Ombud files charges vs Cebu airport officials

Tuesday, July 12, 2011

CEBU CITY -- The former general manager and six incumbent officials of the Mactan Cebu International Airport (MCIA) face criminal and administrative charges before the Office of the Ombudsman over allegedly anomalous improvement projects in 2006.

In a four-page final evaluation report, Graft Investigator Rosanna Ortiz found basis to upgrade into a criminal case a complaint against former MCIA general manager Danilo Augusto Francia and six others for the allegedly irregular asphalt overlay of the taxi stand and the entrance to the Most Important Persons (MIP) lounge at the airport.

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Francia, whom President Benigno Aquino III recently appointed as Department of National Defense assistant secretary for plans, will also be facing an administrative case for dishonesty before the ombudsman.

Francia, in an interview, denied he violated any law.

"I came in on August 31, 2006, and already the airport was getting ready for the 12th Asean (Association of Southeast Asian Nations) Leaders Summit. How can I be involved in something that early? Remember that the current projects then were stopped because of alleged irregularities and the previous general manager was relieved," he said.

Dishonesty

The criminal case against the seven public officials are for violations of Republic Act (RA) 3019 (or the Anti-Graft and Corrupt Practices Act) and RA 9184, or the Government Procurement Reform Act. They are also facing an administrative case for dishonesty.

The other airports officials facing similar charges are: Romeo Bersonda, airport operations department assistant manager; Alvarro Derramas, MCIA Authority (MCIAA) property division manager; Eduardo Ginete, MCIAA principal engineer; Catherine Sepulveda, cashiering division manager; Grace del Bando, MCIAA corporate accountant; and Fortunato Sanchez, the project's contractor and managing director of Socor Construction Corp.

The case stemmed from the complaint businessman Crisologo Saavedra filed against the seven respondents before the Office of the Ombudsman-Visayas.

Saavedra, in his complaint, alleged that the asphalt overlay of the taxi stand and entrance to the MIP Lounge at the MCIA were allegedly done without public bidding.

He alleged that the airport management awarded the project to a favored contractor and that the project, with total cost of P64,960.71, was overpriced.

Negotiation

An audit team from the MCIAA and the Commission on Audit found that the contract entered into between the MCIAA and Socor Construction was done through "negotiation."

"The procurement was irregular because it did not pass the normal procurement process, wherein bidding is required," said the audit report.

It also said the contract did not fall under the "alternative methods of procurement," as provided in the exception specified in Section 48 to 53 of Republic Act 9184 and its implementing rules and regulations.

But an audit team reported that the contract price for the project was "reasonable" and that it was "in accordance with the program of work, plans and specifications."

Committee

The state auditors, however, noted that the expense was irregular since the decision to enter into a negotiated contract was not supported by a recommendation from the bids and awards committee.

The process is required under Section 12.1, Rule 5 of the implementing rules and regulations of Republic Act 9184, the auditors said.

The auditors said the contract was notarized on December 13, 2006, or 26 days after the issuance of a Notice to Proceed dated November 14, 2006.

They added that the budget allocation by the Department of Budget and Management was for the construction of the MIP Lounge at the Mactan airport, and not for asphalt overlay of the taxi stand and entrance to the lounge.

Francia pointed out that the MIP Lounge was finished in 87 days and is still being used by presidents, heads of states and other dignitaries who come to Cebu.

He said MCIA is the only airport in the country with an MIP.

"Unlike the lampposts, all those projects were done very cost-effectively, finished way in advance and all ready for that milestone event (Asean meeting). And they are used up to this day," he said.

Saavedra, who used to participate in biddings for MCIA projects, filed several cases against airport officials before the Ombudsman. (GMD/EOB/Sun.Star Cebu)