Ex-Quezon mayor indicted for graft over anomalous OTOP loan

A FORMER Quezon mayor faces graft indictment for the anomalous grant of a loan to two barangays for the “One Town One Product” (OTOP) program of former President Gloria Arroyo.

The OTOP is Arroyo’s priority program to promote small and medium enterprises in the country by allowing each municipality to focus on the manufacture of a specific product.

In its indictment, the Office of the Ombudsman said it found probable cause to charge former Catanauan mayor Sebastian Serrano for endorsing in 2003 a P1-million loan from the Office of the President to a spurious cooperative Catanauan Farmers Arrowroot Planters Multipurpose Cooperative.

The Ombudsman also indicted cooperative officers spouses Gerardo and Zenaida Mendenilla.

In its resolution, the Ombudsman said they conspired to ensure the cooperative will get the loan.

Serrano also failed to account for the funds despite repeated demand letters from President Arroyo’s office.

The Ombudsman’s investigation showed that the listed members did not even know such a cooperative existed. The members also said their signatures in the documents were falsified.

The members also said no board meeting happened, contrary to Serrano’s claim in the project proposal submitted to Arroyo’s office.

The Ombudsman said the spurious cooperative was not registered with the Cooperative Development Authority at the time it was endorsed under the OTOP program.

Serrano also endorsed the cooperative despite it not having a year of profitable experience in operation, good credit standing, and enough manpower and proper accounting and documentation system.

The Ombudsman said the respondents caused undue injury to government and thus are liable for violating Section 3(e) of the Anti-Graft and Corrupt Practices Act.

Meanwhile, the charges against Municipal Budget Officer Rebecca Florida and Municipal Treasurer Lourdes Vilma Averia were dismissed for insufficiency of evidence.