Palace set to give Pichay his walking papers

Manila, Philippines - Malacañang is set to give Local Water Utilities Administration (LWUA) chairman Prospero Pichay Jr. his walking papers in compliance with a dismissal order from the Office of the Ombudsman for his alleged misuse of P780 million in state funds.

“We will comply with the directive of the Ombudsman. It’s a lawful order. We will implement,” deputy presidential spokesperson Abigail Valte said yesterday in a press briefing in Malacañang.

Valte said the order had been formally transmitted to the Office of the President “so the ball is now with us.”

“The next step is for the Office of the President to give the necessary order for the Department of Health under Secretary (Enrique) Ona to implement the dismissal order,” Valte said. The LWUA is under the DOH, according to Valte.

Earlier, acting Ombudsman Orlando Casimiro ordered Pichay, acting administrator Daniel Landingin and acting deputy administrator Wilfredo Feleo stripped of all benefits and permanently disqualified from working in government. 

Pichay, a former Surigao del Sur congressman and staunch supporter of the Arroyo administration, called the Ombudsman’s order “political harassment.”

Casimiro said the dismissal order against Pichay, Landingin, and Feleo was immediately executory pursuant to the rules of the Office of the Ombudsman.

More than a month ago, the anti-graft agency issued a six-month preventive suspension order on the LWUA officials.

The case stemmed from a complaint filed by LWUA employees Rustico Tutol, Luis DG. Estrada, and Carmen Amores, who accused Pichay, Landingin, Feleo and corporate legal officer and Board secretary Arnaldo Espinas of violating Republic Act 6713 or the Code of Conduct and Ethical Standards for Public Officials and Employees when they invested P780 million in LWUA funds in the troubled Express Savings Bank Inc.

The investment represents 20 percent of the bank’s voting stock. 

LWUA’s acquisition of a stake in Express Savings was without prior approval from the Monetary Board and was a violation of the rules of the General Appropriations Act.

It was not clear when the Ombudsman intended to file criminal charges with the Sandiganbayan against the three.