Valenzuela Rep. Weslie Gatchalian, 11 others post bail for multiple cases over P80-M bank deal

Incumbent Valenzuela City Rep. Weslie Gatchalian has posted bail for his criminal cases in connection with the alleged anomalous P80-million acquisition of his family-owned thrift bank by the Local Water Utilities Administration (LWUA).

Based on the record of the Sandiganbayan Seventh Division, Gatchalian posted a total of P90,000 bail in exchange for his provisional liberty from the charges.

The amount of bail that Gatchalian posted in cash was for one count of graft (P30,000), one count of malversation of public funds (P40,000) and one count of violation of the Manual of Regulation for Banks (MORB).

Weslie was recently elected as the First District Representative of Valenzuela City, replacing his brother Sherwin Gatchalian who won as senator during the May 9 elections.

Sherwin, who is also named as respondent in the cases, earlier posted bail on Friday last week together with three other respondents.

Meanwhile, five other respondents in the cases also each posted P90,000 bail on Wednesday namely, WELLEX Group Inc. (WGI) corporate executives Dee Hua Gatchalian, William Gatchalian, Kenneth Gatchalian, Yolanda Dela Cruz and Elvira Ting.

Another respondent, Express Savings Bank Inc. (ESBI) executive Gregorio Ipong, meanwhile, posted a P140,000-bail.

On Tuesday, five other respondents also each posted P90,000 bail for the cases namely, Forum Pacific Inc. (FPI) executives Peter Salud, Rogelio Garcia, Lamberto Mercado, Jr. and Evelyn dela Rosa and ESBI executive Generoso Tulagan.

On the other hand, the primary accused in the case, Surigao Del Sur Rep. Prospero Pichay, has yet to post bail as of posting time.

Pichay is facing three counts of graft, three counts of malversation, one count of violation of Republic Act 8791 or General Banking Law of 2000 and one count of violation of the Manual of Regulation for Banks (MORB).

Aside from Pichay, nine other respondents in the cases including former top officials of LWUA have yet to post bail for the cases.

Filed by the Office of the Ombudsman last week, the cases stemmed from the alleged anomalous acquisition by LWUA under then chairman Pichay of Express Savings Bank Inc. (ESBI) in 2009 in the amount of P80.003 million.

The ESBI is a local thrift bank based in Laguna jointly owned by the FPI and the Gatchalians' WGI.

The Ombudsman said LWUA purchased ESBI’s majority shares without the necessary approval of the Monetary Board (MB) of the Bangko Sentral ng Pilipinas, Department of Finance (DOF) and the Office of the President (OP). 

The Ombudsman further said that LWUA acquired ESBI despite findings by an independent audit firm showing that the bank was suffering from financial losses and capital deficits for five straight years from 2005 to 2009. 

Instead of cancelling the acquisition deal, the Ombudsman said, Pichay and the other members of the Board approved the transfer of almost P700 million of LWUA funds to ESBI supposedly to increase the bank’s authorized capital stock.

The Ombudsman said the fund transfer was again made without the required approval of the BSP’s Monetary Board.

The Ombudsman said the majority shares purchased by LWUA are now deemed “worthless” as the BSP’s Monetary Board has already placed the ESBI under “receivership” status due to its inability to pay its liabilities and to operate without incurring losses.

Pichay and Sherwin Gatchalian have earlier dismissed the charges as “baseless” and “politically motivated,” maintaining the acquisition deal was above board. — RSJ, GMA News