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Research

Ombudsman Gutierrez logs a record of going easy on Abalos, Comelec

About a year ago the Office of the Ombudsman did what everyone thought was unthinkable – absolved all officials of the Commission on Elections led by Chairman Benjamin Abalos who are involved in the anomalous P1-billion contract for the purchase of automated counting machines.

It was then unbelievable because the Ombudsman led by Ma. Merceditas Gutierrez in effect doused cold water on a January 2004 Supreme Court ruling declaring null and void the Comelec contract with Mega Pacific Consortium.

In its decision, the High Tribunal had ordered the Ombudsman to determine if public officials and private individuals could be held criminally liable, even threatening contempt for failure to comply with the directive.

Now, faced with an impeachment complaint, Abalos resigns as Comelec commissioner. It seems Abalos has weighed his options and has decided to try his luck with the Ombudsman.

In her almost two years in the Ombudsman, Merceditas Gutierrez has yet to order the filing of charges against a big fish—at least, not to those belonging to the administration camp.

The Ombudsman, of course, prosecuted and won the plunder case against former President Joseph Estrada.

In January this year, Gutierrez approved the filing of graft, extortion and falsification charges before the Sandiganbayan against former Justice Secretary Hernando Perez, his wife Rosario, brother-in-law Ramon Arceo and business associate Ernest Escaler following the $2-million extortion case filed against them by former Manila congressman Mark Jimenez.

Perez was DOJ secretary when Gutierrez was one of the department’s undersecretaries.

Even before the case is filed, Jimenez dropped the case. Jimenez announced last month at the DOJ that he will unconditionally withdraw the plunder case he filed against Perez before the Ombudsman as well as those against his children, wife and Justice Secretary Raul Gonzalez.

Still, in announcing its findings against Perez, Ombudsman officials quickly pointed out that the charges have nothing to do with the government contract with Argentine firm Industrias Metallurgicas Pescarmona Sociedad Anonima (Impsa). They said the Impsa deal has never been part of their investigation on the complaint against Perez.

Uncovering the Impsa deal would expose other Arroyo government officials to possible criminal liability.

Four days after the Arroyo government came to power in 2001, Perez issued a ruling turning over to Impsa the $470-million contract to rehabilitate the Caliraya-Botocan-Kalayaan hydropower plant in Laguna. The DOJ legal opinion signed by Perez removed legal obstacles to the implementation of the contract.

There were allegations that the $2 million is part of an alleged $14-million payoff to some Arroyo administration officials in exchange for the approval of the Impsa deal, which Jimenez brokered.

Jimenez filed plunder charges against Perez, accusing him of demanding money so that he would stop forcing him to execute damaging affidavits against cronies of former President Joseph Estrada. Jimenez was Estrada’s presidential adviser on Latin American affairs.

Bank documents show that Jimenez deposited $2 million to Coutts Bank in Hong Kong in February 2001. Escaler’s Coutts Bank account was the initial transferee of the Jimenez fund. From Escaler’s account, the funds were transferred to Rosario’s and Arceo’s Swiss accounts.

The Perezes initially stated before bank authorities that the money deposited is the inheritance of Rosario and Arceo, then claimed in their joint counter-affidavit that the funds were proceeds of the same of their Batangas property. The Ombudsman said the Perez couple failed to substantiate their claim.

The Ombudsman has yet to act on complaints filed against former Agriculture Undersecretary Jocelyn “Joc-Joc" Bolante for allegedly diverting P728 million worth of fertilizers intended for farmers for Arroyo’s 2004 electoral campaign.

Bolante is a close friend of the First Gentleman. Both are members of the Makati Rotary Club. In July 2006, US Immigration officials in Los Angeles, California apprehended Bolante for having a cancelled visa.

Abalos, like Bolante, is also a friend to the First Gentleman. When Abalos was a judge, Mike Arroyo had appeared as counsel in his sala. They also share a passion for golf.

Abalos also has a history with the Macapagal family: President Diosdado Macapagal, President Arroyo’s father, appointed Abalos as fiscal, and later municipal judge of Pasig.

He is godfather to the son of President Arroyo’s half-sister, Cielo Salgado, and admits to a closeness with Arthur, the president’s brother.

Both Gutierrez and Abalos have been beneficiaries of Arroyo’s rise to power.
President Arroyo had appointed Gutierrez to the constitutional body in December 2005. The appointment drew criticism then because of Gutierrez’s close ties with the Arroyo family.

She was a law school classmate of First Gentleman Jose Miguel Arroyo, and both are incorporators of the Ateneo Law Class 72 Foundation Inc.

The President plucked Gutierrez from the Department of Justice in September 2004 and named her chief presidential legal counsel.

Gutierrez had risen from the ranks at the DOJ, starting as state counsel in 1983 before becoming assistant chief state counsel. Shortly after Arroyo assumed the presidency in 2001, she appointed Gutierrez DOJ undersecretary.

She was acting DOJ secretary from November 2002 to January 2003 when then Secretary Hernando Perez resigned, and in December 2003 to August 2004 with the resignation of then Secretary Simeon Datumanong.

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