Ombudsman orders suspension of Catbalogan City mayor over 'irregular' market lease, lot purchase deals

Ombudsman Samuel Martires has ordered the preventive suspension of Catbalogan City Mayor Stephany Tan for at least six months after finding her guilty of grave misconduct and grave abuse of authority.

In separate orders signed by Martires on November 26, the Office of the Ombudsman directed Interior and Local Government Secretary Eduardo Año to immediately implement the order to suspend Tan without pay.

The first administrative case against Tan stemmed from the complaint filed by the Catbalogan Public Market Vendors, who accused her of giving unwarranted benefits to Philippine Primark Properties Inc. (PPPI).

The PPPI gave Tan an unsolicited proposal on the 28th of September 2016 for the lease of the Catbalogan City Public Market to create an interwoven market and mall development in the 10,000-square-meter property.

Tan secured the authorization of the City Council to enter a lease agreement with PPPI, but the private firm already occupied the public market and started collecting fees from vendors prior to the execution of the agreement on December 5.

The Ombudsman said it found strong evidence of guilt against Tan; Councilors Coefredo Uy, Melanie Macabare, Renante Aquino, Maximo Pescos, Beethoven Bermejo, Edward Uy, and Nanette Jasmin; other city officials Peachy Daguman, Elizabeth Lim, Ma. Theresa Aroza, Victor Pagarao, Arden Cuenco, and Dolores Tenedero based on the documentary evidence of the complainants.

The Ombudsman said the swift passage of the ordinance approving the lease agreement and allowing PPPI to occupy the public market before its execution proves Tan and the other respondents gave undue advantage to the company.

"The confluence of the foregoing actions show their conspiratorial act of giving unwarranted benefit to PPPI while showing less concern to the livelihood of the vendors who would surely be affected by the lease contract with a private entity, whose only concern would be to profit from the business venture," the order read.

Overpriced lot

The Ombudsman also found Tan liable for the overpriced purchase of a 5.8-hectare property in 2015.

Other respondents in this case include Vice Mayor Art Sherwin Gabon; Councilors Coefredo Uy, Jeffry Uy, Pescos, Edward, Christine Joy Escobar, Bermejo, and Jasmin; Romero Tuazon, Arthur Macabare, and Rizal Ignacio of the City Assessor's Office.

The complainant, a certain Bernard Jake Ramos, accused the city officials of purchasing agricultural land from Alvin Cesar Laohoo and Lorenzo Laohoo Jr. for P120 million even if the market value of the land is only P155,497.84.

The city council passed an ordinance on October 14, 2015 allowing the local government to secure a P125-million loan from the Development Bank of the Philippines.

On November 19, the provincial government of Samar urged the city council to renegotiate the price tag of the subject lots and base it on their zonal valuation.

Tan, however, still proceeded with the procurement in June 2016 for P120 million, or P1,500 per square-meter. Ramos claimed the land purchase was overpriced between P638 to P862.70 per square meter.

The Ombudsman found the price for the land spiked when the respondents converted its classification from agricultural to residential, industrial and institutional.

"The purchase by the local government of Catbalogan City is unacceptable, reeking with conspirational scheme to give unwarranted benefit to the Laohoos. The eventual purchase thereof which drained the government funds worth P120 million likewise shows a grossly prejudicial act against the government," the Ombudsman said.

The Ombudsman said the suspension of Tan and the other city officials will prevent them from affecting the investigation of the anti-graft body, particularly documentary evidence still under their control. — BAP, GMA News