Like many people, we wonder what the “sin” of Department of Transportation and Communications Undersecretary for Legal Affairs Jose Perpetuo Lotill was that triggered the filing before the Office of the Ombudsman of a complaint for plunder and graft against him.
Based on the complaint of the civil society group Anti-Trapo Movement of the Philippines, it would seem that Lotilla’s “sin” is more of a sin of omission than anything else.
Lotilla is being made to answer for the misappropriation and malversation of public funds in the amount of at least P317 million which should have been paid to the Bureau of Internal Revenue.
The P317 million represents taxes due from the controversial Stradcom Corporation, the IT provider of the Land Transportation Office.
Perhaps a discussion of what went before the filing of the plunder case against Lotilla is needed to understand the issue.
On February 10, 2011 , the Republic of the Philippines, through the Land Transportation Office, filed with the Quezon City Regional Trial Court a case for interpleader (docketed as Special Civil Action No. Q-11-68723) against the Sumbilla group and the Quiambao group, which both lay claim to being the rightful shareholders, directors and officers of Stradcom Corporation.
In its complaint for interpleader, the LTO, alleging that both groups made similar, separate demands for payment of the computer fees due Stradcom, prayed that the interpleader court direct the two opposing groups to litigate with each other to determine who between them “has the rightful control and managements of STRADCOM Corporation, including receipt of computer fees due said entity”.
The Quiambao group then filed with the court (Branch 222 of the QC RTC) a Motion to Dismiss the interpleader case. The court, however, in an Order dated June 21, 2011, denied the Motion and directed the Quiambao and the Sumbilla groups to interplead with each other. The court further ordered the LTO “TO DEPOSIT to the court the subject current amount of its contractual obligations to Stradcom Corporation.”
Aggrieved, the Quiambao group then filed directly with the Supreme Court a Petition for Certiorari and Prohibition but the Supreme Court upheld the propriety of the filing of the interpleader case.
Meanwhile, in a November 21, 2012 memo to the President, DOTC Secretary Joseph Abaya, Jr. recommended the partial release of the total amount of P1 billion —naturally, this was to be taken out of the amount supposed to be deposited with the interpleader court—as payment of the following obligations of Stradcom.
Abaya specified where the P1 billion would be going namely P317 million to the BIR, P183 million as working capital and other trade payables and P500 to bank/creditors for overdue amounts with interest.
“From the escrow account,” said the November 21 memo, “the monies will be directly released to the proper recipients thereof”. “Thus, taxes due to the BIR, shall be directly released to the BIR. Amounts due to the trade suppliers and creditors shall likewise be released directly to them”, the Memo added.
On December 21, 2012, Executive Secretary Paquito Ochoa, Jr. issued a memo informing Secretary Abaya of the approval of the release of the total amount of P1 billion as payment of the said obligations of Stradcom. The December 21 memo likewise itemized the three distinct obligations of Stradcom, their respective amounts, and the proper recipient of each.
On January 8, 2013, Secretary Abaya issued a memo directing Assistant Secretary Virginia Torres to “immediately effect payment” of the aforesaid itemized obligations of Stradcom.
On January 18, 2013, the DOTC Undersecretary for Legal Affairs Jose Perpetuo Lotilla issued another memo to Torres with instructions as follow:
“…(P)lease instruct the Escrow Agent under the Escrow Agreement dated December 6, 2001…among the Land Transportation Office, Land Bank of the Philippines and Stradcom Corporation to debit the amount of ONE BILLION PESOS (P1,000,000,000.00) and credit it to Stradcom Account No. 0572-1038-03.
On August 27, 2013, the Anti-Trapo Movement of the Phils., Inc., a civil society organization, filed with the Ombudsman a complaint for plunder and graft against Undersecretary Lotilla (docketed as OMB Case No. IC-OC-13-1751, alleging that his January 18 memo directing the release of the entire P1 billion directly to Stradcom effectively countermanded the earlier January 8 memo from Abaya, which clearly itemized the three distinct obligations of Stradcom, their respective amounts, and the proper recipient of each.
This resulted, according to the complaint, in the misappropriation and malversation of public funds in the amount of at least P317 million, such amount being due to the public treasury as and by way of taxes due from Stradcom.
Stradcom, to date, refuses to remit the amount of P317 million to the BIR and of course feisty BIR Commissioner Kim Henares is running after Stradcom for the tax money which should have been released directly to the BIR.
Why Lotilla omitted three distinct obligations of Stradcom as conditions for the release of the P1 billion to Stradcom is something that he would now have to explain now to the Ombudsman and he might end up a non-bailable case of plunder before the Sandiganbayan if he fails to do so.
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