'Euro generals' cash came from PNP intel fund'
abs-cbnNEWS.com | 10/24/2008 9:02 PM
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The chief of the Philippine National Police said Friday that a P6.9 million cash advance given to retired police comptroller Eliseo dela Paz came from the PNP's intelligence fund allocated for the purchase of intelligence equipment.
A letter submitted by Director General Jesus Verzosa to the Senate said dela Paz obtained the P6.930 million cash advance from PNP's intelligence fund "which he [dela Paz] processed before my assumption of office as PNP Chief."
Verzosa officially took over the top PNP post on September 27, replacing Director General Avelino Razon Jr.
"The cash advance was secured by him from P/Supt. Samuel Rodriguez, the Disbursing Officer for the Directorate for Intelligence through P/SSupt. Tomas Rentoy, Chief, Budget Division, Directorate for Comptrollership. The funds are intended for possible purchase of intelligence equipment and similar products," said Verzosa in a letter addressed to Sen. Manuel Roxas.
A check on the 2008 General Appropriations Act showed that the PNP had a total budget of P40.7 billion for this year, of which P434,339,000 is allocated for PNP intelligence services including conduct of intelligence and counterintelligence activities nationwide.
The PNP chief has ordered Rentoy's suspension pending a full investigation on the allegedly irregular disbursement of the PNP funds.
A source told ABS-CBN News that Rentoy was named to the post last October 1. His appointment paper was allegedly signed by dela Paz's successor, Chief Superintendent Romeo Hilomen.
"Presently, it is Rentoy who gave the cash advance to dela Paz and we still have to wait the statements that are now being given to the investigating body," Verzosa said.
The PNP chief clarified that only Rentoy and dela Paz are being investigated by the Directorate for Investigation and Detective Management, which is headed by Chief Superintendent Raul Bacalzo. He said he had ordered the DIDM to finish the investigation as soon as possible so he can submit the results to the Senate on Monday.
Verzosa also requested for an executive session in the next Senate hearing on the PNP cash disbursement, which is scheduled on Monday. "An executive session is necessary because of the security implications of the circumstances surrounding the incident," he said in the letter to Roxas.
The source of the 105,000 euros or P6.9 million cash has been in doubt after Russian customs authorities discovered the undeclared cash on dela Paz and his wife as they were boarding a Manila-bound plane in Moscow last October 11.
Dela Paz has insisted that the P6.9 million found on his person was a contingency fund for the PNP delegation there. Opposition Sen. Panfilo Lacson has pointed out that there is no item for a contingency fund in the PNP budget this year.
Money changer also in trouble
A local money changer shop is in hot water after its owner admitted being the source of the euros found on dela Paz earlier this month.
Gal Wadja, manager of F&S Money Changer along Padre Faura, said an unnamed person would go to their shop or call in advance to buy euros every week.
"Sometimes he would buy 5,000 euros, sometimes 2,000. It wasn't the full P7 million. We only found out that the person was working for dela Paz after the central bank asked us for certification," Wadja said.
The Bangko Sentral's Anti-Money Laundering Council said the money changer failed to report the suspicious activity to authorities.
Under Circular 471, Section 9 ng BSP rules, banks and money exchange shops are required to report any foreign exchange transaction exceeding P500,000.
The AMLC said dela Paz failed to declare the 105,000 euros when he left the country. It also questioned dela Paz's decision to buy euros instead of dollars, which is the international currency.
Verzosa, meanwhile, belied news reports that dela Paz had wired the P6.9 million worth of euros before he left Russia.
"Until now there is no transfer yet, but the money is still with the Russian government," the PNP chief clarified.
He said that according to dela Paz, he left the money in Russia and asked the authorities there to just wire-transfer it to the PNP's accounts.
