Charged for fraud

Ex-PCGG executives indicted for fraudulent compromise deal

THE Office of the Ombudsman ordered Thursday the indictment of former officials of the Presidential Commission on Good Government (PCGG) for approving a compromise agreement, which was disadvantageous to the government.

Those ordered to be charged before the Sandiganbayan were former PCGG commissioners Magtanggol Gunigundo, Reynaldo Guiao, Hermilo Rosal, Julieta Bertuben and Herminio Mendoza, together with Director Mauro Estrada.

Ombudsman Conchita Carpio Morales ordered the former government officials to be charged for violation of Section 3(g) of Republic Act 3019 (Anti-Graft and Corrupt Practices Act).

Records disclose that in July 1987, a petition for forfeiture of ill-gotten wealth was filed against former Muntinlupa mayor Maximino Argana.

During trial, Argana’s heirs offered a compromise settlement wherein the government would get 361.92 hectares, representing 75 percent of the total 481.78 hectares, while the heirs would retain the remaining 199.86 hectares or 25 percent of the land in dispute located in Famy and Pangil in Laguna.

In July 1998, the Sandiganbayan approved the compromise agreement.

In October 1998, the PCGG and the Office of the Solicitor General (OSG) under a new set of officials, filed a Motion to Rescind Compromise Agreement and to Set Aside Judgment by Compromise on the ground of fraud and insidious misrepresentation.

In 2000, the Sandiganbayan Third Division promulgated a resolution granting the Motion To Rescind.

Upon investigation by the Ombudsman Field Investigation Office, it was revealed that fraud and misrepresentation tainted the transaction wherein the parties deliberately omitted to disclose the property values when in fact, the parcel of property ceded to the government was valued at only P3.62 million (based on the Comprehensive Agrarian Reform Program valuation of P10,000 per hectare).

On the other hand, the market value of the property retained by the Argana heirs located in the urban area was valued at P2.4 billion based on the market valuation of P2,000 per square meter.

Morales underscored the Sandiganbayan’s observation that the agreement “is patently unfair” as it is “a virtual sellout.” “Due to the pronounced inequity in the distribution of properties between the government and the heirs under the agreement, the government stood to suffer substantial loss, hence, the contract was grossly and manifestly disadvantageous to the government,” the resolution said. SDR/Sunnex