Ex-water district head faces 200 cases over P24-M deal

MANILA, Philippines — A former general manager of La Union water district and a private consultant were charged by the Office of the Ombudsman with 200 criminal cases in connection with an alleged anomalous construction deal amounting P24.475 million entered in 1998.

Filed before the anti-graft court Sandiganbayan, the cases against Metro La Union Water District (MLUWD) former general manager Felipe Picazo and consultant Conrado Ganaden of Condor Construction Corp. include one count each of violation of Sections 3 (e) and 3 (g) of Republic Act 3019 or the Anti-Graft and Corrupt Practices Act and 198 counts of the complex crime of malversation of public funds through falsification of public documents under the Revised Penal Code.

Section 3(e) of Anti-Graft and Corrupt Practices Act prohibits public official from giving unwarranted benefit, advantage or preference to any party or from causing any party, including the government undue injury.

Section 3 (g), meanwhile, prohibits public official from entering into a contract or transaction disadvantageous to the government.

Based on the information of the cases, MLUWD during Picazo's term as general manager in December 1998, entered into a consultancy service contract amounting P24,475,300 with Ganaden's Condor Construction Corp.

The consultancy service deal was for the construction of the MLUWD facility. Under the contract, 12 percent of the total construction cost will be paid to Ganaden.

Graft investigation and prosecution officer Yasmin Soraya Masukat from the Office of the Deputy Ombudsman for Luzon said the contract was awarded to Condor Construction without conducting any public bidding and despite Ganaden's "lack of expertise and track record in the construction business."

Further, the ombudsman said the contract also exceeded the appropriated amount for the project which was only P15 million, thereby causing an additional cost of P9.475 million to the government.

Named as Picazo and Ganaden's co-accused in the graft cases were former MLUWD board members Zita de Guzman, Victoria San Jose and Rodolfo Daligues.

Meanwhile, the 198 malversation through falsification cases against Picazo and Ganaden arose from their alleged falsification of various liquidation documents such price quotations, sales invoices and purchase orders to make it appear that a total of P11.3 million was paid to five suppliers between January 1999 to September 2000 for the supposed delivery of materials still in connection with the P24-million MLUWD construction project.

The ombudsman said Picazo and Ganaden made it appear that a total of P7.9 million was paid by MLUWD to Centro Lumber and Hardware Corp.; P1.6 million to Philippine Topwood Industries and Trading Corp.; P797,228.46 to Columbia Wire and Cable Corp.; P684,945.37 to Kings Commercial Corp., and P304,290 to AC&R Engineering, "when in truth and in fact, [the suppliers] neither issued a quotation or cash invoice nor did [they] received purchase orders from MLUWD."

The ombudsman said Picaso and Ganaden, instead "take or misappropriated the amounts for their personal advantage and benefit."

The ombudsman set Picazo and Ganaden's bail bond at P39.66 million each, more than double the amount they allegedly pocketed from the supposed anomaly.

Meanwhile, the ombudsman set De Guzman, San Jose and Daligues' bail bond at P60,000 each.

The graft cases against all the respondents were raffled off to the Sandiganbayan Sixth Division while the malversation through falsification cases against Picazo and Ganaden went to the Seventh Division.