FOLLOWING the filing of a graft and corruption case against Iligan City Mayor Frederick W. Siao by Iligan City Lone District Congressman Celso Gomera Regencia and five other complainants, Siao has confirmed that he has yet to receive a formal copy of the complaint.
The case, filed with the Office of the Ombudsman in Davao City, Area Office for Mindanao on February 18, 2025, alleges irregularities in the contract for the modernization of the Pala-o Market Project, which originally began during Regencia’s third term as mayor.
In a complaint obtained by SunStar Davao from the Congressman’s legal team, Regencia accuses Mayor Siao of improper dealings related to the project, raising concerns about the transparency and legitimacy of the contract process.
Despite the seriousness of the allegations, Siao emphasized that he is unaware of the specific details of the complaint.
“We are waiting for a copy of the complaint. As of now, I have no working knowledge about it,” Siao told SunStar Davao on February 19 through a text message. “One thing is sure, this is a politically motivated move, especially considering the timing now that we are nearing the campaign period for the upcoming elections.”
Prior to this, Siao revealed to a Davao reporter that Regencia had been a former signatory on the project, raising further questions about the congressman’s involvement.
“The one who will lose trust is him; he was the former signatory. He should be favoring the city government. I’m wondering, is he a contractor? Why is he worried about the project? That’s a big question mark now,” Siao remarked.
Meanwhile, Regencia expressed that his decision to file a case with the Ombudsman against Siao is not politically motivated, saying it is a “stand against corruption, misuse of public funds, and betrayal of the people of Iligan.”
Regencia said those who abuse their power must be held accountable and face justice, and he fights for every Iliganon who deserves a government that upholds integrity and serves the people.
"Dili kini 'noise' kundi 'evidence.' Realidad ang sobrang bayad. Realidad ang illegal rega kontrata. Realidad ang pag-abuso sa pondo sa katawhan. Ang husgado maoy magbuot, apan ang katawhan maoy dapat makakita sa kamatuoran," he stated during the filing.
(This is not 'noise' but 'evidence.' The overpayment is a reality. The illegal regulations are a reality. The misuse of public funds is a reality. The court will decide, but it is the people who must see the truth).
The charges filed against Siao include violations of 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.
Regencia outlined several key legal points in a statement handed to Davao reporters, including the unauthorized contract Siao signed with Metro Stonerich Corporation for P253,986,000 without approval from the Sangguniang Panlungsod, which violates Section 455 of the Local Government Code. The project allegedly suffered a significant financial disadvantage, as the original contract price was P583,468,951.01, with 92.71 percent already completed by BM Marketing. Yet, a new contract was awarded for P253,986,000.00, resulting in an unjustified price increase of P231,360,288.69. This contravenes RA 9184, which mandates that procurement must adhere to the approved budget.
Additionally, the mayor approved an advance payment of P38,097,900 to Metro Stonerich, violating Article 217 of the Revised Penal Code regarding the misuse of public funds. The termination of BM Marketing’s contract was deemed invalid by the Construction Industry Arbitration Commission (CIAC), which ruled that the mayor acted in bad faith by manipulating work completion rates.
This led to a costly settlement of P560,843,238.70 owed to BM. Furthermore, the mayor’s actions allegedly delayed the completion of the market project, negatively impacting vendors and the public. DEF