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Rep. Radaza, 19 Others, Ordered Charged for Overpriced Computers
02 December 2011, source: Ombudsman Website

            Ombudsman Conchita Carpio Morales ordered the filing of graft charges against former Lapu-lapu City Mayor now Rep. Arturo O. Radaza and other local officials of Lapu-lapu City, Cebu for the irregular purchase of personal computers in 2005.

            In the Information approved by Ombudsman Morales, named respondents were then Lapu-lapu City Mayor Radaza, City Schools Superintendent Serena Uy, former Bids and Awards Committee (BAC) Chairman Vincent Joseph Lim, current BAC Chairman Teodulo Ybanez, BAC Vice-Chairman Fernando Tagaan, Jr., and BAC members Michael Dignos, Victoria Andoy, and Elena Pacaldo.

            Also impleaded were Technical Working Group (TWG) Head Rogelio Veloso and TWG members Cipirano Flores, Sharon Baguio, Buenaventura Igot, Jerico Mercado and Maribeth Sorono, Administrative Aide III Marita Guiao of the Procurement Section, and Inspection Committee members Cleofe Solis, Leandro Dante, Ernesto Imbong, and Rogaciano Tampus, and private individual Jennet Valencia, Manager and Proprietor of Kein Enterprises (KE).

            The case arose from a complaint filed by the Coralpoint Educational Foundation, Inc. in Lapu-lapu City against the said officials for allegedly conspiring with each other in causing the overpriced purchase of 470 computer units for the national and public high schools of Lapu-lapu City.

            The complaint alleged that then Mayor Radaza approved a Purchase Request by the Dept. of Education , Lapu-lapu City Division for the acquisition of the said computers, estimated at P50,000 each for a total of P23.5M.

            During the bidding process, only KE qualified. KE offered and was subsequently awarded the contract to supply 470 computer units at P49,950 each, for a total price of P23,476,500.

            Investigation conducted by OMB-Visayas revealed that KE delivered items which were of inferior quality hence , was not in compliance with that specified in the Purchase Order. It was also revealed prevailing market price for the computers with the same specifications was only P23,100 per unit or a total amount of only P10,857,000 or a difference of P12,619,500.

            OMB-Visayas investigators stated that the “disparity of P26,850 (P49,950 less P23,100) or a mark-up of 116% from P23,100” is far beyond the 10% which is allowed under Sec.3.1 of Commission on Audit (COA) Memorandum No. 97-012 s. 1997.

            They added that “it is clear that respondents acted with manifest partiality for Ken Enterprises and with evident bad faith against the government.”

            Hence, each of the above-stated respondents was ordered charged with Violation of Sec. 3(e) of RA 3019 (Anti-Graft and Corrupt Practices Act) before the Sandiganbayan.

            Bail recommended was P30,000 each.

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