Puno faces graft rap over radio deal

Graft charges were filed yesterday against former Interior and Local Government Secretary Ronaldo Puno before the Sandi-ganbayan for his alleged "unjustified" cancellation of a P200-million radio communications contract between the Philippine National Police (PNP) and Motorola Phlippines Inc. in 1998.

Ombudsman Aniano Desierto told reporters Puno was found accountable because he had canceled the Motorola contract after it had been approved.

Bail was set at P30,000 for Puno, who has been nominated by President Estrada as Philippine representative to the United Nations.

Similar charges filed against Puno's brother Renato and two other people, Antonio Dizon and Victor Reyes, were dismissed.

In a statement, Puno expressed confidence he would eventually be cleared of any wrongdoing.

"I state categorically that this charge against me is baseless," he said. "The legal conclusions arrived at are erroneous and that the findings of the Ombudsman with respect to my official actions are incorrect."

Court records showed Puno was accused of "causing undue injury to the government" for "unilaterally canceling, without justifiable reason" the radio contract.

Prosecutors at the Office of the Ombudsman said that in canceling the contract for the delivery of multi-trunked radio system and its installation, Puno acted "with evident bad faith or gross inexcusable negligence."

According to the charges, "there is sufficient ground to engender a well-funded belief that the crime charged has been committed and that the accused is probably guilty thereof."

A panel of Ombudsman investigators said that Puno had canceled the contract "to corner juicy transactions with the DILG (Department of the Interior and Local Government)."

"There were eight violations of the anti-graft law," Desierto said.

"It was found out that Puno acted either with evident bad faith, gross inexcusable negligence, manifest partiality and caused undue injury in unilaterally canceling, without justifiable reason, two perfected and duly-funded contracts between the PNP and Motorola."

Desierto said Motorola had suffered "undue injury" in the amount of $3.5 million and its representative, The Sys Inc., had been deprived commission amounting to P6 million.

The PNP had lost "additional four-channel repeater stations worth $104,000, and the government lost Motorola's counter trades amounting to $55 million, he added.

As a result, former PNP chief Deputy Director General Roberto Lastimoso asked the President to re-align the funds allocated for the canceled contract and use them for a radio communications contract in Mindanao.

Puno's lawyer Tony Zulueta, on the other hand, said the Motorola contract had not yet been perfected as claimed by the Ombudsman, since it had to be approved by a resolution of the National Police Commission and referred to the Office of the President for approval before implementation.

He said the move to restudy the contract had legal and technical basis, as proven by a PNP evaluation showing flaws in the proposal.

The Department of Budget and Management had conducted an extensive and independent, detailed report that supported Puno's move to use better-suited equipment for the project, he added.

The Ombudsman had adopted part of the recommendation of the five-man Ad Hoc Independent Citizens Committee headed by former Sen. Rene Saguisag.

Desierto said three criminal cases against Puno are pending with the Ombudsman.

Puno was replaced as interior and local government secretary on Jan. 8.

At the Senate, Sen. Mirian Defensor-Santiago warned that the Commission on Appointments "would suffer a further erosion of credibility" if Puno is confirmed as the permanent Philippine representative to the United Nations.

"With the Ombudsman's resolution finding probable cause for corruption against Puno, the CA is morally bound to reject his nomination," she said.

She said CA rules require that "the power of disapproval should be exercised to protect and enhance the public interest," but added that the Ombudsman's resolution "is not binding on the CA."

Under the rules, the National Bureau of Investiation can no longer issue a clearance to Puno because graft charges had already been filed against him, she said.

"The foreign affairs committee could simply sit on Puno's case and let it die a natural death," she said. "That would be a kinder exit than to issue a formal resolution recommending disapproval."

Last year, Santiago resigned from the CA after it confirmed Puno as interior and local government secretary.