GMA, Romulo indicted for misuse of OWWA funds

by Ina Reformina, ABS-CBN News

Duque, ex-OWWA chief also included in DOJ resolution

MANILA, Philippines (4th UPDATE) - Former President and now Pampanga Rep. Gloria Macapagal Arroyo now faces another looming legal battle after the Department of Justice (DOJ) recommended the filing of technical malversation charges against her for alleged misuse of over P546 million in Overseas Workers Welfare Administration (OWWA) funds during her term.

In a 13-page resolution dated January 4, 2012 signed by Sr. Asst. State Prosecutors Theodore Villanueva, Lilian Doris Alejo, and Elizabeth Santos, and approved by Prosecutor General Claro Arellano, the DOJ said evidence presented by complainant, former Solicitor General Francisco Chavez, "support a finding of probable cause for the crime of technical malversation" againt Mrs. Arroyo, former Foreign Affairs Secretary Alberto Romulo, former Health Secretary and now Civil Service Commission (CSC) chairman Francisco Duque III, and former OWWA Administrator Virgilio Angelo.

Chavez filed a complaint for plunder and technical malversation against respondents plus 8 others in connection with the transfer of some P530.38 million in OWWA funds to the Philippine Health Insurance Corporation (PHIC/Philhealth) in February, 2004 -- 2 months prior to the May 2004 presidential elections where Mrs. Arroyo ran and subsequently won-- and for alleged questionable acquisitions by Philippine diplomatic posts in the Middle East and government's humanitarian assistance to Iraq amounting to hundreds of thousands of dollars.

In recommending only the filing of charges for technical malversation which is a violation of Article 220 of the Revised Penal Codr, the justice department stressed that the offense exists "when the offender is a public officer who is accountable for public funds and he applies the funds to a purpose different from that which they were originally appropriated by law or ordinance."

"[R]espondents GMA(Mrs. Arroyo), Romulo, Angelo and Duque III knowingly acted in complicity with each other in proposing, requesting, approving, implementing and releasing OWWA funds for purposes other than for which they were intended," the resolution reads.

Transfer of OWWA Medicare Fund to Philhealth

The DOJ said Duque wrote Mrs. Arroyo on November 20, 2002 proposing the transfer of the OWWA Medicare Fund to Philhealth based on Republic Act (RA) No. 7875 (Philhealth Act) "impliedly" repealing Executive Order (EO) No. 195 which had previously authorized OWWA to administer the Medicare Program of overseas Filipino workers (OFW).

Mrs. Arroyo, the DOJ said, ordered the assailed transfer of the funds through her issuance of EO No. 182 dated February 14, 2003. Duque, however, noted the non-publication of EO No. 182 and non-consultation of concerned migrant groups and wrote Romulo on January 6, 2004 requesting the withdrawal of the executive issuance.

In spite of this, the DOJ said EO No. 182 "remained in full force and effect until January 25, 2005" and that in the interim period that it was in effect, the OWWA Board of Trustees issued Resolution No. 005 dated February 4, 2004, authorizing the transfer of the OWWA Medicare funds to Philhealth.

For these circumstances, Mrs. Arroyo, Romulo, and Duque are recommended charged for technical malversation for P530.38 million.

Duque says charge is baseless

Meanwhile, Duque believes there is no basis to file technical malversation charges against him and several others for the alleged misuse of over OWWA funds during the Arroyo administration.

Duque said the charge is baseless because the transfer of the OWWA Medicare Fund to Philhealth is based on Republic Act (RA) No. 7875, which authorizes Philhealth to integrate all Medicare systems in the country.

"There is really no factual basis whatsoever. All the monies are accounted for and all checks properly receipted. The money from OWWA Medical Program went to Philhealth straight and the funds were used directly for the benefit of OFWs," he told ANC's "On the Scene" on Wednesday.

He said the transfer occurred in 2005, almost a year after the 2004 presidential election. He said the Commission on Audit (COA) had no adverse findings on the money transfer.

Duque said he will talk to his lawyers to move for the dismissal of the case.

Palace welcomes charges

Malacañang, meanwhile, welcomed the DOJ's recommendation to file malversation charges over the OWWA Medicare fund misuse.

Presidential Spokesperson Edwin Lacierda defended the downgrade of the case from plunder to malversation, saying it is better that they file a case they can convict rather than a case that will fail.

Arroyo's spokeswoman, Elena Bautista Horn, declined to comment on the matter since they have yet to receive a copy of the DOJ recommendation.

Chavez, meantime, said the DOJ erred in not charging Arroyo and the others for plunder.

"I haven't received the resolution yet, but it looks like a technical error to charge only technical malversation. In technical malversation, public funds are involved. OWWA funds are private funds held by government in trust. It's misuse...by co-mingling it with public funds is plunder," the former solicitor general said.

-- With reports from RG Cruz, ABS-CBN News; David Dizon, ABS-CBNnews.com; ANC