The Ombudsman has filed graft charges in the Sandiganbayan against Mayor Eulalio Maderazo and two other officials of Caibiran town, Biliran, over the alleged fraudulent purchase of P300,000 worth of medicines five years ago.
In a statement, the Office of the Ombudsman said Maderazo, municipal treasurer Loreto Sardeña Jr. and municipal accountant Rodolfo Baguna were indicted for violation of Section 3(e) of Republic Act No. 3019, or the Anti-Graft and Corrupt Practices Act, for authorizing the procurement of medicines for the town health center without a public bidding.
It said Maderazo conspired with his subordinates in providing unwarranted benefit, advantage and preference to private supplier Andrea Medi Center.
Ombudsman Conchita Carpio Morales said the erring public officials should be held accountable for “unlawfully resorting” to direct purchase despite the fact that the items bought cost more than the allowed limit of P50,000 for a fourth class municipality like Caibiran.
She said the supply contract was awarded to Andrea “without the benefit of a fair system in determining the best possible price for the government.”
“The supplier was able to profit from the transaction without showing proof that their prices were the most beneficial to the government,” Morales said in an 11-page resolution.
According to the Ombudsman, the municipal government bought assorted medicines in the amount of P283,335.15 for its rural health center in August 2010.
The antigraft body then received complaints regarding alleged overpricing and other irregularities in the purchase of the medicines prompting it to conduct an investigation.
“In the course of the investigation, it was found that the purchase did not pass through the bids and awards committee (BAC) and that payment was processed without supporting documents such as an abstract of bids and minutes of BAC meeting,” the Ombudsman said.
It said the Commission on Audit also reported that the procurement did not have the necessary documentation.