By Macon Ramos Araneta

THE Office of the Ombudsman yesterday charged two former administrators and four officials of the Philippine Veterans Affairs Office with defrauding the government of P43.7 million.

Assistant Ombudsman Mark Jalandoni said the accused are Wilfredo Pabalan and Artemio Arugay, both former administrators; Leovigildo Santos, chief accountant; Enrique Sintos, consultant; Heriberto Ruanto, comptroller; and Yvonne Agbayani, chief of Data Center.

The accused are charged with graft and corrupt practices, using the kiting method over a four-year period from 2003 to 2006 to make personal gains out of state funds, according to the Ombudsman?s field investigation office.

The Ombudsman also recommended the filing of malversation case against Pabalan, Arugay, Santos and Sintos.

Pabalan was separately accused of illegal use of public funds or property. He served as PVAO administrator from January 2003 to November 2003. His predecessor, Arugay, served from January 2001 to January 2003.

Ruanto, Santos and Agbayani are facing administrative complaint for serious dishonesty, grave misconduct and conduct prejudicial to the Best Interest of the Service (Sec. 3 of the Civil Service Resolution 060538 and Sec. 52 of the CSC Resolution 99-1936).

Jalandoni said the PVAO officials employed the kiting system and maintained two separate bank accounts to make money from state funds. In this case, Pabalan and the other accused made P43,730,912.58.

Their kiting system involved writing a check for one bank account and depositing it in another just before the end of the accounting period.

Records showed that Pabalan made fund transfers in the total amount of P43,730,912.58 from the Philippine Veterans Bank to the Centennial Savings Bank Inc., a commercial bank which is not authorized or accredited to accept government deposits.

Of the amount, P8,032,438.27 was withdrawn from the CSB as evidenced by 32 ?Instructions to Pay? signed by Pabalan.

The money was transferred to the Philippine Veterans Assistance Commission but it was not used for pension payment but for the settlement of claims of several suppliers.

The Ombudsman also discovered that the accused caused 11 pensioners to be overpaid by as much as P711,428.88.