2 lawmakers get 10 years for graft

MANILA, Philippines – The Sandiganbayan yesterday found Oriental Mindoro Reps. Rodolfo Valencia and Alfonso Umali Jr. guilty of graft for misusing public funds amounting to P2.5 million during their term at the provincial capitol in 1993.

The fourth division of the anti-graft court, chaired by Associate Justice Gregory Ong, sentenced the two incumbent congressmen to imprisonment of up to 10 years and perpetual disqualification from holding public office.

In a 29-page decision penned by Associate Justice Jose Hernandez and promulgated during the 8:30 a.m. hearing, the anti-graft court said Valencia and Umali, in conspiracy with three other former provincial officials, were found beyond reasonable doubt to have violated Sections 3 (e) and 3 (g) of Republic Act 3019 (Anti-Graft and Corrupt Practices Act) when they forged a loan contract with an engineer that served a private purpose.

Engr. Alfredo Atienza, recipient of the loan grant, was also convicted of graft by the Sandiganbayan and sentenced to suffer the same penalty imposed on the two lawmakers along with three other accused, then Vice Gov. Pedrito Reyes and provincial Board members Jose Enriquez and Jose Leynes.

Reyes said he was not presiding when the resolution on the P2.5 million loan was granted and approved by the Sangguniang Panlalawigan.

The court ruled that the loan granted by Valencia and Umali, then governor and provincial administrator, to Atienza for the “repair, operations, and maintenance” of transport vessel m/v Ace, which was to ply the route of Calapan, Oriental Mindoro to Batangas and vice versa, was “grossly and manifestly disadvantageous to the government.”

“The Credit Agreement between the provincial government of Oriental Mindoro and accused Atienza is undoubtedly not for a public purpose.

“The contract speaks for itself. The stated purpose for the use of the amount was solely to finance the cost of ‘repair, operation and maintenance’ of the latter’s vessel; this purpose cannot be classified as one for public purpose,” said the anti-graft court.

The fourth division further explained: “To apply government funds for the use of a private individual is a brazen violation of a prohibition mandated by law, that public funds shall not be applied to private purposes.”

The accused raised good faith in granting the loan for their defense, saying they only committed “an error or mistake on a difficult question of law.”

This argument, however, was junked by the court, which ruled that the use of public funds for a private purpose in the case was “unmistakable.”

The court said the loan agreement was simply illegal and that there was conspiracy among the accused to try to conceal it.

The two congressmen and their lawyers, however, were not present during the promulgation. Only Atienza and Leynes attended the hearing.

Court officials said the division is set to issue bench warrants of arrest against the convicted officials should they fail to appeal the decision and deliver an additional P30,000 each by 4:30 p.m. today to complete the P60,000 bond.

Sandiganbayan Sheriff Ed Urieta said the court division has yet to issue arrest warrants against the convicted officials.

Asked for a reaction, Umali lamented the decision and said he would post bail and file a motion for reconsideration before the anti-graft court. He maintained his innocence.

“I just followed a legal order from the Sanggunian as provincial administrator, which is ministerial to me, and signed a request for obligation of allotment,” he said in a text message to reporters.

Valencia, on the other hand, could not be contacted for comment.

Also charged along with the Umali, Valencia, and the other accused were then board members Bayani Anastacio and Romualdo Bawasanta, who both remain at large, and Nelson Gabutero, Remedios Marasigan, Bayani Anastacio, and Jose Genilo Jr.

The case against Gabutero and Marasigan was dismissed at the prosecution’s prayer. The case against Anastacio and Genilo was also dismissed after they died.

The provincial board of Oriental Mindoro passed in December 1993 a resolution authorizing Valencia, then governor, to enter into a credit agreement extending a loan of P2.5 million to Atienza for the operation of the vessel m/v Ace.

In January 1994, the provincial government entered into a loan agreement with the Land Bank of the Philippines, which agreed to loan the amount and issued a check to the provincial government.

Provincial treasurer Manuel Leycano reminded the governor that the credit agreement needed the concurrence of the provincial board, but Valencia issued a memorandum directing Leycano to release the amount as a loan.

Umali certified the expense as necessary and lawful in the disbursement voucher. The voucher indicated that Atienza received the check.

Valencia ordered the release of P2.5 million to Atienza by “invoking the existence of state of calamity even if there was no presidential declaration to that effect as required by law” and also by “referring to transportation problem, shortage of food and fuel and existence of collapsed roads in trying to justify the immediacy of his directive.”

House Speaker Prospero Nograles said Valencia and Umali could still file an appeal.

“The House cannot act on the decision of the Sandiganbayan as yet because we have to wait for the finality of that decision,” he said on local television when asked whether the two would be expelled from the body.

He said the men had 15 days to appeal. — Edu Punay