BAGUIO CITY—The Supreme Court (SC) has reiterated its final and executory decision that perpetually banned former Surigao del Sur 1st District Rep. Prospero A. Pichay Jr. from holding any position in government in connection with the unlawful investment of Local Water Utilities Administration (LWUA) to a thrift bank in 2009 amounting to P780 million.
In a statement, the SC Public Information Office (PIO) said the Court deliberated during its regular en banc session last Tuesday on the petition filed by his political rival Mary Elizabeth Ortiga-Ty to declare as immediately executory the accessory penalty of perpetual disqualification imposed on Pichay.
However, the Court declared as moot and academic the petition, citing the finality of its resolution dated November 11, 2021, which found Pichay liable under Section 52-A, Rule IV of the Uniform Rules on Administrative Cases in the Civil Service, and imposing upon him the penalty of dismissal and the accessory penalties of forfeiture of all benefits, except leave credits, and perpetual disqualification to hold any public office.
The case stemmed from LWUA’s decision to purchase 60 percent of shares of the Express Savings Bank Inc. (ESBI) for P80 million without prior approval of the Monetary Board (MB).
The LWUA, then under Pichay, also deposited P300 million in ESBI after it was designated as its depository bank, as well as transferred P400 million in capital infusion, also without prior approval from the MB.
This led to the filing of criminal and administrative complaints against Pichay Jr. and several officials of LWUA.
The complainants pointed out that the investment was disadvantageous to the government as no income had been realized by LWUA from such investment and the P400 million capital subscription was not supported by any memorandum of agreement or certificate of investment, which would have protected LWUA’s interest.
In August 2022, the Sandiganbayan Fourth Division also upheld its conviction on Pichay, sentencing the former lawmakers of 10 years each for the three counts of graft charges with perpetual disqualification from public office also in connection with the anomalous deal.