paarl fact-finding board on the status of the missing time deposits
TRANSCRIPT
PAARL FACT-FINDING BOARD REPORT ON THE STATUS
OF THE TIME DEPOSIT FUND
OF THE ASSOCIATION
PAARL FACT-FINDING TEAM
Fe Angela M. Verzosa (Lead)
Dionisia M. Angeles
Salvacion M. Arlante
Lolita P. Gonzales
Rebecca M. Jocson
Marlo C. Chavez (Alternate)
Rodolfo Y. Tarlit (Alternate)
Belen M. Vibar (Alternate)
Submitted to:
Sonny Boy Tadena Manalo, 2013 PAARL President
25 March 2013
PHILIPPINE ASSOCIATION OF ACADEMIC AND RESEARCH LIBRARIANS
Rm. 301, THE NATIONAL LIBRARY BUILDING, T.M. KALAW ST., ERMITA
1000 MANILA, PHILIPPINES http://sites.google.com/site/paarlonlineorg
2
Executive Summary
“For the love of money is the root of all evil: which while some coveted after, they have
erred from the faith, and pierced themselves through with many sorrows.” [1 Timothy 6:10]
A Fact-Finding Board was created on 14 February 2013 by the 2013 Board of Directors,
barely a week after its discovery of a fake Time Deposit Certificate placed with BPI
Family Savings Bank-Pedro Gil Branch on 8 December 2010. Specifically the fact-
finding team led by past President Fe Angela M. Verzosa was mandated to investigate
into the circumstances surrounding the missing time deposits in the amount of P1.25
million, and to provide evidence-based findings in order to establish a documented basis
upon which recommended actions for the immediate implementation of the 2013 Board
may be done, in consultation with the general membership in a special meeting to be
called for this purpose.
After two weeks of evidence-gathering, three hearings were conducted: a Preliminary
Hearing, a Full Investigative Hearing on the Testimonies of the 2010 Board, and a
Clarificatory Hearing from the 2011-2012 members of the Board of Directors.
Following the money trail was the easiest part of this investigation; documentary
evidences collected by the Board clearly established the following facts:
• On October 18 and November 18 of 2010, two blank bank withdrawal slips pre-signed by the
2010 Treasurer, facilitated the withdrawal in cash by the 2010 President of the entire time deposit
earnings placed in a savings account with Banco de Oro in the amount of almost Php 450,000.
• On the same day of November 18, the time deposit certificate placed with the same bank five
years ago in the amount of more than a million pesos, was withdrawn by said President, armed
with another pre-signed blank withdrawal slip, which he deposited to the account of PAARL held
by BPI Family Savings Bank (BFB) – Pedro Gil Branch, two weeks later.
• A week after it was deposited, on 8 December 2010, the one million plus was withdrawn through a
blank check issued by said Treasurer, which enabled said President to encash the check, and
deposit part of the cash (Php 239, 355.74) to open a savings account in the name of PAARL
Scholarship Fund.
• With the balance from this check withdrawal amounting to Php 800, 644.26 and the interest
earnings of Php 449,355.74 (which were earlier withdrawn in cash) totaling to P1.25 million, the
2010 President and the 2010 Treasurer, by their signatures on the certificate as depositors, made it
appear that the entire amount was invested in a time deposit with BPI Family for a period of five
years, with annual interest at the rate of 4%.
• So as not to stir up the hornet’s nest, a Php 50,000 cash deposit was made to the Scholarship Fund
exactly one year after the opening of both the TD and the savings accounts, to make it appear that
the TD has earned its first annual interest.
It took another year before the TD was discovered to be fake, and only because interest
income that was expected to be posted for the second year did not come. This raised
undue alarm, and prompted the 2012-2013 Treasurer to visit the bank to claim the
interest, and, upon verification, found that the TD certificate, which lay dormant inside
the vault of Ateneo Professional Schools Library, was confirmed by the bank as
“spurious, falsified, and fictitious”, and the money that was meant to be invested in it
was, without doubt, gone.
3
Table of Contents
Executive Summary 2
Fact-Finding Board 4
Scope and Purpose 4
Conduct of the Inquiry 5
Summary of the Hearings 6
Problems Encountered 8
Background 9
Findings: Facts and Sequence of Events 10
Evaluation of Findings: Conclusions 17
Recommendations 23
List of Documents Collected 30
End Notes 33
4
The Fact-Finding Board
A Fact-Finding Board to be led by past president Fe Angela M. Verzosa as Chairperson,
was created on 14 February 2013 by the governing Executive Board of the Philippine
Association of Academic and Research Librarians (PAARL) represented by the 2013
President, Sonny Boy Tadena Manalo. Tasked to investigate the incident involving the
missing Time Deposits of the Association under the name of PAARL Scholarship Fund,
this Fact-Finding Board was initially composed of four other past presidents of the
Association as members, namely: Dionisia M. Angeles, Salvacion M. Arlante, Lolita P.
Gonzales, and Rebecca M. Jocson. Assisting the members as alternates were three other
past presidents: Marlo C. Chavez, Rodolfo Y. Tarlit, and Belen M. Vibar.1
For the purpose of conducting inquiries, investigations and hearings, the fact-finding
board was vested with the power to administer oaths and affirmations, interview the
officers and members of the Executive Board for the years 2010-2013, examine other
witnesses, and evaluate documents presented by the 2010-2013 Executive Board.
On the basis of these investigations and hearings, the fact-finding board was mandated to
make findings of fact regarding the issues and circumstances surrounding the incident , to
draw conclusions, and finally, to submit recommendations to the 2013 Executive Board
within ten (10) days after completion of its hearings. The written report shall be
submitted privately to the President of the 2013 Board and to each of the parties involved.
Scope and Purpose
This internal investigation was intended to be a fact-finding exercise, not a criminal
investigation, or a trial. The general purpose is to find out what actually happened and
identify what action/s will be needed to protect the organization from loss or shame,
damage to reputation and like-minded consequences, and to consider the following
potential outcome of the inquiry:
• administrative or disciplinary action;
• recovery of monies involved;
• mediation between aggrieved parties
• changes to policies and procedures in governance
.
As a fact-finding exercise, the inquiry might also serve as a preliminary analysis to
determine whether an investigation leading to prosecution should be undertaken by the
incumbent Board.
Specifically, this Fact-Finding Board was mandated to:
5
• provide an objective and independent investigation into the circumstances
surrounding the missing time deposits placed originally with Banco de Oro (Taft
Avenue branch), and subsequently transferred to BPI Family Savings Bank
(Pedro Gil Branch) in the amount of P1.25 million in December 2010;
• carry out a thorough examination of the facts, evaluate the testimonial and
documentary evidences to be presented, and provide evidence-based conclusions
and reporting in order to establish a documented basis upon which a decision can
be made by the 2013 Executive Board as to the liability, culpability, and/or
accountability of the affected members of the Executive Boards, whether
individually, jointly, or collectively, particularly of the parties involved in the
incident; and, to
• assess any potential or developing problems that could impact on the confidence
of the members on the governance of the Association, and on the image of the
association resulting in damage to its reputation, by disclosing the conclusions
arrived at by the Fact-Finding Board to the general membership in a special
meeting to be called for this purpose.
Conduct of the Inquiry
The conduct of this investigation was based on evidence, not mere suspicion or
speculation. The investigation process included the following steps:
1. Receipt of Allegation or Complaint
2. Preliminary Review and Hearing- allegations and concerns were reviewed to
determine the significance, immediacy or urgency of the matter, the most
appropriate approach to assess the facts, and whether sufficient information exist
for an investigation.
3. Assignment of Tasks
4. Fact Finding - an objective process was used to gather information internal and
external to the organization. This fact-finding process included gathering official
bank documents from Banco de Oro and BPI Family Savings Bank, conducting
interviews of the members of the Board of Directors for the years 2010-2013,
aside from an examination of the records presented. All interviews were recorded
and transcribed. Based on professional standards, information gathered were
evaluated to assure that there was adequate evidence to support a conclusion.
5. Reporting of Results
6. Post-investigation Review - after assessing the report, the incumbent Board was
expected to evaluate the related internal controls and compliance impact resulting
from the investigation. The 2013 Board was expected to determine what action
would be taken, and to initiate a special meeting of the general membership on the
result of the investigation after the report had been submitted and disseminated to
the parties involved
6
Summary of the Hearings
The formal inquiry was open to all the parties involved, the Council of Elders, members
of the 2010-2013 Board of Directors, and past presidents of the Association. The
hearings were conducted fairly and objectively, with consideration provided to the
following:
• Background information leading to the incident
• Input from witnesses
• Responses to the allegations
• Analysis of the facts; and
• Conclusion
Three hearings were conducted after notices and invitations were sent: a Preliminary
Hearing, a Full Investigative Hearing of the Testimonies of the 2010 Board, and a
Clarificatory Hearing from the 2011-2012 members of the Board of Directors.
The Preliminary Hearing was conducted on 28 February 2013 and held at the Meeting
Room of the DLSU Learning Commons, on the 8th
floor of the Henry Sy Building,
DLSU-Manila, at Taft Avenue from 9am till 2pm. In attendance were members of the
2013 Board of Directors, past presidents, and some members of the 2010 Board of
Directors. After taking their Oath of Affirmation, the first to be heard was the 2013
President, Sonny Boy T. Manalo, who related the circumstances that led to his calling for
an emergency meeting of the 2013 Executive Board with some members of the 2010
Board last February 9 over his concern on the status of the time deposit with BPI Family
Bank.2 Next to be called was 2013 Treasurer Cecilia D. Lobo, who recounted the
circumstances relating to her discovery last February 7 that the Time Deposit Certificate
with BPI Family Savings Bank (Pedro Gil Branch) in the amount of P1.25 million was
“fake”.3 The last to be heard was the 2013 Ex-Officio Sonia M. Gementiza, who gave a
detailed account of the visit made by some members of the 2013 Board, accompanied by
2010 Ex-Officio Elvira B. Lapuz, to the home province of 2010 President Christopher C.
Paras at Barangay Tambak in Malasiqui, Pangasinan on February 16 to personally invite
him to attend the hearings. Thereafter, the three recounted the initial steps taken by the
2013 Board leading to the creation of the Fact-Finding Board.4
The second hearing, intended to be a full Investigative Hearing of the 2010 Board of
Directors was held at the same meeting room at DLSU-Manila (Taft) on 7 March 2013
for four uninterrupted hours in the morning. After taking their Oath of Affirmation, the
members of the 2010 Board who attended the hearing were one by one called to describe
their respective duties and responsibilities as officers of the Executive Board. First to be
heard was Ex-Officio Elvira B. Lapuz, who served as the Board’s adviser but with no
voting rights on its deliberations. Sonia M. Gementiza served as the 2010 Secretary who
took the minutes of the meetings of the Board, and in her absence, had a prior agreement
with Victoria P. Baleva, a Director at large, to take the minutes. Ana B. Fresnido served
as 2010 Public Relations Officer, responsible for the marketing and promotion of the
7
Association’s activities and in-charge of its publications. She also often served as emcee
in many of the functions of the Association. Veronica M. Jose served as the internal
2010 Auditor of the Board, and as such, audited the financial reports of the treasurer and
monitored the disbursements of funds. Last to be heard was the 2010 Treasurer, Aisa de
la Torre-Morana, accompanied by her lawyer, Atty. Ray Paolo Santiago, who related that
even prior to her nomination as Treasurer, she was informed by 2010 Vice-President
Roderick B. Ramos and 2010 President Christopher C. Paras that she would be voted in
the position of Treasurer since she would be guided by past president Teresita C. Moran
(then Chief Librarian of Ateneo Professional Schools, where both were employed). As
Treasurer, she was responsible for issuing vouchers and checks and reporting monthly on
the finances of the Association’s funds. The 2010 President Christopher C. Paras and his
Vice-President Roderick B. Ramos did not attend; likewise, two other Directors-at-large,
namely, Erlinda B. Gonzales and Sister Ma. Gloria B. Pasamba, SPC failed to attend.5
The third and final proceeding of the Fact-Finding Board was a Clarificatory Hearing
conducted at the Conference Room of the National Library’s Office of the Director,
located on the 4th
floor of the National Library at T.M. Kalaw St., Manila last 14 March
2013 from 1pm until 4:30pm. First to be heard was Victoria P. Baleva on the contents of
the minutes of meetings of the 2010 Board in September and October of 2010 during
which Secretary Sonia Gementiza was absent. Erlinda B. Gonzales, who attended the
hearing for the first time, and was present at both September and October meetings of the
2010 Board was likewise asked to recall the deliberations of the Board on the final
disposition of the time deposits. Former treasurer Aisa Morana of the 2010 Board was
asked to further explain her previous statements regarding the issuances of blank checks
and withdrawal slips, and the discovery of cancelled blank checks which she had pre-
signed. She was also asked to clarify the approximate date/month when she turned over
the passbook (for the settlement account of the time deposit with BDO) to 2010 Vice-
President Ramos, and who held the passbook until the amount of the interest earnings of
the time deposit were withdrawn, to which she replied that the passbook was turned over
to 2010 VP Ramos in February 2010, and since then it was Mr. Ramos who took care of
having the passbook updated since BDO was just across DLSU, where he was then
employed. It was also during this clarificatory hearing that the membership qualification
of Ms. Morana and Mr. Ramos, who both ran for election in 2008, and of Mr. Paras who
ran for the 2007 Board, was questioned, as the records shown from the 2005-2006
PAARL Directory indicated that all of them were not active paying members in 2006, in
violation of the election rule in the By-Laws that nominees to the election should have
been “active for the last three consecutive years at least three months before the annual
election, but not later than August 31.” The Fact-Finding Board also took note of the
continued absence of Mr. Ramos in the hearings. The 2011 Treasurer Sonia Lourdes L.
David whose testimony on the turnover of the financial records in January 2011 and in
2012 and on her role as 2011 Treasurer and 2012 Auditor was material to the
investigation, likewise, failed to attend due to previous engagements.6
8
Problems Encountered
This report is based mainly on the following:
• Bank documents, bank statements, passbooks, withdrawal slips, and other
pertinent bank records
• Checks (Returned) and vouchers – in particular BFB check no. 86073 amounting
to P1,040,000 indicating encashment by Christopher C. Paras
• Emails together with their attachments– in particular by Ana Fresnido, Aisa
Morana, Christopher Paras and Roderick Ramos
• Manuals and By-laws of PAARL, 2005-2006 PAARL Directory and Newletters
(used as references)
• Minutes of Meetings
• Secretary's Certificates of Board Resolutions
• Sworn statements from members of the Executive Board, 2010-2013 and other
testimonies
• Time Deposit Certificates
• Transcript Notes and Tape Recordings made of the hearings
• Treasurer's /Auditor's reports for 2004, 2009, 2010, 2011 and 2012
• Turnover list of documents/supplies in 2010 from 2009 Treasurer
The Fact-Finding Board took note of the continued absence of 2010 Vice-President
Roderick B. Ramos, who, despite repeated invitations, notices and follow-up requests,
and in spite of the change of venue from DLSU-Manila to the National Library which
was done to accommodate his preferences, declined to appear at the hearings.7 He,
however belatedly, sent an email attachment rendering his response to our inquiries for
clarification in an email addressed to the 2013 President dated 17 March 2013, and used
in this report as a material evidence.
Other problems encountered in the task of evidence-gathering involve missing records.
Because of the failure of the 2010 Secretary and the 2010 Treasurer to execute the proper
turn-over of documents to their successors, the Association’s corporate files, in particular
the original documents of incorporation in 1981 and in 2004 with the Securities and
Exchange Commission, which were allegedly kept by 2010 President Christopher Paras,
were not available for reference by the Fact-Finding Board. Digital file copies of these
documents and electronic communications together with their attachments were used
instead as substitutes. The computer used by the 2010 Secretary to store her Secretary’s
files of agenda, minutes of meetings, correspondences, Board resolutions, and other
documents, unfortunately crashed, and no back-up copies were made of them. Up until
the very last hearing of the Fact-Finding Board, the financial records were kept by the
2011 Treasurer at her office in the library of Ateneo Professional Schools in Makati City.
9
Background
The Philippine Association of Academic and Research Librarians, Inc. (PAARL) is a
nation-wide association of librarians working in academic and research libraries that
supports scholarly research and formal education in the tertiary level, and upholds the
profession of librarianship in the Philippines. Since its founding in 1973, it has provided
responsible leadership in the development and growth of library and information services
in the country. It was registered with the Securities and Exchange Commission on 16
February 1981 (SEC No. 97479), and on 8 June 2004 (SEC No. 2000406833), it was
reincorporated with a change in name from “Philippine Association of Academic and
Research Libraries” to its present name.8 It is governed by an Executive Board consisting
of nine directors, who are directly elected by the general members every year, and
assisted by the immediate past president as a non-voting member of the Board in an Ex-
Officio capacity. They shall hold office for one year after their induction into office.
Based on the 2004 Audited Financial Report ending on 31 December 2004, the newly
incorporated Association had a cash position in the total sum of Php1,429,226.51:9
Cash in bank: time deposits with Equitable-PCIB- 978,161.63
Cash in bank: savings with BPI Family Savings Bank - 436,737.33
Cash in bank: savings with PNB (Escolta) - 13,714.28
Cash on hand 613.27 .
On its 37th Annual General Assembly held at St. Paul University in Quezon City on 29
January 2010, a new Board took its oath of office, namely: Christopher.C. Paras as
President, Roderick B. Ramos as Vice President, Sonia M. Gementiza as Secretary, Aisa
de la Torre-Morana as Treasurer, Ana Maria B. Fresnido as Public Relations Officer,
Veronica M. Jose as Auditor, Victoria P. Baleva, Erlinda B. Gonzalez, Sr.. Maria Gloria
B. Pasamba, SPS, as Directors, and Elvira B. Lapuz as Ex-Officio.10
In his Inaugural Speech, incoming President Paras admits: “I have a daring confession to make
to all of you and I demand your immediate forgiveness. You know what, in my entire life I have never
dreamed of becoming a librarian. It’s a profession I denied many times before, not only to my closest
friends, but even to my family and relatives as well.”11
In the same gathering, 2000 and 2004 president Ms. Fe Angela M. Verzosa, Chair of the
Law and Legislation Committee for 2009, presented three amendments to the 2004 By-
laws, which were all approved by the body.12
These amendments included the provision:
"A Reserve Fund established as seed money and to be used only as starting fund at the
beginning of the calendar year may be utilized for the early months in operation with the
intent that whatever amount was borrowed from the Reserve Fund shall be returned
immediately as soon as practicable. This fund should be placed in a separate savings
account and distinct from the Operation Fund."13
10
Findings: Facts and Sequence of Events
The Time Deposits
Based on the 2004 Audited Financial Report ending on 31 December 2004, the newly
incorporated Association had a cash position in the total sum of Php1,429,226.51:14
Cash in bank: time deposits with Equitable-PCIB- 978,161.63
Cash in bank: savings with BPI Family Savings Bank - 436,737.33
Cash in bank: savings with PNB (Escolta) - 13,714.28
Cash on hand 613.27
When the time deposits with Equitable-PCIB matured in September 2005, the
Association placed the amount of P1,040,000 with the same bank on another 5-year time
deposit, yielding a gross interest rate of about 10% per annum, with interest earnings
posted quarterly in a passbook-type settlement account under the name PAARL
Conference Trust Fund (Account No 45800-883-12). The Time Deposit certificate
indicated that it was to mature on 8 September 2010.15
In the 37th Annual General Assembly held at St. Paul University in Quezon City on 29
January 2010, the 2009 Treasurer’s Report was presented by Ms. Jocelyn T. Balangue
citing the composition of the funds of the Association as of 31 December 2009:16
Composition of Fund Balances
As of 31 December 2009
2,113,876.28
Cash in bank: Time deposit (BDOI)
interest income
Total in Time Deposit
1,040,000.00
380,225.26
1,420,225.26 Cash in bank: Savings/Checking Account (BPI) 621,822.59
Cash in bank: Savings deposit (PNB) 63,304.81
Cash on hand 8,523.62
Citing the Association’s Newsletter for the 2nd
quarter (April-June 2010 issue), “As of
January 1, 2010, PAARL realized a net income of Php 357,752.00”.17
On 13 February 2010, a Turn-over of financial records was made by 2009 Treasurer
Jocelyn T. Balangue to 2010 Treasurer Aisa de la Torre-Morana, which included this TD
certificate together with the passbook.18
The passbook was, in turn, given to Vice President Roderick B. Ramos by Mrs. Morana
to facilitate the quarterly posting of the interest earnings of the time deposit, since Banco
de Oro-Taft Avenue Branch (formerly Equitable-PCIB) was just across De La Salle
University-Manila, where Mr. Ramos was then employed.19
By the time, the time deposits matured on 8 September 2010 with Banco de Oro (which
replaced Equitable-PCIB), the interest earnings of the BDO Account No. 45800-883-12,
11
as above-mentioned, totaled to Php 425, 774.54, based on an email dated 8 September
2010, sent by 2010 Vice-President Roderick B. Ramos to update the 2010 Treasurer Aisa
de la Torre- Morana on the outstanding balance on the passbook.20
Discussion on the Disposition of the Time Deposits
At the 9th
regular meeting of the Executive Board on 15 September 2010 held at Manila
Doctor’s College, Macapagal Avenue, Pasay City, where all the members of the Board
were present except for Secretary Gementiza, Ms. Fresnido, and Ms. Jose, President
Paras indicated that he would invite the Council of Elders in the next meeting to discuss
the one million in time deposits.21
As an oversight body, the Council of Elders should
be consulted, as mandated in the Manual of Policies and Procedures, in major
decisions affecting the association, such as those dealing with financial transactions
involving major transfer/ disposition of funds and assets.22
However, no mention was made during this meeting of the visit made by Mr. Paras
on the 13th
of September 2010 to the library of Ateneo Professional Schools to pick
up the original certificate of time deposit from the Treasurer, Ms. Morana, and a
blank withdrawal slip signed by Ms. Morana .23
There was also no mention during
this meeting of a board resolution signed by the Directors specifically authorizing
Mr. Paras to effect any movement of the time deposit and its earnings from Banco
de Oro to any other bank.
On 9 October 2010 Mr. Paras sent an invitation emailed to the Council of Elders and
other past presidents requesting them to attend the Executive Board meeting originally set
on the 15th
of October but moved later to the 14th
. As one of the recipients of this email,
Ms. Verzosa sent her reply giving her reason for her inability to attend the meeting, but
offering her advice and opinion on the final disposition of the time deposits.24
On 14 October 2010 between 8:30 to 12:30pm, the Board met for its 10th
regular meeting
at the National Library with all members present except for Secretary Gementiza again,
Ms. Jose and Sr. Pasamba. Treasurer Morana presented her monthly financial report, but
nothing was mentioned in the minutes of meeting about the discussion on the disposition
of the time deposits, nor any decision on the final disposition of the funds. Moreover, the
meeting with the Council of Elders where only one past president attended, did not
materialize.25
However, in an email sent by Ms. Fresnido to Ms. Verzosa a day later at 17:08:27, she
recounted that: “The board has no final decision yet on the 1.4M. Most likely, 1.2M of
the total amount will be deposited (time deposit) again. A separate account will be
opened for the remaining 240,000.00 for scholarship to be used in the next 5 years. As
the operating budget is quite big now, a portion of the budget will also be allocated to
finance research projects. We’ll probably finalize this during the next meeting.”26
12
Despite the lack of authorization from the Board, proper consultation with the
Council of Elders, and any definite decision on the disposition of funds that should
have been explicitly written out in a board resolution, on 18 October 2010, barely
three days before the Singapore Benchmarking Tour (the first Library Tour outside
the country sponsored by PAARL on 21-24 October), Mr. Paras, fully authorized by
Mrs. Morana as shown in the blank withdrawal slip she signed, withdrew the
amount of Php 250,000 in cash from the passbook account no. 45800-883-12 with
Banco de Oro, which represented the interest earnings of the time deposit.27
According to Vice President Roderick Ramos, he met with Mr. Paras at Starbucks located
near De La Salle University Taft campus to turn over the passbook for BDO Account No.
45800-883-12.28
However, there is no record to indicate this turn-over, nor any mention
in the November and December meetings of the Board was made.
There is no record file of the Minutes of Meeting held in November 2010, but Ms.
Gementiza signed a Secretary’s Certification of Board Resolution No. 006 dated 9
November 2010, duly notarized on 11 November 2010, providing for the opening of a
Scholarship Fund with Treasurer Morana and President Paras as the only authorized
signatories, until the bank is otherwise notified by the corporation.29
The Transfer of the Time Deposits
On 18 November 2010, the time deposit amounting to Php 1,040,000 was withdrawn.
30
Based on the bank documents, an application for manager’s check was made bearing the
signatures of both Mr. Paras and Mrs. Morana on the same date, and a withdrawal slip
signed by both for the amount of Php 1,040,000, authorizing Mr. Paras to withdraw
the amount on the same date 31
No board resolution was presented to the Bank, as
evidenced by the documents presented by the bank in response to a formal request.
On the same date also, Mr. Paras, fully authorized by Mrs. Morana who signed
another blank withdrawal slip, went to Banco de Oro to withdraw the amount of
Php 198,711.73 in cash from the same passbook Account No. 45800-883-12,
representing the interest earnings of the time deposit. The total sum now
withdrawn from this account amounted to Php 448,711.73. 32
This amount did not go into any of the accounts held by BPI Family Savings Bank.
And there is no document to show that the Treasurer ever reported on these
withdrawals, not even to check or to ask where the money went. There is also no
document in November to show that the Vice-President, under whose custody the
passbook was entrusted for safekeeping, turned over the passbook to Mr. Paras to
enable him to encash the money, and/or received the passbook back after the
withdrawals were made.
13
On 1 December 2010, the BDO manager’s check of Php 1,040,000 was deposited at BPI
Family Savings Bank-Carlos Palanca Branch and credited to the Association’s Maxi-
Check Account No. 5951-0782-06 at BPI Family Savings Bank-Pedro Gil Branch.33
On 8 December 2010, the same amount was withdrawn at BPI Family Savings
Bank-Pedro Gil Branch via a “pay to cash” check no. 086073, dated on the same
day, bearing the signatures of both Mr. Paras and Mrs. Morana, and encashed by
Mr. Paras, indicating at the back of the check his “PRC No. 02259 and SSS ID No.
33-2717626-1”.34
From the cash amount of Php1,040,000, the sum of Php 239, 355.74 was deposited to
Acct. No. 5953-3395-97, which was opened on the same date, by Mr. Paras, after
presenting the Secretary’s Certification of Board Resolution No. 6, authorizing him and
Mrs. Morana to open a PAARL Scholarship Fund.35
The remaining balance in cash
amounting to Php 800, 644.26 was indicated with the word “out” as written by hand
at the back of the check no. 086073.36
On 3 January 2011, Mr. Paras sent Mrs. Morana an email informing her that he has
transferred the BDO funds to BPI Family and opened the Scholarship Fund.
Furthermore, he remarked: “Yung sa PNB nalang ang for transfer sa Scholarship Fund
para isang bank nalang hahawakan ng successor mo..hehehe.”37
And he did close the
funds deposited at PNB amounting to Php 77,550.91 and transferred them to the
Scholarship Fund on 31 January 2011, without any Board Resolution or Secretary’s
Certification authorizing him to close the account and transfer the funds to the
Scholarship Fund at BPI Family.38
Subsequently, Mr. Paras sent an email to Mrs. Morana dated 13 January indicating that
the total sum of Php 449,355.74 was withdrawn from the interest earnings of the time
deposit with BDO on 8 December 2010, thereby closing the account.39
(This amount,
when added to the balance of the time deposit encashed by Mr. Paras of Php
800,644.26 would indicate the sum of Php 1,250,000). In reality, however, after the
two withdrawals made in 18 October and 18 November from the interest earnings, the
account balance was only Php 644.01. Furthermore, the closing of the account with BDO
was effected too without any Board resolution.
The Time Deposit Certificate of Php 1.25 Million
On 25 January 2011, Mr. Paras sent an email to Ms. Morana attaching scanned images of
two documents:40
• a Time Deposit certificate amounting to Php 1.25 million bearing the date of
placement as 8 December 2010 under the stated account no. 5952-2816-76 placed with BPI Family Savings Bank-Pedro Gil Branch, with an annual interest
payment schedule at 4% , maturing on 30 November 2015, signed by both Mr.
Paras and Mrs. Morana at the bottom of the certificate as depositors, to which
Mrs. Morana admitted that the signature on the certificate was hers. The
14
Scholarship Fund account no. 5953-3395-97 was indicated on the certificate as
the settlement account.41
• a Maxi-Saver passbook No. 5953-3395-97 with the initial deposit of Php 239,
355.74, also opened on the same date.42
On the same date, Mrs. Morana sent an email to Mr. Paras sending all the financial report
files for 2010, and attaching a Powerpoint presentation of the financial report, which was
to be delivered by Mrs. Teresita C. Moran, who prepared the treasurer’s report on her
behalf because she was on maternity leave.43
On 28 January 2011, it was Mr. Paras who presented the Treasurer’s Report before the
Annual General Assembly held at the National Library’s Epifanio de los Santos
Auditorium in lieu of Mrs. Moran.44
In May 2011, Mrs. Morana recounted that Mr. Paras came over to Ateneo Professional
Schools Library to deliver an envelope containing the TD Certificate of 1.25 million and
the passbook, which was received by fellow library staff Kristeen Molina, daughter of
past president Marietta Molina, because Mrs. Morana was not in the office at the time.45
There was no record of any turn-over of financial records effected between the outgoing
and incoming Treasurers for the years 2011-2013 as admitted by 2011 Treasurer Sonia
Lourdes David, and 2012-2013 Treasurer Ms. Cecilia Lobo. Since the financial records
were already at the Library of Ateneo Professional Schools, where both Ms. David and
Mrs. Morana were employed, Ms. David did not find any reason for a turn-over.
Likewise, no listings or inventories were made. Ms. Lobo, likewise did not find it
necessary to move the records or have an inventory when she became the 2012 and 2013
Treasurer, since Ms. David was the 2012-2013 Auditor, and therefore she had access to
the previous records whenever the need arose through Ms. David.46
On 8 December 2011, a non-book cash transaction was posted on the passbook of
PAARL Scholarship Fund, Maxi-Saver passbook No. 5953-3395-97 with the amount of
Php 50,000 deposited to the account,47
which was presumed by the 2011 Treasurer, Ms.
David, to be the interest earned for the year, since it was exactly 4% of the amount of
P1.25 million.48
No effort was made by Ms. David to verify the deposit with the BPI Family Savings
Bank. It was reported as interest earned from the time deposit in the Treasurer’s
report presented at the 2012 General Assembly held at De La Salle University-
Dasmarinas on 27 January 2012.49
The Reports of the Independent Auditors for 2010 (submitted on 17 December 2011)50
and for 2011 (submitted on 11 July 2012) were done by the same auditor, Mario Enrique
A. de los Reyes, CPA Reg. No. 63651. In his report for both audits, he simply mentioned
the time deposit with the same statement (on page 15 and 16 respectively) as “The
Association has a time deposit of P1,250,000 at the Bank of the Philippine Islands
(BPI)”.51
According to 2012 President Gementiza, he was recommended by Mr.
15
Paras himself. And there was also no request for bank confirmation or
reconciliation during the audit period made by the independent auditor concerning
the time deposits.52
The Time Deposit certificate was kept in the vault of Ateneo Professional Schools
Library under the custody of Ms. David until an inquiry on the time deposit interest
earning for 8 December 2012 was raised.53
The Discovery (3 years too late)
During the Annual General Assembly held at the Technological Institute of the
Philippines-Quezon City Campus on 25 January 2013, then Treasurer, Ms. Cecilia Lobo,
reported that no interest earned from the time deposits was reflected in her Financial
report for 2012, and that she would inquire about this from BPI Family Savings Bank
(BFB).54
On 7 February 2013 Ms. Lobo went to BFB-Pedro Gil Branch to inquire, and presented
the Time Deposit Certificate. The bank manager then told her that the certificate
bearing Account No. 5952-2816-76 was fake for the following reasons:55
• The texture of the paper is different from the original, being only a scanned copy
• The certificate should bear two signatures of bank officers
• There is no annual interest payment schedule; it is either monthly or upon maturity
Ms. Lobo then immediately called 2013 President Manalo, 2013 Ex-Officio Gementiza,
and 2013 Auditor Sonia David to notify them of this discovery.
The Emergency Meeting56
A meeting was called on 9 February 2013 held at the UST Library, and attended by all
members of the 2013 Board except for Vice-President Marian Ramos-Eclevia and Dr.
Teresita Hernandez. Also attending were members of the 2010 Board, namely: Treasurer
Aisa Morana, Secretary Gementiza, PRO Ana B. Fresnido, Victoria Baleva, and Ex-
Officio Elvira Lapuz.
Ms. Morana recalled that it was after the 2011 General Assembly when she received an
envelope containing the passbook and the TD certificate described by the bank as fake.
She also recalled that she was asked by Mr. Paras to sign a blank check.
Ms. Fresnido recalled that no withdrawal was discussed in any of the Board
meetings. She further asked if the independent auditor had requested for the
presentation of the said TD during the auditing period, to which Ms. Gementiza
replied in the negative, and that the independent auditor was recommended by Mr. Paras.
Ms. Lapuz suggested a trip to the hometown of Mr. Paras in Pangasinan to locate him or
determine the whereabouts of Mr. Paras.
16
The 2013 Board agreed to create a Fact-Finding Committee to conduct an investigation
into the missing time deposits.
BFB Verifies It’s Fake
On 12 February 2013, President Manalo wrote a formal letter addressed to BPI Family
Savings Bank-Pedro Gil Branch requesting copies of documents submitted for the
opening of PAARL Scholarship Fund and for a certification of the non-existence of the
Time Deposit under the stated account no. 5952-2816-76, both documents dated 8
December 2010.57
The bank formally replied in its letter dated 27 February 2013, signed by the branch
manager, Ellery T. Peralta, stating that the Time Deposit Certificate presented to the
bank on 7 February 2013 with the stated account no. 5952-2816-76 was not
authentic. Furthermore, the bank verified:58
• The document was not issued by the branch.
• There is no TD placement with this particular number.
• The other details on the face of the document were also manufactured or faked.
• The signatures appearing on the authorized signature portion are not the signatures of
branch officers of the bank
• The paper used was ordinary paper, a scanned copy to make it look original.
• The checkwrite portion is just a copy and not from the official checkwriter of the bank.
The bank attached a copy of the Secretary’s Certification of Board Resolution No. 006
dated 9 November 2010, duly notarized on 11 November 2010, providing for the opening
of a Scholarship Fund with Treasurer Morana and President Paras as the only authorized
signatories, until the bank is otherwise notified by the corporation.59
The Trip to Pangasinan
As agreed upon during its emergency meeting, President Manalo, Ex-Officio.
Gementiza, 2010 Ex-Officio Lapuz, Treasurer Lobo, accompanied by Mr. Rudy Lara of
ForeFront Inc., whose vehicle was used as transport of the group, went to Barangay
Tambac, Malasique, Pangasinan on 16 February 2013, a Saturday, to locate Mr. Paras
(who was reportedly no longer visible since July 2011), and to inquire about the fake time
deposit certificate and the money entrusted to him to be invested in the time deposit60
.
The group succeeded in locating house no. 295, which was indicated in the COMELEC
database sourced by Ms. Gementiza as the address of his immediate relatives. The mother
and sister of Mr. Paras, who opened the door of the house but refused to let them in, told
the group that Mr. Paras was in Australia, although he was personally seen by Mr.
Manalo in close range within the vicinity of the house.61
17
Mr. Rudy Lara of ForeFront Inc. attested to the fact that Mr. Paras was seen by Mr.
Manalo. In his own Sinumpaang Salaysay, he further mentioned that he personally went
to his last known address in Metro Manila, at the request of the 2013 Board to help in
locating his last known address, only to find out that 43 Kapilugan Street, Bgy. Dona
Imelda in Quezon City, had been abandoned since it was destroyed at the height of
Typhoon Ondoy, and that Mr. Paras had occupied one of the rooms at this place as a
bedspacer only.62
This address is significant because it was the one indicated at the back
of the check Mr. Paras encashed on 8 December 2010.
On 20 February 2013 the incumbent Board met in a special meeting to approve a
resolution appointing Mr. Manalo as its authorized representative in the criminal/
civil prosecution of a case to be filed against Christopher C. Paras for Estafa, and
for misrepresenting and pretending to have duly invested the amount of Php 1.25
million by presenting to PAARL a copy of a falsified and spurious Peso Time
Deposit Certificate.63
18
Evaluation of Findings: Conclusions
1. The Time Deposits ~ not Missing, but Gone
Following the money trail was the easiest part of this investigation, because of the
evidences uncovered and gathered during the week before and during the hearings.
Documentary evidences collected by the Board have proven the following:
• As early as 13 September 2010, barely five days after the maturity of the time deposit of
Php1,040,000, the original TD certificate was turned over to 2010 President by the Treasurer, as
evidenced in the photocopy of the certificate with the signatures of both 2010 President,
Christopher C. Paras, and 2010 Treasurer, Mrs. Aisa dela Torre-Morana. This turn-over was done
without the knowledge of the 2010 Board, as it was not even mentioned in the 15 September 2010
minutes of meeting of the Board.
• On October 18 a blank withdrawal slip facilitated the withdrawal of Php 250,000 in cash from the
passbook account, and on November 18, two withdrawal slips and an application for manager’s
check were pre-signed by the 2010 Treasurer to facilitate the withdrawal of the remaining amount
from the passbook account, and the entire time deposits with Banco de Oro. Again, the money
from the passbook account was withdrawn in cash as evidenced by copies of the withdrawal slips,
the application form, and the manager’s check that Banco de Oro provided upon written request
of the 2013 Board on behalf of the Fact-Finding Team. There is no doubt that it was Mr. Paras
and Mrs. Morana who signed all these documents.
• Eighteen days later, the passbook account with barely Php 644 left was closed after this amount
was withdrawn, even without a Board Resolution or a Secretary’s Certification that the Board had
specifically authorized the President and the Treasurer to withdraw the money and close the
passbook account. The only Secretary’s Certificate signed by 2010 Secretary Sonia M.
Gementiza, which she did not even prepare but was simply asked by Mr. Paras to sign, was for a
board resolution involving the opening of an account with BPI Family Savings Bank, which was
purported to have been signed by the board at the meeting on 15 October 2010, when the meeting
actually took place on 14 October, and which meeting the Secretary did not even attend. Copy of
this Secretary’s certificate signed on 9 November 2010 was given by said bank upon written
request of the 2013 Board.
• The manager’s check for the time deposit issued by Banco de Oro, fortunately, was made in the
name of the Association, PAARL, so it had to be deposited to the account of PAARL held by BPI
Family Savings Bank (BFB), as proven by the bank statement from BFB for December 2010
where an entry for this deposit was made on 1 December 2010.
• A week after it was deposited, on 8 December 2010, the one million plus was withdrawn through a
blank check issued by the Treasurer, which enabled the President to encash the check, and deposit
part of the cash (Php 239, 355.74) to open a savings account in the name of PAARL Scholarship
Fund. The evidence proving this transaction was the returned check (pay-to-cash), and the back of
the check, indicating the breakdown of cash received by Mr. Paras, his last known address, the
numbers of the IDs he presented, and the amount of Php 800, 644.26 taken out. There is no doubt
that the money was received by Mr. Paras because of his signature at the back of the check.
• With the balance from this check withdrawal amounting to Php 800, 644.26 and the interest
earnings of Php 449,355.74 (which were withdrawn in cash) totaling to P1.25 million, the
President made it appear that the entire amount was invested in a time deposit with BPI Family for
a period of five years. This is evidenced by the TD certificate which BFB has declared to be fake.
As Mr. Paras himself corroborated, he sent an email dated 25 January 2011 to the Treasurer
attaching scanned images of the TD certificate and the BPI passbook. It took more than six
months later for him to deliver the original certificate of time deposit, although he promised to
give them to the 2011 Treasurer, Ms. Sonia Lourdes L. David, right after the General Assembly in
his 13 January 2011 email.
19
• So as not to stir up the hornet’s nest, a Php 50,000 cash deposit was made to the Scholarship Fund
exactly one year after the opening of both the TD and the savings accounts, to make it appear that
the TD has earned its first annual interest. This is evidenced by an entry of non-book cash
transaction in the passbook under the name of PAARL Scholarship Fund.
It took another year before the TD was discovered to be fake, and only because interest
income that was expected to be posted for the second year did not come. This raised
undue alarm, and the 2013 Treasurer was prevailed upon to visit the bank to claim the
interest, and in so doing, upon verification, found that the TD certificate, which lay
dormant inside the vault of Ateneo Professional Schools Library, was just a piece of
paper without value. Because the TD certificate was confirmed by the bank as “spurious,
falsified, and fictitious”, the money that was meant to be invested in it was, without
doubt, gone. Clearly, based on these evidences, the 2010 President misappropriated
the amount of Php 1.25 million, and “worse, he misrepresented and pretended to
have duly invested the money by presenting to the PAARL a copy of a falsified and
spurious Peso Time Deposit Certificate containing the said amount.”
2. Strategic Lapses
The Fact-Finding Board discovered in the course of its investigation that the key players
in the 2010 Board on this unfortunate incident committed several lapses in the handling
of the transfer of the time deposits:
• A Conspiracy of Silence – The President made frequent visits to the Treasurer at Ateneo
Professional Schools Library between the critical months of September until December 2010,
without informing the rest of the members of the Board whether formally (during their meetings)
or informally, particularly on the disposition of the time deposits. Likewise, the President met
with the 2010 Vice President, Roderick B. Ramos, at Starbucks located at Taft Avenue, near De
La Salle University where the latter was then employed, to pick up the passbook for the time
deposit earnings with Banco de Oro-Taft Avenue, which was entrusted in his care and
safekeeping. This too was not disclosed to any other member of the Board, whether formally, in
any of the Board meetings, or informally. The Vice President could have accompanied the
President to witness his bank transactions, as the Banco de Oro-Taft Branch was located just in
front of the University’s campus gate, and as expected by the 2010 Treasurer, but unfortunately
he did not.
There were frequent electronic communications between the President and the Treasurer towards
the end of the year, but these were not shared with the other members of the Board during their
meetings as the emails evidenced only one-on-one communications. Therefore, based on these
facts established during the hearing, the rest of the members of the Board were kept in the dark as
to what had transpired on the disposition of the funds all along. Even the oversight body, the
Council of Elders, was not informed, as required in the Manual of Policies and Procedures. This
major transaction was not even mentioned in the Treasurer’s Report, which was delivered by the
2010 President, nor discussed at the 2011 General Assembly meeting. As normally required,
board resolutions should have been ratified by the Assembly, but none was presented for
ratification.
• Failure to secure bank certifications or bank reconciliations – The Treasurer failed to obtain
bank certifications or reconciliations to verify the amounts placed on the Time Deposit and the
Maxi-Saver Scholarship Fund, during the preparation of her annual financial report to be presented
at the 2011 Annual General Assembly, and simply relied on the figures sent via email by the
President, which was contrary to established practice made by her predecessors. Likewise, in the
20
preparation of the financial records for the annual audit to be conducted by independent auditor,
the Treasurer was expected to secure bank certifications to attest to the year-end balances of the
Association’s bank accounts. Even past President Teresita C. Moran, who has familiarity with this
standard accounting procedure, having been past treasurer of the association and other library
organizations, and who actually prepared the Treasurer’s Report and was initially tasked to deliver
the same at the 2011 Annual Assembly, failed to advice the Treasurer to get the bank certification
necessary for a proper accounting report on the funds. Had the Treasurer, if properly advised,
gone to the bank and presented the TD certificate, the discovery that it was fake would have been
established three years early, and not three years late. The President would have been made to
explain the existence of a “spurious, fictitious, and falsified” bank document right at the General
Assembly in January 2011.
• Was there a Board Resolution or Not – A corporation "lives" only through the actions of its
board of directors, and making resolutions to empower the officers to carry out the business is
one of them. The board resolution is a written document that records a decision or action made by
a Board of Directors during a board meeting containing their signatures on the document. The
Secretary is tasked to prepare Secretary’s certifications of Board Resolutions, duly notaried, for
major policy decisions.
In this investigation, the policy decision on the final disposition of the time deposits was
considered a major one necessitating its inclusion in the agenda for a regular meeting of the Board.
And yet, only one Secretary’s Certificate for a Board resolution was signed by the Secretary, i.e.,
to open a PAARL Scholarship Fund (a requirement imposed by the bank in opening corporate
accounts). Equally as important if not more important is a separate board resolution empowering
the President, NOT the Treasurer, to effect the transfer of the time deposit from one bank to
another, and to close the accounts for funds deposited in two different banks, namely Banco de
Oro and Philippine National Bank.
The 2010 Secretary has maintained throughout the investigation conducted by the Fact-Finding
Board that there was no such resolution, even for the one prepared by Mr. Paras himself for the
opening of an account with BFB, a fact corroborated by other members of the Board (whose
signatures would have been required for such a document) except for the Vice-President and the
Treasurer, two key players in this incident.
• Pay-to-Cash Checks and Vouchers and blank withdrawal slips – On many instances as
evidenced by the records, the Treasurer prepared blank withdrawal slips and pay-to-cash checks,
and, worse, blank checks (nothing written out on the Payee, Date, and Amount portions of the
check) with her signature alone, with such careless abandon like it was the ordinary norm or
established practice. There were even left-over pre-signed blank checks in the checkbook when it
was turned over (but dutifully cancelled to indicate the blank checks were not used).
When questioned why the returned checks found in the financial records were not crossed, the
Treasurer replied that she was not aware of what crossed checks meant, to which the Chair of the
Fact-Finding team in exasperation replied: “Any check that is crossed with two parallel lines,
through the top left hand corner of the check, means that the check can only be deposited directly
into a bank account and cannot be immediately encashed,” a practice prevalent among check
writers to effectively protect the checks they write.
It is likewise a standard best practice to issue check vouchers to accompany checks, to ensure that
the check issued is properly acknowledged and used for the intended purpose written out on the
voucher. Both practices were not applied during the incumbency of this Treasurer, and the
internal Auditor also failed in calling the attention of the Treasurer to observe this practice in her
regular examination of the disbursements of the funds. There were more than a dozen blank
checks issued “pay to cash” by the Treasurer, which were encashed by herself and Mr. Paras,
without any corresponding voucher from January to December 2010, ranging from Php 15,000 to
Php 80,000.
21
• Failure in turn-over – There was no record of any turn-over, nor listings, or inventories of
financial records effected between the outgoing and incoming Treasurers for the years 2011-2013
as admitted by the 2011 Treasurer Sonia Lourdes David and 2012-2013 Treasurer Ms. Cecilia
Lobo. Since the financial records were already at the Library of Ateneo Professional Schools,
where both Ms. David and Mrs. Morana were employed, Ms. David did not find any reason for a
turn-over. So did Ms. Lobo, who was the Auditor of 2011, and succeeded by Ms. David as
Auditor for 2012-2013, Up until the very last hearing of the Fact-Finding Board, the financial
records were kept by the 2011 Treasurer at her office.
There are also no records to show that the 2011 President, Roderick Ramos, requested for any
listings or inventories of assets to be made immediately after the installation of the new Board in
January 2011. So, until the 2010 President disappeared into thin air, so to speak, nobody knew
what happened to the Association’s laptop (which has an acquisition cost of Php 82,617), digital
camera, and original corporate files, Board resolutions, minutes of meetings, and monthly
financial reports in his custody. Worse, because of this failure in turn-over, the mishandling of
funds were left undetected. 3. Breach of Fiduciary Duties
People in a position of trust or fiduciary relationship, such as officers, directors, high-
level employees of a corporation or business owe certain duties to their principals, and in
the case of a professional organization such as PAARL, the positions of officers and
directors are positions of trust. A fiduciary duty is often regarded as the highest duty
recognized in corporate law. It encompasses many duties: (1) the duty of care – to act with diligence and with the care an ordinarily prudent person in a like
position would exercise;
(2) the duty of informed judgment – the process of gaining sufficient familiarity with the
background facts and circumstances to make an informed judgment before acting;
(3) the duty of disclosure – to disclose material / important information to shareholders / members;
including conflicts of interest;
(4) the duty of loyalty – to act in the best interests of the corporation.
Simply put, a person charged with exercising fiduciary duties must discharge his/her
functions (duties and responsibilities) with the utmost good faith, care, and the finest
loyalty.
Professionals are held to a higher standard of care than an ordinary reasonable person
would be expected. So, in this evaluation of the findings uncovered by the Fact-Finding
team, the key factor to be considered in determining negligence of the following officers,
is whether the duty of care, informed judgment, disclosure, and loyalty was ever owed to
the association, and whether or not that duty was breached.
President – Without any doubt, the 2010 President, as the chief executive of the Association
mandated to carry out the provisions of the By-Laws and its manual of rules and procedures to.
ensure that the Association remains a vital organization and operates in a manner consistent with
corporate goals and objectives, only succeeded in damaging its good name and reputation as a
leading professional organization. The scandalous loss of the association’s funds can only be
attributed to unbridled mismanagement, lack of internal controls, and abuse of authority. To the
very end of his term, he abused the trust vested in him. As an oversight body, the Council of
Elders should have been consulted, as mandated in the Manual of Policies and Procedures, in
major decisions affecting the association, such as those dealing with financial transactions
22
involving major transfer/ disposition of funds and assets, but he failed dismally in securing their
concurrence. Despite this lack of proper consultation, and the absence of a board resolution
specifically authorizing him, and not the Treasurer, to close the account with BDO and move the
funds to BFB, he went ahead to withdraw and transfer the funds, and in so doing, misappropriated
the sum of Php 1.25 million, by presenting “a spurious, fictitious, and falsified” Time Deposit
certificate to prove it. Clearly, he is responsible for the irreversible crisis that the Association is
now faced with.
Vice President – The 2010 Vice-President, glorified by his critical role in planning, executing and
overseeing the seminars and other activities entrusted to him, failed in his duty to keep the Board
informed of his actuations as a key player in the final disposition of the time deposits. As the
custodian of the passbook for the interest earnings of the time deposit, he should have sought
authority or clearance from the Board on the separate withdrawals made by Mr. Paras amounting
to Php 449,355.74. He gave the passbook without even a handwritten receipt that it was turned
over to him. There are no records to show that he even disclosed this turn-over of the passbook to
any other member of the Board, whether formally in any of the November and December
meetings, or informally.
When he assumed the presidency in 2011, he showed the same disregard for turn-overs. No
listings or inventories were made or required, and therefore no formal or informal turn-over was
ever made. The books, records, and other assets of the association, such as the laptop and the
digital camera, which were kept by the 2010 President, were not turned over to the 2011 Board
which he now led. Thus, to this day, all the records, books, and other assets remain unaccounted
for.
In the matter of the annual audit for 2010 and 2011, he failed to initiate or to cause the initiation
of the preparation of the financial records required for the annual review of an independent
auditor, knowing that when he assumed the Presidency in 2011, no annual audit for 2010 had been
made. The annual audit for 2010 was done in December 2011, towards the end of his term, and the
annual audit of 2011 was done in July 2012, more than six months after his term ended. Clearly,
as the 2010 Vice President and 2011 President, he failed in his duty of care, informed judgment,
disclosure, and loyalty.
Treasurer – Without doubt, the 2010 Treasurer, who has an obligation to the members of the
Association to scrupulously care for the money entrusted to her, failed miserably in handling the
final disposition of the association’s funds, a super major transaction that she relegated into the
hands of the President without informing anyone in the Board except the Vice-President. In
complete disregard of proper accounting rules, she carelessly issued blank withdrawal slips and
blank checks without any corresponding vouchers, and most importantly without any authority
from the Board as mandated by the Manual of Policies and Procedures. There were more than a
dozen blank checks issued “pay to cash” by the Treasurer, ranging in amounts from Php 15,000 to
Php 80,000, which were encashed either by her and Mr. Paras, without any corresponding voucher
from January to December 2010.
The withdrawals from the BDO funds and the subsequent encashment from the Maxi-check
account with BPI Savings Bank went un-detected, un-monitored and un-reported, all because she
did not even bother to find out from the President what withdrawals or encashments were made of
the blank withdrawal slips and checks she signed. Had all these been meticulously attended to, the
discovery of the heavy withdrawals from the BDO accounts, and the encashment of the time
deposit from BFB would have surfaced sooner than three years later.
Even the financial reports, required as the vehicles whereby the Treasurer is supposed to keep the
Association's Board and the members apprised of its fiscal condition on a regular basis were not
taken care of. She admitted that her monthly reporting, which should have been submitted one
week before the regular meeting, was late. In fact, she admitted that she gave the reports to the
President for her signature at the end of their term, and did not even keep copies for her
23
safekeeping. During the audit period (which normally should take place right after the end of the
calendar year) in early January 2011, when she was required to provide, within ten (10) days after
the close of the calendar year, all appropriate documentation needed by the internal auditor and the
independent auditor for the annual report, and by the Bureau of Internal Revenue for the annual
filing of BIR Information tax return, she again failed in her duty to prepare the documents and
request for bank confirmations or reconciliations for the ending year. Had this been meticulously
attended to, the discovery of the fake TD certificate would have surfaced sooner than three years
later.
Worse, the 2010 Treasurer, Mrs. Morana, signed together with the 2010 President, Mr. Paras, “a
spurious, fictitious, and falsified” Time Deposit certificate to prove that the amount of Php 1.25
million was invested in a Peso Time Deposit with BPI Family Savings Bank.
Secretary – Because of the failure of proper turn-overs, the 2010 Secretary, mandated to keep and
maintain records of all the corporate files, failed to exercise the delicate task of keeping these files
in her custody. This is evidenced even in the last entry in the Attendance Book for the 7th
Regular
Meeting of the Board in July 2010, where the signature of the President was not even recorded.
There were no more entries in the Attendance Book for 2010 after this entry. When the term of the
2010 Board ended, as Secretary, she was tasked also to turn over to her successor the corporate
files, but since they were all in the hands of the President, who was reportedly no longer visible in
mid-2011, they remain unaccounted for to this day. As Secretary, she was also required, under the
Manual of Policies and Procedures, to make a permanent record of all the approved resolutions,
policies, and guidelines, and to ensure that all required documents are filed with the Securities and
Exchange Commission. The 2010 Amendments to the By-Laws, which were approved at the
2010 General Assembly as published and disseminated in the January-March 2010 issue of the
official newsletter of the association, were not submitted to SEC promptly as required during the
first quarter of the same year, and this critical lapse on her part caused the delay in their
implementation, and the unfortunate deliberation on the same issues in the 2011-12 General
Assemblies.
Auditor – The Auditor shall audit and examine the receipts of all finances and disbursements of
funds of the Association, and shall see to it that the disbursements are properly carried based on
the By-laws and the resolutions of the Board of Directors and the members of the Association.
However, the internal Auditor of 2010, Ms. Veronica M. Jose, failed in calling the attention of the
Treasurer to observe standard accounting practices and to refrain from issuing blank withdrawal
slips and blank checks without their corresponding vouchers during her regular examination of the
disbursements of the funds, which is inherent in her function. Furthermore, had she been prudent
and conscientious of her fiduciary duties of care, informed judgment, disclosure, and loyalty to
protect the best interests of the association, she should have voiced out during their regular
meetings, about the delay in the reporting of the finances, submission of financial reports that she,
as auditor, was supposed to approve and sign, the issuance of blank checks without corresponding
vouchers, the long delay in liquidation of cash.check advances and submission of official receipts
in support of cash disbursements, and the like. As Auditor, it was inherent in her duty to monitor
the withdrawals from the savings accounts, and check disbursements from the Maxi-check
account, and to go over the returned checks to ensure that disbursements were made as approved
by the Board. Had she been conscientious of her duties and responsibilities, the early discovery of
the anomalous transactions in both savings and checking accounts would have led the Board to
tighten the internal controls over the management of the funds.
The best way for a director to avoid liability for any breach of fiduciary duty is to do his
or her job correctly. Directors must understand that they are responsible for the
governance of the corporation. They may delegate authority but ultimately the Board is
responsible, under the law, for the acts and omissions committed by its members.
24
4. In Flagrant Disregard of Rules
No Reserve Fund – As stated in the By-Laws, separate accounts must be established for specific
funds meant for specific projects or purposes. An example is the Scholarship Fund, which is
restricted only for scholarship grants. However, only interest earnings from this fund may be used
for this purpose. To date, this fund has a balance of Php 381, 678.57. Another is the Reserve
Fund. The amount of almost half a million pesos turned over to the Association as seed money in
December 2004 (the year of its reincorporation) and deposited at BPI Family Bank in a savings
account was established to constitute the FIXED RESERVE FUND of the Association, and which
was meant to cover at least the first six months of operation, and to be used only as a starting fund
for its operation by every incoming Board, with the intent that each year's expenses shall be
supported by that year's income, and whatever amount was used from this FIXED RESERVE
FUND shall be returned immediately as soon as practicable. This Fund should be maintained in a
separate savings account to distinguish it from the Operations Fund. In 2004, the amount of Php
436,737.33 was placed in a savings account. Sometime afterward, however, this account was
closed for unexplained reasons, and up to this date, there is no savings account deposited in this
Reserve Fund. But the Maxi-Check account, which is the Association’s Operations Fund, has an
outstanding balance of almost a million pesos, Php 936,593.48, a monumental figure to be placed
in a checking account, which is prone to mismanagement and risks.
Conduct of board meetings – According to the Manual, all Board resolutions must be signed and
submitted for ratification of the members during the annual General Assembly. This, however,
was rarely observed. Likewise, the resolutions should be composed according to the following
guidelines:
o The resolution shall be related to the purposes of the Association, or intended to
support efforts to keep members aware about issues of importance to them, or to
take positions on current critical issues related to library and information service.
o The resolution should address only one topic or issue.
o The resolution should be complete so that upon passage it becomes a clear and formal
expression of the opinion or will of the Assembly.
o The intent, objective, or goal of the resolution should be clear to all. The resolution
should make clear whether it concerns a general policy, a viewpoint, or a call for
specific action.
o If the resolution calls for a specific action, or program with a timetable, the timetable
shall be clear.
o If the resolution has fiscal implications for the Association, an estimate of costs to be
incurred should be included, or such financial implications should be explicitly provided.
Clearly, the 2010 President acted beyond the authority of the Board, because there were no
separate resolutions for the transfer or movement of funds, nor for the closing of accounts.
Had he also caused the preparation of a board resolution required for the filing of the 2010
Amendments to the By-Laws, as advised by the Chairman of the Laws and Legislation
Committee then right after the 2010 Annual General Assembly, the amendments would have
been filed with the Securities and Exchange Commission by now and properly implemented.
It is now incumbent upon the 2013 Board of Directors to rectify this oversight.
Audit reviews – Financial reviews of the Association's fiscal policies and the Board's financial
status shall be conducted by the Council of Elders whenever the need arises, based on the
association’s Manual. The Auditor shall audit and examine the receipts of all finances and
disbursements of funds of the Association, and shall see to it that the disbursements are properly
carried out in accordance with the Operating Budget, the By-laws, the resolutions of the Board of
25
Directors, and the members of the Association, again based on the Manual. The By-Laws
likewise, require the services of an external auditor to audit the bank accounts and financial
condition of the Association, and submit an annual audited financial statement to be included in
the treasurer's report to the members at its annual meeting.
Had these reviews been carried out promptly and dutifully, the scandalous mishandling of the
association’s funds might have been averted.
Qualifications for nomination in election – It was also during the clarificatory hearing that the
membership qualification of the 2010 President who ran for the 2007 Board, and the 2010
Treasurer and Vice-President, who both ran for election in 2008, was questioned, as the records
shown from the 2005-2006 PAARL Directory indicated that all of them were not active paying
members in 2006, in violation of the election rule in the By-Laws that nominees to the election
should have been “active for the last three consecutive years at least three months before the
annual election, but not later than August 31.” Furthermore, the Manual provides Guidelines for
candidate selection:
o All nominees must be current regular members (licensed professionals) within the last
three (3) years with a record of involvement with the Association or other library
organizations.
o Candidates must be selected to represent an academic or research institution; no two
candidates may represent the same institution.
o Candidates must be willing and able to devote time to the duties of the office and to
Association affairs.
In the case of the elections for the years in question, Mr. Paras and Mrs. Morana were nominated
despite their lack of “a record of involvement with the Association or other library organizations.”
And Mr. Roderick Ramos was allowed to run alongside then Library Director, Mrs. Ana B.
Fresnido, both representing the same institution, De La Salle University-Manila, when it was clear
that Mrs. Fresnido was endorsed by the institution, and Mr. Ramos was only endorsed by himself,
in violation of the election rule that no two candidates may represent the same institution.
The Fact-Finding Team also observed a flagrant violation of a provision in the By-Laws and in the
Manual that restricts the number of terms any member of the Board may serve to only three years:
“The elected members shall hold office for a term of one year after their induction into office,
subject to a maximum of three (3) terms in continuous succession ” The reason for this lies in the
belief that a longer period breeds undesirable familiarity, and that power corrupts. The 2010
President, Mr. Paras, and the 2010 Auditor, Ms. Veronica M. Jose, had already served three
successive terms with their election in 2009. This issue had been raised in the 2009 meeting of the
Council of Elders and past presidents, and the 2009 Board, represented by its President, Vice-
President and Treasurer, had been duly reminded to observe this ruling in the coming election for
the 2010 Board. Despite this reminder, Mr. Paras and Ms. Jose were both nominated for the 2010
Board, instead of being disqualified in accordance with the By-Laws, and furthermore, elected by
the 2010 Board as its President and Auditor, respectively.
These lapses should be equally shared by the NOMELEC with the individual nominees, who
intently pursued their ambition for reelection despite this restriction, and with the incumbent
Board then for having ultimately approved the nominations submitted by the NOMELEC.
26
Recommendations
In light of the preceding discussion on the evaluation of findings and the accountability,
liability and/or culpability of the above-mentioned officers of the 2010 Board,
the Fact-Finding Board hereby recommends the following actions for immediate
implementation by the 2013 Board of Directors:
The 2010 President
“For misrepresenting and pretending to have duly invested the amount of Php 1.25
million by presenting a copy of a falsified and spurious Peso Time Deposit Certificate
containing the said amount” and “for misappropriating the same amount which was
meant to be invested in a time deposit account in the name of the association”, the 2010
President is now accused of the crime of Estafa before the Manila Prosecutor’s Office.
This scandalous incident, under the cloud of fraud and deception, has caused irreparable
damage to the good name and high reputation of PAARL as one of the nationwide
leading professional organizations of licensed librarians in the country. Without
question, the Association sustained a huge loss due to his fraudulent and deceptive acts,
his abuse of authority, and his breach of fiduciary duty on the highest level.
Recommendation: 1) Expulsion from the Association and stripping of his service
award
2) Continued pursuit of the criminal complaint filed with the
Manila Prosecutor’s Office for the crime of Estafa
3) Initiation of administrative proceedings for disciplinary action
with the PRC-Board for Librarians
The 2010 Treasurer
For being an incompetent treasurer, and for the gross and reckless mishandling of the
Association’s funds at a most crucial moment, without question, the 2010 treasurer shares
the accountability for the disastrous and scandalous loss of the funds. As treasurer, she
should have personally handled the movement of the funds, with the knowledge of, and
prior clearance from, the Board, being the most responsible officer to ensure the safety of
the assets of the association. All the acts of commissions and omissions of the President
could not have succeeded had she not cooperated. It was the height of gross
irresponsibility when she issued a blank check, making it easily possible for the President
to encash the check (withdraw the time deposit funds in cash), when all she needed to do
was to write the name of “PAARL” as Payee on the check, knowing that the amount on
the check was supposed to be placed in a time deposit, writing out the amount in words
and in figure, and crossing it (because a crossed check can only be deposited to the
account of the payee), before signing and giving it to the President. Worse, the 2010
Treasurer, Mrs. Morana, signed together with the 2010 President, Mr. Paras, “a spurious,
27
fictitious, and falsified” Time Deposit certificate to prove that the amount of Php 1.25
million was invested in a Peso Time Deposit with BPI Family Savings Bank.
For her failure to do this and other breach of fiduciary duties as mentioned above, which
duties are normally expected of a competent treasurer, she must be held equally liable for
the loss of the funds.
Recommendation: 1) Expulsion from the Association
2) Initiation of a preliminary investigation in a criminal action
for possible criminal liability as an accessory in the crime of
Estafa
3) Initiation of administrative proceedings for disciplinary action
with the PRC-Board for Librarians
The 2010 Vice-President
For his failure to fulfill his fiduciary duty to keep the Board informed of his actuations
involving the disposition of the association’s funds, as evidenced by his failure to seek
clear-cut authority or clearance from the Board on the withdrawals made by Mr. Paras, by
giving the passbook which enabled Mr. Paras to make the withdrawals without the
knowledge of the Board, for not even disclosing this turn-over of the passbook to any
other member of the Board; for dereliction of duty by his disregard for proper turn-overs,
or inventories required after the installation of the succeeding Board, thereby causing the
loss of the records, books, and other assets of the Association, which to this day remain
unaccounted for; and for his failure to initiate or to cause the initiation of the preparation
of the financial records required for the annual review of an independent auditor for the
years ending 2010 and 2011, which resulted in the critical delay in the audit review of the
financial conditions of the association during these two years, clearly, as the 2010 Vice
President and 2011 President, he shares with the Treasurer a certain degree of culpability
because the 2010 President could not have withdrawn the money in the Conference Trust
Fund without the passbook which he held in trust, and furthermore, had he instructed the
2011 Treasurer to prepare the records for the timely audit in January 2011 and in January
2012, as stipulated in the Manual, the discovery of the Time Deposit certificate would
have surfaced sooner.
Recommendation: Permanent disqualification from any appointive or elective
position in the Association
The 2010 Secretary
For neglect of duty in signing the Secretary’s Certificate of a Board Resolution
authorizing the opening of an account with BPI Family Savings Bank which was
prepared by the President, and not by her, without clear authority from the Board,
knowing that she was not present at the meeting stated in the board resolution, and for
28
lapses in her keeping and maintaining the corporate files under her custody as Secretary,
the 2010 Secretary is partly to blame for the loss of the corporate files.
Recommendation: Permanent disqualification from any elective
positions in the Association
The 2010 Auditor
For dereliction of duty in the exercise of the audit functions and duties as mandated in
the By-Laws and the Manual of Policies and Procedures, in particular, for her failure in
calling the attention of the Treasurer to observe standard accounting practices and to
refrain from issuing blank withdrawal slips and blank checks without their corresponding
vouchers during her regular examination of the disbursements of the funds, for her failure
in reminding the Treasurer not to cause delays in the reporting of the finances,
submission of reports, liquidation of cash advances, and submission of official receipts in
support of cash disbursements, and the like, and for her failure to monitor the bank
statements which recorded the entries for the check disbursements in December, in
particular, the encashment of the check withdrawing the time deposit on 8 December
2010, the 2010 Auditor is partly to blame for the gross mishandling of the Association’s
funds. The timely reporting of the anomalous transactions in both savings and checking
accounts might have inspired the Board to tighten the internal controls over the
management of the funds, and might have led to the early discovery of the fake TD.
Recommendation: Permanent disqualification from any appointive or elective
position in the Association
These recommendations are made without prejudice to the evaluation of findings and/or
recommendations to be arrived at in future proceedings (such as to be discussed in the
special meeting of members to be called as soon as this report is submitted) as to the
culpability of other officers or directors.
In addition to the above recommendations, the Fact-Finding Board submits the
following for strict compliance of the 2013 Board:
• A review of the Manual of Policies and Procedures to flesh out the provisions on
Funding and Fiscal Policies, with the end in view of tightening internal controls
over the management of the association’s funds and assets;
• The strict implementation of the provision in the Manual for the opening of a
savings account (preferably a Maxi-Saver account which commands a higher
interest yield than a regular savings account) with BPI Family Savings Bank to
contain the Reserve Fund (amounting to at least Php 800,000), and to keep only
29
the amount representing the net income earned by the previous Board in the
Operation Fund, to be deposited in the Maxi-check account with BFB;
• The strict observance of proper turn-overs, listings and inventories before the
installation of the in-coming Board and not after, as part of the familiarization of
the in-coming Board on the “nuts and bolts” of the operation and management of
the Association;
• The strict observance of rules on the proper conduct of Board meetings, where
provisions in the Manual will be clearly spelled out on the standard design and
format of Agenda and Minutes of Meetings, formulation of the content of board
resolutions, standard reporting procedures, including matters to be reported out in
the President’s and Treasurer’s reports, consolidation and ratification of board
resolutions during the Annual Assembly, and the like;
• The formulation of Standard Accounting and Auditing Rules to serve as
Guidelines for the proper management of the Association’s funds, to be
incorporated as part of the Manual of Policies and Procedures, with particular
emphasis on regular reporting of treasurer’s reports during meetings, the proper
issuance of checks (preferably crossed checks) and vouchers detailing every
transaction, with proper clearance/approval from the Board on every
disbursement, the procedure for bank verifications of accounts in preparation for
annual audit, policies on regular submission of membership fees and other
collections, the maintenance of petty cash fund and its replenishment, and the
regular renewal of the Treasurer’s Bond;
• The formulation of Election Rules to serve as Guidelines for all future elections of
the Board and its Officers, to be incorporated as part of the Manual of Policies
and Procedures; and,
• The rectification of a clear mistake made by the 2010 Board and overlooked by
the 2012 Board, by filing the Amendments to the 2004 By-Laws which were
approved and carried out in the Annual General Assembly of 2010 held at St.
Paul-Quezon City, as evidenced in PAARL Newsletter, Jan-March 2010 issue,
where on page 2 this passage was written : "Ms. Fe Angela Verzosa, Chair of the
Law and Legislation Committee for 2009, presented three amendments to the
PAARL by-laws, which were all approved by the body." It is now incumbent
upon the 2013 Board of Directors to rectify this oversight.
.
(End of the Report’s Recommendations)
30
List of Documents Collected
Annex A Letter of Appointment of Fe Angela M. Verzosa to lead the Fact-Finding
Team, 14 February 2013
Annex A1 Letter of Request to BPI Family Savings Bank, dated 12 February 2013
Annex A2 Letter of BPI Family Savings Bank in reply to the request, dated 27
February 2013
Annex B Transcript Notes of First Hearing, 28 February 2013
Annex B1 Transcript Notes of Second Hearing, 7 March 2013
Annex B2 Transcript Notes of Third Hearing, 14 March 2013
Annex C Complaint-Affidavit of Ms. Cecilia D. Lobo, dated 21 February 2013
Annex C1 Complaint-Affidavit of Mr. Sonny Boy T. Manalo, dated 21 February
2013
Annex D Minutes of Emergency Meeting of the 2013 Board, 9 February 2012
Annex D1 Minutes of Meeting of the 2010 Board, 15 September 2010
Annex D2 Minutes of Meeting of the 2010 Board, 14 October 2010
Annex E Email sent to Mr. Roderick B. Ramos, dated 16 March 2013
Annex E1 Attachment of Mr. Roderick B. Ramos to an email sent to Mr. Sonny Boy
Manalo, dated 17 March 2013
Annex E2 Email sent by 2010 Vice-President Roderick B. Ramos to the 2010
Treasurer Aisa de la Torre- Morana, dated 8 September 2010
Annex E3 Email sent by Fe Angela M. Verzosa to Christopher Paras, dated 13
October 2010 offering her advice/recommendations on the time deposit
Annex E4 Email sent by Ana B. Fresnido to Fe Angela M. Verzosa, 15 October 2010
Annex E5 Email sent by 2010 President Christopher C. Paras to Aisa dela Torre-
Morana, dated 3 January 2011
31
Annex E6 Email sent by 2010 President Christopher C. Paras to Aisa dela Torre-
Morana, dated 13 January 2011
Annex E7 Email sent by 2010 President Christopher C. Paras to Aisa dela Torre-
Morana, dated 25 January 2011
Annex E8 Email sent by Aisa dela Torre-Morana to Mr. Paras, 25 January 2011
Annex F SEC incorporation papers in PAARL Online official website:
https://sites.google.com/site/paarlonlineorg/home/home
Annex G Audited Financial Report, 2004
Annex G1 Report of Independent Auditors, 2010 submitted by Mario Enrique A. de
los Reyes on 17 December 2011
Annex G2 Report of Independent Auditors, 2011 submitted by Mario Enrique A. de
los Reyes on 12 July 2012
Annex G3 Treasurer’s Report for 2009
Annex G4 Treasurer’s Report for 2011
Annex G5 Treasurer’s Report for 2012
Annex H PAARL Newsletter, 2010 January-March issue
Annex H1 PAARL Newsletter, 2010 April-June issue
Annex H2 PAARL Newsletter, 2011 January-March issue
Annex I Amendments to the By-Laws of 2010
Annex J Time Deposit Certificate with BPI Family Savings Bank declared to be
fake by BPI Family Savings Bank – Pedro Gil Branch
Annex J1 Time Deposit Certificate with Equitable-PCIB with handwritten remarks
“Turned Over Original Certificate” and the signature of Christopher Paras
Annex K Turn-Over Document signed by Jocelyn T. Balangue and Aisa de la Torre-
Morana on 13 February 2010
Annex L Manual of Policies and Procedures outlining the responsibilities of the
Council of Elders
32
Annex M 2010 Secretary’s Certification of Board Resolution No. 6, dated 9
November 2010 attached to the Letter of BPI Family Savings Bank, dated
27 February 2013
Annex M1 Secretary’s Certificate of Board Resolution, dated 20 February 2013
Annex N Withdrawal slip from PAARL Conference Trust Fund Account No.
45800-883-12 with BDO, dated 18 October 2010
Annex N1 Withdrawal slip from PAARL Conference Trust Fund Account No.
45800-883-12 with BDO, dated 18 November 2010
Annex O Application form for Manager’s check and Manager’s Check issued by
BDO dated 18 November 2010
Annex P Bank Statement for the month of December 2010 for the Maxi-Check
Account 5951-078-206 with BPI Family Savings Account
Annex Q Check no. 086073 of PAARL’s Maxi-Check Account 5951-078-206 with
BPI Family Savings Bank “pay to cash” in the amount of Php 1,040,000
Annex Q1 12 “blank” checks issued “pay to cash” Nos. 41629-30, 41637-39, 41643,
41646, 86053, 86055, 86060, 86074, and 86077
Annex R Passbook of Maxi-Saver Account No. 5953-3395-97 under the name of
PAARL Scholarship Fund with BPI Family Savings Bank-Pedro Gil
Branch
Annex S Sworn statement of Aisa dela Torre-Morana
Annex S1 Sworn statement of Sonia Lourdes L.David
Annex S2 Sworn statement of Cecilia D. Lobo
Annex S3 Sworn statement of Sonia M. Gementiza
Annex S4 Sworn statement (Joint) of Olivia R. Aler, Marian R. Eclevia and Jorge
Erwin Rada
Annex S5 Sworn Statement of Ma. Theresa B. Villanueva
Annex S4 Sinumpaang Salaysay ni Ginoong Rudy Lara ng ForeFront, Inc.
Annex T Attendance Book of PAARL
33
End Notes
1 Letter of Appointment of Fe Angela M. Verzosa to lead the Fact-Finding Team, 14 February 2013 (Annex
A)
2 Transcript Notes of Fact-Finding Board, First Hearing, 28 February 2013 (Annex B)
3 Complaint-Affidavit of Ms. Cecilia D. Lobo, dated 21 February 2013 (Annex C)
4 Minutes of Emergency Meeting, 9 February 2012 (Annex D)
5 Transcript Notes of Fact-Finding Board, Second Hearing, 7 March 2013 (Annex B1)
6 Transcript Notes of Fact-Finding Board, Third Hearing, 14 March 2013 (Annex B2)
7 Email sent to Mr. Roderick B. Ramos, dated 16 March 2013 (Annex E)
8 SEC incorporation papers PAARL Online: https://sites.google.com/site/paarlonlineorg/home/home
(Annex F)
9 2004 Audited Financial Report (Annex G)
10
PAARL Newsletter, 2010 January-March issue, pp 1-2 (Annex H)
11
Ibid., p.7
12
Ibid., p. 2
13
2010 Amendments to the By-Laws (Annex I)
14
2004 Audited Financial Report (Annex G)
15
Time Deposit Certificate with Equitable PCIBank (Annex J)
16
Treasurer’s Report for 2009 (Annex G3)
17
PAARL Newsletter, 2010 April-June issue, page 6 (Annex H1)
18
Turn-Over Document signed by Jocelyn T. Balangue and Aisa de la Torre- Morana on 13 February 2010
(Annex K)
19
Attachment of Mr. Roderick B. Ramos to an email he sent to Mr. Sonny Boy Manalo, dated 17 March
2013, (Annex E1) corroborated by Sworn Statement made by Aisa de la Torre- Morana (Annex S)
20
Email sent by 2010 Vice-President Roderick B. Ramos to the 2010 Treasurer Aisa de la Torre- Morana,
dated 8 September 2010 (Annex E2)
21
Minutes of Meeting of 2010 Board, 15 September 2010 (Annex D1)
22
Manual of Policies and Procedures outlining the responsibilities of the Council of Elders (Annex L)
34
23
Time Deposit Certificate with Equitable-PCIB with handwritten remarks “Turned Over Original
Certificate” and the signature of Christopher Paras (Annex J1)
24
Email sent by Fe Angela M. Verzosa to Christopher Paras, dated 13 October 2010 re Time Deposits
(Annex E3)
25
Minutes of Meeting of 2010 Board, 14 October 2010 (Annex D2)
26
Email sent by Ana B. Fresnido to Fe Angela M. Verzosa, 15 October 2010 at 5:08pm (Annex E4)
27
Withdrawal slip from PAARL Conference Trust Fund Account No. 45800-883-12 with BDO, dated 18
October 2010 (Annex N)
28
Attachment of Mr. Roderick B. Ramos to an email he sent to Mr. Sonny Boy Manalo, dated 17 March
2013 (Annex E1)
29
Secretary’s Certification of Board Resolution No. 6, dated 9 November 2010 (Annex M)
30
Application form for Manager’s check, withdrawal slip, and Manager’s Check issued by BDO dated 18
November 2010 (Annex O)
31
Ibid.
32
Withdrawal slip from PAARL Conference Trust Fund Account No. 45800-883-12 with BDO, dated 18
November 2010 (Annex N1)
33
Bank Statement for the month of December 2010 for the Maxi-Check Account (Annex P)
34
Check no. 086073 of PAARL’s Maxi-Check with BPI Family Savings Bank (Annex Q)
35
Passbook of Maxi-Saver Account No. 5953-3395-97 under the name of PAARL Scholarship Fund with
BPI Family Savings Bank-Pedro Gil Branch (Annex R)
36
Check No. 086073 (photocopy of the reverse or back portion of the check) of PAARL’s Maxi-Check
with BPI Family Savings Bank (Annex Q)
37
Email sent by 2010 President Christopher C. Paras to Aisa dela Torre-Morana, dated 3 January 2011
(Annex E5)
38
Passbook of Maxi-Saver Account under the name PAARL Scholarship Fund (Annex R)
39
Email sent by 2010 President Christopher C. Paras to Aisa dela Torre-Morana, dated 13 January 2011
(Annex E6)
40
Email sent by 2010 President Christopher C. Paras to Aisa dela Torre-Morana, dated 25 January 2011
(Annex E7)
41
Transcript Notes of Fact-Finding Board, Second Hearing, 7 March 2013 (Annex B1)
42
Passbook of Maxi-Saver Account No. 5953-3395-97 under the name of PAARL Scholarship Fund with
BPI Family Savings Bank-Pedro Gil Branch (Annex R)
43
Email sent by Aisa dela Torre-Morana to Mr. Paras, 25 January 2011 (Annex E8)
35
44
PAARL Newsletter, January-March issue 2011, page 2 (Annex H2)
45
Sworn statement made by Aisa dela Torre-Morana (Annex S)
46
Sworn statements made by Sonia Lourdes L.David and Cecilia D. Lobo (Annexes S1 and S2)
47
Passbook of Maxi-Saver Account under the name PAARL Scholarship Fund No. 5953-3395-97 (Annex
R)
48
Sworn statements made by Sonia Lourdes L.David (Annex S1)
49
Treasurer’s report for 2011 presented at the 2012 General Assembly held 27 Jan 2012 in DLSU-D
(Annex G4)
50
Report of Independent Auditors, 2010 submitted by Mario Enrique A. de los Reyes on 17 December
2011, page 16 (Annex G1)
51
Report of Independent Auditors, 2011 submitted by Mario Enrique A. de los Reyes on 12 July 2012,
page 15 (Annex G2)
52
Sworn statement of Sonia M. Gementiza, 28 February 2013 (Annex S3)
53
Sworn statement of Sonia Lourdes L. David (Annex S1)
54
Minutes of Emergency Meeting, 9 February 2013 (Annex D) and Complaint-Affidavit of Cecilia D.
Lobo (Annex C)
55
Minutes of Emergency Meeting, 9 February 2013 (Annex D)
56
Ibid.
57
Letter of Request to BPI Family Savings Bank, dated 12 February 2013 (Annex A1)
58
Letter of BPI Family Savings Bank in reply to the request, dated 27 February 2013 (Annex A2)
59
Secretary’s Certification of Board Resolution No. 6, dated 9 November 2010 attached to the BFB Letter
(Annex M)
60
Complaint-Affidavit of Mr. Sonny Boy T. Manalo, dated 21 February 2013 (Annex C1)
and Sworn statement of Sonia M. Gementiza
(Annex S3)
61
Sworn statement of Sonia M. Gementiza (Annex S3)
62
Sinumpaang Salaysay ni Ginoong Rudy Lara ng ForeFront Inc. (Annex S4)
63
Secretary’s Certificate of Board Resolution, dated 20 February 2013 (Annex M1)