2 SC rulings forewarn ‘alalays’ in corruption

Romulo Neri, former National Economic and Development Authority director general, has lost all leave credits and retirement benefits from the government. He is now barred from public service.

The Supreme Court recently upheld the Ombudsman’s findings of sleaze in the 2007 national broadband network project with China’s ZTE Corp. Neri’s “grave misconduct” was affirmed, and the Court of Appeals verdict of “simple misconduct” reversed.

“The elements of corruption and clear intent to violate the law are quite patent,” the SC Third Division ruled. “(Neri) actively brokered for ZTE’s bid by using his public position despite knowing the corruption involved in the project. There is no cogent reason to justify the lowering of liability to simple misconduct.”

“Petitioner Neri is dismissed from service,” wrote Justice Marvic Leonen, division chairman. “(This) includes the necessary penalties of cancellation of eligibility, forfeiture of leave credits and retirement benefits, and perpetual disqualification from reemployment in the government service.”

The verdict dated July 5 was publicized last week. Justices Ramon Paul Hernando, Henri Jean Inting, Ricardo Rosario and Jhosep Lopez concurred.

Neri had introduced whistle-blower Rodolfo Lozada Jr. to then-Comelec chairman Benjamin Abalos. The CA found Abalos “highly interested in pursuing a telecommunications project with the government” under then-president  Gloria Macapagal-Arroyo.

Lozada prepared the NBN-ZTE technicals. Neri next processed the approval amid allegations of a P200-million bribe offer from Abalos. Finding misconduct, the Ombudsman in 2009 suspended Neri for six months without pay. While Neri did not solely approve the deal, he “was deemed to have mediated – through the NEDA – between Abalos and ZTE.” Deemed improper were Neri’s attendance in conferences and golf games hosted by ZTE execs and Abalos.

Abalos and Arroyo were indicted for graft at the Sandiganbayan. They were acquitted in May and September 2016, respectively. Dismissed were testimonies of P10-billion kickback in the P17-billion project, and in Abalos and Arroyo’s lunches and golfing at ZTE’s Shenzhen headquarters while the deal was being processed. Arroyo was NEDA chairman and Neri the vice.

Before joining the Arroyo Cabinet Neri was head of the powerful Congressional Planning and Budget Office under three successive House Speakers.

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The Anti-Money Laundering Council has been ordered to divulge bank transactions related to the 2009 sale of used, overpriced helicopters as brand-new to the Philippine National Police. The AMLC records are pertinent to the Sandiganbayan case that former first gentleman Mike Arroyo owned the aircraft.

The AMLC had twice refused the Sandiganbayan order to open its files, and ran to the SC. The Third Division dismissed the agency’s petition, seeing no abuse of discretion by the Sandiganbayan.

“Instead of avoiding compliance with the subpoena, [AMLC] must firmly perform its mandate as an investigatory body and independent financial intelligence unit,” Justice Leonen ruled. Justices Hernando, Inting, Edgardo delos Santos and Lopez agreed with the February verdict released last week.

On trial at the Sandiganbayan are Arroyo and several police generals. Lionair president Archibald Po testified that Arroyo purchased five choppers from him in 2003-2004. He was instructed in 2009 to transfer two units to Manila Aerospace Trading Products, he swore. From records, Maptra then offered the second-hand choppers to the police. Arroyo denied any part.

Po said Arroyo deposited partial payment to Lionair’s account with Union Bank. To verify these, the Office of the Special Prosecutor presented a bank official. The latter said that since the account was closed in 2006 and the files discarded, the Sandiganbayan can seek recourse with the Bangko Sentral or AMLC. On the OSP’s request, the Sandiganbayan ordered AMLC Executive Director Julia Bacay-Abad to open the records. Po waived the right to secrecy of Lionair’s account under the Foreign Currency Deposit Act.

The AMLC twice moved to quash the subpoena. The Sandiganbayan rejected the motions, prompting AMLC to go to the SC.

The AMLC argued that “it is prohibited by law to disclose the relevant bank records of Lionair ... (because) confidential.” Cited was Section 9(c) of the Anti-Money Laundering Act, that “Financial institutions and their officers be prohibited from disclosing covered and suspicious transaction reports, or ‘tipping-off’ that a case is being filed.”

The SC found the claim untenable, saying the AMLC is not among the institutions covered by the ban. AMLC is “not merely a repository of reports and information.”

“It would be antithetical to its own functions if (AMLC) were to refuse to participate in prosecuting anti-money laundering offenses by taking shelter in the confidentiality provisions of the Anti-Money Laundering Act,” the SC added. More so since Lionair submitted a written permission to open its accounts.

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