Ex-CAAP chief: Bank withdrawals 'routine'

MANILA, Philippines - A former director-general of the Civil Aviation Authority of the Philippines said there was nothing wrong with withdrawing around P400 million from the agency’s Land Bank of the Philippines and United Coconut Planters Bank (UCPB) accounts during his last days at the CAAP in 2010.

In a letter to The STAR responding to a report on the withdrawals, former CAAP chief and retired Philippine Air Force general Ruben Ciron said the withdrawals he made from the CAAP’s UCPB and Landbank accounts were just “part of routine operations” and done periodically to support the agency’s operations.

“It should be noted that CAAP has more than 80 airports to maintain, some of which are classified as international airports,” Ciron said in his letter to The STAR dated March 2. “Just maintaining these in good operating conditions, without considering renovations or major repairs, already requires more than P132 million monthly.”

Ciron said the CAAP was also given full authority to open bank accounts, make immediate deposits and withdrawals with the autonomy given by the enactment of Republic Act 9497, which transformed the previous Air Transportation Office into the CAAP in March 2008.

“Since the CAAP had already been transformed, by virtue of its enacting law, from its former status as a regular line government agency into a government-owned and controlled corporation, the Department of Budget and Management effectively cut its financial cord that connects it to the General Appropriations Act or the national budget, which used to support the former Air Transportation Office operations,” Ciron said.

He said that while the CAAP no longer receives support from the national budget, the CAAP “need not remit to the National Treasury its income, but could deposit it immediately under its own accounts (Landbank, UCPB and other depositories, as may be authorized by the CAAP board).”

Ciron also took issue with the source of the Feb. 28 Star report, the CAAP Employees Union, and its official, Cesar Lucero, who he said has no background in finance. He said some of the union officials have been charged with libel last year.