‘Return Ill-Gotten Money’

TAXMAN FALLS: Nieto Racho former chief of the BIR Special Investigation Division, was handcuffed as he awaited for his turn to be arranged for the falsification of public documents charge in the sala of Cebu City RTC Judge Macaundas M. Haji-rasul in this file photo.

A former official of the Bureau of Internal Revenue (BIR) office in Cebu was found guilty of failing to disclose his P5.8 million bank deposit in his Statement of Assets, Liabilities and Net Worth (SALN).

Nieto Racho, former chief of the BIR Special Investigation Division, was ordered “to reconvey or return” to the government the amount which a Cebu City court deemed as “ill-gotten.”

“It is established in the instant case that the amount under controversy is manifestly and patently disproportionate to respondent Racho’s salary as a public officer of the BIR and to his other lawful income,” said Judge Alexander Acosta of the Cebu City Regional Trial Court Branch 9 in his decision which was released recently.

In case Racho fails to return the amount to the government, the court ordered the forfeiture of his properties of corresponding value.

Racho was the first government official in Cebu to be charged in court for failing to declare all his assets in his SALN.

In 1999, Racho, who was revenue district officer (RDO) of the BIR in Talisay City, declared P15,000 as “cash in bank” in his SALN which government officials and employees are required to submit annually (see box).

As RDO of Talisay City, his annual salary was P220,093.

The Ombudsman-Visayas, which was led by former Assistant Ombudsman Virginia Palanca-Santiago, conducted a fact-finding investigation and found out that Racho didn’t disclose the P5.8 million in bank deposits.

Racho’s cash deposits were certified by the Metropolitan Bank and Trust Company-Cebu Tabunok Branch (P2.9 million); the Philippine Commercial International Bank-Magallanes Branch (P1.2 million); and Bank of the Philippine Islands-Cebu General Maxilom Avenue Branch (P1.6 million.)

Racho also failed to declare two business enterprises – Angelsons Lending and Investors Inc. and Nal Pay Phone Services.

According to the anti-graft office, Racho “deliberately failed to disclose important facts which he has the legal obligation to do so, thereby making untruthful statements in a narration of facts, to the damage and prejudice of the government.”

Falsification

He is facing at least two criminal charges for falsification of public documents which remain pending before the court.

A separate case for “forfeiture of unlawfully acquired money” was decided by Judge Acosta after Racho failed to appear in court.

Racho’s lawyer decided to forego the presentation of any evidence in court since their supposed witnesses are no longer willing to testify.

Judge Acosta, in his ruling, said that any amount, which a public officer or employee has obtained and was manifestly out of proportion to his or her salary, is presumed to have been unlawfully acquired.

“If the respondent is unable to show to satisfy the court that he has lawfully acquired the property in question, then the court shall declare such property forfeited in favor of the state,” he said.

Victory

Deputy Ombudsman for the Visayas Pelagio Apostol considered the court’s ruling against Racho as a victory in their campaign against corruption.

Apostol reminded government officials and employees to submit their SALNs and not to declare all their wealh so as to avoid facing legal suits.

“We will continue to monitor the SALNs. This document has been a very important device in fighting corruption. Any ill-gotten wealth has to returned to the government,” he said in a phone interview yesterday.

Apostol, however, admitted that it won’t be easy for them to spot deficiences in the SALN without anyone alerting the anti-graft office.

“We need a report from the community so we could conduct a lifestyle investigation on a concerned government officials and employees,” he said.