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The Office of the Ombudsman found probable cause to file an Information for violation of Section 3(h) of the Anti-Graft and Corrupt Practices Act (Republic Act No. 3019) against former Vice-Mayor Arleigh Eisma of Lamitan City in Basilan for the unlawful disbursement of funds covering gasoline payments paid to a gas station he owned.

In its Resolution, the Office of the Ombudsman found that from August to October 2012, Eisma facilitated and approved gasoline expenses for his private service vehicles amounting to P1,120,186.90.   Records show that all trip tickets, purchase requests, purchase orders, inspection and acceptance reports, checks and disbursement vouchers were approved by respondent alone.

In his counter-affidavit, Eisma does not dispute ownership of the gas station but claimed that there are only three gas stations in Lamitan, two of which are owned by a member of the Sangunian Panlalawigan. He asserts that “the city council would not have any fuel supply if relationship is made a prohibition.”

The Resolution explained that “the transactions were all undertaken with respondent fully knowing that they will be beneficial and favorable to him as owner of the gasoline station.”

According to the Ombudsman, “this is a clear transgression on the prohibition of a public official having pecuniary interest on a transaction which requires the intervention of his office.”  The Local Government Code prohibits a “local government official from engaging in any business transaction with the local government unit in which he is an official, or over which he has the power of supervision where money is to be paid out of the resources of the government to such person or firm.”

In this case, the receipts issued by the gas station clearly indicated Eisma’s name as registered proprietor of the business.

Under Section 3(h) of R.A. No. 3019,  public officials are prohibited from directly or indirectly having financing or pecuniary interest in any business, contract or transaction in connection with which he intervenes or takes part in his official capacity, or in which he is prohibited by the Constitution or by any law from having any interest.###