CEBU CITY -- The anti-graft court has ordered the suspension, for six months without pay, of 18 Lapu-Lapu City officials involved in alleged overpricing of 470 computer units back in 2005.
There is basis to believe a private supplier, Kein Enterprises, received "unwarranted benefits" amounting to P12.6 million, the Office of the Ombudsman said.
Businessman Efrain Pelaez Jr. filed, five years before he ran for mayor, the complaint that led to the suspension.
But because he was reelected in 2007, former mayor Arturo Radaza was excluded from the decision. Radaza is now congressman of the city's lone district.
His wife, Mayor Paz Radaza, said that while she is willing to comply with the suspension order, her legal advisers told her that the respondents will file their motions for reconsideration.
Two of the respondents are high-ranking officials: City Administrator Teodulo Ybañez and City Legal Officer Michael Dignos. At least two have died and two others, retired.
470 computers
One of the respondents denied allegations the purchase was overpriced, and said the Bids and Awards Committee had observed the laws in conducting their bidding.
The case involves the purchase of 470 computers for public high schools in the city.
The ombudsman, in its decision, said these were not only overpriced (by about 116 percent) but failed to match the purchase order's specifications.
Graft Investigation and Prosecution Officer II Portia Pacquiao-Suson, in her August 28, 2009 decision, ordered that the 18 city officials be suspended for six months without pay.
The ombudsman's office found them guilty of conduct grossly prejudicial to the best interest of service.
Personalities
Those found guilty were lawyer Vincent Joseph Lim, then city legal officer; Teodulo Ybañez, city administrator; City Engineer Fernando Tagaan Jr.; lawyer Michael Dignos, acting city legal officer; Victoria Andoy, city budget officer; Elena Pacaldo, city treasurer; Rogelio Veloso, Technical Working Group (TWG) head; Dr. Cipriano Flores and Engr. Sharon Baguio, Bids and Awards Committee (BAC) members; Buenaventura Igot, city accountant and BAC member; Jerico Mercardo, BAC member; Engr. Maribeth Soronio, BAC member and TWG secretariat; Marita Guiao of the City Mayor's Office; Cleofe Solis, City General Services officer; Leandro Dante of the accounting department; Ernesto Imbong of the City Treasurer's Office; Rogaciano Tampus of the General Services Office (GSO); and Serena Uy, then Lapu-Lapu city schools superintendent.
Aside from Congressman Radaza, five other officials included in the complaint will no longer suffer legal liability because of their death, retirement and resignation from office.
Lim, who then served as the BAC's chairman, and Tagaan died just before the decision was brought to light.
Pacaldo and Solis retired from government service about six years before the decision was brought to their attention. Igot also previously resigned.
Bloated?
The ombudsman stated that the respondents unreasonably bloated the price of the computers at P50,000. That was overpriced by about P10,860 per unit, based on a comparison with prices at other computer suppliers, using similar specifications.
But Dignos, in an interview Friday, denied allegations that they bloated the cost of the computers.
He said the Office of the Ombudsman-Visayas failed to appreciate provisions of Republic Act 9184 or the Government Procurement Reform Law.
Dignos said the technical working group and the BAC had followed what the law required.
The price of P50,000 per unit was based on a canvass made in 2004, he said. It paid for not only the hardware, but also delivery, installation, training of personnel and a five-year warranty.
When they conducted the price canvassing back in 2004, they only based their order on the specifications of the computer units, but they didn't mention the brand name, as mandated by RA 9184.
Depreciation
Dignos also explained that computer units depreciate every year, which would explain the differences in price quotations.
The complaint stated that on February 8, 2005, then mayor Radaza had approved a purchase request by the Department of Education, Lapu-Lapu City Division for the acquisition of 470 units of computers, with an estimated unit cost pegged at P50,000.
Pelaez had claimed in his complaint that the City Government got computers that were worth less than half the unit price it paid for.
Based on a report by the Commission on Audit (COA), the computers delivered to the schools were of inferior specifications.
Also, the COA also found that 30 computer units were delivered to high schools in the island barangays of Caubian and Pangan - even if there was no power available in these barangays in those days. (JKV of Sun.Star Cebu)
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