A REPORT in 2004 by Cebu Daily News Print led to an investigation and indictment of then vice governor John Gregory Osmeña –- son of the late senator and congressman John Henry -- and several others, including former provincial board member Victor Maambong, provincial accountant Marieto Ypil, John-john’s chief of staff Willie Mulla, and four private defendants who were the alleged incorporators.
Two years earlier, in 2002, Cebu Province had released in three tranches a total of P5 million to Perdido Lex Foundatiion Inc. Perdido Lex turned out to be a ghost foundation, with the incorporators, except one (John-John’s housekeeper), non-existent.
The foundation, accredited by the Provincial Board, had entered a memorandum agreement with Cebu Province, which was the basis for the grant supposedly to fund a computer education program for Cebu youths.
Before anything, the name Perdido Lex
It means “vanished or lost law,” a Latin term familiar to lawyers and seminarians.
There’s some nastiness or perverse humor in the naming. I wrote then that the person who christened it must have an odd sense of humor. (Seares: NGO scam: “un caso perdido,” VoxPop March 4, 2023)
VoxPop’s March 5, 2018 editorial revisiting the controversy called the name Perdido Lex “impish.” The dude who named the foundation must know the money would disappear into private pockets and culprits would walk because of a legal system filled with loopholes for lawyers and judges to exploit.
John-john, Pablo, and Gwen cleared
“Insufficient evidence” against John-john, the anti-graft court said in its March 12, 2013 ruling. Osmeña’s signature on disbursement voucher was not enough, the Sandiganbayan said, citing this point:
“If then Governor Pablo Garcia was exonerated from any liability for signing the MOA, why should accused Osmeña be now indicted merely because of his official act in signing the disbursement vouchers involved in pursuance to the said MOA?”
Earlier, the Ombudsman had let off then Guv Pabling (1925-2021) and his daughter Gwen, his confidential assistant at the time. The governor’s duty was “merely ministerial,” the Ombudsman ruled. Gwen was one of the House deputy speakers when the ruling was issued.
Where the blame possibly lay
The Provincial Board approved in October 2002 the accreditation of Perdido Lex as an NGO or non-government organization, qualifying it as partner in Capitol projects, for which it could receive public funds.
Less than two months later, P2.1 million was released, with the rest in two more tranches within five weeks of the first payment.
Then PB Member Maambong, as chairman of the committee on cooperatives and NGO accreditation, reported to the body that Perdido Lex had substantially complied with the law’s requirements.
Approval of the accreditation was later criticized as “hasty.” Whatever, the PB flunked in its job of screening Perdido Lex as worthy recipient of public funds. Accreditation was followed by authorization for the governor to enter a MOA with Perdido Lex.
The offices where the foundation’s claims – the most basic being whether it existed in fact -- could’ve been exposed and the scam averted must have also failed. The governor’s office and the accounting office apparently relied only on the PB action and the theft was accomplished.
The Ombudsman had found accountant Marieto Ypil liable for neglect of duty because he failed to thoroughly review the documents that supported the fund vouchers.
John-john’s accusation; Gwen’s dare
Before the Ombudsman, John-john’s chief of staff Willie Mulla alleged the Perdido Lex scam was a “scheme to finance (Gwendolyn Garcia’s) candidacy in 2004.”
Mulla’s boss John-john alleged separately that Gwen, then the governor’s consultant, in effect induced him to have Perdido Lex undertake the project, using funds chargeable to the vice governor’s office.
Gwen denied the accusation, challenging John-john that they both submit to a lie detector test. John-john agreed but with four conditions, which must have shot the plan down, as no report of its actual holding could be found in news archives.
Politics lit up dispute
The hand of politics was inevitably tagged in the controversy: 2004 was election year. John-john, the vice governor then in place, inevitably would run for governor. And he did, competing against Gwen and Rep. Celestino Martinez Jr.
And John-john lost, a poor third, to Gwen Garcia who beat Junnie Martinez Jr. by 398,323 votes. Gwen defeated Junnie Martinez with a decent margin but demolished John-john who got only 20.48%, against Gwen’s 39.64% and Junnie’s 38.90%, of the vote.
Gwen Garcia also earned the record of being the first woman elected to the office of Cebu governor.
Identity of “perp” still unsettled
The Sandiganbayan in its ruling that cleared John-john said he was “framed up” but didn’t identify the architect or engineer who planned and made the “framing.” Not that it was the crime and the subject of litigation before the Sandiganbayan. But it was a question the public would’ve wanted resolved.
Yet the issue gave context to an incident would be always part of the Cebu Province history. For the conflict and the color -- as well as the lesson on protecting the local government’s assets by the leaders entrusted to govern.