Sandigan asked to junk graft raps vs Gatchalian

MANILA, Philippines – Sen. Sherwin Gatchalian has asked the Sandiganbayan to dismiss the graft case filed against him by the Office of the Ombudsman for his role in the government’s allegedly anomalous purchase of a thrift bank for P80 million in 2009.

In a motion filed before the anti-graft court’s Fourth Division, Gatchalian maintained that he was “indicted not on the basis of evidence” but on a “baseless conspiracy theory.”

“The records clearly show that the respondent was not a director nor an officer of Express Savings Bank Inc. He was not involved in the management and affairs of the bank, such as in the negotiations for the approval of the sale of the ESBI shares,” the senator’s lawyers said.

Gatchalian’s lawyers argued that his only participation in the bank was his ownership of 14 shares of stock, which he sold to the Local Water Utilities Administration (LWUA) for P176.63 per share or a total of P2,514.82.

Gatchalian is facing charges of graft, malversation and violation of banking laws along with former LWUA chairman Prospero Pichay Jr.

The other respondents are former officials of LWUA, corporate executives of WELLEX Group Inc. (WGI), officers of Forum Pacific Inc. (FPI) and ESBI officials.

The ombudsman said the government’s acquisition of ESBI, a local thrift bank based in Laguna owned by the Gatchalians, FPI and WGI, was questionable.

Investigators said audit findings made by a private firm showed that the bank was insolvent after suffering substantial net losses and capital deficits from 2005 to 2009.

“In view of the bank’s precarious financial standing at the time of the sale, the windfall received by the private respondents must be deemed unwarranted benefit, advantage or preference,” Ombudsman Conchita Carpio Morales said.

Gatchalian slammed the ombudsman’s findings, saying he was indicted merely because he owned shares of stocks, which is 0.003143 percent of the purchase price of P80.003 million.

“It is wrong… to put accused in a collective with the others simply because he happened to own some ESBI shares. There should be evidence showing that he concurred in a will, intent, or design to commit a crime,” he said.

Gatchalian said he should be “spared from the trauma of having to go to trial on a baseless complaint.”