Ex-Iloilo mayor cleared of P1-M ghost project case

MANILA, Philippines — The anti-graft court Sandiganbayan has cleared former Igbaras, Iloilo mayor Jaime Esmeralda of a criminal case over the alleged unimplemented road rehabilitation project in 2004.

In its 23-page decision promulgated on October 6, the court's Third Division acquitted Esmeralda and his four co-accused of violation of Section 3 (e) of Republic Act 3019 or the Anti-Graft and Corrupt Practices Act.

“From the foregoing, it can be inferred that the accused public officers did not cause any undue injury to any party including the government or gave any private party unwarranted benefits, advantage or preference in the discharge of [their] functions,” the Third Division's ruling read.

“Neither did the accused private individuals unduly benefitted from the project,” it added.

The court said the prosecution also failed to support with convincing evidence its allegation of conspiracy among the accused.

The decision was penned by Associate Justice Bernelito Fernandez with the concurrence of division chairman and Sandiganbayan Presiding Justice Amparo Cabotaje-Tang and Associate Justice Sarah Jane Fernandez.

Acquitted with Esmeralda were former municipal treasurer Cynthia Cabañero and former secretary to the mayor Pio Elumba, as well as private respondents Edwin Romualdo of E.S. Romualdo Construction and Arthur Go of Supply and South Pacific Builders Center Inc.

Filed by the Office of the Ombudsman in 2008, the graft case stemmed from the respondents' alleged failure to carry out the rehabilitation of Kinagdan-Mulangan Road and Cale-Indaluyon Road despite the municipal government's receipt of P1-million financial assistance from the Office of Sen. Franklin Drilon who hails from Iloilo province.

The ombudsman said there was “no showing of rehabilitation” of either of the two roads amid a Program of Work which specifically required the grading of the road surfaces, furnishing, placing and compacting of the aggregate base and laying out of culverts which would allow water to flow under the road.

The ombudsman said the accused public officials gave unwarranted benefits to Romualdo and Go, for payments made despite the projects' non-implementation.

In its ruling, however, the Third Division pointed out that as established during the trial, the two projects shall be implemented through “contract by administration,” in which, the concerned agency, in this case, the municipal government of Igbaras shall be the one to carry out the projects “through its own personnel.”

The Third Division sided with the Romualdo and Go's defense that under their respective contracts with the municipal government, their only obligation was to supply the construction materials and heavy equipment, respectively, and not the actual implementation of the projects.

The court gave weight on a Commission on Audit Technical Inspection Report, which states that the construction materials and equipment for the projects were timely delivered. Furthermore, the court said records show that the supply contracts were awarded to Romualdo and Go through competitive public biddings, thus their receipt of payments, amounting P581,986 and P314,295 respectively, upon the delivery of the required items, was justified.

The court also agreed with Esmeralda's defense that “the responsibility of implementing the subject infrastructure projects falls on the municipal engineer” in accordance with the Program of Work.

The court noted that even the prosecution's own witness, then municipal engineer Anastacio Escobido, admitted during cross-examination that the responsibility of implementing the two infrastructure projects lies with him and his staff.

Following their acquittal, the court ordered the lifting of the hold departure order issued against all the accused. The court also ordered the release of the bail bond that they posted for their provisional liberty.