The three Lt. Cols Hilario Lagnada and Jessie Mario Dosado and Maj. Reinhart Bautista have been relieved from their positions at the Armys Logistic Office pending the resolution of the pre-trial investigation against them for alleged violations of Articles of War 96 (conduct unbecoming of an officer and gentleman) and 97 (conduct prejudicial to good order and military discipline).
The military disposition form against them was signed by Vice Admiral Ariston de los Reyes, Armed Forces vice chief of staff, and forwarded to Armed Forces chief Gen. Efren Abu.
De los Reyes heads the Office of Ethical Standards and Public Accountability tasked to investigate military personnel accused of corruption.
Military documents showed that Lagnadas wife, Haydie, brokered a P10.7-million contract for the supply of medical equipment to the Army hospital, allegedly using businesswoman Nelia Ayson of Gazzaz and Felfran Enterprises, as dummy.
However, Mrs. Lagnada, without Aysons authority, withdrew checks, which were in the name of Gazzaz and Felfran Enterprises and which totaled 2,759,750, from the Army Finance Center, the documents showed. Lagnada was then assigned to the Armys Logistics Office at Fort Bonifacio.
The direct participation of Lagnadas wife in the transaction violated existing laws prohibiting relatives of military officers assigned to the Logistics Office, up to the fourth degree, to transact business with the office.
Bautista was included in the case because he allegedly released the checks to Mrs. Lagnada. Dosado, on the other hand, allegedly issued a certification that she could withdraw the checks in Aysons behalf.