Former AFP chief probed for graft

By Ronron
April 27, 2005

Former Armed Forces of the Philippines (AFP) Chief of Staff Gen. Dionisio Santiago was found by military investigators to have violated the anti-graft practices law by depositing an eight-million peso check intended for an AFP project to his personal bank account two years ago.

In a report, the AFP Office of Ethical Standards and Public Accountability (OESPA) said Santiago, now a director at the Dangerous Drugs Board under the Department of Interior and Local Government, violated Articles of War 95 (Frauds Against the Government) in relation to Section 3 (e) and (g) of Republic Act 3019 (Anti-Graft and Corrupt Practices Act) “for allegedly defrauding the government when he kept the check and deposited the same to his account after his retirement.”

The AFP Commissioned Officers Country (AFPCOC) issued in March 2003 an eight-million peso check (Centennial Bank, check number 0000530806) payable to the Armed Forces of the Philippines c/o the Chief of Staff for the renovation costs of the AFPCOC swimming pool.

Santiago, who is a member of the Philippine Military Academy (PMA) class 1970, served as AFP Chief of Staff from November 28, 2002 up to April 8, 2003.

Based on the investigation, Santiago deposited the said eight-million peso check to his account at the Centennial Bank Central Office on June 2, 2003, or almost two months after his retirement.

Santiago, in his letter dated February 24, 2005 addressed to OESPA chief Vice Admiral Ariston de los Reyes, admitted “it was his mistake to hold on the money and paid the contractor by himself to ensure completion of the project.”

The renovation of the AFPCOC swimming pool was approved on September 3, 2003. It was not immediately known however when it was completed and how much expenses it incurred.

But Santiago maintained that there was nothing anomalous on the improvements made on the swimming pool. “Based on the advice of his staff, the non-appropriated funds of AFPCOC was used for the improvements of the said swimming pool,” the investigators quoted Santiago’s admission.

Investigators revealed that Santiago only refunded the eight-million peso amount on February 21, 2005 through his counsel.

“Although the contractor refunded the amount to AFPCOC, the offense was already consummated,” the investigators concluded, citing a Supreme Court ruling in a previous case that stated: “the return of the money was merely a mitigating circumstance. It can not exempt him from criminal liability.”

The OESPA submitted last March 21 of this year to AFP Chief of Staff Gen. Efren Abu its recommendation that Santiago’s case be referred to the Office of the Ombudsman for the conduct of a preliminary investigation.

Up to this date, Abu has yet to act on the recommendation.

Should Abu approve to refer the case to the Ombudsman, Santiago would be the second AFP chief who would be subjected to a probe in relation to graft, next to retired Gen. Lisandro Abadia./DMS