(PHOTO - Former military budget officer Lt. Col George Rabusa reveals to senators how generals allegedly raked in millions in illegal wealth during a hearing at the Senate yesterday. JOVEN CAGANDE)
MANILA, JANUARY 29, 2011 (STAR) By Christina Mendez ( A former congressman allied with ex-President and now Pampanga Rep. Gloria Macapagal-Arroyo and a former defense secretary other than Angelo Reyes were allegedly among the recipients of a slush fund from the Armed Forces of the Philippines (AFP).
Sources told The STAR that the congressman, who received a P500,000 monthly allowance, was a member of the Commission on Appointments (CA), particularly the subcommittee on national defense, which scrutinizes the credentials of the defense secretary andAFP chief of staff as well as other officers up for promotion.
(PHOTO - FORMER DEFENSE SECRETARY ANGELO REYES) The former defense secretary also allegedly received millions from the AFP fund, which he used to procure gadgets and for the electoral campaign in 2001, the sources said.
Retired military budget officer George Rabusa has testified that about P1 billion was cleared from the three major services of the AFP and key units to sustain the funding of the 2001 Provisions for Command Directed Activity (PCDA) during Reyes' term as AFP chief.
"I have emphasized during the hearing that not the entire budget was converted to cash. Most of it also went to operations of the AFP," Rabusa said.
Asked what took him so long to come forward and reveal all of these payments, he said he has high hopes in the new Aquino administration and its campaign against corruption and following the right path toward the country's development.
Rabusa expressed hope that the Department of Justice (DOJ) will include him in the witness protection program.
Senate President Pro-Tempore Jinggoy Estrada said Rabusa still has a lot to reveal in the next hearing of the Blue Ribbon committee.
"He still has a lot to expose but because of lack of time he was unable to make all of it public," Estrada said.
Can of worms
Rabusa vowed to help in the filing of plunder charges against his former superior Reyes and former AFP comptroller Jacinto Ligot in connection with the massive corruption in the military.
After testifying at the Senate that Reyes received P50 million in "pabaon" or sendoff cash gift given to retiring officers, Rabusa and his lawyer Noel Malaya are now gathering evidence and testimonies to pin down Reyes and Ligot for possible plunder charges.
"We are prepared to face the battle until it is finished," he said in an interview.
Estrada said the former budget officer's Senate testimony has opened a can of worms that revealed the rotten system of corruption in the military.
He said the "pabaon" system is just the tip of the iceberg.
Rabusa, a member of Philippine Military Academy (PMA) Class 1981, said incoming AFP chiefs - such as retired Diomedio Villanueva and Roy Cimatu - allegedly received P10 million each in "pasalubong" (welcome gift) upon assuming office.
He said Reyes may have received the same amount, but he was not the budget officer yet when the latter was appointed to the post.
Apart from the funds under the PCDA where the AFP chief's extra monthly payola and "pabaon" were sourced, Rabusa revealed that the P80-million to P100-million "savings" from the budget for personal services (PS) were also divided at the end of the year for additional bonuses.
"When the PS is released by the DBM (Department of Budget and Management) it is counted for the troop ceiling, which is not the actual number of troops... (and the difference) can be tapped as savings," he said.
He added that the unused budget for salaries - already programmed in the budget - for personnel who either die or are dismissed from the service can also become a source of corruption.
"Let's say you have 100 casualties in the first quarter, their budget is not removed for that fiscal year because it is already programmed. This, too, can become part of corruption," Rabusa said.
'Reyes got P50-M sendoff money' By Christina Mendez (The Philippine Star) Updated January 28, 2011 12:00 AM Comments (633)
Former military chief Angelo Reyes allegedly received P50 million in pabaon (sendoff money) when he retired in 2001, in keeping with a "tradition" in the Armed Forces of the Philippines (AFP) of rewarding its chiefs with princely sums.
Reyes' alleged "gift" – on top of a monthly P5 million "personal fund" – was revealed yesterday by a former military budget officer at a hearing of the Senate Blue Ribbon committee on the plea bargain deal between the Office of the Ombudsman and former military comptroller Carlos Garcia.
Retired Lt. Col. George Rabusa, appearing in a wheelchair, explained in detail before the committee how Garcia and other top military officers – Reyes included – raked in millions in illegal wealth. The Office of the Chief of Staff also received P5 million, according to Rabusa.
Rabusa also revealed that former AFP chiefs Diomedio Villanueva and Roy Cimatu received P10 million each in pasalubong (welcome gift) when they assumed the AFP leadership.
The major services and other units of the AFP were also used as "clearing houses" to enable the top officials to enjoy millions in perks given as monthly allowances or as bonuses, Rabusa said.
He admitted receiving P500,000 monthly as budget officer and said he had P200 million in a personal bank account that he had to withdraw when the Anti-Money Laundering Council was activated.
He testified that there was a P40-million monthly fund drawn by top AFP officials from the budget of the three major services and other offices of the AFP.
As budget officer, Rabusa said he received direct orders from Garcia. As comptroller, Garcia gave him instructions on where to get and give funds.
Rabusa said he was the budget officer of Reyes when the latter was deputy chief of staff for intelligence. Rabusa was chief of the budget and fiscal division when Garcia was deputy chief of staff for comptrollership.
Senate President Pro-Tempore Jinggoy Estrada presented Rabusa as witness in an arrangement with the officer's lawyer Noel Malaya.
In exchange for his revelations, Rabusa requested that he be made state witness against Garcia.
Estrada admitted knowing Malaya, who was also his counsel when he was charged with plunder before the Sandiganbayan with his father, former President Joseph Estrada. The charges against Senator Estrada were eventually dismissed while former President Estrada was convicted and subsequently pardoned by former President Gloria Macapagal-Arroyo.
Since Reyes served as AFP chief for 20 months, Estrada said Reyes may have accumulated at least P100 million from military funds under the Provisions for Command Directed Activity (PCDA).
Rabusa revealed that he and former comptroller Gen. Jacinto Ligot also personally delivered to Reyes "not less than P50 million" in so-called pabaon.
"We brought the money in the quarters of chief of staff in Camp Aguinaldo which we call the White House," Rabusa said.
The pabaon for Reyes was so big that they had to "convert it into dollars because it was very bulky." He said an AFP chief is traditionally entitled to financial rewards.
"When he retires, the balance of the PCDA is converted into cash and given to the retiring chief of staff," Rabusa said.
"The PCDA is readily available to the chief of staff," he added.
When confronted, Ligot claimed he couldn't recall Rabusa's claims because "it has been more than 10 years."
Reyes himself claimed he couldn't recall receiving funds from Rabusa and Ligot.
Rabusa supported his claims by presenting documents signed by Garcia detailing the percentage share in PCDA of the AFP chief and his deputies.
"The PCDA is from GHQ (general headquarters) where we programmed P40 million every month for PCDA that is being controlled by the chief of staff," Rabusa said.
"If the contribution from the (Joint) J-staff is not enough, this is generated from units, including the V. Luna hospital, so that we can generate P40 million per month or P480 million a year. That (PCDA) is readily available for the chief of staff," Rabusa added.
GMA's officers
Aside from the AFP chief and his deputies, the other beneficiaries of the P40-million fund were the senior military aide to Mrs. Arroyo, deputy chief of staff, systems secretary for plans and programs, retired generals, legislative officer of the House of Representatives, and Public Information Office, Defense Press Corps, and even janitors and gardeners.
Under the Operating Program and Budget of the AFP, the chief of staff gets eight percent share in the PCDA allocation, one percent for the vice chief of staff, two percent for the chief of the directorial staff, one percent for the comptroller and 0.5 percent for "donation."
This translates to P137 million for the AFP chief, P16 million for the vice chief of staff, P33.722 million for the chief of the directorial staff, P16 million for comptroller and P8.4 million for "donation."
Rabusa – who had been a subject of corruption charges – said he also had discretionary funds which he kept in the many vaults in his office at Camp Aguinaldo.
Rabusa added that he even opened a P200-million personal bank account with Security Bank but he had to withdraw the money when Congress created the Anti-Money Laundering Council.
'Inherited' practice
"We just inherited this… the release of funds were coursed through the ISAFP (Intelligence Service of the AFP), and cleared through intelligence projects," he said, adding that the practice has become a "tradition" in the military.
Rabusa also mentioned that millions were cleared through the "Return to Sender" (RTS) system.
In the RTS system, the officer who facilitated or delivered money to a superior officer would be entitled to a certain percentage of the money delivered.
"The issue here is we want to dig deeper into the corruption in the AFP," Estrada said, asking Reyes point-blank if he had ever received such staggering amounts.
"I did not," Reyes told the committee, adding that he is "not a saint" but he has not accepted anything illegal.
Sen. Antonio Trillanes IV also lashed out at Reyes, saying he had no reputation to protect because he didn't bother to protect it when he was still in the service.
"This is the day of reckoning. You better find yourself a good lawyer," Trillanes said.
Not anymore
Meanwhile, AFP spokesman Brig. Gen. Jose
Mabanta Jr. said reforms are already in place to ensure transparency in the military's procurement system.
"This is not happening anymore because of the innovations that have been undertaken after the (allegations against) General Garcia came out in the open," he said.
Mabanta said the Office of the Deputy Chief of Staff for Comptrollership (J-6), which Garcia used to head, had been broken down into smaller units.
"From a very big office, it (J-6) was divided into smaller offices. One of the intentions of this is to show that there is check and balance. Not one office will decide on financial issues," the AFP spokesman said.
The AFP has also abolished the comptroller's office and established smaller units, namely the Management and Financial Office, the Accounting Office, the Office of the Internal Auditor, and the Resource Management Office.
J-6 now corresponds to the Office of the Deputy Chief of Staff for Communications, Electronics and Information Systems.
"Everyone can say what he wants to say but these are raw information which I think needs to be further verified, so it's really up to the authorities to find out its veracity and truthfulness," Mabanta said.
He said the AFP is willing to provide the procurement documents relevant to Garcia's case as requested by Trillanes.
"The most important thing right now is transparency within the armed forces, and we'd like to state that at this point, we still adhere and vow to transparency in the armed forces," Mabanta said. With Alexis Romero and Marvin Sy
Chief News Editor: Sol Jose Vanzi
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