Gatchalian indicted for graft over P780-M bank deal

MANILA, Philippines – The Office of the Ombudsman ordered yesterday the filing of graft and malversation charges against senator-elect Sherwin Gatchalian and several others for the allegedly anomalous purchase of a thrift bank for P780 million in 2009.

Gatchalian, former Local Water Utilities Administration (LWUA) chairman Prospero Pichay Jr., other officials of the agency, corporate executives of WELLEX Group Inc. (WGI), officers of Forum Pacific Inc. (FPI) and officials of Express Savings Bank Inc. (ESBI) would be indicted following the denial of their motions for reconsideration, according to Ombudsman Conchita Carpio Morales.

The ombudsman affirmed its April 2015 decision finding probable cause against the respondents.

Gatchalian, who won a Senate seat in the last elections, was indicted as a former corporate executive of the WGI, which co-owned the bank acquired by LWUA.

He allegedly benefited from the questioned transaction along with other members of his family that owned the WGI.

Apart from Pichay, former LWUA officials who were named respondents include Eduardo Bangayan, Aurelio Puentevella, Enrique Senen Montilla III, Wilfredo Feleo, Daniel Landingin and Arnaldo Espinas.

The other WGI executives who will be charged include the senator’s father William Gatchalian, Dee Hua Gatchalian, Elvira Ting, Kenneth Gatchalian and Yolanda de la Cruz.

FPI executives who will be indicted are Peter Salud, Geronimo Velasco Jr., Weslie Gatchalian, Rogelio Garcia, Lamberto Mercado Jr., Evelyn dela Rosa, Arthur Ponsaran, and Joaquin Obieta.

Former ESBI executives who are also in the list of respondents include George Chua, Gregorio Ipong, Generoso Tulagan, Wilfred Billena and Edita Bueno.

Gatchalian slammed the decision of the ombudsman’s investigators to include him and his family among those to be charged for the sale of ESBI to LWUA in 2009.

He pointed out that he only has 14 shares with ESBI worth P2,500 or P178.57 per share.

“These shares, which are equivalent to 0.00001886042 percent of the total shareholdings sold, are mere qualifying shares in the bank. Yet I am being charged for receiving an unwarranted benefit of P2,500,” Gatchalian said.

“And for such amount, the ombudsman is trying to portray me as a crook and part of the conspiracy to defraud the government from the sale of ESBI,” he added.

Morales said the respondents would also be charged with violation of Republic Act 8791 or the General Banking Law of 2000 and the Manual of Regulation for Banks.

The cases stemmed from LWUA’s acquisition of ESBI, a local thrift bank based in Laguna owned by the Gatchalians, FPI and WGI, seven years ago.

Records show that in March 2009, the LWUA Board composed of Pichay, Bangayan, Montilla, Puentevella and Landingin approved the acquisition of the bank without approval from the Bangko Sentral ng Pilipinas, Department of Finance and Office of the President.

Gatchalian: Nothing to hide

Gatchalian expressed confidence the case against him would be dismissed, noting that in his 15 years in public service, he had never been charged for corruption.

“We will face this baseless case head-on because we have nothing to hide. I have never been charged for graft in my 15 years in public service. The truth will eventually come out,” he said.

Gatchalian served as mayor of Valenzuela City for three terms. – With Paolo Romero