MFBAI to probe unauthorized investment of funds

The new leadership of the Manila’s Finest Brotherhood Association, Inc. (MFBAI) will initiate its own probe on the alleged unauthorized investment of the association’s funds worth more than half a million pesos reportedly committed by its resigned president.

Newly installed MFBAI president SPO4 Norberto Obrero told The STAR an investigation will be conducted as to how former MFBAI president SPO3 Reynaldo Li managed to invest the association’s fund worth P506,940.31 in time deposit without a board resolution.

The fund was placed in time deposit last Dec. 29, 2001 with a one-year maturity with the Police Savings and Loan Association, Inc. (POSLAI), in spite of persistent rumors as early as 1999 that the bank was "in the brink of bankruptcy."

Obrero said he would demand POSLAI to remit the amount plus interest on its maturity date, with a warning that he would initiate legal proceedings against the bank if they fail to do so.

There are reports that POSLAI has been having problems on its daily operations after the PNP-Financial Center at Camp Crame withheld the release of the monthly P1.3 million remittance to the bank following the discovery of the scam.

In a board meeting held last week, Li tendered his resignation as MFBAI president amid mounting pressure from the members and the board of directors. Li, along with eight others, have been charged with 23 counts of estafa by depositors of the scandal-wracked POSLAI.

"I am taking a leave of absence from my post to preserve the credibility of the association, until my alleged participation in the scam has been cleared by the court," Li was quoted as saying.

Li’s decision was welcomed by the association’s officers and members, who have long been clamoring for his resignation to "save the ideals of the MFBAI."

The MFBAI, an association of more than 10,000 non-commissioned officers of the Western Police District (WPD), was formed to safeguard and promote the welfare of the policemen. The group has been in the forefront in the fight against programs and policies of the Philippine National Police which it deemed detrimental to the interest of the lowly policemen.

Li, who also serves as vice chairman of the POSLAI board of directors, is being tried by the court for 23 counts of estafa, together with POSLAI president and CEO retired police Col. Vicente Palmon; board members Inspector Cesario Tubog and SPO3 Radito Perez, retired police officials Felix Pineda, Cesar Baria and Armando Inabangan, and civilian employees Vicente Ray Palmon III and Yolanda Sales.

All the accused have posted bail of P575,000 each for their temporary liberty. Majority of the POSLAI complainants were MFBAI members themselves.