Samar mayor fined for violating conflict of interest rule

MANILA, Philippines - The Sandiganbayan has ordered a town mayor in Eastern Samar to pay a fine of P5,000 for failing to divest himself of his interest in a cable television business, thus violating the conflict of interest rule.

In a 19-page decision, the anti-graft court’s First Division said Taft Mayor Francisco Adalim violated Section 9 of Republic Act 6713 or the Code of Conduct and Ethical Standards for Public Officials and Employees.

RA 6713, according to the ruling, requires a public official or employee to “resign from his position in any private business enterprise within 30 days from his assumption of office and/or divest himself of his shareholdings or interest within 60 days from such assumption” to avoid conflict of interest.

The case against Adalim stemmed from a complaint filed by Roberto Lim, owner of Ledemil Cable TV Services, before the Office of the Ombudsman in November 2002.

Adalim and one Rolando Olog reportedly entered into an informal partnership agreement to operate a cable television business under the name Reliance CATV and Entertainment Services Co. sometime in 1992.

Under the agreement, Olog would share 20 percent of the capital, representing the services he rendered for the installation and facilitation of the project, while Adalim would shoulder the remaining 80 percent.

After securing a provisional permit from the National Telecommunications Commission in 1993, the cable TV business became operational, but in 1996, Olog abandoned it because Adalim allegedly failed to furnish him reports on expenses and collections.

Government lawyers led by Assistant Special Prosecutor III Janina Hidalgo were able to prove that Adalim failed to divest himself of his interest in Reliance before his election in August 1988 and before his re-election in 2001.

The Sandiganbayan ruled that there was conflict of interest between Adalim’s elective position and his interest in the private company.

As mayor, Adalim, the anti-graft court said, has the duty to approve the permits of and collect fees from businesses operating in his municipality.

The prosecution also showed evidence that although Reliance had been operating and doing business in Taft, it had paid no fees to the municipality.

The anti-graft court said Adalim should pay the fine and in case he could not afford to pay the amount, subsidiary imprisonment would apply.