ILIGAN City Congressman Celso Gomera Regencia, along with five other complainants, has filed a graft and corruption case against incumbent City Mayor Frederick W. Siao before the Office of the Ombudsman in Davao City, Area Office for Mindanao, on Tuesday, February 18, 2025. The case stems from allegations of irregularities in the contract for the much-anticipated Pala-o Market Project, which falls under Regencia’s jurisdiction.
The congressman claims that improper dealings and questionable practices have marred the completion of the project, which has raised concerns among the local community, particularly the city’s market vendors.
The violations filed against Siao include Section 3(e) and (g) of Republic Act (RA) No. 3019 (Anti-Graft and Corrupt Practices Act), Article 217 of the Revised Penal Code (Malversation of Public Funds), and administrative offenses such as Grave Misconduct and Grave Abuse of Authority.
“Gisang-at namo kini nga kaso kay klaro kaayo nga adunay pang-abuso sa katungdanan ug pag-usik sa kwarta sa katawhan. Ang balaod natumpag, ug ang katawhan sa Iligan maoy naapektuhan. Kini responsibilidad namo nga panagutan ang mga sayop sa gobyerno,” Regencia addressed the media, explaining that the administrative charges are backed by strong evidence, particularly in relation to the Pala-o Market Project contract.
(We have elevated this case because it is very clear that there has been abuse of power and waste of public funds. The law has been violated, and the people of Iligan have been affected. It is our responsibility to hold the government accountable for its mistakes).
He also clarified that this action is not politically motivated, but rather a pursuit of justice and truth and that the primary goal is to ensure that the wrongdoings are addressed, and the responsible parties are held accountable, regardless of any political affiliation.
“Ang ebidensya may maghisgot. Kung politika pa ni, dugay na unta namo gisang-at bisan wala pa mahuman ang among imbestigasyon. Apan karon, lig-on ug klaro ang ebidensya,” he emphasized.
(The evidence speaks for itself. If this were political, we would have raised it much earlier, even before our investigation was completed. But now, the evidence is strong and clear).
In a document obtained by SunStar Davao on the day of his filing, it was stated that in November 2019, the City Government of Iligan awarded B.M. Marketing (BM) a P583.47 million contract for the design and construction of the New Pala-o Public Market, with an 18-month deadline set for August 2021. Delays due to the Covid-19 pandemic, lockdowns, and material shortages led to six extensions, moving the deadline to November 2022. By May 2022, BM’s completion rate was reported at 70.17 percent, later revised to 66.98 percent.
After Mayor Siao took office in 2022, he reorganized the Project Implementing Unit (PIU) and denied a seventh extension. In November 2022, PIU lowered BM's completion rate to 61.95 percent.
BM filed an arbitration complaint, claiming the project was 99.42 percent complete by April 2023. The Construction Industry Arbitration Commission (CIAC) ruled in BM’s favor in May 2024, awarding P268.5 million for work completed and invalidating BM’s contract termination by Mayor Siao.
Despite the CIAC ruling, Mayor Siao awarded a new contract to Metro Stonerich Corporation in June 2024 to complete the project and approved an advance payment in December.
BM argues that Siao’s actions violated the Anti-Graft and Corrupt Practices Act, causing harm to both BM and the local government, and leaving the market unfinished.
Currently, Congressman Regencia is optimistic that the Office of the Ombudsman will thoroughly review the case and take the appropriate legal actions.
Regencia also assured the public that he will closely monitor the progress of the case, push for the proper completion of the Pala-o Market, and ensure that public funds are used responsibly. He has also reaffirmed his commitment to standing firm against corruption and abuse of power.
“Oo. Salig kami sa Ombudsman nga maglihok nga patas. Ang ebidensya lig-on ug klaro. Among hangyo nga unta paspas ang imbestigasyon kay ang hustisya nga dugay, hustisya nga sayang (Yes. We trust the Ombudsman to act fairly. The evidence is strong and clear. We ask that the investigation be expedited because delayed justice is justice denied), he said.
The Pala-o Market Project in Iligan City is a significant infrastructure initiative designed to replace the original Pala-o Market, which was established in 1960. The project is situated on a 9,735-square-meter lot, donated by the Laya family to the city government. This development project seeks to modernize and expand the market to better serve the growing needs of the community.
The new market will feature state-of-the-art facilities, including a two-story building with a roof deck, which will provide more space for vendors and customers alike. The total area of the new market building will cover approximately 2,218 square meters, ensuring that it can accommodate a wide variety of businesses and services.
Meanwhile, on Wednesday, February 19, Iligan City Mayor contacted SunStar Davao, stating that they are awaiting a copy of the complaint. He mentioned, “We are waiting for a copy of the complaint. As of now, I have no working knowledge about it. One thing is sure, this is a politically motivated move considering its timing now that we are nearing the campaign period for the upcoming elections.” DEF