Foundation linked to Mike A faces fine

The Securities and Exchange Commission (SEC) will impose a fine on the Lualhati Foundation Inc., a charitable organization identified with First Gentleman Jose Miguel Arroyo, for its failure to file financial statements for the past nine years.

The foundation was the recipient of an P8-million donation made in 1999 by Manila Rep. Mark Jimenez.

Benito Cataran, head of the SEC’s company registration and monitoring department (CMRD), however, said that the fine would be a mere "slap on the wrist."

Under SEC rules, any non-stock or non-profit corporation that fails to file reportorial requirements can be imposed a fine ranging from P500 to P3,500 for each year of failure to report.

Cataran said they will also ask the foundation to explain why it has failed to submit financial statements to the SEC.

He explained that the submission of financial statements is essential to determine if a company’s funds are related to or sourced from illegal activity.

Malacañang admitted Tuesday that the foundation received the checks from Jimenez in 1999.

Bulacan Rep. Wilfrido Villarama, on the other hand, insisted that the actual donations amounted to P18 million.

Based on the foundation’s articles of incorporation, among those listed as trustees were Edgardo Manda, now general manager of Ninoy Aquino International Airport (NAIA), Bernardino Abes, Raul Bonsan, Leopoldo Abad, Jose Fortunato Ledesma, Carlos Dovle, Mabuhay Rosero and Rodolfo Menor.

Manda, for his part, confirmed yesterday Jimenez indeed donated P8 million to Lualhati Foundation which he formerly headed.

Manda, however, denied claims that the First Couple was involved in running the affairs of the foundation.

"President Arroyo or First Gentleman Mike Arroyo has nothing to do with the foundation. They are not officers or members of the board of trustees," Manda told a weekly forum at the Hotel Rembrandt.

Manda said the foundation, a non-profit and non-stock organization, was set up in 1993 for charity missions.

Manda said he headed the foundation while also working as vice chief of staff of Mrs. Arroyo when she was still vice president and concurrent social welfare secretary.

He disclosed records which showed the foundation received three checks — P5 million, P2 million and P1 million — from Jimenez in 1999.

"We checked our records and we found the name of Jimenez as one of the contributors," he said.

Manda said the contribution has put the foundation in a bad light in the wake of the negative publicity generated by Jimenez in his exposés.

Jimenez earlier accused Mr. Arroyo of receiving P8 million in checks for the foundation.

"How could the First Gentleman use the foundation to solicit funds when the couple was never part of it?" Manda asked.

"The core of the foundation is mostly Rotarians. The President has nothing to do with Lualhati foundation," he added.

He said beneficiaries of the foundation were recipients of the "Ahon Bata" and "Ahon Pamilya" projects of the Department of Social Welfare and Development (DSWD), impoverished families, ABS-CBN foundation, and religious and charitable institutions.

Manda said they are receiving donations for its various fund-raising projects "but without any strings attached."

Manda said the foundation is considering closing down and transferring its funds to other charity projects. "With the kind of publicity we are getting, who will support our projects," he said.

Manda said he will still assume full responsibility as president of the foundation in handling its financial obligations.