The Commission on Audit (COA) held former President Commission on Good Government (PCGG) chair Juan Andres Bautista and four other officials liable for selling three sequestered properties belonging to the Marcoses at prices below their estimated market value.
In a 16-page decision, the commission denied the former PCGG officials’ petition for lack of merit, upholding the 2015 notices of charge (NCs) against them totaling P190 million for the undervaluation of properties sold between 2012 and 2014.
These properties included the Banaue Inn Compound and JY Campos Compound, both in Baguio City, and the IRC Mapalad Property in Paranaque City.
Aside from Bautista, also implicated were then COA commissioners Nelson Acebo and Ronald Chua, bids and awards committee chair Richard Amurao, and Alfredo Dela Paz, director of the Asset Management Division.
The case dates back to 2014, when the PCGG was asked to submit an explanation after an audit team found that the three properties were sold at prices ranging from 2.6 percent to 37.3 percent below the minimum allowable limit set by the COA Technical Services Office (TSO) appraisal.
Dela Paz and Amurao explained that they referred to the market data approach, which was based on the sales and listings of comparable properties in the vicinity of the properties at the time of the appraisal.
Unsatisfied with the justification, the NCs were issued against the PCGG officials.
Based on the audit team’s computation, the estimated value of the properties was P607 million, but they were sold for P417 million in total-a P190-million difference.
In dismissing the petition for review, the COA disagreed with the PCGG officials’ argument that they were deprived of due process when the state auditors failed to attach a copy of the TSO appraisal reports to the letter before issuing the NCs.
According to the COA, the petitioners were given sufficient notice and all remedies to present their side from the time the NCs were issued until the filing of the petition.
‘Petitioners were the approving authority and the members of the BAC whose participation involved the evaluation of bids. They should have exercised due diligence in ensuring that there was no loss suffered by the government in the disposal of the said properties,’ the commission pointed out.
It added that the former PCGG officials cannot assert good faith and regularity in the performance of official functions, saying that ‘they should be held liable for the under-collection of said government revenues.’
The ruling did not explicitly indicate the enforcement or procedural steps after the COA’s findings, but based on the commission’s procedures, a charge is settled by paying the liability ‘or by such other applicable mode of extinguishment of obligation as provided by law.’
In its ruling, COA also noted the possible invalidity of the PCGG’s move to sell the assets sequestered from the Marcos family, saying that this ‘may not have prior approval of the Sandiganbayan.’