PNP admits ‘diversion’ of pension funds

The Philippine National Police (PNP) admitted yesterday that it may have diverted some P272.932 million that was appropriated for the payment of an increase in the pensions of retired policemen.

In a letter to The STAR, PNP comptroller Director Victor Signey admitted that the P272.9 million was used to pay the pension claims of 17,073 retirees last year instead of being used to fund the increase in retirees’ pension benefits.

"The P272,932,000.00 allotted for (an increase in) pension claims is not missing. The amount was part of the P1.357 billion appropriation from the Department of Budget and Management, and was used to pay pension claims of 17,073 PNP retirees and their surviving kin from January to December 2002," Signey said in his letter.

Signey said that "much as we want to adjust the pension rate of our retirees to the standardized salary levels, the fund release for the purpose is simply insufficient."

"The key to balance off our retirement and pension funds is for the DBM to act on our previous requests for the release of all appropriations due," he added.

He said the PNP has requested P625.95 million from the DBM to cover the increase in pension benefits even as it incurred unfunded pension claims amounting to P160 million from January to December 2002.

"Under our budget proposal in the amount of P3.537 billion for fiscal year 2003 for 20,282 pensioners, only P1.630 million was considered by DBM leaving us with a deficit of P1.907 billion for the PNP pension fund," Signey said.

The admission bolstered the claim of retired Director Guillermo Domondon, president of the PNP Retirees Association Inc. (PRAI), that the allocated P272.9 million was diverted from its intended purpose and may qualify as "technical malversation."

"The question is, what was the money intended for? If it comes out that they spent it for other purposes, the persons responsible should be held liable," Domondon said.

But Signey said the alleged fund diversion happened when Metro Manila police chief Deputy Director General Reynaldo Velasco was PNP comptroller.

"I cannot comment because it did not happen during my time. Let (Velasco) flare up because he cannot explain why he used the budget for other claims," Signey said without elaboration.

Past PRAI president Wilfredo Reotutar also admitted that Velasco may be held liable for the alleged fund diversion.

"I think the problem is with the DBM but if it can be shown proof of the (special allotment release order) on the P272 million then the PNP would be in big trouble," Reotutar said.

But Reotutar stressed that DBM officials could also be equally liable and he threatened to file charges against them before the Ombudsman. – With Non Alquitran