Ombudsman withdraws graft cases in Cebu lamppost scam

MANILA, Philippines - The Office of the Ombudsman has withdrawn two of six graft cases it filed just six months ago against public works officials and Cebu local government executives in connection with the alleged overpricing of lamppost used in preparation for the 12th Association of Southeast Asian Nations (Asean) Summit last year. Another case has been remanded due to procedural infirmities. According to memorandums signed by Special Prosecutor Dennis Villa-Ignacio and Tanodbayan Merceditas N. Gutierrez last October 15, the prosecution is now in doubt that it can prove its allegations that the lamppost deals with private defendants - Isabelo Braza, president of supplier Fabmik Construction Equipment Supply Company Inc; and Gerardo Surla, chairman of Gampik Construction and Development, Inc. - were indeed overpriced. The Third Division of the Sandiganbayan remanded SB-08-CRM-0273 to the Ombudsman for the Visayas last August 1 based on a finding that there was incomplete preliminary investigation because the defendants did not receive complete copies of pertinent documents consisting of over 300 pages. Last September 30, the Fourth Division dismissed SB-08-CRM-0272 on a motion by Deputy Special Prosecutor Robert Kallos. The latest Motion to Withdraw was filed only last October 16 in relation to SB-08-0271 pending before the Second Division. When the cases were filed last April 22, Gutierrez said investigators have gathered sufficient evidence to indict all the respondent public officials for binding the government in a ‘grossly disadvantageous contract’ with some lampposts padded by as much as ten times their actual price. At that time, the Ombudsman said there was "an exorbitant jacking up of the suppliers’ cost to the purchase price or acquisition cost the government was made to pay… (I)t can be said straightforwardly that there is overpricing. To jack up the cost this much is tantamount to undue enrichment at government expense. The contracts, therefore, are manifestly and grossly disadvantageous to the government." However, in her single-page order dated July 30, 2008, Gutierrez authorized the withdrawal of the cases and directed prosecutors "to conduct further investigation with the end view of obtaining additional evidence." Acting Deputy Special Prosecutor Jesus Micael and Prosecution Bureau II Acting Director Danilo Lopez said they are ‘apprehensive’ about questions raised by the defendants on the authenticity of crucial documentary evidence gathered by investigators. “(T)he information on these cases covers only the price for lamp posts excluding labor costs, transportation costs and other expenses incident to the installation of the lamp posts. Hence, it would be very difficult to prove that the said contract entered into by the Government was indeed manifestly and grossly disadvantageous as the entire contract should be taken into consideration to prove the commission of the crime," they stated. Lopez and Micael added they are worried by allegations that records from the Bureau of Customs which were used by the Office of the Ombudsman-Visayas as basis for the charges were ‘spurious and falsified import documents’. Charged in the cases were former Department of Public Works and Highways-Region VII director Robert Lala, former Mandaue City mayor Thadeo Ouano, Lapu-lapu City Mayor Arthuro Radaza and 18 others. From DPWH-Region VII, charged along with Lala were former Assistant Regional Director Gloria Dindin, Assistant Regional Director Marlina Alvizo, Maintenance Division OIC-chief Pureza Fernandez, Maintenance Division OIC-assistant chief Cresencio Bagolor, Legal Officer Agustinito Hermoso, Planning and Design Divison chief Luis Galang, Administrative division chief Restituto Diano, and Construction division chief Buenaventura Pajo. Other Mandaue City officials indicted were OIC-City Engineer Hidelisa Latonio, Assistant City Engineer Gregorio Omo and Engineers II Mario Gerolaga, Alfredo Sanchez Sr and Rosalina Denque. Also charged from Lapu-lapu City government were City Engineer Julito Cuizon, Assistant City Engineer Fernando Tagaaan Jr and Engineer IV Rogelio Veloso. - GMANews.TV