NEWSFLASH

CORPUS SHOULD ACCOUNT FOR P12-M ANTI-LACSON FUND

Manila, Sept. 25, 2001 - Military intelligence chief Col. Victor Corpus would have to account for the release of at least P12 million in intelligence funds that financed the investigation into his allegation that Sen. Panfilo Lacson has at least $700 million in banks abroad.

Previous reports, including that of Corpus' six-man investigating team led by Col. Mario Chan, showed government spent at least P12 million in the conduct of the probe.

Corpus also has to answer for his unauthorized release of intelligence reports to the media before he furnished Defense Secretary Angelo Reyes the same report.

These were among the recommendations of a Senate legislative research team to the Senate leadership in its 16-page draft report on Reyes' statements before the chamber during a three-day "Question Hour."

The report, signed by majority leader Loren Legarda-Leviste late yesterday, will be referred for plenary approval once the Senate has finished its deliberations on the anti-money laundering bill.

Aside from the two recommendations, the report also called for an inquiry by the Senate blue ribbon committee on the alleged payment of P9 million in "agent's fee" to Blanquita Pelaez for the "trip" on the supposed Lacson overseas accounts.

Pelaez, a PNP supply contractor blacklisted by Lacson, allegedly acted as informer of the Intelligence Service of the Armed Forces of the Philippines team in its month-long probe in the United States. She reportedly accompanied the ISAFP team to the US.

A post-operation report submitted by Chan to Corpus was paid P9 million for giving the ISAFP team the "tip" that Lacson maintains 18 accounts in various banks abroad.

Pelaez' name was first dragged in a controversy involving former Interior Secretary Ronaldo Puno on an aborted handcuffs deal.

The supposed anomalous transaction exposed by former Sen. Miriam Defensor Santiago in the 11th Congress named Pelaez' firm as the receiver of the supposed questionable deal.

The Senate legislative research team, in its report, said the committee investigation would be conducted with the objective of coming up with remedial measures in the use of government funds in this kind of activity, specifically in the payment of intelligence funds to a person involved in the sale of equipment to the PNP.

"Congress and the executive branch must now join forces to bridge the division that led to the perceived waste in the use of public funds. Although intelligence personnel and funds are necessary in the fight against crimes, it must be used in the proper manner and must yield needed and expected results," the report said.

The report likewise urged President Arroyo to issue a memorandum order or a letter of instruction for Corpus to strictly adhere to the military's chain of command.

The LOI or memorandum, the report said, should serve as a stern warning to Corpus not only to prevent himself from committing the same mistake but also to avoid premature disclosure to the public of the ISAFP's operations without clearance from his superiors.

The instruction would also seek to limit the ISAFP chief's discretion in disclosing to the public intelligence reports by having it coursed through first to the secretary of national defense. Only upon approval by the defense secretary can the military intelligence chief divulge classified information to the media.

Reyes, during the question hour proceedings, had said it was Corpus' judgment call whether to release the information to the media.

A closer scrutiny of the answers given by Reyes to senators' queries on this matter showed that what Reyes apparently tried "to avoid being responsible for things happening under his department."

Reyes refused to accede to most opposition senators' observation that Corpus committed a blunder. The senators noted the existence of memorandum circular No. 78 issued by the Office of the President saying those who prematurely and unnecessarily disclose to the media raw and unverified information should be held responsible.

"Corpus may have very good intentions for the people and country but his job may prove too limiting for his idealism and actions. He went beyond the mandate of his job," the report said.

"There were administrative oversights and other legal transgressions committed by responsible officers in the AFP," the report said.

Reyes admitted to senators not knowing who actually funded the month-long "mission" that investigated the alleged Lacson accounts in the US last June.

Senators have raised concern on this issue following a discovery that the use of intelligence funds does not go through the Commission on Audit.

This process, they said, exposes the disbursement of intelligence funds to graft and corruption as well as mismanagement of a government agency.

The Senate report said those who released the funds for the mission must be held accountable in the wake of reports on the use of such funds to settle government's questionable contractual obligations.

Reyes and Malacañang said they would wait for the official report before making any comment.(Malaya)