Former Bacolod congressman faces graft charges over use of pork barrel

Mayor Monico Puentevella Photo from www.congress.gov.ph

CEBU CITY – The mayor of Bacolod City faces graft charges in connection with the purchase of overpriced and non-functional computers for public elementary and high schools in the city with the use of money from his pork barrel allocation while he was still a member of the House of Representatives.

While the Office of the Ombudsman has found probable cause to indict Mayor Monico Puentevella and two others in the Sandiganbayn on charges of violating the Anti-Graft and Corrupt Pactices Act, a check by the Philppine Daily Inquirer with the local office of the Ombudsman showed that the charges have not yet been filed in court because of a pending motion for reconsideration from the respondents.

To be indicted along with with Puntevella were Victorino Tirol, then regional director of the Department of Education for Western Visayas, and Jessie Garcia, president and chairman of Merryland Publishing Corp.

They were linked to the purchase of overpriced information technology kits for public elementary and secondary schools in Bacolod in 2002, 2004 and 2005, using Puentevella’s share of the congressional Priority Development Assistance Fund or PDAF.

The IT packages for public elementary schools, each priced at P400,000, consisted of one computer, 50 compact dics, instructional materials and one-day seminar workshop. The package for public secondary schools, each one also costing P400,000, consisted of two computers, 80 CDs, instructional materials and one-day seminar.

The resolution to indict Puentevella, which was approved by Ombudsman Conchita Carpio Morales on October 13, cited a Commission on Audit report that at least P26 million was spent for the IT packages from 2002, 2004, 2005 and 2006 for 54 public elementary schools and 29 public secondary schools.

But the Ombudsman and COA reports did not indicate by how much the IT packages were overpriced.

Puentevella allocated the funds from his pork barrel to buy the IT packages, which were procured by the Western Visayas office of DepEd Western Visayas  from Merryland without public bidding because it was an exclusive distributor of educational software developed by iT21 PTE Ltd of Singapore.

The complaint was filed by the  Bacolod City Legal Office after its investigation showed that the IT packages were “overpriced, defective and non-functional.”

It also alleged that some schools never received any of the IT kits.

In his reply to the complaint, Puentevella said the Bacolod Legal Office was biased against him and that he was denied of due process.

The resolution, however, said Puentevella admitted that the project was undertaken by his office, which was “principally responsible for the sourcing of funds and identification of beneficiaries of the IT packages.”

Puentevella pointed out that the true value of the IT kits should include Merryland’s intellectual property rights and programs, it said.

Garcia denied that some schools had not received the computer kits, which he claimed were among “the cheapest in the market.”

Tirol denied that the kits were overpriced, saying COA did not issue any Notice of Disallowance or suspension after the disbursements were examined.

But the Ombudsman said the respondents did not dispute the absence of public bidding in the procurement of the IT kits, which violated Executive Order No. 40 and Republic Act 9184 mandating that all government procurement be done through public bidding.

Single source procurement is allowed only when the items to be purchased are sold by an exclusive dealer.

While Merryland was an exclusive distributor of educational software from iT21 PTE Ltd of Singapore, it was not the exclusive distributor of the computers, which COA said should have been purchased locally through bidding.

The Ombudsman said Merryland enjoyed “unwarranted” benefits and advantage when it was awarded more than P25 million worth of contracts without bidding.

It cited the March 11, 2002 letter to Tirol in which Puentevella’s office authorized Garcia “to transact with (DepEd Western Visayas) for the delivery, release and payment of Information Technology packages.”

It said the letter even sought speedy processing of the transaction.

“On the same date, Tirol appproved a Purchase Order for IT packages in the total amount of P2,400,000 in favor of Merryland Publishing. In succeeding years until 2007, DepEd Region VI procured IT Packages from Merryland Publishing without the benefit of public bidding,” the resolution said.

“Puentevella’s endorsement of Merryland Publishing to Tirol and the latter’s expeditious award to Merryland Publishing of contracts show a concurrence of motive among all respondents, indicative of conspiracy, to evade the public bidding requirements of law and esnure that the contracts be granted to Merryland,” said the Ombudsman resolution.

The Ombudsman said the COA twice wrote Tirol, calling his attention to the “exorbitant” purchase. The first time was in 2002 and the other in 2006.

In 2005, the COA’s Management Letter on the audit of DepEd Western Visayas office for 2005 showed that the purchase of IT equipment through direct contracting was contrary to RA 9184.

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