Senate arrest warrants poised on PCGG officials - Malaya 09.12.2006

BY DENNIS GADIL

THE Senate committee on government corporations and public enterprises yesterday moved to cite in contempt officials of the Presidential Commission on Good Government (PCGG) and Philcomsat Holdings Corp. (PHC) for snubbing its hearing on the PHC fund mess for the third time.

"I move that this committee cite all those officials mentioned in contempt of the Senate and direct the Senate sergeant-at-arms, with the assistance of the law enforcement units of the Republic, to cause their arrest and bring them here," said Sen. Juan Ponce Enrile, a senior committee member.

The PCGG officials are chairman Camilo Sabio and commissioners Ricardo Abcede, Nicasio Ponti, Tereso Javier and Narciso Nario.

The PHC officials are board chairman Benito Araneta, director and vice president Philip Brodett, treasurer Manuel Andal and directors Luis Lokin Jr. and Julio Jalandoni.

PHC director Guy de Leon, assistant treasurer Honorio Poblador, accounting head Johnny Tan, and external auditor Virgilio Santos were not included in the arrest order despite their absence yesterday.

Only Philcomsat and Philippine Overseas Telecommunications Corp. (POTC) director Victor Africa and PHC vice president Enrique Locsin showed up at the hearing.

Sen. Richard Gordon, committee chair, said his panel and the committee on public services of Sen. Joker Arroyo expect Senate President Manny Villar to soon sign the arrest warrants.

"The motion would be circulated among the members for signatures. Upon signing of the resolution, the motion will be enforced," Gordon said.

As of 6 p.m., 14 senators have signed the motion directing sergeant-at-arms Maj. Gen. Jose Balajadia to enforce the order.

Arroyo supports the move of the Gordon panel.

"It’s all up to him. I told him already," he said.

Both panels need seven signatures each from their members to secure a majority.

Enrile said the issuance of arrest warrants was within the prerogative of the Senate to exercise its "coercive powers."

"The separation of powers should be obeyed and constitutionalism upheld. They may seek relief from the Supreme Court, they may do so," he said.

Enrile, whose family indirectly and partially owns PHC, said the Senate could not just sit down and take no action.

Enrile said Executive Order 1 (EO) which created the PCGG should be amended to lift the "immunity" of its officials from being subjected to congressional hearings. "That immunization provision is unconstitutional," he said.

The PCGG officials led by Sabio have invoked EO 1 in skipping the Senate hearings.

Sabio told the committee in a letter that they are invoking the EO 1’s provision which says 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.

Gordon said there was also a need to re-assess the performance of sequestered corporations to determine if the PCGG has been faithful to its mandate.

In last week’s hearing, Erlinda Bildner, a stockholder of PHC, said the "dissipation" of the company’s finances continues even while a Senate probe into the corporations’ alleged fund diversion is going on.

"Since the last hearing, P10 million got out or was spent on advances by PHC to POTC and Philcomsat," Bildner, who sits in the PHC board, said.

Bildner, who is also president of Philippine Communications Satellite Corp. (Philcomsat), which has a stake in PHC, said the P10 million advances did not pass through the approval of the PHC board.

She said the questionable advances occurred between March 31 and June 30, 2006. The Gordon panel held its first hearing last May.

She said a P1.6-million 2006 model Toyota Camry was also purchased by the PHC for Abcede who sits in the PHC. The purchase order was originally under the name of Abcede but the name was crossed out and was replaced with the handwritten name of PHC.

Bildner said the luxury vehicle, which was acquired on Aug. 12, 2006, was delivered to Abcede’s residence at No. 120 Amorsolo st., Makati City.

The purchase was processed through Tan.

PHC is a subsidiary of the Philcomsat, which in turn is a subsidiary of POTC as the parent firm. The government owns 28 percent of PHC by virtue of its 35 percent stake in Philcomsat.