(UPDATED WITH CORRECTIONS) THE Office of the Ombudsman has found enough evidence to charge former Cebu City mayor Michael Rama for awarding three purchase orders for garbage collection without conducting competitive public bidding.
The case also implicates five former members of the bids and awards committee (BAC): Leizl Calamba, Lyndon Bernardo Basan, Conrado Ordesta III, Janeses Ponce and Dominic Diño.
The ruling follows a complaint filed by Jundel Bontuyan on Aug. 11, 2023, alleging that Rama and the BAC members awarded contracts to Jomara Konstrukt Corp., ACM Hauling Services, and ARN Central Waste Management Inc. without adhering to the competitive bidding process required by law.
Under Section 3(e) of Republic Act (RA) 3019, or the Anti-Graft and Corrupt Practices Act, corrupt practices include causing undue injury to any party or giving unwarranted benefits or advantages to a private party through manifest partiality, evident bad faith, or gross inexcusable negligence in the discharge of official duties.
The Ombudsman’s order, dated Dec. 23, 2024, was signed by Graft Investigation and Prosecution Officer III Myra Nimfa Solidum-Mendieta and Officer II Roseann Claudine Pasion. It was reviewed by Nellie Boguen-Golez and approved by Deputy Ombudsman Jose Balmeo Jr.
The Ombudsman also issued an administrative order on Jan. 3, 2025, dismissing Rama and the five BAC members from service.
It was the second time that Rama was dismissed from government service in less than a year.
Background
On Dec. 18, 2021, the City Council declared a state of calamity due to Typhoon Odette’s devastation on Dec. 16. The City’s Department of Public Services (DPS) subsequently submitted procurement requests for solid waste hauling, collection and disposal services.
The BAC recommended “negotiated procurement” under emergency cases as permitted by the Government Procurement Policy Board. On Dec. 22, ACM Hauling Services and Jomara Konstrukt Corp. were invited to submit price quotations. ARN Central Waste Management Inc. was similarly invited on Dec. 27.
Each company received a notice of award and notice to proceed after Rama approved purchase orders amounting to P4.96 million for ACM, P4.99 million for Jomara, and P35 million for ARN Inc. On Jan. 21, 2022, Rama authorized the DPS to negotiate an additional contract with ACM for disposing of 9,300 tons of solid waste worth P12.83 million.
The complainant argued that using negotiated procurement in emergency cases gave unwarranted benefits to Jomara Konstrukt Corp., ACM Hauling Services, and ARN Inc., violating procurement laws.
Respondents’ defense
In their counter-affidavit, respondents justified their actions by citing the state of calamity declared due to Typhoon Odette. They argued that Section 53.2 of the Revised Implementing Rules and Regulations of RA 9184, or the Government Procurement Reform Act, allows emergency procurement in such situations.
Respondents emphasized that competitive bidding was impractical during emergencies as it typically takes between 26 to 136 days, which they did not have, given the urgent need for waste management services following the typhoon.
Despite respondents’ arguments, the Ombudsman ruled that relying solely on negotiated procurement without conducting public bidding violated procurement laws. The ruling stressed that competitive bidding ensures transparency and fairness, both absent in this case.
The Ombudsman concluded that Rama and the BAC members acted with bad faith, manifest partiality, or gross inexcusable negligence by resorting to negotiated procurement instead of competitive bidding. (JPS)
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Editor’s Note: This updated version corrects the title and the first paragraph to clarify that the Office of the Ombudsman has only recommended the filing of the case before the appropriate court. The earlier version of this story states that a criminal case was filed before the Sandiganbayan against Rama and other officials. However, there was no information on whether it was already filed.