Ex-Biliran mayor faces graft raps over medicine scam

MANILA, Philippines - The Office of the Ombudsman yesterday ordered the filing of graft charges against a former town mayor in Biliran for allegedly procuring medicine for its rural health unit five years ago without public bidding. 

Graft probers said they found probable cause to indict former Caibiran mayor Eulalio Maderazo.

Former municipal treasurer Loreto Serdeña Jr. and accounting department officer-in-charge Rodolfo Baguna were also named respondents for allegedly conspiring with Maderazo in giving unwarranted benefits, advantage and preference to the supplier, Andrea Medi Center. 

The ombudsman said it received complaints of overpricing after the municipal government purchased medicine worth P283,335.15.

Investigation showed the procurement did not pass the bids and awards committee and the payment had no supporting documents, such as the abstract of bids and minutes of the BAC meeting.

Ombudsman Conchita Carpio-Morales said the price of the medicine was beyond the P50,000 threshold allowed for a fourth class municipality.

“The supplier, Andrea Medi Center, was awarded the contract without the benefit of a fair system in determining the best possible price for the government. The supplier was able to profit from the transaction without showing proof that its prices were the most beneficial to the government,” Morales stated in her ruling.