MANILA (2ND UPDATE) - Malacañang has dismissed Deputy Ombudsman Melchor Arthur Carandang for disclosing the alleged bank transactions of President Rodrigo Duterte and his family.

The Palace, in its decision signed by Executive Secretary Salvador Medialdea, said Carandang “was clearly only interested to broadcast an information adverse to the President.”

The Palace said Carandang’s “transgressions… constitute graft and betrayal of public trust, which gravely affect his fitness to remain in public office.”

Carandang’s dismissal carries with it the accessory penalties of cancellation of eligibility, perpetual disqualification from holding public office, bar from taking civil service examinations, and forfeiture of retirement benefits.

Carandang in September last year said the Office of the Ombudsman had started looking into the wealth of the President and his family, and that it was coordinating with the Anti-Money Laundering Council.

• Ombudsman investigates Duterte family's wealth

The AMLC, however, said it had not released any report to the Ombudsman as it has yet to evaluate its request for an investigation of the President's and his family's bank accounts.

Duterte and his family have repeatedly said they did not accumulate ill-gotten wealth.

• Duterte's SALN: How wealthy is the country's chief executive?

Office of the President, ipinag-utos na ang pagsisibak kay Overall Deputy Ombudsman Melchor Carandang dahil sa graft and corruption at betrayal of public trust | via @joycebalancio pic.twitter.com/vM4tv0DvSL

— DZMM TeleRadyo (@DZMMTeleRadyo) August 1, 2018

Incoming Ombudsman Samuel Martires deferred commenting on the dismissal order on Wednesday.

“I have yet to assume office and read the decision,” Martires said in a brief talk with reporters.

The Office of the Ombudsman confirmed in February that it had terminated the investigation into the President’s wealth last November 29. It cited the AMLC’s failure to supply information regarding the matter as reason in the termination of the probe.

• Ombudsman confirms end of probe on alleged Duterte wealth

Meanwhile, the charges against Deputy Ombudsman for Mindanao Rodolfo Elman and members of the Office of the Ombudsman-Mindanao fact-finding investigation team were dismissed for lack of substantial evidence.

The Palace had earlier suspended Carandanang pending investigation, even though a 2014 Supreme Court ruling declared as unconstitutional a provision in the Ombudsman Act of 1989 granting the Office of the President the power to remove a deputy ombudsman.

• Palace files admin raps vs deputy ombudsman

Former Ombudsman Conchita Carpio Morales had refused to implement Malacañang's suspension order against Carandang, citing the anti-graft body’s independence.

• Ombudsman to Duterte: This office will not be intimidated

The Office of the Ombudsman is now headed by Samuel Martires, a Duterte appointee.

-with a report from Adrian Ayalin, ABS-CBN News