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Ombudsman orders the filing of graft charges against ex-PTV 4 general manager
13 June 2013, press release Ombudsman Philippines

     OMBUDSMAN Conchita Carpio Morales ordered the filing of graft charges against former People’s Television Network, Inc. (PTNI) General Manager Jose Isabelo and a PTNI consultant for the irregular disbursement of more than P13M in sales commissions from 2006 to 2008.

     In a 10-page Resolution approved on June 7, 2013, Isabelo and Rolando Luna, PTNI’s Marketing Services Consultant, were ordered charged with 28 counts of violation of Section 3(e) of Republic Act (R.A.) No. 3019 (Anti-Graft and Corrupt Practices Act).

     The Resolution narrated that Luna was contracted as “marketing services manager” from January 1, 2005 to March 31, 2011 successively. His contracts specifically state that “this contract does not create an employer-employee contract between [PTNI] and [Luna], xxx and that the latter is not entitled to benefits enjoyed by the regular personnel[.]”

     Despite Luna’s employment status, however, he was paid by the PTNI a total of P13,829,431.42 representing sales commissions from 2006 to 2008 for advertising spots and placements.

     Complainant Renato Caluag alleged that Luna was not entitled to said commissions since there was no Board Resolution authorizing such compensation, as required under Section 15 of RA 7306 (Charter of the People’s Television Network).

     In his counter-affidavit, Isabelo argued that Board Resolution No. 2004-014 authorized the PTNI to grant sales commissions to its personnel.

     The Resolution found that “the wording of the Board Resolution is clear that sales commissions may only be granted to PTNI employees ‘who initiate marketing efforts and generate revenue for the Network’,” and not to consultants like Luna.

     â€œFrom the pieces of evidence available vis-a-vis the feeble justifications proferred by respondents, there is no doubt that Luna was not entitled to the disbursed amount of P13,829,413.42,” the ruling stated in finding that Isabelo’s actions gave Luna unwarranted benefits.

     It added that despite Luna’s knowledge of the provisions of his contract, he still sought sales commissions regularly, which “actions– in seeking sales commissions, signing disbursement vouchers and encashing checks – reveal a concerted effort with his co-respondent to defraud the government.”

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