Ombudsman asked to probe PCGG top honcho

THE Office of the Ombudsman has been asked to probe the chairman of Presidential Commission on Good Government (PCGG) for allegedly “interfering” in the operations of two government sequestered corporations, violation of the election ban, appointing board members without approval from Malacañang and nepotism for hiring a 70-years old “consultant” who happened to be his ‘compadre’ to be compensated at a rate above what was prescribed by law.

In the complaint filed last May 5, 2023, Lucy Lapinig, the former accounting head of UCPB CIIF Finance and Development Corporation (Cocofinance) and UCPB CIIF Foundation Inc. (Cocofoundation), asked the OMB to investigate PCGG chair John Agbayani.

Agbayani stands accused of “blatant” violation of Section 3 (engaging in corrupt practices) of RA 3019 or the Anti-Graft and Corrupt Practices Act, grave abuse of authority, grave misconduct and conduct prejudicial to the best interest of the service.

Agbayani was appointed to his post by Pres. Rodrigo Duterte on February 27, 2017, his classmate at the San Beda Law School.

On the other hand, the PCGG was created right after the illegal removal of then President Ferdinand Edralin Marcos in 1986 in a US-backed ‘color revolution’ (People Power) and has been tasked to recover the alleged “ill-gotten wealth” of the Marcos family and their close political and business associates.

The complaint alleged that acting on his own and in violation of the election ban last year, Agbayani appointed a PCGG “employee,” Mark Abelon (the PCGG website list Abelon as holding the position of ‘Director IV’ – editor) to the board of Cocofinance and Cocofoundation “without the desired letter (appointment) from the Office of the President of the Philippines” on March 29, 2022, which is already covered by election ban on appointments.

Previously, on June 6, 2022 and last January 11, 2023, Agbayani also allegedly appointed Stephen Tanchuling and Sherwin Jao respectively as director/trustee of Cocofinance and Cocofoundation without approval from Malacañan.

During the National Press Club’s ‘Meet the Press On Air’ program on Sunday, 7, 2023, Lapinid also confirmed one of her statements in her affidavit that she was forced to resign from her position to avoid further humiliation in the hands of Agbayani whom she accused of verbally abusing the officers of Cocofinance during their meetings.

“The Respondent has been meddling with the affairs of Cocofinance that is beyond his duty as observer by taking part in the regular meeting of the Board of Directors of Cocofinance and scolding to the extent of lambasting the management in how they run Cocofinance.

“That I am one of the employees that was lambasted and even called incompetent, despite my position being a Certified Public Accountant for a number of years in private and public practice, in front of (the) Board of Directors and other officers of the company.

“With the humiliation and damage to my personality, I was forced to resign and now jobless and still pondering into my mind the very words that was called upon me, causing sleepless nights and trauma,” Lapinid had stated in her complaint.

She also noted that while Agbayani’s position is just a mere “observer” during meetings, he has insisted that the per diem allowance for the board of directors of Cocofinance be hiked to P20,000 each or P240,000 per year and that the board meeting should be held regularly every month.

Lapinid said Agbayani insisted on the increase despite being informed of Memorandum Circular No. 40, s.1993 that pegged the maximum limit on the grant of allowances/per diems to members of the BOD of sequestered corporations nominated by PCGG in the amount of P120,000 per year or P10,000 per month.

Lapinid also claimed that the management of Cocofinance was forced to cave in to the demand of Agbayani that they hire his 70-years old “friend/kumpadre” as a “consultant” after they manage to halve Agbayani’s proposed consultancy fee of P120,000 per month to P60,000.

“(With) the constant intimidation of the Respondent, the management of Cocofinance was forced to hire the said person even if his qualification is not in line with the business of Cocofinance and tried to negotiate with the Respondent to lower the salary of his referral, wherein it ended up to sP60,000.00 monthly to report 3 times a week, as there was no plantilla for the position,” the complaint added.