MANILA, Philippines – The bail hearing of former President Gloria Macapagal-Arroyo’s co-accused in a plunder trial started Monday, October 29, and is expected to be a sneak peek into the evidence the prosecution will present against Arroyo.

Former Philippine Charity Sweepstakes Office (PCSO) officials Benigno Aguas, Sergio Valencia and Manuel “Manoling” Morato — who are facing P366-M plunder charges on allegations they misused the funds of PSCO during Arroyo’s presidency — filed a petition for bail, which the anti-graft court Sandiganbayan addressed on the same day of Arroyo’s arraignment.

The prosecution said in court that the evidence it will use at the bail hearing will be similar to the evidence it will submit during the trial of Mrs Arroyo.

In the event that Aguas, Valencia and Morato are granted bail, the decision would reflect on the weakness of the evidence not just against them, but against Arroyo for the plunder trial as well.

Aguas and Valencia were seen in court, while Morato failed to attend the hearing following an open heart surgery. A medical report on Morato stated that the 79-year-old former PCSO official needed in-hospital rehabilitation for 8 days, and an additional 6 weeks to fully recover.

Earlier, Arroyo had refused to enter a plea pending a verdict by the Supreme Court on her petition to annul the plunder trial against her.

Arroyo, unlike her co-accused, has not filed a petition for bail. Plunder is a non-bailable offense.

Audits show violations

The prosecution presented PCSCO board of directors member Maria Aletta Tolentino as its first witness against Arroyo’s camp, as well as documentary evidence including financial audits by the Commission on Audit (COA).

Tolentino, a lawyer, accountant and professor, told the court that financial audits showed “violations of internal audit rules” in the PCSCO during Arroyo’s presidency.

Among the irregularities she mentioned included excessive disbursements of confidential and intelligence funds, merging of internal audits within PCSO, and funds meant for the PCSO’s Prize Fund that were maintained in the Main Fund.

Tolentino also testified that financial statements indicate the PCSO was operating on deficits.

Defense lawyers argued that the prosecution’s evidence did not support any of the 3 charges in the plunder case that accused Morato, Valencia and Aguas of diverting funds and converting proceeds, raiding public treasury for their benefit, and taking advantage of their positions.

Interruption

The session was temporarily stopped at about 11:45 am after the Sandiganbayan First Division justices received a notice on the Supreme Court’s decision that a Temporary Restraining Order had been issued regarding the plunder trial.

It resumed 5 minutes later after the justices read out the notice and clarified that the TRO applied only to COA’s Nilda Plaras, another co-accused.

Arroyo’s counsel Anacleto Diaz welcomed the news of the TRO, however, saying it gave the former president’s camp hope that the High Court would decide similarly on the petition filed by Arroyo, and grant her request to stop the plunder trial against her.

Diaz said the granting of Plaras’ petition, is an “indication the issue of probable cause [should] be painstakingly examined.” – Rappler.com