Palawan governor faces graft over 2004 water deal

A complaint for graft and criminal charges has been lodged against Palawan governor Jose Alvarez in connection with the alleged anomalous deals entered into by Rio Verde Water Consortium Inc. (RVWCI), a company which he was a part of, and Cagayan de Oro Water District (COWD).

Michelle Fox, a Palawan resident, filed charges of graft, and violations of the procurement law and the Commission on Audit Circular on Irregular Expenditures against Alvarez, four officials of RVWCSI and five officials of COWD in connection with the deal they made in 2004.

In her complaint filed with the Office of the Ombudsman, Fox cited the results of a COA report which uncovered irregularities regarding the contract RVWCSI signed to supply water to COWD.

Among the supposed red flags found by state auditors were the awarding of the deal to the company despite being declared a “non-responsive bidder” by the bids and awards committee, and the water district’s agreement to RVWCSI’s proposal to revise the original project proposal for the construction of the 3-kilometer water pipe, which resulted in an additional cost of P47.9 million.

Instead of improving water supply, COA said losses increased after the bulk water supply agreement was implemented in 2008 compared to 2006 when COWD was pumping its own water supply.

State prosecutors had recommended the filing of graft charges against concerned RVWCSI and COWD officials.

Fox said Alvarez and other officials of RVWCSI and COWD involved in the deal should be held liable for graft not just for revising the project proposal for the construction of the water pipe, but also for allegedly executing a “grossly disadvantageous” and allegedly fraudulent contract.

Also charged with Alvarez were Fiorella Azura, Bienvenido Santos, Roberto Lozada and Chona Alvarez of RVWCSI, and Federico Gapuz, Raymundo Java, Sarah Borja, Sandy Bass Jr. and Francisco Mendez of COWD. —KBK, GMA News