MANILA – The Office of the Ombudsman has placed Insurance Commissioner Reynaldo A. Regalado under preventive suspension for six months without pay while it investigates administrative complaints related to the accreditation of insurance providers under the Personal Passenger Accident Insurance Program (PPAIP) for public utility vehicles.

In an order dated July 28, the Ombudsman said it found sufficient grounds to impose the preventive suspension pending the resolution of the administrative cases.

Regalado is facing complaints for Grave Misconduct, alleged violations of Republic Act No. 6713, or the Code of Conduct and Ethical Standards for Public Officials and Employees, and Republic Act No. 11032, or the Ease of Doing Business and Efficient Government Service Delivery Act.

According to the complaint, Regalado allegedly approved the accreditation of a third insurance consortium despite questions regarding its membership and the timeliness of its application.

The complaint also alleged a conflict of interest, citing Regalado’s previous role as senior counsel at the law firm representing the accredited consortium.

“Regalado was listed as Senior Counsel of AAQ Law. Regalado’s participation in any proceeding involving AAQ Law’s clients casts serious doubt as to his impartiality,” the Ombudsman’s order stated.

The complaint further alleged that Regalado failed to act on requests for documents related to the accreditation process, declined to release records needed for an appeal, and excluded the complainant’s legal representatives from a conference with the Insurance Commission.

Explaining the preventive suspension, the Ombudsman said there was sufficient basis to temporarily remove Regalado from office while the investigation is ongoing.

“This Office finds sufficient grounds for the issuance of an Order for Preventive Suspension against Regalado considering that there is strong evidence showing his guilt; the charges against him constitute grave misconduct; his continued stay in office may prejudice the investigation of the case filed against him; and, in order to preserve documents and evidence pertaining to this case which he has control and custody, and to avoid Regalado’s commission of further malfeasance and/or misfeasance in office,” the Order read.

The order also cited allegations that Regalado demonstrated manifest partiality by approving the accreditation of an insurance consortium despite alleged violations of the Insurance Commission’s own rules governing the PPAIP accreditation process.

According to the Ombudsman, the preventive suspension will remain in effect until the administrative case is resolved. It also said the order is immediately executory despite any motion for reconsideration or appeal, unless otherwise directed by the Ombudsman or a court of competent jurisdiction.

Aside from the administrative complaints, Regalado is also facing a complaint for alleged violation of the Anti-Graft and Corrupt Practices Act.