Sandiganbayan convicts 3 former La Union water district execs for graft

SAN FERNANDO CITY, La Union -- The Sandiganbayan First Division has convicted three former officials of the Metro La Union Water District (MLUWD), now known as the Metro San Fernando Water District (MSFWD), of their graft charge involving the irregular disbursement of checks to selected employees, including themselves, in the amount of P7.2 million.

Former general manager Felipe Picazo, administrative division manager Virginia Laroco, and cashier Evangelina Flores were found guilty beyond reasonable doubt of violating Section 3(e) of R.A. 3019 or the Anti-Graft and Corrupt Practices Act.

They were sentenced to suffer the indeterminate penalty of imprisonment of six years and one month as minimum up to 10 years as maximum, with perpetual disqualification from holding public office.

They were likewise directed to pay jointly and severally MLUWD the sum of P7,246,760.28 by way of actual damages.

Their charges stemmed from the undue advantage given by the accused to selected MLUWD employees by paying out 231 checks in their names, even with unaccomplished or no disbursement vouchers or supporting documents. As a result, a total of P7,246,760.28 were given out “in wanton disregard of the prescribed disbursement process pursuant to accounting and auditing rules, to the damage and prejudice of the government,” the charge sheet against them read.

In its ruling, the anti-graft court said that the prosecution has adequately proved the guilt of the accused since the 231 checks subject of this case were presented.

Their jobs required them to prepare, examine, and approve the release and payment of checks, and it was their duty to ensure that the money from public coffers would be used for a legal purpose.

However, the court said that the three accused illegally benefited from the funds of the water company by drawing the checks in their favor and for a few other employees despite a previous advisory from the Commission on Audit (COA) that these were not allowed.

“Truth to tell, the subject funds were merely made to appear as COLA when the actual intention of the accused was simply to bilk the company of its limited public funds for their pure selfish interests,” the decision stated.

Under the law, the court explained that COLA is an allowance not intended to reimburse expenses incurred by officials and employees of the government in the performance of their official functions. It is not payment in consideration of the fulfillment of official duty, since it is already incorporated in the standardized salary rates of government officials.

In this case, the three accused “raked off” public funds and passed these off as allowances that are way more than their monthly salaries.

Picazo tried to wash his hands over the matter by saying that he pre-signed the checks before it could be accomplished and issued by Laroco and Flores. However, the court said that this action constitutes as gross inexcusable negligence, which nonetheless makes him liable for graft.

“It is therefore unthinkable for the accused to claim, though without success, that such blatant transgression of the law could have been committed and went on undetected during his watch over a long period of time,” the court said.

The 31-page decision was written by Associate Justice Edgardo Caldona with the concurrence of Chairperson Efren De La Cruz and Associate Justice Geraldine Faith Econg.