The Sandiganbayan has allowed Valenzuela City Rep. Weslie Gatchalian to go to China as part of the delegation led by President Rodrigo Duterte. REP. WES GATCHALIAN WEBSITE听PHOTO
The Sandiganbayan Fourth Division has allowed听Valenzuela City Rep. Weslie Gatchalian, brother of Senator Sherwin Gatchalian, to travel to China听with the Philippine delegation led by President Rodrigo Duterte.
This after Gatchalian underwent conditional arraignment and pleaded not guilty to charges听of graft, malversation and violation of bank regulations over the allegedly anomalous buy-out of a bank owned by his family.
The court ordered Gatchalian to pay a travel bond of P270,000. The court also ordered Gatchalian to present himself before the Clerk of Court within five days upon his return.
Gatchalian underwent conditional arraignment to resolve his motion听for leave to travel to China.
鈥淎cting on the urgent motion for permission to travel filed by accused Rep. Weslie Gatchalian, and after considering the prosecution鈥檚 comment opposition thereto, the Court resolves to grant said accused permission to travel abroad to People鈥檚 Republic of China, subject to the following terms and conditions,鈥� the court said in its resolution.
The court ordered Gatchalian to pay a travel bond of P270,000. The court also ordered Gatchalian to present himself before the Clerk of Court within five days upon his return.
READ:听Rep. Gatchalian asks court nod to travel to China with Duterte
In his motion to travel, Gatchalian said he would be part of the trade mission of the Bases Conversion Development Authority. He would be gone from Oct. 18 to 22.
Gatchalian through his lawyers said he would advise the President in discussions with the Chinese.
He added that Speaker Pantaleon Alvarez endorsed him for the trip.
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 chair of the House of Representatives trade and industry committee.
Gatchalian said he would inform the court of his itinerary once Malaca帽ang released the details of the 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.
Gatchalian is a co-accused in the cases for听graft, malversation and violation of the bank manual involving members of his family over the allegedly anomalous听buyout of the family鈥檚 insolvent bank by the Local Water Utilities Administration (LWUA).
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READ:听Gatchalian seeks dismissal of LWUA case听|听Pichay seeks dismissal of bank buyout case
He, his brother in the Senate and their parents: so-called 鈥淧lastics King鈥� William听Gatchalian and听Dee Hu听Gatchalian,听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 (MORB).
They were charged as executives of Wellex Group Inc., which co-owns the insolvent bank听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 the 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 bankruptcy.
Of the Gatchalians, only Weslie was arraigned. Pichay听has also yet to be arraigned.
READ:听Gatchalian clan attends arraignment in LWUA case听|听Arraignment of Gatchalians, Pichay reset anew
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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听Gatchalian听group that gave the agency 60-percent equity in the bankrupt bank.
Pichay and the other officials later injected P780 million LWUA funds to the bank to increase its authorized capital stock.
The听Gatchalians听of Wellex and other owners of the bank were also paid P80 million in the acquisition.
READ:听Gatchalians听say raps a political vendetta听|听Gatchalian, Pichay face criminal raps over bank buyout
The LWUA made the acquisition and transactions despite warnings by听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听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� 听CBB
READ:听Winning senator听Gatchalian听indicted over anomalous bank deal