Graft, malversation raps filed vs GMA over Malampaya Fund

MANILA, Philippines — Former president Gloria Macapagal-Arroyo is facing graft and malversation charges before the Office of the Ombudsman, for allegedly abusing her discretion by realigning the Malampaya Fund to bankroll government projects outside the funds’ intended use.

The charges, filed by advocacy group National Association of Electricity Consumers for Reforms Inc. (Nasecore) on Sept. 28, accuses Arroyo of abusing Presidential Decree 910 and twisting the interpretation of an “inadequate” provision to mean that “she, as President, had the discretion to use the Malampaya funds to whatever purpose she deemed fit.”

Nasecore, led by Duterte administration energy undersecretary Pete Ilagan, said Arroyo subsequently disregarded the law’s policy when she ordered the Department of Budget and Management to use the funds for government projects on agriculture, irrigation, calamity rehabilitation, relocation and housing projects, infrastructure and transportation, among other “unrelated projects.”

PD 910 was signed by the late dictator Ferdinand Marcos Sr., which created the Energy Development Board that was intended to strengthen energy exploration, accelerate exploration and development projects and integrate the functions of multiple government agencies through a single government entity concerned with exploration endeavors.

In 2013, the Supreme Court (SC) declared unconstitutional the provision of PD 910 that Arroyo allegedly abused and twisted to her favor.

The decree allowed the government to enter several service contract agreements, including the Natural Gas Project in the Camago-Malampaya Reservoir that remitted to the government a net share of P172.280 billion, known today as the Malampaya Fund.

Out of the net share, Arroyo disbursed a total of P38.807 billion throughout her presidency. The Commission on Audit (COA) categorized it as improper due to non-compliance with existing laws.

“In view of all the foregoing, respondent (Arroyo) should be charged with violation of the (Anti-Graft and Corrupt Practices Act) and Malversation punishable under Article 217 of the Revised Penal Code,” Nasecore’s 24-page complaint read.

In 2016, then ombudsman Conchita Carpio-Morales cleared Arroyo and three others from plunder charges in connection with the P900-million Malampaya Fund scam, noting that the National Bureau of Investigation (NBI) failed to prove their conspiracy in the illegal diversion of funds.

Nasecore, however, believes that the plunder dismissal does not prejudice their complaint as the 2016 resolution was premised on lack of evidence.

“With the emergence of the COA special audits office report 2017-04 a year later, the evidence is now substantial, concrete and compelling, especially in light of the decision of the Supreme Court… curtailing the discretion of the president in the disbursement of the Malampaya Fund,” Nasecore said, noting that the SC decision in 2013 was a month before the NBI filed complaints.

“True enough, based on the (COA findings), during the implementation of Executive Order 838, P38.807 billion of Malampaya fund was actually utilized for purposes other than that for which PD 910 was enacted,” Nasecore added.

About 192 criminal cases remain pending before the Sandiganbayan against several individuals, Nasecore noted.

The Ombudsman filed these in December 2017 in connection with the P900 million worth of government income from the Malampaya natural gas project intended for farmers affected by Tropical Storm Ondoy and Typhoon Pepeng, which hit the country in late 2009.

Government officials are being accused of funneling the P900-million fund to bogus non-government organizations (NGOs) owned by businesswoman Janet Lim-Napoles, the alleged brains of the equally controversial pork barrel fund scam.

The ombudsman said the allocation to the Napoles-linked NGOs was for supposed livelihood projects that turned out to be “ghosts” or were never implemented.