Ex-Biliran town mayor, accountant convicted for graft

MANILA, Philippines -  The Sandiganbayan has sentenced a former mayor and former accountant of Caibiran, Biliran to a maximum of 10 years in jail, according to the Office of the Ombudsman.

In a 23-page decision, the Sandiganbayan’s First Division also slapped former Caibiran mayor Melchor Maderazo and accountant Dionesio Veruen Jr. with the accessory penalty of perpetual disqualification from public office. 

The anti-graft court ordered Maderazo and Veruen “to indemnify, jointly and severally” the municipality of Caibiran with P160,000 representing the losses that it incurred with the “non-delivery” of 400 tapping saddles or steep pipe connectors in 1998 “with legal interest.” 

Records show that on Jan. 28, 1998, the Caibiran municipal council passed a resolution authorizing Maderazo to enter into a negotiated contract with Artemio Vermug, proprietor of Vermug Welding Shop, for the fabrication of 400 tapping saddles worth P160,000 for the town’s water system. 

However, it was found that the tapping saddles were not needed and despite non-compliance with the requirements of the negotiated contract and non-delivery of the items, P160,000 was released.

During the trial, Vermug even testified against Maderazo, saying the former mayor made him sign the job contract and endorse a check for P160,000, although he did not do any actual work and the deal did not push through.

Vermug said he never received any cent from the proceeds of the contract because after he had endorsed the Land Bank check, he returned it to Maderazo upon the latter’s request only to discover later that it was encashed by municipal treasurer Domingo Vidal in Naval, Biliran. Vidal corroborated Vermug’s testimony.

The Sandiganbayan said Maderazo could not have succeeded with the anomaly without the cooperation and participation of Veruen because they both signed the disbursement voucher, the Land Bank check, and the false inspection report that was submitted as liquidation for the “ghost” purchase and delivery of 400 tapping saddles.