Press Release
July 14, 2011

Blue Ribbon hearing

Drilon: The records of CoA indicate that in 2007, there were 2 liquidations of intel funds in the total amount of P54,525,000 which in effect was not liquidated because there is no credit advice that was on record? Can you confirm that?

CoA Commissioner Heidi Mendoza: I have to admit that until now, we cannot find the records. The previous chair, Chairman Villar, and his staff certified that when they came in, these records are no longer existing.

Drilon: The records are not existing. This is just 2007. The records in my possession do not indicate the months, just for calendar year 2007.

Mendoza: It's for the entire 2007.

Drilon: So there is no liquidation because there is no credit advice that was given to you? Do you confirm that fact?

Mendoza: Because there are no documents to liquidate. I cannot say for sure. We tried our best to find the documents. We don't want also to pass a wrong judgment. But when we looked at the records, we can't find them. Apparently, these documents are either not submitted or they were submitted but somebody took it. The only problem is that if this is not submitted, there's supposed to be no credit advice issued. If there should have been no credit advice issued, there should have been no further releases kasi hindi nga na-liquidate e. We tried our best but we cannot find the documents. For 2009, it was not only P140 million released for intel fund because apparently, the P17 million was not included in the intel fund approval. As you can see from the document that we submitted, this does not have the approval from the Office of the President. So it will appear that for the entire 2009, they spent P157 million.

Drilon: Can you repeat that for the record and clarify? Both in the regular corporate budget and the approvals from Malacanang.

Mendoza: The P17 million, according to those who did the audit, was not accepted as part of intelligence because they believed that this doesn't fall part of the P60 million corporate operating budget and there's a P50 million approval dated 05-06 approved by GMA, there's another P10 million approval by the OP dated Feb. 25 by Ermita and there's another P20 million approved on 10-09-09 by Sec. Ermita. On top of it there's another P17 million.

Drilon: So what is the total intel fund for 2009 which was spent?

Mendoza: In terms of spent, it's P116 million.

Drilon: Ms. Uriarte we have here the report of PNB which indicated that you encashed by your signature huge sums of money. From January-June 2010, an election year, you encashed per certification of the PNB dated December 15, 2010 signed by Annabelle R. Fernandez, sales and service head of PNB, a total of P102.5 million you encashed for 6 months. May we ask, where did you bring this cash? Did you stock it in the office or did you put it in your personal checking account? Do you have a vault in your office?

Uriarte: Katulad po ng nabanggit ko I would like to exercise my right against self incrimination.

Drilon: We respect that. I just would like to show to you... you can invoke your right against self incrimination. Remember that I asked for a subpoena of your SALNs and your ITRs. You submitted these to the committee. Let me show to you what you submitted as your assets an liabilities and income tax and compare these with your ITR: you will notice Ms. Uriarte that for 2007, your assets were P6,170,000. In 2008, these assets jumped to P10,670,000. In 2009, your assets went down by over a million to P9,270,000. Your liabilities in 2007 were P320,000; in 2008, P222,500. Now, here I am showing to you a summary of your SALN and ITR. Your assets in 2008 and net worth increased by P4,597,500. That is simply deducting and comparing your 2008 and 2007 SALNs. Your ITR per your filings showed only an income of P610,536. Your SALN did not show that you borrowed money to justify the increase in your assets. May we ask where this P4,597,500 came from?

Uriarte: Actually yung annual income na nakalagay diyan meron din po kaming tinatanggap na ibang benepisyo sa PCSO na hindi po nata-tax, mga allowances, so ang total po halos ng aking natatanggap ay P2.6 million.

Drilon: You did not report that because that is in your opinion, it is not taxable...

Uriarte: Ayun po ang sabi sa amin ng aming accountant. Sila rin po ang nagpe-prepare niyan.

Drilon: How do you explain the balance between P2 million and P4.6 million?

Uriarte: Maaari ko po bang i-exercise ang aking right?

Drilon: Yes you can you are invoking your right against self incrimination. You're saying that part of this P4.597 million in increase in your assets is from your other allowances which you did not report because in your view these are non-taxable income as they are allowances. I leave that to the BIR. But there is still a discrepancy of about P2 million which per records she could not explain where the source is. Are you willing to submit to this committee your bank accounts for this particular issue?

Uriarte: Opo your honor.

Drilon: Good. Would you submit to this committee your bank accounts for 2009, 2010 etc?

Uriarte: Yes your honor. Kung may pro forma po kayo ngayon pipirmahan ko na po.

Drilon: It's okay. Just a final question on intel funds. Madam Commissioner I noticed in your submission that there are a lot of intel funds being liquidated including local government units. Is that correct?

Mendoza: Yes.

Drilon: Would you have an idea how much is the total intel fund that the CoA would liquidate on a yearly basis, for the entire government?

Mendoza: For 2010 for GOCCs, the total is P533,480,000 and another $108,190 from Pagcor.

Drilon: I think we are uncovering quite some interesting data here. How was these liquidated? Through certifications also?

Mendoza: Yes your honor.

Drilon: For LGUs?

Mendoza: For NG muna po. For NG, it's P951,124,091.57.

Drilon: P951 million... this includes AFP, PNP, NBI, Customs, Immigration, DFA, DoJ.

Mendoza: For LGUs, P748,413,062.89... or a grand total for all intel funds based on submitted liquidation--P1,725,416,556.26 plus $108,190 for Pagcor.

Drilon: Would you have 2009 under the same classification?

Mendoza: Opo next week.

(Drilon later clarified the figures: GOCCs�P533.4 million; NG--P957.1 million; LGUs--P1.3 billion or a total of P2.5 billion total intel funds liquidated in 2010 plus Pagcor's $108,190)

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