“Raid of public funds”
The Philippines watchdog group Volunteers Against Crime and Corruption has filed suit with the country’s Department of Justice claiming that former officials of the state-run regulator of plunder for falsely leasing the Army Navy Club building in Manila. That building is owned by the city.
Named in the suit were former PAGCOR Chairman Cristino “Bong” Naguiat and former board members Jose Tanjuatco, Enriquito Nuguid, Eugene Manalastas, George Sarmiento, Milagros Pauline Visque, Ramon Jose Jones, Romeo Cruz Jr., Annalyn Zohlman and Kathleen Delantar. Named as respondent in the case was Manuel Sy, owner of Vanderwood Management Corp., which was awarded a P3.2 million lease contract from PAGCOR in March 2015.
Auditors called the award “highly irregular and anomalous” because the location named in the contract, inside the government-owned Museo Maynila Complex, is non-existent.
“The amount of P234 million (US$4.8 million) was paid to VMC representing 12 months advance rental and six months security deposit at P13 million per month pursuant to the lease contract, despite the fact that the premises to be leased was not existing at the time of the execution of the contract,” the complaint read. “Considering that there was no leased premises to speak of, the disbursement of P234 million was irregular and, therefore, disallowable in audit pursuant to Commission on Audit Circular No. 2012-003 dated October 29, 2012,” it added.
The VACC also said the bidding process was questionable, with the bidding committee qualifying VMC even though it did not submit all the necessary documents and did not comply with all the technical requirements of the bid. The group said the money paid by PAGCOR to the VMC constituted a “raid in the public funds.”
