This time for overpriced computers: Radaza, 19 others face graft charges

The Office of the Ombudsman Visayas has upgraded its investigation on the alleged anomalous procurement of computers in Lapu-Lapu City into a formal criminal case for graft and corruption against Mayor Arturo Radaza and 19 other city officials including the manager of the store that supplied the overpriced items.

On the recommendation of associate graft investigator Elmer Gutierrez, Radaza, city administrator Teodulo Ybanez, city attorney Vincent Joseph Lim, who also chairs the Bids and Awards Committee, assistant city engineer Fernando Tagaan, Jr., as vice chairman of BAC, members Michael Dignos, Victoria Andoy and Elena Pacaldo are formally charged for violation of Section 3(e) of the Republic Act 3019 otherwise known as the Anti-Graft and Corrupt Practices Act.

Also included in the criminal case are Engr. Rogelio Veloso, who heads the Technical Working Group, his members Dr. Cipriano Flores, Engr. Sharon Baguio, Buenaventura Igot, Jericho Mercado and Engr. Maribeth Sorono, Marita Guiao, Cleofe Solis, Leandro Dante, Ernesto Imbong, Rogaciano Tampus, city schools division superintendent Serena Uy and computer supplier Jennet Valencia.

Except for Radaza and Valencia, the rest of the respondents are also facing administrative case for dishonesty.

Gutierrez’ recommendation for the filing of the criminal and administrative charges against the respondents was approved by Ombudsman director Virginia Palanca Santiago on December 4.

Radaza was not included in the administrative case because of the Aguinaldo doctrine, which considers administrative infractions committed by an elected official in his previous term moot and academic.

Valencia on the other hand is a private person and the anti-graft office has no administrative jurisdiction over her.

The case stemmed from a complaint earlier filed by businessman Efrain Pelaez of the Coralpoint Educational Foundation, Incorporated alleging that the Lapu-Lapu City Government made an anomalous purchase of 470 units of computers that were requested by the Department of Education intended for the national and public high schools in the city.

Pelaez alleged that aside from the bloated price, the seller is not also qualified to supply.

Radaza approved the purchase request of DepEd on April 8, 2005 with an estimated cost of almost P50,000 per unit or a total budget of P23,500,000.

The purchase request specified that the computers to be bought should be; 533Mhz Intel Processor; 512kb cache and with Pentium 4 motherboard.

Three suppliers joined the bidding process, which include ATX Enterprises, Global Chips Technologies and Kein Enterprises, which won the contract.

However, what was delivered by the winning bidder was Intel Celeron Processor 2.26Ghz; 256Kb L2 cache and Pentium 4-AsRock P4i45GV, which is an inferior model compared to what was specified in the purchase order.

The Commission on Audit in its audit observation memorandum said that based on their inspection, the computers delivered by the supplier did not meet with the specifications in the purchase order.

COA also found out that 30 units of the 470 purchased were given to Caubian and Pangan-an High Schools despite the fact that there is no electricity in the area.

Another 29 units were found to be defective and not functioning upon inspection. The anti-graft office was able to confirm the COA audit observation.

According to the Ombudsman, the delivery of computers to the island despite the non-availability of power supply suffices a wastage of government funds. The Ombudsman however dismissed the allegations that the supplier is not qualified because it has complied with all the documentary requirements.

But, the anti-graft body said there is sufficient evidence to prove that the transaction was grossly disadvantageous to the government being clearly overpriced.

The ombudsman found out that the price of P49,950 per unit is very much higher even if the specifications in the purchase order was followed.

According to the Ombudsman, the amount is too much as compared to the prevailing market price.

A price quotation obtained by the anti-graft office from at least two legitimate computer dealers in Cebu shows that the price is lesser by as much as 50 percent.

One seller has priced the same unit at only P19,500 while another dealer sells the same for P18,900.—(/NLQ)