Ex-PSALM execs get 10 years for graft

MANILA, Philippines — The Sandiganbayan has sentenced four former officials of state firm Power Sector Assets and Liabilities Management Corp. (PSALM) to up to 10 years in prison for awarding a P35-million contract to an unqualified bidder for the disposal of waste oil at the Sucat Thermal Power Plant in Parañaque City in 2012.

In a 58-page decision promulgated on May 31 but obtained by reporters only yesterday, the anti-graft court’s Third Division found former PSALM department managers Rico Valdellon and Lorenzo Jacinto II, division manager Don Thed Ramirez and corporate executive officer Renato Vehemente guilty of violating Republic Act 3019 or the Anti-Graft and Corrupt Practices Act.

The law prohibits public officials from giving unwarranted benefit, advantage or preference to a private party, or from causing any party, including the government, undue injury.

Aside from the prison term, the court perpetually disqualified the former PSALM officials from holding public office.

The complaint against another defendant, former division manager Jacinto Ilagan, was ordered dismissed due to his death in 2017.

Filed by the Office of the Ombudsman in 2015, the case stemmed from the awarding of a P35.008-million deal to the joint venture of Genetron International Marketing, Atomillion Corp. and Safeco Environmental Services Inc. for the sale and disposal of waste oil at the Sucat power plant.

The ombudsman said Valdellon and Jacinto, then chairman and vice chairman, respectively, of PSALM bids and awards committee (BAC), in conspiracy with BAC members Ramirez, Vehemente and Ilagan, accepted the joint venture’s amended Environmental Compliance Certificate (ECC), which was belatedly submitted during the post qualification stage.

In convicting the former PSALM officials, the Third Division agreed with the prosecution that the BAC should not have accepted the amended ECC of the joint venture as the Invitation to Bid stated that the ECC should be submitted during the opening of bids and should be considered during the post bid evaluation.

The court noted that the amended ECC was issued by the Department of Environment and Natural Resources on Nov. 21, 2011.

“In sum, the BAC’s acceptance of the amended ECC allowed it to pass the criteria for post qualification, causing prejudice to the other bidders,” the court said.

The Sandiganbayan said the former PSALM officials awarded the contract to the joint venture despite the Technical Working Group’s recommendation for its disqualification due to lack of track record to treat or process waste oil in large volume such as in the case of the Sucat power plant.