THE Mandaue City Government is investigating two job order employees from its City Treasurer’s Office (CTO) following the discovery of alleged financial irregularities. City Administrator Gonzalo “Sally” Malig-on confirmed on Thursday, Oct. 16, 2025, that the workers were involved in separate incidents. One case, described by Malig-on as “more serious,” involves the tampering of official receipts to alter collection records. The other involves an employee who allegedly pocketed P10,000 in city collections.
These new probes have emerged in the wake of a much larger, concluded case. On Monday, Oct. 13, the City served a dismissal order to a cash clerk from the same office after an investigation determined that the employee failed to turn over approximately P3.3 million in public funds.
Malig-on said the CTO discovered the new irregularities during a meeting on Wednesday, Oct. 15.
A PATTERN OF IRREGULARITIES. The discovery of financial misconduct within the CTO points to a possibly deep problem. The P3.3 million case is notable for its duration, with questionable transactions traced as far back as Feb. 2024. The investigation into the matter began in April 2025 under the previous administration of mayor Glenn Bercede and was seen through to its conclusion under the new leadership of Mayor Thadeo Jovito “Jonkie” Ouano.
These cases are not isolated. They follow a prior administrative case that resulted in the dismissal of another CTO employee for tampering with receipts worth P250,000. Taken together, the City is now dealing with at least four separate instances of alleged or proven misconduct within the same critical office: the dismissed P3.3 million clerk, the two job order employees currently under investigation, and the previously dismissed employee now facing a criminal case.
THE CITY’S RESPONSE. In handling the P3.3 million case, the City provided the employee an opportunity to respond to the allegations before the investigating team recommended dismissal. The clerk disputed the findings, but Malig-on said the documentary evidence created an undeniable “paper trail” directly linking the employee to the unremitted funds. The final decision was based on a finding of “very serious dishonesty,” according to Malig-on.
For the two new cases, the employees have been isolated and are no longer allowed to handle cash but are required to report to work to cooperate with the ongoing inquiry. Malig-on explained this approach allows investigators to “hear their side” and could help “see the bigger picture” of who else might be involved.
The City is escalating the earlier P250,000 tampering case by preparing to file criminal charges with the Ombudsman, a step that requires a higher standard of proof — proof beyond reasonable doubt — than the internal administrative case.
WHY THE PROBE MATTERS. The CTO manages millions of pesos in public funds, encompassing payments for business permits, taxes, and various fees. When these funds do not reach city coffers, it jeopardizes public confidence and raises serious concerns about the integrity of the city’s financial systems.
The issue is compounded by the fact that the City uses a computerized system, which was presumed to have safeguards. The challenge of tampering occurring in a computerized system suggests the problem may be more complex than individual misconduct, pointing instead to potential systemic vulnerabilities.
“We need to understand how receipts could be tampered with or how reports could be overridden when the system is supposed to be computerized. We have to go deeper than just reassigning or suspending staff. The problem might be within the system itself,” Malig-on said, signaling that a major overhaul of internal controls is necessary.
WHAT’S NEXT. The City is moving forward on multiple fronts. The internal investigation into the two job order employees will continue to determine the full scope of their alleged actions and whether other personnel are implicated. The City Legal Office will proceed with building its criminal case for the Ombudsman against the previously
dismissed employee.
Following the administrative dismissal of the cash clerk in the P3.3 million case, the City has yet to announce if separate criminal charges will be pursued. The administration has pledged to tighten internal controls and implement systemic reforms aimed at preventing future losses and restoring public faith in the treasurer’s office. / ABC