Plunder case against Governor Raul Lee et al.

 

Republic of the Philippines
OFFICE OF THE OMBUDSMAN
Quezon City

VLADIMIR RAMON B. FRIVALDO
Incumbent Member of the
Sangguniang Panlalawigan
Complainant,

-versus- OMB-C-C-12-0355
FOR: Violation of R.A. 3019
Section 3, Paragraphs (a) and (g)

RAUL R. LEE, incumbent Governor,
ANTONIO H. ESCUDERO, incumbent Vice Governor, REBECCA D. AQUINO,
FERNANDO DAVID H. DURAN III,
ARNULFO L. PERETE, FRANCO ERIC
O. RAVANILLA, ANGEL E. ESCANDOR, BENITO L. DOMA, BERNARD H. HAO, PATRICK Q. RODRIGUEZA, NESON A. MARAÑA, all incumbent Members of the Sangguniang Panlalawigan of Sorsogon.
HIL BENEDICT G. MANZANADES, Land Bank Legaspi Office
RENATO G. EJE Vice President,
Land Bank of the Philippines,
Respondents.
x————————————————–x

VLADIMIR RAMON B. FRIVALDO
Incumbent Member of the
Sangguniang Panlalawigan
Complainant,

-versus- OMB-C-A-12-0373
FOR: Dishonesty and Grave
Misconduct
RAUL R. LEE, incumbent Governor,
ANTONIO H. ESCUDERO, incumbent Vice Governor, REBECCA D. AQUINO,
FERNANDO DAVID H. DURAN III,
ARNULFO L. PERETE, FRANCO ERIC
O. RAVANILLA, ANGEL E. ESCANDOR, BENITO L. DOMA, BERNARD H. HAO, PATRICK Q. RODRIGUEZA, NESON A. MARAÑA, all incumbent Members of the Sangguniang Panlalawigan of Sorsogon.
Respondents.
x————————————————–x

REPLY

Comes now Complainant, unto this Honorable Office most respectfully avers that:

1. Respondents Hil Benedict G. Manzanades and Renato G. Eje would like to point out that the loan was duly approved and evaluated by the different channels of the Land Bank of the Philippines (LBP) approving authority – from the recommendation of the Account Officer to the approval of different signing authorities, to show that there could not be any conspiracy between Sorsogon Governor Raul R. Lee and some officials of the LBP (See paragraph 3 of the Joint Counter-Affidavit of Messrs. Hil Benedict G. Manzanades and Renato G. Eje). With all due respect, NO EVIDENCE has been presented to prove this allegation;

2. Paragraphs 4.1; 4.2; and 4.3 of the Joint Counter-Affidavit of Hil Benedict G. Manzanadez and Renato G. Eje are correct statement of facts. Paragraph 4.4 is not known to the Complainant while paragraph 4.5 is an anomalous allegation designed only to circumvent the evidences at hand and make it appear that (i) there was no conspiracy and that the THREE HUNDRED FIFTY MILLION PESOS (P350,000,000.00) LBP loan is advantageous to the Provincial Government when in truth, it was not;

2.1 For instance, respondents Hil Benedict G. Manzanades and Renato G. Eje said in paragraph 4.5 mentioned in their Counter Affidavit, they sent a second letter to Governor Lee dated March 30, 2011 with an offer of interest rate of 5.061% as a result of recent movement of rates in the financial market (See paragraph 4.5 of the Joint Counter-Affidavit of Hil Benedict G. Manzanadez and Renato G. Eje);

“4.5 The Land Bank-LC, thru respondent Manzanades, sent its first offer letter on March 07, 2011 offering an interest rate of 7.0% and the second one on March 30, 2011 with an interest rate of 5.061% as a result of recent movement of rates in the financial market. The said letter of Land Bank dated March 07, 2011 states that all other charges shall be waived.”

2.2 With all due respect, the alleged letter contains no receipt of the Office of the Governor. In fact, in Annex “6” of the Joint Counter-Affidavit of Manzanades and Eje, undersigned complainant brought to the attention of the respondents that I was asking for the letter-proposals of the PNB and LBP but this Annex “5” of the Joint Counter-Affidavit of Messrs. Manzanades and Eje was not among those submitted even to the Sangguniang Panlalawigan (See paragraph 1 item 1 of the Annex “6”);

“During the last Regular Session April 11, 2011 there was an overwhelming majority (SPM Benito L. Doma, SPM Berand Hao, SPM Angel E. Escandor, SPM Arnulfo L. Perete, SPM Rebecca D. Aquino, SPM Francisco G. Frivaldo, SPM Renato V. Guban, SPM Franco Eric O. Ravanilla and SPM Nelson Marana) except the undersigned who voted in favor of the Committee Report no.27-2011 of the Committee on Budget and Appropriation joint with the Committee on Rules, Privileges and Amendments in favor of a measure authorizing Gov. Raul R. Lee to enter into a loan agreement to any banking/lending institution in the amount of P350.0 million loan and disregarding my valid objection, on the following grounds:

1. There is still a pending motion referred to the said joint Committee to tackle the undersigned letter dated April 2, 2011 requesting for copies of the letter proposals from both the Philippine National Bank and the Land Bank of the Philippinesmitted and received, Governor Lee would not have made a letter dated May 17, 2011 (Annex “K” of my Complaint) addressed to Vice Governor Antonio H. Escudero submitting the proposed Loan Agreement from the Philippine National Bank (PNB) for perusal, review and ratification as well as the proposed PNB Loan Agreement requested by the Governor to be ratified (Annex “L” of my Complaint);

2.4 Even granting without admitting that Annex “5” of the Joint Counter-Affidavit of Messrs. Manzanades and Eje was submitted, the allegations in paragraph 4.5 that all charges shall be waived according to Annex “4” are NOT CORRECT. Review of Annexes “4” of the Joint Counter-Affidavit reveal the truth.

“Fees : 1% handling and ½ % commitment fees, inspection, and appraisal/application fees are waived. Pre-payment fee of 3% shall also be waived but it shall be collected in case of loan take-out by other banks and if required by special financing program.”

2.5 Worst, when the two (2) Loan Agreement (Term Loan 13 and Omnibus Loan Term) with LBP was executed, all these fees that should have been waived but are actually still included in Section 5 of the Loan Agreement (Term Loan 13) of Annex “14” and Section 5 of Omnibus Loan Term of Annex “15”, as follows:

Loan Agreement (Term Loan 13)

“Section 5. Other Fees and Charges: Subject to a 3% pre-payment penalty in case of loan take out by other banks or as required by the Special Funder. Commitment handling, filing/processing & appraisal/inspection fees are waived unless required by Special Funder. GRT for the account of the LGU.”

And

Omnibus Loan Term

“Section 5. Fees/Charges. Commitment, handling, filing/processing and appraisal/inspection fees are waived unless required by Special Funder. The LOAN shall be subject to a pre-payment penalty of three percent (3%) In case of loan take-out by other banks or if required by Special Funder.”

2.6 What about the alleged offer of 5.061% by Respondent Hil Benedict G. Manzanadez Department Manager/Head, Legazpi LC contained in the letter dated March 30, 2011, marked as Annex “5” in their Joint Counter-Affidavit, the same has never happened, on Section 4 of the Loan Agreement (Term Loan 13) of Annex “14” and Omnibus Term Loan of Annex “15” provides thus:

Loan Agreement (Term Loan 13)

“Section 4. Interest: Prevailing prime rate at the time of availment plus 1% min. spread, provided a minimum of 3% Account Profitability Rate (APR) is met. Subject to quarterly repricing or at applicable special financing rate if special funds is accessed.

And

Omnibus Term Loan

“Section 4. Interest Rate/s. Interest of the LOAN shall be equivalent to LENDER’S prevailing prime rate at the time of availment at applicable special financing rates, if funded under special financing program. Gross Receipt Tax (GRT) shall be for account of the BORROWER.

2.7 Respondent Manzanes offer of 5.061% has become an illusion. It is no longer found in any of the two LBP Loan Agreements (marked in the Annexes “14” and “15” of the Joint Counter-Affidavit of Messrs. Manzanades and Eje) both signed by Respondent Governor Lee and Respondent LBP Vice President Renato G. Eje.

Unfortunately, Respondents Gov. Raul R. Lee, Vice Gov. Antonio H. Escudero, Board Members of the Sangguniang Panlalawigan namely Rebecca D. Aquino, Fernando David H. Duran III, Arnulfo L. Perete, Franco Eric O. Ravanilla, Angel E. Escandor, Benito L. Doma, Bernard H. Hao, Patrick Q. Rodrigueza did not exert effort nor initiated action to secure a concessional interest rates lower than the prevailing interest rates set by the Central Bank’s standard reference rate, thereby violating Article 395 paragraph C of the Implementing Rules and Regulations of the Local Government Code (R.A. 7160) which provides thus:

“Government financial and other lending institutions are authorized to grant Local Government Units such loans, credit lines, advances, and other forms of indebtedness for projects and purposes referred in paragraph (B) hereof, preferably at concessional interest rates lower than the prevailing rates as may be authorized by the governing board of the financial or lending institution.

Prevailing rates shall mean the Central Bank standard reference rate for medium-and long-term loans.”

3. With their admissions on their Counter-Affidavits and Omnibus Joint Counter Affidavits’ of Respondents Gov. Lee, Vice Gov. Escudero, Board Members Aquino, Duran, Perete, Ravanilla, Escandor, Doma, Hao and Rodrigueza about the truth regarding the existence of the PNB proposal (marked as Annex “J” of my Complaint) and the fact that the latter was the one most advantageous to the Provincial Government an offense for violation of Section 3(a and g) of R.A. No. 3019 was indeed committed, thus:

Section 3. Corrupt practices of public officers. In addition to acts or omissions of public officers already penalized by existing law, the following shall constitute corrupt practices of any public officer and are hereby declared to be unlawful:
(a) Persuading, inducing or influencing another public officer to perform an act constituting a violation of rules and regulations duly promulgated by competent authority or an offense in connection with the official duties of the latter, or allowing himself to be persuaded, induced, or influenced to commit such violation or offense.
xxxx
(g) Entering, on behalf of the Government, into any contract or transaction manifestly and grossly disadvantageous to the same, whether or not the public officer profited or will profit thereby.

4. Indeed, with the admission of the truth that the PNB proposal of five percent (5%) is most advantageous than 5.061% of LBP but was never acted upon by the Provincial Government and by the Respondents, the evidence of guilt of respondents are strong enough to warrant immediate preventive suspension from the office.

5. The undersigned would like to respectfully reiterate that in a Letter dated July 5, 2012 (marked as Annex “N” in my Complaint) of Dominador O. Jardin, Prov’l. Gov’t. Dept. Head of the Provincial Planning and Development Office (PPDO), addressed to the undersigned complainant, he stated that his Office could NOT come upon any feasibility study of the list of projects such as roads, bridges, buildings, farm to market roads and tourism facilities funded in the P350,000,000.00 LBP loan from available existing records. These only shows that the PPDO officer nor his office was made a part of the official action of the provincial government to come up with the decision to justify and substantiate the loan application for some “priority projects“ of respondents.

6. Worst, based on the Letter dated June 1, 2012 (marked as Annex “V” in my Complaint) of Provincial Treasurer Efilda C. Nogales and Provincial Accountant Mercedes J. Ativo duly noted by Respondent Gov. Lee, the Provincial Government had ALREADY PAID an amount of SEVENTY TWO MILLION NINE HUNDRED TWENTY FIVE THOUSAND NINE HUNDRED FORTY EIGHT PESOS AND SIXTY ONE CENTAVOS (P72,925, 948.61) to various contractors.

In sum, the THREE HUNDRED FIFTY MILLION PESOS (P350,000,000.00) LBP Loan resulted in grave irreparable damage and prejudice to the Sorsogon taxpayers.

In view of the said acts of Respondents Gov. Raul R. Lee, Vice Gov. Antonio H. Escudero, Board Members Rebecca D. Aquino, Fernando Dave H. Duran III, Arnulfo L. Perete, Franco Eric O. Ravanilla, Angel E. Escandor, Benito L. Doma, Bernard H. Hao and Patrick Q. Rodrigueza, they should also be held liable for violation of Section 2 of Republic Act No. 7080 or “An Act Defining and Penalizing the Crime of Plunder, thus:

Section 2. Definition of the Crime of Plunder; Penalties – Any public officer who, by himself or in connivance with members of his family, relatives by affinity or consanguinity, business associates, subordinates or other persons, amasses, accumulates or acquires ill-gotten wealth through a combination or series of overt criminal acts as described in Section 1 (d) hereof in the aggregate amount or total value of at least Fifty million pesos (P50,000,000.00) shall be guilty of the crime of plunder and shall be punished by reclusion perpetua to death. Any person who participated with the said public officer in the commission of an offense contributing to the crime of plunder shall likewise be punished for such offense. In the imposition of penalties, the degree of participation and the attendance of mitigating and extenuating circumstances, as provided by the Revised Penal Code, shall be considered by the court. The court shall declare any and all ill-gotten wealth and their interests and other incomes and assets including the properties and shares of stocks derived from the deposit or investment thereof forfeited in favor of the State.

WHEREFORE, premises considered, Complainant respectfully prays of the Honorable Office to institute the appropriate charges against Respondents and in the meantime order their immediate preventive suspension from the office;

IN WITNESS WHEREOF, I have hereunto affixed my signature this 12th day of February 2013 at Quezon City, Philippines.

VLADIMIR RAMON B. FRIVALDO
Affiant

SUBSCRIBED AND SWORN to before me this 12th day of February 2013 at Quezon City, Philippines. Affiant exhibited to me his Driver’s License bearing number 3-90-102197 containing his picture and signature as competent evidence of his person.

ADMINISTERING OFFICER

 

——————————————-

Advertisements

2 Comments

Filed under Bulan and The rest Of Bicol Region, Graft and Corruption, Politics, SANGGUNIANG PANLALAWIGAN, Sorsogon City, VLADIMIR RAMON B. FRIVALDO

2 responses to “Plunder case against Governor Raul Lee et al.

  1. citizen

    It’s getting tighter for some people in Bulan. Bulan “Bulsa” public servants must go, their happy times are over.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s