Ombudsman affirms indictment of Floirendo over BuCor-TADECO deal

Davao del Norte Rep. Antonio Floirendo Jr. has lost his appeal for the Office of the Ombudsman to reconsider charging him for graft over his alleged financial interests in the anomalous lease agreement between the Bureau of Corrections and the Tagum Agricultural Development Corporation (TADECO), Inc.

In an order signed by Ombudsman Conchita Carpio Morales on Monday, the anti-graft body denied the motion of Floirendo to reopen the case for submission of documentary and testimonial evidence.

"Wherefore, the motion to reconsider the September 4, 2017 resolution and to reopen the case for submission of documentary and/or testimonial evidence is hereby denied," the dispositive portion read.

The Ombudsman also said it found no cogent reason to favor Floirendo's motion for reconsideration and to reopen the case.

House Speaker Panteleon Alvarez charged Floirendo in March last year over his alleged interest in the Consolidated Joint Venture Agreement (JVA) between TADECO, whose major stockholder is Floirendo's family, and its subsidiary Anflo Management and Investment Corporation (ANFLOCOR).

Alvarez narrated in his complaint-affidavit that in 1969, TADECO entered into an agreement with BuCor to lease a portion of land in the Davao Penal Colony to be used for the former's banana plantation.

The Consolidated JVA was executed in 1979 which extended the period of lease for 25 years and renewed in May 2003 for another 25 years.

At the time the contract was renewed, Floirendo was already a representative of the 2nd District of Davao del Norte. But while he was serving as representative in 2003, Alvarez alleged that the lawmaker was also a stockholder of TADECO.

Citing data from the Securities and Exchange Commission, Alvarez said Floirendo was also a board member of ANFLOCOR from 1997 to 2015.

The Ombudsman said this means a breach in Article VI, Section 14 of the 1987 Constitution, which states that no member of Congress is allowed to intervene in any government contracts before any agency for his pecuniary benefit during his term of office.

In his motion, Floirendo assailed that he was not a major stockholder of TADECO when the contract was renewed thus he should not be indicted for violation of Section 3(h) of the Anti-Graft and Corrupt Practices ACt.

He cited the Code of Conduct and Ethical Standards for Public Officials and the Constitution in saying a member of Congress is only prohibited "from being a substantial stockholder of a private corporation having contract with the government."

"Not being a substantial stockholder of TADECO at the time it entered into a contract with BuCor, respondent-movant maintains that he did not breach the constitutional provision and thus there is no probable cause to indict him," the Ombudsman said, quoting Floirendo.

However, the Ombudsman said the provision is "self-executory" and does not need an implementing law, saying both provisions are entirely independent of each other and should both be complied with by a sitting member of Congress.

"It is again pointed out that whether respondent-movant intervened or acted in his official capacity in the forging of the contract is immaterial on the charge of violation of second mode of Sec. 3(h) of RA 3019 as mere possession of prohibited interest suffices," the order read. —NB, GMA News