Ombudsman investigators recommend the filing of charges vs. Jejomar Binay and 32 others for the allegedly anomalous sale of BSP property in Makati City

By Nelson Flores, Ll.B., MSCK

Ombudsman Building © http://thepoc.net

OMBUDSMAN investigators have recommended the filing of criminal and administrative charges against Boy Scouts of the Philippines President Jejomar Binay and 32 other people in connection with the allegedly anomalous sale of a BSP property in Makati City.

Specifically, the Ombudsman’s Field Investigation Office recommended the filing of the twin charges for violation of Section 3(e) and (g) of Republic Act No. 3019 (Anti-Graft and Corrupt Practices Act) against Binay, BSP Senior Vice President Wendel Avisado, BSP executives Del De Guzman, J. Miguel De Jesus, Enrique Lagdameo, Pedro Destura, Dale Corvera, Maximo Edralin, Jr., Remedios Petilla, Roberto Pagdanganan, Harmes Sembrano, Mildred Garay, Manuel Jose Dalipe, Leo Lasacar, Danilo Asiaten, Lutgardo Barbo, Jose Mari Pelaez, Ireneo Aquino, Jose Eduardo Delgado, Henry Dy, Jose Ma. Gastardo, Pepito Carpio, Nemesio Miranda, Jr., Jaime Semana, Wilfredo Chato, Alan Zulueta, Jorge Banal, Efren Edgard Dieta, Rodolfo Tamani, Von Carlo Yacob, J. Rizal Pangilinan, Salud Bagalso, and Amado Espino, Jr.

Charges for violation of Section 3(e) of RA 3019 were also recommended against Alphaland Makati Place, Inc. (AMPI) President Mario Oreta, former Bureau of Internal Revenue Officers: Teodoro Galicia, Authorized Revenue Official; Mark Anthony Panganiban, Revenue Officer; and Romeo Tomas, Group Supervisor.

An administrative complaint for Gross Neglect of Duty was also recommended to be filed against Binay, Avisado, De Guzman, Pagdanganan, Lasacar, Palaez, Delgado, Dy and Carpio.

The criminal and administrative charges will undergo preliminary investigation and administrative adjudication, respectively.

The FIO made its recommendation after it completed its fact-finding investigation into the sale of a BSP property along Malugay Street.

The Ombudsman investigators disclosed that on June 2, 2011, the BSP National Executive Board authorized the sale of the 10,000-square meter property to AMPI for a total contract price of PhP600,000,000.00.

The investigators said the sale was grossly undervalued considering that under the Omnibus Loan and Security Agreement between BSP and AMPI, the Malugay property was mortgaged for PhP1,750,000,000.00 which is indicative of the property’s true value.

Moreover, on 25 November 2015, AMPI commissioned Intech Property Appraisal, Inc. (Intech) to appraise the Malugay property and its improvements.

According to Intech, the land was valued at PhP1,700,000,000.00 (10,000 sqm x PhP170,000.00/ sqm) and its improvements valued at PhP8,426,541,915.00 or a total appraisal value of PhP10,126,542,000.00.

Meantime, the BIR officials were faulted for certifying that the sale was exempt from payment of capital gains tax which resulted in a loss of PhP63,000,000.00 in tax collection for the government.

According to the FIO, the grant of tax exemption from capital gains tax without obtaining a request for BIR ruling for the exemption was made with manifest partiality and evident bad faith causing undue injury to the government.

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