera’s properties

During the hearing it was revealed that Cabrera owned a 600-square meter house at the Loyola Grand Villa in Quezon City which she bought in 1992 for P2.5 million.

Asked if she has any other residences, Cabrera said that there is an old house in Marikina City.

Drilon then asked her about a condominium unit at McKinley Hill in Taguig City, which she denied owning.

She also admitted that she developed close relationships with the officers and personnel of the ISAFP and the AFP, including Rabusa, who she said was her kumpare.

Risky

According to Rabusa, Cabrera’s secretary occasionally called him up to ask for a meeting at her office whenever there was a problem.

“Whenever we convert a big amount of PS (personal services) she questions this because this could ‘overheat.’ She said it was risky,” Rabusa said in Filipino.

The PS is a provision under the budget for each government office and is intended for the salaries of its personnel.

Rabusa previously explained that the PS became a source of the slush fund of the AFP leadership, which during his time, amounted to P480 million in one year.

He said that the Department of Budget and Management approves releases for the PS based on the troop ceiling set by the AFP.

However, the actual number of troops that would be covered by the PS expenses is always below the troop ceiling submitted by the AFP.

The “savings” generated from the PS were then diverted to the slush fund.

On one occasion, Rabusa recalled that Cabrera met with him at her office and told him that she wanted to burn piles of documents there.

“I told her that we cannot be selective because if we burn this, the entire ISAFP building would go up in flames. We were very close,” Rabusa said.

Cabrera denied the allegation and said that it was very hard to believe the claim because the ISAFP building used to be a mortuary, built with cement so it would be very hard to burn the place down.

Replaced

Assuring that an investigation will be conducted, COA chairman Reynaldo Villar said Cabrera will be relieved of her duties.

“Within the next 48 hours, she will be replaced,” he told The STAR yesterday, adding that he will ask the Senate Blue Ribbon committee to provide him a copy of its transcript of the statements made during the legislative inquiry.

Villar said he was unable to attend the Senate hearing as he had other important meetings but was told of what happened.

He said Cabrera will be relieved while COA looks into the allegations against her as ISAFP resident auditor from 1991 to 2005.

If evidence would warrant that other auditors under Cabrera were also involved, they will also be replaced, according to Villar.

Still present

Upon the prodding of her supporters and full support from her family, former state auditor Heidi Mendoza said no death threat can prevent her from pursuing her testimonies on the alleged corruption in the military even after she begged the Blue Ribbon committee last Thursday to spare her from further agony.

Mendoza explained her presence yesterday during the Senate, belying claims that she was backing out of the fight because she was paid or threatened.

She, however, declined to comment on Rabusa’s allegations against Cabrera and Flores.

More denials

Former COA commissioner Emmanuel Dalman yesterday denied having told Mendoza to go slow on the Garcia case.

Assistant Commissioner Emma Espina also denied telling the former COA auditor that she was not interested in the Garcia report.

Former COA chairman Guillermo Carague also categorically denied instructing Mendoza not to write the Garcia report, noting that the investigation was an initiative of the Office of the Ombudsman.

Meantime, the Confederation for Unity, Recognition and Advancement of Government Employees threw their support behind Mendoza by launching a fund drive for her and other government employee-whistleblowers.

At the same time, alumni of the San Beda College also gave a P50,000 check to Mendoza, in support of her courageous act. – Marvin Sy, Michael Punongbayan, Rhodina Villanueva, Christina Mendez, Sandy Araneta