Ombudsman clears Lim over slaughterhouse takeover

Manila, Philippines - The Office of the Ombudsman has ordered the dismissal of criminal and administrative cases filed against Manila Mayor Alfredo Lim, five city hall officials and 25 police officers in connection with the takeover of the Vitas slaughterhouse in 2008.

In a resolution, graft investigation and Prosecution Officer I Michelle Villabesa said Lim acted in good faith when he rescinded the contract of lease and took control of the slaughterhouse.

The ombudsman also cleared chief of staff and media bureau chief Ric de Guzman, city administrator Jesus Mari Marzan, city legal officer Renato de la Cruz, the late Francisco Co, then chief of the veterinary inspection board, department of public service head and retired colonel Carlos Baltazar.

The ombudsman also ordered the dismissal of the case against Manila Police District deputy director Senior Superintendent Alex Gutierrez, Senior Inspectors Magno Magno, Olivia Sagaysay, Rodolfo Fajardo and Mar Reyes, who is now concurrent chief of the general assignment section and the Manila City Hall Assistance for Police Action, SPO4 Adelaido Araneta, PO3 Raul Dagang, PO2s Ramon Guina and Ramon Juan then belonging to the district special project unit of the Manila City Hall; Station 1 commander Superintendent Rolando Miranda and his men, namely PO1 Gilbeys Navoa and PO3 Joel Menpin and others identified only as PO1 Francisco, PO1 Arroyo, Jr. and PO1 Balagtas and PO3 Sunga.

According to the ruling, Lim was only exercising the rights and remedies available to the city, pursuant to the contract of lease and compromise agreement for the protection of the City of Manila from loss of income and revenues against delinquent debtors and taxpayers such as Dealco Farms Inc.

Dealco, which is owned by the family of Manila Councilor Dennis Alcoreza, operated the Vitas slaughterhouse from 2001 to 2008 through a contract entered into with then mayor Lito Atienza in 1999.

But the city government said Dealco has defrauded the city of at least P1.2 billion in monthly revenues during its years of operation, aside from not paying rentals amounting to P2.9 million, real estate taxes worth almost P5 million and P46 million representing the city’s one percent share from its gross income.

In clearing the respondents of the administrative case, the ombudsman cited lack of substantial evidence while the reason for the dismissal of the criminal case was the absence of probable cause.

Before taking over the operation of the city’s lone slaughterhouse, local government authorities gave Dealco an ultimatum for the submission of its financial statements from 2002 to 2006.

The city government rescinded Dealco’s contract when it failed to present its financial statements, saying it (Dealco) “committed acts warranting the takeover thereof extra-judicially.”

In both decisions for the criminal and administrative cases, the ombudsman said “Dealco clearly committed a substantial breach of its obligations under the compromise agreement.”

“Dealco agrees to voluntarily surrender the possession of Vitas slaughterhouse to the City of Manila upon its failure to comply with any of the terms and conditions thereof and allow the city to enter the premises and take over the operation and management of the slaughterhouse upon failure of Dealco to pay the City of Manila any of the amount stated therein,” the decision stated.