Ex-Sen. Herrera in hot water for misuse of TUCP funds

Press Release
By TUCP
February 10, 2012

QUEZON CITY  –  The disgraced former Trade Union Congress of the Philippines (TUCP) Secretary-General Ernesto Herrera will be charged with a string of criminal charges once the external audit of TUCP projects is completed.

“Mr. Herrera will have a day of reckoning where he will be held accountable for serious allegations of siphoning funds allegedly into his personal bank account when he was still a leader of TUCP,” said Alan Tanjusay, TUCP Advocacy Officer adding: “if proven, this is an embarrassing fall and disgraceful way to end his political career.”

Based on reports by the external auditors who are conducting the audit of TUCP projects, Herrera had committed acts which are against accounting rules and standards by using his position and authority as the former General Secretary.

Former TUCP Finance Officer Eve Legion had signed an affidavit stating the former two-time senator instructed her to prepare vouchers, withdrawal slips, checks and/or orders of payment payable to him as cash advance.

“These cash advances sometimes were never liquidated or no reports made as to how these monies were spent,” explained Legion.

“Worse, while certain checks were payable to (former) Sen. Ernesto Herrera, he signed the checks himself as signatory which is not a sound policy on accounting, auditing and internal control system, considering that he is the payee,” Legion added.

Legion maintained that Atty. Democrito T. Mendoza, the TUCP President, was never consulted and was kept in the dark by Herrera on various expenditures and transactions. “They were carried without prior clearance and approval of the President,” emphasize Legion.

In an audit report prepared by an external auditor, Herrera made unliquidated cash advances amounting to 2.5 million pesos intended for a TUCP project.

The report showed the first check with an amount of 300,000 pesos Herrera signed and issued to himself was made on February 24, 2010. This check was deposited in his personal bank account a day later.

The second and third checks dated March 9, 2010 with an amount of 2 million and on March 26, 2010 with an amount of 250,000 pesos were signed by him and issued to his name. These were, again, deposited in his personal bank account hours after he issued the checks.

Brief backgrounder

October 12, 2011 - TUCP President Democrito Mendoza confronted then TUCP Secretary-General Ernesto Herrera with the external audited discovery of siphoning of TUCP funds allegedly into his personal bank account.

October 19, 2011 - Mendoza tendered his resignation to the TUCP General Council to bring up major discussions on transparency and accountability issues within the TUCP. The Council pleaded Mendoza to stay on and made him retract his resignation.

November 11, 2011 - Herrera took an oath of office before a municipal mayor in the Visayas assuming presidency of TUCP.

January 24, 2012 - Citing Herrera’s illegal and disloyalty inimical to the TUCP, the TUCP General Council removed Herrera as Secretary-General and replaced him with Victorino Balais, president of the Philippine Trade and General Workers Organization (PTGWO), a long-time affiliate of TUCP.