Olongapo mayor, council indicted over 'fast-tracked' lease deal

Olongapo City Mayor Rolen Calixto Paulino and members of the city council have been indicted for graft at the Sandiganbayan over the alleged fast-tracking of a lease agreement in favor of SM Prime Holdings Incorporated (SMPHI).

Graft Investigation and Prosecution Officer III Jane Ong filed one count of violation of Section 3(e) of the Anti-Graft and Corrupt Practices Act against Paulino.

The same charge was filed against Vice Mayor Aquilino Cortez Jr.; and then-Councilors Elena Dabu, Benjamin Gregorio Cajudo II, Eduardo Guerrero, Noel Atienza, Alruela Bundang-Ortiz, Edna Elane, Emerito Linus Bacay, Randy Sionzon, and Egmidio Gonzales Jr.

The charge sheet signed by Ombudsman Samuel Martires on January 23 also included Special Bids and Awards Committee (SBAC) members Tony-Kar Balde III, Cristiflor Buduhan, Anna Marin Florentino Sison, Mamerto Malabute, and Joy Fernandez Cahilig.

On January 7, 2014, SMPHI submitted an unsolicited proposal to the city government for the long-term lease of the Olongapo City Civic Center, where it will build a mall, hotel tower, call center buildings, parking slots, and a multimodal transport terminal.

Paulino and his co-accused, however, allegedly acted with undue haste in awarding the lease and development of the civic center to SMPHI between October 2014 up the first quarter of 2015.

The prosecution said the SBAC members recommended the issuance of the notice of awards to SMPHI despite their failure to follow the 60-day prescribed period from the publication of invitations to bid to awarding of the lease contract.

This period is provided under Republic Act No. 6957, or the law authorizing the financing, construction, operation and maintenance of government infrastructure projects.

Paulino issued the notice to SMPHI on October 31, 2014 but the last invitation for other prospective investors for the project was published on October 20, 2014, or almost two months before the 60-day period expires.

The city council then passed a resolution confirming the pre-mature notice awarded by Paulino, despite the lack of endorsement from the National Economic Development Administration and a review of the draft lease agreement by the Office of the Government Corporate Counsel.

The prosecution said the actions of the respondents showed a "common intention to fast track the project and deny other prospective bidders to make a better officer, to the damage and prejudice of the government."

A bail bond of P30,000 has been recommended for each accused in the case.

GMA News Online is currently reaching the camp of Paulino for comment as of posting time. —KBK, GMA News