Ex-Cainta mayor faces graft raps

Ombudsman Simeon Marcelo has approved the filing of graft and malversation charges with the Sandiganbayan against a former mayor of Cainta, Rizal and 16 others in connection with two questionable municipal contracts allegedly awarded without public bidding and for the purchase of allegedly overpriced equipment that was reportedly never used.

The alleged irregularities involved contracts awarded to JC Benitez Architects and Technical Management Co. for a P3.7-million consultancy project, and to Rock Ridge Aggregates for a P7.5-million asphalt batching plant; and the purchase of a P1.4-million Context scanner.

In a statement, Evelyn Baliton, spokeswoman of the Office of the Ombudsman, said their investigation showed that former Cainta mayor Nicanor Felix, accountant Ophelia de Guzman, treasurer Herminia Cruz and businessman Cesar Goco used a "falsified" special power of attorney (SPA).

A certain Juanito Benitez "purportedly executed" an SPA for Goco, authorizing the businessman to collect P3.7 million from the municipal government.

But the Ombudsman discovered that the SPA was issued "two months" after Benitez’s death.

Worse, the Ombudsman said the fund release was "unauthorized" since the municipal government had no contract for consultancy purposes, and that the P3.7 million was "excessive by P700,000."

The second alleged anomaly involved the questionable grant of the asphalt batching plant to Rock Ridge Aggregates which the Ombudsman said was approved by the members of the Cainta municipal council "without a prior public bidding."

The company initially demanded P10.5 million for the plant’s operation, but negotiations reduced the amount to P7.5 million, payable through dacion en pago or "in the form of assets," not cash.

"It was shown during the investigation that the corporation overvalued some of its assets used to settle its obligation," Baliton said.

She said this meant that the Cainta municipal government was at the losing end since the company’s assets were below what the local government could recover.

The Ombudsman held Felix, Vice Mayor Julio Narag and Sangguniang Bayan members Edgar Cruz, Zoilo Tolentino Jr., Jose Hernandez Jr., Telesforo Francisco, Rosauro Gongora, Reynaldo Matias, Arturo Sicat and Richard Zulueta accountable for the alleged irregularity.

In the third case, Baliton said the municipal government bought a P1.4-million scanner which was allegedly overpriced by P502,700.

She said the town’s bids and awards committee awarded the contract to one Joriel Trading which used a "falsified" business certificate.

The Ombudsman held De Guzman, Cruz, budget officer Privada Gonzales, general services officer Marciano Doroteo and Ariel Bautista of Joriel Trading liable for malversation through falsification of documents.