Ombudsman files raps vs AFP retirement execs

Ombudsman Merceditas Gutierrez yesterday ordered the filing of graft charges against retired Brig. Gen. Jose Ramiscal, former president of the defunct Armed Forces of the Philippines-Retirement and Separation Benefits System (AFP-RSBS), and another former official of the agency for the alleged unauthorized release of more than P85 million from the military pension fund.

In a 29-page joint resolution, an Ombudsman panel recommended to Gutierrez that charges be filed before the Sandiganbayan against Ramiscal for four counts of violation of Section 3 (I) of Republic Act 3019 or the Anti-Graft and Corrupt Practices Act that prohibits public officers from having material interest in any transaction or act requiring the approval of a board, panel or group of which he is a member.

The Ombudsman also charged retired Col. Oscar Martinez, former executive vice president of the AFP-RSBS, with 21 counts for violation of the same law.

Records from the Office of the Ombudsman revealed that from March 23, 1995 up to Dec. 13, 1998, the AFP-RSBS extended interest-free advances worth P85,086,620.50 to the Bay Resources Development Corp. (BRADCO).

The AFP-RSBS and the DM Wenceslao and Associates Inc. (DMWAI) established BRADCO, a joint venture between the two groups, to undertake the acquisition and development of a 10-hectare portion of the Manila-Cavite Coastal Road and Reclamation project.

President Arroyo had ordered the de-activation of the AFP-RSBS after allegations of mismanagement and questionable business ventures brought it to the brink of collapse, the Ombudsman also said.

In his defense, Ramiscal cited in his counter-affidavit that AFP-RSBS released the amount representing the 50-percent share of AFP-RSBS to finance the operating expenses of BRADCO, including real estate and income taxes.

Ramiscal also clarified that these advances later on formed part of the equity of AFP-RSBS in BRADCO, and that the payment of real estate and income taxes does not require the approval of the Board of Trustees.

However, the Ombudsman panel said that the release of P85,086 620.50 was not authorized by the Board of Trustees and is anomalous “since BRADCO has an authorized capital stock of P16,000,000, AFP-RSBS is only obliged to release a maximum of P8,000,000 as additional equity.”