MANILA, 26 May — An investigating team from the Labor Department (DOLE) has practically absolved the current head of the Overseas Workers Welfare Administration (OWWA) even as it found that the investment of overseas workers’ money was “irregular.”
In a report submitted to Labor Secretary Patricia Sto. Tomas, the investigating team headed by Undersecretary Arturo Brion confirmed earlier public statements made by the labor chief that the investments were unauthorized.
“The investigating committee found that the investment of OWWA funds was irregular because it does not have the approval of the OWWA Board of Trustees,” Undersecretary Manuel Imson told reporters.
Imson, in charge of the department while Sto. Tomas is on official visit to Saudi Arabia, said the committee recommended no administrative sanctions against OWWA Administrator Wilhelm Soriano.
He said the report, however, recommended that the case be brought before the Presidential Anti-Graft Commission (PAGC) and its up to the commission to decide what possible legal action may be taken.
“The PAGC will determine whether there is basis in filing a case with the Ombudsman and for it to identify the officials liable,” Imson said.
The panel particularly pointed out irregularities in the procedures of the OWWA investment in the Smokey Mountain project.
Based on the result of the investigation, Soriano and his predecessor, David Corpin, are the ones responsible in the investment under question.
In February 1995, OWWA under the leadership of Corpin invested 300 million pesos in the Smokey Mountain Project Participation Certificates, a flagship project of Ramos involving a low-cost housing in Tondo, Manila.
When Soriano took over the position of held by Corpin in November 1995, he approved the release of another P200 million in OWWA funds for the same project.
For a period of nine months, OWWA invested a total of P500 million to the Smokey Mountain project without observing “proper level of diligence” in investing the workers welfare funds, Imson pointed out.
Sto. Tomas had earlier noted that the investment in the project has grown to P1.021 billion over the years but OWWA cannot liquidate the funds. Imson admitted that “the evaluation made was superficial as it did not consider other aspects such as background checks and soundness of the project.”
The OWWA investments were questioned based on Sto. Tomas’ claim that as much P1.2 billion of the overseas workers’ fund was placed in ventures that Soriano authorized.
Explaining its limited investigation, the panel said its powers were also limited so that the reason behind the failure of the Smokey Mountain Project pool and its guarantors to redeem the investment certificates was considered beyond its scope.
It also said it was outside of its jurisdiction to probe the National Housing Authority’s feasibility study, the advice and recommendations the Development Bank of the Philippines gave the project as its adviser, the project’s capital structure, particularly the extent of capital contributed by the private sector partner and who the other government sector contributors are; how the funds were used, the future of the project and the remedies that investors can avail themselves of.
Soriano said the committee’s findings was a vindication of sorts for him as it revealed only “procedural lapses and no violations of any law.”
“I am glad that the committee was objective and did not find substantive evidence of misuse and otherwise,” he was quoted by The Manila Times as saying. “ The best that they could do is to find procedural lapses.”
Soriano also welcomed an investigation by the PAGC so that he could explain further that MOI 008, which he claimed was a legal ruling that covered his decision. He said the need for a board resolution only happened in March 25 of this year.
