Valenzuela City Rep. Weslie Gatchalian, brother of Senator Sherwin Gatchalian, has asked the Sandiganbayan for leave to travel to China with the Philippine delegation headed by President Rodrigo Duterte, even as he faces charges of graft, malversation and violations of bank regulations before the court.
In his motion to travel filed before the anti-graft court Fourth Division, Gatchalian asked the court for permission to travel as part of the country鈥檚 delegate to the People鈥檚 Republic of China for a trade mission of the Base Conversion Development Authority from Oct. 18 to 22.
Gatchalian through his lawyers said he would accompany the President and would advise him in discussions with the Chinese.
Gatchalian added that he was endorsed to join the delegation by Speaker Pantaleon Alvarez.
鈥淎s part of the President鈥檚 entourage, Cong. Gatchalian will assist and advise the President during his discussions with Chinese delegates on matters of economic, political and trade relations,鈥� he said in his motion.
Gatchalian added that he would join the delegation in his capacity as chairperson of the House of Representatives trade and industry committee.
He begged the indulgence of the court to inform it of the itinerary once Malaca帽ang releases complete details of the official trip.
He said he would be willing to post a travel bond and comply with other requirements for the travel.
鈥淔rom the foregoing, Cong. Gatchalian humbly beseeches this Honorable Court to allow him to travel to the People鈥檚 Republic of China from 18 to 22 October 2016,鈥� his motion read.
Rep. Gatchalian is a co-accused in the cases for聽graft, malversation and violation of bank manual involving members of his family for the allegedly anomalous聽buyout of the family鈥檚 insolvent bank by the Local Water Utilities Administration (LWUA).
搁贰础顿:听Gatchalian seeks dismissal of LWUA case听触听Pichay seeks dismissal of bank buyout case
Senator Gatchalian, Rep. Gatchalian, and their parents, so-called 鈥淧lastics King鈥� business magnate William聽Gatchalian and聽Dee Hu聽Gatchalian,聽were each accused of one count of violation of Section 3(e) of Republic Act No. 3019 or the Anti-Graft and Corrupt Practices Act, one count of Malversation of Public Funds as defined under Article 217 of the Revised Penal Code, and one count of violation of the Manual of Regulation for Banks.
They were charged as executives of Wellex Group Inc., which co-owns the insolvent bank聽Express Savings Bank Inc. (ESBI).
Meanwhile, then LWUA chair now Surigao Del Sur Rep. Prospero Pichay Jr. was charged with three counts of graft, three counts of malversation, one count of violation of MORB and one count of violation of Republic Act 8791 or General Banking Law of 2000, for leading the purchase by LWUA of the insolvent bank to save it from the brink of bankruptcy.
The Gatchalians and Pichay have yet to be arraigned.
搁贰础顿:听Gatchalian clan attends arraignment in LWUA case听触听Arraignment of Gatchalians, Pichay reset anew
According to the Ombudsman, Pichay and other LWUA officials approved the acquisition of the insolvent bank in 2009 despite audit findings that show that the bank suffered net losses and capital deficits for five straight years from 2005 to 2009.
The acquisition took the effect of a financial rescue, as the LWUA officials bought 445,377 ESBI shares worth P101.363 million from the聽Gatchalian聽group that gave the agency 60-percent equity in the bankrupt bank.
Pichay and the other officials later injected P780 million LWUA funds in the bank to increase its authorized capital stock.
The聽Gatchalians聽of Wellex and other owners of the bank were also paid P80 million in the acquisition.
搁贰础顿:听Gatchalians聽say raps a political vendetta听触听Gatchalian, Pichay face criminal raps over bank buyout
The LWUA made the acquisition and transactions despite warnings by聽the Bangko Sentral ng Pilipinas (BSP), the Monetary Board of the BSP, and the Department of Finance (DOF) about the ESBI鈥檚 fragile financial condition following a due diligence review that showed high liquidity and credit risks.
The acquisition was also made without the requisite regulatory approvals from the BSP, its Monetary Board, the DOF and the Office of the President.
In ordering the filing of charges to the聽Sandiganbayan, Ombudsman Conchita Carpio-Morales said 鈥渋n view of the bank鈥檚 precarious financial standing at the time of the sale, the windfall received by herein private respondents must be deemed unwarranted benefit, advantage or preference.鈥� CDG/rga
搁贰础顿:听Winning senator聽Gatchalian聽indicted over anomalous bank deal