| Fua's Unexplained Wealth? | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
April 2004 In the next series of articles, I will be reporting in detail the financial statements of former Congressman and currently Governor of Siquijor Orlando B. Fua. The data is taken from his Statement of Assets and Liabilities (SAL) filed at the Philippines House of Representatives. The records spanned nine years since he took office as the lone representative of the District of Siquijor. From Five to Six Figure Income In his first filing of the SAL dated June 30, 1987, Fua stated his family income from the prior year at P58,199. The statement also listed his total family and personal expenses at P24,000 and income taxes paid of P1,580 which left him a net income of P32,619. By the following year his income rose to P204,000 solely from his salary as congressman. 621% Return In 1987, Fua listed his total assets at P748,000. When he left office in 1997 his assets skyrocketed to P4,650,000, a 621% increase. All these with a cumulative salary income of P1,836,000 for the nine years he served as congressman. His SAL taken under oath stated no other income aside from his government salary. Where did this gaping imbalance of P2,814,000 come from? Liabilities Reduced to Zero By his December 31, 1988 filing Fua’s total assets increased by P230,746 to P979,000. Cash decreased by P80,000 but his bank deposits increased by P153,746, a net increase of P73,746 in his Cash & Bank accounts. Real Estate increased by P25,000, furniture & equipment rose by P57,000 and vehicles went up by P75,000. His liabilities as of June 30, 1987 were P227,000 but by end of 1988 it was reduced to ZERO. Accounting logic would mean the reduction of his liabilities could be due to the following:
In either case, Fua’s statements did not support it. It actually went against it. He did not sell any assets instead he bought more assets. Conflicting Statement In his June 30, 1988 filing, he stated his family income from the preceding year at P137,000, family and personal expenses at P60,000 and income taxes paid at P17,515.56. On the other hand his December 31, 1988 filing stated his family income from the preceding year at P204,000, family and personal expenses at P160,000 and income taxes “not determined yet”. Which one is correct? Unexplained Wealth So where did the money come from to pay off P227,000 in debts and the purchase of additional assets worth P230,746 which adds up to P457,746? Even if he had the government pay for his family and personal expenses and had the whole P268,000 salary income he received in 1988 at his disposal, where did he get the P189,746. Even more stunning is if you use his 1988 net income of P147,045 (after paying his family and personal expenses and income taxes), P310,701 is wealth unexplained? Possible Scenarios Let’s entertain some plausible answers. The shortfall came from his friends and family’s business. His real estate generated rental income. He had received accounts receivable payments from his prior law practice. These can be legitimate answers but this would mean his SAL is falsely reported. Which one is true? Watch for the next series! The table below summarizes what is described above:
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