Ombudsman suspends Marikina City mayor, other city officials

MANILA, Philippines — The Office of the Ombudsman has ordered a six-month preventive suspension against Marikina City Mayor Marcelino Teodoro and other city officials over the alleged misallocation of P130 million Philippine Health Insurance Corporation (PhilHealth) funds.

In an order dated March 21 but only released to media on Tuesday, the Ombudsman likewise ordered the suspension of City Accountant Erlinda Gutierrez Gonzales, City Treasurer Nerissa Calvez San Miguel, and Assistant City Budget Officer Jason Rodriguez Nepomuceno, as well as Sangguniang Panlungsod Secretary Noralyn Tingcungco and the following Sangguniang Panlungsod members:

Vice Mayor Marion S. Andres

Angelito R. Nunez

Joseph B. Banzon 

Donn Carlo B. Favis

Loreto F. Tolentino, Jr.

Serafin Y. Bernardino

Carl Eli F. Africa 

Cloyd S. Casimiro 

Marife T. Dayao 

Levy D. De Guzman

Romina Kate N. De Guzman 

Samuel S. Ferriol 

Hilario A. Punzalan 

Manuel E. Sarmiento

Based on the document, the Ombudsman said it found “sufficient grounds” to issue a preventive suspension against Teodoro and others, “considering there is a strong evidence showing their guilt.” 

In August 2024, a copy of a complaint filed by Marikina resident Sofronio Dulay on May 15 of the same year, was released to the media. 

In the complaint, Dulay filed a criminal complaint for violation of Article 220 of the Revised Penal Code (RPC) and an administrative case for grave misconduct and conduct prejudicial to the best interest of the service against Teodoro, Gonzales, San Miguel, and Nepomuceno. 

The four were accused of misusing PhilHealth payments meant for health system improvements under the Universal Health Care Act.

Dulay’s complaint disclosed that Teodoro and the others passed City Ordinance No. 066, Series of 2023, and City Ordinance No. 002, Series of 2024, which allocates P130 million to various budgetary items in Marikina.

The complainant claimed that the four reportedly allocated the money (P130 million) on “IT equipment, repair and maintenance of infrastructure and/or donations,” amounting to P35,250,000, while the remaining P94,750,000 were used for “other supplies and materials expense.”

However, Dulay noted that the passage of the city ordinances mentioned above violated the provision of Republic Act 11223 or the Universal Health Care Act.

In defense, the four submitted a joint counter-affidavit in July 2024 wherein they “strongly deny all the allegations in the complaint as nothing but a mere product of misapprehension and misunderstanding of the facts” concerning the P130 million PhilHealth reimbursement received by Marikina City.

Teodoro and the others claimed that elements of technical malversation under Article 220 of the RPC are not present in the case.

In response, the Ombudsman disclosed that Commission on Audit (COA) issued the Marikina City Special Health Fund (SHF) Fraud Audit Report, which was only obtained by Dulay in February of this year. 

“The key findings of the SHF Fraud Audit include: (a) Confirmation of Diversion – substantial amounts from the SHF were expended on items outside the intended scope of health programs with itemization of transactions funded by the PhilHealth reimbursements and matching them to the enabling Ordinance Nos. 066-2023 and 002-2024; (b) Non-Compliance with Law – the expenditures lacked legal basis and flagging them as ‘irregular or unauthorized use of public funds;’ and (c) Evidence of Misconduct – clear audit trail linking the decisions and approvals made by respondents to the resulting improper disbursements,” the order reads. 

“Clearly, there is no legal justification for the diversion of the SHF. The diverted expenditures were not emergencies related to health, nor transfers to another health program. Said acts fall under the crime of Technical Malversation (Article 220, RPC),” it adds. 

Following the issuance of the preventive suspension against the mayor and others, Teodoro issued a statement, saying that he believes the order against him “is politically motivated and part of a broader effort to derail [his] candidacy in the May 12, 2025, midterm election.”