G.R. NO. 161950 - FLORENCIO B. CAMPOMANES, VS. PEOPLE OF THE PHILIPPINES

Ruling

accordingly the Philippine government thru the PSC was granted the right to organize and host the 30th World Chess Olympiad in Manila from June 6-25, 1992. That in connection with the 30th World Chess Olympiad, the PSC governing board passed Resolution No. 292 on June 4, 1991 appropriating the amount of Fourty [sic] Thousand Swiss Francs (SFr40,000.00) as monthly expenditure of FIDE from May 1991 to June 1992. That from October 1990 to June 1992 the PSC, also complying with its obligations under the bid offer, remitted to FIDE received in FIDE's behalf by its President, Florencio Campomanes the total amount of P12,876,008.00 in connection with the 30th World Chess Olympiad in Manila. That the amount of P12,876,008.00 was acknowledged as having been received by FIDE as shown by a letter dated December 22, 1995 of Willy Iclicki, FIDE Treasurer. Also the FIDE transmitted to the PSC two letter-explanations/clearances re the above funds received from PSC: Letter dated 8 December 1995: - 'As far as the World Chess Federation is concerned, Mr. Florencio Campomanes made his clarifications and there are no further queries on the amount assigned for FIDE for the Manila Olympiad 1992. As you may know, he was given a total vote of confidence by the General Assembly and elected FIDE Chairman.' -[see Exhibit "2-Campomanes"] Letter dated 29 May 1997: - 'Attached is my letter dated Singapore, 22 December 1995, where we had our FIDE Presidential Board meeting, as authenticated today 29 May 1997, by the Philippine Embassy in Brussels. - We began issuing official receipts only in late 1993 and it is FIDE practice not to issue official receipts unless specifically requested.' [see Exhibit "4-Campomanes"] [4] The Commission on Audit (COA) conducted an audit of the PSC's transactions from March 1990 up to June 1992. During the audit, the COA team, composed of team leader Rexy Mendoza ("Mendoza") and members Ignacia Rodrigo and Alexander Rodriguez, requested for the journal and checks and disbursements issued by the PSC pertaining to the P12 million appropriated to defray the organization, administration, and hosting of the Chess Olympiad and Congress. The COA team noticed irregularities in the claims payable to the FIDE. The irregularities consisted of the lack of acknowledgment receipts and of accounting liquidation attached to the disbursement vouchers. The COA defined an acknowledgment receipt as an official receipt evidencing that the FIDE received the funds from the PSC. An accounting liquidation is used to explain how the funds were expended pursuant to the purpose specified in the disbursement voucher. The COA invited the PSC officials to an exit conference on 27 October 1993. During the conference, the COA submitted its team's findings to the PSC and requested for the PSC's comment on the matter. In the absence of the PSC's comment, the COA prepared SAO Report No. 93-27. The report stated that the FIDE, through Campomanes, received P12,876,008 without ackn