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The Office of the Ombudsman has obtained the conviction of former Development Bank of the Philippines Chairman of the Board Vitaliano Nañagas II after the Sandiganbayan pronounced him guilty beyond reasonable doubt of two counts of Estafa, and violation of Section 3(i) of the Anti-Graft and Corrupt Practices Act (Republic Act No. 3019).

In a 36-page Decision penned by Presiding Justice Amparo Cabotaje-Tang, the Sandiganbayan sentenced Nañagas to imprisonment of six to ten years for violating R.A. No. 3019;  four to 12 years  imprisonment for the first count of Estafa, and another four to 14 years for the second count of Estafa. He was also ordered to restitute the government the total amount of P377,040.01.

Ombudsman prosecutors successfully established that Nañagas “was able to integrate his personal business with the official travel itinerary using public funds.”  Witnesses testified that in 2004, Nañagas was on official travel to the United States of America.  The official travel included time spent on personal business from May 22 to June 08, 2004.  Upon reimbursement of travel expenses, accused included a total of P310,665.73 for personal expenses which included lingerie, underwear and jersey shorts and other personal gifts. Nañagas also requested reimbursement of expenses worth P66,374.28 incurred in the Philippines even if he was on travel abroad in the US.

The Sandiganbayan ruled that “the accused also employed deceit in his claims for reimbursement stating that the expenses were authorized, lawful, necessary and incurred in the discharge of official duties when in fact, some of his expenses were used for personal matters in the USA, and that some of the expenses were incurred in the Philippines while he was still in the USA.”

In giving credence to the prosecution, the anti-graft court stated that, “while the members of the Board and the Chairman are entitled to allowable expenses, the same should be in connection with the discharge of their duties and responsibilities as such.”###