Miriam: OWWA’s Smokey Mountain investment illegal - Malaya 08.09.2006
SEN. Miriam Defensor-Santiago yesterday insisted that the investment made by Overseas Workers Welfare Administration (OWWA) in a Smokey Mountain project in 19095 was illegal and that President Fidel V. Ramos should be held liable.
Santiago said the investment itself was in violation of Department of Finance (DOF) circular, which instructs all government corporations to park their funds in government trust accounts and securities such as treasury bills and treasury notes.
She said Ramos should be investigated by the Senate labor committee to determine his criminal culpability, being the approving authority.
Commission on Audit (COA) resident auditor Gemiliano Maloles testified during Monday’s hearing on the "missing" OWWA funds that the welfare agency invested some P500 million in the Smokey mountain project, which was guaranteed by the state-owned Home Guaranty Corporation (HGC).
Maloles said the principal amount of P500 million has been returned to OWWA by HGC.
But he said some P500 million in interest earnings has yet to be collected.
Santiago, citing COA audit reports, said OWWA actually lent P563 million to the Smokey Mountain Project, which was undertaken by R-II Builders of businessman Reghis Romero.
She said the investment should have ballooned to P835 million in 1999 with an annual interest yield of 8.5 percent.
She also said OWWA has P550.86 million more to collect from HGC as accumulated interest based ion the 2004 COA report.
Santiago said the amount remains unpaid and, thus, resulted to losses on the part of the government.
"HGC defaulted in complying with its guarantee, and President Ramos failed to give a definite timeframe to fully settle this amount," she said.
She said Ramos approved the OWWA investment and the insurance cover given by HGC.
The Senate committee on labor has decided to refer the issuance of warrants of arrest on cabinet officials who boycotted Monday’s hearing to its
legal department. It was the second time that no government official attended the Senate hearing chaired by Sen. Jinggoy Estrada.
The Senate panel is divided on the proposal with Senators Joker Arroyo and Bong Revilla calling for a halt in the probe until evacuation work in Lebanon is finished.
Estrada said the hearing would be practically suspended since no invitation to resource persons would be issued. – Dennis Gadil
Santiago said the investment itself was in violation of Department of Finance (DOF) circular, which instructs all government corporations to park their funds in government trust accounts and securities such as treasury bills and treasury notes.
She said Ramos should be investigated by the Senate labor committee to determine his criminal culpability, being the approving authority.
Commission on Audit (COA) resident auditor Gemiliano Maloles testified during Monday’s hearing on the "missing" OWWA funds that the welfare agency invested some P500 million in the Smokey mountain project, which was guaranteed by the state-owned Home Guaranty Corporation (HGC).
Maloles said the principal amount of P500 million has been returned to OWWA by HGC.
But he said some P500 million in interest earnings has yet to be collected.
Santiago, citing COA audit reports, said OWWA actually lent P563 million to the Smokey Mountain Project, which was undertaken by R-II Builders of businessman Reghis Romero.
She said the investment should have ballooned to P835 million in 1999 with an annual interest yield of 8.5 percent.
She also said OWWA has P550.86 million more to collect from HGC as accumulated interest based ion the 2004 COA report.
Santiago said the amount remains unpaid and, thus, resulted to losses on the part of the government.
"HGC defaulted in complying with its guarantee, and President Ramos failed to give a definite timeframe to fully settle this amount," she said.
She said Ramos approved the OWWA investment and the insurance cover given by HGC.
The Senate committee on labor has decided to refer the issuance of warrants of arrest on cabinet officials who boycotted Monday’s hearing to its
legal department. It was the second time that no government official attended the Senate hearing chaired by Sen. Jinggoy Estrada.
The Senate panel is divided on the proposal with Senators Joker Arroyo and Bong Revilla calling for a halt in the probe until evacuation work in Lebanon is finished.
Estrada said the hearing would be practically suspended since no invitation to resource persons would be issued. – Dennis Gadil
posted by brodkaster43 at Miyerkules, Agosto 09, 2006
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