Supreme Court (PNA photo by Yancy Lim)
MANILA – The Supreme Court (SC) has affirmed the immediate ban on Surigao del Sur 1st District Rep. Prospero Pichay Jr. from holding any position in the government.
The perpetual disqualification had been an accessory penalty imposed on the former lawmaker in connection with the alleged unlawful investment by the Local Water Utilities Administration (LWUA) to a thrift bank in 2009 amounting to PHP780 million when he was LWUA head.
The SC Public Information Office (PIO) said the ruling was made by the Court en banc session last Tuesday which ruled that a petition filed by a political rival of Pichay is moot and dismissed the same.
The case stemmed from LWUA’s decision to purchase 60 percent of shares of the Express Savings Bank Inc. (ESBI) for PHP80 million without prior approval of the Monetary Board (MB).
LWUA, then under Pichay, also deposited PHP300 million in ESBI after it was designated as its depository bank, as well as transferred PHP400 million in capital infusion, also without prior approval from MB.
The investment was found to be disadvantageous to the government as no income had been realized by LWUA from such investment and the PHP400 million capital subscription was not supported by any memorandum of agreement or certificate of investment which would have protected LWUA's interest.
In August 2022, the Sandiganbayan Fourth Division also upheld its conviction on Pichay sentencing the former solon to 10 years each for the three counts of graft charges with perpetual disqualification from public office also in connection with the anomalous deal. (PNA)
