Fat allowances of Corona not taxed: Happy days linger at SC?

IN THE SECOND installment of the PCIJ’s four-part report on the self-appointed perks and privileges of the “Gods of Padre Faura,” the Philippine Center for Investigative Journalism looks at how special and redundant allowances and honoraria bloat the take-home pay of the justices of the Supreme Court.

More tellingly, this story by PCIJ Executive Director Malou Mangahas shows how sundry allowances, bonuses, and fringe benefits of the Supreme Court justices had not been not taxed — a matter that had been verified in the case of impeached chief justice Renato C. Corona.

This is according to the reports submitted to the Bureau of Internal Revenue by the high court’s finance and accounting office. But the situation seems to linger still for the most senior justices of the land who continue to receive an excess of extra pay, while other public officials and employee who don’t get as much, fork out more of their hard-earned money to the taxman.

Read Part 2 of the PCIJ special report here.

The wealth of the ‘Gods of Faura’

WHEN CONGRESS IMPEACHED then Chief Justice Renato C. Corona on December 12, 2011 because he had allegedly filed an intentionally flawed Statement of Assets, Liabilities, and Net Worth (SALN), it was a signal for public servants that the document they submitted each year was not to be trifled with.

And when Corona was found guilty by the Senate impeachment court of excluding a substantial portion of his assets in his sworn SALN, transparency in the details of their income and wealth became a clear obligation – and strong public expectation – of all public officials, but especially of the justices of the Supreme Court.

Based on the contents of their 2011 SALNs, however, this lesson seemed to have been lost on the justices of the high court. Not only have most of them apparently underdeclared the true amount of their income – in law, salaries plus allowances – in their SALNs, half of them declined to answer questions about these.

For this joint story project with Solar Network News, the PCIJ validated the data enrolled in the justices’ 2011 SALNs with corporate records and the SALNs that they had filed in prior years.

PCIJ then wrote 14 of the justices separate letters to clarify the apparent disparities in the data enrolled in the various documents. Half or seven of them replied to the PCIJ’s queries.

The other seven, including Chief Justice Ma. Lourdes P.A. Sereno, and Associate Justices Bienvenido L. Reyes and Estela M. Perlas-Bernabe – all appointees of Preisdent Benigno Simeon C. Aquino III – refused to be quizzed about the details of their wealth. Senior Associate Justice Antonio T. Carpio did not respond, too.

But in its recently released Report on Salaries and Allowances for 2011 (ROSA), the Commission on Audit ranked the high court justices among the top 200 best paid, out of 6,489 senior public officials in 864 government agencies in the country.

The 2011 ROSA reveals that seven of the 14 justices are receiving allowances of more than half a million pesos each, and the others, at least P312,000 each. In addition, four justices are being paid more than P2 million in other benefits, incentives, and bonuses.

Of the 10 justices who put a figure in the annual income column of their 2011 SALN form, six declared that they received only P1.08 million to P2.9 million.

Left out was a slew of allowances, bonuses, and benefits that apparently fattened the justices’ take-home pay by two to three times more, or from P2.22 million to as much as P4.63 million.

Part 1 of our report looks at the disparities between the income that 10 justices declared in their SALNs (four others did not disclose at all) and the data enrolled in COA’s 2011 ROSA. It comes with two sidebars: The COA’s ROSA story, and a ‘Money Talk’ guide.

Part 2 looks at the tax implications of this windfall of extra pay that the justices received in 2011.

Part 3 reviews the details of the assets and liabilities of the justices, as they had declared in the 2011 and prior years’ SALNs.

Part 4 focuses on the implications of the unyielding resort to secrecy by the court on transparency, accountability, and integrity of the judiciary – supposedly the main reasons why Congress voted a year ago to impeach a chief justice.

While FOI slumbers in House, bill zips through Senate

WHILE THE LONG-DELAYED Freedom of Information bill appears to have stalled in the House of Representatives, the Senate version of the measure is on a roll in the Philippine Senate.

Both the majority and minority blocs in the Senate have already signaled their support for Senate Bill 3208, as contained in Committee Report 156 endorsed by the Senate Committee on Public Information under Senator Gregorio Honasan.

On Tuesday, Minority Floor Leader Alan Peter Cayetano and Senator Loren Legarda delivered co-sponsorship speeches in support of the FOI bill.

Cayetano said the FOI would be the best Christmas gift that the Senate could give to the Filipino people, as it simply returns to the people the power that they have given to the government.

In fact, Cayetano said the FOI turns “every Filipino into a graftbuster,” by giving him the power to ask for information and demand accountability from his government.

“Ang FOI ay nagtatanggal ng kapangyarihan sa kamay ng iilan at ibinibigay ito sa lahat,” Cayetano said in his co-sponsorship speech.
“Oras na isauli natin ang hiniram nating kapangyarihan sa ating mga mamamayan. Ipasa natin ang FOI.”

For her part, Legarda said the string of scandals that the Senate has investigated over the years was a clear indication of the need for an FOI.

Cayetano told members of the Right to Know Right Now Coalition, an alliance of some 150 media, civil society, and lawyers groups backing the FOI, that almost all the members of the Senate have already committed to support the bill.

In fact, Cayetano said FOI proponents in the Senate could have rushed the measure through the plenary if not for concerns that this would create the impression that the Senate railroaded the measure.

Cayetano said the chamber will wrap up the FOI deliberations in the Senate floor in the next few days, with a guarantee that the measure will be passed by the Senate before the Christmas break.

Majority Floor Leader VIcente Sotto said the Senate leadership had decided to defer consideration of the bill, as some Senators want some more time to study the proposal.

Cayetano’s statements stand in stark contrast to the slow progress of the measure in the House of Representatives. If the Senators had to put the brakes on the FOI in the Senate, the bill’s proponents are complaining that the House leadership has consistently demonstrated a lack of support for the FOI.

The House version of the FOI was finally approved by the House Committee on Public Information, but committee chairman Ben Evardone was quoted as saying he wants to call another committee hearing just so committee members could sign the committee report.

P2-M reward still up for capture of Reyes brothers

THE FAMILY OF murdered Palawan broadcast journalist and environmentalist Dr. Gerry Ortega dismissed reports that the Court of Appeals has already voided the arrest warrants against former Palawan Governor Joel Reyes and his brother, former Coron Mayor Mario Reyes.

Ortega’s wife Patria said that a close reading of the Court of Appeals ruling shows that the court has not voided the arrest warrant against the Reyes brothers.

As such, Patria said the arrest warrant, the murder charges, as well as the P2 million reward money offered for each of the two Reyes brothers still stand.

Earlier last week, the appellate court ruled that the Justice Secretary erred when she ordered the creation of a new panel to determine if charges should be filed against the Reyes brothers. The year before, the first DOJ panel declared that there was insufficient evidence to pin the murder of Gerry Ortega on the Reyes brothers.

The second panel found probable cause against the Reyes brothers, and ordered the filing of charges against them.

“The simple facts are the murder case is still pending in Palawan, the arrest warrant is in effect and there is still a reward of P2 million each for the fugitive Reyes brothers,” Patria Ortega said in a statement.

Mrs. Ortega said reports that the CA ruling in effect voided the arrest warrants against the Reyes brothers were “conscious disinformation” released by the camp of the Reyeses.

Mrs. Ortega also thanked Justice Secretary Leila de Lima for not giving up despite the CA ruling. “While we lament the appellate court’s decision based on technicality, we thank Secretary De Lima and Malacanang for standing their ground against the CA ruling,” she said. “This gives my family continued hope and confidence that there is justice under President Aquino’s administration.”

“What my family wants, what we have only ever asked for, is to be given a fair and honest trial. Up to this day, the Reyes brothers have not yet been arraigned. They continue to refuse to face allegations in court. And they remain international fugitives who escaped by using fake passports,” Mrs Ortega added.

The Reyes brothers have gone into hiding since arrest warrants were issued against them earlier this year. They were last reported to have fled to neighboring Vietnam.

Dr. Gerry Ortega was a radio broadcaster and environmentalist who had been critical of the Reyes brothers.

Ortega was murdered in broad daylight in Puerto Princesa City in January 2011. His killer was immediately caught by police, resulting in the arrest of several accomplices. In the end, a former soldier named Rodolfo Edrad Jr., who claimed he had been hired to organize the murder, surrendered to the authorities and asked to be placed under the witness protection program. Edrad identified the Reyes brothers as the ones who hired him to organize the hit on Ortega.

You may also watch an interview with Patria Ortega and daughter Mika Ortega on NBN-4′s Newslife below.

P2-M reward still up for capture of Reyes brothers

THE FAMILY OF murdered Palawan broadcast journalist and environmentalist Dr. Gerry Ortega dismissed reports that the Court of Appeals has already voided the arrest warrants against former Palawan Governor Joel Reyes and his brother, former Coron Mayor Mario Reyes.

Ortega’s wife Patria said that a close reading of the Court of Appeals ruling shows that the court has not voided the arrest warrant against the Reyes brothers.

As such, Patria said the arrest warrant, the murder charges, as well as the P2 million reward money offered for each of the two Reyes brothers still stand.

Earlier last week, the appellate court ruled that the Justice Secretary erred when she ordered the creation of a new panel to determine if charges should be filed against the Reyes brothers. The year before, the first DOJ panel declared that there was insufficient evidence to pin the murder of Gerry Ortega on the Reyes brothers.

The second panel found probable cause against the Reyes brothers, and ordered the filing of charges against them.

“The simple facts are the murder case is still pending in Palawan, the arrest warrant is in effect and there is still a reward of P2 million each for the fugitive Reyes brothers,” Patria Ortega said in a statement.

Mrs. Ortega said reports that the CA ruling in effect voided the arrest warrants against the Reyes brothers were “conscious disinformation” released by the camp of the Reyeses.

Mrs. Ortega also thanked Justice Secretary Leila de Lima for not giving up despite the CA ruling. “While we lament the appellate court’s decision based on technicality, we thank Secretary De Lima and Malacanang for standing their ground against the CA ruling,” she said. “This gives my family continued hope and confidence that there is justice under President Aquino’s administration.”

“What my family wants, what we have only ever asked for, is to be given a fair and honest trial. Up to this day, the Reyes brothers have not yet been arraigned. They continue to refuse to face allegations in court. And they remain international fugitives who escaped by using fake passports,” Mrs Ortega added.

The Reyes brothers have gone into hiding since arrest warrants were issued against them earlier this year. They were last reported to have fled to neighboring Vietnam.

Dr. Gerry Ortega was a radio broadcaster and environmentalist who had been critical of the Reyes brothers.

Ortega was murdered in broad daylight in Puerto Princesa City in January 2011. His killer was immediately caught by police, resulting in the arrest of several accomplices. In the end, a former soldier named Rodolfo Edrad Jr., who claimed he had been hired to organize the murder, surrendered to the authorities and asked to be placed under the witness protection program. Edrad identified the Reyes brothers as the ones who hired him to organize the hit on Ortega.

You may also watch an interview with Patria Ortega and daughter Mika Ortega on NBN-4′s Newslife below.