San Simon, Pampanga mayor sued for alleged P80-M extortion try

A steel manufacturing firm has sued San Simon, Pampanga Mayor Abundio “Jun” Punsalan, Jr. before the Office of the Ombudsman over an alleged P80 million extortion attempt.

In a complaint received by the Ombudsman last August 19 and obtained by GMA News Online today, San Simon-based Real Steel Corp. accused Punsalan, Jr. of demanding P80 million from the steel manufacturing company in exchange of the mayor not revoking a Municipal Ordinance No. 24-0025 granting tax incentives to the company.

Punsalan is accused of grave misconduct, serious dishonesty, and conduct prejudicial to the best interest of the service.

The persons suing Punsalan on behalf of Real Steel were identified as an Irwin Chua and Melodie Arellano.

According to the complainant, the mayor’s initial demand of the mayor was pegged to as much as P155 million before it went down to P80 million.

Real Steel said the administrative complaint is the next step following an Aug. 5 operation where  operatives from the Intelligence Service of the National Bureau of Investigation (NBI) conducted an entrapment operation at Clark Freeport, Mabalacat City, Pampanga against Punsalan, Jr., for alleged robbery by extortion. 

The NBI operation is a result of a Department of Justice resolution ordering the Ombudsman to prosecute Punsalan based on Real Steel’s complaint.

“Respondent Punsalan failed to observe the norms required of his public office by demanding money from representatives of a steel plant located in San Simon, Pampanga. Mayor Punsalan should have restrained himself in demanding and accepting substantial amounts of money that redound to his private gain, disregarding public interest,” the complaint read.

Prior to the NBI operation, the complainant said the arrangement for the payoff was made between Real Steel and Punsalan last August 2 by San Simon’s Municipal Administrator, Doc Yang, without the mayor’s camp knowing that Real Steel already reached out to the authorities.

“Mayor Punsalan's conduct impaired the good image of government office that serves the public. Instead, Mayor Punsalan left an impression that public office is used as a tool for private gain to the detriment of honest entrepreneurs. His act of extracting money serves as a deterrent for private investments not only in San Simon, but possibly in the whole province of Pampanga,” the complaint read. — RF, GMA Integrated News