New graft case filed vs Pichay

MANILA, Philippines - The Office of the Ombudsman has filed another graft case against Surigao del Sur Rep. Prospero Pichay before the Sandiganbayan.

Prosecutors said the new charge against the former Local Water Utilities Administration (LWUA) chairman stems from the questionable spending of public funds for a chess tournament in 2010.

Ombudsman Conchita Carpio-Morales approved the filing of the graft case against Pichay, on the belief that some P1.5 million in government money was misused.

Indicted along with Pichay were former LWUA executives Daniel Landingin, Emmanuel Malicdem and Wilfredo Feleo, who will also be charged for violation of Republic Act 6713 or the code of conduct and ethical standards for public officials and employees.

Ombudsman probers said the local water agency sponsored the 2nd Chairman Prospero Pichay Jr. Cup International Chess Championship six years ago.

LWUA allegedly coursed the funds through the National Chess Federation of the Philippines (NCFP), which handled the tournament.

Graft investigators said LWUA, which should not be sponsoring sports activities, had granted the funding request only because of the solicitor’s association with Pichay.

“NCFP received the sponsorship amount from the LWUA only because of its association with Pichay, not because it was legally entitled to it,” the Office of the Ombudsman said. 

The anti-graft agency said the NCFP was a private entity that implemented a sporting event named after the former chairman of LWUA, which means that “the allocation is excessive and dubious, especially since holding or sponsoring sporting events like chess tournaments is not among LWUA’s primary purposes.”

Pichay was also supposed to be arraigned on charges of graft and banking law violations yesterday, stemming from a separate case involving LWUA’s purchase of a thrift bank co-owned by the family of Sen. Sherwin Gatchalian in 2009.

But the anti-graft court canceled the proceedings because of pending issues.

On Wednesday, the Sandiganbayan ordered the dismissal of all criminal charges filed against Gatchalian, who is also a respondent in the graft and malversation of public fund charges related to the thrift bank.

The Sandiganbayan granted his motion for judicial determination of probable cause, which questioned his indictment just because he was a minority shareholder of the bank owned by his family that LWUA bought seven years ago.

Gatchalian, who had to post a travel bond of P270,000 because of a hold departure order, is currently in China with President Duterte’s official state visit.

But other members of his family like Valenzuela Rep. Weslie Gatchalian are not yet off the hook, as one of the graft cases filed against them remains.

Aside from Gatchalian and Pichay, other respondents to the bank-related cases were former officials of LWUA, corporate executives of Wellex Group Inc., officers of Forum Pacific Inc. and officials of Express Savings Bank Inc.