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Graft raps eyed vs. Valencia dads
by Jay Dejaresco
Municipal officials of Valencia are in hot waters and may be facing a string of criminal charges for violation of the anti graft and corrupt practices act and other penal laws.
This surfaced after the Commission on Audit (COA) has unearthed a multi-million peso loan anomaly involving municipal officials of Valencia .
The COA has discovered that the municipality of Valencia, under Mayor Rodolfo Gonzales Jr., has extended financial assistance in the form of loans amounting to no less than P3.8-million to non-government organizations (NGO’s) and peoples’ organizations without proper accreditation.
The COA has also discovered out that members and officials of these NGO loan beneficiaries are the approving officials of the municipality of Valencia themselves. Because of this serious irregularity, the COA fears that the loan funds amounting to P3, 830,000.00 cannot be protected against loss and misuse, to the great disadvantage to the government and to the people of Valencia .
Four anomalous NGO-beneficiaries The commission on audit has identified at least four NGO beneficiaries which have been recipients of anomalous loan releases.
These NGO’s are the following:
(1) Valencia Integrated Growers Multi-Purpose Cooperative Inc., recipient of P3,000,000.00 loan;
(2) Valencia Contract Growers Association, recipient of P500,000.00 loan assistance;
(3) Valencia Ornamental Plants and Flowers Growers Association, Inc, recipient of P150,000.00 loan assistance
(4) Barangay Lipton Small Coconut Farmers’ Association, recipient of P500,000.00 loan assistance VOID loan releases The COA also declared that loans released to the Valencia IGMPC amounting to P3-million and to the Valencia Contract Growers Association are VOID considering that these NGOs are disqualified from receiving financial assistance from the municipality.
The COA said these disqualified NGOs will have to immediately settle the amount released to them. Violation of anti graft laws eyed The most serious discovery by the COA was the inter-locking of directors or officials or members of these NGOs with the approving officials of the municipal government.
By “interlocking” means officials of NGO loan beneficiaries are also the approving municipal government officials.
While not mentioning names of officials, the COA said that “some members and officials of Valencia Integrated Growers Multi-Purpose Cooperative and Valencia Contract Growers Association are the approving officials of the municipality.
The CHRONICLE is now trying to find out who these interlocking personalities are. A CHRONICLE review of Republic Act No. 3019, otherwise known as the anti graft and corrupt practices act yields at least five possible violations.
First, the anti graft law (Section 3[b]) holds liable any public official who directly or indirectly receives any benefit, either for himself or for any other person, in connection with any other contract or transaction between the government and any other person where this public official has to intervene under the law.
Second, the anti graft law (Section 3 [e]) penalizes a public official gives any private party unwarranted benefits in the discharge of his functions through manifest partiality , evident bad faith or gross inexcusable negligence.
Third, the anti-graft law (Section 3 [g]) punishes any public official who enters, in behalf of the government , into any transaction or contract manifestly and grossly disadvantageous to the government , whether or not the public officer will profit thereby.
Fourth, the anti graft law (Section 3[h]) penalizes any public official who, directly or indirectly, has financial interest in any business, contract or transaction in connection with which he intervenes or takes part in his official capacity, or in which he is prohibited by the constitution or by any law from having any interest.
Fifth, the anti-graft law (Section 3 [i]) penalizes any public official who becomes interested, for personal gain, or has material interest in any transaction or act requiring approval of a board or panel or group of which he is a member, and which exercises discretion in such approval, even if he votes against or does not participate in the action of the board, committee, panel or group.
Sixth, the anti graft law (Section 3 [j]) penalizes any public official who knowingly approves or grants any privilege or benefit in favor of any person not qualified for or not legally entitled to such privilege or advantage.
Other violations The COA has also cited other violations of laws as a result of interlocking personalities between the government and loan beneficiaries.
The COA said the cooperative code (R.A. 6938) has been violated, as “elective officials…shall be ineligible to become officers and directors of cooperatives.”
Further, the COA said this interlocking of personalities is strictly prohibited, and automatically disqualifies the NGO from being granted the fund. This is pursuant to COA circular 2007-001 (Oct 25 2007) which provides that: “none of its incorporators, organizers, directors, or officials is an agent of or related by consanguinity or affinity up to the fourth civil degree to the officials of the government organization authorized to process and/or approve the proposal, the MOA and the release of funds. Relation of this nature shall automatically disqualify the NGO from being granted the fund.”
Perjury Perjury raps are also eyed against erring officials who executed false sworn statements. Under COA circular 2007-001 one of the requirements for fund releases to NGOs is the execution of a sworn statement.
This sworn statement must state that none of its incorporators, organizers, directors, or officials is an agent of or related by consanguinity or affinity to the officials of the government authorized to process and/or approve the proposal, MOA and the release of funds. Stop granting assistance The commission on audit has urged for an immediate stop in granting financial assistance to unqualified NGOs and Pos to protect government funds from loss and misuse, and to avoid disallowance and penal sanctions.
The COA recommendation also requires immediate settlement from disqualified NGOs/POs who were already recipients of these anomalous financial assistance.
(Next week: the COA findings on each NGO and the personalities involved)