PCGG, Philcomsat officials snub Senate - Malaya 09.07.2006
GOOD government officials and executives of Philcomsat Holdings Corp. (PHC) yesterday snubbed a Senate hearing into the alleged dissipation of corporate funds, prompting Sen. Juan Ponce Enrile to move that they be cited in contempt and arrest orders issued against them.
No-shows were Presidential Commission on Good Government chair Camilo Sabio; PCGG commissioner Ricardo Abcede; Manuel Nieto Jr., president and chief executive officer of PHC; Benito Araneta, PHC chair; Victor Africa, Philcomsat/ Philippine Overseas Telecommunications Corp. (POTC) chair; Enrique Locsin, PHC president and acting board chair; and Philip Brodett, PHC director.
Araneta was represented by his counsel, former justice secretary Serafin Cuevas.
Sen. Richard Gordon, chair of the Senate committee on government corporations and public enterprises, substituted Enrile’s motion with "show cause" orders.
"If they still continue to snub the committee, we will have no recourse but to order their arrest and detain them here," he said.
Gordon’s panel has joined the Senate committee on public services of Sen. Joker Arroyo in conducting the probe.
Enrile said he would make the same motion next week if the PCGG and PHC officials continued to defy the panel’s summons.
Abcede and Sabio invoked Executive Order 1 in skipping the Senate hearings.
EO 1 provides that "No member or staff of the Commission shall be required to testify or produce evidence in any judicial, legislative or administrative proceeding concerning matters within its official cognizance."
Sabio said the provision was upheld by Chief Justice Claudio Teehankee in an April 1988 ruling.
Cuevas said he accepted Araneta’s invitation to be his counsel two days ago. He said would have not attended had he known that his client would not be around.
In the hearing, Philcomsat president Erlinda Bildner said the dissipation of the company’s finances continues even as the Senate is investigating.
"Since the last hearing, P10 million got out or was spent on advances by PHC to POTC and Philcomsat," said Bildner who sits in the PHC board.
Bildner said the P10 million in advances did not have the approval of the PHC board.
She said the release of the questionable advances was from March 31 to June 30.
The Gordon panel held its first hearing last May.
Bildner said a P1.6 million 2006 model Toyota Camry was purchased by the PHC for Abcede who sits in the board.
She said the purchase order was originally under the name of Abcede but the name was crossed out and replaced with the handwritten name of PHC.
Bildner said the luxury vehicle, which was acquired on Aug. 12, was delivered to Abcede’s residence at No. 120 Amorsolo st., Makati City.
The purchase was processed through Johnny Tan, assistant vice president and chief accountant of PHC.
Bildner said apart from the luxury vehicle and the P10 million advances, some P300,000 worth of manager’s checks were also issued to "individuals who have nothing to do with PHC."
Bildner said the corporation, which makes money through money market placements, lost about P22 million in 2005.
Bildner said Abcede’s group used the name of Nieto in the "plunder" of the corporation.
"They’ve done this claiming that this was under the auspices of Ambassador Nieto. This is a sham," she said.
Bildner also asked the Senate panel to cause the freezing of funds of the PHC while the issues among the warring PHC shareholders are not resolved.
"We’re afraid between now and then, a few more Toyotas could be purchased," she told the Senate committee.
Gordon said the panel could introduce legislation but not order the freezing of PHC’s funds.
"You have to address it to the SEC (Securities and Exchange Commission)," he said.
Gordon nevertheless said PHC and PCGG officials should have at least observed "delicadeza" and exercised restraint in spending PHC funds while the investigation is going on.
The hearing resumes Monday.
PHC is a subsidiary of the Philcomsat, which in turn is a subsidiary of POTC. Government owns 28 percent of PHC by virtue of its 35 percent stake in Philcomsat. – Dennis Gadil
No-shows were Presidential Commission on Good Government chair Camilo Sabio; PCGG commissioner Ricardo Abcede; Manuel Nieto Jr., president and chief executive officer of PHC; Benito Araneta, PHC chair; Victor Africa, Philcomsat/ Philippine Overseas Telecommunications Corp. (POTC) chair; Enrique Locsin, PHC president and acting board chair; and Philip Brodett, PHC director.
Araneta was represented by his counsel, former justice secretary Serafin Cuevas.
Sen. Richard Gordon, chair of the Senate committee on government corporations and public enterprises, substituted Enrile’s motion with "show cause" orders.
"If they still continue to snub the committee, we will have no recourse but to order their arrest and detain them here," he said.
Gordon’s panel has joined the Senate committee on public services of Sen. Joker Arroyo in conducting the probe.
Enrile said he would make the same motion next week if the PCGG and PHC officials continued to defy the panel’s summons.
Abcede and Sabio invoked Executive Order 1 in skipping the Senate hearings.
EO 1 provides that "No member or staff of the Commission shall be required to testify or produce evidence in any judicial, legislative or administrative proceeding concerning matters within its official cognizance."
Sabio said the provision was upheld by Chief Justice Claudio Teehankee in an April 1988 ruling.
Cuevas said he accepted Araneta’s invitation to be his counsel two days ago. He said would have not attended had he known that his client would not be around.
In the hearing, Philcomsat president Erlinda Bildner said the dissipation of the company’s finances continues even as the Senate is investigating.
"Since the last hearing, P10 million got out or was spent on advances by PHC to POTC and Philcomsat," said Bildner who sits in the PHC board.
Bildner said the P10 million in advances did not have the approval of the PHC board.
She said the release of the questionable advances was from March 31 to June 30.
The Gordon panel held its first hearing last May.
Bildner said a P1.6 million 2006 model Toyota Camry was purchased by the PHC for Abcede who sits in the board.
She said the purchase order was originally under the name of Abcede but the name was crossed out and replaced with the handwritten name of PHC.
Bildner said the luxury vehicle, which was acquired on Aug. 12, was delivered to Abcede’s residence at No. 120 Amorsolo st., Makati City.
The purchase was processed through Johnny Tan, assistant vice president and chief accountant of PHC.
Bildner said apart from the luxury vehicle and the P10 million advances, some P300,000 worth of manager’s checks were also issued to "individuals who have nothing to do with PHC."
Bildner said the corporation, which makes money through money market placements, lost about P22 million in 2005.
Bildner said Abcede’s group used the name of Nieto in the "plunder" of the corporation.
"They’ve done this claiming that this was under the auspices of Ambassador Nieto. This is a sham," she said.
Bildner also asked the Senate panel to cause the freezing of funds of the PHC while the issues among the warring PHC shareholders are not resolved.
"We’re afraid between now and then, a few more Toyotas could be purchased," she told the Senate committee.
Gordon said the panel could introduce legislation but not order the freezing of PHC’s funds.
"You have to address it to the SEC (Securities and Exchange Commission)," he said.
Gordon nevertheless said PHC and PCGG officials should have at least observed "delicadeza" and exercised restraint in spending PHC funds while the investigation is going on.
The hearing resumes Monday.
PHC is a subsidiary of the Philcomsat, which in turn is a subsidiary of POTC. Government owns 28 percent of PHC by virtue of its 35 percent stake in Philcomsat. – Dennis Gadil
posted by brodkaster43 at Huwebes, Setyembre 07, 2006
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