MANILA, Philippines - Marikina City Mayor Del de Guzman and 14 others were charged before the Office of the Ombudsman Friday for entering into a P22-million Christmas bazaar project that allegedly turned out to be disadvantageous to the city government.
The new case comes on the heels of the Office of the Ombudsman’s order last month, suspending De Guzman and two other city officials for six months without pay, for not acting on a complaint regarding the illegal construction of a guard house, a steel gate and a lane hump in one of the city’s subdivisions. The three officials are appealing the suspension.
In the latest case, the complainants – Marion Andres, who lost in last month’s vice mayoral race; Councilor Elmer Nepomuceno; Alvin Jimenez and Efren Angeles – asked the Ombudsman to place De Guzman and his co-accused under preventive suspension.
Aside from De Guzman, among those charged with violating Section 3 of Republic Act 3019, the anti-graft and corrupt practices law, were Vice Mayor Jose Fabian Cadiz; Councilors Ronnie Acuña, Frankie Ayuson, Joseph Banzon, Ariel Cuaresma, Mark Albert del Rosario, Xy-za Diazen, Ernesto Flores, Susana Magtubo, Wilfred Reyes, Domingo de la Paz, and Paul Daniel Belmonte; and Eduardo Francisco, president of the local Philippine Chamber of Commerce and Industry (PCCI).
Upon learning of the complaint, De Guzman ordered the filing of a lawsuit to collect P14 million from the PCCI, which managed the city’s annual Christmas night bazaar last year.
The PCCI-Marikina, led by Francisco and executive director Leonardo Clarino, entered into a memorandum of agreement with the city government last October to operate the bazaar for P22 million, to be paid in three installments: P5 million upon the signing of the contract, P6 million on Nov. 30, 2012, and the balance of P11 million on Dec. 15, 2012.
The PCCI reneged on its promise to pay the two other installments. It was only able to pay the first installment of P5 million on time last Oct. 8. The PCCI was able to pay an additional P2.2 million recently after some officials of PCCI came forward to help solve the problem.
Mass resignation
In a statement, all 13 members of PCCI-Marikina’s board of directors and officers announced that they have resigned en masse, prompted by their loss of confidence in Francisco and “his mishandling†of the bazaar.
They said they resigned because they do not agree with the “confrontational stand†taken by Franciso and Carino on how to settle their contractual obligation to the city government.
They said the board chose a cooperative stand to work out solutions and to continuously communicate with the city government.
No bidding
Andres and the other complainants claimed De Guzman, the other city officials and Francisco conspired with one another to enter into a contract for the bazaar without the required bidding.
They alleged that De Guzman wrote the city council on Oct. 9, 2012 asking for the urgent passage of a resolution authorizing him to enter into an agreement with the PCCI for the night bazaar project. Francisco signed the document on Nov. 16, 2012 in the presence of De Guzman, Manuel Carlos and a certain Roger Py. Under the memorandum of agreement, the PCCI would operate the night bazaar at the city hall’s central parking area from Oct. 30, 2012 to Jan. 15, 2013.
The PCCI would lease out 543 stall spaces to investors with another 100 stalls reserved for Marikina residents on a first-come, first-serve basis.
The city government provided tables and chairs, sanitation, security and technical support while the additional power supply would be shouldered by the PCCI-Marikina, deductible from the project’s contract price.
Deferred charges
De Guzman said they deferred the filing of charges against PCCI-Marikina officials after they “promised us that they will honor their obligation if we can give them more time to settle their internal problem and for them to raise the amount.â€
He added that those responsible, specifically Francisco and Clarino will be held accountable for making a travesty of the public-private partnership intended by the project.
De Guzman claimed that they demanded payment from the PCCI through letters dated Dec. 11, 2012, Jan. 9 and Jan. 24.
“Personally, I am saddened by what happened because PCCI Marikina has been a trusted and reliable partner of the city and our administration in many trade and tourism projects to promote the city. As our partners in development, I did not want the shortcomings of a few to taint the image of the entire institution,†he said.
The mayor said “it is normal for people to give excuses and pass on the blame to escape accountability. We will not allow that to happen here in Marikina. They have been given enough concessions as it is.â€
Previous bazaar operators were required to pay the whole amount upon signing of the agreement. Being a trusted partner, PCCI-Marikina was allowed to pay the contract price in tranches, De Guzman said.