Over P293 million loan grant
MANILA, Philippines — The Sandiganbayan has sentenced three former officials of the Government Service Insurance System (GSIS) to up to 20 years in prison over the grant of P293 million in housing loans to unqualified borrowers.
In a 54-page decision promulgated on March 3, the anti-graft court’s Seventh Division found GSIS Tarlac City former division chief Celestino Cabalitasan, former appraiser Ma. Victoria Leonardo and former senior general insurance specialist Jerry Balagtas liable for violating Republic Act 3019 or the Anti-Graft and Corrupt Practices Act.
Also convicted was private land developer Jose de Guzman of JQG Development Corp.
Cabalitasan, Leonardo, Balagtas and De Guzman were perpetually disqualified from holding public office.
The Seventh Division dismissed the complaint filed against the primary respondent, former GSIS branch manager Amando Inocentes, after the Supreme Court granted his petition in 2016.
Filed by the Office of the Ombudsman in 2012, the cases stemmed from the GSIS’ processing and approval of housing loans by 491 borrowers totaling P241.054 and another set of loans worth P52.107 million of 53 borrowers in October 2001.
The ombudsman said the loans were granted even if the borrowers “were not qualified and were not under the territorial jurisdiction of the GSIS Tarlac field office.”
Ombudsman prosecutors said the lots were intended for commercial purposes and that the land and buildings offered as collaterals for the loans were overappraised by P33.243 million.
In convicting the three former GSIS officials, the Sandiganbayan said the ombudsman’s prosecution panel proved that the respondents approved the loans despite irregularities to give unwarranted benefits to De Guzman.