INCUMBENT and former officials of Canlaon City in Negros Oriental are facing six years to nine years of imprisonment, including perpetual disqualification from holding public office, due to a P60-million loan in 2005, which its terms and conditions were grossly disadvantageous to the government, according to the Office of the Ombudsman.
In a report posted on its website Monday, the Ombudsman said convicted of violation of Section 3 (g) of the Anti-Graft and Corrupt Practices Act are then vice mayor and now mayor Jimmy Clerigo, City Treasurer Luisa Luza, incumbent Provincial Board members Diego Santiago, Jose Chubasco Cardenas, Aldin Avila and Mamerto Bermil, Jr., ex-Mayor Judith Cardenas (two counts), and SP ex-members Edgar Estampador, Roberto Bolo, Amado Delos Reyes, Pedro Montero and Wagner Bekim Cardenas.
During the trial, it was found that the respondents authorized and contracted a P60-million loan from the Development Bank of the Philippines (DBP) intended for livelihood projects of the city hall employees, the Ombudsman said.
Subsequently, the funds were re-loaned to the Canlaon City Government Employees Multi-Purpose Cooperative (CCGEMCO). As loan collateral, the accused gave DBP the unqualified authority and power to apply the loan guarantee against the special savings deposit of the city, including its share in the Internal Revenue Allotment (IRA), the post further said.
Effectively, “the situation was tantamount to assigning the full control of the city’s coffers to an entity that had nothing to do with the administration and management of the city,” the Ombudsman added.
According to the Ombudsman, the 19-page decision of the Sandiganbayan stated that the funds for priority projects and delivery of basic needs of the constituents of the city was “imminently jeopardized” when all the accused compromised the city’s deposit with DBP while the transfer to CCGEMCO amounted to a financial assistance extended by a local government unit to a non-governmental organization and has benefited only the CCGEMCO members, it said.
The anti-graft body did not subscribe to the contention of the accused that the loan was made in the course of their official duties.
It stated, “lest the defense forget, the accused are being tried for a violation of the Anti-Graft and Corrupt Practices Act. By the nature of the offense, the acts complained of are those committed by the respondents while in the performance of official duty. As made clear in its Statement of Policy, the purpose of the law (R.A. No. 3019) is to repress certain acts of public officers and private persons alike which constitute graft or corrupt practices or which may lead thereto,” it said.
It said that the court also stated that “conspiracy among the accused was clearly established” as “the city mayor and city treasurer’s contract of loan with the DBP was with the concurrence of the vice mayor, and members of the Sanggunian.
Motion for reconsideration
Clerigo, in a phone interview Monday night, told VoxPop Bacolod the judgement of Sandiganbayan came out on November 29 last year and they were given 15 days to file an answer.
He said the motion for reconsideration was filed within the period, adding that each of them posted a P30,000 bail for their provisional liberty.
Clerigo, who was then the vice mayor, said that the operations of the City Government was “not paralyzed” after the IRA and special savings were used as collateral for the loan, which was payable for 42 months.
Since the time the loan was released and paid, the employees were able to get their salaries, and the local government was able to operate, and projects were implemented, he said.
Clerigo said it was the requirement of DBP and they only followed the “system” so the loan, which is intended for the city’s livelihood projects, will be released.
He stressed that they didn’t pocket the money.
Right now, they are waiting for the resolution of their motion for reconsideration, as he remained optimistic it will be in their favor, Clerigo said.
He added that the judgement of conviction becomes final and executory if it comes from the Supreme Court. (MPE)