Graft court convicts 3 ex-DPWH execs, contractor in Cebu lamppost scandal

DECORATIVE The decorative lampposts like these installed along the street of Mandaue City in Cebu in 2007 when it hosted the Association of Southeast Asian Nations Summit are now gone but the controversy surrounding the P365-million project continues, with the conviction of three public works officials and the project contractor over the purchase found to be overpriced. —CDN FILE PHOTO

CEBU CITY—Three former officials of the Department of Public Works and Highways in Central Visayas (DPWH-7) and a private individual were sentenced to six to eight years in prison after they were found guilty of corruption by the Sandiganbayan for the P365-million purchase and installation of “overpriced” lampposts in Cebu when it hosted the Association of Southeast Asian Nations Summit in 2007.

The Sandiganbayan Sixth Division, in a ruling promulgated on Sept. 29, said the prosecution presented sufficient evidence to prove the liability of the four accused, namely, Robert Gingging Lala, then DPWH-7 regional director; Pureza Fernandez, then acting chief of the maintenance division; Agustinito Hermoso, then member of the bids and awards committee; and Gerardo Surla of Gampik Construction and Development Inc.

The three DPWH officials were dismissed from service by the Office of the Ombudsman and affirmed by the Court of Appeals in 2011. Since then, they had kept themselves out of the public eye. Attempt to reach Surla or his company also failed.

The four were also barred from holding government office in the decision signed by Associate Justices Kevin Narce Vivero, Sarah Jane Fernandez, and Karl Miranda.

The accused can still file a motion for reconsideration at the antigraft court or appeal their conviction at the Supreme Court.

Unwarranted advantage

All four accused were convicted for “causing any undue injury to any party, including the government, or giving any private party any unwarranted benefits, advantage or preference in the discharge of his official administrative or judicial functions through manifest partiality, evident bad faith or gross inexcusable negligence.”

The Sandiganbayan said the accused gave unwarranted advantage or preference to Gampik, acted with manifest partiality and gross inexcusable negligence, and conspired for the overpriced lampposts in Lapu-Lapu City.

All of the 11 charged with alleged overpricing and bidding violation in the purchase of lampposts installed in Mandaue City, including the four convicted in the Lapu-Lapu City purchase, were acquitted for failure of the prosecution to prove their guilt beyond reasonable doubt.

Former Mayors Thadeo Ouano of Mandaue and Arturo Radaza of Lapu-Lapu were charged over the lamppost scandal. The Sandiganbayan, however, dropped the lone case against Radaza in 2013. Ouano was named in two cases but one of these was dismissed. Ouano died on Feb. 26, 2016.

All respondents in the lamppost cases were earlier found guilty of grave misconduct by the Ombudsman-Visayas and were ordered dismissed from public service. Ouano and Radaza, however, escaped the penalty because they were reelected. Under the Aguinaldo Doctrine, reelection condones administrative liability for misconduct done during a previous term. However, criminal liability cannot be erased.10 times

In March 2007, the Ombudsman investigated the acquisition of around 1,800 decorative lampposts installed along the streets of the cities of Cebu, Mandaue and Lapu-Lapu. The P365 million allotted for the purchase was reportedly taken from the Motor Vehicle Users Charge Fund.The mayors of the cities of Cebu, Mandaue and Lapu-Lapu were given a chance to choose the design of the lampposts to be installed in their respective areas.

The antigraft office said officials of Mandaue and Lapu-Lapu prepared the corresponding Programs of Work and Estimates (Powe) for the lampposts. For the lampposts installed in Cebu City, the Powe was prepared by DPWH-7 officials, excusing city officials from any liability.

The two contractors for the project were Fabmik Construction and Equipment Co. Inc., and Gampik Construction and Development Corp.

The Ombudsman-Visayas said a comparison of the costs of the lampposts as indicated in the Powe prepared by Mandaue City and reflected in the importation documents showed the item was overpriced by nearly 10 times its actual cost.

The public respondents, the investigators said, placed “such inflated estimates on the costs of the lamps.”

“The contracts, therefore, are manifestly and grossly disadvantageous to the government,” the Ombudsman-Visayas said.