A former chairman of the board of directors of the Development Bank of the Philippines (DBP) has been sentenced to up to 36 years in prison for having used the bank’s money for his personal use when he went to the United States in 2004.

In a 35-page decision, the Sandiganbayan Third Division found former DBP chairman Vitaliano Nanagas II guilty of one count of violating Section 3(i) of Republic Act 3019 (Anti-Graft and Corrupt Practices Act) and two counts of estafa under Paragraph 2, Article 315 of the Revised Penal Code (RPC).

“Clearly, the accused was directly interested in the approval of his travel for personal gain since with the said approval, he was able to attend to personal matters without using his own private resources,” read the decision penned by Presiding Justice Amparo Cabotaje Tang and concurred by Associate Justices Samuel Martires and Alex Quiroz.

Nanagas was sentenced to between six to 10 years imprisonment for the one count of graft; four to 12 years on the first count of estafa; and another 4 to 14 years on the second count of estafa. He was also perpetually disqualified from holding public office and was directed to indemnify the government the amount of P66,374.28 and P310,665.73.

The tribunal noted that a DBP resolution enumerated as valid reimbursable expenses the travel costs, plane fare, meals, hotel expenses, baggage fees, airport fees, toll fees, and other fees as approved by the board.

Though he went to the US on official business, the court said “the requests for reimbursement include the reimbursement of expenses which were incurred while the accused was attending to personal matters in the USA and expenses incurred in the Philippines when he was on travel.”

“In other words, the accused included the expenses which he did not incur in the discharge of his official functions,” the Third Division stressed.

Nanagas was found to have submitted to the DBP corporate secretary three requests for reimbursements of expenses during his official travel amounting to P492,259.93.

Of the amount, the court noted that at least P310,665.73 were spent for personal matters from May 22, 2004, to June 8, 2004, including the purchase of lingerie, briefs, and jersey shorts which he claimed were corporate gifts for clients and officers of foreign and local financial institutions.

The tribunal observed the gifts seemed more as personal items than corporate gifts.

Apart from this, there were receipts amounting to P66,374.28 that were issued in the Philippines even though Nanagas was still abroad.

Source:
courtesy of MANILA BULLETIN

by Effrey G. Damicog

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