Senate wants 'Pelayo' unmasked

MANILA, Philippines - Who is Ebbie Pelayo?

Senate President Pro Tempore Jinggoy Estrada wants to know more about the civilian who allegedly received P1 million monthly in payola from former military comptroller Carlos Garcia from 2001 to 2003.

This question cropped up yesterday after the name was included in the list of recipients of the multimillion-peso Provision for Command Directed Activity (PCDA) of the Armed Forces of the Philippines (AFP)’s operating program and budget for 2002.

The payola was placed under the so-called “Pelayo accounts,” which caught the interest of some senators and observers at the Senate hearing last Thursday.

Estrada said he would ask retired Lt. Col. George Rabusa at the next Senate hearing about Pelayo and other details about the intricacy of corruption in the military.

“We will ask him in the next hearing about it. As a witness to all this corruption, he is credible,” Estrada said, setting aside accusations that Rabusa’s claims are politically motivated because he and the former budget officer have the same lawyer, Noel Malaya.

From an estimated P1 billion converted and juggled by the AFP comptroller with him as budget officer, Rabusa said former AFP chief Angelo Reyes had control of the funds including who gets allocation and how much.

Rabusa said the P1.025 million allocated to the so-called Pelayo accounts was meant for a certain “Ebbie Pelayo” who does important errands for the AFP chief and other military officials.

Rabusa described Pelayo as a “supplier” who can do errands, and provide “anything under the sun” to the AFP chief and “higher ups.”

“Pelayo is a supplier for us at J-6 (Office of the Comtrollership) and the higher-ups,” said Rabusa, refusing to elaborate when asked by The STAR on what Pelayo actually supplies to the generals.

When pressed further, Rabusa said “it’s confidential” and most of the time, the “ladies” or the generals’ wives were out of Pelayo’s operations except for some trips abroad when the officers’ wives tagged along with their husbands.

According to Rabusa, Pelayo has been helpful in “top secret operations” of the military officials – not within the functions of the military – but on other matters more important to the generals.

The P1-million a month is not a constant stipend, Rabusa clarified. Sometimes it depends on the expenses incurred for assignments Pelayo does for the AFP chief.

“Pelayo takes care of everything, both official and even unofficial arrangements, including procurement of cars, and even of the generals who just want to play golf,” Rabusa told The STAR in an interview at an undisclosed safe house.

“Pelayo also takes care of expenses when the AFP chief or other officials travel here and abroad,” he added.

“All and everything confidential, Pelayo takes care of it, he takes care of anything,” he added.

Apart from Pelayo, documents also showed that “regular support” on a monthly basis was given to the AFP Commissioned Officers Club care of a certain retired Col. Estrada (P 18,873); five ASPP officers’ allowance (P50,000); MGen. Rosales and MGen. Santos (both retired, P50,000 each); SJS (P10,000); C, JOC (P15,000); and various amounts of not more than P20,000 a month for the Sgt-Major-AFP, the chief nurse, Defense Press Corps c/o PIO, the surgeon general, the provost marshal general, a certain Ms. Dela Cruz, Dr. Giacao, and Mr. La Madrid.

P50,000 was also allocated for a certain Admiral Rabago, followed by Col. Tabas (AFFLC) with P500,000.

The document also revealed that “Solgen lawyers” assigned at the AFP Central Command were allocated P90,000 quarterly, while the janitor/gardener assigned at the AFP chief’s quarters was supposedly getting P 60,000 every quarter.

Stressing that not the entire PCDA funds was pocketed by higher-ups, Rabusa said the allowances for “Solgen lawyers” were an additional form of assistance for their roles in helping soldiers and military officers who are facing administrative and criminal charges.

Also included was retired Gen. Lisandro Abadia, who received about P1 million in monthly support during the entire 14-month stint of former AFP chief Gen. Diomedio Villanueva.

Abadia was on the “payroll” as part of an internal arrangement with then AFP chief Villanueva, Rabusa said.

“Yes. It is Gen. Lisandro Abadia. It was an internal arrangement between Villanueva and Abadia,” Rabusa said, adding he did not ask Villanueva about details of the supposed support for Abadia since it was only his job to provide the money as ordered by the AFP chief.

Rabusa confirmed the “Gen. Abadia” included in the list of recipients from the AFP chief’s PCDA was the former AFP chief.

It was also from the PCDA that the alleged P5 million a month for Sec. Angelo Reyes and the subsequent P50-million send-off gift on his retirement were also sourced.

Abadia was the successor of Rodolfo Biazon when the latter retired as chief of staff during the administration of the late President Corazon Aquino.

Abadia himself was once embroiled in a controversy in the militar, over the alleged mismanagement of the funds and investment portfolio of the Armed Forces Retirement and Separation Benefits System (AFP-RSBS), investigated by the Senate Blue Ribbon committee under Aquilino Pimentel Jr. during the 11th Congress.

Rabusa also had documents to prove that Villanueva, then AFP chief, continued to support the office of the Secretary of the Department of National Defense (SND) with P1.765 million every month.

Apparently, that was when Reyes was appointed as Defense chief.

Asked about this, Rabusa said the allocation did not go to Reyes alone but to the so-called Defense and Intelligence Security Group under the defense department.

“This amount does not directly go to Sec. Reyes… but the DISG or the Defense and Intelligence Security Group. It is given to the chief or the group commander. If some amount was given to Reyes, I do not know (that),” Rabusa said.

The document titled “regular charges from the PCDA” outlined the regular support to the office of the Chief of Staff, P5 million; the Chief of Staff, P 4 million; Office of the Vice Chief of Staff, P1.5 million; Office of the Directorial Staff of the CSAFP, P1 million, and additional support for the vice chief of staff amounting to P 300,000.

Other support was also given to the AFP Public Information Office, Defense press corps, a gym instructor and even the janitor/gardener assigned at the official quarters of the AFP chief, known as the “White House.”

Filing of affidavits

Rabusa and his lawyer Malaya are scheduled to file before the Department of Justice (DOJ) today the former’s affidavits linking Reyes, Garcia, another comptroller and two former chiefs of staff to the multi-million pasalubong and pabaon systems in the Armed Forces.

Apart from Reyes and Garcia, Malaya said former AFP comptrollers Jacinto Ligot and former AFP chiefs Diomedio Villanueva and Roy Cimatu will be implicated by his client into massive conversion of funds at the military.

Malaya said the documents and his client’s testimony will be filed in connection with their application for the DOJ’s Witness Protection Program.

“It will be up to the government agency concerned, or other individuals, to pursue plunder charges, be it the Ombudsman or the Sandiganbayan,” Malaya said in an interview.

Rabusa and Malaya were mum on reports that the former budget officer may implicate former President and commander-in-chief Gloria Macapagal-Arroyo in the shenanigans in the Armed Forces.

“We just want to focus on what has been told at the Senate hearing,” Malaya said.

‘Not a single centavo’

Former senator and defense secretary Orlando Mercado said yesterday he never received a single centavo of the PCDA allocation when he supervised the military during the Estrada administration.

Mercado served as Defense secretary under former President Joseph Estrada but later defected and joined calls for him to step down in January 2001 along with other military generals.

He issued the statement as Rabusa warned that he would disclose more names as beneficiaries of cash gifts during his time as budget officer.

“Absolutely nothing. Never did I get or receive a single centavo from these ‘converted funds’. That’s why I wasn’t afraid to implement reforms at that time,” Mercado told The STAR.

“You cannot punch at somebody when something is tucked in your armpit,” he said in Filipino, referring to his campaign to rid the AFP of corruption that brought him at loggerheads with powerful generals at that time, including former Armed Forces chief Joselin Nazareno.

He recalled that he was the one who exposed the multi-billion peso mess at the defunct AFP-RSBS and the veterans’ fund, where the beneficiaries included those who fought in the war against the Spaniards.

“They (generals) wanted me removed,” Mercado said.

He recalled that several generals pleaded with Estrada to fire him but the former leader did not.

Mercado said Estrada did not interfere with his work to reform the military.

Several months after Estrada was toppled, he said he had a “heart-to-heart” talk with the former leader over drinks that lasted until morning where he thanked him for not interfering in his work as defense chief.

Estrada, Mercado said, disclosed that indeed the generals wanted him removed and admitted that at one time, he approved the purchase of bullets for use in the 2000 war against the Moro Islamic Liberation Front without him knowing, upon the requested of the military officers.

Mercado said the generals pressed upon Estrada that he would not have approved of the acquisition of bullets.

“I told Erap (Estrada’s nickname) that he could proud of the fact that he started reforms in the AFP,” he said.

Sunday mass

In preparation for today’s filing of affidavits before the justice department, Rabusa went to Sunday mass yesterday to ask for more strength and divine guidance.

Rabusa has refused to provide details of his affidavit pending the formal filing today before the DOJ, but he said it includes his shocking revelations at the Senate Blue Ribbon inquiry last Thursday, which had technically sent to the sidelights the inquiry into the circumstances of the plea bargaining agreement between Garcia and the special prosecutors.

Sources said Rabusa will also include in his affidavit what he knew about how the AFP top brass had converted portions of the United Nations-East Timor Fund for the Philippine mission.

Documents showed that about P102 million from the East Timor Fund were placed under “Command Related Activities,” which is different from the P480-million PCDA which were “cleared” through the three major services of the military and its key units.

Lifestyle check

Santiago said all former AFP chiefs, including her younger brother retired Gen. Benjamin Defensor, should be investigated in connection with the revelations of Rabusa that AFPchiefs had received millions in “gifts” drawn from military funds.

Aside from the Senate investigation, all former chiefs of staff since the time of former President Fidel Ramos, who also served as AFP chief during President Cory Aquino’s administration, should undergo lifestyle check to determine the extent of corruption in the military establishment. -With Paolo Romero