6 PVAO executives probed over missing P43.7 M

Two administrators and four ranking officials of the Philippine Veterans Affairs Office (PVAO) are under investigation for graft in relation to more than P43.7 million in missing funds.

The Office of the Ombudsman is currently conducting a preliminary investigation against administrators Wilfredo Pabalan and Artemio Arugay; chief accountant Leovigildo Santos; consultant Enrique Sintos; comptroller Heriberto Ruanto; and data center chief Yvonne Agbayani.

All six are being accused of allegedly conspiring to defraud the government of millions of pesos in public funds using a “kiting system,” or writing a check on one bank account and depositing it in another just before the end of the accounting period.

By doing so, Assistant Ombudsman Mark Jalandoni said no entry is made in the company’s records about the transfer of funds until the next accounting period.

Jalandoni said malversation charges under Article 217 of the Revised Penal Code (RPC) are also being recommended against Pabalan, Arugay, Santos and Sintos.

Jalandoni said Pabalan was also separately charged for illegal use of public funds or property also in relation to his involvement in the supposed scam before the Preliminary Investigation and Administrative Adjudication and Monitoring Office (OMB-PAMO) headed by Assistant Ombudsman Jose de Jesus Jr.

Ruanto, Santos and Agbayani are also facing administrative complaints for serious dishonesty, grave misconduct and conduct prejudicial to the best interest of the service under civil service rules.

Jalandoni said initial investigation conducted by his office revealed how the PVAO officials employed the kiting system to prevent the discovery of P43,730,912.58 in missing funds.

Records show that Pabalan made fund transfers totaling P43,730,912.58 from the Philippine Veterans Bank (PVB) to the Centennial Savings Bank, Inc. (CSB), a commercial bank with no authority nor accreditation as a government depository bank from the Bangko Sentral ng Pilipinas (BSP).

Of the amount, P8,032,438.27 was allegedly withdrawn from the CSB as evidenced by 32 Instructions to Pay (ITPs) signed by Pabalan himself.

The amount was then transferred to the Philippine Veterans Assistance Commission (PVAC) but was not used for pension payment but as payment to several suppliers instead.

Aside from the P43,730,912.58 missing funds, Jalandoni’s office also discovered that at least 11 pensioners were overpaid by as much as P711,428.88.