Sandiganbayan convicts Mayor, other execs in questionable loan deal

DUMAGUETE CITY, Philippines—The Sandiganbayan has found the mayor, vice mayor and three other officials of Canlaon City guilty of graft and sentenced them to up to nine years in prison, but they are not about to give up their posts.

In a ruling issued on Nov. 29, the antigraft court’s Third Division said the officials were liable for a loan contract that is grossly disadvantageous to the city after they connived to borrow P60 million from the Development Bank of the Philippines in 2005 for lending to the Canlaon City Employees’ Multi-purpose Cooperative, a private entity.

The court found that the city government absorbed the interest payments for the loan to the detriment of the city coffers.

The officials were found guilty of violating the Anti-Graft and Corrupt Practices Act (Republic Act No. 3019) and were sentenced to up to nine years in jail and perpetually disqualified from holding public office.

The accused—Canlaon Mayor Jimmy Clerigo, Vice Mayor Jose Chubasco Cardenas, Councilors Diego Santiago and Mamerto Bernil Jr. and treasurer Ma. Luisa Luza, as well as six former officials—are appealing the ruling.

Samuel Eleccion, city secretary, said so far, none of the incumbent city officials had been replaced by the Department of Interior and Local Government.

Also covered by the Sandiganbayan ruling are former Councilors Wagner Bekim Cardenas, Aldin Avila, Roberto Bolo, Amado delos Reyes, Pedro Montero, Hernani Blanco, Edgar Estampador and Eric Suganob.

Former Mayor Judith Cardenas was found guilty of two counts of violation of RA No. 3019 and sentenced to 12 years’ imprisonment and perpetually disqualified from holding public office.

Blanco, Estampador and Suganob died during the trial of the case.

The Office of the Ombudsman filed the case against the city officials in 2009. It said the city government not only agreed to pay the full principal amount of the loan, but also absorb all interests and charges.

The Sandiganbayan found all officials guilty, noting that none of them offered a real defense except to claim they performed their official functions. It said they “offered virtually nothing” to refute evidence against them.