House body to probe ex-CAAP executives over midnight withdrawals

Manila, Philippines - The House committee on good government and public accountability said yesterday it will investigate former officials of the Civil Aviation Authority of the Philippines (CAAP) in connection with an allegedly anomalous withdrawal of more than P400 million from the agency’s accounts from at least two banks last year.

The congressional inquiry was prompted by House Resolution 1162 filed by Cagayan de Oro Rep. Rufus Rodriguez and his brother, Abante Mindanao party-list Rep. Maximo Rodriguez, who cited the claims by the CAAP Employees Union on the massive withdrawals.

Based on data furnished by the union, Rodriguez said former CAAP chief Ruben Ciron and his chief of staff, Ronaldo Manlapig, reportedly withdrew more than P400 million from the agency’s accounts in United Coconut Planters Bank  (UCPB) and Land Bank of the Philippines (LBP) from January to March 2010.

Rodriguez said the CAAP’s passbook with the UCPB showed that Ciron and Manlapig withdrew P150 million and P80 million on Jan. 7 and March 2, 2010, respectively.

Ciron and Manlapig also withdrew $1 million on Feb. 23, $1 million on Feb. 26 and $2 million on March 2 from CAAP’s dollar account with the LBP, he said. 

He said the huge bank withdrawals are highly questionable since these were made when Ciron and Manlapig were on their way out. Ciron was replaced by Alfonso Cusi on March 10, 2010, or eight days after he and Manlapig made the last two withdrawals, he said. 

Quoting officials of the CAAP-EU, Rodriguez said Ciron was booted out as CAAP head because of the issuance of the significant safety concerns (SSC) findings on Philippine civil aviation by the International Civil Aviation Organization (ICAO) in December 2009 and the Category II downgrade of the Philippines by the United States Federal Aviation Authority (US FAA).

 Rodriguez said another anomaly in the CAAP involving Ciron and Manlapig – which seemed similar to the Armed Forces of the Philippines (AFP) conversion controversy with regard United Nations fund – is the illegal disbursement of fund from ICAO, a specialized agency of the UN on international civil aviation matters.

Citing the findings of the Commission on Audit (COA), he said the $12 million ICAO trust fund under CAAP in 1996 was reduced to only $3 million in 2009.

“There is a need to look into the situation, which is highly anomalous in order to prevent public funds from being further disbursed and to improve the performance of the CAAP,” Rodriguez said.

Aside from the alleged illegal fund withdrawals, Rodriguez also wanted Ciron to explain why ICAO issued SSC findings in Philippine Civil Aviation in December 2009.  He also wanted Ciron to expound on why the US FAA downgraded Philippine civil aviation to Category II.