Ombudsman files graft, malversation cases vs Padaca

Manila, Philippines - The Office of the Ombudsman has filed before the Sandiganbayan graft and malversation cases against former Isabela governor Grace Padaca.

Also charged were provincial legal officer Johnas Lamonera and former Roxas vice mayor Servando Soriano, also an officer of a private foundation which was granted a P25-million rice program contract without public bidding in 2006.

Dionisio Pine, manager of the Economic Development for Western Isabela and Northern Luzon Foundation, Inc. (EDWINLFI), was also named respondent.

The charges against Padaca and her fellow respondents stemmed from a complaint filed by former Isabela representative Santiago Respicio in 2007.

The former governor was accused of giving unwarranted benefits to EDWINLFI because the grant of the P25-million Priority Hybrid Rice Program to the same was only based on a memorandum of agreement (MOA) ratified by the Sangguniang Panlalawigan.

After investigation, the Office of the Ombudsman said the public bidding process should have been observed instead of direct contracting.

“Without due regard to the rules on government procurement and notwithstanding that the Memorandum of Agreement was yet to be ratified by the Sangguniang Panlalawigan, Governor Padaca arbitrarily carried on to engage the services of EDWINLFI to manage and administer Isabela’s provincial rice program, the implementation of which ensued into a significantly irregular transaction,” the anti-graft agency said.

The Office of the Ombudsman, after a fact-finding investigation, recommended the filing of charges against Padaca in March 2011.

The anti-graft body also ordered the filing of graft charges against a former lawmaker of Cebu who allegedly pocketed P10 million in public funds eight years ago.

Former congresswoman Clavel Asas Martinez will also face a malversation of public funds case before the Sandiganbayan along with former Bogo, Cebu mayor Celestino Martinez III; former municipal treasurer Rhett Minguez; municipal accountant Cresencio Verdida; and bookkeeper Rhodariza Kilantang.

Girl Scouts of the Philippines Cebu Council cashier Julieta Quino and former GSP treasurer Maria Cielo Martinez were likewise named respondents to both cases.

The case against them stemmed from how Martinez, who was GSP Cebu president from 1995 to 2003, allegedly pocketed P10 million from her Priority Development Assistance Fund (PDAF) in 2003.

The money, intended for donation to the GSP, ended up being deposited in her Bank of the Philippine Islands (BPI) account.

Graft probers were able to establish that a total of P11.5 million of the former lawmaker’s PDAF was released through a Land Bank of the Philippines (LBP) check to the GSP treasurer on Sept. 17, 2003.

Respondent Quino later allegedly applied for a manager’s check in the same amount at LBP Bogo, Cebu branch where she asked that the payee be the GSP or respondent Martinez.

On Oct. 20, 2003, the amount of P11.5 million was deposited at the BPI account of GSP, but a week later the amount was withdrawn by Cielo and deposited to the BPI account of Martinez.

However, graft investigators learned that out of the entire amount, P1.5 million for the party-list Bayan Muna was erroneously released as part of Martinez’s PDAF.

Records show that the municipality remitted the P1.5 million to the proper government coffers, which means that only P10 million remain unaccounted for.

The Office of the Ombudsman said the transaction was disallowed by the Commission on Audit (COA).

“Although respondent raised the defense that the amount of P10 million was returned to government coffers in 2005, or two years later, it still does not discount the fact that public funds were embezzled and appropriated for personal use.”