Ombudsman Conchita Carpio Morales has found probable cause to indict Negros Oriental governor Roel Degamo for 11 counts of Malversation through Falsification and one count of violation of Section 3(e) of Republic Act No. 3019 (Anti-Graft and Corrupt Practices Act) for proceeding to award 11 infrastructure projects amounting to P143.2M despite lack of funds. Also charged are provincial treasurer Danilo Mendez and provincial accountant Teodorico Reyes.
The charges stemmed from the illegal use of the calamity fund intended for the repair, rehabilitation and construction of structures damaged by Typhoon Sendong in 2011 and the 6.9 magnitude earthquake in 2012.
Upon the request of Degamo, the Department of Budget and Management (DBM) issued a Special Allotment and Release Order (SARO) in the amount of P961.5M, out of which P480.7M was immediately released to the provincial government. However, a few days later, the DBM informed Degamo that the SARO was being withdrawn due to the failure of the province to comply with existing guidelines for infrastructure projects. Despite the notice, Degamo, et. al. proceeded to award the infrastructure contracts amounting to P143.2M, representing the 15% advance payment to contractors. Upon audit, the Commission on Audit issued 11 Notices of Disallowance, observing that funds were certified available despite the withdrawal of the SARO.
In finding probable cause, Ombudsman Morales reiterated that “their unilateral act of ignoring DBM’s authority is indicative of bad faith, manifest partiality and/or gross inexcusable negligence which caused undue injury to the government.”
Under Section 3(e) of R.A. No. 3019, public officials are prohibited from causing any undue injury to any party, or giving any private party any unwarranted benefits, advantage or preference in the discharge of his official administrative or judicial functions through manifest partiality, evident bad faith or gross inexcusable negligence. Malversation, on the other hand, is committed by any public officer who, by reason of the duties of his office, is accountable for public funds or property, shall appropriate the same, or shall take or misappropriate or shall consent, or through abandonment or negligence, shall permit any other person to take such public funds or property, wholly or partially.###