Ex-TRC deputy Dennis Cunanan guilty in pork scam

MANILA, Philippines – The Sandiganbayan found Dennis Cunanan, former deputy director general of the defunct Technology Resource Center (TRC) guilty of pork barrel scam-related charges on Thursday, August 8.

According to the 80-page decision penned by Associate Justice Aurthor Malabaguio, Cunanan faces at least 72 years of imprisonment following his conviction on eight criminal charges in relation to the multi-billion peso Priority Development Assistance Fund (PDAF).

The Sandiganbayan found him guilty on four counts of violating the anti-graft and corruption law, and four counts of malversation of public funds punishable under Article 217 of the Revised Penal Code.

Each count of graft renders a sentence of six to eight years of jail time, while each count of malversation gives him 12 to 18 years, totaling 72 to 104 years.

Cunanan’s co-accused, former TRC group manager Maria Rosalinda Lacsamana, was similarly convicted of similar offenses, and sentenced to a total of 18 to 24 years for graft, and 36 to 54 years for malversation.

The Sandiganbayan ruled that the TRC officials expedited the release of public funds to dubious non-government organizations (NGOs) “in blatant disregard and violation of established legal and regulatory standards and procedures.”

According to the case record, the money came from the PDAF of former Manila representative Joey Hizon totaling P20 million. The Department of Budget and Management released it between February and May 2007 at the lawmaker’s request to fund livelihood programs in his district.

The prosecution said that the TRC served as a conduit to funnel the money into three private foundations or NGOs – Kaagapay Magpakailanman Foundation Inc., which received P4.8 million, Kabalikay sa Kalusugan at Kaunlaran Foundation Inc., which received P9.6 million, and Dr. Rodolfo A. Ignacio Sr. Foundation Inc., which received P4.8 million twice.

The TRC retained the difference of P800,000 as management and service fees, but did not account for the remainder.

Upon investigation, the office locations of the supposed NGOs turned out to be residential addresses whose occupants knew nothing about the private foundations or the projects.

“The funds were supposed to be for the implementation of various livelihood projects, yet none of these projects were executed. These acts not only undermine the sanctity of public office but also represent a grave betrayal of public trust that this Court cannot tolerate,” the anti-graft court said.

Hizon’s office did not respond to state auditors’ requests for confirmation. To date, the entire P20 million in pork barrel funds remain unliquidated.

Defense

Cunanan had denied getting any commission from the PDAF transactions, claiming he believed the projects were legitimate after other TRC officials signed related documents and forwarded it to him for his approval.

Meanwhile, Lacsamana claimed the memoranda she issued were merely recommendatory. She said the decision was ultimately up to the endorsement of Hizon, and approval of director general Antonio Ortiz. Ortiz was also charged in the cases, but remains at large.

The court said that Cunanan had the obligation to at least validate the necessity or legality of the expenses. But he admitted that he did not scrutinize the documents attached to the disbursement vouchers out of good faith.

“The irregularities are very apparent on the face of the documents. Had Cunanan exercised the due diligence expected of him, he would have easily noticed the irregularities. To this Court, signing the DVs despite the glaring irregularities…indicates an intention to act with evident bad faith,” the court said.

The court added that Lacsamana’s “inappropriate and blind” release of a memorandum recommending the release of the full amount indicated her “malicious intent and evident bad faith.”

Both Cunanan and Lacsamana were also barred from holding public office.

Cunanan was ordered to pay the government indemnity totaling P24 million in relation to his graft convictions, of which Lacsamana was held jointly liable for P19.2 million.

Meanwhile, the Sandiganbayan acquitted co-accused department manager Francisco Figura, Rogelio Garcia, and private defendant Bernardita Ignacio due to the prosecution’s failure to prove their guilt beyond reasonable doubt. – Rappler.com