Ex-Mariveles mayor denies involvement in release of P23M to Cedric Lee

The former mayor of Mariveles, Bataan has denied involvement in the alleged anomalous release of P23 million local funds to the company of the controversial businessman Cedric Lee.

 

In a motion for judicial determination of probable cause filed with the Sandiganbayan Third Division, former Mayor Angel Peliglorio Jr. said the Office of the Ombudsman’s graft and malversation complaints filed against him have “no basis in fact and in law.”

 

Peliglorio pointed out that it was not the local government of Mariveles during his watch that approved and released the funds to Lee’s construction firm Izumo Contractors, Inc. but the Land Bank of the Philippines to which the Mariveles government had a Trust agreement for the supposed public market project.

 

“The Ombudsman seems to have rendered a decision without knowledge or did not appreciate that there was a Trust agreement between the Municipality of Mariveles and Land Bank,” Peliglorio said.

 

Peliglorio said the Ombudsman’s assertion that the Land Bank merely acted as the depository of the fund was “erroneous.”

 

“Such a conclusion is so far removed from the truth and has no basis whatsoever … By virtue of the said Trust agreement, possession and custody of the fund was vested with Land Bank and not the respondent nor the Municipality of Mariveles,” Peliglorio said.

 

Peliglorio said that while “the municipality of Mariveles would have preferred to have custody and control of the money,” the Union Bank of the Philippines, before approving the loan for the project, required “that a Trust Agreement placing the fund under custody of Land Bank be executed so that the banks can guarantee and safe guard the release of the fund.”

 

In the graft and malversation cases recently filed against Peliglorio and Lee with the Sandiganbayan, the Ombudsman said the two connived with each other for the release of the funds to Izumo.

 

The Ombudsman said that based on its investigation, the fund was released to Izumo in March 2005 “even without procedural safeguards and guarantee of performance,” and that the project has “never commenced.”

 

Peliglorio, however, pointed out that the Mariveles government was actually “kept in the dark” when the Union Bank approved the loan and when Land Bank released the fund to Izumo. Peliglorio claimed that the municipal government was not furnished with a copy of the loan agreement nor the loan amortization.

 

“The Union Bank refuse to reveal the details of the fund releases, actual recipients and other terms of the subject loan,” Peliglorio said

 

Peliglorio said the Municipal Council in fact passed a resolution in June 2007 rescinding the municipal government’s loan agreement with Union Bank “but it was too late as the fund was already released by Land Bank to Izumo.”

Bigger loan?

 

Peliglorio alleged that his political archrival, incumbent Mariveles Mayor Jesse Concepcion dropped the names of the officials of Union Bank and Land Bank from the complaint that the latter filed with the Office of the Ombudsman for Luzon after the incumbent mayor allegedly entered into a compromise agreement with the two banks “for an even bigger loan” to be approved and released to the municipal government under his administration.

 

“This transaction of Cedric Lee with Land Bank really appears irregular. But what is even more appalling is that the complainant entered into a compromise agreement with Land Bank and Union Bank thereby validating the illegal actions of the banks in releasing the money to Cedric Lee,” Peliglorio said.

 

Peliglorio attached to his motion a copy of the alleged compromise agreement between Concepcion, Union Bank and Land Bank but it was not made available to the media.

 

Concepcion’s complaint became the basis of the Ombudsman in conducting its probe on the questionable fund release and the eventual filing of the charges against Peliglorio and Lee before the Sandiganbayan.

 

In his own motion for judicial determination of probable cause filed with the Third Division last week, Lee maintained that his company was able to deliver to Mariveles government all the services specified in the Memorandum of Agreement (MOA) though the actual construction of the market has not commenced.

 

Lee said among the services his company has completed and turned over to Mariveles government were hydrological study, geological study, architectural design, detailed engineering design, soil sampling, topography profiling, and bankable comprehensive feasibility study.

 

Lee also said that Mariveles government has only paid Izumo the amount of P16.540 million though under the MOA, the local government was supposed to pay his company a total of P24 million.

 

Both Peliglorio and Lee asked the Third Division to defer the issuance of an arrest warrant against them until the court resolves their respective motions. — RSJ, GMA News