CA to review Ombudsman's suspension order vs Pichay

The Courtof Appeals has taken cognizance of the petition of Local Water Utilities Administration (LWUA) chair Prospero Pichay, whose preventive suspension was ordered by the Office of the Ombudsman last week. Pichay's petition was raffled to the CA Third Division, composed of Associate Justices Estela Perlas-Bernabek, Bienvenido Reyes, and Elihu Ybanez. Pichay has sought redress from the appellate court in questioning the validity of Acting Ombudsman Orlando Casimiro's order. The former Surigao del Sur representative has asked the court to issue a temporary restraining order to stop his preventive suspension, adding that Casimiro committed grave abuse of discretion when he issued the suspension order. Last week, the Office of the Ombudsman placed Pichay under a six-month preventive suspension for his alleged misuse of LWUA funds in the acquisition of a troubled thrift bank in 2008. Casimiro said the investment of some P780 million in the cash-strapped, Laguna-based thrift bank Express Savings Bank Inc. (EXSBI) may be unlawful. "(It is) imperative on the part of the Office of the Ombudsman to immediately place him under preventive suspension, as the need for precautionary measures against possible abuse of the prerogatives of his office may escalate under the circumstances," he said in the order. Casimiro said the suspension came after several LWUA officials filed the complaint against Pichay and other trustees. He said the LWUA officials also alleged that the trustees unlawfully authorized a payment of P4 million to increase the authorized capital stock of EXSBI. The acting Ombudsman added that the complainants said the respondents violated BSP Circular No. 309 when they failed to secure the approval of the Monetary Board on the sale or transfer of shares before disbursing P480M in LWUA funds. With the move, the LWUA gained control of the 20 percent of EXSBI’s voting stock. — Sophia Dedace/RSJ, GMA News