MWSS head faces graft raps over 37 illegal consultants

MANILA, Philippines – The Office of the Ombudsman has ordered the filing of graft charges against Metropolitan Waterworks and Sewerage System acting chairman and administrator Gerardo Esquivel and 22 other MWSS officials over the allegedly anomalous hiring of 37 consultants, which resulted in unlawful payment of P8.4 million.

In a 27-page resolution signed recently by Ombudsman Conchita Carpio Morales, Esquivel and the other respondents will be charged before the Sandiganbayan for violating Republic Act 3019, the Anti-Graft and Corrupt Practices Act.

Aside from Esquivel, also facing graft raps are former MWSS administrator Diosdado Jose Allado, incumbent senior deputy administrators Nathaniel Santos and Macra Cruz, deputy administrator Zoilo Andin Jr., deputy administrator for engineering and operations Leonor Cleofas, corporate finance services chiefs Virgilio Matel and Jocelyn Toledo, and department managers Estrelito Polloso and Darlina Uy.

The other respondents are MWSS board members Ramon Alikpala, Oscar Garcia, Ferdinand Mahusay, Aurora Arnaez, Virgilio Angelo, Santiago Gabionza, Jr., Albert Balingit, Raoul Creencia, Ma. Cecilia Soriano, Benjamin Yambao, Emmanuel Caparas, Hermogenes Fernando and Jose Ramon Villarin.

“Despite the irregularity of the consultancy contracts, the respondents signed the board resolution, certified the payment to the consultants, approved the same for payment and signed the corresponding checks,” the resolution read.

“All their actions, when taken as a whole, contributed to the concerted scheme of giving unwarranted benefits, advantage and preference to the consultants who should not have been engaged in the first place,” it added.

Ombudsman prosecutors said the MWSS officials conspired in hiring the consultants from 2010 to 2012, with services ranging from public relations, communications, finance, security, strategic management, legal, website development and information system, to property management and watershed forestry.

The consultants were paid a total of P8,393,240.

Morales said the hiring of the consultants was in violation of Section 7 of Executive Order 366 issued in 2004, which prohibits the employment of additional personnel, be it on a permanent, temporary, contractual or casual basis, in all government agencies whose rationalization plan has not yet been approved.

The MWSS consultants were hired despite the absence of a rationalization plan, Morales said.

The ombudsman said the respondents violated Republic Act 9184, the Government Procurement Reform Act, since the hiring of the consultants was done without public bidding.

The Office of the Ombudsman said there was no justification for the respondents to resort to negotiated procurement “since the work of the consultants was not highly technical, confidential or policy determining where trust and confidence were the primary reason for the hiring.”