Metro Manila (CNN Philippines) — The Ombudsman filed charges against former Department of Social Welfare and Development (DSWD) Secretary Esperanza Cabral, in connection to the Priority Development Assistance Fund (PDAF) scam.
In a statement released to the media, the Office of the Ombudsman said Cabral is facing “two counts of violation of Section 3(e) of the Anti-Graft and Corrupt Practices Act, one count each for Malversation and Malversation thru Falsification of Public Funds.”
The Ombudsman also filed the same set of charges against current Cotabato Vice Governor, and former 2nd district North Cotabato representative, Gregorio Ipong.
Ombudsman field investigators discovered Ipong, through a Special Release Allotment Order in January 2007, instructed that his ₱9.4 million PDAF be given to DSWD for program implementation, through the Economic and Social Cooperation for Local Government Foundation, Inc. (ECOSOC) as a non-government organization (NGO) partner.
Ombudsman Conchita Carpio Morales said “Cabral, as then DSWD Secretary, prepared, reviewed and entered into the Memorandum of Agreement governing the implementation of the projects.”
The fund was supposedly allotted for healthcare worth ₱400,000, and livelihood assistance worth ₱9 million, targeting the marginalized sector of Ipong’s constituents, the Ombudsman said.
Ipong’s ghost projects were verified by the Ombudsman through certifications and affidavits from local officials, and the lack of receipts from the supposed benefactors of the fund.
“Instead of using the PDAF disbursements received by them to implement the livelihood projects, respondents diverted these sums amounting to ₱9.4 million to their own pockets,” Morales said.
The Ombudsman said that based on the evidence, ECOSOC had no financial capability to implement the project. Supposed medicine supplier Ace Pharmaceuticals also denied engaging in any business transaction with the NGO.
ECOSOC issued a letter to the Commission of Audit, denying any knowledge of the supposed transaction with the DSWD.
DSWD Undersecretary Mateo Montaño, Chief Accountant Leonila Hayahay, and ECOSOC head Roberto Solon were also charged in Sandiganbayan.
“The role played by each of them was so indispensable to the success of their scheme that, without any of them, the same would have failed,” Morales said.
The Ombudsman said the respondents also violated the Government Procurement Reform Act.
Ipong and Montaño were also charged with grave misconduct by the Ombudsman.
The Ombudsman wants the two respondents dismissed from service, and perpetually disqualified from holding public office, with forfeiture of all retirement benefits.
The penalty for separation from service is convertible to a fine equivalent to the respondents’ annual salary.
This is Ipong’s second case in connection with the PDAF, after being charged for the misuse of his 2007 ₱10 million fund coursed through the Aaron Foundation, Inc.
He was earlier charged with violation of Section 3(e) of R.A. No. 3019 and malversation.
