DOJ SUBPOENAS MIKEY ARROYO & WIFE / MERCI RESIGNATION 'VOID AB INITIO'
MANILA, MAY 2, 2011 (STAR) Former presidential son Rep. Juan Miguel "Mikey" Arroyo and his wife Angela were ordered to appear before the Department of Justice (DOJ) to answer charges in a P73.85-million tax evasion case filed by the Bureau of Internal Revenue (BIR) last April 7.
Prosecutor General Claro Arellano told The STAR that the DOJ has already sent the subpoena to the Arroyo couple.
Arroyo, of the Ang Galing Pinoy party-list group, and his wife were ordered to appear before the DOJ at 2 p.m. on May 12 and 26.
They were also told to submit their counter-affidavits and supporting documents.
Arroyo is reportedly in the United States with his mother, former President Gloria Macapagal-Arroyo
A three-member panel of prosecutors tasked to handle the preliminary investigation of the case issued the subpoena, dated April 28.
The DOJ panel is composed of Senior Assistant State Prosecutor Lagrimas Agaran, Assistant State Prosecutor Ma. Christina Barot, and Assistant State Prosecutor Mederlyn Presa-Mangalindan.
Last April 7, BIR Commissioner Kim Henares said her office filed the complaint after gathering ample evidence, belying the claim of Arroyo that the case was part of a purported battery of harassment suits against the former administration.
Arroyo maintained that he has been faithfully paying the correct taxes and accused the BIR of being out to "crush" him.
In its complaint, the BIR accused the couple of wrongful declaration of taxable income and non-filing of income tax returns, acts punishable under Sections 254 and 255 of the National Internal Revenue Code.
The BIR said the lawmaker only paid P2.4 million, P1.7 million and P376,000 in taxes for the years 2004, 2006 and 2007, respectively, when he and his wife bought several properties worth millions from 2004 to 2009 - including residential houses in the United States, in Lubao, Pampanga and at La Vista Subdivision in Quezon City.
The BIR patterned its investigation of the Arroyo couple after the method used by US authorities against gangster Al Capone and found "substantial underdeclaration of income by over 30 percent" in those three years.
"Under the Tax Code (NIRC), underdeclaration of taxable income of more than 30 percent is considered a prima facie evidence of fraudulent return," Henares said.
Arroyo also supposedly did not file income tax returns for the taxable years 2005, 2008 and 2009, while his wife also did not file tax returns from 2003 to 2009.
Henares said the act of non-filing is evident of their alleged fraudulent scheme to defeat payment of taxes.
If found guilty, the couple could face imprisonment of up to four years and fine of at least P30,000 for each count of underdeclaration of taxes, and imprisonment of up to 10 years and P10,000 fine for each count of non-filing of income tax return.
Arroyo described the charges against him as "pure political harassment." He said he was given 10 days from April 5 to answer questions on his statement of assets and liabilities and net worth (SALN) but Henares announced to the media the filing of the tax evasion complaint against him two days later.
"My conscience is clear. I pay my taxes properly. I don't know where these (charges) are coming from. I have nothing against any government looking into our tax payments or running after those who have tax issues," Arroyo said.
"All that I ask is (for them) to observe due process but if that's how they do it, they're really out to crush me," he added.
He said that after receiving the notice from the BIR on April 5 asking him to explain the alleged discrepancy between his known assets and tax payments, he immediately consulted his lawyer Ruy Rondain.
FROM THE TRIBUNE
Gutierrez's resignation 'void ab initio' — Paguia By Benjamin B. Pulta 05/02/2011
Outspoken justice system critic Alan Paguia claimed former Ombudsman Ma. Merceditas Gutierrez's recent resignation was "void ab initio."
In an e-mailed statement, Paguia, a defense lawyer for President Joseph Estrada before being suspended by the high court for harsh words against the tribunal, said "She (Gutierrez) cannot relinquish an officae she no longer holds,"
"Her term had expired in 2009," Paguia said, adding Gutierrez had been appointed in 2004 after her predecessor Simeon Marcelo stepped down citing health reasons before completing the law's seven-year term for the position.
As a consequence, Paguia believes Gutierrez's term should be only up to the remainder of what would have been Marcelo's term, or up to 2009 only.
"Is her (Gutierrez) resignation valid? No. It is, like her aborted impeachment, void ab initio," Paguia insisted in his statement.
"Her resignation, like her impeachment, is a cover-up for about thousands of illegal indictments and acquittals she had signed without jurisdiction after the automatic expiration of her inherited constitutional term," she said.
"In spite of her dubious resignation, she still has to account for such acts of bad faith, not only to the sovereign Filipino people but also to the individual victims of her
sham indictments and acquittals. Those who were illegally acquitted should be re-investigated for possible indictment," Paguia said.
A portion of the Ombudsman's charter however says that Gutierrez may have been entitled to seven years and not merely the remainder of Marcelo's term as Paguia argues.
RA 6770 Section 8, Article 3 states, "In case of vacancy in the Office of the Ombudsman due to death, resignation, removal or permanent disability of the incumbent Ombudsman, the Overall Deputy shall serve as Acting Ombudsman in a concurrent capacity until a new Ombudsman shall have been appointed for a full term."
Noted election lawyer Romulo Macalintal, for his part, said Gutierrez's resignation last Friday did not benefit the nation since it left many issues "unresolved."
"While I give my utmost respect to the decision of (Gutierrez) to resign from her (post), I still believe that her resignation does not at all benefit the nation because of the many issues left unresolved with her untimely resignation," Macalintal said.
Macalintal said that Gutierrez's "unfortunate act" of resigning "does not at all help future impeached officers who may similarly feel that the cases against them are merely 'politically motivated."
"The only lesson we learned from (Gutierrez's) resignation is…for an impeachable official to resign even if she feels that she is not guilty or that the evidence against her is weak and cannot stand trial and scrutiny before the Senate,"Macalintal said.
According to Macalintal, Gutierrez's resignation left unanswered the question of whether or not failure to promptly act on a pending case was "impeachable" or fell within the ambit of "betrayal of public trust."
"A full blown trial should have been conducted by the Senate and once she is acquitted, then that would have been the best time for her to tender her resignation to prove her detractors wrong," Macalintal stressed.
He added that "the decision by the Senate on (Gutierrez's) case would have enriched our jurisprudence or could serve as a useful guidance in future impeachment cases."
Macalintal said that the Senate's decision would have served as "guidance…in future impeachment cases of similar nature or background." "This will likewise avoid or prevent future impeachment cases which are claimed to be merely politically motivated," he added
"But as it stands now, there (are) no specific or proper guidelines or guidance on how to really determine if an impeachment case is sufficient in form and substance for the same is entirely left on the discretion of the members of the House of Representatives Committee on Justice," Macalintal said.
According to Macalintal, since no impeachment case in the country has yet been fully decided by the Senate and eventually by the Supreme Court, "an impeachment case would forever remain a numbers game in our country where the fate of the accused is left on the political colors or decision of the legislators."
Aside from this, Macalintal said, Gutierrez's resignation "does not at all help her" since "her detractors have been saying that she's not yet 'off the hook' (and) they will still pursue criminal actions against her once her resignation becomes effective."
The Office of the Ombudsman, meanwhile, has debunked allegations that it "slept" on the plunder case filed by a former solicitor general against ex-President Arroyo and three others in connection with the alleged misuse of Overseas Workers Welfare Administration (OWWA) funds.
In fact, the Central Records Division (CRD) of the anti-graft body has sent a copy of the investigation report submitted by its Field Investigation Office [FIO] in October 2007 to all parties to the case including ex-Solicitor General Frank Chavez.
Assistant Ombudsman Evelyn Baliton said that in the 18-page report, the Ombudsman did not find enough evidence to conclude that Arroyo; Alberto Romulo, then executive secretary; Virgilo Angelo, then OWWA administrator and Francisco Duque, then president/ chief executive officer of the Philippine Health Insurance (PHIC) misappropriated the funds.
In his complaint filed before the Ombudsman, Chavez said Executive Order 182, issued on February 14, 2003, allowed for the transfer of more than P530-M in OWWA funds to PHIC.
Chavez also alleged that Romulo sought the release of $293,500 to finance the "preparatory activities" of the Philippine post in Kuwait; and also the "purchase of vehicles" and "stockpiling" of the posts in Lebanon, Jordan, Oman, Bahrain, Egypt and Iran in support of the United States-led war in Iraq.
He further alleged Romulo requested for the release of P5, 000, 000 as operating expenses of the Philippine Humanitarian Assistance Group to Iraq.
According to Chavez, Arroyo granted both requests and from her marginal note, stated that they be sourced from OWWA funds.
However, investigation conducted by FIO revealed that there was no actual transfer of the Overseas Filipino Workers' (OFWs) Medicare funds from the OWWA to the PHIC, as attested to by the Commission on Audit (COA) resident auditor of OWWA, Baliton said.
On the alleged release of funds for the Philippine posts in the Middle East and the country's humanitarian mission in Iraq, investigation showed that OWWA and the Department of Labor and Employment (DOLE) entered into a Memorandum of Agreement (MOA) to set aside a contingency fund for "an effective response mechanism for possible relocation and repatriation of Filipino workers in the areas covered by the conflict in the Middle East."
The Assistant Ombudsman said the FIO concluded that "the P2, 658, 790.80 stand-by fund released for the Philippine posts in the Middle East was duly supported by documents, the unspent portion of which was returned to OWWA, in compliance to the Memorandum of Agreement (MOA) between said agency and DOLE."
The report said that it would be premature to conclude that OWWA's major services have been greatly affected upon the appropriation of a contingency fund for the various posts in the Middle East.
It further stated that "said fund allocation was but urgent in nature and was clearly along the major mandates of the OWWA, in upholding the welfare of the OFWs." Arlie O. Calalo, Ted Boehnert
----------------------------------------------------------
Chief News Editor: Sol Jose Vanzi
© Copyright, 2011 by PHILIPPINE HEADLINE NEWS ONLINE
All rights reserved
----------------------------------------------------------
PHILIPPINE HEADLINE NEWS ONLINE [PHNO] WEBSITE
[Non-text portions of this message have been removed]
Follow us on Twitter: http://twitter.com/phnotweet
This is the PHILIPPINE HEADLINE NEWS ONLINE (PHNO) Mailing List.
To stop receiving our news items, please send a blank e-mail addressed to: phno-unsubscribe@yahoogroups.com
Please visit our homepage at: http://www.newsflash.org/
(c) Copyright 2009. All rights reserved.
-------------------------------------------------------------
