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Ombudsman indicts Biliran mayor for graft
04 December 2015


           The Office of the Ombudsman has found probable cause to charge Caibiran, Biliran mayor Eulalio Maderazo for violation of Section 3(e) of Republic Act No. 3019 (Anti-Graft and Corrupt Practices Act) in connection with the procurement of medicines without the benefit of a public bidding.

                 Municipal Treasurer Loreto Serdeña, Jr. and Officer-in-Charge (Accounting Department) Rodolfo Baguna are also facing charges for conspiring with Maderazo in giving unwarranted benefit, advantage and preference to the supplier, Andrea Medi Center.

            In August 2010, the Municipality of Caibiran purchased medicines worth P283,335.15 for the use of its rural health unit. Soon after, complaints of overpricing and purchase without the required public bidding were received by the Office of the Ombudsman.

                In the course of the investigation, it was found that the purchase did not pass through the Bids and Awards Committee (BAC) and that payment was processed without supporting documents such as abstract of bids and minutes of BAC meeting. The Commission on Audit reported that the purchase had “no proper documentation.”

               In an 11-page Resolution, Ombudsman Conchita Carpio Morales said that Maderazo, Serdeña and Baguna are liable for unlawfully resorting to shopping as an alternative mode of procurement considering that the purchase price was beyond the P50,000.00-threshold allowed for a fourth class municipality.

            “The supplier, Andrea Medi Center, was awarded the procurement contract without the benefit of a fair system in determining the best possible price for the government. The supplier was able to profit from the transaction without showing proof that their prices were the most beneficial to the government,” the Resolution stated.

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