Ex-MWSS execs face raps over consultants

Ombudsman Conchita Carpio Morales has ordered the filing of graft charges against former top officials of the Metropolitan Waterworks and Sewerage System (MWSS) over the prohibited hiring of consultants from 2010 to 2012.

Respondents who face possible graft charges include former MWSS administrators Gerardo Esquivel and Diosdado Jose Allado, as well as board member Emmanuel Caparas, who would later become acting justice secretary at the tail-end of the Aquino administration.

Probable cause

In a 27-page resolution, the Ombudsman found probable cause to pursue the graft charges for spending P8.39 million for the services of 37 consultants despite the absence of an approved rationalization plan.

Among those hired were Caparas and current Supreme Court Justice Alfredo Benjamin Caguioa, who were paid P198,000 and P180,000, respectively, as legal consultants in 2011. Former Philippine National Police Academy director Dionisio Coloma Jr. was paid P127,990.36 as security consultant from 2010 to 2011.

The officials allegedly violated Section 7 of Executive Order (EO) No. 366, series of 2004, which prohibited the hiring of additional personnel during the preparation of the agency’s rationalization plan.

Lack of public bidding

The resolution also cited the supposedly unjustified lack of public bidding as required under Section 10 of the Government Procurement Reform Act.

The Ombudsman rejected the claim that the hiring was necessary and inevitable, saying it “cannot prevail over the explicit proscription of the law.”

Although the MWSS sought authority from the Government Corporate Counsel (GCC), the requests were only made on Oct. 1 and Nov.  26, 2012, even as the hiring began in 2010.  The GCC would later approve the prospective hiring of only 13 employees, the resolution noted.

Unwarranted benefits

“Bad faith and intent to violate the law, particularly EO 366, are thus evident,” said the Ombudsman, adding that the hired employees were effectively given unwarranted benefits.

The Ombudsman said that despite the irregularity and illegality of the consultancy contractors, the MWSS officials signed the board resolutions, certified the payments to be necessary and lawful, and signed the corresponding checks.

“All of their actions, when taken as a whole, contributed to the concerted scheme of giving unwarranted benefits, advantage and preference to consultants who should not have been engaged in the first place,” the resolution stated.

Esquivel, Allado, and Caparas each face one count of violation of Section 3(e) of the Anti-Graft and Corrupt Practices Act.

Also to be charged with two counts for violating the same provision were deputy administrator Leonor Cleofas, department managers Estrellito Polloso and Darlina Uy, and board members Oscar Garcia, Ferdinand Mahusay, Aurora Arnaez, Albert Balingit, Virgilio Angelo and  Santiago Gabionza Jr.

The following, meanwhile, may be charged for one count of graft: senior deputy administrator Macra Cruz, deputy administrator Zoilo Andin Jr., corporate finance services chiefs Virgilio Matel and Jocelyn Toledo, and board members Ramon Alikpala, Benjamin Yambao, Ma. Cecilia Soriano, Jose Ramon Villarin and Hermogenes Fernando.