Calamba mayor denies he's facing graft raps

LAGUNA, Philippines – Calamba City Mayor Joaquin Chipeco Jr. denied yesterday a report attributed to him that he is facing graft complaint for allegedly placing P555 million of the city’s funds in a time deposit account in 2008, and the alleged P26.6 million scandal last year.

“ I have not received any graft complaint, but, just the same, I rest assure that when the proper time comes, I am prepared to face all issues raised against me, answer all questions regarding fiscal management by the City of Calamba,” Chipeco said in his letter.

Chipeco, however, said that the placement of about P555 million in city funds in three separate banks in short-term time deposits was authorized by the Sangguniang Panlungsod under SP Resolution No. 85 series of 2006. The resolution is to allow the local government to maximize earning from the funds.

Chipeco was reacting to reports that they prevented them from using the money to help residents during a typhoid outbreak in 2008.

He said the deposits were only temporary placements, with monthly terms and varying maturities, and could thus be withdrawn when needed. “There was never any instance that the city failed to pay its obligation on time, or fund project related particularly to the typhoid outbreak in 2008,” Chipeco also said in his letter.

He said the graft complainants – Carlito Llave, Celia Meneses, Marissa Gamutin, Editha Pua, Joselina Gravillas, and Rolando de los Santos were among the residents who actually received financial and medical assistance during the epidemic. He cited they provided emergency medical assistance worth about P25 million to more than 3,000 affected patients during the typhoid outbreak, causing the local government to declare a state of calamity.

Former city councilor Dr Severino Vergara and lawyer Edgardo Abinales with five or six persons have filed graft complaints for violating the Local Government Code (LGC) and a Commission on Audit (COA) ruled against Chipeco and his two ex-treasurers, Ofelia Oliva and Cesar Separa.

In their 18-page complaint filed with the Office of the Deputy Ombudsman for Luzon, they cited a COA report dated March 7, 2008 which noted the questionable time deposit of funds which it noted did not fall in the category of “idle funds.”