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Ex-PSC head acquitted of graft; 6 co-accused convicted


The Sandiganbayan on Thursday acquitted former Philippine Sports Commission (PSC) chairman William Ramirez of graft in connection with the alleged anomalous procurement of cycling equipment in 2007.

Six of his co-accused, however, were convicted, according to the Sandiganbayan First Division.

In a 43-page ruling, the division said the prosecution failed to prove beyond reasonable doubt that Ramirez conspired with the other respondents — members of the PSC Bids and Awards Committee (BAC) — in approving a resolution, that paved the way for the procurement of the questioned items.

“After careful perusal of the PSC-BAC Resolution No. 034-2007, this Court finds the said document to be untainted with any badge of fraud or irregularity that would have alerted or compelled accused Ramirez to halt the transaction or at the very least to make further inquiry on the actions of his subordinates,” the ruling read.

“It is important to emphasize that conspiracy is not presumed…On this aspect, the prosecution did not discharge its burden to prove accused Ramirez’s guilt beyond reasonable doubt,” the court added.

Case vs. Ramirez

In a case filed in 2011, the Office of the Ombudsman charged Ramirez, four other PSC officials and two private individuals with one count of violation of Section 3 (e) of Republic Act 3019 or the Anti-Graft and Corrupt Practices Act.

The Ombudsman said Ramirez, in conspiracy with other PSC officials, gave unwarranted benefit, advantage and preference to Elixir Sports Company by awarding to it the contract for the procurement of cycling equipment worth P2,365,981 to be used by the Philippine athletes for the 24th Southeast Asian Games in Thailand.

The Ombudsman said the contract was awarded to Elixir without publishing first the invitation to bid in a newspaper of national circulation, contrary to what was required under RA 9184 or the Government Procurement Reform Act.

The Ombudsman also alleged that the contract was awarded to Elixir despite the company’s failure to meet the required three consecutive years of corporate existence. The Ombudsman said Elixir was in operation for barely a year when the contract was awarded.

Further, the Ombudsman alleged that the purchased equipment was overpriced by P671,200.

No conspiracy

In acquitting Ramirez, the court sided with his argument that as head of the PSC, he has the authority to delegate the function of reviewing a contract to his subordinates, in this case, to the PSC-BAC chairman and three members, before his approval.

The court said that under a previous Supreme Court ruling, (Arias vs. Sandiganbayan), “all heads of offices have to rely to a reasonable extent on their subordinates and on the good faith of those who prepare bids, purchases and supplies, or enter into negotiation.

The court said that while Ramirez may have relied too much on the recommendation of the BAC, this simple reliance is not tantamount to graft as it does not prove conspiracy or evident bad faith on his part.

“It may be argued that accused Ramirez may have been lax in relying too much on the assurance made by the PSC-BAC, but to prove that he conspired with them requires a conscious design on his part to commit that offense,” the resolution read.

“This is because conspiracy is not the product of negligence but of intentionality on the part of cohorts,” it added.

Following Ramirez’s acquittal, the First Division ordered the lifting of the hold departure order earlier issued against him as well as the return of the bail bond he had deposited before the court.

Six convicted

Meanwhile, the court found “guilty beyond reasonable doubt” the former PSC-BAC chairman Cesar Pradas and former BAC members Simeon Rivera, Marilou Cantancio and Eduardo Clariza. Also found guilty were private individuals Robert Magaway and Lawrence Andrew Magaway, owners of Elixir Sports Company.

They were sentenced to a minimum of six years to a maximum of 10 years of imprisonment with accessory penalty of perpetual disqualification from holding public office.

The court said the four PSC-BAC officials’ failure to publish the Invitation to Apply for Eligibility and to Bid (IAEB) in a newspaper of general circulation gave unwarranted benefit to the Magaways who had prior knowledge about the planned bidding. The Magaways’ Elixir company was eventually declared as the sole bidder for the contract.

The court said the PSC-BAC officials’ failure to review the eligibility of Elixir particularly its corporate existence was also tantamount to giving the company unwarranted benefits, advantage and preference through “gross inexcusable negligence.” —KBK, GMA News

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