Senator Roxas to gov't: Move fast to attach Legacy assets

Liberal President Senator Mar Roxas last Friday asked three government agencies to move fast to attach the assets of businessman Celso de los Angeles and his failed Legacy Group of Companies to protect planholders and investors from losing their investment.

Roxas made the call after transmitting to the three government agencies copies of documentary and testimonial evidence gathered by the Senate in its investigation into the Legacy mess triggered by an inquiry into the financial problems of the pre-need industry.

Senator Mar Roxas comforts a crying Bernadette Raymundo who told Roxas that she lost her life's savings because of the collapse of the Rural Bank of Subangdaku, one of the 13 Legacy banks that collapsed because of mismanagement by controversial businessman Celso de los Angeles. Roxas met Raymundo at the assembly hall of Siliman University in Dumaguete City yesterday during a forum with victims of the Legacy collapse organized by the Parents Enabling Parents (PEP) Coalition.

He said the documents from the Senate hearing transmitted to the Philippine Deposit Insurance Corporation (PDIC), the Securities and Exchange Commission and the Department of Justice (DoJ) are more than enough to cause the attachment of De los Angeles' assets, many of which are part of the trust fund of the two collapsed Legacy pre-need companies and the assets of the 13 Legacy banks that declared bankruptcy late last year.

He said the evidence also prove allegations that De los Angeles engaged in illegal business transactions and diverted Legacy funds for his personal use.

"Considering the seriousness of these allegations, we trust that your office will conduct an in-depth investigation on the matter and expeditiously act to cause the attachment of all assets that may have been acquired using the trust fund and deposit accounts of Legacy policy holders and depositors," he said in separate letters sent to PDIC president Jose Nograles, SEC chairperson Fe Barin and Justice Secretary Raul Gonzalez.

Documents transmitted to the PDIC includes copies of the Transcript of proceedings of the four committee public hearings (February 2, February 10, March 2 and March 9) and the sworn affidavits of former Legacy chief executive officer Carolina Hinola, chief finance officer Namnama Pasetes-Santos, Paul Montenegro, Myrna Axalan and Jeannette Ortiz.

The SEC and the DoJ, on the other hand, were given copies of the Transcript of proceedings of the 4th public hearing last March 9 and sworn affidavits of Hinola and Santos.

The Ilonggo senator said the affidavits of Hinola and Santos are relevant to the investigations being conducted by the three offices, particularly on De los Angeles' alleged misuse and misappropriation of the trust funds and bank deposit accounts of the Legacy group of companies.

Also, the Senate committee wrote House Speaker Prospero Nograles and furnished his office certified true copies of the sworn affidavit of Santos and vouchers and checks showing the disbursement of a total of P1.8 million to Paranaque Rep. Eduardo Zialcita drawn from Legacy' pre-need trust fund.

Santos had testified that Legacy Consolidated Plans Inc. (LCPI) paid Zialcita a consultancy fee of P100,000 monthly on the instructions of De los Angeles. The checks, she claimed, were received by the congressman's former secretary identified as one Leila Omana.

Zialcita is a second cousin of SEC Commissioner Jesus Martinez, who has been accused of "protecting" Legacy's interests within the SEC. Witnesses have alleged the Legacy group paid for a P5 million house and lot in Paranaque that Martinez gave his son.

"In observance of the inter-parliamentary courtesy customarily practiced by members of both houses of Congress, I transmit herewith (these documents) for your reference and in support of whatever action you may deem appropriate under the circumstances," Roxas said.

He added members of the House can examine and verify the original vouchers and checks, which are in the custody and safekeeping of the Senate Blue Ribbon Oversight Office Management (BROOM).

Sunday, March 15, 2009 | posted in carol hinola, celso de los angeles, ed zialcita, fe barin, jose nograles, legacy group of companies, mar roxas, namnama pasete-santos, prospero nograles, raul gonzalez | 0 comments [ More ]

Senator Roxas to planholders: Senate will pursue Legacy scam

The Senate will not bring to a close its inquiry into the financial state of the pre-need business until it has established liabilities of government officials and private individuals in the reported looming collapse of the industry, Liberal President Senator Mar Roxas promised aggrieved plan-holders.

"Makakaasa kayo, hindi namin titigilan ito. Kawawang-kawawa naman ang ating mga kababayang nabiktima nitong mga scam na ito kung ihihinto natin ito (We will not stop this investigation in the interest of the victims of this scam)," he said.

"Malinaw na malinaw, parang bumuka nga langit at lumabas ang kaliwanagan. Nakita natin kung paano minanipula ni Celso de los Angeles 'yung pera ng Legacy para sa kanyang pansariling interest (As if the skies have opened, it is very clear now how Celso de los Angeles manipulated Legacy's funds for his personal interest)," he added.

The senator said he will continue the probe for the sake of the thousands of plan holders and depositors whose dreams have disappeared due to the Legacy mess, and will not let politics compromise this goal.

"That's one vote I don't care losing," Roxas said in relation to a swipe made by De los Angeles that he would vote for "anybody except... you just fill in the blanks."

The chairman of the Senate trade and commerce committee looking into the pre-need business and the collapse of De los Angeles' Legacy group, revealed that the committee has been deluged with calls from other potential witnesses volunteering to testify and bare more information on the illegal transactions of the Legacy group of companies.

"Sinisiguro po muna natin na may dokumentasyon. Nakita naman natin ang nangyari noong Lunes, merong dokumentasyon ang mga witnesses kaya nahirapan si De los Angeles at si (SEC Commissioner Jesus) Martinez na paikutin ang mga senador (We are making sure that these witnesses have documentary evidence to back their allegations. Like the witnesses who testified last Monday, they have documents with them that was why it was hard for De los Angeles and Martinez to contradict their claims)," he added.

Legacy Consolidated Plans Incorporated Chief Operating officer Carol Hinola has testified that Martinez was a "close friend" of De los Angeles who helped the latter with his problems at the SEC. She had also claimed the Legacy Consolidated Plans Inc. (LCPI) had paid for a P3.3 million house and lot which Martinez gave to his son. Martinez is also a second cousin of Paranaque Rep. Ed Zialcita, whom former chief finance officer Santos alleged was paid P1.8 million by LCPI in "consultancy fees."

The two witnesses have claimed that pre-need premiums were diverted to De los Angeles' personal bank accounts and for his mayoralty bid during the 2007 elections.

Roxas said once De los Angeles makes true his commitment to allow senators to examine his private bank accounts, the committee would ascertain if company funds were indeed siphoned off to his personal funds.

"Iisa lang ang alam natin, ang ating mga kababayan, ang mga mahihirap na nagtiwala, nag-ipon, kinapital nila 'yung kanilang pawis, 'yung kanilang dugo, 'yung kanilang luha, wala silang pinanghahawakan ngayon. Susundan natin ang pera, aalamin natin ang buong katotohanan dito para sila naman ay may tsansa na ma-recover ang kanilang mga pera (There is only one truth in all these: those who put their trust in Legacy, those who invested their hard-earned monies in Legacy, they are now holding empty bags. We will follow the paper trail of the Legacy funds and establish the truth so they can recover even just a small amount of their investments)" he vowed.

The Senate trade and committee had provided security and personal protection to the two former Legacy key officers. Roxas said he would coordinate with other committee members and with Senate President Juan Ponce Enrile on the need to also provide security to the other witnesses.

Tuesday, March 10, 2009 | posted in carol hinola, celso de los angeles, ed zialcita, jesus martinez, juan ponce enrile, legacy group of companies, mar roxas, pre-need code of 2008 | 2 comments [ More ]