Error sparks scam
Employee breaks bad It was just a simple clerical error and the amount involved was just P20,000. But it started a multimillion scam that we now consider as one of the biggest inside jobs here in the PSC
A mere clerical error sparked what is now considered as one of the biggest scams in the Philippine Sports Commission (PSC).
Speaking on condition of anonymity due to the sensitivity of the issue, a PSC insider revealed to Daily Tribune that the suspect — Paul Ignacio — stumbled into the alleged P14-million heist after committing a simple blunder in preparing the payroll of the members of the national team.
Ignacio, an information technology expert, is a staff at the PSC personnel department tasked to prepare the monthly payroll of more than 1,000 members of the national team.
Once the NSA (national sports association) affairs approves the attendance of athletes and coaches, it would be forwarded to the assistance and coordination division to determine the corresponding amount per person before being sent to the personnel department that would draft the payroll.
From there, Ignacio would “doctor” the list by adding the names of inactive athletes and coaches with his account number.
The source said the PSC’s partner bank — the Landbank of the Philippines — doesn’t require account names in the payroll system. All it needs are the account numbers and the amount to be entered into the system, which Ignacio took advantage of while he was preparing the payroll.
“He took advantage of that loophole,” the source, a veteran employee in the PSC, said.
“When we asked him, he said it all started when he made an error in entering an account number of an athlete in the payroll system. It was the wrong number and the system didn’t accept it. To solve it, he entered his own account number, which was easily accepted by the system.”
“It was just a simple clerical error and the amount involved was just P20,000. But it started a multi-million scam that we now consider as one of the biggest inside jobs here in the PSC.”
We believe he already transferred it to different accounts.
The source said the alleged scam, where Ignacio entered the names of inactive athletes and coaches next to his bank account in the payroll system, dragged on until he became a millionaire.
In fact, he was soon able to establish businesses like a water-refilling station, online business and motorcycle supplies store on top of two vehicles.
“He was also able to enter large amounts like around P90,000 for one athlete alone when the PSC board decided that the salaries and allowance would be retroactive,” the source said, adding that it eventually led to his downfall.
“When he tried to put in around P450,000 to his account using the names of six inactive athletes and coaches for the month of June, the bank suddenly became suspicious and immediately informed the PSC about this ‘unusual payroll transaction.’”
The source said Ignacio still pushed through with the alleged scam in the latest payment period, but Landbank declined it after his payroll account had been red-flagged.
All in all, he reportedly amassed more than P14 million in five years. At one point, he was withdrawing P50,000 a day, a sum that is too big for an ordinary government employee.
“In fact, when the NBI (National Bureau of Investigation) checked his own payroll account, nothing was there. We believe he already transferred it to different accounts,” the source said.
PSC deputy executive director Atty. Guillermo Iroy confirmed the veracity of the source’s claim, saying that the PSC board of commissioners headed by chairman William “Butch” Ramirez and officer-in-charge Ramon Fernandez already approved the filing of criminal complaints like qualified theft and falsification of public document in relation to cyber crime law on Ignacio.
They have also created a five-man fact-finding body to dig deep and check if other employees are also involved in this scam.
“We are looking at all angles, including the COS (contract of service) which he also handled before,” said Iroy, stressing that Ignacio also handled the payroll of contractual employees in the past.
“If we would prove that he took public fund, we would garnish his assets and press criminal charges against him. We have already created a fact-finding body that is digging deep into this scam.”
“Although he said he operated alone, we’re still checking if there are other employees involved. We might conduct lifestyle check or something. Let’s see.”