PRESS RELEASE

EX-BASILAN MAYOR PLEADS GUILTY TO

DELAYED GSIS, PAG-IBIG AND TAX REMITTANCES
Jul 20, 2018 | Press Release

Former Sumisip, Basilan Mayor Haber Amin Asarul and Municipal Treasurer Camlian Borjal
were convicted by the Sandiganbayan of 20 counts of violation of Section 6(b) of Republic
Act No. 8291 (Government Insurance Service System Act); 19 counts of Section 5 Rule VI of
the Implementing Rules and Regulations of Presidential Decree 1752 (Home Development
Mutual Fund Law); and 23 counts of violation of Section 2.81 of Bureau of Internal Revenue
Regulation No. 2-98 in relation to Section 272(b) of Republic Act No. 8424 (National Internal
Revenue Code).

Documents revealed that during the incumbency of Asarul, the municipality failed to remit
GSIS contributions from October 2007 to May 2008 while delayed remittances were
reported from June 2008 to May 2009. In addition, for the period from October 2007 to
May 2009, Asarul and Borjal failed to remit the Pag-ibig contributions on time. Untimely
remittances of taxes were also found to have been committed from July 2007 to May 2009.

After being informed of the nature of the allegations, both accused waived the full reading
of the Informations in the cases. Upon their re-arraignment, Asarul and Borjal, assisted by
their counsel, manifested to the court their change of plea from “not guilty” to “guilty.”

The Sandiganbayan sentenced them to each pay a fine of P5,000.00 in each of the cases.
###
SAMAR MAYOR TO FACE GRAFT CHARGES OVER
P2.6M CATERING DEAL
Jul 20, 2018 | Press Release

Mayor Jocelyn Uy-De Jesus of Jiabong, Samar, is set to face 16 counts of violation of
Section 3(e) of Republic Act No. 3019 (Anti-Graft and Corrupt Practices Act) before the
Sandiganbayan for the anomalous procurement of catering services in 2012.

Also included in the charge sheet are Municipal Budget Officer Arnaldo Morabor, Municipal
Treasurer Erna Morabor, Municipal Accountant Rolando Jabeguero and private respondent
Helen Labrague, proprietor of Helen’s Catering Services.

In its Annual Audit Report for 2012, the Commission on Audit (COA) uncovered that the
municipality disbursed a total of P2,617,912.50 for the procurement of 32 catering
service contracts, 16 of which were awarded to Helen’s Catering Services.

The COA found that respondents illegally resorted to the alternative method of
procurement even if the Approved Budget for the Contract for the individual transactions
exceeded the thresholds set by Republic Act No. 9184 (Government Procurement Reform
Act).
SAMAR MAYOR TO FACE GRAFT CHARGES OVER
P2.6M CATERING DEAL
Jul 20, 2018 | Press Release

Investigation also uncovered that: supporting documents do not contain details such as
the dates of activity; purchase requests, purchase orders and disbursement vouchers are
undated and without any control or reference numbers; lack of quotations from suppliers
who allegedly submitted their canvass; non-submission of eligibility documents of
supplier; and lack of accomplished requests for quotation.

The COA also noted the low turn-out of participants in the activities wherein the
municipality failed to submit any attendance sheets.

In the Ombudsman’s Joint Resolution, it was stated that “it is undisputed that the value
of the 16 catering transactions exceeded the threshold set by law, yet public respondent
Arnaldo proceeded with the procurement thereof without public bidding. Despite the
patent irregularities in the supporting documents, public respondents De Jesus, Erna and
Jabeguero still caused payment to private respondent [Labrague]. Public respondents’
flagrant disregard of R.A. No. 9184 is evidenced by the fact that they committed the
infractions 16 times in 2012.”
SAMAR MAYOR TO FACE GRAFT CHARGES OVER
P2.6M CATERING DEAL
Jul 20, 2018 | Press Release

In the related administrative case, Arnaldo, Erna and Jabeguero were found guilty of
Grave Misconduct and were ordered dismissed from the service. Arnaldo was also found
guilty of Serious Dishonesty.

The penalty of dismissal from the service carries the accessory penalties of perpetual
disqualification from holding public office, forfeiture of retirement benefits, cancellation
of eligibility, and bar from taking the civil service examination.

In case of separation from the service, the penalty is convertible to a fine equivalent to
respondents’ salary for one year.

Section 3(e) of R.A. No. 3019 prohibits public officials from causing any undue injury to
any party, including the government, or giving any private party any unwarranted
benefits, advantage or preference in the discharge of official administrative or judicial
functions through manifest partiality, evident bad faith or gross inexcusable negligence.
###
FORMER MAGUINDANAO GOVERNOR TO FACE
CHARGES OVER P500M FUND MISUSE
Jul 20, 2018 | Press Release
The Office of the Ombudsman found probable cause to charge former
Maguindanao Governor Datu Sajid Islam Ampatuan and Provincial Treasurer Osmeña
Bandila before the Sandiganbayan with violation of Section 3(e) of Republic Act No.
3019 (Anti-Graft and Corrupt Practices Act), Articles 217 (Malversation of Public
Funds) and 218 (Failure of Accountable Officer to Render Account) of the Revised
Penal Code (RPC).

Also included in the charge sheet for violation of Section 3(e) of R.A. No. 3019 and
Article 217 of the RPC are Provincial Accountant John Estelito Dollosa and State
Auditor Danny Calib of the Commission on Audit (COA).

Records show that in June 2009, the province entered into several Memoranda of
Agreement (MOAs) with the Department of Agrarian Reform (DAR) for the
construction and rehabilitation of the province’s farm-to-market roads with a project
cost of P500 million. Despite repeated demands from the DAR to account for the
funds, respondents failed to submit supporting documents such as liquidation reports,
list of beneficiaries, and certificates of acceptance to support the disbursement of
funds and implementation of the project.
FORMER MAGUINDANAO GOVERNOR TO FACE
CHARGES OVER P500M FUND MISUSE
Jul 20, 2018 | Press Release
Based on the COA findings, that “the roads were in bad condition and far shorter than
the reported lengths, and the reported accomplishments were no longer visible, are
sufficient proof to engender a well-founded belief that public funds were
misappropriated for respondents Ampatuan, Bandila, Dollosa and Calib’s own private use
or benefit.”

“As the head and representative of the Province, respondent Ampatuan was primarily
tasked by the MOAs to receive the funds and to oversee the implementation of the
projects. There is no dispute that the Province received the funds. The investigation
conducted by the COA, however, belie the assertion that the projects were
implemented. On the other hand, respondents Bandila, Dollosa and Calib tried to make
it appear that the projects were implemented by executing Certificate No. 02 which
states that the amount of PhP499,999,850.00 out of the PhP 500,000,000.00 of the funds
obtained from DAR was disbursed by the Province from June 2009 to September 2009.
These circumstances sufficiently establish that respondents Ampatuan, Bandila, Dollosa
and Calib came to an agreement concerning the misappropriation of the funds and
decided to commit the same,” stated the Ombudsman’s Resolution. ###
OMBUDSMAN INDICTS NAPOLES, 6 OTHERS IN
FERTILIZER FUND SCAM
Jul 20, 2018 | Press Release
The Office of the Ombudsman found probable cause to charge Janet Lim Napoles and
officials from the Department of Agriculture Regional Field Unit XIII (DA RFU) in Butuan
City for the irregularities in the procurement of fertilizers for the Agricultural
Reinforcement Project of the municipality of Del Carmen, Surigao Del Norte.

Napoles, together with DA Assistant Regional Director Edgardo Dahino, Chief

Administrative Officer Jessica Da-an, Administrative Officer Merylinda Santos, and
Accountant III Gerry Leop; private respondents Evelyn De Leon and Rodel Pontillas, both
from the Philippine Social Development Foundation, Inc. (PSDFI), are set to face trial
before the Sandiganbayan for violation of Section 3(e) of Republic Act No. 3019 (Anti-
Graft and Corrupt Practices Act) and Malversation of Public Funds.

Investigation uncovered that in May 2004, the DA RFU Caraga entered into a
Memorandum of Agreement (MOA) with the municipality and PSDFI for the procurement
of fertilizers with a project cost of P5 million.
OMBUDSMAN INDICTS NAPOLES, 6 OTHERS IN
FERTILIZER FUND SCAM
Jul 20, 2018 | Press Release
Upon scrutiny, it was discovered that the project had no appropriation as Republic Act
No. 9162 (General Appropriations Act of 2002), the supposed source of funding, was
effective only until December 2003, hence, it could not have served as the
appropriation law for the MOA executed in 2004.

DA officials released the entire fund to PSDFI, as NGO-implementor, without complying

with Commission on Audit Circular No. 96-003 which requires funds to be released in
three tranches. Records also show that no fertilizers were distributed in the
municipality based on certifications issued by the municipality’s agriculturist.

In a Resolution approved on 11 July 2018, Napoles was indicted “for conspiring with
public respondents for ordering the reactivation of the PSDFI and entering into the
transaction with the DA RFU Caraga and the municipality using PSDFI as conduit for the
project; by allowing the issuance of fake official receipts to make it appear that the
PSDFI received the public funds; by issuing a report of disbursement using her
employee, respondent de Leon, to make it appear that the PSDFI used the P5 million in
the acquisition of fertilizers, and by purchasing fake liquid fertilizers for P100.00 per
300ml/bottle and selling them to DA RFU Caraga at P800.00 per 300ml/bottle.” ###
OMBUDSMAN DISMISSES BACOLOD CITY
REGISTRAR OF DEEDS
Jul 19, 2018 | Press Release
The Office of the Ombudsman found Romulo Gonzaga, Registrar of Deeds of Bacolod City,
Negros Occidental, guilty of Conduct Prejudicial to the Best Interest of the Service and
was ordered dismissed from the service.
The penalty of dismissal from the service carries the accessory penalties of perpetual
disqualification from holding public office, forfeiture of retirement benefits,
cancellation of eligibility, and bar from taking the civil service examination.
During the investigation, it was found that Gonzaga caused the cancellation of three
Transfer Certificates of Title (TCTs) over properties owned by the estate of the late
Gloria Esteban without the required Certificate Authorizing Registration (CAR) issued by
the Bureau of Internal Revenue. TCT Nos. T-171828, T-171829 and T-171830 were
cancelled solely on the basis of an affidavit-request filed by a certain Glorieta Javelosa
on 14 February 2011. Consequently, TCT Nos. T-281788, T-281790 and T-281789 were
issued to Javelosa on the same date of the affidavit-request. The validity of the new
TCTs was subsequently assailed by the Estate of Esteban.
On 27 April 2012, respondent Gonzaga acquiesced to the request for the reinstatement
of the interest of the original owner, Gloria Esteban. As a result, TCT Nos. T-281788, T-
281790 and T-281789 were cancelled, and TCT Nos. 2012001622 to 24 were issued
without passing through the BIR or without the required CAR or Tax Clearance Certificate
(TCC).
OMBUDSMAN DISMISSES BACOLOD CITY
REGISTRAR OF DEEDS
Jul 19, 2018 | Press Release
According to the Ombudsman’s Decision, “from the evidence of the parties, it can be
established that respondent Gonzaga, the Register of Deeds of Negros Occidental, not
only wrongfully annotated the Deed of Donation without the corresponding CAR and TCC
in gross violation of Sec. 95 of the NIRC (National Internal Revenue Code), but also
committed subsequent acts designed to conceal his wrongdoing and evade responsibility,
therefor, in the guise of “corrective measures” that were in blatant disregard of the
provisions of P.D. 1529 (Property Registration Decree), thereby causing great prejudice
to the integrity of the system of property registration and albeit unbeknownst to them,
prejudice to the successors-in-interest of the properties.”
“Respondent in effect turned the property registry of Negros Occidental into some kind
of scratch paper —to be altered, amended or corrected in whatever way he deemed
most convenient to himself, without regard to the consequences thereof as would affect
other parties,” added the Ombudsman Decision.
Deputy Ombudsman for the Visayas Paul Elmer Clemente directed the Administrator of
the Land Registration Authority to implement the dismissal order.
In the related criminal case, the Office of the Ombudsman found probable cause to
charge Gonzaga before the Regional Trial Court with violation of Section 3(e) of Republic
Act No. 3019 (Anti-Graft and Corrupt Practices Act). ###
DAVAO ORIENTAL EX-MAYOR TO FACE GRAFT
Jul 19, 2018 | Press Release
The Office of the Ombudsman found probable cause to charge former Mayor William Duma-
an and Municipal Treasurer Arnold Samon, both from Caraga, Davao Oriental, with three
counts of violation of Section 3(e) of Republic Act No. 3019 (Anti-Graft and Corrupt Practices
Act) for irregularities in the disbursement of funds for the municipality’s founding
anniversary celebration in 2011.
In addition, the Office of the Ombudsman also found probable cause to charge Samon with
three counts of violation of Article 218 (Failure of Accountable Officer to Render Accounts)
of the Revised Penal Code.
Documents show that in July 2011, respondents authorized the disbursement
of P1,479,200.57 as cash advances for expenses in the founding anniversary without
observing pertinent rules required by the Commission on Audit and the Local Government
Code.
A perusal of the three disbursement vouchers shows that the municipal accountant did not
sign the certification that the allotment had been obligated for the purpose indicated and
the supporting documents were complete. Respondent Samon signed the certification that
only P463,800.75 was available to fund the activity. Despite the deficiencies, respondent
Duma-an approved the payment of these disbursements. Duma-an signed the checks with
Samon as the other signatory and, at the same time, the payee.
“Payment of the cash advances should not have been made for the deficiencies were so
blatant. Moreover, these 2011 cash advances have not been liquidated by respondent
Samon. Thus, respondent Duma-an failed to substantiate his claim that the cash advances
were used for their intended purpose,” according to the Ombudsman Resolution. ###
FORMER QUEZON CITY BRGY. CAPTAIN
CONVICTED OF GRAFT
Jul 18, 2018 | Press Release
Presiding Judge Marilou Runes-Tamang of Branch 98 of the Regional Trial Court
(RTC) of Quezon City convicted Fermin Bilaos, former Barangay Chairman of
Bagong Pag-asa, Quezon City, of violation of Section 3(e) of the Anti-Graft and
Corrupt Practices Act (Republic Act No. 3019).
Bilaos was sentenced to imprisonment of two years and one month as
minimum to four years and six months as maximum.
Investigation uncovered that from September 2006 to March 2009, Bilaos
utilized the barangay hall as business office for Pistoleros and Detective
Security Force, Inc., a private security agency owned by him.
According to the RTC’s findings, “Bilaos conducted business in
the barangay hall of Brgy. Pag-asa, Quezon City on a daily basis. The hiring
and selection of security guards, operation of the business, payments of
salaries were all done in the premises of the barangay hall. Even the
meetings with clients and potential clients were also handled in the area. x x
x The 201 files, security equipment, firearms and radio were also kept inside
the barangay hall.”
FORMER QUEZON CITY BRGY. CAPTAIN
CONVICTED OF GRAFT
Jul 18, 2018 | Press Release

The RTC Decision stated that “it is enough that Bilaos had
squandered unjustified favor to himself and Pistoleros in the
exercise of his office as Barangay Captain. He acted with
manifest partiality in conducting the affairs of Pistoleros in
the barangay hall, when the office of the barangay hall is
constituted to serve its constituents, thus causing undue injury to
the government.”

Section 3(e) of R.A. No. 3019 prohibits public officials from

causing any undue injury to any party, including the government,
or giving any private party any unwarranted benefits, advantage
or preference in the discharge of official administrative or
judicial functions through manifest partiality, evident bad faith
or gross inexcusable negligence. ###
ZAMBOANGA DEL SUR VICE-MAYOR GETS JAIL
TERM FOR GRAFT
Jul 17, 2018 | Press Release

The Sandiganbayan convicted former mayor, now vice-mayor,

Allan Damas of Kumalarang, Zamboanga del Sur, of violation of
Section 3(e) of Republic Act No. 3019 (Anti-Graft and Corrupt
Practices Act).
Damas was sentenced to imprisonment ranging from six years
and one month as minimum to eight years as maximum with
perpetual disqualification from holding public office.
Records show that in July 2006, Damas appointed a certain
Nellie Toledo, his first cousin, as Municipal Treasurer. Prosecutors
presented a certification dated 14 July 2006, signed by Damas as
recommending authority, falsely claiming that he is not related
to Toledo within the fourth civil degree of consanguinity or
affinity.
ZAMBOANGA DEL SUR VICE-MAYOR GETS JAIL
TERM FOR GRAFT
Jul 17, 2018 | Press Release

In the Sandiganbayan’s Decision, it was stated that “the accused

recommended Toledo for the position of Municipal Treasurer of
Kumalarang, and signed and issued a certification that Toledo is not
related to him, as recommending authority, within the fourth civil
degree of consanguinity or affinity. Without such recommendation and
certification, Toledo would not have been considered, much less
appointed, for the position, in view of the prohibition under Sec. 79 of
R.A. No. 7160 [Local Government Code].”

Section 3(e) of R.A. No. 3019 punishes a public officer who, in the
discharge of official functions, act with manifest partiality, evident bad
faith, or gross inexcusable negligence causing undue injury to any
party, including the government, or giving any private party
unwarranted benefits, advantage, or preference. ###