Official in Lozada caper to Securities and Exchange Commission?

MANILA, Philippines - The Palace official who gave P500,000 to national broadband scandal whistle-blower Rodolfo Lozada, purportedly out of generosity, is slated to replace Jesus Martinez as commissioner of the Securities and Exchange Commission (SEC).

President Arroyo is set to appoint Senior Deputy Executive Secretary Manuel Gaite to replace Martinez, who is under investigation for allegedly receiving bribes to cover up the mismanagement of a pre-need firm owned by the Legacy Group of Companies.

Meanwhile, police and SEC enforcers raided Legacy offices in Quezon City and Makati on the strength of search warrants issued by the courts. The raiders seized documents and padlocked the offices of Legacy at World Center on De la Costa street in Makati and on Scout Borromeo in Quezon City. Details of the operation were sketchy as of press time.

Gaite himself confirmed reports that he is being eyed to succeed Martinez, who retired on Thursday after serving his seven-year term.

“I was told by the Executive Secretary (Eduardo Ermita) that I would be appointed but I have not seen any papers yet,” the 54-year-old Gaite told The STAR in a telephone interview.

Described by close friends and former classmates in law school and in the seminary as “deeply religious” and humble, Gaite was dragged into the ZTE-NBN controversy last year after he admitted offering P500,000 to Lozada for his “expenses” in Hong Kong.

Lozada, then president of the Philippine Forest Corp., claimed Malacañang had asked him to stay in Hong Kong to avoid a Senate hearing on the NBN scandal.

Gaite at the time said the money he loaned to Lozada was originally for a church project. Lozada however said he did not spend the money and turned it over to the Senate, which was investigating the controversy.

Gaite himself faced intense grilling at the Senate where he was pilloried for reportedly lying about his intention of offering money to Lozada.

But former associates vouched for Gaite’s integrity. Fr. Gerard Deveza, who was Gaite’s classmate at the Holy Rosary Seminary in Naga City in the early 1970s, described the Palace official as “a good man” at the height of the Senate investigation.

Fr. Elmer Ignacio, the parish priest in the Bulacan town where Gaite lives with his family described him as “straight compared to Lozada.”

Gaite is married to a former nun, Maribel Ramos, and they have one adopted child.

According to his resume, Gaite has been working in government since 1983 first as a trial attorney at the Office of the Government Corporate Counsel.

Celso’s ex-wife speaks

De los Angeles’ former wife broke her silence yesterday and denied she or her their son Martin Nicolo were involved in the Legacy Group scam.

Ma. Concepcion “Connie” Panlilio-De los Angeles said in a statement sent through her lawyer, Howard Calleja, that she’s willing to tell all against her former husband for the sake of their son.

Connie assailed De los Angeles for using Martin Nicolo in “crafting another scam not only in rural banking but also in pre need plans.”

In a phone interview, Calleja said the ex-wife left the alleged brains of the Legacy anomaly due to his alleged “persistent womanizing.” De los Angeles had also been involved in other controversies before but managed to come back to banking due to his alleged connections, the statement read.

“As a mother, I only want to protect Nico who – at a very young age – has been dragged into this issue by his father and whose future has been compromised,” she said.

“We are willing to assist and cooperate in the ongoing investigations against my estranged husband, but I hope the public will respect our privacy,” she said.

She explained that the family’s property in Alabang, Muntinlupa, which was sold for P58 million, was part of the settlement of their separation with a portion of the money used to pay off conjugal debts. The couple filed for divorce in the United States in 1984, the statement read, adding that since then, “she rarely spoke with her estranged husband and whatever interaction they had were limited to the welfare and support for her two children.”

Caution urged

Sen. Francis Escudero, meanwhile, warned the Philippine Deposit Insurance Corp. (PDIC) against readily providing insurance payments to Legacy depositors.

“Before the PDIC even starts considering insurance payments to depositors of these banks, it should first focus on protecting the deposits and investments of the public in general,” said Escudero.

“I believe the officials of these rural banks owned by Legacy should be sued for attempting to fool the PDIC. I want to caution the PDIC against paying off claims for these dubious accounts claims,” Escudero added.

Escudero also sought waivers on bank accounts for all government officials in favor of the Ombudsman, Bangko Sentral ng Pilipinas, and the Anti-Money Laundering Council (AMLAC).

“This will make it a lot easier for us to discover any assets that may have been illegally acquired,” Escudero, chair of the Senate Committee on Justice and Human Rights, said in a statement.

Meanwhile, Sen. Manuel Roxas II renewed his appeal to concerned agencies for swifter action on De los Angeles’ assets.

“Considering the seriousness of these allegations, we trust that your office will conduct an in-depth investigation on the matter and expeditiously act to cause the attachment of all assets that may have been acquired using the trust fund and deposit accounts of Legacy policy holders and depositors,” he said in separate letters sent to PDIC president Jose Nograles, SEC chairperson Fe Barin and Justice Secretary Raul Gonzalez.

At the House of Representatives, Albay Rep. Edcel Lagman also asked the DOJ to act fast on the cases against Legacy.

Lagman said the victims of Legacy would feel a measure of relief “if the DOJ makes sure that the prosecution of Legacy self-confessed owner Celso de los Angeles and his cohorts (is) in the bag.

“There is a crime, there are victims and the modus operandi has already been established,” Lagman, a lawyer, said.

At the same time, Lagman reiterated his appeal for the PDIC to closely examine the more than 130,000 deposit accounts of De los Angeles’ closed 13 rural banks for possible fraud.

“I trust that PDIC president Jose Nograles will do a good job of scrutinizing these accounts and protecting the interest of the public,” he said. - with Christina Mendez, Aurea Calica, Sandy Araneta, Jess Diaz, and Perseus Echeminada