At Ombudsman-Visayas City Mayor, 2 others sued for technical malversation

CEBU, Philippines - Three residents of Baybay City in Leyte have filed at the Office of the Ombudsman-Visayas in Cebu City the other day a criminal complaint against incumbent Mayor Carmen Cari and two other city officials for technical malversation.

The complainants, Nicanor Baledio, Elita Datahan and Melchor Meredores, in their complaint-affidavit, accused Mayor Cari, City Accountant Evelyn Oppus and City Treasurer Paquita Austero of alleged “technical malversation” for their failure to open and maintain special accounts in the General Fund of the city’s four economic enterprises as required by law.

As proof of their allegations, the complainants attached the 2011 Annual Audit Report of the Commission on Audit (COA) to their complaint, which was received and examined by graft investigation and prosecution officer Pio Dargantes.

“We recommended that the city mayor should require the: (a) city treasurer to prepare separate reports for each economic enterprise and (b) city accountant designate to maintain special accounts in the general fund for each type of economic enterprise,” the COA report reads.

The four economic enterprises were: Baybay City food terminal, Baybay City bus terminal, new Baybay City slaughterhouse and Baybay medical diagnostic center.

Based on the consolidated statement of income and expenses for the year (ended Dec. 31, 2011), these enterprises generated an estimated income of P11,280,779.13. This amount however allegedly went directly to the city’s general fund, in violation of the law, the complainants alleged.

The complainants, through their counsel, said the “cash revenues these economic enterprises generated ... have been directly remitted to the general fund, and consequently, disbursed and applied to answer for the general obligations and expenditures of the city ...”

They insisted that the revenues from these enterprises, when put to the city’s general fund, “could not have been applied to answer for the salaries, wages, representation and transportation allowances of officials and employees of economic enterprises” and to the other expenses of the same.

According to COA, the objective for the maintenance of special accounts was “to determine whether the income generated by the public utilities or economic enterprises are sufficient to meet their respective operating costs.”

The affidavit of the complainants stated that during the exit conference, the city accountant-designate “concurred that no special accounts in the general fund were maintained for the operations of the four economic enterprises of the LGU.”

Mayor Cari and the other respondents have yet to answer the allegations, and efforts to contact their offices in Baybay City have failed.

Meanwhile, a supplemental complaint-affidavit was also filed at the Ombudsman by Vertillano Relevo III, Agustin Bacusmo and Oscar Balan—all of Baybay City, Leyte—charging Mayor Cari and Vice Mayor Michael Cari for anti-graft case for the alleged procurement of office supplies, drugs and medicines allegedly without undergoing public bidding, as required by Republic Act 9184 (Government Procurement Reform Act).

Relevo and others said the allegedly “illegal” procurement of supplies, amounted to P7,391,009.31 for the calendar year 2010. Their affidavit  was executed to supplement their complaint filed last October 30 and to include Vice Mayor Cari as additional respondent.

The mayor and her vice mayor-son have yet to air their side of the issue.  (FREEMAN)