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PRESIDENTIAL ANTI-GRAFT COMMISSION (PAGC)

PRESS RELEASE

OCTOBER 20, 2006

PALACE SUSPENDS ATO CHIEF FOR FALIURE TO LIQUIDATE CASH ADVANCES

Malacañan issued a three-month suspension without pay to Air Transportation Office (ATO) Chief Nilo C. Jatico for failure to liquidate his cash advances for 2003-2004, amounting to PhP1.2 million within the period prescribed by law.  

The case stemmed from a complaint filed by an ATO employee last July 27, 2004 but withdrew his complaint on January 24, 2005. Despite the withdrawal of complaint, PAGC make the investigation motu propio and conducted a fact-finding inquiry which found a prima facie case against Jatico.  

Investigation showed that Assec. Jatico continued to draw funds beyond the specified limit set for extraordinary and miscellaneous expenditures of certain government officials. As a department assistant secretary, Jatico can only draw CA amounting to Php85, 000.00 per year as prescribed by the General Appropriations Act. 

COA Audit Report for 2003 reflected Assec. Jatico’s unliquidated cash advances has totaled Php 90, 961,339.32, and recommended that ATO management strictly observe the rules and procedures for cash advances.  

For the following year, the respondent incurred unliquidated cash advances amounting to Php 1,191,145.52. Resident Auditor Mary Magdalen Razo reported that Php 425,025.87 of that amount was used for travel and the rest was used by the respondent for hosting/conference/meetings for 2004.  

PAGC has earlier submitted a resolution to the Office of the President last April 4, 2006 recommending the immediate dismissal from the service of Assec. Jatico with the corresponding accessory penalties of forfeiture of financial benefits and perpetual disqualification to hold public office. 

The Palace, however, modified the recommendation through a resolution signed by Executive Secretary Eduardo Ermita last Oct. 16, 2006, citing that the respondent, while remiss of his obligation to render proper accounting within the prescribed period by the GAAM, his belated liquidation  has not caused 'undue injury' to government. Therefore, it can be considered as 'simple neglect of duty.' But Jatico is also sternly warned that repetition of the same offense would merit a more severe penalty.  

"Failure to comply within the prescribed period of time for proper liquidation of cash advances is not an excuse. I hope that this will serve as a warning to all government officials," PAGC Chairman de Guzman closes. #

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