The Department of Justice (DOJ) found probable cause on the complaint filed by the Philippine Sports Commission (PSC) and the National Bureau of Investigation against former employees involved in a payroll padding scheme.
In a 23-page resolution signed by Assistant State Prosecutor Moises Acayan, Sr. Deputy State Prosecutor Richard Fadullon and Prosecutor General Benedicto Malcontento, the filing of several counts of qualified theft, attempted qualified theft, cyber-related forgery and computer-related fraud have been recommended against Paul Ignacio, Michaelle Jones Velarde and Lymuel Seguilla.
After the fraud was discovered, PSC chief William Ramirez immediately ordered a shake-up and reorganization of the sports agency.
“It is a regrettable incident, but it compelled us to fast-track upgrades and consider a second look at existing processes,” he explained.
Ramirez said that aside from the NBI, which has been helping the PSC from the onset, the Office of the Solicitor General and the Anti-Money Laundering Council have also been providing assistance in ensuring that the funds are returned to the government.
As recommended in the DOJ resolution, cases will be filed in the Regional Trial Court of Imus, Cavite.
In July last year, Ignacio was discovered redirecting funds to his own bank account. He used to handle the payroll preparation for the agency. During the investigation, two more employees were discovered conniving with Ignacio.
They allegedly siphoned off over P14 million from the PSC intended for the monthly allowances of national athletes and coaches.