LWUA execs charge chief with graft, get sacked

Four deputy administrators of the Local Water Utilities Administration (LWUA) have sought the dismissal from office of Administrator Prudencio Reyes Jr. for alleged irregularities involving the P600-million Baguio Water Supply System project.

In graft charges filed last Wednesday in the Office of the Ombudsman, senior deputy administrator Simplicio Belisario Jr., deputy administrators Daniel Landingin, Emmanuel Malicdem and Rodolfo de Jesus accused Reyes of making a "premature and unsubstantiated" payment of over P25 million to the project's consulting firm.

The four executives, who have since been replaced, accused Reyes of "dishonesty, grave misconduct, neglect of duty and conduct grossly prejudicial to the best interest of the service."

In their affidavit filed with the Ombudsman, they sought a six-month preventive suspension of Reyes. The violation of the Anti-Graft and Corrupt Practices Act, they pointed out, warrants the administrator's suspecion from office.

Last Friday, or two days after the filing of graft charges, Reyes terminated the services of his accusers.

The four career executive service officers (CESO) have already questioned their removal from office in the Quezon City regional trial court.

In an interview at the LWUA offices in Balara, Quezon City, Reyes simply downplayed the accusations.

"This is what you have to face when you are a government official. It's really difficult to be in government service," he said, declining to elaborate.

During the interview, Reyes excused himself to attend to other matters. One of his special consultants at the Public Affairs Office spoke on his behalf.

The consultant, who asked not to be identified, said the four deputy administrators are questioning the drawdown of the P25-million expenses of Overseas Projects Corp. for Victoria Limited-Australia (OPCV), which is overseeing the rehabilitation and expansion of the Baguio City water supply system.

He explained that Reyes approved the payment of the accumulated expenses for the past three years to prevent further delays in the foreign-funded project.

However, the four accusers argued that Reyes signed and issued the buyer's certificate and request for drawdown even before the project components could be fully completed by the foreign consultant.

They claimed that Reyes' move was in violation of an existing agreement entered into by the water utilities firm and OPCV on Dec. 8, 1998.

"Under the agreement, the consulting firm shall be paid only upon LWUA's approval of the project designs and plans," they said. "The payment was made on the pretext that the system design was already completed."

In an 11-page complaint filed in the Quezon City RTC, the four accusers sought a writ of preliminary injunction barring Reyes from assigning new officials to take over their positions.

Prior to the termination of their services last Friday, Belisario was senior deputy administrator while Landingin, Malicdem and De Jesus acted as deputy administrators for the investment and financial division, area operations, and administrative services, respectively.

In their affidavit filed in the RTC, the four LWUA executives described Reyes' action as "a mere act of retaliation and desperation, done motu propio and with haste."

Reyes, in letter-directives dated March 10, terminated the appointment of the four officials based on the lapse of a 12-month period -- the period allegedly allowed for terms of office of "non-career executive eligible officials."

In seeking a temporary restraining order against Reyes' directive, the four executives claimed their superior "maliciously exceeded his authority."

They claimed that Reyes, despite being the head of LWUA, does not have dismissed authority over their positions.

Under Executive Order No. 286, the senior deputy administrator and deputy administrators shall be appointed by the LWUA Board of Trustees, upon the recommendation of the administrator.

They claimed there was no indication that the termination of their services had been approved beforehand by the board.