Ex-FAPE exec gets 163 years for graft

MANILA, Philippines – The Sandiganbayan has convicted a former president of the Fund for Assistance to Private Education, an arm of the Department of Education, and three other FAPE officials of graft and malversation for alleged misuse of the agency’s funds amounting to P56.5 million from 1994 to 1997. 

In a 57-page ruling by the anti-graft court’s First Division, former FAPE president Adriano Arcelo was found guilty of seven counts of graft and five counts of malversation of public funds.

Arcelo was meted up to 10 years in prison for each count of graft and 10 up to 18 years for each count of malversation, for a total of 163 years in prison.

Also found guilty were former FAPE vice president Roberto Borromeo, investment director Rosa Anna Duavit-Santiago and programs officer-in-charge Corazon Nera.

They were ordered to pay a fine of P6.554 million.

The anti-graft court also ordered their perpetual disqualification from holding any government position.

Based on the information filed by the Office of the Ombudsman in 2012, the defendants conspired in facilitating the release of P6,554,500 in FAPE funds to Arcelo as a personal loan.

The Office of the Ombudsman said the amount was allocated for the implementation of programs aimed at improving the private education system.

The ombudsman said the release of the money to Arcelo lacked the approval of the majority of the members of FAPE.

Records showed that the money was released to Arcelo in five tranches from 1994 to 1995.

Ombudsman prosecutors said another P50 million was released on Feb. 18, 1997 to John B. Lacson College Foundation (JBLCF), which is chaired by Arcelo’s wife Mary Lou Lacson-Arceo.

The Sandiganbayan said the grant of the loan to JBLCF was in violation of Republic Act 3019, the Anti-Graft and Corrupt Practices Act.

The court dismissed the defendants’ claim that the loans did not involve government money but grants from private entities.

The Sandiganbayan pointed out that since FAPE is a government institution, the grants or donations it receives are considered property of the government.

“Assuming that FAPE account 1003 comes from co-mingled funds from private educational institutions, these are considered government funds the moment they are received by FAPE,” the ruling penned by Associate Justice Reynaldo Cruz read.

Associate Justices Efren de la Cruz and Michael Frederick Musngi concurred with the ruling.

“Arcelo displayed evident bad faith when he applied for personal loans and received proceeds thereof from FAPE knowing the same to be public funds,” the court said.