Metro Manila (CNN Philippines) — The Sandiganbayan on Wednesay dismissed malversation and graft charges against Senator Sherwin Gatchalian.
Gatchalian, who was then Valenzuela representative, faced charges over the alleged anomalous purchase of a thrift bank in 2009.
The anti-graft court’s Fourth Division found no probable cause to compel Gatchalian to stand trial over the Local Water Utilities Administration’s (LWUA) acquisition of Express Savings Bank Inc. (ESBI), a local thrift bank based in Laguna and owned by the Gatchalian family, Wellex Group Inc., and Forum Pacific Inc.
The Ombudsman says the deal caused the government about 80 million pesos in losses. LWUA made the acquisition despite warnings by the Bangko Sentral ng Pilipinas (BSP) and the Department of Finance (DOF) about the bank’s poor financial condition.
In a statement, Gatchalian said he was never involved in the day-to-day operations of the ESBI.
Malversation raps dropped
The court also dropped charges, except those for graft, against the senator’s brother Valenzuela Representative Weslie Gatchalian, their brother Kenneth, their parents, and former LWUA head Prospero Pichay Jr.
The Gatchalians were sued in this case as private individuals.
The court explained those charged could not be considered as accountable public officers who had custody over funds supposedly misused, a necessary element to warrant a malversation offense.
The court cites a Supreme Court ruling, which defines what an “accountable officer” is, such as a cashier, treasurer, and collector, among others.
The court said, the absence of at least one public accountable officer “leads to the conclusion that there is insufficient evidence to support a finding of probable cause in the alleged malversation.”
