CEDRIC LEE. INQUIRER FILE PHOTO
THE former Mariveles, Bataan mayor and co-accused of businessman Cedric Lee pleaded not guilty to malversation and graft over a failed public market project during his arraignment at the Sandiganbayan Third Division on Thursday.
Meanwhile, Lee’s arraignment was canceled and rescheduled for October 20 because of his pending motion to quash information.
Asked by Presiding Justice Amparo Cabotaje-Tang why his lawyer was not present, Lee said his counsel had to rush to hospital to accompany his wife.
Lee and former Mariveles mayor Angel Peliglorio refused to talk with reporters after the arraignment.
In an interview, Peliglorio’s lawyer Jose Michael Operario said his client had no hand in the alleged malversation of funds.
Operario said at the time the supposed public market project was to be implemented, a new administration had taken over and decided to discontinue it.
He said Peliglorio had thought that the P23.47 million bank loan for the project was not released, only to find out after the complaint was filed that the funds were supposedly released and allegedly malversed.
Lee and Peliglorio were charged with malversation and graft for allegedly conniving with each other for the release of P23.47 million bank loan proceeds to Lee’s company Izumo Contractors Corp. on March 27, 2005 even without procedural safeguards, guarantee of performance, and in violation of audit rules.
The Ombudsman said Mayor Peliglorio authorized the release of the bank loans to Lee for the construction of a public market that did not commence.
This as Lee faces tax evasion raps for the alleged failure of Izumo Contractors to pay P194.47 million in taxes from 2006 to 2009.
Operario said the new administration secured a compromise agreement with the bank to actually increase the loan.
“That’s for this administration to account. They are not accused. Probably in the future, if mahahalungkat ang loan na yan and they might be able to answer that,” Operario said.
Lee, along with model Deniece Cornejo, is out on bail over the illegal detention and grave coercion cases filed at the Taguig Regional Trial Court for their alleged role in beating up and extorting money from television host and actor Vhong Navarro.
Lee has claimed he was a victim of a political catfight because incumbent Mayor Jesse Concepcion refused to implement his political rival Peliglorio’s project.
Lee has also accused Malacañang of having a hand in the charges as he faces a tax evasion case before the Department of Justice.