Former Armed Forces of the Philippines chief of staff Diomedio Villanueva was charged with graft for an anomalous refund to a private company during his stint as postmaster general of the Philippine Postal Corporation.
According to the information filed by the Ombudsman at the Sandiganbayan, Villanueva, along with then assistant postmaster general Antonio Siapno and then acting director Leonido Basilio, violated the anti-graft and corrupt practices act for giving unwarranted benefit to Philpost USA, a private corporation based in New York, USA in 2003.
The Ombudsman accused Villanueva, Siapno, and Basilio of conspiring with one another for refunding to Philpost USA $1,031,936.04 or P53,043,834.52 representing alleged "Terminal Dues paid for mail matters sent to Royal Mail (UK post office)."
The Ombudsman said the refund was inappropriate since Philpost USA was not entitled to the damage of Philippine Postal Corporation.
Before his appointment as postmaster general, Villanueva was the military chief during the administration of former President Gloria Macapagal-Arroyo from 2001 to 2002.