Degamo saved by 2013 election
Ombudsman Conchita Carpio-Morales has ordered the Dismissal from the Service of Negros Oriental Gov. Roel Ragay Degamo, Provincial Treasurer Danilo Cual Mendez, and Provincial Accountant Teodorico Guevarra Reyes for Grave Misconduct in connection with the disbursement of calamity funds.
In a nine-page Joint Resolution dated March 16, 2016, the Ombudsman also ordered imposition of accessory penalties, namely the cancellation of eligibility, forfeiture of retirement benefits, and perpetual disqualification from re-employment in government service of the three provincial officials.
The case stemmed from the complaint filed by a certain June Vincent Manuel Gaudan of barangay Taclobo, over the disbursement by Governor Degamo, Mendez, and Reyes of calamity funds released by the Department of Budget and Management to the Province of Negros Oriental after Typhoon Sendong damaged parts of Negros Oriental in 2011, followed by the magnitude 6.9 earthquake in February 2012.
Records show that the Province released to contractors Php 143,268,441.59 of the Php 480,775.000.00 calamity fund, even though the DBM revoked the Special Allotment Release Order with a Negative SARO.
Budget Undersecretary Mario Relampagos withdrew the SARO on June 19, 2012, saying the Province had not yet complied with existing guidelines on releases for infrastructure projects amounting to P10 million and more.
DBM-7 Regional Director Carmela Fernan then issued a negative SARO on June 29, 2012, withdrawing the release of the calamity fund, and demanded for the return of the P480 million funding.
However, instead of returning the money, the Bids and Awards Committee, chaired by Mendez, held a special meeting that very same day to conduct a pre-procurement conference for infrastructure projects to be implemented by the Province out of the withdrawn Calamity Fund.
In a pre-procurement process, the BAC determines availability of funding before proceeding with any project.
However, in that special BAC meeting, only the availability of the Php 480,775,000 was mentioned, and not the demand for their return by the DBM, the Ombudsman noted.
The BAC, with the exception of Provincial Budget Officer Marichu Alpuerto, who was then absent, unanimously approved the motion of Governor Degamo to undertake the said projects through Negotiated Procurement in Emergency Cases.
The documents showed that Degamo proceeded to award infrastructure contracts and released the mobilization funds totaling Php 143,268,441.59, representing 15 percent advance payments to the different contractors, namely Fiat Construction Services, Richmark Construction and Supply, Legazpi Premium Development Corporation, Lim General Contractor Corp., CTC Builders and Supplies, Inc., Ajan Jaeda Incorporated, and Bigfoot Construction & Supply.
The contracts involved rechanneling and dredging of rivers, construction of river dikes, and the repair of two bridges.
The Commission on Audit then questioned the disbursements, and issued eleven Notices of Disallowance on Nov. 29, 2012.
The COA noted that Degamo was aided by Mendez and Reyes, who had both certified in the Disbursement Vouchers that funds were available, that the allotments had been obligated, and the supporting documents were complete.
Degamo, Mendez and Reyes even questioned the authority of the DBM to withdraw the SARO, saying the DBM’s role is to only release the financial assistance from the Calamity National Disaster Risk-Reduction and Management Fund upon the order of the President.
Degamo also filed a case against Undersecretary Relampagos before the Ombudsman, where the Ombudsman ruled in favor of Relampagos on April 19, 2013. The Ombudsman said that the DBM’s authority to release SARO includes the authority to withdraw or revoke it.
The Ombudsman said “the unilateral act of ignoring DBM’s authority is indicative of evident bad faith, manifest partiality and/or gross inexcusable negligence which caused undue injury to the Government in the amount of Php 143,268,441.59.”
The Ombudsman noted that entering into 11 separate infrastructure contracts, and disbursing advance payments through the use of certifications that made untruthful statements on the availability of funds constitute the complex crime of Malversation of Public Funds through Falsification.
The Ombudsman said the respondents’ willful disregard of the DBM’s demand for the return of the Province’s calamity fund and its disbursement despite non-availability of funds constitute Grave Misconduct which is penalized by Dismissal from the Service.
Of the three provincial officials, however, only Degamo’s penalty could not be implemented because of his election as governor in 2013. Under the Aguinaldo Doctrine, re-election extinguishes the administrative liability of an elective official.
The Ombudsman found probable cause against Governor Degamo, Reyes, and Mendez for 11 counts of Malversation of Public Funds through Falsification, and for violation of Republic Act 3019 or the Anti-Graft and Corrupt Practices Act, and recommended the filing of criminal charges before the Sandiganbayan.
They were also found liable for Grave Misconduct and meted the penalty of Dismissal from the Service.
Degamo, Reyes and Mendez have appealed the decision. In a media conference on Tuesday, the Governor belied claims that he has been suspended, dismissed, or removed from office.
He told reporters this is black propaganda aimed at discrediting his administration.
