City got over-billed by P128 million?: Casas, others face plunder

CEBU, Philippines — Former Cebu City administrator Atty. Floro Casas Jr., seven other officials and personnel of the Cebu City government, as well as an elected official from southern Cebu and six other individuals, are facing a string of criminal and administrative charges, including plunder, over the alleged “highly anomalous” garbage collection scheme during the administration of former mayor Edgardo Labella.

The garbage deal in question allegedly resulted in the city government being over-billed or overcharged in the amount of P239 million when the supposed obligation should have only been P111 million.

Aside from Casas, other government officials and personnel accused are Department of Public Services (DPS) chief, lawyer John Jigo Dacua, and Cebu Environmental Sanitation and Enforcement Team (Ceset) head and former Garbage Collection and Disposal in-charge Grace Luardo-Silva, city treasurer Mare Vae Fernandez, city accountant Jerome Visarra Ornopia, along with DPS inspection officers Allen Omlero Ceballos and Romelito Asinjo Datan, who is under the City Treasurer’s Office and DPS, and Mark Abarquez Ugbinar, also from the DPS and General Services Office.

Criminal charges were also filed against Barili councilor Jayra Angelic Maningo Ruiz-Javier, although NBI only identified her as a private individual. She is said to be the authorized managing officer/incorporator of Docast Constructions/JJ&J Construction and General Supply.

Other private individuals from the city’s contractor in garbage collection, Docast Construction, include its operation manager John David Sevilles Javier, encoder Erika May Quiño, and incorporators Jay Alexander Aguilar Ruiz, Maridel Maningo Ruiz, Robert Jay Maningo Ruiz and Jayvic Castrenz Maningo Ruiz.

The National Bureau of Investigation in Central Visayas (NBI-7) recently filed charges against these 15 individuals before the Office of the Ombudsman but disclosed the details to the media only yesterday.

This came after Cebu City Mayor Michael Rama, then vice mayor and presiding officer of the Sangguniang Panlungsod, requested NBI-7 to conduct an investigation against the contract between Docast Construction/JJ &J  Construction and General Supply and to file a case against them, if necessary, after a long debate in the council for alleged irregularities in the garbage collection and budget.

Verification from the NBI disclosed that Docast is the winning bidder for the collection, hauling and dumping of the city’s garbage during the administration of the late former mayor Labella.

In its investigation, NBI found “modus operandi”, including overbilling, padding, and ghost garbage deliveries.

With this, criminal and administrative charges were filed against the identified persons allegedly involved in the anomaly.

NBI-7 director Atty. Rennan Augustus Oliva said crimes committed based on their investigation include plunder, along with violations of Anti-Graft and Corrupt Practices Act, malversation of public funds of property, and gross neglect of duty.

It was found out that Docast, as a winning bidder, charged the city government P1,800 per ton of garbage it collected, hauled and dumped via a company-owned truck to an accredited dumpsite, which is the ARN Central Waste Management Inc. in Barangay Binaliw.

However, even without a contract with ARN, the Cebu City government, through the city and barangay owned-trucks, also directly delivered and dumped garbage at the said dumpsite with ARN charging the city government through Docast P600 per ton of garbage.

ARN also allegedly issued documents and detailed records of the actual tonnages of garbage delivered at the dumpsite by Docast, the city government and barangays.

It was then found out that billing statements sent by Docast/J&J and paid for by the Cebu City government from public funds showed falsified documents by producing its own “bogus/phony ARN truck scale slip and padded the tonnage of garbage the tonnage of garbage it had collected and dumped at ARN.”

The city government had also been charged by its contractor P1,800 instead of P600/ton.

On July 8, 2021, Docast/JJ&J was banned from delivering and dumping garbage at ARN due to its failure to pay the amount it owed to ARN from January 1, 2021 to July 7, 2021. However, the former still billed the city government from July 8 to August 10, 2021, showing that there had been “ghost deliveries.”

According to the complaint, Docast/JJ&J repeatedly submitted falsified and false billing statements which were the basis of the release of public funds which formed part of the sinister scheme to defraud government funds.

The computed over-billing and over-charging/collection by Docast/JJ&J from the city government minus the withholding tax amounts to P239,728,280.62. The city was only supposed to pay P111,431,280.00.

 Oliva said that Labella was not included in the charges as he was not a signatory. He added that in instituting the charges, NBI-7 was “evidence-based.”

Labella had given his former administrator Casas the authority to sign checks and other papers in the city government since the first year of his term.

‘Shocking’

Most of the government officials and personnel involved could not be contacted and only Luardo has so far answered reporters to air her side.

Luardo told The FREEMAN that she was shocked over her inclusion in the charges.

“Karon pa gyud ko kabalo…Sakit kayo. Nagtrabaho ra tag insakto, 32 years kong nagtrabaho sa gobyerno, wa ko madato, wa koy dakong balay, wa koy sakyanan, wa koy kwarta sa bangko, wala. Ako nagtrabaho ra gyud ko, naningkamot nga limyo atong syudad,” said Luardo.

Rama said he has not seen a copy of the complaint filed by NBI before the Ombudsman yet, adding he does not want to make a lengthy comment about it.

Rama, however, thanked the NBI for its action though it took the latter some time to build this case.

He said he requested help from the NBI for transparency and accountability.

“We cannot be just joking about public funds,” said Rama.

He said he is yet to discuss with his legal team and workforce what to do with the officials and personnel involved in the case, at least those who are still connected with the city government. – JMD (FREEMAN)