LP exec asks Sandiganbayan to reconsider guilty verdict

Oriental Mindoro Governor Alfonso Umali Jr. has asked the Sandiganbayan to reverse its guilty verdict on his graft case in connection with the approval of an anomalous loan worth P2.5 million in 1994.

In a 40-page motion for reconsideration filed with the Sandiganbayan Fourth Division, Umali, through his legal counsel, said the court “erred” in its April 20 ruling finding him and two others guilty of graft for conspiring to award a loan agreement to a private individual.

“The prosecution failed to prove beyond reasonable doubt that accused Umali knew of and concurred with any criminal design of another person, or that there existed on his part a conscious design to commit an offense,” Umali's motion for reconsideration read.

“On the contrary, he evidently acted in good faith and sincerely believed that the loan to be extended to accused Atienza was necessary and lawful,” it added.

In its April 20 ruling, the Fourth Division said Umali, former Oriental Mindoro Governor Rodolfo Valencia and former board member Romualdo Bawasanta conspired with each other with “evident bad faith” and “manifest partiality” to award the P2.5 million loan agreement to a certain engineer, Alfredo Atienza, in 1994.

The loan was supposed to finance the cost of repair, operation and maintenance of Atienza's vessel MV Ace intended to ply the Calapan-Batangas-Calapan sea route.

The Fourth Division said the use of public funds for private purpose like the repair of a privately-owned vessel is unlawful.

In his motion, Umali, the treasurer of the ruling Liberal Party, argued that the credit agreement was executed “primarily for a public purpose,” which he said was “to weaken the monopoly of the shipping business in the Calapan-Batangas-Calapan sea route” as well as to promote fair competition.

"There is no question that increasing the vessels plying the Calapan-Batangas-Calapan sea route, which vessels are owned by as many freely competing common carriers as possible, would improve a vital public service, foster greater public comfort and convenience, and promote the general welfare of the people," the motion read.

Umali said the court also “erred” in saying that a provincial government had no authority to extend loan to a private individual.

"Transport is a basic service and the Provincial Government of Oriental Mindoro simply fulfilled its mandate of providing services to its people when it addressed their problem regarding sea transport," Umali said.

Umali also maintained that he had no participation in the approval and signing of the provincial resolution and memorandum allowing the provincial government to enter into a creadit agreement with Atienza. He said he also had no participation in the signing of the actual creadit agreement.

Umali, who was sentenced to up to 10 years imprisonment, said that he merely signed the request for application of allotment and disbursement voucher, as he “sincerely believed” that the intended disbursement of the fund was lawful and necessary "considering that the province was still reeling from the adverse effects of the typhoon that ravaged it."

Umali noted that the province was under a state of calamity at that time after the onslaught of Typhoon Monang.

Umali also pointed out that he consulted the provincial legal officer before signing the allotment request and disbursement vouchers. He said he also submitted the credit agreement to the provincial audit for review.

“The absence of any conspiracy involving accused Umali being evident, his liability, if any, in connection with the signing of the request for application of allotment and disbursement voucher should be separate and individual, and should at most be administrative or civil only... His acquittal of the crime charged is thus in order,” the motion said.

Valencia and Bawasanta have earlier filed their respective motions for reconsideration to the Fourth Division. —KBK, GMA News